Innovation and Investment Anti-Corruption Mechanism for Economic Development

Abstract

It is substantiated that problems of the development of the mineral-raw material base of Ukraine (which, taking into account their importance, can be attributed to the fundamental geological problems of Eastern Europe), are problems of improving the management of this branch of the economy, the introduction of modern effective forms of management. This will ensure the energy independence of the country, its economic development, creation of additional jobs at the enterprises of the mineral complex and in related industries, and in the end - high standards of living of citizens. It is proved that the realization of potential opportunities for the further growth of existing stocks and exploration of new deposits for Ukraine, the extraction of which involves potential opportunities to achieve the country's energy and economic security, export potential increase, depends on solving a number of problems such as corruption (corruption in the extractive industry), insufficient volumes of exploration works, as well as a shortage of new technologies in mining. It is noted that these problems are associated with poor quality, inefficiency of management of the relevant branches of geology and mining (as well as the management of the country's economy as a whole). Solving these problems requires qualitative approaches, management tools, which are fundamentally different from the traditional methods of improving management. It is proposed to distinguish three types of such principles. First, it is the maximum reduction of the human factor, the transfer of such functions as control of the machines to the computers, the transition to new information technologies in management. Secondly, it is creation (to neutralize corruption risks from that part of the state apparatus, which is impossible to replace by the computer yet), of such organizational conditions, in which malversation of budget funds will become impossible. Thirdly, it is the application of the principle of subsidiarity in public administration. It is noted that one of the authors of this publication designed the desirable management system of the industry, as well as the model of transition from the current to the proposed management system is at the stage of registration of copyright to the utility model. It is emphasized that a particularly great effect, in the form of additional revenues to the budget, as well as relevant social transformations, will provide a widespread application of the proposed approach in reforming the entire state administration of the economy.

Economic and Political Development of Ukraine: Importance of Foreign Direct Investment

“…The decrease in interest rates of Ukrainian banks led to a greater demand for loans, greater purchasing power and an improvement of the economy overall through the multiplier effect. The stabilization of economic factors was reflected in greater industrial outputs, an increase in exports and a higher demand for foreign businesses interested to transfer to Ukraine (Yuldashev, 2019).…”

“…Over the past twenty-five years, Ukraine has experienced a tectonic shift from a planned to a market economy, from dependency to the Revolution of Dignity, a deep crisis to macroeconomic stabilization (Yuldashev, 2019).…”

The Central Asian tiger: Export specialization in Uzbekistan: Opportunities for economic diversification and development

“…Although privatization did proliferate in Uzbekistan and Central Asia, it was unfortunately marred by corruption. Early privatization efforts saw 54,000 firms change by the end of 1994: 34% were private firms, 48% were join-stock, 16% into collective firms, and 1% into rental firms (Yuldashev et al, 2016). As a result, 97% of agricultural products and 44% of industrial products were produced in the private sector by 1995; moreover, 82% of traded goods were from the private sector (Yuldashev et al, 2016).…”

“…Early privatization efforts saw 54,000 firms change by the end of 1994: 34% were private firms, 48% were join-stock, 16% into collective firms, and 1% into rental firms (Yuldashev et al, 2016). As a result, 97% of agricultural products and 44% of industrial products were produced in the private sector by 1995; moreover, 82% of traded goods were from the private sector (Yuldashev et al, 2016). The government reduced imports through foreign exchange controls and launched an import substitution program in 1996 (Rosenberg and Zeeuw, 2000).…”

“…That same period witnessed expanded productivity with volatility in land ownership among smaller farmers (Najjar et al, 2022); furthermore, cotton and textiles exhibited significant expansions outside of agriculture (Fischer-Daly, 2019). In 2016 a new presidential decree was made regarding cotton and textiles (Act Number PP-26872016; the government decided to further develop and diversify the products produced from cotton by encouraging not only the export of cotton but the export of products produced by cotton.…”