News

17.07.2018

¹ 7, 2018

Êiëüêiñòü ïåðåãëÿäiâ: 82

C O N T E N T S, No. 7, 2018 

 
SCIENTIFIC DISCUSSIONS
 
UDC [338:330.3]: [330:16:330.117] (477)
V A L E R I I   H E Y E T S,
Professor, Doctor of Econ. Sci.,
Academician of the NAS of Ukraine, 
Director of the Institute for Economics and Forecasting of the NAS of Ukraine,
Editor-in-Chief of the “Economy of Ukraine” Journal
26, Panasa Myrnoho St., Kyiv, 01011, Ukraine
 
© Heyets Valerii, 2018;
e-mail: gvm@ief.org.ua
 
ENDOGENIZATION OF THE ECONOMY DEVELOPMENT IN THE ASPECT OF EQUALITY OF RIGHTS RELATIONS
AMONG THE STATE, BUSINESS AND VOTING SUBJECTS

Summary
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 (pp. 3–19).
 
References 21.
 
References
1. Korablin S.O. Makroekonomichna Dynamika Ukrainy: Pastka Syrovynnykh Rynkiv [Macroeconomic Dynamics of Ukraine: the Trap of Commodity Markets]. Kyiv, Institute for Economics and Forecasting of the NAS of Ukraine, 2017 [in Ukrainian].
2. Heyets V.M. Podolannya kvazirynkovosti – shlyakh do investytsiino orientovanoi modeli ekonomichnoho zrostannya [Overcoming the quasimarketness – a way to the investment-oriented model of economic growth]. Ekonomika Ukrainy – Economy of Ukraine, 2015, No. 6, pp. 4–17 [in Ukrainian].
3. Sidenko V.R. Global’ni strukturni transformatsii ta trendy ekonomiky Ukrainy [Global structural transformations and trends in Ukrainian economy]. Ekonomika i prognozuvannya – Economy and Forecasting, 2018, No. 1, pp. 37–57, available at: http://eip.org.ua/docs/EP_18_1_37_uk.pdf [in Ukrainian].
4. Heyets V.M. Instytutsiina obumovlenist’ endohenizatsii ekonomichnoho rozvytku [Institutional conditioning of the endogenization of economic development]. Zhurnal Evropeis’koi ekonomiky – Journal of European Economy, 2018, No. 2, pp. 16–28 [in Ukrainian].
5. Jacobs G. Politicheskaya ekonomiya neoliberalizma i neoliberal’naya demokratiya [Political economy of neoliberalism and neoliberal democracy]. Mir peremen – The world of change, 2018, No. 1, pp. 8–21 [in Russian].
6. Stiglitz J. Tsena Neravenstva. Chem Rassloenie Obshchestva Grozit Nashemu Budushchemu [The Price of Inequality: How Today's Divided Society Endangers Our Future]. Moscow, Eksmo, 2015 [in Russian].
7. Heyets V.M. Osoblyvosti vzaemozv’yazku ekonomichnykh ta politychnykh transformatsii na shlyakhu do rekonstruktyvnoho rozvytku ekonomiky Ukrainy [Peculiarities of interrelationship of economic and political transformations on the way to reconstructive development of Ukraine's economy]. Ekonomika Ukrainy – Economy of Ukraine, 2017, No. 10, pp. 3–17 [in Ukrainian].
8. Rawls J. Teoriya Spravedlivosti [A Theory of Justice]. Novosibirsk, NSU, 1995 [in Russian].
9. Castells M. Vlast’ Kommunikatsii [Communication Power]. Moscow, PH of High School of Economics, 2016 [in Russian].
10. Ukrains’ke Suspil’stvo. Monitoryng Sotsial’nykh Zmin 1992–2014 [Ukrainian Society. Monitoring of Social Change 1992–2014]. V.M. Vorona, M.O. Shul’ga (Eds.). Kyiv, Institute of Sociology of the NAS of Ukraine, 2014, Vol. 2 [in Ukrainian].
11. Gurova T. Milliardy bednykh vmesto zolotogo milliarda [Billions of the poor instead of the golden billion]. Ekspert – Expert, 2018, No. 1-2, pp. 22–23 [in Russian].
12. Tsinnosti Ukrains’koho Suspil’stva i Moral’nyi Vybir: Ukrains’kyi Dosvid [Values of Ukrainian Society and Moral Choice: Ukrainian Experience]. A.M. Ermolenko, O.O. Kysel’ov (Eds.). Kyiv, Etna-1, 2006 [in Ukrainian].
13. Jonas H. Pryntsyp Vidpovidal’nosti. U Poshukakh Etyky dlya Tekhnolohichnoi Tsyvilizatsii [The Principle of Responsibility. Attempt of Ethics for Technological Civilization]. Kyiv, Libra, 2001 [in Ukrainian].
14. Heyets V.M. Dovira i rozvytok v ukrains’kykh realiyakh [Trust and development in Ukrainian realities]. Proceedings from: Tvorennya prostoru suspil’noi doviry v Ukraini XXI storichchya. Mizhnar. nauk.-prakt. konf. [Creation of a space of public trust in Ukraine of the XXI century. International scientific and practical conference]. Kyiv, University of Banking, 2017, pp. 15–30 [in Ukrainian].
15. Kornai J. Velikaya transformatsiya Tsentral’no-Vostochnoi Evropy: uspekh i razocharovanie [The Great Transformation of Central Eastern Europe: Success and Disappointment]. Mir peremen – The world of change, 2006, No. 2, pp. 8–44 [in Russian].
16. Williamson O. The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 2000, Vol. 38, No. 3, pp. 595–613.
17. Ukrains’ke Suspil’stvo: Monitoryng Sotsial’nykh Zmin [Ukrainian Society: Monitoring of Social Changes]. V.M. Vorona, M.O. Shul’ga (Eds.). Kyiv, Institute of Sociology of the NAS of Ukraine, 20171, pp. 489–491 [in Ukrainian].
18. Mason P. Postkapitalizm. Putevoditel’ po Nashemu Budushchemu [PostCapitalism: A Guide to our Future]. Moscow, Ad Marginem Press, 2016 [in Russian].
19. Suimenko E.I. Dynamika Sporidnenykh Sotsial’no-Ekonomichnykh Protsesiv v Ukraini, v: Ukrains’ke Suspil’stvo: Desyat’ Rokiv Nezalezhnosti [Dynamics of Related Socio-Economic Processes in Ukraine, in: Ukrainian Society: Ten Years of Independence]. V.M. Vorona, M.O. Shul’ga (Eds.). Kyiv, Institute of Sociology of the NAS of Ukraine, 2001, pp. 20–29 [in Ukrainian].
20. Boltanski L., Chiapello E. Novyi Dukh Kapitalizma [The New Spirit of Capitalism]. Moscow, New literary review, 2011 [in Russian].
21. Hegel G. Politicheskie Proizvedeniya [Political Works]. Moscow, Nauka, 1978 [in Russian].
 
