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4IJIB§9JMj Wschodnioeuropejskie Czasopismo Naukowe (East European Scientific Journal) #11, 2016
STATE AND PROBLEMS OF RESISTANCE FOR ECONOMIC CORRUPTION IN THE
MODERN UKRAINE
Voloshenko Antonina Vitaliyivna
person working for doctor's degree of the National Academy of Management, PhD of Economics, Associate Professor (Ukraine, Kyiv).
The article is devoted to the systematic analysis of state imperatives to counter the economic corruption. In order to develop the state regulatory framework, the need for the formation of the methodological approach, in which corruption is explicated as a specific economic institutional formation has been established. Based on international practice and international standards to combat financial crimes, the priorities of economic and legal content to combat the economic corruption have been marked.
Keywords: anomie, imperative, economic corruption, financial fraud, the shadow economy.
Formulation of the problem. The need for anticorruption in present-day Ukraine has declared a key element of foreign and domestic policy. This is due to the awareness that corruption is a threat to the national security and the adoption of the concept papers of national and economic security: the National Security Strategy of Ukraine [1], strategy of sustainable development "Ukraine - 2020" [2], the Anticorruption Strategy for 2014 -2017 [3] based on the need to overcome this negative phenomenon,
The above-mentioned documents stated that the basis for the security must be ensuring fair and impartial justice, speedy cleaning of the power at all levels and ensuring the implementation of effective anticorruption mechanisms. According to the stated in the strategy of sustainable development, the indicators by 2020, Ukraine should enter the list of top 50 countries in the world on the Corruption Perceptions Index (as Transparency International calculates)1 [20].
To achieve such a high rate it is necessary to identify the causes of corruption, the levels of its spread and the extent of destruction, on the basis of the obtained results the anticorruption programs must be developed, distinguishing corruption on the basis of areas of occurrence and consequences, laying thus the state regulatory framework for combating corruption.
Starting from the postulate that the purpose of economic corruption are unlawful material benefit, enrichment in one form or another, we can state that it is the economic corruption in Ukraine that is one of the main anti-factors attracting foreign investments and advanced technologies into the industry. Economic corruption as a means of accumulation and output of criminal capitals abroad, raised the problem of labor poverty creates a widening the gap between the income of rich and poor citizens.
The desire for illicit enrichment of the representatives of the legislative authority, accompanied by the international community low effective fighting with corruption which is demonstrated to the international community, has a negative impact both on the external image and the investment rating of Ukraine. Opening all the new opportunities for the development of economic corruption is the genuine bane of economic transformation, as the corruption distorting the purposes of the most promising reforms, makes people lose faith in their legitimacy and honesty. According to the above-mentioned, the fight against economic corruption is a national imperative.
The analysis of recent research and publications. Geopolitical and economic transformation of the last few years of the global and local scales are accompanied by the growth of corruption, as a result, this phenomenon as an object of scientific research attracts more and more interest. Corruption in the structure of economic relations and the economy of corruption are
investigated in the works of D. Anderson [7] G. Broadman [5] S. Gray [7] Yu. Nisnevich [10] A. Paksiutkin [12] F. Rikanatini [ 5], S. Rose-Ackerman [16], G. Satarov [4] D. Stukalo [10] T. Soreyd [20] and many others.
Despite the urgency of the problem of developing effective state regulatory mechanism to prevent and overcome economic corruption in Ukraine, the stated theme I underrepresented in domestic scientific papers. The introduction to the theme of the publications in scientific journals showed that some aspects of this problem are investigated in most cases the law experts: O. Busol [6] A. Volobuev [13] I. Grinenko [15], A. Kovalchuk [8], C. Kuzminov [9] D. Prokofiev-Yanchilenko [15], Ye. Skulish [17] B. Sokrut [15] and others.
It is obvious that the special economic and crime reality, caused by total corruption in Ukraine requires a special scientific understanding not only from the standpoint of law, but also from the point of view of the economy.
