Conflicts in the Ukrainian economy

Abstract

Ukraine still has an insufficient level of development of economic relations and is significantly behind the developed countries. Accordingly it cannot provide decent living for most of population, and to solve social problems. Realities of the economic and social development of Ukraine indicate insufficient stability of the national economy, its conflicts and propensity to unbalance. Dynamics of key macroeconomic indicators and indicators of social development are analyzed. Conflicts in the economy arise from the contradictions between the parties when their interests do not coincide. The conflicts may be observed in any facets of economy, from production to distribution, consumption and exchange of resources (material, funding, human resource, technology, innovation, information etc.). These co nflicts are related to market competition, to ties between enterprises and various governmental stru ctures, conflicts within enterprises and organizations, too. The most problematic factors for doing business in Ukraine are considered. These are problems in taxation, public policy, corruption, inefficiency of officials, inflation, etc. The essence and causes of the tax conflict are considered. The tax system is inefficient and it complicates the activity of enterprises. All variety of reasons for tax conflicts can be grouped as follows: fiscal direction of the tax system, high tax burden and lack of tax regulation of social stratification, inefficiency of the tax system in the regulation of investment and innovation pro cesses, possibility of tax evasion, and inefficient use of tax revenues.Positive results of ongoing economic reforms in Ukraine are given. Ways of prevention of conflicts of interest in the field of taxation are proposed.