1.1.2. Social and economic functions of the rule of law in market conditions
The functions of the state are the main directions of its activities to solve the tasks facing it in order to achieve certain goals. Realizing its functions, the state through reforms, various kinds of reforms, legal regulation of social ties affects the state of social processes.Significant features of the functions of the state are their direct connection with the essence and social purpose of the state, the direction to solve tasks for public purposes, which are different for certain historical periods of time, are modified in the process of formation, strengthening and further development of the state.
For scientific and practical purposes, the functions of the state can be classified according to different criteria.
For example, according to the time of action, the constants realized by the state at all stages of its existence are singled out, and the temporal functions, whose appearance is caused by specific conditions of social development, and the termination is due to their disappearance.
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In areas of political orientation (domestic and foreign policy), the functions of the state are divided into internal, representing its activities within the country, determining its role in the life of a given society, and external
- activities outside its borders, in which the role of the state manifests itself in relations with other countries. Internal and external functions of any state are closely connected, since foreign policy largely depends on the internal conditions of society.
In the spheres of public life, the functions of the state can be divided into economic, social, political and realized in the spiritual sphere.
It should be noted that social functions of the state are to ensure the social security of the individual, normal living conditions for all members of society, regardless of their direct participation in the production of goods. In a state governed by the rule of law, the distribution of material goods is carried out in addition to free equivalent exchange between producers and consumers.
The formation of a social rule of law is going through a complicated and painful path. Initially, the development and enrichment of society leads to its stratification into the poor and the rich. Formally, the proclamation of equality reproduces the material inequality that generates a crisis and acute social conflicts in society. And only gradually the rule of law acquires the features of the social state, complements the formal guarantees of the free development of the individual with material guarantees of social security. In general, the modern legal state guarantees real social security to all those who are economically disadvantaged, and constantly increases allocations for the social needs of the entire population of the country.
In the former totalitarian states, where the formation of the legal foundations of public and state life is taking place, social regulation by the principle of equalization is gradually being superseded. Equalization as a primitive-consumer phenomenon is beneficial only to the equalizing bureaucracy. This way of social regulation is imposed and supported by the coercive power of a totalitarian state. The ability of the bureaucracy to have a higher level of consumption in comparison with the bulk of the population is created artificially through the appropriation of the results of someone else's labor, limiting the material stimulation of the labor contribution to the production of social benefits. As a result, this leads to restraining the social activity and enterprise of producers, reducing the level of scientific and technological progress, the decline of culture and morality of the people, leading society into a state of stagnation and disunity.
Only in the context of understanding the criteria of freedom, social control and economic independence of producers of material and spiritual goods, the state is able to pursue a fair social policy in relation to the population of the country.
The economic functions of the state are to develop and coordinate strategic directions for the development of the economy in a market economy. Let us consider in more detail what they include.
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Development and approval of the legal basis of the economy. In the social market economy, a special place is given to legislation regulating social relations. The state, in the person of its parliamentary and governmental structures, determines the rules of the economic game conducted by economic entities (producers, consumers, the state). When they talk about the rules of the economic game, they have in mind the legal basis created by the state. In turn, legal basis means laws and other normative acts regulating economic activity (for example, defining property rights, regulating entrepreneurial activity, etc.). The state determines the duration of the working week, the minimum wage, determines the mechanism of compulsory social insurance, the procedure for calculating pensions. In addition, special laws are being developed that guarantee social stability for the population. They establish assistance to families, various types of benefits, the possibility of obtaining education, housing, access to health services.
Antitrust regulation. The purpose of antimonopoly regulation is to prevent the consequences associated with imperfect competition. The state through the relevant legislation establishes control over prices, prevents the merger of large firms. It is not simply fighting monopolies, but is trying to provide broad access to reliable information about the situation in the market and the state of the economy as a whole.
Stabilization of the economy. The government, using financial and monetary policy, seeks to overcome crisis phenomena, a decline in production, reduce unemployment, and smooth inflationary processes. There are two ways of stabilizing the economy: increasing government spending while reducing taxes or cutting government spending while increasing taxes. This function is aimed at preventing, slowing down the economic downturn, securing and maintaining economic indicators at a certain level.
Distribution of resources. Implementing economic policy, the state regulates the activity of enterprises at the microeconomic level. It creates conditions for the development of agriculture, communication, transport, determines the cost of health care, education.
Redistribution of resources. Redistribution of income is the withdrawal of a part of the income from some persons for the purpose of transferring them to others or voluntary transfer of income by one person to another, more needy. Through tax redistribution of income, the implementation of social protection programs, the state takes care of unprotected citizens.
Ensuring social guarantees. The state guarantees fulfillment of its obligations at the level of minimum social standards.
Government regulation of the economy is divided into administrative and economic.
Administrative Tools - prohibition, authorization, coercion. Prohibition is the prohibition of any activity, recognition as socially harmful. The product is not allowed to use, use. A permit is an agreement issued in writing to conduct economic activities. Coercion is a method of management based on censure and the application of penalties for violation of established norms.
The main economic means of state regulation is the financial policy of the state.
It affects the economy, overcoming the "market failures" associated with eliminating the negative effects of the market mechanism, and redistributing income and resources. The ability of the state to provide public goods and redistribution depends on the income that it has.
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