PRESSING ISSUES IN THE MANAGEMENT OF STATE

Abstract

The paper determinates essential prerequisites, rational ways and means for implementing the 2016–2020 Ukraine State Management Reforming Strategy. It has been proven that Ukraine’s path of development is both arduous and controversial. Moreover, at the present time the state of Ukraine has gained a historic opportunity to put into practice the full range of reforms, which have been attributively random and ad hoc in nature for the recent years. We are now referring to the search for rational ways and means for implementing the 2016–2020 Ukraine State Management Reforming Strategy, aimed at improving the state management system and respectively raising the country competitiveness level, having taken into consideration Ukraine’s European choice perspective. The key targets the state management and local governance reforming should be aimed for have been set as follows: the corruption perceptions index rise and the shadow economy reduction, which have been interpreted as interrelated phenomena; the reduction of inflation to its natural rate; the establishment of private investment protection mechanisms by all branches of government as well as by taxation authorities; to get the working-age population engaged and interested in homeland company jobs rather than abroad; fair income taxation system for the employed population. The correlation has been established between the corrupt practices of government authorities and the economy shadowing. The corruption has become a powerful driving force for the shadow economy, which has involved public officials from the lowest to the highest rank or status. The latter has been proven by the CPI (Corruption Perceptions Index) – the annually ranked list of countries, which has been published by the Transparency International organization since 1995. The GDP correlation dependence of the corruption perceptions index in the year 2015 at purchasing power parity per capita has been determined (according to the World Bank’s data). The statistics for Ukraine has shown figures very close to the regression line (exponential trendline). In a world context, the rise of a corruption perceptions index to one percentage point leads to an increase in productivity to 4,5%.