Problem setting. Digital economy should be considered as the new phenomenon, which was formed under the influence of progressive changes in technology and is a system of economic relations based on the usage of digital media means of information transmission. The development of the digital economy requires new approaches, methods and tools of building the system of public administration, which has significantly evolved under the influence of democratic transformations and the development of civil society. Therefore, nowadays there is a demand for understanding the essence of the digital economy in society as an objective reality that is confidently evolving, as well as for finding further ways to its development as a part of the system of public administration.
Recent research and publications analysis. Issues of digitalization and digital economy are raised in the publications of such researchers as V. Apalkova, N. Dieieva, A. Dobrynin, S. Vereteniuk, H. Karcheva, V. Kuibida, S. Koliadenko, N. Kraus, D. Laion, V. Liashenko, A. Maslov, K. Semiachkov and others. The use of information and communication technologies in the field of public administration is revealed in the works of such scientists as O. Bernaziuk, N. Hrytsiak, N. Drahomyretska, O. Yemelianenko, T. Kaminska, A. Kaminskyi, O. Kachnyi, S. Kutsenko, I. Lopushynskyi, V. Nikolaiev, V. Pysarenko, A. Semenchenko, S. Chukut and others. However, there is the necessity for comprehensive research on the transformational changes connected to the digitalization of economic processes in the society.
Highlighting previously unsettled parts of the general problem. The aim of the article is to substantiate the directions of the digital economy development as a component of the public administration system based on the study of the features of the category “digital economy”, analysis of the problems related to the functioning of the digital economy in modern society.
Paper main body. The digital economy is the important basis for the functioning of the information society on the basis of information and communication technologies, according to that it can be attributed to the priorities of the public administration system development. The author’s definition of the digital economy from the position of a component of the public administration system as a complex model of interaction of economic and managerial entities operating on the basis of widespread use of information and communication technologies to meet the needs of the population and increase the efficiency of the public sector.
The development of the digital economy and digital technologies is important for the public sector, taking into account the services received by both businesses and citizens of the country. The most common digital services available in the world today are registration of the new business, applying for a business license, applying for a birth certificate, and paying for utilities.
The main factors that hinder the spread of digital services are the low level of financing for technological development and cyber security, the presence of software piracy, insufficient protection of intellectual property rights, insufficient number of mobile broadband subscribers, significant investment risks, undeveloped financial and banking services.
Ukraine’s strengths contributing to the development of the digital economy are high-quality training of IT professionals, their ability to work with large data sets, e-democracy, sufficient speed of Internet connections and the implementation of investment projects in the field of telecommunications. This gives grounds to assert the significant opportunities of the Ukrainian state to develop the digital economy in the future.
The government together with business have to take the following steps to overcome the problem of developing the digital economy: to develop the infrastructure for mobile Internet, Internet of things, cloud technologies and cyber security, i.e. “solid” infrastructure; to create full-fledged conditions for e-commerce and e-business; to form “soft” infrastructure aimed at data openness, identification and trust of citizens, the improvement of public services, etc .; to provide digital transformation projects through their implementation at the regional and national levels; to provide the population with information about possible risks from the total digitalization of the economy; to ensure technological and consulting support in the field of using secure information and communication systems.
The development of the digital economy is an objective reality nowadays, taking into account the rapid progress in the field of technological and innovative support of all spheres of society. Digitalization will reduce the cost of paper money transactions, reduce corruption by providing most transactions electronically, facilitate access to most public administration services, and increase the efficiency of the economy on the whole.
Conclusions of the research and prospects for further studies. The digital economy as a component of public administration system is the complex concept that involves the digitalization of public services and the development of the public sector through the active introduction of digital products in all spheres of the society. Considering the potential of Ukraine, its strengths and global trends that objectively affect the Ukrainian state, we can predict that the development of the digital economy will transform domestic industries and reformat them according to the needs and demands of the population.
Digital economy as a component of development of public administration system