№ 1/2017

№ 1/2017

Nauk. pr. NDFI 2017 (1): 41–52https://doi.org/10.33763/npndfi2017.01.041

PUBLIC FINANCES

GASANOV Sergіi ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-7454-0419

Structural reforms under institutional uncertainty and financial instability

In the political economy context, structural changes of the economy are above all its structural-institutional changes. However, structural reforms similar by its nature are successfully completed in certain countries, while others turn into a long simulation process. Overcoming the institutional uncertainty and financial instability is essential to the successful implementation of Ukrainian structural reforms. Institutional changes in the structure of economic activity are increasingly associated not with a conflict but with a compromise of economic interests, a factor of confidence among business entities as well as their relations with state and property rights observance. Economic growth in developed countries is mostly provided by state support of innovations and structural reforms, which enhance efficient use of public expenditures and synergy effects from creative combinations of financial, material and intellectual resources. Long-term stagnation, economic fluctuations and shocks of the Ukrainian economy are the consequences of permanent institutional state disability to ensure economic freedom, competitive economic framework and protection of human and property rights. The trend of “a new privatization of a state” and usage of its facilities for private sector exploitation is a noticeable tendency in the modern context. The efforts should be concentrated on a faster implementation of an extensive institutional network of sustainable interconnections and rules that would cement economic system and shape the institutional framework of stability, giving it more certain and relatively predictable essence. That is, in the author’s view, the mission of the structural policy under modern transitive conditions. It is a special structural policy, which by its nature is mainly structural-institutional, rather than structural-sectoral, structural-regional or structural-functional, as it is typical for “normalized”, “fixed” and “standardized” market economy. Under institutional uncertainty and market coordination mechanisms conflict with oligarchic group-controlled mechanisms of governance, there arises a threat of involving structural reforms into centralized decisions and measures aimed at implementing specific group interests of political and economic power informal centers.

Keywords:structural reforms, structural policy, institutional uncertainty, financial instability.

JEL: A10, D80, E02, E61, H10, P26, P35.

Gasanov S. . Structural reforms under institutional uncertainty and financial instability / S. . Gasanov // Наукові праці НДФІ. - 2017. - № 1. - C. 41-52.

Article original in Ukrainian (pp. 41 - 52)

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