Economy of Ukraine (Russian) - - СОДЕРЖАНИЕ -

(на ан­глий­ском язы­ке)

HEYETS VALERII “Endogenization of the economy development in the aspect of equality of rights relations among the state, business and voting subjects” – There is a struggle in Ukraine between the collectivism of the past and the individualized activity of the present with a propensity for opportunistic behavior. This profound contradiction is historically predetermined, and, in fact, it has set a higher level of social embodiment in formation of extractive institutions. Thus, both society and the state face the task of harmonizing the activities of public institutions, church organizations, parties and movements, as uncontrolled markets are devastating in their consequences because they lack moral foundations.

In Ukraine, in the last three years, after a significant drop in the economy and implementation of austerity policy, 51,1% of the population has a level of income below the subsistence level. Possibilities of overcoming this destruction in the incomes of Ukraine’s population are significantly limited, since this negative tendency is logically linked to the relevant global processes, which in 20 years can deepen the inequality both in income and in terms of property control. As today’s experts on poverty issues say, it will be even more unfair to humans, and, accordingly, “the worlds of billions of poor” will be formed. And, as repeatedly stressed, this will be a characteristic feature of the “new Middle Ages”; since it is widely acknowledged that those who have property or capital grow up much faster than those who do not have such property.

The current institutions of the state and government, including in Ukraine, are generally characterized by a low level of trust in society. Consequently, without close cooperation of the state with civil society organizations, successful reform of the domestic economy and conduct of active economic policy, if possible, it is only due to too slow progress, and even under the pressure of external factors not always realized in national interests. That is why the principles of “developing protectionism” in line with the national economic interests, which are under serious exogenous pressure, need to be updated in Ukraine. Therefore it is necessary to make a transition to a stable trajectory of long#term economic growth on the basis of endogenization, thanks to which the role of dominating now exogenous factors in economic development will decrease.

MAMUTOV VALENTYN “Interest and self&reinforcement” – Some examples of development of Ukraine’s high#tech industries, such as rocket and space and aircraft building, are considered. At the same time, the emphasis is on strengthening production cooperation with the most developed countries of the world, in particular the EU, in implementing the most ambitious projects with simultaneous adaptation to relevant standards, technologies, etc. This meets interests of our state and interests of society: activation in high#tech sectors of the economy has a multiplier effect of acceleration in related spheres and industries – from increase in demand for metallurgical products to intensification of scientific research in dozens of spheres.

It is noted that in the presence of external factors unfavorable for the industry of Ukraine (rather painful and debatable topic of the break#up of cooperation ties with the Russian Federation is raised), successful reorientation of cooperative ties can in the long term become an impetus for steady development under condition of stability of the legal system. Such stability is achieved by compacting and codifying legislation and increasing the volume of the core act of economic legislation – the Economic Code, which corresponds to the practice of rulemaking in many EU countries. Some examples of codification of economic legislation are given. Structure of such codes allows evaluating the structure of economic legislation of

these countries. During formation and codification of economic legislation, a very large group of specialists in the field of legal regulation of economic (including entrepreneurial and commercial) activities has formed, which can contribute to the achievement of the above results and development and improvement of legal regulation in this area.

Despite all the complexities of academic science, the corresponding potential is not lost. Harmonization of the norms of Ukrainian economic legislation with the relevant norms of European and international legislation is an important task for our entire state. Concernment of implementation of this direction must be supported and encouraged in every possible way.

DANSHYNA YULIIA “Network interaction of the subjects in the governance of the system of administrative services provision”

– Network interaction in the governance of the system of administrative services provision is a process, conceptually directed to formation of a conscious and effective interaction of the subjects of services provision not only with the subjects of applying for services, but also with ordinary citizens of Ukraine. Among the tasks of the state policy coordinating the solution of this issue, it is quite urgent to intensify the involvement of citizens in the governance process.

However, becoming and formation of the network interaction in the governance of the system of administrative services provision is hampered by a number of problematic aspects, namely: (i) low level of public confidence in the state sector; (ii) shortage of effective civil society institutions; (iii) weak introduction of e#governance activities; (iv) absence of any signs of support of the emerging civil society from the state and business sectors; (v) lack of a clear understanding of allocation of responsibilities and duties in the relationship.

Abstract#logical analysis of theoretical and methodological foundations of network interaction is the methodological basis of the research. Also, for theoretical generalization and recommendations on formation of network interaction, scientific recommendations of Ukrainian and foreign scientists on the need to implement subject#subject relations in the governance of the system of administrative services provision were used.

Studies have allowed to assert that a number of problems hinder the parity interaction between the subjects of governance. In addition, civil society is not considered by the public sector as a source of methods and means for improving the governance system, in particular, the governance of the system of administrative services provision.

