REGULATION OF STRUCTURAL CHANGES IN THE ECONOMY OF UKRAINE

Mykhailo Gedz

Summary

The purpose of the study is to develop suggestions to improve the government structural policies in the economic sphere.
World experience shows that during the restructuring the role of government in regulating the economy is growing. Its high effectiveness in practice has been proven by the approach, according to which structural changes in the country should start from primary industries. Export revenues of those industries are specifically used for the modernization of industries following next in the technological chain, and the expansion of high-tech production.
High and stable results were achieved in economic development of those countries, which pursued the policy of dosed liberalism. This enabled them to not only maintain the current level of domestic production, but also improve its international competitiveness according to the principles of dynamic (not static) comparative advantages.
The current technologies in Ukrainian government and public administration are not effective and seem to be inappropriate. Result of comprehensive liberalization and loss of control over economy was the lack of a meaningful strategy during the transformation of the national economy. Accordingly, at the level of individual enterprises in the region there is no strategic vision of the problems. Thus, during the years of reform there emerged an objective conflict between strategic management (which is missing) and operational management. This point of view makes it impossible to answer the question, which of the many options offered by structural reform has a historical perspective, also this point of view contradicts to all experience about ways to get out of structural crisis.
Studying the experience of implementation of structural change in many countries has shown that despite the theoretical recognition of monetarism as the primary and most effective means of resolving most of the economic problems, and despite the long and strong market traditions in most developed countries, during the period of structural changes and the formulation of targeted structural changes, the role of state becomes more significant, the government structural policy is actively used, the main objective of which is to accelerate the transition from recession of production to growth and improve national competitiveness at the global level.
The main areas of mechanism of structural policy implementation in Ukraine should be: 1) optimization of sectoral and technological structure of the economy 2) providing progressive structural changes by means of organization of investment breakthrough. Only in terms of the investment boom by creating own innovative products and supporting demand for those products, there may be progressive structural changes.
The efficient implementation of structural changes in the economy of Ukraine, which is a set of measures aimed at restoring the sphere of material production and diversification of the real economy sector, is not possible without deliberate government regulation.
Mykhailo Gedz.pdf