Investigation of advantages of outsourcing of independent fiscal institutions in the countries of peripheral capitalism

Liudmyla Hatska

doi:10.15587/2312-8372.2017.113272

Abstract

The article shows that the periphery of Ukraine's development is determined by the imperfection of state institutions, including fiscal ones. It is established that the defects of fiscal institutions are related to the fact that the process of institutional transformation in Ukraine is under the excessive influence of the oligarchic and political elite and reflects primarily its interests. This creates a deficit of effective institutions serving the entire society, and not just its privileged part.In order to find ways to overcome this situation, the work summarized the world theory and practical experience of introducing fiscal institutions in developed countries and assessed the possibilities of their adaptation to the conditions of Ukraine.As a result of the research, it is found that outsourcing has advantages over other methods of implementing independent fiscal institutions in the economy of a peripheral country. It can become one of the tools to strengthen the economic soundness and transparency of fiscal policy, its reorientation to the interests of society.This is important for overcoming the periphery and direction of the vector of economic development of Ukraine towards the center. The introduction of independent financial institutions can contribute to the development of Ukraine in the dialogue field of European integration, strengthening of Ukraine's competitiveness and economic security of the European economy.

Highlights

The growth of financial losses and the public debt as a consequence of the financial crisis form the increased attention of scientists, politicians and practitioners to the problem of the stability of the financial system, the development of mechanisms, rules and institutions to ensure the effective management of public finances, including the introduction of strict fiscal rules and the creation of organs, that would monitor their compliance
Research results: 1. The imperfection of state institutions in Ukraine is shown, which contributes to the formation and consolidation of the peripheral type of the country’s development
It is justified that overcoming the dependence of state institutions, primarily fiscal ones, on political problems and their orientation to protecting the interests of the oligarchy requires a whole range of differently directed activities, one of which can be the introduction of independent financial institutions

Summary

Introduction

The growth of financial losses and the public debt as a consequence of the financial crisis form the increased attention of scientists, politicians and practitioners to the problem of the stability of the financial system, the development of mechanisms, rules and institutions to ensure the effective management of public finances, including the introduction of strict fiscal rules and the creation of organs, that would monitor their compliance Such in many countries have become independent fiscal institutions, whose role is control of the main financial indicators, to advise governments on fiscal policy. The database of such institutions includes more than 40 independent financial institutions that have their own specific goals and peculiarities of work in different EU countries They carry out objective and public analysis and forecasting and increase the transparency of fiscal policy. Their experience is interesting for Ukraine for the development of its own fiscal system by introducing successful experience of foreign countries

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Conclusion