Academic journal article Asian Social Science

Multilevel Industrial Policy: Methodological Basis of System Approach to Its Formation and Implementation

Academic journal article Asian Social Science

Multilevel Industrial Policy: Methodological Basis of System Approach to Its Formation and Implementation

Article excerpt

Abstract

The article illustrates the theoretical and methodological aspects of forming and implementing multilevel industrial policy, demonstrates the directions of forming the system of managing the multilevel industrial policy. System approach is suggested to distinguish six sub-systems in the internal structure of the examined system: target oriented, supportive, managing, managed, functional, communicative. The homogeneous character of these subsystems is defined. The scientific analysis of system reveals its philosophy, logic, activity character, methods, principals, temporary structure of activity, technologies of forming and implementing the multilevel industrial policy.

Keywords: industrial policy, multilevel management system, economic integration, methods, forms, models, principals of policy formation and implementation

1. The Problem

The necessity of forming and implementing industrial policy in national (economy has been constantly doubted by some scientists and economists, this question is open for discussion (Lapochkina, 2013). This could be explained by the fact that in a number of cases industrial policy implies government interference in the activity of market institutions; giving advantages to some branches at the cost of others; setting up imbalance on the commodity market and economy in general. Besides, the preliminary stage of conducting the target-oriented industrial policy in a short-term and sometimes in a long-term period cause additional costs. But we should also notice another aspect of the process - countries that recently managed to increase the level of their economy development and change from developing to the developed ones, accomplished this due to carrying out successful industrial policy (Japan, Finland, Malaysia, China, South Korea, Taiwan) (Kondratiev, 2006; European Commission, 2002; Drobyshevskiy, 2010).

Of course the first stages of implementing industrial policy are carried out with the dominating economic interests. The government acts as a direct partner of big industries and promote their interests; at this time it takes into account the interests of society at the minimum rate (Rodrik, 2005). The main target of industrial policy is to provide the national security in all aspects, social aspects are taken into account only in the critical spheres of society life: employment guarantee, healthcare, food provision. The main aspect is made for the strong defense industry, increasing the profit from taxation, export duties and etc.

However already on the second stage the basic social guarantees are balanced. On this stage in the process of forming and implementing industrial policy the negative influence on the social sphere (healthcare, education, unemployment) and scientific environment are considered. Similarly the adverse effect of social sphere on the industrial development is taken into consideration. It is on this stage when industrial policy should become the fully legitimate element of general economic policy of the country, and in many cases its basis.

The final stage should provide equality, and in some segments - domination of social interests on the economic ones. The opinion of society plays the key role while forming and implementing industrial policy. The meaning of social aspects (ecology, ethics, culture) is increasing and becomes even equal to the economic ones. Social sphere in modern industrial policy is considered as the object and participant of the process of developing national industry. But this process could be implemented only on the basis of correct and efficient management. The necessity to develop industrial policy cannot be doubted, its formation and implementation should be carried out on the basis of using managerial approaches, methods, tools, and their implementation will contribute to developing industrial policy as the basis of economic policy of the country.

2. System Approach to Forming and Implementing Industrial Policy

Industrial policy refers to the class of social and economic systems where the man sets tasks for every system element. …

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