ІNSTITUTIONAL TRAP OF OLIGARCHISM AND PROBLEMS OF ITS OVERCOMING
Keywords:
oligarchy, institutional trap, privatization of the state, property rights, strategic propertyAbstract
The attention is focused on problems of a transformation of the property relations in Ukraine. The necessity to follow the dualistic character in the reformation of the mentioned institution is emphasized. This concerns the changes in the access of subjects to bounded resources, on the one hand, and the redistribution of the income obtained in a society, on the other hand. In this connection, the incorrectness of a simplified approach to the reformation of the property institution as to the nominal replacement of state’s proprietor by a private is shown.
The drawbacks of the denationalization, which led to the formation of the oligarchy and the institutional trap of oligarchism, are clarified. The denationalization resulted in a strengthening of the connection of the power and the business, which caused a sharpening of the problem of soft budgetary limitations; formation of extractive political and economic institutions; autonomization of the state relative to the society; strengthening of the “front democracy”; privatization of the state by the oligarchy; formation of the phenomena of an unefficient unlegitime owner, “eroded” property rights, shadow economy, and seizure of the official state by the society.
The presence of such phenomena induces the threat of the formation of a stable unefficient long-term institutional equilibrium, deepening of the differentiation of a society by property, and increase in the risks of social cataclysms. The sources and types of nonproductive and “noninnovative” rental incomes of the oligarchy and the bureaucracy, which are caused by deformations of the property institution, are shown. The looks at the policy of deregulation of the business are critically analyzed with regard for the oligarchization and deformed property relations.
The reasons for the inefficiency of traditional tools of state’s economic policy concerning the stimulation of the activity of subjects in the presence of the “eroded” property mode and the oligarchy are indicated. The author gives some recommendations as for the versions of a reformation of the property institution, which are based on the principle of “democratization” of this institution, idea of the formation of a rational ratio of state’s and private forms of property, in particular, and the inclusive development of a society on the whole.
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