THEORETICAL PARADIGM OF SUSTAINABLE DEVELOPMENT AND UKRAINIAN REALITIES

Abstract

For Ukraine, restoring and ensuring the sustainable growth of the national economy through the involvement of, first and foremost, internal factors become extremely important. Therefore, finding out the causes of unsustainable economic growth is an important task of economic science. It is shown that Ukraine’s economy entered a phase of unsustainable growth due to exhaustion of the potential of restorative growth, reduction of the flow of export earnings and foreign capital and increase of external debt. The nature of recessions and upsurges in various economic models is researched. It is found that the national economy is in a state of prolonged recession replaced by minor upsurges, which gives rise to the illusion of overcoming the crisis. It is proved that for Ukraine’s economy there persists a threat to remain in the parameters of stagnation and small growth. The nature of transformation cycle, which includes two phases, is disclosed. Such a cycle determines the boundaries of transition period. The completion of recession and the transition to a stage of sustainable growth are possible only when the mechanism of the capitalist reproductive cycle of industrial capital is launched. It is concluded that the industrial cycle is an immanent form of development of new equipment and technology in a market economy. It is acknowledged that during the years of market transformation, the contradictions inherent in the transition period are not solved. These unresolved contradictions have become essential features of the existing model of capitalism in Ukraine, which give it a specifically historical identity. It is noted that the deep causes of the crisis of the Ukrainian model are embodied in the system of social reproduction of industrial capital, which, under conditions of market mechanisms, caused a sharp contraction of manufacturing industries and expansion of the raw material sectors. The proposition is justified that a way out of current problems and transition to the sustainable development trajectory are possible on the basis of a new model that would combine market and state-regulated principles. The necessity to develop the comprehensive plan for updating the material and technological structure of the national economy is substantiated.