INSTITUTIONAL ENVIRONMENT MODERNIZATION IN UKRAINE: EVALUATION AND ANALYSIS

Abstract

In this article the elements of institutional environment development and strategies for solving the problem of stable functioning of social and economic sphere of life of society are considered, discussed and analyzed. The research is based on the methods of the empirical research: observation, comparison, and, in addition, on the methods of content analysis. The relevance of the study is an attempt to highlight the main indicators of modernization of the institutional environment of Ukraine. These indicators are: global index of the effectiveness of public administration, the index of incapacity of states, the index of global competitiveness, the index of economic freedom, the index of easiness of doing business, the index of acceptance of corruption. All these indicators are included in the process of formation of the institutional environment of Ukraine. The institutional environment provides the basis for the activity for the subjects of the socio-economic system and also defines the vector of its development. The Global Competitiveness Index not only assesses the degree of competitiveness of a country, but also helps to see the real situation in the country. It shows its competitive advantages and problems that slow down economic development. The Index of Economic Freedom identifies the main problems of an optimal level of economic freedom. It shows that the higher the index of economic freedom leads to the higher level of welfare of the population. The Easiness of Doing Business Index assesses the «rules of the game». In other words, laws, regulations, and other government acts that have impact on reducing unprofitable and bankrupt businesses. This index, in addition, assesses the condition for facilitating for doing business in Ukraine. The Failed States Index helps to analyze Ukraine's ability to control the integrity of its territory, political, demographic, economic and social situation in the country The Corruption Perceptions Index is usually used in political and econometric studies to explain the effectiveness of government administration, economic development and the level of democracy in Ukraine. Moreover, it is used to reduce the corruption in government-business relations. The institutional environment in Ukraine continuously forming. This is why the analysis of some elements of the development of the institutional environment in Ukraine is necessary to identify the optimal strategy for solving the problem of stable functioning of social and economic sphere of life of society.