Central Planning and Unintended Consequences: Creating the Soviet Financial System, 1930–1939

2000 ◽  
Vol 60 (4) ◽  
pp. 1017-1040 ◽  
Author(s):  
Paul R. Gregory ◽  
Aleksei Tikhonov
Keyword(s):  
Economic Activity ◽  
Financial System ◽  
Unintended Consequences ◽  
The State ◽  
Central Planning ◽  
State Budget ◽  
Soft Budget Constraints ◽  
Moral Hazards ◽  
Soviet State ◽  
Credit Risks

We use the Soviet state and party archives to study the creation of the Soviet financial system. Although its framers intended to centralize all emission and monitoring of money and credit, in practice the system was characterized by informal mechanisms involving multiple players, soft budget constraints, and massive moral hazards. Enterprises issued “illegal” commercial credits and surrogate monies, causing liquidity growth to far outpace real economic activity. When confronted with the choice of solvency versus plan fulfillment, firms always chose the latter: credit risks were passed on to solvent enterprises, the state bank, and the state budget.

scholarly journals STATE BUDGET AS THE LEADING LINK OF THE FINANCIAL SYSTEM OF THE STATE

REPORTS ◽  
2018 ◽  
Vol 321 (5) ◽  
Author(s):  
R.K.Ichshanova ◽  
◽  
◽  
Keyword(s):  
Financial System ◽  
The State ◽  
State Budget

scholarly journals Directions of adaptation of the financial legislation of Ukraine to the EU legislation taking into account implementation of the concept of a new innovative model of the state management of financial system of Ukraine

2020 ◽  
pp. 97-114
Author(s):  
V.V. Sukhonos ◽  
Y.V. Harust ◽  
T.A. Vasilieva ◽  
V.I. Melnyk ◽  
V.V. Mirgorod-Karpova
Keyword(s):  
Crucial Role ◽  
Financial System ◽  
Economic Security ◽  
The State ◽  
Economic Crime ◽  
Scientific Article ◽  
System Management ◽  
State Budget ◽  
State Management ◽  
Current State

The scientific article is devoted to the coverage of one of the most pressing problems of Ukraine - problematic aspects of its economic security. The authors cover the current state of Ukraine's economy and analyze the views of domestic and foreign scholars on overcoming the economic crisis in the country. The current state of legal support of the foundations of financial and economic security of Ukraine is studied. The emphasis is on the crucial role of reforming and creating a new concept of the financial system of Ukraine. The foreign experience of ensuring the economic security of the country is analyzed. The paper plays a crucial role in reforming the system of public authorities in order to reduce the corruption element in public processes. The authors define that the financial system is a significant social sphere in society, on the state of which depends not only the economic security and reliability of the country, but also the potential of the state on the world stage as a whole. That is why the article focuses on the development of a new effective concept that would restructure the entire sector of the financial system of the state should be a priority in state and regional policy. This determines the urgency of studying the main problems and shortcomings of the current financial system of Ukraine, as well as the objective need to introduce a new concept of economic security of Ukraine. The Concept proposes ways to optimize the activities and structure of the subjects of financial system management in Ukraine, coordination and interaction between them. Proposals are provided for improving the administrative legislation that defines liability for financial offenses. Criteria for evaluating the effectiveness of financial system management are outlined. The concept envisages reforming the bodies of the Ministry of Finance of Ukraine, the Ministry of Internal Affairs of Ukraine, the Security Service of Ukraine, the State Tax Service of Ukraine, the State Customs Service, the State Fiscal Service, the State Audit Office, the Financial Monitoring Service, the Office of the Prosecutor General of Ukraine. state policy in the field of economy and finance, ensuring the economic security of the country, combating economic crime, reducing the shadow economy, control over the completeness of customs and tax revenues, as well as the effective use of the State budget.

