Lycceum “Naukova zmina”
DIPLOMATIC TOOLS OF INTERNATIONAL ECONOMIC RELATIONS OF UKRAINE
The paper deals with topical issues of global economic relations in the system of national economy. Proposed economic-legal model to improve foreign relations, defined development priorities. Also defines innovation and integration factors and their impact on international relations of Ukraine and WTO members.
Keywords: diplomacy, world economy, integration, innovation.
Problem statement: Placement of productive forces of countries worldwide including Ukraine, inextricably connected with development of international division of labor and forming of intergovernmental economic relations.
Under current conditionsof economic development of Ukraine international economic relations is one of the major fields of its activity. Creation and development of these relationships with the entire countries of the world, and especially with most developed countries contributes to internationalization of production, increases the level of technologies and quality of products. So and in no other way, Ukraine will be able to integrate into the European and world markets. As of today the structure and volume of export do not correlate with the state of Ukraine in world economic relations. In a country which population consist of 1,5% of world population there is a large industrial and natural resource potential, but low share in a world export - 0,2%. In comparison Ukraine exports to Canada products in an amount of 5,6-5,8 thousand USD, to Germany - 5,1 thousand USD, to France - 4,1 thousand USD; to Italy - 3,1 thousand USD; to Japan - 3,2 thousand USD; to Great Britain - 3,1 thousands USD; to USA - 2,0 thousand USD; to Russia -0,4 thousand USD; to Ukraine - 0,2-03 thousand USD.
Problem definition:the aim of article is to define basic problems that arise up in the process of international economic connections of Ukraine and distant and near foreign countries, and also to define the set of measures in relation to the improvement of mutual relations between countries through the acceptance of relevant state documents.
Statement of basic material of research:International economic relations are the system of economic connections between the national economies of countries based on international division of labor. In particular international economic relations contributes into the growth of national income, the acceleration of progress in science and technology, increase of social standard of living. Besides, external economic relations influence on the general atmosphere of trust between countries, enhancing their partnership relations, mutual understanding and good neighborliness.
For the development of Ukrainian economy it is especially important to use external economic relations fully and effectively for the decision of urgent scientific and technical and economic problems.
Development of effective foreign economic relations will give possibility to Ukraine to force the overcoming of economic crisis, accelerate development of productive forces and improve the social standard of living. In fact a country that does not develop foreign trade does not have economic ties with other countries of the world force to increase cost of production b 1,5 – 2 times.
As of today Ukraine as a sovereign state does not have sufficient experience in establishing of economic relationships with other countries of the world. There is a necessity of creation of corresponding legal base and adoption o f laws on foreign economic activity, creation export-import bank, foreign investments.
A principal reason that prevents Ukraine to be a valuable partner in a world economy is a low competition of products on world markets. Only 1 % of manufactured goods can compete in products at the markets of far abroad. In addition, even those commodities which are in demand at foreign markets do not comply with international standards. So almost all crude iron does not have international standards, it has low volume of nomenclature of ingots, which results in large metal content of products, wastes of metal increase up to 25%.
It is necessary to specify priority areas of development of export specialization, be-guided by the production of scientific and recourse efficient technologies in the field of machine- and aircraft construction, in space-rocket industry and creation of super-hard materials.
Domestic enterprises constantly deal with challenges of modern competition, and foremost, with difficulties of adaptation to the permanent changes of market conditions. For many industrial enterprises that were formed during plan economy, such situation is unusual. Clients, competitors and drastic changes - are those three factors, which both separately and together dip deeper today's enterprise in an environment, that foremost its management perceive as unknown for itself.
National basis of innovative activity that was established in ХХ century, in conditions of global flowing of productive, financial and labor resources are modifying substantially. Globalization in an innovative sphere, shows foremost, in the growing role of the foreign financing of scientific researches, in most developed and in new industrial countries, in creation of more research subdivisions and corresponding centers in regions. Taking all the foregoing into account, it is extremely important for Ukraine to compare its vector of innovative development with world one.
Among the complex of urgent tasks on providing effective access of Ukraine into a world economy and international cooperation a primary target is a forming of mechanical external economic connections, their theoretical development and practical implementation.
