THE ROLE OF THE STATE IN DEVELOPMENT PLANNING AND PREVENTION OF CRISIS
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Authors:
• Sasha OBRADOVIC, email: sobradovic6@sbb.rs, Afiliation: Assistant Professor, Faculty of Economics, University of Kragujevac, Serbia -
Keywords: State, development, market, market failures and planning
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Abstract:
In this paper, I tried to present the analysis of the arguments for and against the state intervention. Contemporary role of the state is particularly important with the presentation of the world economic crisis, where the advantages and disadvantages of the market in the process of globalization are clearly recognized. Further involvement in the process of globalization and the promotion of market mechanisms are effective ways of resource allocations, while the role of the state apparatus is to promote economic development and act stabilizing in the state of the economic crisis. In fully free effect of the globalization and markets, resources are allocated in accordance with the demand of the consumers, while a national market is the organizational framework that brings together supply and demand.