Enhancing social benefit of financial and industrial groups via public administration

Lysevich, Sergey and Лисевич, Сергій Григорович and Лысевич, Сергей Григорьевич and Senchukov, Yaroslav and Zbaranskaya, Valeriya (2019) Enhancing social benefit of financial and industrial groups via public administration. Молодий вчений: Науковий журнал (3(67)). pp. 170-182. ISSN 2304-5809

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Abstract

The advantages and disadvantages of financial and industrial groups (FIGs) and their role in economic development, both abroad and in our country, are investigated. The advantages of FIGs include their high production, financial, human and economic potentials. Possible discrepancy between interests of society and FIGs, as well as the low social benefit of their activities in Ukraine should be mentioned among their short-comings. Business profiles of national financial and industrial groups are considered. They comprise mining and smelting industry, oil and gas sector, telecommunications, agricultural exports, pipe production, etc. Having analyzed the structure of exports and imports, it was established that a significant amount of the country's exports is related to the activities of national financial and industrial groups. At the same time, production of household commodities prevails in the structure of imports. According to statistics, in our country, imports exceed exports adversely affecting the gold reserves and the national currency exchange rate. Taking into account production and financial capabilities of financial and industrial groups, a proposal on state regulation of their activities is made. This regulation is aimed at the development of domestic production in order to produce goods demanded by the population of the country and domestic enterprises. These types of production include: the development of mechanical engineering, the processing of agricultural products, the development of the textile industry, etc. This approach will increase the output of consumer goods, reduce import dependence respectively developing domestic production and increasing social benefit of financial and industrial groups in the country. State influence is required for already operating financial and industrial groups as well as for newly created. Since abroad, FPGs were created with state help, Ukraine should also use legal and regulatory frameworks, tax and financial incentives to influence their activities.

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