Under the mechanism of external economic connections we understand complex of their concrete forms, and also system of legal, institutional and management, financial and economic levers.
Taking into account the principle of international division of labor, geopolitical location of Ukraine, typical development of productive forces, existing scientific and technical and resource potential, mechanisms of foreign economic activity, that are forming in the country, it is necessary to be guided by primary strategic target in the field of external economic politics - integration of the national economy complex of Ukraine into the world economic system. Indicated integration provides the achievement of following aim:
1. Forming of developed market system of economy, that would be based on the principles, norms and economic mechanisms, which are generally accepted in world practice;
2. The use of opportunities of world market for structural adjustments of national economy;
3. Transformation of external economic sphere into the active factor of the dynamic and high-efficient economy growth;
Unlike earlier operating system in an external economic sphere as for today absolute priority must be provided to commodity-money, i.e. economic-dynamic levers in regulation of this sphere of activity. Therefore in the process of development of new mechanism of foreign economic ties it is necessary to give up out-of-date methodological basis of regulation of the pointed out processes.
The basis of functioning of mechanism of foreign economic activity should form the principles of democratization, demonopolization of external economic ties, that provides considerable reduction of administrative restrictions on the export, import, increase of the role of the custom and currency regulation of national economy ties, granting to the objects of foreign economic activity of wide independence in accordance with international practice.
For creation of new effective mechanism of external economic relations it is necessary to work out next problems:
- forming of necessary legislative framework;
- creation of respective economic environment;
- development of institutional structures that regulate external economic relationships.
Important pre-condition and simultaneously essential principle of closer cooperation and deeper economic collaboration with foreign partners is development of legal framework. World practice confirms, that according to intensification of international economic connections, qualitative and quantitative growth the character of mutual relations between participants becomes very complicated, it requires the clear legal regulation both on national, and international level.
The important elements of mechanism of foreign economic activity in the conditions of development of the market system are monetary, tax, credit, deposit, price and custom-tariff policies, the key element of mechanism of external economic relations is monetary policy by means of which exchange rate and competition of national production is implemented.
One of the factors of increasing business activity both among national commodity producers and exporters and among foreign investors is forming modern tax system on export-import operations and income of joint enterprises.
The important instruments of state influence on external economic relations are credit subsidies. Financing of export-import operations, large building projects is essential part of international business practice that accelerates the process of rotation of capital.
Integrated part of mechanism of foreign economic activity is a customs policy of the state that foremost called to fulfill the protection function of internal market. The customs policy of Ukraine should provide the signing of customs unions with interested countries strengthen their mutual trust, balance and co-ordinate a customs policy.
Choosing the way of liberalization of external economic relations and building of economic open system, Ukraine constantly feels growing influence of world progress trends on the internal economic processes.
Productive forces of Ukraine are characterized by extraordinarily large potential opportunities, but the socioeconomic crisis that continues in Ukraine has a significant influence on its current state.
As of today the international cooperation in Ukraine a reflection can find in its reflection in following forms:
- scientific and technical cooperation;
- mutually advantageous international trade ( foreign trade);
- granting of credit;
- foundation joint ventures;
- specialization and co-operation of production;
- trading in technologies, specialization in the production of accessory equipment;
- joint participation of the interested countries in development and extraction of natural resources;
- foreign investments as an important form of promotion of development of economy;
- international tourism;
- cultural relations between the countries of the world.
Development of international scientific and technical co-operation of Ukraine is possible in such forms:
- study and implementation of experience of foreign specialists, preparation, training, personnel development abroad;
- co-operation, creation, expansion and providing of respective activity of educational institutions, research and consultative centers, including joint ones;
- collaboration in the area of science and technology, building, modernization and exploitation of enterprises, other objects of industrial buildings and social infrastructure;
- exchange by technologies, licenses, design and project materials, assistance of their use;
- collaboration in collection, processing and use of scientific and technical and economic information;
Close relations in area of scitech, education of Ukraine with Russia, Middle East, and also with some other countries of the CIS were lost. It is necessary to underline that, unfortunately, as a result of break (elimination) earlier existent government, political and economic relations between the allied republics the collaboration became weaker. It relates to Ukrainian higher educational, scientific institutions etc.
