FORMATION OF COMPETITIVE ENVIRONMENT IN SOCIAL SPHERE OF UKRAINE

Keywords: competitive environment, social sphere, regions, country's economy, environment, identification, production, utilities, комунальні послуги

Abstract

One of the important problems of development of competitive environment in the regions of Ukraine is the social sphere. Developing a competitive social environment should not only cover traditional markets, but can also help to address many social problems that affect society as a whole. It should be noted that as economic reforms continue, functions will be redistributed between the executive, local self-government, enterprises, institutions and organizations in the field of construction, reconstruction and maintenance of housing in order to decentralize them. In order to develop standards for social protection of the population in today's economic environment, it is necessary to introduce innovations aimed at improving the productivity of resources, which make enterprises and organizations more competitive. Most inefficient use of resources at a company manifested in the form of incomplete use of materials and insufficient effectiveness of process management methods, which result in unnecessary losses, defects and the need to conserve large inventories of materials. But there are many other hidden costs that come to light after the sale of the product. Consumers have to incur additional costs when they use goods that pollute the environment or consume excess energy. Resources are inefficiently spent even when products containing usable materials are thrown away and consumers are paid - directly or indirectly - for the disposal of the products. The principles and methods of pricing in utilities in a centralized economy were formed on the basis of how they were determined at the enterprise, that is, in production. This approach inevitably led to the fact that production costs were taken as the price base. Hence, housing and utility planning is a cost-pricing method that has been criticized in the languages of the planned economy. Despite the fact that the problems of functioning of the housing and communal complex are constantly in the focus of close attention of the state administration of Ukraine, however, no serious positive changes in this area have occurred. This can be explained by the fact that the housing and communal services system is an infrastructure component of the system of state administration and local self-government, but it is invested according to the final principle. This is primarily due to the lack of a clear division of powers between state authorities and local self-government bodies, when practically no issues are considered at the state level and, consequently, issues related to the activity of housing and communal services are not solved, and their solutions are not resolved. completely translated into the shoulders and financial and economic bases of local governments - local councils. The main objects of housing and communal services are owned by territorial communities and directly - in the sphere of management of local self-government bodies. Under such conditions, it is not necessary to speak about full financing of the needs of utilities. Thus, competition in the housing market promotes the development of alternative forms of housing management, which will reduce costs and, consequently, the cost of services that will be available to the majority of the population. And this, in turn, means reducing social payments and reducing the burden on the local budget.

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Published
2019-12-30
How to Cite
VovkчS., & Vovk, T. (2019). FORMATION OF COMPETITIVE ENVIRONMENT IN SOCIAL SPHERE OF UKRAINE. Entrepreneurship and Innovation, (9), 131-135. https://doi.org/10.37320/2415-3583/9.21
Section
Demography, labour economics, social economy and policy