IMPLEMENTATION OF THE MECHANISM OF SOCIAL CAPITAL REPRODUCTION IN ORDER TO CREATE CONDITIONS OF SUSTAINABLE ECONOMIC GROWTH
Analysis of economic dynamics of the country gives the opportunity to identify the features of low level of investments, slow production growth, weak industry diversification, slow productivity growth, bad conditions on the labor market and slow pace of economic growth. In economic theory condition, in which country that is developing can occur after certain period of economic growth and if any of these signs is available, is called - middle-income trap.
The prerequisites for overcoming of this problem is creation of favorable institutional environment, components of which can the following: a) effective economic policy that stimulates synergistic sectoral division of labor and the growing impact of production effectiveness; b) effective institutions that form the favorable environment and reduce the numerous business risks; c) mechanism of reproduction of social capital, which allows to use the benefits of cooperation by R. Coase, reduce transaction costs and provide alternative forms of public goods creation.
In this article two mechanisms of coordination between state and private and social sector are described and which facilitate the reproduction of social capital. This is the model of public-private partnership (PPP) and social bonds model. Their features are analyzed, the weak points and barriers concerning their effective implementation are singled out. A set of practical actions for research and further development in Ukraine of the new world practices of mechanisms’ formation of social capital reproduction is proposed.
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Keywords: economic growth, middle-income trap, social capital, transaction costs, social corporate responsibility, social issues, securitization, social impact bond, social bond, public-private partnership |
THEORY
Mozgoviy Oleg
Dr. in Economy, Professor
Yurkevich Oksana
PhD, Associate Professor SHEI «Kyiv National Economic University named after Vadym Hetman»
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