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Macroeconomic environment and the public sector: Place and role

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In most modern countries, the social democratic and liberal approaches prevail on the place of the public sector in state management and socioeconomic development, which significantly reduces the role of the public sector in production activities, so the public sector today largely encompasses social activities, i.e. socially upgrading production activities. Regardless of the ideological approach, the public sector is undeniably the most important factor of the state, on whose efficiency and effectiveness the degree of economic and legal environment as a basic prerequisite for the development of society and the development of social activities depends.
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37
MAKROEKONOMSKO OKRU MESTO I
ULOGA
1, Joao Kaputo2 3, Danijela
4
doi: 10.5937/Oditor2103037V
Pregledni rad
UDK: 330.101.541
330.526.34
Apstrakt
-ekonomskom
Bez obzira na
konomsko-pravnog
Klju ne re i: makroekonomsko okru enje, javni sektor,
efikasnost.
JEL: E69
Uvod
U kontekstu ekonomske uloge, javni
(Vigvari i dr., 2003).
institucionalnih jedinica koje direktno ili indirektno na
1Fakultet za m
Karlovci, Srbija, E-mail: vukosavljevic.dejan@gmail.com
2 Joao Kaputo, Estudante, Força rea Angolana, Rua 17 de Setembro, Luanada, Angola, E-mail:
joao.kaputo@gmail.com
3 Redovni profesor dr A
33, Beograd, Republika Srbija, aleksandra.tesic@gmail.com
4 Fakultet za
Karlovci, Srbija, Telefon: +381 62 20 96 250, E-mail: dr.danijela.vukosavljevic@gmail.com
38
transakcijama sa drugim ekonomskim subjektima.
-ekonomskom sistemu jedne zemlje, predstavljaju
tvene zajednice u kojoj dolazi
nezavisne celine -
-ekonomskog
Makroekonomski sektori
principu (prema a
Sektorska klasifikacija institucionalnih jedinica, 2018).
podsektori. Svaki od sektora
osnovu vrste proizvodnje i osnovne delatnosti i funkcije institucionalne jedinice,
institucionalnih jedinica unutar datog sektora.
Slika 1. Institucionalni sektori nacionalne ekonomije
sektorima za period 2010 -
39
dobara i usluga institucionalnih jedinica, to jest da bi institucionalna jedinica bila
;
da ima status samostalnog
doprinosa i davanja.
Institucionalne jedinice javnog sektora
vi
Mitrovi
al
javnim privrednim dru
upravljanja, imenovanjem i
Afanasyeva et al., 2020).
Na osnovu prethodnih definicija po
Azofra et al., 2020), iz
centralnom i lokalnom nivou vlasti.
40
-
).
kupnu delatnost u kojoj dati entitet posluje, a
i u vidu da unutar nacionalne
sektora i privatnog sektora nisu uporedivi s obzirom da se privatni sektor
avnog
Ukoliko su r
ta zemlja efikasnija( ).
Efikasnost javnog sektora
koji se mere javnim rashodima. Implikacije neefikasnog
).
do nastajanja visokih fiskalnih deficita koji se vremenom akumuliraju i
41
.
javnog sekto .
jedinice javnog sekto
Primera radi, u obrazovanju proizvod javnog sektora predstavlja usluga
avnog sektora u obrazovanju se
Zaklju ak
Javni sektor predstavlja sredstvo kojim svaka dr ave deluje na najzna ajnija
podru ja zajedni kog rada i aktivnosti svih njenih gra ana. Krajnji cilj postojanja
javnog sektora predstavlja zadovoljenje potreba ire dru tvene zajednice, odnosno
za tita interesa i prava pojedinaca koji ine dru tvenu zajednicu.
Kao to je ve napomenuto, nivo aktivnosti dr ave u dru tvenim i komercijalnim
delatnostima varira u zavisnosti od politi kog sistema. U demokratskim
dru tvima, nadle nosti javnog sektora predstavlja problem isto politi ke prirode,
odnosno predstavlja proizvod politi ke volje one grupacije kojoj je ve ina glasa a
poverila poverenje u izbornom procesu. Me utim, i u dr avama sa najdu im
demokratskim tradicijama su prisutni razni oblici lobiranja zbog ega je mogu e
da dr avna potro nja bude alocirana i tamo gde to nije u interesu javnosti.
