№ 7/2018

Ekon Ukr. 2018 (7): 3–19https://doi.org/10.15407/economyukr.2018.07.003

SCIENTIFIC DISCUSSIONS

УДК [338:330.3]: [330:16:330.117] (477)

HEYETS Valeriy¹

¹Institute for Economics and Forecasting of NAS of Ukraine, Research ID : http://www.researcherid.com/rid/ 57194145214
OrcID ID : https://orcid.org/0000-0002-2895-6114

ENDOGENIZATION OF THE ECONOMY DEVELOPMENT IN THE ASPECT OF EQUALITY OF RIGHTS RELATIONS AMONG THE STATE, BUSINESS AND VOTING SUBJECTS

There is a struggle in Ukraine between the collectivism of the past and the individualized activity of the present with a propensity for opportunistic behavior. This profound contradiction is historically predetermined, and, in fact, it has set a higher level of social embodiment in formation of extractive institutions. Thus, both society and the state face the task of harmonizing the activities of public institutions, church organizations, parties and movements, as uncontrolled markets are devastating in their consequences because they lack moral foundations.
In Ukraine, in the last three years, after a significant drop in the economy and implementation of austerity policy, 51,1% of the population has a level of income below the subsistence level. Possibilities of overcoming this destruction in the incomes of Ukraine’s population are significantly limited, since this negative tendency is logically linked to the relevant global processes, which in 20 years can deepen the inequality both in income and in terms of property control. As today’s experts on poverty issues say, it will be even more unfair to humans, and, accordingly, “the worlds of billions of poor” will be formed. And, as repeatedly stressed, this will be a characteristic feature of the “new Middle Ages”; since it is widely acknowledged that those who have property or capital grow up much faster than those who do not have such property.
The current institutions of the state and government, including in Ukraine, are generally characterized by a low level of trust in society. Consequently, without close cooperation of the state with civil society organizations, successful reform of the domestic economy and conduct of active economic policy, if possible, it is only due to too slow progress, and even under the pressure of external factors not always realized in national interests. That is why the principles of “developing protectionism” in line with the national economic interests, which are under serious exogenous pressure, need to be updated in Ukraine. Therefore it is necessary to make a transition to a stable trajectory of long-term economic growth on the basis of endogenization, thanks to which the role of dominating now exogenous factors in economic development will decrease.

Keywords:economic development; commodity markets; quasi-economy; transformational changes; endogenous development; exclusive institutions; inclusive institutions; democratic institutions

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The article was received by the Editorial staff on May 15 , 2018

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