The Importance and the ways of Foreign Ivestments Involvement into Ukrainian economy at the Stage of Integrational transformation

The demand for preserving positive dynamics of economic growth and further structural reforms in Ukraine witness about the importance of looking for new potential investment sources. Since Ukrainian economy has limited national finan cial sources? It is necessary to look for foreign investing financial sources.

Nowadays, the efficiency of investment policy influences the state of production, the level of technical equipment, possibilities of structural reforms in economy, solution of social and ecological problems. Investments are the bases of enterprise development and certain fields of economy. The present-day conditions of economic development need conducting active policy with the involvement of direct foreign investments.

To solve the problem of inner investment activity and activite foreign investments it is necessary to do the following:

-to decrease the level of state regulation and to provid the stability of normative acts;

-to complete administrative reform and to providy the publicity of power decisions

-to promote development of capital markets

-to provide stability of political medium

-to create the positive image of the state



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Unemployment as a Social and Economic Phenomenon of Mankind Development


There are about 820 million people in the world who are unemployed or work part time. Some highly developed cuntries face crises because of unemployment. It touches even upon the countries where there seemed to be no unemployment at all. Unemployment ruins lives of millions of people. It is a new social disease.

Today psychologists observe a sudden growth of psychological and psychiatric illnesses among the unemployed people. Besides, they suffer from emotional distresses, disappointment, apathy and the loss of self-respect. To study the problem of unemployment special governmental committees were formed. For example, Special Committee of the British House of commons which has been considering the problem since 1895. Unemployment is also a social problem. New understanding of this phenomenon has become deeper after the World War I. The conflict with intensively growing weapons production has almost overcome unemployment. However, in early 20ies the Western world faced a series of economic crisis which, later on, turned into the global economic crises that started in 1929 and destroyed the economy of all highly developed world countries. After the World War II there happened a new economic boom, and unemployment rate has reduced.


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The development of small Enterpreneurship in Chernivtsi

Transition to market relations is always closely connected with creation and development of the network of smallenterprises. They are able to activize structural reconstruction of economy and provide the population with jobs. Besides, they guickly react to the consumer demand changes.

On the whole, small enterprises have a lot of advantages: independence of actions, guick adaptation to local conditions, low cost, etc. Small business creates many vacancies and decreases unemployment.

Small entrepreneurship in Chernivtsi consists of 27,9 thousand enterprises. According to the types of economic activity, they work in spheres of trade, real estate, engineering transportation, communication, hotel network, utility services, financial activity.

One of the most important indexes of small enterprencurship development is a number of small enterprises per 10 thousand population. Chernivtsi cjntains 102 small enterprises which help solve employment problem, improve budget and financial situation revive local production. Small business in Chernivtsi develops very guickly and is one the most important factors in the process of stabiliting the citys economy.


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State Regulation of Economy

Countries base their development noy only on raw materials and natural wealth, but also intellectual abilities of their cititens, use state regulation as a system approach to organiting their production and are called economically developed countries. As a rule, they apply proportional laws of regulational: the more deviations are caused by a certain factor? The bigger regulating power ehould be applied to diminish these deviations. State regulation has to be perfomed thourughly not to cause other negative conseguences.

Thus, only absolutely stable economic system can afford the absence of regulating influence. Such systems are self-regulated and are a perfect type of a free market.

In all countries, especially in those with transitive economy, state regulation is vitality necessary. Thus a model of free non-regulated market is not efficient, despite the fact that the basic aim of any reform is creation of stable economic system. Economic phenomena and processes are regulated, first of all, by the action of market mechanism. The aim of state regulation is to influence the factors which weaken the action of the market mechanism.

Highly developed countries use legal and economic method to regulate their economies.


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