The economic function of state paternalism: the preoduction of patronized goods or investments in development?

The economic role of the state and the functions of state paternalism have long been a subject of controversy. Therefore, two main areas of research on this issue can be distinguished: the problem of state participation in the production and distribution of certain benefits, and the problem of state participation in the regulation of economic processes. In the theory of patronized goods, it is concluded that the state does not simply replace the market in the provision of certain goods, but represents certain public interests that are not reducible to individual ones, and serves precisely to ensure them. In that way, the state ensures the development of the economy and the achievement of social goals. The next step in the study of the functions of the paternalistic state is to find a common basis, both for the processes of providing patronized goods, and for the participation of the state in the regulation of the economy. Based on the concept of the “developmental state”, we can conclude that such a common basis is the need for the participation of the state in providing the necessary conditions for the reproduction of the economy and society. Such a need arises due to the high level of socialization of production and the gradual disintegration of market relations, which, due to their automatic action, are no longer able to provide either the conditions for reproduction or even market equilibrium.