The article was received by the Editorial staff on May 15, 2018.
 
 
ECONOMY AND LAW
 
UDC 346.14 + 334.7
V A L E N T Y N  M A M U T O V, 
Academician of the NAS and the NALS of Ukraine
 
INTEREST AND SELF-REINFORCEMENT 

Summary
Some examples of development of Ukraine’s high-tech industries, such as rocket and space and aircraft building, are considered. At the same time, the emphasis is on strengthening production cooperation with the most developed countries of the world, in particular the EU, in implementing the most ambitious projects with simultaneous adaptation to relevant standards, technologies, etc. This meets interests of our state and interests of society: activation in high-tech sectors of the economy has a multiplier effect of acceleration in related spheres and industries – from increase in demand for metallurgical products to intensification of scientific research in dozens of spheres. 
It is noted that in the presence of external factors unfavorable for the industry of Ukraine (rather painful and debatable topic of the break-up of cooperation ties with the Russian Federation is raised), successful reorientation of cooperative ties can in the long term become an impetus for steady development under condition of stability of the legal system. Such stability is achieved by compacting and codifying legislation and increasing the volume of the core act of economic legislation – the Economic Code, which corresponds to the practice of rulemaking in many EU countries. Some examples of codification of economic legislation are given. Structure of such codes allows evaluating the structure of economic legislation of these countries. During formation and codification of economic legislation, a very large group of specialists in the field of legal regulation of economic (including entrepreneurial and commercial) activities has formed, which can contribute to the achievement of the above results and development and improvement of legal regulation in this area.
Despite all the complexities of academic science, the corresponding potential is not lost. Harmonization of the norms of Ukrainian economic legislation with the relevant norms of European and international legislation is an important task for our entire state. Concernment of implementation of this direction must be supported and encouraged in every possible way.
 
Keywords: self-reinforcement; economic legislation; progressive development; production cooperation; the state interest; codification (pp. 20–34).
 
