Failure of the state – theory claiming that the state (Government) is not an effective substitute for market imperfections, that is, the constant indication of the so-called. Market failure domains turned into alibi for state involvement in economic life, that is, in the allocation of resources. In contemporary economic literature, numerous domains of the failure of the state, which have a clear confirmation in the Republic of Macedonia – and in the previous and current economic and political system: the Government does not have complete information on the economic and social sphere; Inappropriate incentives and motivations reduce the efficiency of the state; There is a disposal of resources in the public sector; There are unexpected reactions in relation to public programs; Fees of the state are often short-term; There is bureaucratic inefficiency and bureaucratic coercion; Cost-benefit analysis in large infrastructure facilities often shows economic viability, but their construction lasts long and is associated with the appearance of unexpected and hidden costs; Institutions are ineffective; State interventions in the economy cause distortion of relative prices and inefficient resource allocation, etc. Lit.: J. Stiglitz, Principe D’ergonomie Mode, 2èessess, De BoGK Universes, Paris – Brugelles, 2000, 136-141; R. Lypsee, & L. Harburg, FIRST Principles of Economic, London, 1992, 236-237; C. McConnone and S. Brue, Economic – Principles, Problems, POLICICS, THirTententich Editon, McGon-Hill, INC, 1996, 622-625. T. F. Informal economy
Original article in Macedonian language Cyrillic alphabet
Кириличен напис НЕУСПЕХ НА ДРЖАВАТА