STAGNATION OF UKRAINIAN ECONOMY: INCOMPLETENESS OF REFORMS OR A WELL THOUGHT-OUT POLICY?

Abstract

The article gives a description of Ukrainian economy, changes in its structure and social position of population as a result of neoliberal economic policy. It is grounded that the causes of today’s crisis state are not only in the outlined theory, its economic policy, legal infrastructure (laws, instruments of their maintenance, customs), but also in those realities that were characteristic of the structure of the economy of our republic and due to its long-standing inter-republican connections as part of a single national economic complex of the USSR. If Ukraine continues to use a neoliberal theory with an adequate policy, then the country will not only remain the periphery of the raw material type with a narrow internal market and a strong dependence on exports for the capitalist economy, but also turn into a “black hole” of chaos concentration.
The author shows that Ukraine is entering the market system of coordinates by trial and error, as well as by conducting the questionable experiments for many years. The author substantiates the conclusion that GDP growth is directly dependent on the rate of investment in fixed assets, which is at an extremely low level in our country. For sustainable economic development, it is necessary to increase investments to 20-25% of GDP. To do this, Ukraine needs to create a favorable investment climate for both a foreign investor and an internal one. It is necessary to abandon the blind copying of the experience of other countries, including that in the sphere of building a market. Given the mentality of our people, its history and traditions, it is expedient to form the market on the basis of various non-exploitative forms of ownership: collective labor form, individual one and state one.
In author's opinion, it is possible to overcome social and economic crisis in Ukraine provided that economy, politics and ideology are targeted at a person with rational needs and high moral and ethical standards. The main directions of activity of the state, which can change the present situation and overcome the further deepening of the crisis, are determined.