References 4.
References
1. Mamutov V.K. Zainteresovannost’ i samousilenie [Interest and self-reinforcement]. Ekonomika ta pravo – Economics and Law, 2017, No. 3 (48), pp. 3–15 [in Russian].
2. Lohanov E. ”Motor Sich” zbil’shyt’ vyrobnytstvo helikopteriv [“Motor Sich” will increase the production of helicopters]. Uryadovyi kur’er – Government Courier, September 5, 2017, available at: https://ukurier.gov.ua/uk/news/motor-sich-zbilshit-virobnictvo-gelikopteriv/ [in Ukrainian].
3. Bolshaya Oksfordskaya Entsiklopediya [Great Oxford Encyclopedia]. Moscow, Rosmen-Press, 2007 [in Russian]. 
4. Thirion N. Le Code de Droit Economique: Principales Innovations. Bruxelles, Larcier, 2015 [in French].
 
The article was received by the Editorial staff on May 2, 2018.
 
 
GOVERNING THE ECONOMY: THEORY AND PRACTICE 
 
UDC 338.465
Y U L I I A  D A N S H Y N A,
Cand. of Public Administration, Associate Professor of the Department of Public Administration
and Customs Administration
University of Customs and Finance,
2/4, Volodymyr Vernadskyi St., Dnipro, 49000, Ukraine

Danshyna Yuliia, 2018;
e-mail: danyulya@i.ua
 
NETWORK INTERACTION OF THE SUBJECTS IN THE GOVERNANCE OF THE SYSTEM OF ADMINISTRATIVE SERVICES PROVISION*

Summary
Network interaction in the governance of the system of administrative services provision is a process, conceptually directed to formation of a conscious and effective interaction of the subjects of services provision not only with the subjects of applying for services, but also with ordinary citizens of Ukraine. Among the tasks of the state policy coordinating the solution of this issue, it is quite urgent to intensify the involvement of citizens in the governance process.
However, becoming and formation of the network interaction in the governance of the system of administrative services provision is hampered by a number of problematic aspects, namely: (i) low level of public confidence in the state sector; (ii) shortage of effective civil society institutions; (iii) weak introduction of e-governance activities; (iv) absence of any signs of support of the emerging civil society from the state and business sectors; (v) lack of a clear understanding of allocation of responsibilities and duties in the relationship.
Abstract-logical analysis of theoretical and methodological foundations of network interaction is the methodological basis of the research. Also, for theoretical generalization and recommendations on formation of network interaction, scientific recommendations of Ukrainian and foreign scientists on the need to implement subject-subject relations in the governance of the system of administrative services provision were used.
Studies have allowed to assert that a number of problems hinder the parity interaction between the subjects of governance. In addition, civil society is not considered by the public sector as a source of methods and means for improving the governance system, in particular, the governance of the system of administrative services provision.
The network interaction of the subjects will allow implementing relationships aimed at continuous improvement of management activities in the system of administrative services provision and the entire system of public administration as an integrated management system.
 
Keywords: network interaction; governance; trust; e-governance; subject of governance (ðð. 35–45).
References 11; Figures 2.
 
