INSTITUTE OF GOVERNMENT ORDER IN UKRAINE: CAUSES AND CONSEQUENCES OF FUNCTIONAL DEGRADATION

Background. The article is devoted to revealing the loss factors stimulating functions of government order in Ukraine. As the foreign practice shows, public order is an integral part of state economic regulation and effective means of implementing the strategic objectives of economic development. In Ukraine, the government ignores this regulatory instrument, treating it as a vestige of the Soviet planned economy. Analysis of recent research and publications has showed that the problem of public order in recent decades is not duly reflected in the works of local scientists. However, in post-Soviet countries a separate direction of research was formed to expand the capabilities of its use in economic transformation. The main focus of researchers is focused on issues of state contract system formation ? economic the mechanism for implementing order based on a single technological cycle. The aim of the study is to determine the causes and consequences of functional degradation of institute of government order in Ukraine and to determine the main directions of its reforms. Results. It is shown that state order and purchase in Ukraine in their current institutional structures with their vector and scale of their regulatory impact on business are destructive. We have found that the state purchases system in Ukraine is only used as a means of legal execution of some government spending, with no proper economical study and not aiming at national development. It is proved that the system of public purchases, which should only be intermediary for government order, is much larger than the latter, completely separate and independent of it, which is a paradox in the world economics. It does not ensure efficient use of public funds. Conclusion. Institute of public purchase and government order in Ukraine need fundamental reformations. Reforms should be directed at creating a public contract system, such systems in the developed Western countries can be the sample standard model.