The unsolved part of the problem. In Ukraine, the economic theory of corruption and the economy of corruption currently remains a poorly investigated phenomena. In foreign countries not only the theoretical foundations of the study of corruption as an economic phenomenon were created, but also empirical methods and mechanisms for the application of the economic approach to countering corruption a threat to national security were developed on this basis long ago. Moreover, it is an economic approach that is a dominant policy in many countries in the anticorruption strategy, as it is aimed at the formation of conditions for preventing this category of offenses, and not for fighting with the consequences of them. This understanding of the corruption problem and its solution has not been developed in Ukrainian politics and that it is obvious that this fact reduces the effectiveness of the anticorruption policy.
The objective of the investigation: to analyze the economic measures of countering corruption as a state imperative.
The main results of the study.
The study of corruption has received a new vector of development as a result of political and economic changes in the countries with transition economies, which were accompanied by a sharp increase in corruption, and as a consequence, misappropriation of funds from international organizations, devoted to reforms.
The most common theoretical interpretation of corruption is reduced to the concept of anomie - a painful condition of the society, which tends to weaken the effect of social norms. In periods of transition anomie is the cause of rising crime in general and corruption in particular. This phenomenon of anomie itself can be dissected, and individual components of weakening the social order can be indicated:
1 According to the results of 2015 CPI index of Ukraine is 27 points from possible 100, it is only 1 point more than last year. In the worldwide rating Ukraine occupies 130 position of 168 positions. In 2014 the country was the 142nd of 175 positions [20].
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- the weakness of the state machine and even its destruction during the revolution;
- the legal vacuum associated with the fact that the old rules of law lose their legitimacy, and the new ones do not appear immediately;
- the weakening of inhibitions associated with the traditions and morals. [4]
Not surprisingly, the mentioned factors can lead to an increase in the level of corruption. According to a sociological survey, at the end of 2015, no less than 60% of Ukrainians believe bribery to be the norm. More than a half (54.1%) of respondents are convinced that the government does almost nothing to fight corruption, 39.5% of the respondents believe that it does not do enough, only 3.5% said that "the government does everything in its power ". [14]
These studies of the International public organization whose mission is to fight against corruption - Transparency International Ukraine defined the top - 10 kinds of corruption in Ukraine: the first place - corruption in education (bribes in universities, extortion in the kindergartens and schools for repairs and other activities); the second place - corruption during registration of documents on the land during the privatization and allocation of land plots; the third place -medicine, extortion, making charitable contributions, charging for the provision of free services; the fourth place - corruption in the military commissariats, interviewees pointed to the sale of recruit affairs; the fifth place - the extra payments during registration of foreign passports; corruption in the housing and utilities sector; the seventh place - corruption in courts; the eighth place - corruption in law enforcement agencies, in particular complaints about the opacity of the re-certification; the ninth - corruption while border crossings in the zone of ATO (bribes for loads and extraordinary travel);the tenth - corruption in the courts [19].
Analyzing the list it can be concluded that the information does not fully reflect reality. A special feature of corruption is its latent manifestation of "conciliation" and the nature of the subjective perception of the respondents. Accordingly, it is difficult to determine by means of a poll all levels and the scale of destruction, in this case the symptoms only at the low "household" level are shown. We encounter a specified kind of corruption in our everyday life, because it covers such areas as education, health, traffic and so on. The danger of this kind of corruption is that "hitting" the main areas of social life, it becomes commonplace and norm, but be aware that the resonant in its disastrous consequences for the economy and society as a whole, is the economic corruption in the government.
The purpose of economic corruption is financial benefits, material enrichment in one form or another. In the context of the functioning of the state it is accepted to distinguish the types of economic corruption in accordance with the hierarchical levels of the state power, which it strikes.
Low economic corruption, extending to the lower and middle levels of the state power is called administrative (official, bureaucratic). Administrative corruption is defined as "the deliberate distortion of the practice of application of laws, rules and regulations for the granting the benefits to the state and non-state economic entities through illegal and non-transparent private payments to public officials" [10]. They also distinguish consumer and business corruption. Consumer corruption in this case occurs in the interaction of the citizens with authorities, institutions and officials of the lower levels of government.
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Business corruption occurs primarily in the interaction of the subjects of the private sector and other economic entities with the authorities, institutions and officials of the lower and middle levels of the government.
