The interaction between business and government: transformation of "state capture"

Article is devoted to a concept research «state capture», the concept reveals uncontrolled abuse of power and public resources in order to extract rent by certain groups of interests. On the one hand, there are restrictions on the part of the government this updates the issues of efficiency and quality of public administration. From other side, the influence of interest groups (business and state structures) on the formation and implementation of economic policy areas prevails. This leads to distortion of competition and other contradictory socioeconomic consequences for society. The interpretation «state capture» is based on case studies of the business environment which were conducted by international organizations, research on the investment climate, competitiveness and security of the state. Description «state capture» involves a combination of formal and informal practices of interaction between business and government. The objective complexity of the relationship between business and government is evident, that there was a clustering of agents within the state-the emergence of party and political elites and their combinations. An active role in these cases is played by state officials, network officials or political parties with the use of a sufficient arsenal of tools to capture. The captor's typology is considered exclusively from the standpoint both business and government. Nevertheless, business structures of the criminal economy, groups of interests of religious orientation are also inclined to take part in process «state capture». The interaction of business and the state in Russia corresponds to logic of transformation of the «state capture». The formation of the «rules of the game» is due to the asymmetry of formal and informal practices of interaction between business and state in favor to state. This is evidenced by the experience of privatization and the formation of state entrepreneurship, when state understands itself as effective owner, also by stages of formation and development of large business in spatial and social aspects. This causes a conflict of interaction not only between business and the state, but also a conflict with it in the business itself. because it carries additional costs to maintain and maintain competitive positions in the absence of equal representation of their interests and incentives to improve corporate governance practices based on strategic vision.

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