THE ROLE OF STIMULATION IN THE ECONOMIC DEVELOPMENT PROCESS IN MODERN CONDITIONS

Abstract

Introduction. Ensuring the sustainability of economic development requires the application of a number of stimulation mechanisms to the subjects of economic activity. The effective choice of such mechanisms requires an understanding of the essence of economic stimulation as a tool for regulating economic activity, as well as the specifics of modern condi- tions of economic functioning. Materials and methods. By its essence, economic stimulation is divided into three levels according to the level of incentive. It may considered as an inducement of employees of an organization to the required behavior for its management, as a tool for solv- ing a number of specific social and economic problems and as a way of solving socio-economic problems at the state level. This article examines the process of stimulation at the level of social production, where the prerequisites for adjusting state policy to stimulate economic develop- ment are presented. Research results. The prerequisites contributing to the adjustment of the ap- plied mechanisms to stimulate economic development include the increasing role of technology and information in the activities of organizations, automation of routine work processes due to the achievements of robotization and artificial intelligence, revision of requirements for the characteristics of human resources, as well as structural changes in the characteristics of capital. Based on these assumptions, a number of administrative and economic forms and methods of stimulating economic development were proposed. Discussion and conclusion. This article con- siders in detail the specifics of application in modern conditions of a number of economic forms of stimulation, which include the provision of financial support, public-private partnership and strengthening international cooperation in foreign economic activity. For each of the presented forms a number of methods and tools that allow realizing the stimulating effect on the activities of economic entities are proposed.