Literatura
1. Afanasyeva E., Jerow S., Lee S.J. & Modugno M. 2020. Sowing the seeds of
financial imbalances: The role of macroeconomic performance. Journal of
Financial Stability, 100839,
2. zicionim
-16.
3. Azofra V., Rodríguez-Sanz J.A. & Velasco P. 2020. The role of
macroeconomic factors in the capital structure of European firms: How
influential is bank debt?. International Review of Economics & Finance 69:
494-514,
42
4.
Evrope, 2014. url: http://libek.org.rs/uploads/2014-10-22-analiza-efikasnosti-
javnog-sektora.pdf.
5. 8. Economic effects of integrated marketing communications:
The case of food products. Ekonomika poljoprivrede 65(3): 985-994.
6. uzeli I. Interna revizija u funkciji unapre enja finansijske discipline u
javnom sektoru Federacija Bosne i Hercegovine. Magistarski rad. 2016.
http://univerzitetpim.com/wp-content/uploads/2016/11/Ekonomski-fakultet-
%C4%90uzeli%C4%87-Ismet.pdf.
7. : 7-
16.
8.
Akcionarstvo 26(1): 26-34.
9.
sistema i -63.
10. &
: 41-49
11. Promene, izazovi i spremnost zemalja
u tranziciji za nove razvojne trendove. Vojno delo 71(2): 224-243.
12. 2018.
70(2): 394-413.
13. g razvoja.
: 15-26
14.
tekovinama Evropske unije -
63(3): 891-904.
15. ta i finansijski
poslovi samouprava, Beograd: Evropski pokret u Srbiji. 2003.
16. Verstraete G., Aghezzaf E.H. & Desmet B. 2020. A leading macroeconomic
Computers & Industrial Engineering 139: 106169.
17. RZS. Sektorska klasifikacija institucionalnih jedinica. 2018. url:
http://www.stat.gov.rs/media/3300/2018-05-31-metodoloske-napomene.pdf.
43
18. Xing K. & Yang X. 2020. Predicting default rates by capturing critical
transitions in the macroeconomic system. Finance Research Letters 32:
101107.
19. https://www.monstat.org/userfiles/file/GDP/publikacije/INSTITUCIONALNI
%20SEKTORI_2010-2011_Rev2.pdf.
20. RZS. Sektorska klasifikacija institucionalnih jedinica. 2018. url:
http://www.stat.gov.rs/media/3300/2018-05-31-metodoloske-napomene.pdf.
44
MACROECONOMIC ENVIRONMENT AND THE PUBLIC SECTOR -
PLACE AND ROLE
5, Joao Kaputo6 7, Danijela
8
Abstract
In most modern countries, the social democratic and liberal approaches
prevail on the place of the public sector in state management and socio-
economic development, which significantly reduces the role of the public
sector in production activities, so the public sector today largely encompasses
social activities, i.e. socially upgrading production activities. Regardless of
the ideological approach, the public sector is undeniably the most important
factor of the state, on whose efficiency and effectiveness the degree of
economic and legal environment as a basic prerequisite for the development of
society and the development of social activities depends.
Key words: macroecnomic environment, public sector, social activities, efficiency.
Introduction
In the context of the economic role, the public
institutional system of economic engagement of the state, while its defining
sector is a system of institutional units that are directly or indirectly under state
control. The institutional unit is defined as an economic entity that owns its
own assets, assumes liabilities and participates in economic activities and
transactions with other economic entities.
Size and efficiency of the public sector, as the two most important parameters
of the role of the public sector in the socio-economic system of a country, are
the subject of numerous professional, scientific and political studies and
debates. Historically, the public sector emerged in the development phase of a
social community in which the political power of the ruling political
5Vanredni profesor, 5 Sremski Karlovci, Srbija, E-
mail: vukosavljevic.dejan@gmail.com
6 Joao Kaputo, Estudante, Força rea Angolana, Rua 17 de Setembro, Luanada, Angola, E-mail:
joao.kaputo@gmail.com
7 Dr A i profesor, Poslovni i pravni fakultet, Univerzitet MB, Kneza Mihaila
33, Beograd, Republika Srbija, aleksandra.tesic@gmail.com
8 FAM, Nj
no. 1a, 21205 Sremski Karlovci, Serbia, Phone: +381 62 20 96 250, E-mail:
dr.danijela.vukosavljevic@gmail.com
45
establishment split into two independent entities - the legislature and the
administrative branch, a process that took place in the most developed
capitalist countries in the 19th century. The development of the public sector
in the previous century largely depended on the socio-economic system, i.e. on
the system and manner of governing the state.
