Nenad Dugalić, LLM*
BASIC MECHANISMS OF NATIONAL ECONOMIC POLICY AS A STIMULUS OF COMPETITIVENESS OF THE DEVELOPING COUNTRIES INDUSTRIES
Summary
At the present stage of the process of globalization, national economies cannot remain only passive observers of its movement, but must actively participate and become an equal subject in the market game. Regardless of its own, both innate and acquired defects, the market cannot be omitted from the process of globalization. Therefore, the role of national states must concentrate on creating a favorable macroeconomic environment for intensifying the growth of the domestic economy on one, apropos, to the strengthening of its foreign positions, on the other side. In this context, national states should retain their legislative, organizational and control powers, not with the aim of eliminating the market, but vice versa, to direct it in the desired directions. National states have small, or almost no, options for their choice. Establishing a global free market is a political project in the interest of the wealthy developed capitalist countries. The main conclusion of this study should be a mandatory task, especially for the small and undeveloped economies to develop its own strategy of economic and social development. The starting premises would be: the pace of economic growth, the degree of openness of the economy, the real possibility to engage in global processes, etc., and only then, the concept for their integration into the world economy can be built. The synthesis of the economic and social component can further conceive the strategy of liberalization, that is, competitiveness. At the same time, it could be possible to work on the formation of regional integration units for better protection of the national economic interests in general, or protecting domestic enterprises in competition with the TNC, in particular. Regional integration unities, as stronger than national ones, can more successfully fight for more equal treatment at the international level. Therefore, the process of globalization that is realized by linking special societies that are organized as states (most often national ones) should not be carried out by abolition, but by state cooperation. The abolition of national states would present a basis for destroying the culture of peoples and nations, erasing their traditions, and in that context limiting the possibility of expressing the special features and integrity of their citizens. The vision of the globalized world should seek a new balance of forces and influences that will be based on an open and fruitful dialogue and full respect for the dignity of others, or in other words respecting the cultural specifics of each nation.
Key words: economic policy, competitiveness, globalization, international finance, liberalization.