On the constitutional model of the Russian economy

Abstract

The article focuses on the analysis of the constitutional model of the Russian economy, including its conceptual underpinnings, fundamental principles, and overall design. Particular attention is paid to the problem of so-called “conflicting values” that are equally recognized by the constitutional  foundation of the Russian economy. For example, the values of economic freedom and the  usefulness of state regulation, and the importance of supporting competition and guaranteeing of  social justice, are discussed as examples of conflicting principles. The authors conclude there is no  irresolvable conflict. These equal constitutional values (i.e. the principles of economic freedom and  the social nature of the state) create a “corridor of opportunities” which the state’s socioeconomic  policy is balancing within in order to contribute to stability and sustainable development. It is noted in the article that the welfare state constitutional model becomes ineffective in modern conditions.  In practice, excessive state social commitments lead to the exhaustion of the sources of growth,  and to the slowdown and deterioration of human capital. The implementation of the concept of the  workfare state is considered as the most promising. Furthermore, the authors show that the idea  of the “neutrality” of the Constitutional Court in an assessment of economic regulations facilitates  unlimited state expansion into the economy, provokes economic inequality and the decline of  guarantees of economic liberties, and, as a result, leads to an economic slowdown.