Macroeconomic sectors
In the broader macroeconomic context, institutional units by functional principle
(according to the activity and function they perform) are grouped into five national
sectors as follows (Sectoral Classification of Institutional Units, 2018).
Within the existing national sectors, institutional sub-sectors can also be
defined. Each of the sectors and subsectors consist of groups of institutional
units that have a similar type of economic behavior, so that grouping into
sectors is done based on the type of production and basic activity and function
of the institutional unit, while division into subsectors allows more precise
description of economic behavior of institutional units. Figure 1 shows the
institutional sectors and subsectors that make up a country's national economy.
Figure 1. Institutional sectors of the national economy
Source: Statistical Office of Montenegro. Calculation of GDP by institutional
sectors for the period from 2010-2011, according to methodology of the
System of National Accounts
46
Basic economic feature of the state sector is the non-market character of the
production of goods and services of institutional units, that is, in order for an
institutional unit to be classified in the state sector, it must meet some of the
That it is established by legal procedure with legislative, executive and
judicial power over other units in the economic territory of the country
that provide non-market goods and services intended for the
community;
That it represents a company whose production is predominantly non-
market and under state control;
That the non-profit institution has the status of an independent legal
entity whose production is predominantly non-market and under state
control;
to have the status of an independent fund which is mainly financed by
contributions who are legally obliged to pay, which is managed by the
state in terms of determining and approving contributions and giving.
Institutional units of the public sector
2019), their sectoral classification is based on the criterion of control, where
control is defined as the ability to determine the general policy of the business
entity. The notion of control is traditionally associated with ownership, but
more broadly one institution can effectively control another even if it does not
have majority ownership if it has alternative mechanisms of influence. In this
sense, an institutional unit from the sector of non-financial or financial
companies is considered a public company, and thus part of the public sector,
if the state has control over the governing bodies, appointment and dismissal
of management and key boards in the company, 3) if there are special
regulations, 4) if the state appears as the main buyer or creditor of the
company (Afanasyeva et al., 2020).
Based on previous definitions of the concept of social activities and the scope
of the public sector, as well as relevant institutional sectors and subsectors, it
can be concluded that the system of social activities in the modern market
economy largely corresponds to the scope of the public sector (Azofra et al.,
2020), from which public enterprises controlled by state units at the central
and local levels of government are excluded.
47
Social actvities and the public sector
In order for social activities to fulfill their basic role of meeting common
social needs, it is necessary for the public sector to function efficiently, i.e. to
ensure satisfactory quality of products and services at the lowest possible
social costs. As the public sector of a country functions more efficiently, the
quality of services provided to its citizens will be higher and their price
-
production sense, efficiency is defined as the production of a certain level of
output with minimum possible costs, i.e. the maximum possible output for a
given level of production costs, which means that, in order to assess the
efficiency of a social entity it is necessary to calculate its costs, results and as a
However, in reality it is not easy to determine whether the cost-benefit ratio is
optimal without the existence of an adequate benchmark for comparison.
When it comes to individual entities, the average ratio of results and costs for
the total activity in which a given entity operates can be used as a benchmark
for determining efficiency, and it is possible to take as an benchmark the entity
with the most favorable ratio of results and costs within a given activity
ot be applied to the public
sector as a whole, given that within the national economy there is no
benchmark for comparing results and costs (public sector and private sector
efficiencies are not comparable given that the private sector is driven by
market profitability). Therefore, the analysis of the public sector of a country
as a whole is usually analyzed in comparison with the efficiency of the public
sectors of comparable countries. In this case, efficiency would be presented as
the ratio between costs and results in one country compared to other countries.
If the results in a given country are better, with same or lower costs, it is
2021).