The Financial System Stability: The Essence, Vulnerability, Ways to Provide

2021 ◽  
pp. 81-90
Author(s):  
Yurii Lupenko ◽  
◽  
Yurii Radionov ◽  
◽  
◽  
...  
Keyword(s):  
Budget Deficit ◽  
Financial System ◽  
Decisive Role ◽  
The State ◽  
System Stability ◽  
State Budget ◽  
Internal Factors ◽  
Endogenous Factors ◽  
The Government ◽  
The Stability

The state financial system must function smoothly and respond promptly to destabilizing exogenous and endogenous factors that can arise at any time. Therefore, ensuring the financial system's stability and improving its mechanisms is an important component of public policy. The purpose of the article is to reveal the essence of the financial system's stability, identify internal factors of the financial vulnerability of Ukraine that may affect the effectiveness of the country's financial system, and find ways to overcome them. The content of the concept of "stability of the financial system" is revealed. It is established that the use of different terminology indicates the complexity and, at the same time, the versatility of this term. According to international experience, the country's central bank has a decisive role in assessing the stability of the financial system; in Ukraine, this function is performed by the National Bank of Ukraine. It was found that inefficient use of budget funds is one of the key factors in the financial system's vulnerability. The state of execution of the State Budget of Ukraine in 2020 is analyzed. It has been established that over the last decade, the budget has been executed with a deficit, and the existence of a significant budget deficit leads to a movement in the “debt spiral”. The Government borrows a significant amount of money to implement the budget, and therefore it is becoming increasingly difficult to attract them on reasonable terms. Failure to receive the funds leads to late spending. Thus, the budget deficit, public debt, and inefficient use of budget funds are the internal factors that increase the financial system's vulnerability and undermine its stability.

scholarly journals The Investment Attractiveness of Economic Activities in the Regions of Ukraine

2021 ◽  
Vol 5 (520) ◽  
pp. 169-174
Author(s):  
O. V. Nechyporuk ◽  
Keyword(s):  
Regression Analysis ◽  
Economic Activity ◽  
Public Investment ◽  
Analysis Data ◽  
The State ◽  
Economic Activities ◽  
State Budget ◽  
Correlation And Regression Analysis ◽  
Methodical Approach ◽  
The Impact

The article is aimed at studying the investment attractiveness of types of economic activity in the regions of Ukraine, determining the impact of factor values (of types of economic activity) on the volume of products sold. As a result of the study, a methodical approach to the analysis and determination of investment attractiveness of types of economic activity in the regions of Ukraine is developed; the influence of factor values (of types of economic activity) on the volume of products sold is determined, the main ones are distinguished by means of correlation analysis and the significance of the selected factors of influence is checked using regression analysis. For the analysis, data was formed on the basis of official data of the State Statistics Service of Ukraine and the Ministry of Economy of Ukraine. To obtain more accurate summary results, the data was normalized in order to convert the values of signs in the input vector to a certain specified range. After the normalization, summary data for correlation and regression analysis were computed. On the basis of the carried out analysis, the economic-mathematical models of influence of investment instruments of the State budget on types of economic activity and a model of influence of investment instruments of foreign direct investment on types of economic activity in the regions of Ukraine were built. The investment attractiveness of certain regions for public investment and for foreign investments is substantiated. Prospects for further research in this direction are the analysis of the impact of other factors on the investment attractiveness of a particular region and Ukraine in general.

scholarly journals FOREIGN ECONOMIC ACTIVITY OF UKRAINE: FISCAL CONSEQUENCES

2021 ◽  
Vol 71 (3) ◽  
Author(s):  
Liudmyla Dermanska
Keyword(s):  
International Economic ◽  
Economic Activity ◽  
Current Model ◽  
Value Added ◽  
The State ◽  
State Budget ◽  
Excise Tax ◽  
Economic Relations ◽  
International Economic Relations ◽  
The Impact