References
1. Danshina Yu., Britchenko I. Adaptation of domestic state governance to international governance models. Baltic Journal of Economic Studies, 2017, Vol. 3, No. 5, pp. 116–124, available at:  http://www.baltijapublishing.lv/index.php/issue/issue/view/14.
2. Danshina Yu., Britchenko I. Net structure of subject-to-subject relations in the management of the system of administrative services provision. Baltic Journal of Economic Studies, 2017, Vol. 3, No. 5, pp. 108–115.
3. Mokhov V.P., Owen N. Gosudarstvennaya Sluzhba i Byurokratiya. Rossiya i Britaniya v Poiskakh Dostoinogo Pravleniya [State Service and Bureaucracy. Russia and Britain in Search of a Worthy Government]. I.K. Kir’yanov, N. Owen, J. Snicker [Eds.]. Perm, PH of Perm University, 2000 [in Russian].
4. Oslavs’kyi M.I. Vykonavcha Vlada v Ukraini: Orhanizatsiyno-Pravovi Zasady [Executive Power in Ukraine: Organizational and Legal Principles]. Kyiv, Znannya, 2009 [in Ukrainian].
5. Marchenko O. Intelektual’nyi kraudsorsyng yak katehoriya informatsiinoho suspil’stva [Intelligent crowdsourcing as a category of information society]. Proceedings from: Strategiczne pytania światowej nauki-2013. IX Międzynarodowa naukowo-praktyczna konferencja [Strategic questions of world science-2013. IX International scientific and practical conference]. Przemyśl, Science and studies, 2013, Vol. 8: Economic science, pp. 51–53 [in Ukrainian].
6. Dushina M.O. Metody setevoi kommunikatsii v digital’nom obshchestve: benchmarking, kraudsorsing, kraudfanding [Methods of network communication in digital society: benchmarking, crowdsourcing, crowdfunding]. Sotsiologiya nauki i tekhnologii – Sociology of Science and Technology, 2014, Vol. 5, No. 1, pp. 105–114 [in Russian].
7. Derzhavne Upravlinnya: Slovnyk-Dovidnyk [Public Administration: Dictionary-Directory]. V.M. Knyazev, V.D. Bakumenko (Eds.). Kyiv, UADU, 2002 [in Ukrainian].
8. Golka V.E. Gromads’ko-politychnyi kraudsorsyng i kraudfandyng yak novitni formy politychnoho aktyvizmu [Public-political crowdsourcing and kraudfanding as the latest forms of political activism]. Doctor’s thesis. Odesa, South Ukrainian National Pedagogical University named after K.D. Ushynsky, 2016, available at: http://www.pdpu.edu.ua/doc/vr/golka/dis.pdf [in Ukrainian].
9. Molodtsov O.V. Metodolohichni ustanovky merezhevoi paradyhmy mistsevoho ta rehional’noho rozvytku: zahal’na kharakterystyka osnovnykh idei ta pryntsypiv [Methodological settings of the network paradigm of local and regional development: a general description of the main ideas and principles]. Zb. nauk. prats’ NADU – Collection of the NAPA scientific works, 2005, No. 1, pp. 51–57 [in Ukrainian].
10. Smith A. Teoriya Nravstvennykh Chuvstv [The Theory of Moral Sentiments]. Moscow, Respublika, 1997 [in Russian].
11. Putnam R.D., Leonardi R., Nanetti R.Y. Tvorennya Demokratii: Tradytsii Gromads’koi Aktyvnosti v Suchasnii Italii [Making Democracy Work: Civic Traditions in Modern Italy]. Kyiv, Osnovy, 2001 [in Ukrainian].
The article was received by the Editorial staff on March 30, 2018.
 
 
FINANCES.  TAXES.  CREDIT
 
UDC 336.02
I N N A  L U N I N A,
Professor, Doctor of Econ. Sci.,
Head of the Department of Public Finances
©  Lunina Inna, 2018;
e-mail: ilunina@ukr.net,

O L E N A  B I L O U S O V A,
Cand. of Econ. Sci.,
Leading Researcher of the Department of Public Finances
© Bilousova Olena, 2018;
e-mail: bilousova.os@gmail.com

Institute for Economics and Forecasting of the NAS of Ukraine,
26, Panasa Myrnoho St., Kyiv, 01011, Ukraine
 
REFORMING THE CORPORATE INCOME TAX IN THE CONTEXT OF ENSURING THE SUSTAINABILITY OF PUBLIC FINANCES

Summary
To ensure the long-term sustainability of Ukraine’s public finances under conditions of a high level of public debt and significant payouts for its servicing, formation of prerequisites for economic growth and tax revenues of the state is required. The problem aspects of the corporate income tax in Ukraine are researched. Attention is focused on shortcomings of legal regulations of the tax base definition, which resulted in a significant reduction of budget revenues from corporate income tax, as well as their share in the total amount of revenues and mandatory payments of the general government sector (the state tax revenues) in 2014–2017. 
Based on the results of generalization of Estonia’s experience on use of the tax on withdrawn capital under conditions of Ukraine (when not the tax rates, but corruption and ineffective bureaucracy hinder economic growth), the authors conclude that the introduction of this tax is inexpedient. After all, the main consequence of such a reform of the corporate income tax will be growth of the budget deficit and public debt. According to the international experience, processes of reducing the corporate income tax accompany the unification of norms to form the corporate income tax base to prevent abuses and improve the efficiency of financial control. It is determined that the necessary prerequisites to ensure the sustainability of public finances in Ukraine are: (i) to counteract the evasion from payment of corporate income tax by establishing the legislative restrictions on the recording of expenses when determining the tax base for all taxpayers, and (ii) to simultaneously introduce tax incentives for research, development and innovation-investment activities of enterprises.
 
Keywords: tax system; sustainability of public finances; reforming the corporate income tax; tax on withdrawn capital; rates and basis of taxation (pp. 46–58).
 
References 13; Figures 2; Table 1.
 