To indicate the apex economic corruption that affects the highest level of state power and control systems, we use the concept of "state capture". The authors of the concept of "state capture" defined it as "A form of political corruption in which a private interest significantly influences a state's decision-making processes to gain an advantage through illicit and nonobvious channels. Although similar to regulatory capture, it differs because of the wider variety of bodies through which it may be exercised "[20].
The spreading of economic corruption in the system of state power means that some officials who have public authority and the right to control the resources of power, use it for personal or group material enrichment. But in order to use the power resources, you first need to win and retain power by creating the appropriate political regime. The tool to solve this problem is also corruption, the aim of which in this case is to achieve not material but political advantage by usurping the state. In this case, the foreground is not a material benefit but political power, resource of power, ie, we are talking about political corruption.
Thus, administrative corruption is related to bribery by individuals, groups or companies of the private sector to influence the implementation of laws and regulations, and "usurpation" of the state relates to the bribe in order to influence the development and content of the laws and regulations [11]. Although conceptually these types of corruption are slightly different, they both have a significant impact on the business environment. Administrative corruption usually weakens the power of the law by undermining the government's ability to implement the laws and regulations. Both administrative corruption and state capture may have dangerous effect on economic competitiveness through restrictions to enter the market and to distribute the economic preferences among influential elites [7].
The question of political and economic influence of elites has received an increasing attention recently. The study prepared for the World Bank in 2014 by Tina Soreyd, distinguishes a kind of economic corruption as "crony capitalism" [21]. This phenomenon occurs when business success depends on close relationships between business representatives, government officials and politicians. This type of corruption is manifested in the form of favoritism in the distribution of legal permits, the allocation of government subsidies, the provision of special tax incentives and other forms of government intervention. When this phenomenon characterizes the political bureaucracy, it is also called a kleptocracy [21].
The process of merging business and government can also be seen as a special form of economic corruption. It differs from others because it is always a conflict of interests - public and private. The manifestations of this type of corruption can be observed in the cases, when the officials provide benefits to individual companies, especially because many government officials are relevant to commercial structures, both on the domestic and foreign markets. In some cases, bureaucrats almost openly combine state and municipal offices with commercial activities. The above forms of corruption have a significant impact on the economic sphere, primarily related to the activities of the so-called association of "industrial and financial group" (IFG). Officially, according to the current legislation, these legal structures were not created in Ukraine, de facto, in Ukraine,
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according to preliminary estimates, 10-15 interregional and 50 regional associations that can be attributed to this category of associations act [13]. For example, Russia could be argued that some of the principal features of the banking and industrial holdings themselves imply a conflict of interest, thus contributing to the spread of abuse and corruption. For example, the majority of directors of financial-industrial groups of the Council (FIG) is determined not so much on the basis of accounting qualification with market principles of personnel policy, as on the basis of personal relationships and dating. Cross-shareholdings of different FIG became widespread, creating a web of mutually wreathed administration without clear authority. In addition, these groups have created a system of internal loans for the purpose of monitoring the activities of the members, instead of having to rely on external sources of credit that would involve the implementation of an important function of external financial control. Also typical of the FIG is to gain access to the control of the state shares through the use of structures such as trusts [5].
To overcome these forms of economic corruption, it is necessary to take into account the revealed law, which states that "with the growth of business capitalization its degree of criminalization sharply increases." This law is called the law of criminalization of the business. Because of this pattern appears inextricable direct bilateral relationship between the shadow economy and corruption: they are inseparable from each other and give rise to each other. In this context, the fight against corruption is ineffective without the simultaneous struggle against the shadow economy.
The problems of corruption are not unique to government sector but they are in the private sector of the economy. Managers, employees and owners of businesses are also corrupt. But unlike public servants, they primarily do harm to the private company, the company they work for by abuse ofpower.
The negative effects of the economic corruption, both in the
public sector, and private can be divided into two categories: direct and indirect.
Direct losses are a budget shortfall of revenue as a result of corruption and inefficient spending of budget funds due to the same circumstances.
