INTEGRATION OF UKRAINE INTO EUROPEAN UNION IN GLOBALIZING WORLD

УДК 336.531.2

Чатикян Ф.Е., студент 2 курсу
ХНЕУ ім. С. Кузнеця

Ukraine’s unstable economic conditions caused by a number of external and internal factors both structural and tactic in character call for constant transformations. In a rapidly globalizing world the Ukraine’s economy is undergoing changes, an organization functioning requires prudent strategic steps aimed not only at short-term surviving but also at creating a high potential in the long run.

At present the development of all countries and world economy sectors is determined by globalization and increased economic interdependence of the states. Radically new information technologies and communication means, fast-track deregulation of the goods, services and financial markets have accelerated economic processes and decreased the degree of freedom in business. As far as Ukraine’s strategic goal is European integration, it is necessary to take into account these tendencies.

The primary reason that blocks Ukraine’s joining the world economy is an extremely low competitiveness of its goods on the world market, as the majority of Ukrainian goods do not meet the international standards. Nowadays, the transition to the world-class standards requires much time and money, which most producers cannot afford. Besides, Ukrainian products are characterized by a low quality and materials-output ratio as the equipment applied is obsolete. The reasons for low competitiveness of Ukrainian goods include the predominance of primary commodities in the country’s export, the lack of high technology equipment, patents, licenses, know-how that are in great demand on the market.

The research by the World Economic Forum indicates that in 2015-2016 Ukraine took the 79th place among 140 countries as for global competitiveness having lost three positions since the previous year (76th place) (Public union “Economic discussion club”). Experts say that the most challenging issues of Ukrainian business activity include the following (in the descending order): corruption, a complicated access to finances, inflation, political instability, high tax rates, inefficient bureaucracy, complex tax laws, currency market control, frequent government changes, limited labor market control, low innovation potential, low-quality of infrastructure, a high crime and theft rate, poor health care and education as well as bad professional honor.

Summarizing experts’ estimations as to negative features in Ukraine’s economic development and its international competitiveness it is possible to provide the following reasons: deterioration in the financial market development because of the unstable bank system; the country’s credit rating drop caused by the state debt escalation; low national investors’ protection caused by the inefficacious investment protection by the state; the need for professional management; a growing number of emigrant-researchers resulting in Ukraine’s intellectual potential decrease; decreased impact of business on the conditions of direct foreign investment; increased impact of taxation on investment stimulation; poor intellectual rights protection; business development position drop (now 98th, in 2015 was 91st) caused by inefficient antimonopoly laws and the lack of stimulation mechanisms for small and medium-sized business including the tax inspection pressure; low quality of Ukraine’s infrastructure.

Ukraine’s economic system is mostly connected with its transition from the administrative and command economy to the market one. Ukraine is now changing from the mixed-type economy based on directive and planned principles to the mixed-type economy based on the free-market principles. In other words, the principles change. These transformations are not so much characterized by the reforms in the economic policy and business methods as by the changes in the social and economic relations.

The major goals of the Ukrainian economy market transformation include: creating a reliable foundation for people’s welfare growth; stimulating a rapid economic growth; labor productivity increase; reaching the world efficiency levels of mineral commodity usage introducing new technologies; manufacturing a sufficient amount of products in demand; ensuring a high quality of products and services; creating conditions for increasing the real income of the population.

Among the reasons for the economic recession in Ukraine, one can mention the absence or underdevelopment of many necessary institutions mediating the relations between the market, the state and the community. The major causes of Ukraine’s economic system transformation problems include:

  1. The previous economic system was based on distributive relations; everything produced by people was taken by the government and then part of it was distributed by certain officials among the legal and physical subjects of the national economic complex.
  2. A relatively low development level of productive forces compared to other developed countries, a high production concentration making the conditions for developing small and medium-scaled business complicated; the economy disequilibrium, its monopolization, the continued existence of the elements of the state-run economy.
  3. The issue of Ukraine’ economic development model has not been fully approved yet. Researchers state that it can be a mixed social-oriented economy involving the advances of the modern civilization, its best economic, scientific and technical achievements. This model should be detailed and connected with the economic policy including the development of the stages, strategies and tactics of its realization.

Mixed economic systems of a European type would be ideal for Ukraine providing that the economic mechanism is under the state’s control. Ukraine belongs to Europe from the geographical viewpoint. The relations between Ukraine and the European community are vitally important as they guarantee peace and safety in the Euro-Atlantic region. Yet, if Ukraine is eager to become a European state not only geographically, but also economically, a whole complex of steps should be implemented to introduce European norms, values and standards of living.

The transition economy introduction raises a number of problems:

  1. The economy transformation degree and its recession. It is necessary to render the recession accompanying transformation processes as a considerable potential of macroeconomic contradictions accumulated in the years of the state-run economy. The recession is caused by radical economic transformations, that is why it is called a transformation recession. Society’s expenses from the recession are a kind of charges for the system transformation, a social price of economic reforms.
  2. Transition period duration. The depth and duration depend on the disproportion and amount of transformation tasks considering technological and technical levels as well as the development level of market relations, etc.
  3. Coordination of wide, multidirectional interests in a region. Integrated national entities, including independent republics or states tend to become control subjects determining the process of social and economic transformations during a transition period.
  4. The correlation degree of the state control and competitiveness. The state control over the economy depends on the particular economic situation. In a transition period, the state focuses its economic policy on stimulating the business and investment activity, consumer purchasing power increase by means of subsidies and other economic regulators. Besides, the state decreases taxes, credit rates providing extra jobs to ensure employment.

The Reform reveals that studying other countries’ experience is of great importance to ensure the economy reformation by overcoming the transition recession difficulties on the way to the free-market economy. In this aspect, the experience of forming international standards in Poland would be of a particular interest taking into account its geographical proximity, economic connections and long cooperation with Ukraine. In Poland, the international consensus-oriented standards providing acceptable economic decisions and an access to European knowledge and experience have been introduced.

Science and education, teaching and learning are the most effective factors of training a person to live in the information society. Education modernization based on information technologies introduction would create a new social and cultural environment, the information society. The creation of the Single Information Space (SIS) is one of the ways to provide information support in education. It would allow introducing new information and telecommunication technologies, applying unique information resources and naturally creating a culture generated by the information age in which individuals’ and social groups’ interests are realized.

This complex being introduced into the Ukrainian teaching process is inferior to the similar practices in other countries. In its turn, education reconstruction is based on the fact that social, economic, cultural and technological conditions of human existence change in accordance with social development and it is a necessary response to transformations caused by globalization. The Single Information Space (SIS) provides a possibility for all system subjects to use electronic information resources of the system.

Thus, the economic system functioning involves the changes in its stages of development determined by their cyclic character. The transition to a radically new economic level is possible in case of creating the country’s task-oriented strategic potential. Ukraine’s relationswith the European community are of great importance as they ensure peace and stability in the Euro-Atlantic region. Yet, if Ukraine is eager to be a European state not only in a geographical sense but also in an economic one, a whole set of actions should be introduced to achieve the European norms, values and standards of living.

It is advisable to introduce the international consensus-oriented standards providing acceptable economic decisions and an access to European knowledge and experience. Science and education, teaching and learning are the most essential factors in a person’s training in the information society. Education modernization based on information technologies development and introduction will allow the country to create a new social and cultural environment, the information-oriented society.