The article considers the peculiarities of Ukraine's foreign economic activity in the development of international economic relations and identifies the impact of the taxation system on the import of goods into Ukraine on the fiscal consequences for domestic priorities. In particular, it is analyzed the share of VAT on imported goods in the structure of state budget revenues for 2016-December 2020, the dynamics of excise tax on goods imported into Ukraine and depending on the object of taxation in 2019, the volume and share of import duties in the structure revenues of the State budget. Particular attention is paid to issues related to the filling of the budget, namely, attention is focused on the structure of objects from which excise tax was paid on imports. In particular, the importance of such tools for regulating foreign economic activity as import duties is revealed, but its share in the structure of customs duties is not the most significant, and VAT charges significantly exceed revenues from customs duties on imports. It is emphasized that the priority task to overcome the existing contradictions in the field of foreign trade should be the introduction of an effective and adequate to the requirements of the time model of foreign economic activity. Because, as the results of a study of the activities of domestic enterprises - subjects of foreign economic activity show, the current model is outdated and inefficient and can not ensure the development of this area. The current state of affairs requires a number of sound management decisions backed by political will and economic expediency, and most importantly, not only in the field of fiscal policy. Therefore, the study of the peculiarities of Ukraine's foreign economic activity in the development of international economic relations and determining the impact of value added tax, excise tax and duties on fiscal consequences for domestic priorities allows us to determine that for a full-fledged solution of this range of issues requires a comprehensive approach and the formation of an appropriate strategy, the fundamental basis of which should be the concept of ensuring the fiscal interests of the state.

Legal framework of economic diplomacy in Russia

2021 ◽  
Author(s):  
Andrey A. Naryshkin
Keyword(s):  
Economic Activity ◽  
Legal Status ◽  
Foreign Currency ◽  
Legal Framework ◽  
The State ◽  
Social Needs ◽  
International Standards ◽  
Foreign Markets ◽  
State Budget ◽  
Economic Diplomacy

Economic diplomacy is the most important tool for the state and entrepreneurs in their foreign economic activity. It provides not only foreign contracts (including for the supply of large firms) and the inflow of foreign currency, but also investments attraction, which contributes to its development. Profit received from foreign economic activity goes to the state budget with taxes and then directed to social needs improving citizens welfare. Diplomatic relations between different countries are based on international conventions on diplomatic intercourse covering the diplomatic agent’s legal status. International trade agreements regulate international standards and procedures for goods carried from country to country, as well as dispute processes arising at the supranational level. International agreements forming conditions for Russian companies’ operations in the foreign markets and for the work of foreign investors in Russia. All foreign markets activities are regulated by legal acts. Such regulation is aimed to ensure goal-setting, simplicity and transparency of domestic entrepreneurs and foreign counterparties interaction and to reduce the risks of dependency on foreign markets and counterparties. This article reviews the Russian legal economic diplomacy basis, key strategic documents covering this area. Also, proposals to improve the legal framework for foreign representations promoting Russia's foreign economic interests abroad are done. Analyzing official statistics, the article examines the practical effect of the main strategic documents. All these measures are aimed to ensure comfortable working conditions for Russian manufacturers of various goods and services on foreign markets.

Foreign economic activity and its impact on the balance of payments of Ukraine

2020 ◽  
Vol 23 (1) ◽  
pp. 20-25
Author(s):  
Alla Burkovskaya ◽  
◽  
Dmytro Parakonnyi ◽  
Keyword(s):  
Economic Activity ◽  
Exchange Rate Policy ◽  
The State ◽  
State Budget ◽  
Legal Standards ◽  
Political Risks ◽  
Export Credits ◽  
Economic Imbalances ◽  
Risk Insurance ◽  
The Impact

