Legal mechanisms of anti-crisis regulation of economy

Abstract

The most urgent task facing Ukraine is the development and
implementation of effective urgent economic reforms that will ensure long-term
competitiveness of domestic enterprises.
Recent research and publications analysis. Problems of state regulation of the
economy in sectoral and intersectoral sense last time were investigated by scientists,
including such as A.V. Batura, A.U. Bytyak, R.P. Boychuk, R.V. Waxman, S.V.
Glibko, A.M. Davydyuk, K.V. Ephremova, D.V. Zadyhaylo, D.D. Zadyhaylo, M.N.
Kuzmina, V.S. Kravtsiv, V.A. Lushkin, V.K. Mamutov, Y.I. Ostapenko, V.M.
Pashkov, V.A. Ystimenko, T.I. Shvydka and others.
Paper objective. This publication is planned to define some basic
macroeconomic problems of domestic economic sphere and on the basis of this
analysis suggest the complex of anti-crisis management.
Paper main body. History tells us that the formation of a mixed economy based
on a new technological paradigm is possible only with the active state regulation of
the economy, since deregulation in crisis is perceived as maximum assistance for
monopolistic enterprises and multinational corporations, which, according to «market
failures» are not interested in investing to technological basis of the national
economy. In the absence of industrial policy as priority areas in Ukraine were
declared supporting for agriculture and energy, but extensive approaches to providing
such support will remain unchanged. Moreover, without new industrialization and
innovation policy within the state's economic strategy, it would be impossible to
satisfy even the current complex of socio-economic needs. As the world moves to a
new, sixth technological structure, at this time it is rather difficult for leaders of the
previous structure to retain the championship, because of their dependence (risks of
impairment) on the excessive concentration of capital in an obsolete industry. From
this position states that develop can easier concentrate resources on breakthrough
growth areas.
In our view, the key problem of the national economy is a lack of cheap and
long-term loans to finance business projects in the real sector, and therefore we
should pay attention to the following pattern: on the one hand, devaluation can be
seen as a way to combat import and export promotion, but on the other hand, in the
absence of production facilities and competitive offers, devaluation will not create
interchangeable adequate supply. Along with the analysis of the shortcomings of
foreign investment to Ukraine and fundamental economic and legal factors that
prohibit foreign investment, were explored ways how to grow the economy through
foreign investment: attracting of assets and stimulation of migrants remittances.
Conclusions of the research. So, in the following article were developed
coherent legal mechanisms of anti-crisis regulation of the economy, such as:
structural economic reform, which provides independent entities, that are capable to
function effectively in the long run and produce competitive products for foreign
markets, attract investment, with a simultaneous decrease in the profitability of
traditional business spheres; compulsory saving state owned blocking stake in
strategic enterprises (constitutional law level); adopt basic constitution guarantees of
foreign investment and restrictions on foreign investment if it is caused by the
protection of the constitutional system and public health; prohibition of deregulation
regarding supervisory functions of the state aimed at protecting public health and
economic sovereignty; put a law on strategic planning; use of anti-crisis exchange
control; lowering the refinancing rate to a level that corresponds to the average rate of
return of manufacturing industry (further reduce the rate according to the economic
activity).
Аbstract: This article explores the main macroeconomic problems of national
scope entities that affect the microenvironment, statistical data and international
experience. Attention is drawn to trends in legal support of economic relations,
incentives and restrictions of foreign investment. The author offers a range of
strategic and tactical legal mechanisms for crisis management of the economy, which
should be immediately implemented in Ukraine.