Економіка, управління та адміністрування (Dec 2019)
Accounting and evaluation of Ukraine’s land potential in world statistics: global prospects and warnings
Abstract
An important factor in the formation of a positive image of a country is the full representation of assets that form its economic potential in the language of figures. For Ukraine, such an asset is primarily agricultural land. The article is devoted to solving the issue of reflecting the land potential of Ukraine in financial and statistical reporting from the point of view of the prospects for its inclusion in the global economic statistics system to improve the image of Ukraine in the world. The authors adduce the reasonable warnings regarding ignoring the issue of accounting for land in macroeconomic statistics and the consequences of such neglect when the agricultural land market in Ukraine will open. It is proved that the value of land along with other fixed assets forms the value of fixed capital in Ukraine. The place of land assets in the system of national accounts is disclosed. It is established that agricultural land today does not have a reliable assessment and full reflection in the financial statements. This directly affects the value of the national wealth of Ukraine, which is represented in the system of national accounts, which are the main source of information about Ukraine in the world. The calculations made by the authors are a global warning about the free land market. After all, the capitalization of multinational companies indicates that they have enough resources to buy all Ukrainian lands, and thus, deprive Ukrainian farmers of access to land resources. Along with this, it is noted that the free land market in the current economic conditions will not provide an adequate price for land and at the same time, a new productive investor since the market will determine its activity and price based on the current profitability. The activity and higher price for the seller is possible only from the oligarchic buyer, a potential speculator of the land or a buyer who considers the land as a treasure.
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