Introduction. The payment balance is an indicator of the state and development of the national economy, systematically reflects the transactions between economic systems around the world, which allows us to assess the country’s participation in the international division of labor. It also plays an important role in the mechanism of currency regulation. Control of the payment balance in the context of implementing measures to eliminate imbalances in the economy, implementing a balanced foreign economic, monetary, exchange rate policy, establishing economically sound amounts of gold and foreign exchange reserves, developing adaptive mechanisms to attract external financing are extremely important. The problem and its solution should become the main direction of state policy of Ukraine. Purpose. The aim of this article is to study the impact of the real state of foreign economic activity on the payment balance of Ukraine and analysis of the reviewed impact indicators. Results. The article considers the concepts and individual indicators of the payment balance of Ukraine and shows the components of the payments balance. The main indicators of foreign trade, including the volumes of imports and exports and their dynamics, have been reviewed in detail. The current state of Ukrainian foreign economic activity in general has been analyzed. The concept of the payment balance has been indicated and the connection between the change in the payment balance depending on the change of certain indicators of Ukraine’s foreign economic activity, which are closely interrelated, has been determined. Conclusions. The main factor that negatively affects Ukraine’s payment balance is the large balance of goods deficit. The strategy to reduce the payment balance deficit should include the following elements: taking the necessary measures to eliminate internal economic imbalances; to guarantee the provision of export credits to producers, insurance against economic and political risks, the introduction of a preferential depreciation regime for fixed assets and the provision of financial benefits and other loans in exchange for the fulfillment of specific obligations of the export program; use international legal standards to regulate the payments balance; regulation of expenditures and revenues of the state budget, the use of risk insurance instruments in the financial system; increase revenue and revenue rates to increase trademark patents, licenses, and references to scientists and technicians.

scholarly journals Assessment of the State of Ukraine’s National Debt and Directions of its Optimizatio

2021 ◽  
Vol 1 (47) ◽  
pp. 123-133
Author(s):  
O. Y. Stoiko ◽  
◽  
I. A. Shubenko ◽  
Keyword(s):  
Interest Rates ◽  
Financial System ◽  
Threshold Level ◽  
The State ◽  
Debt Management ◽  
International Standards ◽  
National Debt ◽  
Debt Structure ◽  
State Budget ◽  
Currency Exchange

The article aims at studying the current state of Ukraine's national debt and developing directions for its optimization. It is established that the currency component in the structure of Ukraine's national debt is slightly lower than the threshold level for the currency component in the debt structure set by the IMF for developing countries. This structure of Ukraine’s national debt indicates the dependence of the domestic financial system on currency exchange rate fluctuations and the need to increase foreign exchange costs for servicing debt obligations. The amount of debt on loans from international financial organizations and government agencies of foreign countries comprises about a third of the total amount of national and guaranteed debt, indicating significant support Ukraine receives from its international partners, especially from the International Monetary Fund. The currency component in Ukraine’s national and state-guaranteed debt indicates high vulnerability of its financial system to currency shocks. It is established that the structure of Ukraine’s national and state-guaranteed debt by types of interest rates is quite optimistic and indicates a low vulnerability of public finances to interest rate risks. The size of Ukraine’s national and state-guaranteed debt in hryvnia equivalent increased during 2013–2020 by more than 4.4 times, and its growth in USD was quite moderate. It is determined that during 2020 the size of Ukraine’s national and state-guaranteed debt increased by 27.7% in hryvnia equivalent, due to the following situations: financing the state budget deficit; the allocation of funds to combat COVID-19; national currency devaluation, etc. The ratio of national and state-guaranteed debt to GDP, reaching a maximum of 81.0% at the end of 2016, gradually decreased to 50.3% at the end of 2019, which corresponds to the norm established by the national legislation. However, the values of this index for the period under review exceed the threshold level of national debt set by international standards for countries with emerging markets (30-50% of GDP). It is shown that the 2013 2019 period saw a tendency to increase the total cost of repayment and servicing of Ukraine’s national debt, which creates the risk of refinancing national debt, causes additional pressure on the state budget and GDP, and limits Ukraine’s ability to finance its social and economic goals of social development. The main risks for Ukraine’s debt obligations are highlighted, and ways to optimize them are outlined. The need to establish a National Debt Management Agency, the activity of which would help reduce both the debt burden and the cost of public debt servicing, is substantiated.

scholarly journals ON THE LEGAL BASIS OF PLANNING AND FORMING THE DEFENSE BUDGET OF UKRAINE