The analysis of the present state of foreign trade of Ukraine confirms that economic relations in this industry are unconventional, characterized by narrow geography, a structure and efficiency do not comply with requirements of forming of national market economy of open type. Yes, share of export in the national income of Ukraine almost in four times less of average world index. Namely the structure of export and import of any country specifies the capacity of industries of national economy complex to international competitiveness.
Ukraine many years dominates among other republics in Soviet Union in development of export production due to natural resources, production capacities, scientific and technical potential, skilled labor resources, geographical location, logistics etc. For confirmation next statistical data prove: the share of Ukraine in 1986-1990 amounted 20% of All-Union export supplies. As for certain types of export deliveries Ukrainian’s share amounted: in iron-stone – 98%, manganese ore – 100%, pike and pipes – 75%, agricultural machines - more than 70%, escalators and rolled steel - more than 60% etc.
Modern opportunities of export potential of Ukraine completely depend on the level of development of separate economic districts and areas.
The analysis of foreign trade relations of Ukraine with foreign countries confirms that for the last four years balance of foreign trade of Ukraine does not have a positive value. A difference between an export and import is determined, foremost, by negative balance on the import of natural gas, oil, diesel fuel, motor-car petrol, coal, i.e. due to energy recourse.
The generally accepted vision of process of globalization means integration of world economy that takes place in three directions:
- through development of world trade;
- due to international distribution of the new technologies;
- by means of mobility of international factors of production, in particular due to movement of sources of raw materials.
Globalization acquires a different meaning depending on what it refers to: enterprise, industry, country, or world economy as a whole, namely:
- for a separate enterprise globalization is determined by how far is the geography of receipt of profits, distribution of assets in different countries and how far the enterprise is engaged into the export of capital;
- for industry a main index is correlation of volumes of counter trade with world production volumes;
- for a country - by the degree of intercommunication of its economy with a world economy as a whole (correlation of foreign trade turnover and GDP, direct foreign investments to a country and from a country);
- globalization at world level - by economic intercommunication between countries, that grows and is represented on the counter streams of commodities, services, capital, know-how.
Globalization of economic relations together with positive sides has problems of negative character. The openness of domestic economy predetermines a necessity to take into account all factors that determine the level of competitiveness, efficiency of activity at the globalized markets. For the domestic organizers of production it is important to study the features of activity of enterprises in modern economic relations.
However a problem is that science and practice have not provided sufficient information about the features of these relations yet, advantages and threats of the globalized economy.
In recent times global development of frame of a society becomes more unstable, and thus a breakthrough in economic development is possible on condition of forming of cooperation ties, combination of competition and co-operation. The consequence of global process is an all-embracing crisis of administrative management that shows up in weakening of democratic mechanisms and substantial decline of possibilities of national governments in a management of social development. Though the states remain the dominants of the international system, they come under the influence of growing force of transnational corporations and international organizations. At these terms the efficiency of state administration is determined by possibility and speed of “bridge building” of partner co-operation for mutually beneficial exploitation of information flows, new technologies, limitation of influence of TNC. The process of reformation of the system of state administration touches entire countries and related to forming of the global management called to provide the decision of strategic tasks of functioning of global space through effective activity of supranational administrative structures. The modern stage of globalization is characterized by changing role of economic policy in global management. In the conditions of forming of new world order and increasing role of international unions and regional integration groups the mediated participating of the state prevails in a global management. In the same time the state extends its authority, delegating its part to the transnational institutes. Its actually forms an environment for the political and economic activity on that level that makes possible to settle public problems and defend national interests by means of transnational integration.
Conclusion: Modern foreign economic policy of Ukraine is focused on forming of the new trade regime with further integration into world economic space by the gradual openness of national economy. First of all it is provided:
- support of national commodity producers by the use of possibilities of
international-legal mechanism of protection of their interests at the world market;
- acceleration of economic reforms by harmonization of economic legislation in accordance with the world system of trade;
- overcoming of technical barriers in trading with countries the members of WTO (USA, EU);
- expansion of borders of trade, that provides the receipt of currency, stimulates development and technical updating of industry, assists deepening of productive co-operation, provides the substantial increase of foreign investments.
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Стаття надійшла до редакції 14.01.2013р.