The oligarchization phenomenon of political power in Ukraine: from rise to decline

Abstract

The article analyzes the oligarchization phenomenon of political power in Ukraine as a system of control by owners of large capital over state institutions. The formation of powerful national capital was facilitated by public opinion’s unacceptability of attracting foreign capital and the monetary form of privatization of state-owned enterprises. The negative attitude of the population to the consequences of privatization was used by the oligarchs to block institutional reforms, which led to the spread of corruption and manual methods of property redistribution. The collection of oligarchic rent from the profits of state-owned enterprises became an additional resource for the enrichment of large owners. The dependence of the state on the oligarchs was ensured by their total control over the sectors of the economy that provided the majority of revenues to the state budget. The oligarchs’ ownership of key mass media allowed them to manipulate public opinion, which blocked reform initiatives of the civil sector. This was facilitated by the socio-political division of Ukrainian society regarding the ways of the country's development. The decrease in the influence of large owners on the political life of Ukraine became possible due to the limitation of their mass media influence and the decline of their economic base under the conditions of the Russian-Ukrainian war. The process of de-oligarchization of political power in Ukraine is facilitated by the growth of social unity and trust in state institutions, the increase in the influence of the civil sector, and the economic support of Western countries.