An economic system is a specially ordered system of communication between producers and consumers of material and intangible goods.

• 1. Traditional - relationships are built on the basis of centuries-old and ingrained traditions and customs, typical for tribal communities and economically backward countries.
• 2. Centralized - the state dominates the economy and other spheres of society, commands all economic resources and solely decides what, how and for whom to produce (command economy).
• 3. Market - a system based on direct connections between producers (sellers) and consumers (buyers) through the free purchase and sale of goods.
• 4. Mixed - an organic combination of market efficiency and government regulation, combining the positive features of market and centralized systems.

Criteria:

• - method of obtaining information (spontaneous order or hierarchy);
• - the nature of property relations (state, private);
• - methods of regulation (administrative, self-regulation).

• 1. Anglo-Saxon (USA, Canada, UK): governmental support private business, high share of the private sector, greater freedom of enterprise, low level of funding for social programs.
• 2. Western European (France, Italy, Spain): active government regulation through indicative planning, a significant share of the public sector (up to 40-50%), developed municipal sector, extensive government funding of social programs, large role of trade unions.
• 3. Socially oriented (Germany, Austria, the Netherlands): solving primarily social problems.
• 4. Scandinavian (Sweden, Norway, Denmark): more than 50% - share of state and municipal sector, parity of public private capital, a pronounced social orientation, broad powers of local self-government bodies.
• 5. Southeast (Japan, South Korea): the use of traditional economic structures, enhanced government regulation, strict subordination in decision making, patronage of government bodies in relation to national business structures.

Features of the Russian model market economy: predominance of extractive industries, uncompetitiveness of most manufacturing industries, inefficiency Agriculture, weakness of personal initiative, social dependency; the huge role of the state as a regulator of the economy and the largest owner; underdevelopment private property, first of all to the ground; lack of civil society, high degree of monopolization, criminalization of competition, corruption, uneven transition to a market economy in industries and regions.

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Theory of economic systems and their models

Types of economic systems: traditional economy and market economy - characteristics, advantages and disadvantages

In the last 150-200 years, different types of economic systems have operated in the world: two market ones - the market economy of free competition (pure capitalism) and the modern market economy (modern capitalism) and two non-market systems - traditional and administrative-command.

Traditional economics- this is a type of economic system in which scientific and technological progress penetrates with great difficulty, because he comes into conflict with traditions. It is based on backward technology, widespread manual labor, and a multi-structure economy. All economic problems are solved in accordance with customs and traditions.

The main features of traditional economics are:

• 1. The basis of the economy is private ownership of the means of production and the personal labor of their owners.
• 2. Extremely primitive technology associated with primary processing natural resources.
• 3. Community farming.
• 4. In-kind exchange of goods.
• 5. Predominance of manual labor.
• 6. Underdevelopment of monetary relations.

Market economy- this is a type of economic system that is based on the principles of free enterprise, diversity of forms of ownership of the means of production, market pricing, contractual relations between economic entities, and limited government intervention in economic activity. It is inherent in those socio-economic systems where there are commodity-money relations.

Having emerged many centuries ago, the market economy reached high level development, became civilized and socially limited. Main characteristics of a market economy:

• 1) the basis of the economy is private ownership of the means of production;
• 3) the presence of a mechanism of free competition;
• 4) market pricing mechanism;
• 5) self-regulation of a market economy;
• 6) contractual relations between business entities;
• 7) minimum government intervention in the economy.

The market economy of free competition developed in the 18th century, but a significant part of its elements have entered the modern market economy. The main features of a free competitive market economy are the following:

• - private ownership of economic resources;
• - market mechanism for regulating the economy based on free competition;
• - a large number of independently operating sellers and buyers of each product.

The modern market economy (modern capitalism) has proven to be the most flexible; it is capable of restructuring and adapting to changing internal and external conditions. Its main features are:

• - variety of forms of ownership;
• - development of scientific and technological progress;
• - active influence of the state on development national economy.

Types of economic systems: administrative-command economy and mixed economy - characteristics, advantages and disadvantages

Administrative command economy (centrally planned economy) is a type of economic system in which the main economic decisions are accepted by the state, which “takes on” the functions of the organizer of the economic activities of the company. All economic and Natural resources are owned by the state.

An administrative-command economy is characterized by centralized directive planning; enterprises act in accordance with the planned targets communicated to them from the “center” of management.