References
1. Walczak J. State corporate income tax rates and brackets for 2015. 2015, April 21, available at: http://taxfoundation.org/article/state-corporate-income-tax-rates-and-brackets-2015.
2. Barro J. Corporate tax reform: focusing on where the money is, not where the jobs are. The New York Times, 2015, February 4, available at: http://www.nytimes.com/2015/02/05/upshot/corporate-tax-reform-focusing-on-where-the-money-is-not-where-the-jobs-are.html?_r=0.
3. Stiglitz J. Tax avoidance fuels global inequality. 2015, October 9, available at: http://edition.cnn.com/2015/10/09/opinions/stiglitz-tax-avoidance-globalization/.
4. Chapman J., Zahradnik R. Report: Reducing budget risks. Using data and design to make state tax incentives more predictable. 2015, December 01, available at: http://www.pewtrusts.org/en/research-and-analysis/reports/2015/12/reducing-budget-risks .
5. Kopits G. Coping with fiscal risk: analysis and practice.  OECD Journal on Budgeting, 2014, December 22, Vol. 2014, Iss. 1, pp. 47–71, available at: http://www.oecd-ilibrary.org/governance/coping-with-fiscal-risk_budget-14-5jxrgssdqnlt.
6. Prohorovs A., Fainglozs L., Jonina V. Introduction of Corporate Income Tax Deferral as an Essential Factor for Economic Development of Latvia.  Riga, University of Business, Arts and Technology RISEBA, 2016, pp. 23–26.
7. Finkenzeller M., Spengel Ch. Measuring the effective levels of company taxation in the new member states: a quantitative analysis. European Commission, Taxation Papers, Working Paper No. 7, 2004, p. 15.
8. Tanzi V., Zee H. Tax policy for developing countries. International Monetary Fund, 2001, available at: http://www.imf.org/external/pubs/ft/issues/issues27/ .
9. Brys B., Matthews S., Owens J. Tax reform trends in OECD countries. OECD Taxation Working Papers, 2011, No. 1, p. 15, available at:  https://read.oecd-ilibrary.org/taxation/tax-reform-trends-in-oecd-countries_5kg3h0xxmz8t-en#page1.
10. Remeur C. Tax policy in the EU. Taxation. In-depth analysis. European Parliamentary Research Service. Members’ Research Service. 2015, PE549.001, available at:  http://www.europarl.europa.eu/RegData/etudes/IDAN/2015/549001/EPRS_IDA(2015)549001_EN.pdf .
11. Coughlan V. Europe’s push for tax transparency picks up the pace. New York, Law360,  2015, available at: https://www.cov.com/~/media/files/corporate/publications/2015/12/europe_push_for_tax_transparency_picks_up_the_pace.pdf.  
12. Straathof B., Ladinska E.G., Kox H.LM, Mocking R. et al. A study on R&D tax incentives: Final Report. EU Taxation Paper No. 52. 2014, p. 5, available at:  http://works.bepress.com/henk_kox/66/ .
13. Lunina I.O., Bilousova O.S., Bulana O.O. Byudzhetno-podatkove stymulyuvannya innovatsiynoi diyal’nosti v Ukraini [Fiscal stimulation of innovative activities in Ukraine]. Ekonomika i prohnozuvannya – Economy and Forecasting, 2016, No. 1, pp. 41–56 [in Ukrainian]. 
 
The article was received by the Editorial staff on November 9, 2017.
 
PROBLEMS OF REGIONAL DEVELOPMENT AND DECENTRALIZATION
 
UDC 336.14
T A I S I I A  B O N D A R U K,
Professor, Doctor of Econ. Sci.,
Leading Researcher of Department of Public Finance,
Institute for Economics and Forecasting of the NAS of Ukraine,
26, Panasa Myrnoho St., Kyiv, 01011, Ukraine
©  Bondaruk Taisiia, 2018;
e-mail: bondaruk23@ukr.net,
 
O K S A N A  V I N N Y T S K A,
Cand. of Econ. Sci.,
Associate Professor of Department of Finance,
Accounting and Economic Security,
Pavlo Tychyna Uman State Pedagogical University,
2, Sadova St., Uman, 20300, Ukraine
© Vinnytska Oksana, 2018;
e-mail: vinnytska.oksana@ukr.net
 
