DEVELOPMENT OF A LAW-BASED ECONOMY IN TERMS OF THE UKRAINIAN SYSTEM OF FORMATION OF POPULATION INCOMES: REALITY OR FICTION?

Author
, associate professor, Kharkiv, Pushinska, 77

In heading

 Economic theory of law;

Signed print

 11.09.2015

Issues number

 2015 - № 3 (22)

Page

 67-76

Type of articles

 Scientific article

Code UDK

 330.341.2;330.564.2

ISSN print

 2411-5584

Abstract

 Problem setting. Within a quarter of a century of post-soviet transformation in Ukraine a law-based economy hasn’t been formed. Is this feasible now?
Recent research and publications analysis. An issue of a constitutional economy and its development on the basis of a transformational system is considered in scientific papers of H. M. Andreieva, P. D. B arenboim, H. A. Hadzhyiev, S. Yu. Danilov, P. O . Dobrodumov, A. V . Zakharov, D. V . Kravchenko, V. D. Mazaiev, V. O . Mau, O. V . Skupinskyi, etc. Their researches don’t indicate basic frameworks of law-based economy development related to phenomena and processes in the field of population incomes.
Paper objective. The paper objective is to consider the modern position and prospects of development of the law-based economy in Ukraine in terms of a current system of formation of population incomes.
Paper main body. The current system of formation of population incomes blocks development of the law-based economy, since it is oriented towards non-market competition methods, informal and non-legal practices, and receiving non-market forms of incomes, namely rent-seeking. The system requires to be reformed on the basis of the following actions: expansion of international economic integration; restriction of possibilities of using authorities, which are empowered by the state, for personal purposes; implementation of a system of total control over incomes, assets, and expenses of government officials and politicians; decrease of areas of economic activity, which conduces to development of corruption relationships between powers and business; extermination of corruption social relationships; significant
decrease of possibilities of oligarch influence on politicians and government officials.
Conclusions of the research. Development of the law-based economy in terms of the Ukrainian system of formation of population incomes is fiction rather than reality: the deep sense of the system doesn’t change. Separation of the business and the state and formation of a competitive environment are essential steps for the purpose of changing the system.

Keywords

 Constitutional economy, law-based economy, regulation of population incomes, separation of business and state, development of a competitive environment.

Reviewer

 Shevchenko L. S., Doctor of Economic Sciences, Professor, Yaroslav Mudryi National Law University, Kharkiv, Ukraine.

External reviewer

 Shkodina I. V ., Doctor of Economic Sciences, Associate Professor, head. the Department of economic theory, Kharkiv training and research Institute of state higher educational institution «University of banking», Ukraine.

Article in PDF

 3 67-76

Bibliography

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03.07.2015