The main features of an administrative-command economy are:

• 1) O the new economy is state property;
• 2) absoluteization of state ownership of economic and natural resources;
• 3) strict centralization in distribution economic resources and results of economic activities;
• 4) significant restrictions or prohibitions on private entrepreneurship;
• 5) the concentration of production is actively used to achieve strategic goals and other advanced positions;
• 6) social stability and justice;
• 7) sustainable during critical periods of social development (war, natural or man-made disaster, etc.).

A mixed economy organically combines the advantages of a market, administrative-command and even traditional economy and thereby, to a certain extent, eliminates the disadvantages of each of them or mitigates their negative consequences.

Mixed economy- a type of modern socio-economic system emerging in developed Western countries and some developing countries at the stage of transition to post-industrial society. A mixed economy is multi-structured in nature; it is based on private property, which interacts with state property (20 - 25%).

The main features of a mixed economy are:

• 1) the basis of the economic system is the interaction of private and public forms of ownership;
• 2) variety of forms of management;
• 3) the production function is “entrusted” to private business, and the implementation process is assigned to both state (municipal) and private enterprises;
• 4) high level of tax rates;
• 5) a high level of benefits to citizens and subsidies and subsidies to enterprises;
• 6) fairly high development of social enterprises.

On the basis of various forms of ownership, various types of economy and entrepreneurship operate (large, medium, small and individual entrepreneurship; state and municipal enterprises (organizations, institutions).

A mixed economy is a market system with its inherent social orientation of the economy and society as a whole. The interests of the individual with his multilateral needs are brought to the center of the social economic development countries.

The mixed economy has its own characteristics in different countries and at various stages of development. For example, the mixed economy in the United States is characterized by the fact that government regulation here is much less than in other countries, and the amount of state ownership is small. The main position in the US economy is occupied by private capital, the development of which is stimulated and regulated government agencies, legal norms, tax system. Therefore, mixed enterprises are much less common here than in Europe. However, a certain form of public-private entrepreneurship has developed in the United States through a system of government laws.

Russia was practically the first in the world to apply the experience of an administrative-command economy in the form of state socialism. On modern stage Russia is beginning to use the basic elements of a mixed economy.

Models of economic systems: American, Swedish, Japanese - characteristics, advantages and disadvantages

traditional economics market command

Each economic system is characterized by its own national models of economic organization. Let's consider some of the most famous national models of economic systems.

American model built on a system for encouraging entrepreneurial activity, developing education and culture, and enriching the most active part of the population. Low-income segments of the population are provided with various benefits and allowances to maintain a minimum standard of living. This model is based on a high level of labor productivity and mass orientation towards achieving personal success. The problem of social equality does not arise here at all.

Swedish model It is distinguished by a strong social orientation, aimed at reducing wealth inequality through the redistribution of national income in favor of the least affluent segments of the population. This model means that the production function falls on private enterprises operating in a competitive market basis, and the function of ensuring a high standard of living (including employment, education, social insurance) and many elements of infrastructure (transport, R&D) - to the state. The “core” of the Swedish model is a social orientation, due to high taxation (more than 50% of GNP). The main advantage of the Swedish model is that it combines relatively high rates economic growth with a high level of full employment, ensuring the well-being of the population. In the country, unemployment has been reduced to a minimum, differences in incomes of the population are small, and the level of social security for citizens is high.

Japanese model characterized by a certain lag in the standard of living of the population (including the level wages) from the growth of labor productivity. Due to this, a reduction in production costs and a sharp increase in its competitiveness in the world market are achieved. Such a model is possible only with an exceptionally high development of national self-awareness, the priority of the interests of society over the interests of a particular person, and the willingness of the population to make certain sacrifices for the sake of the country’s prosperity. Another feature of the Japanese development model is associated with the active role of the state in modernizing the economy. The Japanese economic model is characterized by advanced planning and coordination between the government and the private sector. Economic planning of the state is advisory in nature. Plans are government programs that orient and mobilize individual parts of the economy to accomplish national goals. It is typical for the Japanese model to preserve its traditions while actively borrowing from other countries everything that is needed for the development of the country.

Models of economic systems: Chinese, Russian model transition period (90s of the twentieth century), Russian model of a period of relative stabilization (2000s) - characteristics, advantages and disadvantages

Chinese economic model. After the introduction in the USSR as part of “perestroika” (late 1980s) of permission to conduct business activities in the form of cooperatives, in the People's Republic of China in the early 1990s. Similar processes and phenomena began to take shape. Currently, China's economy is based on the characteristics of a command economy with elements of a market economy. Also, within the framework of this national model, the traditions of society, as well as political processes within the country, have a significant influence.

