DIRECTIONS OF DEVELOPMENT OF UKRAINE'S COMPETITIVENESS IN THE CONDITIONS OF GLOBALIZATION

Abstract

With the convergence of the national economies of some countries and the intensification of globalization processes, international competition between states is growing significantly. Therefore, for Ukraine, in today's conditions, it is important to find factors to increase national competitiveness. In most cases, competitiveness is understood as the ability of the national economy to occupy a leading position in the world market, which ensures the growth of living standards on the basis of an innovative economy. The international general indicators of competitiveness of national economies are the Global Competitiveness Index from the World Economic Forum and the Global Competitiveness Rating according to the Institute of Management Development. Both of these studies over the past decade demonstrate Ukraine's low position in international competitiveness rankings among other countries. Weak positions of the level of competitiveness according to different methods highlight the same problems in the socio-economic development of Ukraine: inefficient functioning of state institutions (significant level of corruption, lack of rule of law, and insecurity of property rights); low efficiency of the financial markets (unreliability of banks and underdevelopment of stock exchanges); macroeconomic instability (low credit rating of the country and high inflation); exacerbation of health problems (low per capita income and underdeveloped health infrastructure shorten healthy life expectancy and overall quality of life). Thus, the World Economic Forum classified Ukraine as a country in transition from a factor-oriented economy to an efficiency-oriented economy. For countries at this stage of development, the World Economic Forum, to strengthen national competitiveness, proposes to ensure the effective functioning of public and private institutions and stabilize the macroeconomic environment, and further improve the efficiency of production processes and training. Therefore, the directions of state policy in the field of increasing Ukraine's competitiveness should be: reducing the level of corruption, strengthening the efficiency of the financial market, ensuring macroeconomic stabilization, strengthening the country's labor potential.