Systemic Transformation of Ukraine’s National Economy

Abstract

The article explores the current conditions of the development of Ukraine’s economy, accompanied by a significant decline in industrial production and in the indicators of financial-credit sector, deterioration of the competitiveness of real sector, technological backwardness, exports of products oriented to raw materials, high levels of corruption of the State institutions. The main systemic threats that hinder Ukraine’s sustainable socio-economic development have been researched: critical inhibition of economic growth; high level of shadow economy; excessive debt load; low level of investment attractiveness and innovation activity; non-rational structure of foreign trade. An analysis of the dynamics of shadow economy, the aggregate government debt, the main causes of the unfavorable investment climate and the commodity structure of foreign trade is carried out. The problems of transformation of the national economy have been outlined, and the priority tasks related to economic changes in Ukraine have been proposed. It is noted that despite the acceleration of economic growth in Ukraine in 2018-2019, uncertainty and increased external and internal risks have not disappeared, so further economic growth requires reforms in numerous directions. An effective mechanism for transforming Ukraine’s economic system has been proposed, which is focused not on outdated patterns of the 20th century, but on new institutional models. Promising directions of transformational public policy include a complex of measures to ensure conditions for the formation of modern financial-economic, organizational-institutional relations between the State and business entities, build-up of investment potential, activation of Ukraine’s innovation policy.

Keywords

• transformation
• economic system
• problems of economic transformation
• shadow economy
• corruption of power
• debt load
• investment attractiveness
• innovation activity