Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
344082
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

From "Failures of the Market" to "Failures of the State": Once Again to the Question of Social Justice in Economy

From "Failures of the Market" to "Failures of the State": Once Again to the Question of Social Justice in Economy

Journal of Economic Regulation, , Vol. 7 (no. 2),

Principles of social justice don't belong only to area of morals, their practical embodiment in economy and the social sphere determines the content and a configuration of institutional system. Ensuring equal opportunities, investment into the human capital, elimination of disproportions in distribution in the direction of bigger compliance of private and public profits play a crucial role in neutralization of "failures of the market". In the paper it is shown that actions of market forces in modern Russia are insufficiently balanced by actions of the state institutes for control of an excess inequality, creation of the competitive environment and counteraction to rent-seeking behavior of certain players. In the country there was unfairly high level of differentiation of the population according to the income which formation is influenced by the institutional environment, there is a process of an institutionalization of poverty. The corresponding quantitative estimates and intercountry comparisons confirming this conclusion are given in the paper. It allows to talk about "failures of the state" and signs of "standard capture" in modern Russia. In the paper the conclusion is drawn that such situation when institutional and market mechanisms in common work for restriction of equal opportunities and increase in distinctions in the level of the income and wealth can't allow. Coordinated actions on change of the situation which can provide minimization of failures of the state are necessary. These actions are in a foreshortening of a question of restoration of social justice.


Keywords: «failure of the state»; «failure of the market»; social institutions; social justice; excess inequalities; equal opportunities; progressive taxation; ofshorization.

References:
  •  As Taxes in the Different Countries have Changed. (2015). Kommersant Money – Weekly Economic Magazine. Kommersant Publishing House, no. 12(1020), KPMG, Trading Economics. (In Russian).
  • Belokrylova O. S. and Vakhtina M. А. (2014). That Generates Corruption: Institutional System or Human Essence? To A Question of the Nature of Opportunistic Behavior. Public and Municipal Administration: Scientific Notes, no. 4, pp. 9-15. (In Russian).
  • Berdnikov V. А. and Vakhtina M. А. (2014). Institute of Social Justice in the Market Economy in Russia: State and Trends. Vestnik Samara State University of Economics. «Economics», no. 11(121), pp. 6-11. (In Russian).
  • Federal Law of 29.12.2015 No. 385-FZ "On Regarding the Suspension of Certain Provisions of Legislative Acts of the Russian Federation, Amendments to Certain Legislative Acts of the Russian Federation and the Peculiarities of Increase of Pension Fixed Payout to the Insurance Pensions and Social Pensions". (http://rg.ru/2015/12/31/priostanovlenie-dok.html - Access Date: 20.03.2016). (In Russian).
  • Federal Law of 29.12.2015 No. 388-FZ "On Amendments to Certain Legislative Acts of the Russian Federation in Part of Accounting and Improving the Provision of Social Support in Terms of the Duty of Compliance with the Targeting Principle and Application Criteria". (http://rg.ru/2015/12/31/kriterii-dok.html – Access Date: 20.03.2016). (In Russian).
  • Forster M. F. and Martin J. P. (2014). Equilibration of Economic Efficiency and Social Justice. Alternativas, no. 1. (http://www.intelros.ru/readroom/alternativi/a1-2014/23387-uravnoveshivanie-ekonomicheskoy-effekt ivnost i - i-socialnoyspravedlivosti.html – Access Date: 20.03.2016). (In Russian).
  • Glazyev S. (2015). To Strategy of Social Justice and Development. Official Site Sergey Glazyev. (http://www.glazev.ru – Access Date: 02.04.2016). (In Russian).
  • Income and Expenses of the Population: Main Changes of 2015 / Institute of Management of Social Processes. Center of the Analysis of the Income and Standard of Living. Monitoring of the Income, Expenses, Consumption of the Russian Households. (https://www.hse.ru/data/2015/06/22/1083888513/2015_3s_lncomes1Q._z.pdf - Access Date: 20.03.2016). (In Russian).
  • Malkina M. Y. (2014). Study of the Relationship between the Development Level and Degree of Income Inequality in the Russian Regions. Economy of Region, no. 2, pp. 238-246. (In Russian).
  • Malkina M. Y. (2016). Institutional Framework of Income Inequality in Modern Economy. Journal of Institutional Studies, vol. 8, no. 1, pp. 100-120. (In Russian).
  • Nisnevich Y. A. and Stukal D. K. (2012). Multifaced Corruption and itsMeasurements in International Organizations’ Studies. World Economy and International Relations, no. 3, pp. 83-90. (In Russian).
  • Program of Stolypin’s Club. Growth Economy (2016). (http://expert.ru/data/public/499741/499785/dir-polnaya-versiya-19_10_15.pdf - 20.03.2016). (In Russian).
  • Rawls J. (2010). A Theory of Justice. Moscow, LKI Publ. (In Russian).
  • Shakhovskaya L. S. and Klimkova K. O. (2016). Institutionalization of Poverty in Russia: is it Possible to Curtail the Process? National Interests: Priorities and Security, no. 3(336), pp. 67-78. (In Russian).
  • Statistical Yearbook of Russia (2016). (http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1135087342078 – 20.03.2016). (In Russian).
  • Stiglitz J. (2015). The Price of Inequality: How Today's Divided Society Endangers Our Future. Moscow, 288 p. (In Russian).
  • The Message of the President of the Russian Federation to the Federal Assembly (2012). (http://www.kremlin.ru/events/president/news/17118 - Access Date: 28.03.2016). (In Russian).
  • The Message of the President of the Russian Federation to the Federal Assembly (2013). (http://rg.ru/2013/12/12/poslanie.html - 28.03.2016). (In Russian).
  • The Rich and the Poor – Yesterday and Today (2015). Press Release, Russian Public Opinion Research Center, no. 2878. (http://wciom.ru/index.php?id=236&uid=115317 – Access Date: 25.03.2016). (In Russian).
  • Tullock G. (2011). Public Goods, Redistribution and Rent Seeking. Moscow, 216 p. (In Russian).
  • Vorobyev A. N. (2012). Leviathan Against its Will: State Capture as a Consequence of Regime Deformations / National Research University “Higher School of Economics”. Moscow, pp. 3-25. (In Russian).
Publisher: Ltd. "Humanitarian perspectives"
Founder: Ltd. "Humanitarian perspectives"
Online ISSN: 2412-6047
ISSN: 2078-5429