2019 ◽  
pp. 107-111
Author(s):  
R.I. Samsin
Keyword(s):  
Gross Domestic Product ◽  
National Security ◽  
Economic Activity ◽  
Armed Forces ◽  
The State ◽  
International Standards ◽  
Defense Spending ◽  
Domestic Product ◽  
Defense Budget ◽  
State Budget

The article systematically investigates the legal bases of planning and formation of the defense budget of Ukraine. It is stated that the legal bases of the defense budget of Ukraine are the Constitution of Ukraine, the Budget Code of Ukraine, the Law of Ukraine «On National Security of Ukraine», the Strategic Defense Bulletin of Ukraine, the National Security Strategy, the Military Doctrine of Ukraine, the laws of Ukraine on the state budget for the respective year. It is stated that at the legislative level the sources of financing of defense expenditures are fixed: funds of the state budget of Ukraine, charitable donations, income from own economic activity of the Armed Forces of Ukraine. The mechanism and conditions for providing charitable assistance to the Armed Forces of Ukraine are described. The expediency of revising the Concept of economic and economic activity of the Armed Forces of Ukraine approved on April 19, 1997, approved by the President. The current Concept does not meet current conditions. It needs revision, based on Ukraine’s NATO course, of military aggression, reformatting the structure of the Armed Forces of Ukraine. It has been determined that the amount of defense expenditures as a percentage of the gross domestic product meets international standards. However, the weakness of the national economy indicates a lack of defense spending in dollar terms and in terms of one soldier. The expediency of optimizing the structure of expenditures, reorientation of creation of new administrative and economic units for project management in the sphere of defense, creation of an effective mechanism of public control over the distribution of defense expenditures is argued. Keywords: defense budget, legal framework, gross domestic product, national security, defense, budget, charitable donation, economic activity.

scholarly journals FISCAL FUNCTION OF CUSTOMS POLICY AS AN IMPORTANT COMPONENT OF ENSURING THE EFFICIENCY OF ITS MECHANISM FORMATION

2021 ◽  
Author(s):  
Yuliia Buhel
Keyword(s):  
National Economy ◽  
Tax Evasion ◽  
Economic Activity ◽  
Economic Security ◽  
The State ◽  
State Budget ◽  
Economic Interests ◽  
Stage Of Development ◽  
Definition Of ◽  
Effective Use

The article considers the essence of customs policy as a set of measures taken to ensure the most effective use of instruments of customs control and customs regulation of foreign economic activity, aimed at maintaining a positive trade balance of the country and the development of the national economy. It is noted that the state's customs policy is designed to promote the country's economic security, which will guarantee a sufficient level of socio-economic and defense existence, as well as the political independence of its economic interests in relation to possible external and internal threats and influences. In this context, the author emphasizes that the profound political, economic and social processes taking place in Ukraine today have determined serious changes in the understanding of the role and importance of the state's customs policy. It is studied that at the present stage of development of the national economy, customs policy as an integral part of public policy has a pronounced fiscal nature. Accordingly, it is emphasized that this definition of priorities is primarily caused by the problem of acute budget deficit, which is complicated by the problems of tax evasion, significant external debt and the state of social guarantees of the state. As conclusions, it is stated that the basis for the transformation of customs in Ukraine should be the transition from the customs service as an exclusively fiscal body that provides most of the tax revenues of the state budget to the controlling body, whose main purpose is to ensure compliance with Ukrainian legislation on customs. At the same time, it was emphasized that the role of control in modern conditions will be not only in a comprehensive assessment of the sphere of taxation of foreign economic activity, but also in identifying additional sources of filling the budget through effective management decisions. However, it is emphasized that the fiscal orientation of the customs service of Ukraine today is primarily due to the state of our economy. Therefore, fundamental changes in the conduct of customs affairs of Ukraine and its tasks are possible only with a corresponding change in the economic situation in the country.

Sign in / Sign up

Export Citation Format

Share Document