ISSN 2 3 1 2 -2 7 7 3

ECONOMIC SCIENCE GOVERNANCE

MEDICINE ECOLOGY

CHEMISTRY AND CHEMICAL TECHNOLOGY

№17 (41 ) 2016

Science and Education Ltd, Sheffield, UK

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Editor in chief: SERG1Y YEK.IMOV

Editorial board: Technical editor:prof Vaclav Helus. CSc.prof. Jan Kuchar, CSc. Mgr. Helena Krzyzankova

prof Karel Hajek. CSc.prof. AJcna Svarcova, CSc.prof Jiri Cisar, CSc. Editorial address:prof Vcr* Winterova. CSc.doc PKDr. David Novotny, Ph.D. OFFICE 1, VELOCITY TOWER,doc. PhDr. Zdenek Sa!ac, Ph.D 10 ST. MARY’S GATE SHEFFIELD. Sprof. Pave! Suchaoek, CSc. YORKSHIRE. ENGLAND. S) 4LRprof. Katarzyna Hof'mannova, CSc.prof. Vaclav Gryjeir. CSc.prof. Zuzana Syilova. CSc.prof. Alena Sandcrova. CSc.prof Marek Jerabek, CSc.prof. Vera Perinova. CSc.prof. Ing. Karel MarsaJck. M.A., Ph.D.prof. tag. Jiri Sinolik. M.A., Ph.D.

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Date signed for printing, 25.04.2016Publisher: Science and education L TD

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CONTENT

E C O N O M IC S C IE N C E

O rtin a A.IN N OVA TION A N D IN V ESTM EN T SU PPO RT FOR CLUSTERS AS A ST R A T E G IC G O A L O F EN TER PR ISES DEVELOPM ENTIN THE R E A L SE C T O R O F T H E U K R A IN IA N EC O N O M Y ............................................ 5M ark ow ch l.B .PO LITICA L A N D EC O N O M IC IN STITU TIO N S -BASIS A N D C O N S E Q U E N C E ......................................................................................................10Bissenova R.A.THE A C TIV ITIES O F C O M M E R C IA L BANKSIN THE FIN A N C IA L M A R K E T S .......................................................................................... 14Petrova Y .A ., Pryadko R.D.FIXED A S SE T S A C C O R D IN G TO IFRS IN RUSSIA AND A B R O A D ..................... 17Lavruk V .V.FO RM A TIO N OF T E C H N IC A L U PG R A D IN G FOR AGRI-FOODAN IM AL P R O D U C T IO N ...............................................................................................................20Kudrina O.Y.FO RM A TIO N O F C O M PE TIT IV E AD VAN TA GES OF INDUSTRIALEN TER PR ISES IN C O N D IT IO N S OF G L O B A L IZ A T IO N ............................................. 27F ed o ro v a T ., B evz T .FO RM A TIO N A N D D E V E L O PM EN T PROSPECTS OF FREELANCE IN U K R A IN E .........................................................................................................................................31

G O V E R N A N C E

Zhovnirchvk Y .F ., K ach nyi O .S.IM PR O V E M E N T O F PU B LIC RE G U L A T IO N OF SUSTAINABLED E V E L O PM EN T IN TH E R E G IO N ..........................................................................................36Hrvtsiko R ., F urtak J.IN FO R M A TIZ A T IO N O F M O D ER N SOCIETY:STATE, PR O B L E M S , P R O S P E C T S ....................................................................................... 43S h isto p a l J .M .Q U A L ITA TIV E A S S E SS M E N T OF O R G A N IZA TIO N A L M ECHANISM S OF PU B LIC A D M IN IS T R A T IO N IN C O N TIN U O U S EDUCATION SPHERE IN U K R A IN E ..................................................................................................................................... 5 T

M arkovych I. B.

POLITICAL AND ECONOM IC INSTITUTIONS - BASIS AND CONSEQUENCE

The use o f the term institution has becom e w idespread in the social sciences in the last decades. This term becom e usual not only for econom ic sciences, but fo r the philosophy, sociology, politics, and geography as well.