ASSESSMENT OF THE STATUS OF DECENTRALIZATION 
OF UKRAINE’S LOCAL BUDGETS

Summary
Decentralization of power is a necessary condition for the formation of effective local self-government. Therefore, it is important to deepen theoretical and methodological principles for assessing the status of decentralization of the revenue part of Ukraine’s local budgets. It is determined that the assessment of the status of decentralization of local budget revenues requires the use of a set of indicators that would fully characterize the financial decentralization. It is proposed to allocate the assessment indicators of financial decentralization of local budgets revenues according to three criteria: influence of decentralization on formation of local budget revenues; decentralization of local budgets revenues according to budget classification; dependence of local budgets revenues on interbudgetary transfers.
A system of separate indicators that can be used to assess the status of decentralization of local budget revenues is proposed, and criteria for assessing the impact of decentralization on the formation of local budget revenues are determined in accordance with the proposed method of calculation. Based on the results of analysis of some assessment indicators of the status of decentralization of local budget revenues, it is determined that such an analysis does not provide a general idea of the status of their decentralization. Therefore, the authors calculated the indicators by individual criteria using weight coefficients.
It is substantiated that parameters of the linear trend model for the criteria for assessing the impact of decentralization on formation of local budget revenues show a high degree of certainty of their decline process. In recent years, there has been a tendency to reduce the criteria for assessing the impact of decentralization on formation of local budget revenues. The authors determined an unstable tendency of changing the criteria for assessing the decentralization of local budget revenues according to budget classification. At the same time, the parameters of linear trend model for sub-indices of the criteria for assessing the dependence of local budget revenues from interbudgetary transfers show a high degree of certainty about its downward trend.
In the course of the research, a system of indicators was developed to determine the status of decentralization of local budgets. Approbation of the methodology for calculating the integral indicator confirmed the possibility of its use for analyzing the status of decentralization of local budget revenues.
 
Keywords: financial decentralization; indicators of the status of decentralization; local budgets; budget classification; interbudgetary transfers (ðð. 50–75).
 
References 19; Figures 5; Tables 4; Formulas 16.
 
References
1. Lunina I.O. Byudzhetna detsentralizatsiya: tsili ta napryamy reform [Budgetary decentralization: purposes and directions of reforms]. Ekonomika Ukrainy – Economy of Ukraine, 2014, No. 11, pp. 61–75 [in Ukrainian].
2. Lunina I.O., Kyrylenko O.P., Luchka A.V. et al. Dyversyfikatsiya Dokhodiv  Byudzhetiv [Diversification of Local Budget Revenues]. I.O. Lunina (Ed.). Kyiv, Institute for Economics and Forecasting of the NAS of Ukraine, 2010 [in Ukrainian].Mistsevykh
3. Boryslavs’ka O.M., Zaverukha I.B., Shkolyk A.M. et al. Detsentralizatsiya Publichnoi Vlady: Dosvid Evropeis’kykh Krain ta Perspektyvy Ukrainy [Decentralization of Public Authority: Experience of European Countries and Prospects of Ukraine]. O.M. Moskalenko (Ed.). Kyiv, Center for Political and Legal Reforms, 2012 [in Ukrainian].
4. Pobochnyi I.A. Polityko-pravovi zasady detsentralizatsii vlady v konteksti reform v Ukraini [Political and legal principles of decentralization of power in the context of reforms in Ukraine]. Proceedings from: Pravova derzhava: istoriya, suchasnist’ ta perspektyvy formuvannya v umovakh evrointegratsii. Ukrains’ko-Pol’s’ka nauk.-prakt. konf. Dnipropetrovs’k, 15 lystopada 2013 r. [The state of law: history, modernity and prospects of formation under conditions of European integration. Ukrainian-Polish scientific and practical conference. Dnipropetrovsk, November 15, 2013]. Dnipropetrovsk, Dnipropetrovsk State University of Internal Affairs, 2013, pp. 24–25 [in Ukrainian].
5. Zavgorodniy V.A., Romanov M.Yu. Detsentralizatsiya ta federalizatsiya: porivnyal’nyi analiz i mozhlyvosti vprovadzhennya v Ukraini [Decentralization and federalization: comparative analysis and possible implementation in Ukraine]. Visnyk Zaporiz’koho natsional’noho universytetu. Yur. nauky – Visnyk of Zaporizhzhya National University. Law Sciences, 2015, No. 1, pp. 16–23 [in Ukrainian].
6. Beskyd I. Teoretychni zasady byudzhetnoi detsentralizatsii: normatyvna ta pozytyvna teoriya byudzhetnoho federalizmu [Theoretical foundations of fiscal decentralization: normative and positive theory of budget federalism]. Svit finansiv – World of finance, 2007, No. 4, pp. 116–121 [in Ukrainian].
7. Buturlakina T.O., Minkovych V.T. Finansova detsentralizatsiya yak faktor ekonomichnoho zrostannya rehioniv [Financial decentralization as a factor of economic growth of regions]. Naukovyi visnyk Uzhhorods’koho universytetu. Ser.: Ekonomika – Scientific herald of Uzhgorod University. Ser.: Economics, 2010, No. 31 [in Ukrainian].
8. Ma J. Decentralization from the “top down”: the Japanese case, available at: www.worldbank.org/mdf/mdf1/topdown.htm.
9. Uskov I.V. Sistema otsenki effektivnosti upravleniya finansami mestnykh organov vlasti [System of estimation of management efficiency by finances of local authorities]. Biznesinform – BusinessInform, 2013, No. 1, pp. 56–61 [in Russian].
10. Bondaruk T.G. Mistseve Samovryaduvannya ta yoho Finansove Zabezpechennya v Ukraini [Local Government and its Financial Support in Ukraine]. Kyiv, Ekspres, 2009 [in Ukrainian].
11. Baranova I.V. Otsenka Effektivnosti Ispol’zovaniya Byudzhetnykh Sredstv [Estimation of the Effectiveness of Using the Budget Funds]. Novosibirsk, Novosibirsk State University of Economics and Management, 2009 [in Russian].
12. Almazov S.G. Upravlenie finansovoi ustoichivost’yu mestnykh byudzhetov [Management of financial sustainability of local budgets]. Sb. nauch. trudov SevKavGTU. Ser.: Ekonomika – Coll. of scientific works of SevKavSTU. Ser.: Economics, 2006, No. 3, pp. 25–33 [in Russian].
13. Grishin V.A. Kriterii otsenki sostoyaniya byudzheta regiona [Criteria for assessing the state of the regional budget], available at: http://www.mstu.edu.ru/science/conferences/anniversary_ntk/materials/section5/section5_17.html  [in Russian].
14. Apatova N.V. Otsinka efektyvnosti mistsevykh byudzhetiv [Local budgets effectiveness assessment]. Ekonomika rehioniv – Regional economy, 2010, No. 4, pp. 15–22 [in Ukrainian].
15. Kamins’ka I.M., Vakhovych I.M. Finansova Spromozhnist’ Rehionu: Diahnostyka ta Mekhanizm Zabezpechennya [Financial Capacity of the Region: Diagnostics and Mechanism of Provision]. Lutsk, Nadstyr’ya, 2009 [in Ukrainian].
16. Velenteichyk N.Yu. Analitychna otsinka stiikosti mistsevykh byudzhetiv v systemi rehulyuvannya mizhbyudzhetnykh vidnosyn [Analytical assessment of local budgets sustainability in the system of regulation of intergovernmental fiscal relations]. Innovatsiina ekonomika – Innovative economy, 2012, No. 8, p. 305–311 [in Ukrainian].
17. Dzhaferova L.R. Otsenka Prioritetnosti Raspredeleniya Byudzhetnykh Resursov Regiona, v: Ekonomika: Problemy Teorii ta Praktyky [Assessment of Priority of Budget Resources Distribution in the Region, in: Economy: Problems of Theory and Practice]. Dnipropetrovsk, DNU, 2005, Iss. 210, pp. 384–390 [in Russian].
18. Salo T. Detsentralizatsiya finansovoi systemy: stan ta otsinka rivnya v Ukraini [Decentralization of financial system: status and evaluation of its level in Ukraine]. Zb. nauk. prats’ “Efektyvnist’ derzhavnoho upravlinnya” – Collection of scientific works “Efficacy public administration”, 2013, Iss. 35, pp. 324–330 [in Ukrainian].
 
