Научная статья на тему 'STRATEGIC PRIORITIES OF INCREASING GLOBAL COMPETITIVENESS OF UKRAINE'

STRATEGIC PRIORITIES OF INCREASING GLOBAL COMPETITIVENESS OF UKRAINE Текст научной статьи по специальности «Экономика и бизнес»

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competitiveness and innovation / industry / national economy

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Kudrina O.Y., Liskovetska T.P.

The article examines trends in the development of Ukraine's competitiveness in the context of current economic realities. The main problems hindering and delaying the development of competitiveness are revealed, Ukraine's position in the world rankings are studied, recommendations on the intensification of the competitive position of the country are suggested. The innovation policy of the country is analyzed, the basic task of restructuring the national economy on scientific principles is determined.

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Текст научной работы на тему «STRATEGIC PRIORITIES OF INCREASING GLOBAL COMPETITIVENESS OF UKRAINE»

conditions power and control bodies, enforcement authorities take measures, aimed at providing perfect fulfilment of tax and collections legislation7.

Thus, tax offense presents itself a legally constructed model of typical signs of guilty counter-law action, breaking the legislation on taxes and collections and for what measures of responsibility are set be the Tax Code of the RF. It should be noted that the tax legislation in its part of regulating tax offenses still contains contradictions, requiring removal by the way of bringing alteration to the RF Tax Code.

References

1. Tax Code of the Russian Federation (part one) from 31.07.1998 no. 146 the Federal Law (as amended. on 03.07.2016) // the Russian newspaper. no. 148-149. 06.08.1998.

2. Amiralieva D. M. Tax advice as a way to combat tax offenses // In: Economy and banking system: the theory and practice of correspondence materials of the

international scientific-practical conference. "Dagestan State University"; "North-Caucasian Federal University"; "Financial University under the Government of the Russian Federation", 2016, pp 33-37.

3. Bobkov V. A. Tax offenses and responsibility for their commitment // Science and Society, 2014, no. 3 (18), pp. 38-41.

4. Malinovskaya V. M. Tax offenses and tax liability // Laws of Russia: experience, analysis, and practice, 2015, no. 8, pp. 3-14.

5. Sharipova L. E., Valieva F.K. Tax offenses in Russia // Electronic scientific journal, 2015, no. 3 (3), pp. 246-249.

6. Vorobyov S. D. Combating crimes and offenses in taxation // Law, 2013, no. 3, pp. 3-5.

7. Voronov A.M., Gogolev A.M. Questions of accountability for tax violations in the mechanism of tax administration // Moscow University Russian Interior Ministry, 2016, no. 7, pp. 74-77.

STRATEGIC PRIORITIES OF INCREASING GLOBAL COMPETITIVENESS OF UKRAINE

Kudrina O. Y.

D.Sc. (Economics), professor of the Department of Economics and Business,

Makarenko Sumy State Pedagogical University

Liskovetska T.P. PhD in economics, associate professor, Kyiv National University of Culture and Arts

ABSTRACT

The article examines trends in the development of Ukraine's competitiveness in the context of current economic realities. The main problems hindering and delaying the development of competitiveness are revealed, Ukraine's position in the world rankings are studied, recommendations on the intensification of the competitive position of the country are suggested. The innovation policy of the country is analyzed, the basic task of restructuring the national economy on scientific principles is determined.

Keywords: competitiveness and innovation, industry, national economy.

Ensuring the competitiveness of the national economy is one of the priorities of state economic policy. Today the economy of Ukraine is undergoing major transformational changes that lead to the objective necessity of building effective market institutions, the formation of the business environment at the national and regional levels, in which entities would be able to increase its long-term competitive advantage, increase employment and living standards of people. The economic potential of the state, in case of its effective use, is the basis of their high competitive status. Given this, empirical modeling of industrial competitiveness of Ukraine by evaluating their economic potential and development on this basis of strategic priorities for improving the global competitiveness of our country is extremely important.

Increased globalization in the world, actualization of the competitive rivalry, creating competitive advantages, firstly, push forward the country's state policy towards improving and creating conditions to ensure competitiveness, and secondly, make addressing these issues difficult.