Indirect costs are a total reduction in the efficiency of the economy, combined with corruption. They also have two components. The first component is a loss associated with the causes of corruption. For example, administrative barriers. They lead to corruption and at the same time reduce the efficiency of the economy. The second component is losses generated by corruption itself.
Conclusions: The conducted study found insufficient reflection in domestic science and legislative documents of strategic importance of issues characterizing opposition to economic corruption as a system of state imperatives.
The most common tasks of formation of effective state regulatory framework to counter economic corruption is the following objectives of economic and legal content:
- it is necessary to form a methodological approach, in which corruption is explicated as a specific economic institutional formation;
- improving the legal framework of the prevention of the use of state property (capital, finance, natural resources) for personal and group enrichment;
- it is necessary to form a regulatory framework limits of such illegal actions in the financial field, especially banking, and the stock market (the organization of speculative foreign exchange game, creating a market panic, false entrepreneurship and false bankruptcy, resale soft loans);
- the monetary policy of the National Bank requires a fundamental change, it is necessary to forsee personal responsibility for its effectivenessin at the legislative level.
References
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ЕВРОИНТЕГРАЦИОННЫЙ ВЕКТОР РАЗВИТИЯ МАШИНОСТРОЕНИЯ УКРАИНЫ
Гахович Наталья Георгиевна
кандидат экономических наук, старший научный сотрудник ГУ «Институт экономики и прогнозирования
НАН Украины», Завгородняя Мария Юрьевна кандидат экономических наук, научный сотрудник ГУ «Институт экономики и прогнозирования НАН Украины»
В статье раскрываются проблемы развития машиностроения Украины в условиях создания ЗСТ с ЕС, а также переориентации украинских производителей машиностроительной продукции на рынки ЕС и других стран. Проанализированы основные параметры внешнеэкономической деятельности предприятий с ЕС в разрезе товарных групп и продукции машиностроения. Затронуты вопросы существующих барьеров в техническом и таможенно-тарифном регулировании. Определены основные направления расширения сотрудничества и приведены примеры из практики ведения бизнеса.
Ключевые слова: рынок машиностроения, экспорт, импорт, торгово-экономическое сотрудничество со странами ЕС.
EVROPIAN INTEGRATION VECTOR OF MECHANICAL ENEGINEERING
DEVELOPMENT IN UKRAINE
Gahovich N.G.
PhD in economics, Senior Research Officer of Department of Industrial Policy, Institute for Economics and Forecasting Ukrainian
National Academy of Sciences Zavgorodnia M. Y.
PhD in economics, Research Officer of Department of Industrial Policy, Institute for Economics and Forecasting Ukrainian National
Academy of Sciences
In the article the problem of Ukraine's mechanical engineering development in the context of an FTA with the EU, as well as the reorientation of Ukrainian manufacturers of mechanical engineering products in the EU and other markets. The main parameters of foreign trade activities with the EU in the context of mechanical engineering product groups and products were analyzed. The issues of the existing barriers in the technical and customs tariff regulation. The authors identified basic directions of cooperation expansion and cited examples of business practices.
Key words: market of mechanical engineering, export, import, trade and economic cooperation EU countries.
Подписание Соглашения об Ассоциации с ЕС и его успешная имплементация способствуют открытию европейского рынка для предприятий, а также является условиями успешности интеграции экономики Украины в мировое хозяйство. Особенно важно обеспечить включение отдельных видов деятельности в технологические цепи промышленного производства европейских стран.
Основой вхождения машиностроения Украины в высокотехнологичные цепи является его значительный потенциал, который сосредоточен на 5,1 тыс. промышленных
предприятий с общей численностью 488,8 тыс. рабочих, обеспечивает 7% реализованной продукции промышленности и имеет экспортную направленность (55,5%).
В связи с негативными политико-экономическими событиями за 2014 экспорт продукции машиностроения сократился с 10,4 до 7,4 млрд долл. США (на 28.8%), соответственно 2015 г. - до 4,8 млрд долл. США. В то же время объемы импорта продукции машиностроения за 2014 уменьшились на 35.8% и 2015 г. снизился с 12 млрд долл. США до 8,5 млрд долл. США (табл.1).
© Гахович Н. Г., Завгородняя М. Ю., 2016
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