EXPERIENCE OF BUILDING A SOCIAL STATE OF L. ERHARD AND THE RELEVANCE OF ITS USE IN MODERN RUSSIA


Balashov A.M

The actualization of social factors in the development of the economy is now increasingly recognized, first of all, as the potential for economic growth, products competitiveness increasing and ensuring social and economic stability of society. Therefore, this article examines the German experience of building a “social market economy”, implemented in practice by L. Erhard. The theory of “social market economy” was based on the principle of social orientation of the market and carried out under the slogan “Welfare for everyone”. A special system of social protection was created for the population, a number of measures were taken to reduce taxation, strengthen the stability of the currency and encourage companies exporting finished products, which made it possible to triple exports. The reform was accompanied by a reduction in prices, which was due to the saturation of the market and the development of free competition, which was supported by the adoption of laws prohibiting arbitrary price increases. This model has shown its dynamism and effectiveness, its huge scientific and practical potential has allowed post-war Germany to become a leader in the world economic and political arena, as well as to coordinate the interaction of the market, social sphere and the state. In nowadays Russia a study of the German experience confirms the need to build a social state in Russia, the development of free, fair competition, increase of social responsibility of business and government, and increase of civil society’s role in the economy and politics of the state, the potential of the individual through education and the growing importance of social mobility and the welfare of the population. Keywords:social state, welfare, entrepreneurship, competition, economic growth, digitalization, smart city, digital human capital, new business systems, interaction with consumers and partners. Highlights: ♦ the concept of social market economy of L. Erhard provides for the conscious construction of a competitive market mechanism by introducing clear legislation, a rational foreign economic policy, and significant labor and social guarantees for the population; ♦ improving the level of economic and business management is particularly important in the context of digitalization, when combined efforts are needed to increase competitiveness and reduce the price of products; ♦ to achieve a higher level of income in the national economy, it is necessary not only to develop the digital economy, but also to increase investments in modern production technologies, in “smart” infrastructure, focused on the needs of the population, both in the center and in the regions.

Alexey M. Balashov, Candidate of Economics, Associate Professor of the Novosibirsk State Pedagogical University.


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