Analysis of recent research and publications. The country's competitiveness problems are the focus of researchers for decades. The theoretical basis of the research are works of economical science classics in the market economy and competition, particularly Adam Smith, David Ricardo, Karl Marx, George. S. Mill, A. Marshall, P. Sraffa, J. Robinson, E. Chamberlin, M. Porter, I. Ansoff, A. Thompson.

The purpose of the article - to analyze the main reasons for low competitiveness in the conditions of globalization of most countries, especially in post-Soviet, and the rationale for the system of strategic upgrades.

The main results of the research. Since the end of the twentieth century there have been dramatic changes in the world economy. They are related to globalization and regionalization, antagonism trends forming singlepolar and multi-polar world, increased competition.

The first two trends appear as opposites. Globalization leads to the elimination of frontiers in economic processes, increasing mobility of labor and capital, development of uniform standards and norms.

7 Vorobyov S. D. Combating crimes and offenses in taxation // Law, 2013, no. 3, pp. 3-5.

Globalization leads to increased competition at both the global and at the country, sector, region levels of economic system. Formation of industrial competitiveness is one of the national priorities. But in this conversation context the logical question arises: What competitive advantages are economic system of Ukraine, its regional industry and enterprises are endowed with?

According to experts, the scale of the crisis in Ukraine proved to be one of the highest in Central and Eastern Europe, which was predominantly due to the lack of reforms in the national economy.

In Ukraine, the change from state command-centralized system to a market system economy was made simultaneously accompanied with changes in economic, political and social systems and public administration. In Ukraine, along with these changes there was an unprecedented demilitarization of the economy, the elimination of one of the world's most powerful military-industrial complex, the radical restructuring of the system of agro-industrial complex, education, health, culture and science. This unprecedented global transformation experiment became particularly concentrated in Ukraine, the country passes it hard and with heavy losses, serving the world as a global laboratory of mainly negative experience [1].

In the early years of independence the government of Ukraine, despite the extremely difficult economic and political conditions, had to make a historic, transformational, civilization level breakthrough and did not realize it:

1) competitive transition from a state-centralized to a market economy;

2) efficient development of the business (in the form of small and medium enterprises), which would give 70-80% of GDP and would be a transitional form of capitalism;

3) gradual productive and competitive integration of economies and economic systems of transitive (especially post-Soviet) economies in the new global economic, not just in the market system.

This was the reason Ukraine had insufficient resources and instruments to combat the crisis as opposed to the more successful and developed countries. In addition, the high level of integration in the world economy make the national economy highly dependent on positive and negative global economic trends.

The revival of Ukraine's economic power depends on the stable development of the basic industries of the national economy, including the effective restoration of the original parts of the economy - industrial enterprises. Current status of the majority of Ukrainian companies did not meet their natural and intellectual potential. Competitiveness of Ukrainian industrial production is much lower than the level of international standards, which determine the production and commodity market delivery of products made by companies in developed capitalist countries.

Today the basis of Ukrainian industrial complex are industries that are focused on low-tech production and export of raw materials. The current model of economic development is very clearly proved its inadequacy and exhaustion of traditional possibilities of

forming an appropriate place in the competitive global market, moreover, inefficiency of the current model leads to the deepening and aggravation of the crisis, increasing technological gap of Ukrainian industrial complex.

Ukraine acutely faced the problem of a fundamental structural modernization of the state economy. Among the main tasks of economic modernization of Ukraine - increase of competitiveness.

According to global competitiveness ranking for 2015 published by the analytical group of the World Economic Forum (WEF), Ukraine has lost 3 position and descended from 76th (in 2014) to 79 th among 140 countries. Neighboring places are Guatemala (78th) and Tajikistan (80 seats). Switzerland tops the list, in second place - Singapore, third position - US, Germany - fourth place and the fifth - the Netherlands. The second top five, respectively, Japan, Hong Kong, Finland, Sweden and the United Kingdom [3].

Also, the results in 2015 show that Ukraine has several competitive advantages for innovation. Ukraine ranked 29 in the ranking of the availability of scientists and engineers, 43 - the quality of research institutions and 50 - the number of patents. It is obvious that innovation is potential for growth. For this, the effort of the state and business is necessary: to increase government procurement of high technology products (currently Ukraine is 98th) and to improve cooperation between universities and business in innovation and science (74 th). [3]

Today the state strategic innovations determine the level of competitiveness and contribute to economic security. Innovations are extremely important for the country - they make its economy more efficient, increase export potential, improve the quality of citizens' life, raise prestige on the international arena.

