Privatization in Ukraine (1991 - 2004): features and results

Abstract

The purpose of the research is to determine the features and results of privatization in Ukraine during the first decade of independence. The research methodology involves using various tools to achieve the purpose. The use of comparative time (vertical section) research made it possible to identify the peculiarities of privatization at each of its stages. The principle of dynamics contributed to the identification of changes in quantitative and qualitative parameters in the process of privatization during each historical period. The scientific novelty consists in the fact that for the first time in the scientific discourse, the privatization process with its features and results in Ukraine during the decade of independence is defined, taking into account the political component of the corresponding stage of state formation. The Conclusions. During the first period (1992 – 1994) the process of privatization was rather complicated and controversial, which reflected the indecision of the political elite and the president himself to act in the direction of such changes. Although privatization began in 1992, the authorities have not yet decided how massive it should become on a national scale. Therefore, during this period, it was allowed to rent state-owned enterprises and carry out their activities there, primarily by the former management and their labour teams. After the change of power in 1994, the new president and his government began to implement mass privatization for the entire people by providing them with certificates (vouchers) actively. During the second term of office, especially during the period of 2000 – 2004, the president facilitated the privatization of large strategic state-owned enterprises by the young bourgeoisie, mainly those that were particularly close to him. In this way, the formation and final crystallization of financial and industrial circles in Ukraine took place, which later exerted a significant influence on political and economic processes in the state.