Legal mechanisms of anti-crisis regulation of economy Cover Image

Правові механізми антикризового державного регулювання економіки
Legal mechanisms of anti-crisis regulation of economy

Author(s): Andrii Olefir
Subject(s): Law, Constitution, Jurisprudence
Published by: Національний юридичний університет імені Ярослава Мудрого
Keywords: state regulation; market economy; financial system; banking; refinancing; discount rate; investment; innovation

Summary/Abstract: The most urgent task facing Ukraine is the development andimplementation of effective urgent economic reforms that will ensure long-termcompetitiveness of domestic enterprises.Recent research and publications analysis. Problems of state regulation of theeconomy in sectoral and intersectoral sense last time were investigated by scientists,including such as A.V. Batura, A.U. Bytyak, R.P. Boychuk, R.V. Waxman, S.V.Glibko, A.M. Davydyuk, K.V. Ephremova, D.V. Zadyhaylo, D.D. Zadyhaylo, M.N.Kuzmina, V.S. Kravtsiv, V.A. Lushkin, V.K. Mamutov, Y.I. Ostapenko, V.M.Pashkov, V.A. Ystimenko, T.I. Shvydka and others.Paper objective. This publication is planned to define some basicmacroeconomic problems of domestic economic sphere and on the basis of thisanalysis suggest the complex of anti-crisis management.Paper main body. History tells us that the formation of a mixed economy basedon a new technological paradigm is possible only with the active state regulation ofthe economy, since deregulation in crisis is perceived as maximum assistance formonopolistic enterprises and multinational corporations, which, according to «marketfailures» are not interested in investing to technological basis of the nationaleconomy. In the absence of industrial policy as priority areas in Ukraine weredeclared supporting for agriculture and energy, but extensive approaches to providingsuch support will remain unchanged. Moreover, without new industrialization andinnovation policy within the state's economic strategy, it would be impossible tosatisfy even the current complex of socio-economic needs. As the world moves to anew, sixth technological structure, at this time it is rather difficult for leaders of theprevious structure to retain the championship, because of their dependence (risks ofimpairment) on the excessive concentration of capital in an obsolete industry. Fromthis position states that develop can easier concentrate resources on breakthroughgrowth areas.In our view, the key problem of the national economy is a lack of cheap andlong-term loans to finance business projects in the real sector, and therefore weshould pay attention to the following pattern: on the one hand, devaluation can beseen as a way to combat import and export promotion, but on the other hand, in theabsence of production facilities and competitive offers, devaluation will not createinterchangeable adequate supply. Along with the analysis of the shortcomings offoreign investment to Ukraine and fundamental economic and legal factors thatprohibit foreign investment, were explored ways how to grow the economy throughforeign investment: attracting of assets and stimulation of migrants remittances.Conclusions of the research. So, in the following article were developedcoherent legal mechanisms of anti-crisis regulation of the economy, such as:structural economic reform, which provides independent entities, that are capable tofunction effectively in the long run and produce competitive products for foreignmarkets, attract investment, with a simultaneous decrease in the profitability oftraditional business spheres; compulsory saving state owned blocking stake instrategic enterprises (constitutional law level); adopt basic constitution guarantees offoreign investment and restrictions on foreign investment if it is caused by theprotection of the constitutional system and public health; prohibition of deregulationregarding supervisory functions of the state aimed at protecting public health andeconomic sovereignty; put a law on strategic planning; use of anti-crisis exchangecontrol; lowering the refinancing rate to a level that corresponds to the average rate ofreturn of manufacturing industry (further reduce the rate according to the economicactivity).Аbstract: This article explores the main macroeconomic problems of nationalscope entities that affect the microenvironment, statistical data and internationalexperience. Attention is drawn to trends in legal support of economic relations,incentives and restrictions of foreign investment. The author offers a range ofstrategic and tactical legal mechanisms for crisis management of the economy, whichshould be immediately implemented in Ukraine.

  • Issue Year: 1/2015
  • Issue No: 07
  • Page Range: 12-12
  • Page Count: 20
  • Language: Ukrainian