Serhij Pakhomov. Features of Ukrainian institutional environment formation

Abstract

The article deals with the basic problems of formation of the new socio-economic system in Ukraine. Key issues of the Ukrainian effective institutional environment establishment in the period of independence, which include such negative features of the Ukrainian mentality as distrust of big business, paternalism and humiliation of man to the state, are analyzed. The main reasons of failures in implementation of most liberal "market" reforms that were carried out on the basis of the importing institutions strategy are revealed. The growing role of social and economic institutions during the deepening of production processes complexity, which manifests itself in a growing differentiation and specialization of production, is grounded. The efficiency parameters of institution building in reforming society and negative consequences of low building efficiency are revealed. The contradiction between the development in society of the informal rules imposed by it and, though potentially more effective, the formal rules that were born within another institutional system is analyzed. The necessity to liquidate the dual morality, which is generated by the synthesis of informal norms and formal rules, is outlined. The variants of effective institutional reforms in Ukraine that will help to reduce transitive costs during the transition to a market economy are suggested. Seeking for institutional exporters and reformation of formal institutions according to informal rules are identified among such variants