Municipal Political Economy

Abstract

During the first two decades of the XXI century economic life and economic theory were established according to the models that were suggested by liberal economists who were convinced of the correctness of globalist ideology. Crisis 2008–2013 development denied the value of these models. Crisis, sanctions against Russia, neocolonial structure of the world economy degradation induce to search new socio-economic equilibrium points and to return to rejected economic theories, to political economy in particular. The article is written on the basis of the experience of teaching the discipline “Economics of public sector”. The aim of the work is to show that economic practice, especially at the regional level, has ceased to correspond to what is offered by the modern economic science set out in textbooks. It is contemplated that methodological area of “political econo-my”, which comprises broad social context, political aspect in the exclusively economic agenda, will draw near-er to practice the conclusions and generalizations of economists. Municipal economy, from the point of view of political economy, is included directly through agglomeration economies into national economy development, changing it from the inside.