Russian model of transition economy. After the long dominance of the administrative-command system in the Russian economy in the late 80s - early 90s of the twentieth century. the transition to market relations began. The main task of the Russian model of transition economy is the formation of an effective market economy with a social orientation.

The conditions for the transition to a market economy were unfavorable for Russia:

extremely high degree of nationalization of the economy;

the almost complete absence of a legal private sector with an increase in the “shadow economy”;

the long existence of a non-market economy, which weakened the economic initiative of the majority of the population;

an extremely distorted structure of the national economy, where the military-industrial complex played the leading role, and the role of other sectors of the national economy was downplayed;

uncompetitiveness of industrial and agricultural sectors.

The main characteristics of the transition economy model in Russia are:

a combination of public and private property;

formation and establishment of private entrepreneurship on the basis of private property;

creating a competitive environment for all business entities;

formation legal environment in society;

inefficient system social protection population;

economy uncompetitive in the world market.

Russian economic model of relative stabilization began to take shape after the 90s. In the 20th century, the main market institutions were formed, privatization processes took place, a legal and political environment was formed, etc. This period is characterized by relative stability, even “against the backdrop” of the 2008 crisis, which did not have such a destructive impact as the 1998 default. Also during this period there was an increase in the main macroeconomic indicators, a decrease in inflation and unemployment, various social programs and projects began to be formed and implemented.

The main economic problems of society: What to produce? How to produce? For whom to produce? - the essence and methods of their solution within each economic system - traditional, market, administrative-command and mixed

Any society, no matter how rich or poor it is, grapples with three fundamental questions of economics: what goods and services need to be produced, how and for whom. These three fundamental questions of economics are decisive (Fig. 2.1.).

Figure 2.1 - Main economic problems of society

What goods and services must be produced and in what quantity? An individual can provide himself with the necessary goods and services in various ways: produce them himself, exchange them for other goods, or receive them as a gift. Society as a whole cannot have everything immediately. Because of this, it must decide what it would like to have immediately, what it could wait to get, and what it could refuse altogether. What needs to be produced at the moment - ice cream or shirts? A small number of expensive quality shirts or a lot of cheap ones? Is it necessary to produce fewer consumer goods or is it necessary to produce more industrial goods (machines, machines, equipment, etc.), which will increase production and consumption in the future.

Sometimes the choice can be quite difficult. There are so-called underdeveloped countries that are so poor that the efforts of most of the workforce are spent just feeding and clothing the population. In such countries, in order to raise the living standards of the population, it is necessary to increase production volumes, but this requires a restructuring of the national economy and, above all, the modernization of production.

How should goods and services be produced? There are different options for the production of the entire set of goods, as well as each economic good separately. By whom, from what resources, using what technology should they be produced? Through what organization of production? There is far more than one option for building a specific house, school, college, or car. The building can be multi-story or one-story; the car can be assembled on a conveyor belt or manually. Some buildings are built by private individuals, others by the state. The decision to produce cars in one country is made by a government agency, in another - by private firms.

Who is the product made for? Who will be able to benefit from goods and services produced in the country? Since the quantity of goods and services produced is limited, the problem of their distribution arises; in order to satisfy all needs, it is necessary to understand the mechanism of distribution of the product. Who should use these products and services and derive value? Should all members of society receive the same share or not? What should be given priority - intelligence or physical strength? Will the sick and old people have enough to eat or will they be abandoned to their fate? The solution to this problem determines the goals of society and the incentives for its development.

Basic economic problems are solved differently in different socio-economic systems. For example, in a market economy all the answers to the basic economic questions: What? How? For whom? - determines the market: demand, supply, price, profit, competition.

“What” is decided by effective demand, the vote of money. The consumer decides for himself what he is willing to pay money for. The manufacturer himself will strive to satisfy the desires of the consumer.

The “how” is decided by the manufacturer, who seeks to make more profit. Since setting prices does not depend solely on him, to achieve his goal in a competitive environment, the manufacturer must produce and sell as many goods as possible and at a lower price than his competitors.

“For whom” is decided in favor various groups consumers based on their income.

The main economic contradiction: unlimited needs satisfied with limited resources.

Russian model of transition economy

Each economic system is characterized by its own national models of economic organization. Let's consider some of the most famous national models of economic systems.

