INTERNATIONAL STRATEGIES OF ECONOMIC DEVELOPMENT AND FEATURES OF UKRAINE’S DEVELOPMENT

Abstract

For countries that are reforming national economies in the direction of creating socially efficient market systems, an important issue remains the adaptation of best international practices in the formation of their own strategies. A significant factor in economic growth now is the  intensification of investment activities of domestic and foreign economic agents. In the macroeconomic aspect, investment activity is a process of shaping the future of the country’s economy. The article considers the development strategies of developing countries: the concept of «vicious circle of poverty», the concept of transition to self-sustaining growth, the concept of «big push» and its varieties: the concept of «balanced investment», «unbalanced growth» and «balanced growth through unbalanced investments». Ukraine, being one of the largest countries in Europe in terms of territory and population, is one of the poorest. Adherence to the neoclassical postulates of economic theory in the early 90’s of the 20th century did not help to get out of the structural crisis.In 2020, Ukraine ranks only 88th in the world in terms of GDP per capita.According to the results of 30 years of regulation of the Ukrainian economy,it has not been possible to realize the potential in natural resources,geographical location and quality of human capital. Considerable attention iscurrently paid to the formation of neoprotectionism, caused by the slowdownof globalization trends and the spread of acute respiratory disease COVID-19.The lag behind the countries of Central and Eastern Europe is explained not only by approaches to the transformation of the economic system, but also by differences in the ability to generate new and import existing advanced technological knowledge and institutions. In this case, we are also talking about various non-economic determinants that affect economic development – institutional features: freedom, observance of laws, ethical principles of economic activity, ideology, and so on. In the conditions of slowing down of globalization processes caused by the spread of COVID-19, the formation of the strategy of economic development of Ukraine should be based on the principles of industrialization of the economy and neoprotectionism.