Institutionalism attracts the attention o f m any researchers, such as R. C oase. D. North. E. Ostrum, A. V ilyam son, W eber, John. M arsh etc.

A characteristic feature o f institutionalism is its in terd isc ip linary and im pressive set o f options research objects, attracting the attention o f m any researchers and sc ien tists. A lso intensive discussions are connected w ith not only form al bu t also inform al institutions which has som etim es controversial im pact ort econom ic grow th o f the state.

The link between econom ic and political institu tions is qu ite am biguous. Som e authors argue that the basis o f the form ation o f effective econom ic institu tions are always political institutions.

M echanism o f the re la tionship betw een elem ents o f the institu tional env ironm en t and their consequences is show n on the f ig . l .

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Figure 1. R elationship betw een elem en ts o f the in stitu tion a l en v iron m en t and their consequ en ces

Source: [1, p .6]

The two state variables are po litica l institu tions and the d istrib u tio n o f re so u rces, and the knowledge o f these tw o variables a t tim e t is su ffic ien t to d e te rm in e all the o'.her variables in the system . W hile po litical institu tions de te rm in e th e d istribu tion o f de jure political pow er in society, the d istribution o f reso u rces in flu en ces the d is tr ib u tion o f de facto political pow er at tim e t. T hese tw o sources o f p o litica l po w er, in turn, affect the choice o f econom ic institutions and in fluence the fu ture ev o lu tio n o f po litica l

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Economic science17 (41) 20lb

News o f Science and Education 1 7 (41)2016 ❖

in stitu tio n s . E conom ic institutions determine economic outcomes, including the aggreg a te g row th ra te o f the econom y and the distribution of resources at time t + 1. Alth ough eco n o m ic institu tions are the essential factor shaping economic outcomes, they are th em se lv es endogenous and determined by political institutions and distribution of reso u rces in soc iety [1, p .8].

T hus, th e re la tionsh ip betw een political and economic institutions are usually co n sis ten t, th a t confirm s the idea that the economy traditional is a derivative of policy.

U su ally , the institu tions are the consequences o f previous stages of social d ev elo p m en t and can b e considered largely inertia and «outdated» comparable to the p re sen t tim e. F o rm ed in th is way, institutions, on the one hand, constrain excessive and un ju stified in n ovation o f individual subjects, on the other - are stabilizers o f economic and soc ia l con trad ic tions.

Political institutions are stable enough and we can dearie see features of conserva ive effect, ie difficulties in changing the main direction of development. Such inertia of political institu tions som etim es can be a major obstacle to dynamic economic growth state.

S tro n g fo rm al institu tions are one o f the elements o f the system of public co n fid en ce in the state o f possible action in the case o f deterioration in the quality of life. In th e face o f extrem ely inert institutions or the low level o f efficiency in order to confirm th e s ta tu s o f a paternalistic society can be triggered by arrangements aimed at im prov ing liv in g standards by increasing the tax burden on businesses and extensive rep len ish m en t.

A s a resu lt o f inefficiency o f the state strengthen manifestations o f so-called « m arket fa ilu res» . T he m ain «m arket failure» requiring state correction, are as follows:

- in co m p le te com petition:- co o rd in a tio n failures (com panies in their decisions may be guided solely by their

ow n in terests, « forgetting» about the social aspect o f work);- in fo rm atio n asym m etry;- the d ifficu lty assessing the value o f public goods, etc.It is c le a r that its im possible completely eliminate these signs of social

d ev e lo p m en t, bu t th e state has at its disposal some balancing and control instruments p e rfo rm th e ir functions.

H o w ev e r to e lim inate negative aspects o f states activities, there is importance of fo llow ing th e no n -in crease w ithout the need o f its functions. This principle K. Popper calls « razo r liberalism .»