The network interaction of the subjects will allow implementing relationships aimed at continuous improvement of management activities in the system of administrative services provision and the entire system of public administration as an integrated management system.

LUNINA INNA, BILOUSOVA OLENA “Reforming the corporate income tax in the context of ensuring the sustainability of public finances”

– To ensure the long#term sustainability of Ukraine’s public finances under conditions of a high level of public debt and significant payouts for its servicing, formation of prerequisites for economic growth and tax revenues of the state is required. The problem aspects of the corporate income tax in Ukraine are researched. Attention is focused on shortcomings of legal regulations of the tax base definition, which resulted in a significant reduction of budget revenues from corporate income tax, as well as their share in the total amount of revenues and mandatory payments of the general government sector (the state tax revenues) in 2014– 2017.

Based on the results of generalization of Estonia’s experience on use of the tax on withdrawn capital under conditions of Ukraine (when not the tax rates, but corruption and

ineffective bureaucracy hinder economic growth), the authors conclude that the introduction of this tax is inexpedient. After all, the main consequence of such a reform of the corporate income tax will be growth of the budget deficit and public debt. According to the international experience, processes of reducing the corporate income tax have to accompany the unification of norms to form the income tax base to prevent abuses and improve the efficiency of financial control. It is determined that the necessary prerequisites to ensure the sustainability of public finances in Ukraine are: (i) to counteract the evasion from payment of corporate income tax by establishing the legislative restrictions on the recording of expenses when determining the tax base for all taxpayers, and (ii) to simultaneously introduce tax incentives for research, development and innovation#investment activities of enterprises.

BONDARUK TAISIIA, VINNYTSKA OKSANA “Assessment of the status of decentralization of Ukraine’s local budgets”

– Decentralization of power is a necessary condition for the formation of effective local self#government. Therefore, it is important to deepen theoretical and methodological principles for assessing the status of decentralization of Ukraine’s local budgets. It is determined that the assessment of the status of decentralization of local budgets requires the use of a set of indicators that would fully characterize the financial decentralization. It is proposed to allocate the assessment indicators of the status of decentralization of local budgets according to three criteria: influence of decentralization on formation of local budget revenues; decentralization of local budgets according to budget classification; dependence of local budgets on interbudgetary transfers.

A system of separate indicators that can be used to assess the status of decentralization of local budgets is proposed, and criteria for assessing the impact of decentralization on the formation of local budget revenues are determined in accordance with the proposed method of calculation. Based on the results of analysis of some assessment indicators of the status of decentralization of local budgets, it is determined that such an analysis does not provide a general idea of the status of their decentralization. Therefore, the authors calculated the indicators by individual criteria using weight coefficients.

It is substantiated that parameters of the linear trend model for the criteria for assessing the impact of decentralization on formation of local budget revenues show a high degree of certainty of their decline process. In recent years, there has been a tendency to reduce the criteria for assessing the impact of decentralization on formation of local budget revenues. The authors determined an unstable tendency of changing the criteria for assessing the decentralization of local budgets according to budget classification. At the same time, the parameters of linear trend model for sub#indices of the criteria for assessing the dependence of local budgets from interbudgetary transfers show a high degree of certainty about their downward trend.

In the course of the research, a system of indicators was developed to determine the status of decentralization of local budgets. Approbation of the methodology for calculating the integral indicator confirmed the possibility of its use for analyzing the status of decentralization of local budgets.

KUZNYAK BOGDAN “Organic production is the basis of health of people and nature” – The search of forms and methods of promoting the development of organic agriculture, consumption of organic products and its distribution through the long#term marketing concept is considered. Life expectancy in Ukraine in recent years has decreased by 10 years compared to European countries. The natural fertility of the land is gradually deteriorating due to excessive use of mineral fertilizers, pesticides, toxic chemicals and

other negative factors. This led to destruction of the fertile soil layer and its most valuable component – humus, the content of which has decreased from 13#14% to 3#5% over the past 100 years.

This significantly worsened the living conditions of soil microorganisms ensuring the activities of organic substances and nutrition of agricultural plants and reduced the quality of grown produce, which adversely affects the health of people and nature.

The way out of this difficult situation is the transition to organic farming, which at the present stage is increasingly becoming a global strategic direction.

The basic principles of organic farming are: (i) refusal to use mineral fertilizers and chemical means of plant protection (pesticides); (ii) use of organic fertilizers and siderates (“green fertilizers”, which fill the soil with organic mass and destroy weeds); (iii) surface cultivation of the soil (not more than 11 cm) sufficient for fluffing its upper layer, protection against weeds and microform balance; (iv) provision of scientifically sound crop rotation, which ensures fertility of the soil and control of weeds and pathogens.

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