RESTORATION OR MODERNIZATION: MODELS OF RECONSTRUCTION OF UKRAINE AFTER THE WAR

Abstract

The article analyzes options for the post-war reconstruction of Ukraine's economy, which should take into account the previous path and experience of modernization of the national economies of Western Europe and Asia gained by Ukraine, the consequences of inversion-type market transformations.

What Ukraine needs is not recovery, but rather modernization based on economic freedom. It is advisable to apply a tripartite model of control over the use of funds for the modernization of the country: civil society - business - the state with foreign partners. Ukrainian need significant updates (judicial reform provides real opportunities to protect business, the tax reform systematizes the financial activities of enterprises, stabilizes the functioning and reduces the pressure on business, carrying out privatization, in particular with the involvement of foreign capital, legislative changes, effective credit mechanisms).

Modernizing the economy and creating new opportunities for business will require solving old and new problems. In order for a foreign investor to want to work in Ukraine, it is necessary to create conditions that provide businessmen with transparent and understandable rules of the game. Therefore, it is necessary not only to change the legislation, but also to overcome corruption by providing guarantees of protection to domestic and foreign investors. Leading economists of the country and the government need to postulate and implement a modernized national economy, and not rebuild it at the previous level. The economy of Ukraine must undergo effective structural reforms and high-quality state regulatory measures.

It is worth noting that the structure of our state cannot be rebuilt and restructured quickly, because the basis is formed by industries, the successful functioning of which in developed countries is ensured by significant state subsidies. Therefore, the phased restructuring with a constant change of priorities in the development of individual sectors of the country's economy will continue for a long time. However, there is no alternative, since the stability of the war economy, the viability of society, the combat effectiveness of the troops, and therefore national security in general, depend on the stable development of industrial policy during the war period.