F o r the su ccess o f the state is necessaty to obtain power, that is bigger than citizen s o r o th e r in stitu tions and organizations obtain, in addition to that price for the protec tio n o f c itizen s turned ou t to be not too large [2, p. 510-513].

In o th e r w ords, political institutions form the basis o f aggregated institutional e n v iro n m en t o f sta te , they m ay play role o f an accelerator and «pusher» o f socioeco n o m ic re fo rm s o r com pletely block them.

❖ 1 7 (4 1 )2 0 1 6 Economic sciences a a a a s a a s a i i i M i

Nowadays, institutions are the weakest spot of the competitiveness o f U k ra in ia n economy. This result is one of the worst not only in relation to the E U and other d e v e loped economies, but also in comparison with the closest neighbors (Figure 2).

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Fig. 2 Reviews of components the Global Competitiveness Index 2015-2016,Ukraine

Source: [3]

The influence o f institutions on the economy la r g e ly d e p e n d s o n th e s ta g e o f eco nomic development is the country. WEF identifies three s ta g e s o f e c o n o m ic d e v e lo p ment: first - focus factor, the second - focus on e f f ic ie n c y , th e th i r d - th e fo cu s on innovation. Countries whose economies are between tw o o f th e th r e e s ta g e s , a cco rd in g to the definition WEF, are the «country o f transition».

On the first stage of economic development (factor orientation) e c o n o m ic grow th depends on the basic factors that united into such four components: p u b lic a n d p riv a te institutions; infrastructure; the macroeconomic environment; health a n d p r im a ry education .

One of the determinants o f institutional quality is efficiency in th e p u b lic sector, which has two aspects: efficient administrative services and a s ta b le p o lic y env iron ment. Administrative efficiency implies a lack o f unnecessary red t a p e in b u s in e ss processes such as the collection o f taxes, compliance with regulations, o b ta in in g perm its, and the judicial system; there is empirical evidence that: burdensome b u reau c racy decreases investments and firms’ efficiency [3].

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Jt is also necessary to clearly understand the importance o f social institutions in econom ic developm ent. In the relationship o f government and business structures a p ow erfu l pub lic takes an intermediate position, which can become a strong driving force to dram atic changes in all society.

In developed dem ocracies the public has leverage both public institutions and on th e princip les o f form ing business processes.

T he problem o f interaction o f public authorities with civil society is m ultid im ensional in nature. Quite often you can hear about the efficiency of the tripartite partnership «govemment-public-business». Members partnership can be considered as separate institutional units that have similar economic objectives, functions and behavior.

A isha G haus-Pasha allows that the civil society sector falls in a conceptually comp lex social terrain that lies mostly outside the market and the state. For much of the recen t history, social and political discourse has been dominated by the ‘twosector m o d e l’ that acknow ledges the existence o f only two actors - the market (for profit p rivate sector) and the state [4, p.2].

The state's role in the process o f developing an effective partnership is reduced to form ing legal and regulatory framework that will enable businesses and the public most actively use the opportunities offered by their socio-economic environment. Of course, this is only possible i f willingness to innovation «radicalism» of all partnership members.

Literature:

1. A cem oglu D. Institutions as the Fundamental Cause o f Long-Run Growth / D .A cem oglu, S. Johnson. J. Robinson. NBER Working Paper No. 10481 M ay 2004,- 111 p.

2. Popper K .R . Conjectures et Refutations / K.R. Popper // La Croissance du Savoir Scientifique, Volum e 4 Numero 1, 1985, 610 p.

3. W orld Econom ic Forum [Electronic resource] http://reports.w eforum .org/global-com petiti veness-report-2015-2016

4. G haus-P asha Aisha. Role o f Civil Society Organizations in Governance / A isha G haus-Pasha // United Nations Public Administration Network. 6th G lobal Forum on Reinventing Government Towards Participatory and T ransparen t G overnance 24 - 27 May 2005, Seoul, Republic o f Korea, Decem ber 2004, 45 p.

http://reports.weforum.org/global-competiti