Public sector efficiency
An inefficient public sector provides its services at higher social costs than
justified, as measured by public expenditure. The implications of an inefficient
public sector on a country's macroeconomic performance are negative
manifold:
Higher public expenditures must be offset by higher public revenues, which
implies higher tax coverage and tax burden on households and private
enterprises. Consequently, a greater tax burden is manifested through a
48
reduction in the current income of taxpayers made up of citizens and the
e
If the compensation of high public expenditures is postponed for the future,
there are high fiscal deficits that accumulate over time and increase the
country's public debt, which in the long run financially destabilizes the country
and can lead to bankruptcy (Verstraete, 2020; Xing & Yang, 2020 ).
Another aspect of optimizing the size and structure of the public sector is its
effectiveness. Unlike efficiency, which measures the public sector to work in
an optimal way, the subject of effectiveness analysis is the efficiency of the
public sector in performing
When analyzing the performance of the public sector, one of the things that is
desirable to consider is the difference between products and services produced
and distributed by public sector units and the end result that these products
have on society. For example, in education, the product of the public sector is
an education service that can be measured by enrollment rate, average number
of students, etc. On the other hand, the final outcome of public sector
engagement in education is manifested through general level of student
education, which can be measured by student success in standardized
Conclusion
The public sector represents an asset by which each state acts in the most
important areas of joint work and activities of all its citizens. The ultimate goal
of the existence of the public sector is to meet the needs of the wider
community, i.e. to protect the interests and rights of individuals who make up
the community.
As already mentioned, the level of state activity in social and commercial
activities varies depending on the political system. In democratic societies, the
competencies of the public sector represent a problem of a purely political
nature, i.e. it is a product of the political will of the group to which the
majority of voters have entrusted their trust in the election process. However,
even in countries with longest democratic traditions, various forms of lobbying
are present, which is why it is possible for state spending to be allocated even
where it is not in the public interest.
Literature
1. Afanasyeva E., Jerow S., Lee S.J. & Modugno M. 2020. Sowing the seeds
of financial imbalances: The role of macroeconomic performance. Journal
of Financial Stability, 100839,
49
2.
-16.
3. Azofra V., Rodríguez-Sanz J.A. & Velasco P. 2020. The role of
macroeconomic factors in the capital structure of European firms: How
influential is bank debt?. International Review of Economics & Finance
69: 494-514,
4.
zemljama Evrope, 2014. url: http://libek.org.rs/uploads/2014-10-22-
analiza-efikasnosti-javnog-sektora.pdf.
5. 8. Economic effects of integrated marketing communications:
The case of food products. Ekonomika poljoprivrede 65(3): 985-994.
6. uzeli I. Interna revizija u funkciji unapre enja finansijske discipline u
javnom sektoru Federacija Bosne i Hercegovine. Magistarski rad. 2016.
http://univerzitetpim.com/wp-content/uploads/2016/11/Ekonomski-
fakultet-%C4%90uzeli%C4%87-Ismet.pdf.
7. :
7-16.
8.
Akcionarstvo 26(1): 26-34.
9.
-63.
10. &
: 41-49
11. Mitro Promene, izazovi i spremnost
zemalja u tranziciji za nove razvojne trendove. Vojno delo 71(2): 224-243.
12.
Vojno delo 70(2): 394-
413.
13.
: 15-26
14.
tekovinama Evropske unije - ka
poljoprivrede 63(3): 891-904.
15.
poslovi samouprava, Beograd: Evropski pokret u Srbiji. 2003.
50
16. Verstraete G., Aghezzaf E.H. & Desmet B. 2020. A leading
ed framework to automatically generate
tactical sales forecasts. Computers & Industrial Engineering 139: 106169.
17. RZS. Sektorska klasifikacija institucionalnih jedinica. 2018. url:
http://www.stat.gov.rs/media/3300/2018-05-31-metodoloske-
napomene.pdf.
18. Xing K. & Yang X. 2020. Predicting default rates by capturing critical
transitions in the macroeconomic system. Finance Research Letters 32:
101107.
19. https://www.monstat.org/userfiles/file/GDP/publikacije/INSTITUCIONA
LNI%20SEKTORI_2010-2011_Rev2.pdf.
20. RZS. Sektorska klasifikacija institucionalnih jedinica. 2018. url:
http://www.stat.gov.rs/media/3300/2018-05-31-metodoloske-
napomene.pdf.
Datum prijema (Date received): 24.08.2021.
Datum prihvatanja (Date accepted): 03.10.2021.
ResearchGate has not been able to resolve any citations for this publication.
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