Summary

As a result of the transformation of capitalism, the development of an economic system based on the dominance of private capitalist ownership into a new property has changed the trajectory of the world development. The formation of the socially oriented economy has become an important trend of the development of the modern world and it is recognized a guarantor of forming civil society. This cir- cumstance contributed to bringing moral values to the forefront which left behind hitherto rooted demands, one might say, conditioned by social instinct and rose above them.

In market economy, strengthening of social orientation has put forward the study of socio-economic aspects of the welfare. The welfare economics is organically linked with competitive economy, moreover, in modern civilized economy this latter is even recognized as a means of determining the achievement of inclusive welfare. Therefore, today in the world economic literature of topical importance has become global trends of strengthening competition and study of new perspectives of a country oriented on competitiveness.

In civilized world rather approved thesis – “welfare through com- petition” was considerably favored by the existence of anti-monopoly legislation and anti-monopoly regulation which are recognized as one of the best means to achieve competitive advantage.

Competitiveness as a guarantee of the country’s development determines the place and role of each country in the world economy. In order for a country to be competitive, it should sell its goods abroad through the international market network. This is a great “playing field” which represents a kind of compass for each country on which way to go, what industries need to develop, what should be the general strategy of its economic development.

In order to give social orientation to the economy and promote the functioning and development of market economy, the developed countries increase welfare expenditure, healthcare and expenditure on education with which fulfill important role and hence, fulfill an important role in the development of the market economy as a socially-oriented economy into the social economy through evolution.

Today, in the 21st century, the main goal of a country’s economic policy should be the introduction of new forms of growth in the total demand which has been developed by new Keynesians and reflected in “new neoclassic synthesis”, creation of competitive envi- ronment and development of competition, bringing to the forefront partnership, implementation of scientific achievements in short terms, wide dissemination of resource-saving and non-waste technologies, rapid development of the information industry, increase of the mo- bility of financial capital, regulation of the ratio of private and public property, creation of legal environment and regulation, etc. Therefore, the main principles of economic policy should be: 1) inviolability of private property; 2) monetary stability; 3) market openness; 4) freedom of transactions and contract agreements; 5) consistency in the implementation of economic policy; 6) conduction of a flexible fiscal and monetary anti-cyclical policy and so forth.

Currently, in Western Europe, the place of a “closed”, interventional social policy is occupied by open, stable and viable social policy, as a challenge to modern civilization. The countries following this way give priority to the system organization for creating new jobs, development of the self-employment system rather than ordinary, one could say, time-worn system of social assistance.

Hence, the economy with a high standard of living and significant social expenditures should be distinguished from the social market economy proper. The first refers to liberal societies who have reached the highest level of material wealth and, therefore, can allocate solid funds to help the poor, financing of healthcare, education and other social purposes. The clearest example of such a society is the US and Canada. However, these countries do not have strong ‘built-in” mechanisms to reconcile the interests between social groups. In contrast, the small West European countries, for instance, Austria, Belgium, Switzerland, etc., may be given a new type of market economy just due to the fact that their socio-economic and legislative systems are directed to social agreement and achievement of a high standard of living and better quality of life, in spite of the fact that according to absolute indices these countries are far behind the US and Canada. This is confirmed by the fact that according to the data of 2015, the summary index of quality of life and “comfort” among

188 countries in the world, Switzerland is on the 1^st  place (222.94), Germany (195.94) holds 2^nd place and Sweden with index 193.86 holds 3^rd place. According to the mentioned index Georgia 64.96 holds 57^th place. The 21^st century proving to be a century of knowledge and intellectual capital, significantly changes the principles of competitiveness of a country. Today, countries achieve a competitive advantage, establish new standards, invest money in renewal of knowledge, creation of a new type of production, etc. All this determines the effective use of existing resources in the public sector of the economy, development of public sector economics and growth of welfare on the basis on healthy competition.

Today the technological boom changes the trajectory of the world economy development, brings a huge positive to it and its disregard means insuperability of backwardness and makes doubtful the development of the public sector economics.

The development of innovations which is currently recognized as the most important resource of economic growth is spread not only on market sector but also on nonmarket sector and makes great influence on functioning of the economy, all institutional forms and structure.

In modern economy the creation of a new structure is based on new innovative system which includes cutting-edge technologies and implies doing the job anew and knowledge renewal. Production growth in developed countries from 76% to 100% is achieved precisely through the use of innovations^[1].

In conditions of a global economy, mastering the skill of competition in the global economy, both domestic and foreign markets are a prerequisite for success. Today, the real prosperity is achieved by those countries and those companies that rapidly response to the processes taking place in the world and take into consideration the requirements of globalization, which is, first of all, linked with new way of thinking which producers need and information filtration at all levels.