Price regulation of socially important products in the context of sustainable development

Abstract

A current direction for the development of the world economy is the sustainable economy. Sustainable development implies the rational use of natural resources for all types of production that would ensure compliance with the principle of balance between economic, social and environmental aspects. Thus, governments concerned with sustainable country development adapt the decision-making process to the principles of sustainability. In this context, making decision about regulating prices of social important products implies responsibility for both the final beneficiaries of products (social aspects) and their producers and traders (economic aspects). In particular, decision-makers need to be cautious when the subject of the decision is some of the first necessity products that cover the physiological needs of food and living of low income social layers. Adopting balanced regulations will allow to reduce the economic differences between social layers, contributing to the formation of both favourable business environment and the social security for the population, which will increase the quality of life in a state.