In fourth quarter 2015 general budget revenues increased 50.0% y/y up, general budget spending increased 55.0% y/y.The resulting rate of the consolidated budget deficit reached 1.6% of GDP.
Finally we are happy to present translation of the first part of The Road to Serfdom book by Friedrich von Hayek! It became possible thanks to everyone who donated for translation.
The goal of the book is to warn about the dangers of socialism. It is important to note that Friedrich von Hayek did not doubt high moral values of some socialists but he did doubt the instrument – state control over economy.
Ukrainian government institutions operate 3,690 state-owned enterprises. The law "On transparency of public funds' use" provides that detailed data on their daily expenditures have to be available online. As of March 31, 2016, only 329 SOEs complied with the law. Meanwhile those enterprises are one of the main sources of public funds' embezzlement.
How are the local currency and decentralization related? The history of local currency goes back to the Ancient Egypt and it became particularly popular after the financial crisis of 2008. Decrease of government spending on social programs and problems with receiving bank loans stimulate search for alternative resources. For this reason, local administrations and civic activists should pay attention to the local payment systems. As the history demonstrates, local currency is very useful in stimulating development and overcoming poverty.
In Ukraine, the debates on removing the moratorium on land are being renewed. How will the land reform influence the cost of the land and cost the land rent? What will the land owners gain and loose? This is the angle from which we analyzed the potential consequences of the land reform.
In the past 10 years Ukraine faces a paradoxical situation: majority of vocational school graduates are unemployed while there is a critical deficit of blue-collar specialists in the labor market. The problem is in the inconsistency between the scope and diversity of specialties offered by vocational schools and real needs of economy and labor market. Employers complain about low level of professional training of the graduates. The labor market situation clearly demonstrates the urgent necessity for changes.
Decentralization of the vocational training may help optimize educational costs by focusing on real needs and demands of regional industries. Read more on this and international experience of such reforms in our article.
In the modern world, countries heavily invest in innovative technologies and know-how. At the same time Ukrainian export is still compounded solely of raw materials. We sell relatively cheap raw products and buy expensive high-tech products, which we could otherwise produce ourselves. The reason is the lack of financial support from business which doesn't show any particular interest in investing in science. Why science in Ukraine is still underdeveloped, how to change approaches to science funding schemes and which new opportunities for international scientific cooperation constitute a chance to take the Ukrainian science out of a decay – read in our article.
Australian health care system is recognized to be one of the most successful in the world. Efficiency of the system is secured by the combination of state and private medical service providers and by the structure of funding of medical services in Australia.
In our article you will read about the importance of the primary health care stage, new models of health care system organization and how Australians found smart balance for distribution of resources between the citizens.
When we hear "public funds" or "public revenue", it seems that the state possesses its own resources that it may spend. The vast majority of Ukrainian citizens believe that the state should exploit its "own funds" to support domestic producers or entire industries, create jobs, provide subsidies and public transfers - basically, "develop the economy". However, the notion of the state's "own funds" is literally nonexistent. Then what can we attribute to the state's own money?
Where does the government take money for "benefits and support"? Is there a dark side of natural gas subsidies, loans and fight against unemployment that we should know about? Our latest report gives answers to these and many other questions.