STRUCTURAL IMBALANCES OF UKRAINE'S ECONOMY: FINANCIAL-INVESTMENT DISCOURSE

Abstract

The article deals with issues related to the architectonics of the domestic economy. It analyzes the sectoral structure of Ukraine's national economy and the changes it has undergone. It identifies that the sectoral structure of the domestic economy was primarily formed before 1991 and reflects the state's inconsistency in economic reform. It is argued that the state attempted to preserve the existing sectoral structure for many years, and economic policy was directed towards supporting the so-called “traditional” sectors of the Ukrainian economy. The “fixation” of the existing sectoral structure was largely due to the privatization model, which formed preferences for large capital. For many years, society has been propagandized that preferences for the extractive and manufacturing industries are drivers of economic growth and stability of the domestic economy. As evidenced by the actual state of affairs, all this support has reflected Ukraine's oligarchic economic development model. It deepened the economic backwardness of our state and shaped its competitive position at the global level as a country with “insignificant added value”. Among other things, this approach is also reflected at the level of various financial-investment imbalances. The formation and use of financial resources at the sectoral level have significant peculiarities, which are more of a restraining factor from the perspective of economic dynamics in Ukraine. Large financial-industrial groups at one time virtually monopolized the domestic financial sector. As a result, domestic financial institutions do not have sufficient potential for development, and their corporate strategies are often “subordinated” to the strategy of the group's “industrial core”. This approach significantly reduces the investment attractiveness of domestic business and, consequently, reduces its capitalization. To change the situation, the state must implement a package of reforms aimed at changes in the architecture of the national economy, considering global trends. Ukraine should stimulate the development of industries that are competitive in the conditions of digitalization of economic development.