CREATING A CONTROLLED MODEL OF ACCELERATED DEVELOPMENT ON A NEO-INDUSTRIAL BASIS

Abstract

The set of problems that arose in the process of national economy’s reproduction and hinder the construction of a new development model has been determined. It has been shown that under the existing resource constraints, the most realistic scenario is the evolutionary trajectory of new industrialization, which is based on the principles of expanded reproduction. The causes behind the emergence of existing imbalances, which are a form of manifestation of narrowed reproduction, have been analyzed. The study of the structure of domestic GDP use has shown that domestic consumption in Ukraine, despite its high share, does not become a driver of economic development since a considerable part of the population's demand is covered by imports.

The paper discusses the postulate that the basis of expanded reproduction should be, first of all, the machine-building complex, which is able to assimilate modern innovations as much as possible and become the starting point for structural transformations. It is shown that the restoration of industrial capital is possible only on the basis of the machine-building complex. It is proved that Ukrainian economy is in the state of unstable functioning due to the growing imbalances between internal demand and supply, as well as the lack of reproductive industrial cycle that would have ensured the internal relationship between the renewal of industrial capital and economic development. As the study indicates, such an internal relationship should be the result of a new industrialization, which not only generates a cyclical form of the reproductive process’s movement, but also becomes a driver of economic development.

For the successful implementation of the new industrialization model, it is necessary to develop a strategy for creating intermediate institutions. These are non-standard institutions that can be combined into a system of interactive growth management. The latter should include three elements: system of interactive (indicative) planning; national innovation system; system for ensuring the coordination of different types of economic policy. All these three elements have yet to be created.