FACTORS UNDERLYING THE DECLINE OF UKRAINE’S ECONOMY AND WAYS TOWARD ITS MODERNIZATION AND GROWTH

Abstract

Abstract. The causes of the decline of the domestic economy are considered from the standpoint of the Keynesian theory of economic development. It is determined that the key factor of unsatisfactory levels and negative dynamics of economic growth is a disproportionately low, thus inadequate with respect to expanded reproduction according to the market principles, level of population (household) income, which does not provide appropriate amounts of both consumer demand and savings (as a source of investments) in the national economy necessary for accelerated economic growth. In this context, the ways of modernizing the economic mechanism and ensuring the conditions for economic growth are determined In particular wage reform, structural and innovative modernization of the economy, deregulation and reform of the management system, de-monopolization and promotion of the conditions for competition, reduction of the number of state officials, maximum automation of the state apparatus, and riddance of corruption in the economy. In conclusion, these measures should ensure household income growth, overcoming oppressive poverty of the population, and, therefore, due to the increased consumer demand, cause multiplicative (according to the expenditure multiplier effect) economic growth.