POST-WAR ECONOMIC RECOVERY: INTERACTION BETWEEN THE STATE AND PRIVATE CAPITAL

Author
, Doctor of Science (Economics), Professor, Professor of the Department of Economics, Kyiv
, Applicant for the educational-scientific degree Doctor of Philosophy of specialty 051 “Economics”, Kyiv

In heading

 Economic theory;

Signed print

 07.09.2023

Issues number

 2023-№3 (54)

Page

 6-21

Type of articles

 Scientific article

Code UDK

 338.246.8:3.071.2(477)

ISSN print

 2411-5584

Abstract

 Problem setting. Generalizing the trends of modern world development in the context of analyzing the historical trajectory necessitates taking into account the experience of the past in order to find opportunities for effective implementation of positive experience in the post-war reconstruction of the national economy. In the context of addressing a number of challenges facing Ukraine as a result of armed aggression and the destruction of its economic potential, it is important to systematize and generalize the experience of European countries in rebuilding after the war. At the same time, the economic successes of many countries in post-war recovery, due to institutional upsurge in socio-economic development, were primarily realized under national plans, based on an effective strategy for implementing public policy and using the synergies arising from the interaction of the state and private capital.
Recent research and publication analysis. The issue of post-war reconstruction is of increasing interest to scholars and practitioners, given its prospects and practical orientation. In a systematic study by scientists from Indonesia, the author reviews the source base for analyzing the theoretical and conceptual foundations of public policy in the modern discourse on determining the impact of the State on social development. An article by scientists from the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine is devoted to important aspects of disclosing the vector of post-war economic recovery on the basis of low-carbon development.
Danylyshyn reveals the fundamental principles of changing monetary policy in wartime based on the use of tools by the central bank to expand the money supply. The fundamental study edited by Gorodnichenko, Sologub, and Weder di Mauro identifies the directions of Ukraine’s postwar reconstruction in the context of using the potential of the national labor market, international trade, foreign direct investment, anti-corruption policy, and the restoration and development of the financial market. An attempt to offer an analog of the Marshall Plan for Ukraine isthe study, which contains recommendations for the governments of Ukraine’s donor countries and international institutions.
Ukrainian scholars Borodina and Lyashenko study the world experience of implementing postwar economic recovery programs. The authors pay considerable attention to the historical aspects of the post-war development of European countries, as well as Japan, Korea, Singapore, and a number of others. The scholars draw attention to potential financial and institutional aspects of the Ukrainian economic recovery. Nebrat analyzes in depth the formation and implementation of the US political and economic doctrine in the postwar reconstruction of Europe through the prism of historical lessons for our country. The scientific report of scientists from the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine attempts to substantiate the conceptual and applied principles of the plan for the post-war recovery of the Ukrainian economy, the implementation of which allows to combine the efforts of government agencies and private capital in a holistic vector of sustainable socio-economic development. Salikhova and Krekhivskyi reveal the place of industry in the postwar recovery policy.
Paper objective. The purpose of the article is to analyze the directions of post-war economic recovery through the prism of interaction between the State and private capital and to substantiate the directions of its implementation in Ukraine.
Paper main body. In the context of aggravation of geopolitical, financial and economic risks, the issue of post-war economic recovery is becoming even more relevant, since its low dynamics threatens to lose the competitiveness of the national economy in global markets. The need to entrust the state with the functions of organizing, institutionalizing, stimulating and controlling the post-war recovery process is primarily due to the contradictory and multifaceted interests of economic actors. At the same time, the state’s influence on such recovery should be effective, balanced and justified from the standpoint of the functional division of powers of the state and private capital.
The restoration and modernization of post-war Ukraine will be one of the largest international projects since World War II. The scope of the reconstruction tasks and the potential capabilities of modern technologies create both unique challenges and a favorable basis for addressing them through balanced and informed decisions.
Ukrainian companies have shown great resilience in the face of a full-scale war. As a result of relocation to safer regions, businesses are working closely with local suppliers. This facilitates the establishment of new supply chains and stimulates the development of regional and local economies. Attention should also be paid to the main aspects of the impact of business entities on the formation of a sustainable and efficient economic system of the state. These include job creation, increased flexibility to introduce innovations and the latest technologies, stimulating the development of local and regional economies, and promoting social stability.
Conclusion of the research. Based on the study, it can be concluded that the implementation of the post-war economic reconstruction strategy can achieve the set goals only through the use of the potential of interaction between the State and private capital. Generalizing the experience of post-war reconstruction makes it possible to determine the prospects for its implementation in Ukraine. At the same time, it is necessary to formulate and implement institutional, legal, organizational, and managerial mechanisms for implementing national priorities.
Short abstract for an article
Abstract. The article analyzes the directions of post-war economic recovery in the context of interaction between the state and private capital. It is substantiated that, under conditions of severe restrictions, it is the state that has a leading role in the restoration of the national economy. An attempt is made to prove that the implementation of post-war economic recovery programs can achieve the set goals only if the efforts of state institutions are combined with the potential and capabilities of private capital. The author proposes conceptual approaches to the realization of the state’s functions in the post-war recovery of Ukraine’s economy and to providing a reliable basis for its entry onto the trajectory of sustainable development.

Keywords

 post-war recovery, national economy, public policy, entrepreneurship, private capital.

