Particularities of public authorities and business interaction under institutional changes

Abstract

In the context of institutional changes caused by the formation of a mobilization economy, issues of interaction between government and business come to the fore. The difficult economic situation places increased demands on the quality of public administration and its ability not only to deal with current shocks, but also to create long-term incentives for development. In this context, the dialogue between the State and the business community is no longer a formal procedure and is becoming a key mechanism for ensuring economic security and finding ways to achieve sustainable growth. The article offers the author's interpretation of the scientific concept of "institutional change". The key factors and sources determining the dynamics of institutional changes are highlighted. Various approaches to how entrepreneurs perceive and evaluate their relations with government authorities are considered. The article describes three main types of business reaction to government policy: reactive, interactive and proactive. To assess the effectiveness of business-government relations in the Russian Federation, the B2G Index was analyzed, which reflects the state of the segment of business interaction with government customers. Among the key features of the interaction between government and business during the period of institutional changes, the article highlights the transformation of the very nature of the dialogue between business and government, the growing importance of the institutional environment, the increasing complexity of the mechanisms of business influence on government, the increasing role of non-state actors, and the aggravation of institutional risks. It is concluded that trust will be crucial for building effective relations between business and government.