American model built on a system of encouraging entrepreneurial activity, developing education and culture, and enriching the most active part of the population. Low-income segments of the population are provided with various benefits and allowances to maintain a minimum standard of living. This model is based on a high level of labor productivity and mass orientation towards achieving personal success. The problem of social equality does not arise here at all.

Swedish model It is distinguished by a strong social orientation, aimed at reducing wealth inequality through the redistribution of national income in favor of the least affluent segments of the population. This model means that the production function falls on private enterprises operating on a competitive market basis, and the function of ensuring a high standard of living (including employment, education, social insurance) and many elements of infrastructure (transport, R&D) falls on the state.

The main thing for the Swedish model is a social orientation due to high taxation (more than 50% of GNP).

The advantage of the Swedish model is the combination of relatively high rates of economic growth with a high level of full employment and ensuring the well-being of the population. The country has kept unemployment to a minimum, differences in incomes of the population are small, and the level of social security for citizens is high.

Japanese model characterized by some lag in the standard of living of the population (including the level of wages) from the growth of labor productivity. Due to this, they achieve a reduction in production costs and a sharp increase in their competitiveness in the world market. Such a model is possible only with exceptionally high development of national

self-awareness, the priority of the interests of society to the detriment of the interests of a particular person, the willingness of the population to make certain sacrifices for the prosperity of the country. Another feature of the Japanese development model is associated with the active role of the state in modernizing the economy.

The Japanese economic model is characterized by advanced planning and coordination between the government and the private sector. Economic planning of the state is advisory in nature. Plans are government programs that orient and mobilize individual parts of the economy to accomplish national goals.

The Japanese model is characterized by preserving its traditions and at the same time actively borrowing from other countries everything that is needed for the development of the country.

Russian model of transition economy. After the long-term dominance of the administrative-command system in the Russian economy in the late 1980s and early 1990s. the transition to market relations began. The main task of the Russian model of a transition economy is the formation of an effective market economy with a social orientation.

The conditions for the transition to a market economy were unfavorable for Russia. Among them:

1) high degree of nationalization of the economy;

2) the almost complete absence of a legal private sector with an increase in the shadow economy;

3) the long existence of a non-market economy, which weakened the economic initiative of the majority of the population;

4) the distorted structure of the national economy, where the military-industrial complex played the leading role, and the role of other sectors of the national economy was reduced;

5) uncompetitiveness of industrial and agricultural sectors.

Basic conditions for the formation of a market economy in Russia:

1) development of private entrepreneurship on the basis of private property;

2) creation of a competitive environment for all business entities;

3) an effective state that provides reliable protection of property rights and creates conditions for effective growth;

4) an effective system of social protection of the population;

5) an open, world-competitive economy.

Each economic system is characterized by its own national models of economic organization, since countries differ in their unique history, level of economic development, social and national conditions. Thus, the administrative-command economic system was characterized by Soviet, Chinese, Yugoslav and other models. Modern capitalist system There are also different models.

The study of these models is of practical importance for developing a development model for Russia. At the same time, we are not talking about copying someone else’s experience, but about using it creatively, taking into account the specific conditions that have developed in our country.

Let's consider the most famous national models of economic systems. Of these, the most pronounced DII Value of the command-and-control system is the Chinese model.

Chinese model associated with the reform of agriculture - the transition from “people's communes” to a system of family contracting. This process was completed by the end of 1984. Family peasant farms were formed on land transferred to them for use for 15-20 years, and in some places up to 30 years. Of the products produced, part is handed over to the state under contracts, part - for taxes, part - to funds local authorities authorities, and use the remaining products at their own discretion.

IN modern conditions small family peasant farms are being united into larger ones. This is dictated by competition. arise various shapes cooperation in the sphere of circulation and production, land is concentrated in the hands of strong peasant farms with the hiring of labor.

After the agrarian reform, urban reform began in 1984. A “mixed model” is being introduced. Along with government regulation, there is a market mechanism for regulating the economy. At the same time, the main form of ownership is public for the most important means of production and centralized planning is carried out at the macro level. Market regulation is mainly used at the micro level. Particular attention is paid to the combination of interests of the state, enterprise and individual employee. The practice of contracting out enterprises to teams and individuals, as well as the free sale of enterprise shares. Today the public sector accounts for 56, collective enterprises - 36 and private enterprises - 5% of output industrial products. Recently, China, as noted by oriental scientists, has seen the world's highest increase in industrial production.

