Marchuk Rostislav – associate professor of the social development management of the National academy of public administration. Office of the President of Ukraine, candidate of jurisprudence

Mosyondz Sergey – associate professor of constitutional and administrative right department of the KROK University, candidate of jurisprudence, associate professor

Opposition to shadow economy – condition for providing the economic safety

The contemporary economy is in the state of reformation. It is caused by the total process of the criminalization of the economy and by the protection of system from the internal and external threats. The problems of the guarantee of stable and progressive development of real economy are caused by the functioning of shadow economy. In the solution of given problems the development of the specific methods of counteraction and preventive maintenance of shadow economic events are considered. As the shadow economy is the specific economic system, the protection against its threats provides also the system, which possibly operating on nation-wide program level.

This program must include two blocks:

1. The regulating unit, which is realized at the levels of the economic and normative- lawful regulation of shadow economic processes.

2. The guarding block, which is realized at the level of state law-enforcement actions.

The realization of this approach requires, first, accurate differentiation of criminal elements capital and the business executives staying in a shade. This should be reflected in the new economic-legal acts, in the legislation on struggle against the organized crime and corruption, and in the Criminal code of the Ukraine. It is necessary to reflect the determination of the part of shadow economy, which is subject to legalization, as the spheres of the functioning of those executives, whose expenditures of activity with the existing “rules of economic game” constantly exceed incomes. Development of the clear criteria of the differentiation of criminal elements and business executives staying in a shade is the most important task of economists, jurists and specialists of law-enforcement agencies.

In the second place, a constant correction of legitimate conditions of business activity is necessary for the purpose of creation and maintenance of favourable legal environment for business. In this case the priority should be behind strengthening of repressive, criminal- lawful measures. It concerns tax regime first of all this.

Thirdly, it is necessary to develop and to provide effective methods for the protection of population from the financial swindles, to ensure the guarantee for the protection of contributions and capital.

Fourthly, it is expedient to involve legal documents, which establish the legalization of the cash resources directed on the investment into branch of manufacture while applying the declarations of incomes and the expenses in the sphere of personal consumption.

Fifthly, the program of repatriation of domestic capital with their transformation into the real investment resource of state has to be developed and accomplished.

Sixthly, the effective public control over activity of managing subjects, which would provide access to the data about the economic offenses and the crimes in economy sphere, is necessary. It would facilitate the selection of partners in business.

Improvement demands:

– Standard regulation of the legal regime of property and right of owner to manage it, since the equality of rights of the state and particular form of property is not accomplished until now in the civil , administrative and criminal legislation;

– Legal regulation of investments;

– Legal regulation of foreign trade activity.

As far as the forms of sanctions for the economic crimes are concerned, world practice indicates the ineffectiveness of the imposition of money penalties, since they are shifted on the third persons – users and shareholders.

In criminal trial sphere it is necessary to significantly strengthen the possibility of the confiscation of the illegally acquired property in order to make accomplishment of the corresponding crimes “economically unprofitable”.

The contraction of regulating activity of states in the economy must not indicate the displacement of state law-enforcement measures. Furthermore, law-enforcement activity of states must even be strengthened. At the same time, the illegal activity of state special services to reveal the sources and neutralize the threats inevitably implicates special services into the competitive struggle. This presents serious threat from the point of view of the criminalization of most law-enforcement activity.

It is expedient to point out the following directions of the system formation for maintenance of safety of economic system and its stable functioning:

1. Improvement of the state- legal regulation of enterprise activity and its protection.

2. Improvement of the activity of state law-enforcement agencies.

3. Judicial protection of rights and legitimate interests of managing subjects.

4. Insurance of commercial risks.

5. Development of private security- detective activity, a professional training and the development of the programs of economic safety.

6. Information- analytical guarantee of enterprise activity, management of investment and commercial risks.

Therefore, to reliably and effectively counteract the shadow economy system it is necessary to accomplish the political system providing economic safety, which, in our view, must include both the creation of favorable conditions for the economic activity and complex of actions for the realization of the equal rights of the state and private ownership.