Reviewer

External reviewer

Article in PDF

 6-21

Bibliography

 1. Putera, P. B., Widianingsih, I., Ningrum, S, Suryanto, S., & Rianto, Y. (2023). Policy dynamics in contemporary public administration studies: A conceptual analysis. Public Policy and Administration, 22(1), 74–90. https://doi.org/10.5755/j01.ppaa.22.1.31435
2. Heyets, V., Podolets, R., & Diachuk, O. (2022). Post-war economic recovery of Ukraine in the imperatives of low-carbon development. Science and Innovation, 18(6), 3–16. https://doi.org/10.15407/scine18.06.003
3. Danylyshyn, B. (2023). Ensuring Macroeconomic Stability under the Martial Law. Science and Innovation, 19(1), 3–19. https://doi.org/10.15407/scine19.01.003
4. Gorodnichenkо, Yu., Solohub, I., & Veder di Mauro, B. (Eds.). (2021). Vidbudova Ukrainy: pryntsypy ta polityka [Reconstruction of Ukraine: principles and policy]. Center for economic policy research. https://cepr.org/system/files/2022-12/reconstruction%20book_Ukrainian_0.pdf [in Ukrainian].
5. Ronja, G., Kirkegaard, J., Kleine-Brockhoff, T., & Stokes, B. (2022). Designing Ukraine’s recovery in spirit of the Marshall plan: Principles, architecture, financing, accountability, recommendations for donor countries. GMF.
6. Borodina, A. O., & Liashenko, V. I. (2022). Povoienne vidnovlennia ekonomiky: svitovyi dosvid ta sproba yoho adaptatsii dlia Ukrainy [Post-war recovery of the economy: World experience and an attempt to adapt it for Ukraine]. Visnyk Ekonomichnoi Nauky Ukrainy – Herald of Economic Science of Ukraine, 1, 121–134. https://doi.org/10.37405/1729-7206.2022.1(42).121-134 [in Ukrainian].
7. Nebrat, V. V. (2022). Amerykanska polityko-ekonomichna doktryna u povoiennii vidbudovi Yevropy (druha polovyna 1940-kh – pochatok 1950-kh rokiv): istorychni uroky dlia Ukrainy [American political and economic doctrine in the post-war reconstruction of Europe (second half of the 1940s – beginning of the 1950s): Historical lessons for Ukraine]. Istoriia narodnoho hospodarstva ta ekonomichnoi dumky Ukrainy – History of National Economy and Economic Thought of Ukraine, 55, 9–38. https://doi.org/10.15407/ingedu2022.55.009 [in Ukrainian].
8. Institute for Economics and Forecasting. (2022). Vidnovlennia ta rekonstruktsiia povoiennoi ekonomiky Ukrainy: naukova dopovid [Restoration and reconstruction of the post-war economy of Ukraine: scientific report]. National Academy of Sciences of Ukraine. http://ief.org.ua/wp-content/uploads/2022/12/Vidnovlennja-tareconstrukcsja-povojennoji-economiky.pdf [in Ukrainian].
9. Salikhova, O. B., & Krekhivskyi, O. V. (2022). Derzhava u povoiennii rozbudovi industrii ta vidnovlenni ekonomiky: istorychni paraleli ta rekomendatsii dlia Ukrainy [The state in post-war industrial development and economic recovery: Historical parallels and recommendations for Ukraine]. Ekonomika ta prohnozuvannia – Economics and Forecasting, 4, 7–42. https://doi.org/10.15407/eip2022.04.007 [in Ukrainian].
10. Skrypnychenko, M. I. (2022). Makroekonomichni otsinky i prohnozy povoiennoho vidnovlennia ekonomiky Ukrainy [Macroeconomic estimates and forecasts of the postwar recovery of the economy of Ukraine]. Ekonomichna teoriia – Economic Theory, 2, 29–43. https://doi.org/10.15407/etet2022.02.029 [in Ukrainian].
11. Nykyforuk, O. I., Stasiuk, O. M., & Fediai, N. O. (2023). Sotsialno-ekonomichni multyplikatyvni efekty vid realizatsii velykykh infrastrukturnykh proiektiv dlia ukrainskoi ekonomiky [Socio-economic multiplier effects from the implementation of large infrastructure projects for the Ukrainian economy]. Ekonomika Ukrainy – Economy of Ukraine, 5, 23–34. https://doi.org/10.15407/economyukr.2023.05.023 [in Ukrainian].
12. European Business Association. (2022). Propozytsii Yevropeiskoi biznes-asotsiatsii shchodo vidnovlennia ekonomiky Ukrainy. https://eba.com.ua/wp-content/uploads/2022/12/EBA_VIDNOVLENNYA_EKONOMIKY_UKRAYINY.pdf [in Ukrainian].
13. Yehorov, I. Yu., & Kindzerskyi, Yu. V. (Eds.). (2023). Otsinka innovatsiinoho rozvytku ta strukturni transformatsii v ekonomitsi Ukrainy [Evaluation of innovative development and structural transformations in the economy of Ukraine]. Institute for Economics and Forecasting, National Academy of Sciences of Ukraine [in Ukrainian].
14. Bondar, N. (2023). Konkurentospromozhnist sfery posluh Ukrainy na svitovykh rynkakh [Competitiveness of the service sector of Ukraine on world markets]. Ekonomika ta suspilstvo – Economy and Society, 50. https://doi.org/10.32782/2524-0072/2023-50-59 [in Ukrainian].
15. Petrukha, S. V., Kosinskyi, P. M., & Shubalyi, O. M. (2022). Finansovo-ekonomichne stymuliuvannia staloho rozvytku pererobnykh pidpryiemstv u voiennykh ta povoiennykh umovakh [Financial and economic stimulation of sustainable development processing enterprises in war and post-war conditions]. Finansy Ukrainy – Finances of Ukraine, 12, 74–86. https://doi.org/10.33763/finukr2022.12.074 [in Ukrainian].

Code DOI

 https://doi.org/10.31359/2411-5584-2023-54-3-6

07.09.2023