Naidenov N.D.

Purpose. The instability of the Russian economy and its slow growth rate indicate that the government does not fulfil its basic regulatory functions of ensuring competition. With this the government in our country is trying to widely participate in the economic activity in virtually all sectors. The current model of economic management has been named «manual control». In this management model, the efficiency of effective control methods of competition regulation is considerably lower. Scientific novelty. In the article the arguments in favor of the new model of economic management are proposed based on the competition regulation improvement, introduction of risk management practices and human capital development in public management of economy. Competition means that a manufacturer produces what is sold, consumer incentives are balanced with their rewards. Competition supports efficient owners and eliminates the inefficient ones from the exchange. Results. It is important to note that in the period following market reforms the public administration system has undergone three stages of development. At the first stage, in the 90-s, the public administration system was characterized by the loss of adequate response to the state of society and the economy, immense belief in market forces, reduced output, deindustrialization. At the same time improvement of tax administration should be noted from the positive side. At the second stage, in the 00-s, the stability of government has been steadily increasing, a parade of sovereignties was done away with, the system of budgetary and economic planning started to recover, production volumes, exports and incomes were growing. At the third stage the 10-s of the current century, public management of the economy depleted the potential resources of raw material management model of economic growth. To date, there is a need for economic management to transfer to the new structure and management methods relevant to the innovation model of economic growth. First of all, these are priority development zones, innovation clusters and innovation centers.