In today's globalized world economy, countries, which have innovations, occupy leading positions in relation to economic and social standards of life. Innovations are embodied primarily in industrial production. The development of any enterprise is impossible without development of strategic activities, that is based on innovations and have an innovative direction. Actually, innovative production is one of the most important factors determining the success, financial stability and competitiveness of the enterprise in the market environment. This factor takes special attention in market transformation of the national economy, where innovation should be seen as a resource for improving product competitiveness of individual businesses, industries and industry in general, not only domestically but also internationally.

The experience of the modern economy of developed countries shows - the growth can not be sustainable without innovations and technological upgrading, according to various estimates, using innovations provides 75% - 100% increase in industrial production.

One shall not be particularly convinced that, despite the availability of resources and powerful environment for development through innovative backwardness and thus low competitiveness of industry, Ukraine is not a serious player on the world stage.

Inefficient use of own innovative capacity in particular, has turned Ukraine into the export-oriented country , a state that produces and sells products in foreign markets with low added value.

Instead, countries with poor resources, but with a high level of application of innovative technologies -are leaders in the list of most competitive countries.

Global Innovation Index is one of the most interesting. This rating is being made by Cornell University, renowned business school INSEAD and the World Intellectual Property Organization.

The top ten global innovation indexes among 141 countries in terms of innovation for 2015 were: Sweden (68.3), UK (62.2), Sweden (62.4), the Netherlands (61.58), USA ( 60.1), Finland (59.97), Singapore (59,36), Ireland (59.13), Luxembourg (59.02), Denmark (57.7).

A little behind them are developed countries like Hong Kong (57.23), Germany (57.05), Iceland (57.02), South Korea (56.26), New Zealand (55.92), Canada (55, 73), Australia (55.22), Austria (54.07), Japan (53.97), Norway (53.80). Ukraine occupies 64th place with an indicator of innovation 36.45, ahead of Mongolia (66) and the Seychelles (65) [4].

For comparison, last 2014 year Ukraine ranked 63d position. If you look at the dynamics of Ukraine in the ratings in recent years, the country held more or less the same position. That, given the current military, information, economic and political aggression against Ukraine, is an indication of the huge potential.

The current economic crisis in Ukraine demonstrates its depth and unexpectedly high rate of deterioration of the national economy. Alarming are material circumstances of decline associated, primarily, with reaching a critical level of industrial capital's aging and that overcoming this conditions today is extremely complex and difficult.

Current status of the majority of Ukrainian enterprises does not meet their natural and intellectual potential. Competitiveness of Ukrainian industrial production is much lower than the level of international standards, which determine the production and commodity market delivery of products made by companies in developed capitalist countries. Socio-political and economic changes that take place in the country in recent years, greatly complicated the impact of business relations between both interukrainian and among Ukrainian and foreign industrial enterprises. In these difficult economic conditions the industry's economic recovery is not possible without reformatting strategy of resource potential of enterprises, not least due to the intensification, the search for internal resources to run the production cycle of enterprises.

Analysis of the actual state of Ukrainian economic development makes it possible to conclude that the restructuring of the economy after industrial desolation can not be done quickly. For this, a long-term comprehensive systems approach is needed, using solid fiscal and monetary policy, the transition to new technologies and the replacement of fixed facilities (preferably - on the national technological base). The problem is to make effective basic sectors of the economy, creating

the lion's share of the state's GDP, providing parallel development of infrastructure sectors [1].

Real modernization of Ukraine's economy requires considerable intellectual, economic and administrative efforts and includes a variety of activities, such as: a comprehensive promotion of knowledge-intensive sectors of the economy, the replacement of worn-out capital, improve the efficiency of processing industries, development of infrastructure industries (transport, connections, communications), security of economy's energy efficiency, diversifying sources of energy and use of its renewable sources, development of nano-, bio-, nuclear, space technologies and telecommunications, the widespread use of new information technologies.

