STATE AS A SOURCE OF INEQUITY IN THE PROCESS OF REALIZATION OF SOCIAL AND ECONOMIC RIGHTS IN UKRAINE

Author

, associate professor, Kharkiv, Pushinska, 77

In heading

Economic theory;

Signed print

24.10.2014

Issues number

2014 - № 4 (19)

Page

59-68

Type of articles

Scientific article

Code UDK

338.242.4:330.161

ISSN print

2218-8010

Abstract

Problem setting. A core aim of social state is the achievement of absolute equity of rights for all social classes in general and each person in particular. In Ukraine, as a constitutionally determined social state, the realization of the determined above aim becomes extremely actual. Recently, the governmental interference in economic processes has not decreased interclass conflicts and social tensions, but has resulted in increasing inequity regarding business entity rights. Moreover, the state power institute acts as a generator of unlawful practices.
Recent research and publications analysis. In economic theory a non-optimal state influence on social processes as well as on the inequity increase because of government interference has become an object of research in working papers of M. Fridman, J. Bukenen, F. Hayek. But the mentioned above authors mainly research a governmental influence on the social and economic (property) inequity rather than on the inequity of realization of social and economic rights.
Paper objective. The aim of the research refers to the determination of reasons of state transformation into a source of the inequity of realization of social and economic rights, the presentation of mechanisms of social inequity increase in Ukraine, the related risks evaluation and steps of their decrease substantiation.
Paper main body. Although the core aim of social state is the guarantee of equity of rights for all social groups, the activity of domestic institutes of state power, on opposite, turns into a source of the inequity of realization of social and economic rights. The main reason of such process is an ineffective institutional environment, including failures of a property institution (the concentration of property rights within the small amount of owners, the use of an state power as an instrument of the property right legalization and the restriction of free access to commercially attractive types of a business activity, the difficulty of the
provision of public control over the government corporate right realization). The most common mechanisms, by which a government increases the inequity of realization of social and economic rights, are as following: the implementation of unlawful practices of business activity regulation; privately owned entities are supported on account of public owned enterprises; the illegal restrictions of certain entity rights based on a selection principle; the direct prohibition of realization of legally received rights; the creation of certain legislative conditions for certain types of business activity.
Conclusions of the research. As a consequent of the inequity of realization of social and economic rights of entities the main features of attitude of the society to the state government are as followed: the total distrust to the state power institution, the expansion of informal institutions, financial flows shadowing; the absence of motivation to increase the production efficiency; the failure to stimulate investments. With regard to the stated above, the use of government institutions for meeting clannish interests must be restricted. Thus, to fulfill the determined above aim, deep social and economic reforms directed to business activity liberalization should be implemented.

Keywords

Social and economic rights, inequity, governmental interference, redistribution, property, state power institution.

Reviewer

External reviewer

Article in PDF

4 59-68

Bibliography

none

Code DOI

This post is also available in: Ukrainian

05.09.2014