The merger of power and property in Ukraine: a mechanism of implementation and ways for regulation

Анотація

The article addresses the issue of informal interrelation between power and property in Ukraine. Such a merger results in the following undesirable situations: when the government lobbies for the companies whose business concerns are «represented» by authorities; when public funds are misused by funding the companies through government grants, subsidies, subventions and funding government programmes; when budgetary and extra-budgetary funds are poorly allocated and reallocated; when conditions for shadow economy arise. The purpose of the paper is to substantiate the main ways and tools for countering and overcoming the merger of power and property in the national economy.More specifically, the article describes and clarifies the main components of the interrelation between power and property, namely: subjects, objects, the main areas where the merger can be achieved, the areas under its influence, tools and levers, forms and methods for the merger to be completed. The study also indicates negative consequences of the «power – property» structure for economic, social and political processes. The need to combat and prevent the discussed problem in the national economy stems from growing maladministration of the government in the economic area, informal interrelation between authorities and a large number of the institutional and permanent properties, aggravation of corruption, and lobbying for economic interests of authorities and proprietary bodies. It is proposed to implement a systemic state’s policy aimed at overcoming the merger of power and property. This policy should be carried out along with a long-term policy of economic growth and reproduction of intensive economic relations. In response to the need of combating the merger of power and property in public sector and tax service, a set of measures is proposed. These measures will promote the reproduction of economic relations and economic interests in the regulatory and legal sphere.

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