CORRUPTION AND BIG BUSINESS: THE REALITIES OF UKRAINE

Анотація

This paper examines the problem of large capital influence on public policy. The main sources of corruption in modern societies are considered: clientelism and rent-seeking. It was identified and analyzed the problem of clientelism in developed democracy and in States with unstable institutional environment, including Ukraine. Clientelism involves such relationships, which are based on a mutually beneficial services exchange between persons of different status and power, the client is usually provided with protection in exchange for his loyalty and political support. The stability of client-patrimonial connections is profitable for both socially unequal sides: for patron, for them these links are the mechanisms of their influence, and for the clientage - a form of protection. In turn, the economic rent is received by advocacy groups through a monopoly on scarce resources or through access to an administrative resource (the ability of the government, local authorities to create artificial shortages, licensing mechanisms, import tariffs regulation, tax rate regulation, open bidding with "special" conditions, etc.). The problem of the rentier formation and functioning, both in developed democracies and in States with unstable institutional environment, in particular in Ukraine, is analyzed. The first approach, under the "rentier", is understood by persons who live on the basis of rent, that is, income derived from capital, usually in the form of bank deposits, securities, revenues from real estate, land, business, copyright, etc. According to this definition, there is no clear distribution between the rentier and the entrepreneur. The second approach, understands not the sources of income of individuals, but the way of their lives. At that, this way of life absolutely contrasts with the way of life of an entrepreneur. The main threats to society in connection with the functioning of clients and rent-seeking groups in societies like the Ukrainian one are identified.

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