Baltic Journal of Economic Studies (Nov 2016)
PRIVATIZATION IN UKRAINE IN THE CONTEXT OF PUBLIC-PRIVATE PARTNESHIP PROCESSES
Abstract
The purpose is the study of aspects of privatization in Ukraine in the context of the partnership between the public and private sectors of the economy, problems and assessment of privatization process effectiveness, steps and error analysis when selecting privatization models, and special aspects of programs implementation considering the existing socio-economic and political factors in Ukraine. Methodology. The study is based on the relevant scientific and regulatory and legal framework of public sources with due account for the current state of affairs and recent theoretical developments in this field. Results showed that the current analysis of privatization process practice in Ukraine highlights the existence of its vulnerability factors that, on the one hand, are caused by the legislation imperfection and, on the other hand, by lack of efficiency of public administration and control mechanisms in this field. Practical implications. Privatization is one of the key elements of the national economy development and market reforms implementation. Its further implementation into the market economy development in Ukraine should be based on the gained experience and the obtained results. Value/originality. After analysis of the most popular privatization methods in other countries, examining the tasks, specifics and methods of privatization in Ukraine at its different stages, the author came to the conclusion that a number of important factors should be taken into account in order to avoid or minimize certain negative effects of privatization. The study revealed systemic contradictions in the process of privatization in Ukraine, including the spontaneity and inconsistency in shaping the goals and approaches. Moreover, the main goal of privatization, which is creating conditions for increasing the production efficiency, has not been achieved, and the expected intensification of the investment activity has not taken place as expected in the study. At the same time, the transition of state enterprises to private ones has failed to lead to their economic status improvement, and the principle of social justice has failed to be fully implemented during the state property redistribution process. The analyzed data shows that inefficiency of privatization in Ukraine is caused by the selected model. Ukrainian model of raising private capital for the economy development by privatization has too many flaws, which does not allow achieving the main objectives declared, resulting in a national commodity producer failing to meet the needs of the domestic market and to be competitive in the world market. In its turn, Ukraine desperately needs reforming ownership economic affairs in the condition of the economic crisis. The author offers practical steps for changing the privatization model and adheres to the position that transferring assets within the framework of public-private partnership could become the model of privatization processes for Ukraine that would allow combining the interests of society, government bodies and private sector, as well as increasing efficiency of the economy development strategy of Ukraine.
