The Experience of the Leading EU Countries in Contention with Shadow Economy: Recommendations for Ukraine

Abstract

In modern conditions of global market transformations and change of technological state of Ukraine’s perception of itself as a country, which is a component of European integrational processes and an integral part of Europe has received features of the state strategy as a key priority of the stable social and economic development. Herewith one of the main tasks of Ukraine’s integration into the European area is the construction of the society oriented economy and implementation into practice of the democratic state standards. The problem of unshadowing of economic relations, which have become the result of market transformation of the national economy due to the great extent and different forms of shadow processes demonstration, essential influence on the economic dynamics, also demands immediate solution. An interesting fact is that unlike Ukraine the shadow economy is almost absent in the EU countries in such sectors as extraction of minerals, electric power industry and finances. Herewith, shadow economy has become a certain balancer of the western countries economy, that is the less is an incremental capacity in the official sector, the higher is the rise in the illegal one and vice versa. At the same time, it is rational to implement recommendations, which were introduced by FATF, World Bank and Тransparency International Ukraine, into national social and economic system not only because they are effective, complete each other and are aimed at coping with immediate national economic problems, but firstly because observance of the generally accepted world standards is an important step in acceleration of European integration processes. They increase the level of trust of the foreign partner countries towards Ukraine with the help of transformation of the national economy to the European standards.