INSTITUTIONS FOR DEVELOPMENT IN SOCIO-ECONOMIC SYSTEM OF MODERN UKRAINE

Abstract

Topicality. The actuality of problem is due to the fact that over the years of the Ukrainian economy transformation, market institutions have been created, and development institutions have not.
 Aim and tasks. The aim of the study is to identify the basic institutions that promote development, and to study the specificity of their functioning in modern Ukraine. Research results. Research shows that in the institutional system of developed countries, the main social institution that initiates progress of the economy is trade union. Trade unions are seeking for a wage increase that encourages employers to introduce in their enterprises inventions that supplant labour, to raise the technical level of their companies. The creation of such trade unions in modern Ukraine is difficult, because this institutional niche is already occupied by trade unions inherited from the Soviet system, where they did not solve the problems of labour cost and working time, their activities were limited to mass cultural work. This is what they continue to do in modern Ukraine. This conclusion is based on a study of the status of collective labour disputes, wage arrears and real wage movements for the period 2013-2018. Comparison of these indicators shows that with a marked fall in real wages and rising debt, protest activity in the labour market did not increase. Ukrainian labour collectives very rarely use such form of resolution of labour conflicts as a strike. Despite the deterioration of the financial status of workers during this period, even the number of hours not worked on average per worker involved in the strike is insignificant. And in 2017, when statistics recorded the maximum number of businesses and organizations that went on strike, that is, 23, the average number of hours not worked per strike worker was only 66. Note that in 2015, extreme in terms of deterioration of the financial status of persons employed, the number of unresolved labour disputes decreased to a minimum value of 34.8% for the whole studied period. It is also significant that only one collective labour dispute was resolved in 2013 and one in 2015 as a result of the strike. Such paradoxical evidence that the deterioration of the financial position of workers, the growth of unresolved labor conflicts and demands of workers does not lead to an intensification of the struggle of trade unions and the radicalization of their actions, indicate that trade unions behave is radically different from the way known in developed countries. Economic development largely depends not only on economic institutions but also on political ones. Political parties are the most important among them. Political parties in Ukraine have not yet formed as ideological organizations. This has made political parties such a social institution that has little influence on economic development. Thus, in the modern institutional system of Ukraine, the main social institutions, that are trade unions and political parties, have little influence on economic development. Сinclusion. Changes in the institutional system are possible only if there are social forces interested in such changes and able to implement them.