The article was received by the Editorial staff on February 13, 2018
 
 
QUESTIONS OF THE DEVELOPMENT OF AIC
 
UDC 338-439.02
BBC 65,32:333P
B O G D A N  K U Z N Y A K,
Professor, Doctor of Econ. Sci.,
Poltava National Technical Yuri Kondratyuk University,
24, Pershotravnevyj Ave., Poltava, 36011, Ukraine

© Kuznyak Bogdan, 2018;
e-mail: irusha21@ukr.net
 
ORGANIC PRODUCTION IS THE BASIS OF HEALTH OF PEOPLE AND NATURE

Summary
The search of forms and methods of promoting the development of organic agriculture, consumption of organic products and its distribution through the long-term marketing concept is considered. Life expectancy in Ukraine in recent years has decreased by 10 years compared to European countries. The natural fertility of the land is gradually deteriorating due to excessive use of mineral fertilizers, pesticides, toxic chemicals and other negative factors. This led to destruction of the fertile soil layer and its most valuable component – humus, the content of which has decreased from 13-14% to 3-5% over the past 100 years. 
This significantly worsened the living conditions of soil microorganisms ensuring the activities of organic substances and nutrition of agricultural plants and reduced the quality of grown produce, which adversely affects the health of people and nature.
The way out of this difficult situation is the transition to organic farming, which at the present stage is increasingly becoming a global strategic direction. 
The basic principles of organic farming are: (i) refusal to use mineral fertilizers and chemical means of plant protection (pesticides); (ii) use of organic fertilizers and siderates (“green fertilizers”, which fill the soil with organic mass and destroy weeds); (iii) surface cultivation of the soil (not more than 11 cm) sufficient for fluffing its upper layer, protection against weeds and microform balance; (iv) provision of scientifically sound crop rotation, which ensures fertility of the soil and control of weeds and pathogens.
 
