Transformation of Institutions in the Modern Economy

The subject of the study is institutional changes in the economy, their causes and consequences. The purpose of the work is to show that purposeful changes in the rules on which the international order is based have become an effective method of economic policy both at the national level and within the framework of the world system and international relations, causing systemic dysfunctions that are formed along institutional and managerial contours and are determined by the use of new technologies. The research methodology is based on institutional and comparative analyses, as well as on the author’s theory of dysfunctions to highlight the independent significance of institutional and technological changes. The influence of the dysfunction of institutions and management on the efficiency of the functioning of the economy and the formation of conditions for subsequent institutional transformations is shown. The model of institutional competition is considered and it is proved that, along with competition in products, services, resources and technologies, it is of greater importance in the modern economy, since competition in objects is determined by the institutional conditions of business organization and markets. It is established that economic agents participate in institutional competition by building schemes for lobbying their interests, and institutional competition itself is carried out at the level of public administration —  the legislative and executive branches of government. It is revealed that the transformation of international institutions is currently taking place frontally under the influence of sanctions wars. It is concluded that the dysfunction of institutions and management (control) is the cause of the “administrative trap of rules”, which is shown by the example of healthcare management in Russia, when patients are sent to medical institutions to receive high-tech specialized medical care. The result of the study confirms the author’s argument about the need to build their own internal rules in Russia and overcome external dependence on institutions that generate a regime of institutional competition on the rights of a slave, not a leading participant, as well as reducing the dysfunction of control.

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