It was long before the current economic crisis has triggered a new wave of criticism towards the very foundation of capitalism – the market system, that a discontent with deepening divergence between the pure economic theory and the agenda the economic policy has been dealing with was proliferating. Aattempts of refining the paradigm or its replacement with a new one were undertaken. The objective of the study was to review the main failures and incapacities the neoclassical economic theory is experiencing and to identify the possible trait components most appealing for modification and refining. The vast and unstoppable waste of resources (labour, but not only) by the modern market system, negation of the permanent and necessary presence of state in the economy as an integral economic agent, distortion of goals of economic activity by limiting them by the quantitative maximization of produce – these are the main traits of failure of the current theoretical model in satisfying requirements for a better understanding of modern economy. They are also the arguments for the criticism of its paradigm.The analytical method was used to penetrate the current discussion and other data in order to disclose the paradigmatic content of the theoretical perception of modern economy. The results of the whole study are new in terms of the fulfilled attempt to systemize criticisms of market system failures and to point out the possible components of its paradigm, which pretend to be modified. The conclusion is drawn that the paradigm of mainstream economics has no alternatives, but the growing mismatch between the realities of modern economic life and presumptions and the conclusions of the neoclassical model of economy asks for its revision or modification.
Questions on the strategy of the EU development still are rare in the political discourse in Lithuania. This, of course, is a temporary phenomenon. Direct "physical" participation of our country in the European integration and consolidation processes shall lead to, inescapably, a larger involvement into debates about strategic issues of these developments. The financing of processes facilitating integration is one among them. The article deals with the debates on a new seven-year budgetary framework of the EU, the so-called financial perspective (FP), for the years 2007-2013. The article begins with description of several prominent and specific features of the EU budget formation and structure. Main attention is given to the discussion about the new FP during the period of 2004-2006. As a main financial document of the EU, the FP has provoked more exact definitions of national interests within the EU member states, brought their differences to the surface, forced them to specify their demands towards scale and structure of the budget, and pushed them one more time for the search of a compromise. The analysis of the discussion is summarized by general conclusions.
The article deals with the issue of the growing role of knowledge as a production factor and its implications for a national economic development. A review of liberalization of goods and services, capital and, however highly selective, labour movement leads to the conclusion that although liberalization extends possibilities for all participating countries to speed up their economic development it does not necessarily serve as an instrument for narrowing the development gap. Deep changes in production processes, linked with rapid changes in information and communication technologies, expose the growing role of knowledge which becomes a separate factor of production. Can knowledge play a role of a factor that could preferentially assist less developed countries in closing the gap in their economic and social evolution? The analysis shows that it rather cannot because the processes and procedures of international political economy are put in action for still the same economic and political goal - to preserve the leading role of developed countries in the global community. Less developed countries, including nations in transition, cannot rely on implementation of all five freedoms in cross-border economic relations, when they aim to narrow the developmental gap; special measures of economic policy. both on the national and international scale, are needed to solve the problem.
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