Keywords: organic products; marketing; innovation; mineral and organic fertilizers; crop rotation; environment; humus (pð. 76–83).
References 10.
 
References
1. Nahorna O. Cherez skil’ky rokiv Ukraina mozhe zalyshytysya bez chornozemiv? [In how many years can Ukraine remain without black soil?]. Poltavs’ka dumka – Poltava thought, 2011, No. 19 (860) [in Ukrainian].
2. Proceedings from: Orhanichne vyrobnytstvo i prodovol’cha bezpeka. Mizhnar. nauk.-prakt. konf. [Organic production and food safety. International scientific and practical conference]. Zhytomyr, Polissya, 2013, available at: http://znau.edu.ua/media/nauka_innovation/organic/Organic_20132.pdf [in Ukrainian].
3. Humenyuk H.D., Badzhurak O.V., Lyashenko O.K. Orhanichne vyrobnytstvo v sviti – istoriya rozvytku ta suchasnyi stan (ohlyad) [Organic production in the world – the history of development and the current state (review)]. Bioresursy i pryrodokorystuvannya – Bioresources and nature use, 2010, Vol. 2, No. 3-4, pp. 56–62 [in Ukrainian].
4. Khodakivs’ka O. Orhanichne vyrobnytstvo: svitovi tendentsii ta ukrains’ki realii [Organic production: world trends and Ukrainian realities]. Zemlevporyadnyi visnyk – Land Management Bulletin, 2017, No. 8, pp. 22–27 [in Ukrainian].
5. Livits’ka A. Filosofiya “Organik” [“Organic” philosophy]. AgroMarket – AgriMarket, 2016, No. 8, available at: http://www.agrotimes.net/journals/article/filosofiya-organik [in Ukrainian].
6. Pysarenko V.M., Antonets’ A.S. Antonets’ Semen Svyrydovych: bibliohr. pokazhch. nauk. pr. za 1956–2015 roky [Antonets’ Semen Svyrydovych: bibliography of scientific works for 1956–2015]. Kyiv, Zerno, 2015 [in Ukrainian].
7. Semenyaka V. Ne mozhete dopomogty sil’hospvyrobnyku, to khocha b ne zavazhaite iomu [Cannot help farmer, then, at least do not bother him]. Holos Ukrainy – Voice of Ukraine, 2016, No. 10 (6264), available at: http://www.golos.com.ua/article/263403 [in Ukrainian].
8. Neizhmak V. Den’ chy “nich” organichnoho polya? [Day or “night” of organic field?]. Holos Ukrainy – Voice of Ukraine, 2017, No. 150 (6655) [in Ukrainian].
9. Kuznyak B.Ya. Osnovy Ekonomichnoi Teorii [Fundamentals of Economic Theory]. Poltava, ASMI, 2015 [in Ukrainian].
10. Malhotra Naresh K. Marketingovye Issledovaniya. Prakticheskoe Rukovodstvo [Marketing Research: an Applied Orientation]. Moscow, PH Vil’yams, 2003 [in Russian].
11. Trofimtseva O., Prokopchuk N. Orhanichnyi rynok v Ukraini [Organic market in Ukraine]. Tvarynnytstvo s’ohodni – Animal industry today, 2018, No. 2, pp. 8–13, available at: http://organicinfo.ua/shared/promo/72/3/Organic_in_Ukraine_Trofimtseva_Prokopchuk-2017_UA.pdf [in Ukrainian].
 
The article was received by the Editorial staff on March 7, 2018.
 
 
CRITIQUE AND BIBLIOGRAPHY
 
UDC 330.8 (477)
JEL B19, B31
V I K T O R I I A  N E B R A T,
Doctor of Econ. Sci.,
Head of Department of Economic History,
Institute for Economics and Forecasting of the NAS of Ukraine,
26, Panasa Myrnoho St., Kyiv, 01011, Ukraine
 
 
INTEGRAL-WORLDVIEW APPROACHES IN STUDYING THE HISTORY OF UKRAINIAN ECONOMIC THOUGHT (pp. 84–88)
 
The review was received by the Editorial staff on May 18, 2018.
 
______
 
SUMMARIES (pp. 88-90)
____
 
EDITORIAL POLICY AND ETHICAL PRINCIPLES (pp. 91-94)
 

 



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