Innovation activity of industrial enterprises characterized by indicators such as the introduction of new technological processes and development of new types of products. In the period from 2007 to 2011 the number of new implemented processes increased from 1419 to 2510 units respectively, but in 2014 it decreased to 1743. The development of innovative production tends to reduction, so in 2014 the industrial enterprises of Ukraine commercial production created 3661 kinds of new products, seven times less than in 2002, when it was created 22 847 types of innovative products. In 2014 innovative activity in the industry involved 1208 enterprises, or 12.1% of surveyed enterprises (in 2013.

- 1715 enterprises, or 16.8%). Among the regions the share of sales of innovative products, higher than average in Ukraine, has been Sumy, Poltava, Transcarpa-thian, Kherson, Ivano-Frankivsk, Kharkiv and Kiro-vohrad region [2]. For comparison, in the US, Japan, Germany and France the share of innovative enterprises is 70-80% of the total.

According to the State Statistics Service of Ukraine, in 2015 the number of innovation active enterprises was 824, and only 11 received financial support from the state budget. In order to implement innovations, 181 companies acquired 1131 new technologies, of which 66 - outside Ukraine. Of the total number of purchased technology: 439 - along with equipment, including 43 - outside Ukraine; 393 - as a result of research and development (12); 120 - contracts for the purchase of patent rights, licenses to use inventions, industrial designs, utility models (8); 37 - the agreements for the purchase of technology and know-how (3); 129

- along with targeted recruitment of qualified experts [2].

The statistical data shows that innovative activity of industrial enterprises significantly decreased in recent years. It is shown by the average rate of innovation, which does not exceed 5% in Ukraine. This figure shows the percentage of company profits allocated to the modernization and introduction of new technologies and should be more than 15%.

The attention should also be paid to the fact that today we rely on innovation as a panacea for the financial crisis, unable to be a major factor for economic growth breakthrough - it simply lacks appropriate conditions. Prolonged economic crisis, backward production alienate the purpose to achieve a high level of com-

petitiveness, and lack of supply, in turn, inhibits the formation of demand. It's no secret that high-quality professionals are not always altruists and are not willing to work for minimum wage and declining social package. Today, only large international companies can make such proposals, so the number of required professionals working abroad is thus desolating human potential of the country. This is a characteristic of many technologically lagging countries. Unfortunately, Ukraine is no exception.

In the modern transformation maze, each country has its critical, the only effective and competitive way of development, which must be found and put in the basis for the national development strategy. Global fate of every country depends on its able to find not a chaotic way, but consistent, systemic, synergistic development model - a model of global integration. The highest imperative for such integration is Ukraine's strategic system modernization.

The problem of our country's competitiveness in the global world can be solved only through intellectu-alization of social and economic development. Despite the crisis of transition state, standing on the path of modernization and democratic solidarity of society, Ukraine will receive the opportunity to provide accelerated, proactive, qualitative growth even in the toughest conditions of globalization.

As pointed out by Professor O. Bilorus, there are no underdeveloped countries, there are underdeveloped and unproductive states and governments.

The conclusion from the above is clear: to enhance Ukrainian industrial development, the government should adopt the basic rules in state support for businesses. This would send a clear signal to Ukrainian and

foreign manufacturers for readiness to develop the national market on the basis of competition.

State support of potential export enterprise is the foundation for creating modern production that meets world standards, adopting new knowledge, technology and management principles, improving employment.

The country will need to go through a long process of building the necessary innovation system, and only in a couple of decades we will get the opportunity to step on the path of innovative development, namely creating something "radically new" in the state. We must also opt technologies to borrow, that we will be able to learn at the moment and with the help of which we can go forward.

References

1. Bilorus O. Проблеми глобально! модершза-цп та iмперативи неоiвдустрiалiзацii транзитних кра!н [Online resource]. - Access : http ://soskin.info/proj ect/uncp/ukr/ch2/d2/2012/n9 -10/20122.htm

2. 1нновацшна дгяльшсть промислових тдпри-емств у 2014 рощ [Online resource]. - Access: / http://www.ukrstat.gov.ua

3. Укра!на у рейтингу глобально! конкуренто-спроможносп 2015 [Online resource]. - Access: http://reforms.in.ua/ua/news/ukrayina-u-reytyngu-globalnoyi-konkurentospromozhnosti-2015

4. The Global Innovation Index 2015 Effective Innovation Policies for Development [Online resource]. - Access: http://www.wipo.int/edocs/pubdocs/en/wipo_gii_2015 .pdf

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