American model built on a system of comprehensive encouragement of entrepreneurial activity, enrichment of the most active part of the population, creation of an acceptable standard of living for low-income groups through partial benefits and allowances. There is a large difference in the level of wages among categories of workers. The goal of social equality among the population is not set. Relatively small specific gravity state property. Thus, today the share of state ownership in share capital in the USA is 10, in Germany - 18, in England - 24, in France - 34, in Italy - 38%.

This model is based on a high level of labor productivity and mass orientation towards achieving personal success. The role of the state in the economy is minimal, but its influence is aimed at maintaining a stable environment and economic balance. The state determines the strategy for the development of education, social security for the poor and unemployed, and regulates business. Of course, a big role in the decision economic problems the market plays.

Japanese model assumes high degree state regulation of the economy and active development of the private sector, a small volume of state entrepreneurship. The state stimulates the development of medium and small businesses, which account for 80.6% of all employees in the economy. A strict antimonopoly policy is being pursued. The state intervenes heavily in the economy. Long- and medium-term plans are being developed. Moreover, the plans are not of a directive nature, but are government programs of an advisory nature. The state is fighting against social inequality, although there are no obstacles to wealth stratification. The main criterion of the Japanese model is high rates of economic growth. At the same time, the standard of living of the population is relatively high. Thus, life expectancy for men is 75.5 years, and for women - 81.8. The level of wages lags behind the growth of labor productivity. Due to this difference, a reduction in production costs and a sharp increase in its competitiveness in the world market are achieved. Such a model is possible only with a high level of development of national self-awareness, the priority of the interests of the nation over the interests of a particular person, and the willingness of the population to make certain material sacrifices for the sake of the country’s prosperity.

Japan does not have its own raw materials and energy resources, but in a short period of time it has transformed from a federal country into a powerful industrial power. The so-called “Japanese miracle” occurred, which consisted in the fact that Japan, immediately after the 1947 war, carried out (land reform. The largest monopolies were eliminated. The land passed to small farmers, the efficiency of agricultural production increased, food prices decreased, competition appeared, and return from foreign resources. The main choice was made - to develop scientific and technical potential and knowledge-intensive industries, produce high technology and export products. All this in the absence of our own resources.

The production management system in Japan is based on three postulates:

1) lifetime employment of workers;

2) establishing wages and careers depending on the length of work at the enterprise and age;

3) the creation of trade unions not on an industry basis, but directly in companies.

This model immediately yielded positive results: Japan now produces 14% of the world's GNP and 12% of industrial output. The country does not have external debts, inflation and unemployment rates are the lowest of any country in the world.

Swedish model It is distinguished by a strong social policy and active participation of the state in ensuring economic stability in society. Only 4% of fixed assets are in the hands of the state, but the share of government spending in the 90s. amounted to 70% of GDP, half of which was allocated to social needs. At the same time, social justice, collectivism are ensured, there is almost no unemployment, there is no difference in the income of the population, and a high standard of living of the population. Up to 90% of production operates in private firms. However, the state intervenes in the economy to ensure a high standard of living for the population (including employment, education, healthcare, transport, etc.). Naturally, all this is achieved high rate taxation, but at the same time the rights of commodity producers are not infringed. The increase in tax rates is associated with the efficiency of specific production.

German model is close in its socio-economic content to the Japanese model. The main ideologist of the social market economy is Ludwig Erhard. Distinctive features of the German model are: strong government influence on the economy; free medicine and education; planning (targeting since the 70s) of main macroeconomic indicators; complete autonomy Central Bank, as in Japan; the difference in wages, as in the Japanese model, is insignificant.

French model has no striking features. It occupies a middle position between the American and German models. Indicative planning and public entrepreneurship play a leading role in the economy.

Each system is characterized by its own national models of economic organization, since countries differ in the uniqueness of their history, level of economic development, social and national conditions. Thus, the administrative-command system is characterized by the Soviet model, the Chinese model, etc. Modern market system There are also different models. Let's consider the most famous national models.

The American model is built on a system of comprehensive encouragement of entrepreneurial activity and enrichment of the most active part of the population. Low-income groups are provided with an acceptable standard of living through various benefits and allowances. The objectives of social equality are not posed here at all. This model is based on a high level of labor productivity and mass orientation towards achieving personal success. In general, the American model is characterized by government influence aimed at maintaining a stable environment and economic balance.

