System of Principles of Commodity Markets Selective Regulation in Conditions of Instability

Abstract

Topicality. The emergence of a selective approach in the system of state regulation is due to market "flaws," i.e., its inability to ensure efficient resource allocation in certain sectors of the economy and commodity markets. The need for selective regulation increases during periods of instability, martial law and post-war reconstruction of the state, characterized by limited financial, material and labor resources, and increased challenges and threats in the security environment. The introduction of adaptive mechanisms for regulating commodity market systems in wartime and post-war periods necessitates the development of a methodology for selective regulation based on the principles of resilience, an integral part of which is a system of updated principles.Aim and tasks. The purpose of the article is to substantiate the system of principles of selective regulation of vertically adjacent commodity markets based on the synthesis of various scientific approaches in the context of instability.Materials and Methods. The results of the theoretical generalization of scientific works and methodological approaches in the field of regulation of commodity market systems covered in publications of a fundamental and applied nature, as well as statistical data of the State Statistics Service of Ukraine form the material and methodological basis of the study. The methods of systemic, structural and logical, comparative, and statistical analysis were used to solve the tasks set.Research results. The expediency of synthesizing four theories for forming the principles of selective regulation of vertically adjacent commodity markets in the postwar period is substantiated: the theory of resilience, economic sustainability, resource reproduction and sustainable development. The methodological foundations of selective regulation of market systems are improved, which are based on a system of principles formed on the basis of a synthesis of four theories, with the allocation of groups of general principles (expediency, systematicity and consistency, adequacy, predictability, objectivity and accuracy, transparency), resilient (preventive, priority of economic interests of the State, alternative) sustainability (efficiency, adaptability, flexibility and maneuverability, dynamism, science), reproduction (purposefulness, rationality of the ratio of regulatory methods, reproductive proportionality, efficiency, feedback), and principles of sustainable development (minimization of losses, cyclicality of reproduction processes, market inclusion), which are interrelated and have a common reproductive basis. The author identifies violations of the principle of reproduction proportionality of market systems in practice. Based on the results of empirical studies, it is established that the surplus of Ukrainian agricultural products is formed by 93% of the balance of grain crops. It is proved that the added value produced by the agricultural sector is reinvested either in other sectors of the economy or migrates abroad through growing raw material exports.Conclusion. The author substantiates the methodological foundations of selective regulation of the development of adjacent commodity market systems under conditions of instability, which are based on the author's concept of selective regulation, a system of updated principles, and a set of mechanisms for selective regulation. The type of regulatory mechanism depends on the characteristics of market systems, their type, level of development, period and efficiency. It is emphasized that in conditions of instability, preference should be given to complex, adaptive and preventive mechanisms of selective regulation. The applied significance of the research results is determined by the possibility of their use as a scientific basis by public authorities at various levels in the development of adaptive and preventive mechanisms for selective regulation of commodity market systems.