WHICH MODEL OF SOCIO-ECONOMIC DEVELOPMENT SHOULD BE DEVELOPED IN UKRAINE? A. SMITH, D. RICARDO, M. FRIEDMAN... OR F. LIST, J. SCHUMPETER, E. REINERT?

  • Ivan Topishko Department of Economic Theory, Management and Marketing The National University of Ostroh Academy
Keywords: neoliberalism, nationalism, protectionism, free trade, socio-economic model, shock therapy, Washington consensus.

Abstract

In this article we made a comparative analysis of the A. Smith’ "invisible hand" concept and the main ideas of contemporary neo-liberalism and the theories of F. List, J. Schumpeter, E. Reinert. It is concluded that the neoliberal concepts of economic science as the theoretical basis of economic policy and socio-economic model are unacceptable for modern Ukraine. Under these specific conditions, economic policy should be based on the principles of theories of F. List, J. Schumpeter, E. Reinert, J.M. Keynes and of Western European social democracy.

The reform of the socio-economic sphere of Ukraine, in accordance with the principles and recipes of the IMF and the Washington Consensus, led to the rapid de-industrialization, firstly destruction of the most high-tech industries and productions, followed by the industries and productions of the traditional manufacturing industry (production of textile, clothes, footwear etc.). At the same time, all these years took place the processes of agrarianization of the economy. The usage of monoculture production in the framework of agrarianization was rapidly growing. Liberalization has also led to a massive leakage of capital abroad from Ukraine, a significant reduction of jobs, an increase in unemployment and a sharp increase in Ukraine's external debt.

It is necessary to refuse to carry out policy of free trade and to proceed to the implementation of a policy of moderate protectionism. In order to overcome deep socio-economic and political crisis, it is necessary:

  • to develop science-intensive, high-tech industries and productions on the basis of the support of fundamental and applied scientific research;
  • to restrict the import of traditional industries products and to create preconditions for the revival of these industries in Ukraine;
  • to take urgent measures to stop capital leakage;
  • to change substantially the distribution and redistribution relations of the social product in order to stimulate economic growth and to establish the principles of social justice.

In the article change of model was considered not only as the solution of internal socio-economic problems, but also as the change of the country's position in the system of world economic coordinates, foremost overcoming the actual colonial status, raw material appendage for the economies of more developed countries.

Author Biography

Ivan Topishko, Department of Economic Theory, Management and Marketing The National University of Ostroh Academy

PhD in Economics, Associate Professor 

Published
2017-10-23