The Swedish model is distinguished by strong social policies aimed at reducing wealth inequality by redistributing national income in favor of the least affluent segments of the population. Here, only 4% of fixed assets are in the hands of the state, but the share of government spending in the 90s. amounted to over 50% of GDP, with more than half of these expenditures going to social needs. Naturally, this is only possible in conditions of high taxation, especially individuals. This model is called “functional socialization,” meaning that the production function falls on private enterprises operating on a competitive market basis, and the function of ensuring a high standard of living (including employment, education, social insurance) and many elements of infrastructure (transport, R&D) - - to the state.

Social market economy of Germany. This model was formed on the basis of the liquidation of concerns from Hitler’s times and the provision of opportunities to all forms of economy (large, medium, small) sustainable development. At the same time, the so-called mittelstands enjoy special patronage, i.e. small and medium enterprises, farms. The state actively influences prices, duties, and technical standards. The market underlying this system has discovered its advantage in the use of incentives for highly efficient economic activity.

The Japanese model is characterized by a certain lag in the standard of living of the population (including the level of wages) from the growth of labor productivity. Due to this, a reduction in production costs and a sharp increase in its competitiveness in the world market are achieved. Such a model is possible only with an exceptionally high development of national self-awareness, the priority of the interests of the nation over the interests of a particular person, and the willingness of the population to make certain sacrifices for the sake of the country’s prosperity. Another feature of the Japanese development model is associated with the active role of the state in modernizing the economy, especially at its initial stage.

The South Korean model has much in common with the Japanese one. This, in particular, refers to the peculiarities of the psychological make-up of the country's population, its high level of hard work and responsible attitude to its duties, based on the moral norms of Confucianism. What both models have in common is the active participation of government agencies in economic restructuring. In order to accelerate its modernization, tax, tariff and monetary policy. For a long time, there was control over the prices of resources and a wide range of industrial and consumer goods. established in South Korea system government regulation economy helps to increase the competitiveness of South Korean goods on the world market.

Due to the relatively less development of market relations than in Japan, the South Korean state purposefully contributed to the creation of powerful springboards of a market economy in the form of large corporations, the so-called chaebol, which then grew into financial and industrial groups.

And finally, another element of the South Korean model, which is of undoubted interest for Russia, is the provision of comprehensive support by government agencies to small and medium-sized businesses, which contributed to the creation of a middle class in a short time. At the same time, as the end of the 90s showed, the South Korean and Japanese models, with their particularly strong government interventions in the market mechanism, have a reduced adaptability of the latter to global financial crises.

Russian model. When characterizing the emerging market economy model in Russia, one should take into account the special geopolitical role of the country. In sociocultural terms, Russia acts as a connecting link between Western and Eastern civilizations. IN economically Russian society has historically been formed as an eastern one and, despite the change of political regimes, has retained the following features:

• - the huge role of the state as a regulator of the economy and the largest owner;
• - underdevelopment of private property, primarily land;
• - lack of a civil society autonomous from the state;
• - inextricable connection between power and property;
• - weakness of personal initiative with fairly strong collectivist tendencies.

Formed in the first half of the 90s. The Russian economic model includes a number of features inherited from the historical past. The state, even after the privatization of a considerable part of the property, still has a powerful public sector in the most important sectors of the economy. The close connection between political power and property remains.

The German model is a model of a social market economy, which links the expansion of competitive principles with the creation of a special social infrastructure that mitigates the shortcomings of the market and capital, with the formation of a multi-layered institutional structure of subjects of social policy.

In the German economic model, the state does not establish economic goals- this lies in the plane of individual market decisions, - but creates reliable legal and social framework conditions for the implementation of economic initiatives. At the same time, the state, having lost a considerable part of its previous sources of income during privatization, retained an unaffordable amount of financial obligations, which is causing a protracted state budget crisis.

The German model is characterized by the following features:

individual freedom as a condition for the functioning of market mechanisms and decentralized decision-making. In turn, this condition is ensured by active government policy maintaining competition;

social equality - market distribution of income is determined by the amount of capital invested or the amount of individual effort, while achieving relative equality requires vigorous social policy. Social politics relies on the search for compromises between groups with opposing interests, as well as on the direct participation of the state in the provision of social benefits, for example, in housing construction;

countercyclical regulation;

stimulating technological and organizational innovation;

implementation of structural policy;

protection and promotion of competition. The listed features of the German model are derived from the fundamental principles of a social market economy, the first of which is the organic unity of the market and the state.