Scientific Collection «InterConf», (39): with the Proceedings of the 8th International Scientific and Practical Conference «Science and Practice: Implementation to Modern Society» (December 26-28, 2020) at Manchester, Great Britain

Keywords: market self-regulation, structural changes, sustainable development, 
expanded cooperation. 
 
The global structure of international markets functions taking into account the 
risks of international competition inherent in all countries, but concentrated in 
different markets. This reveals certain contradictions between international market 
realities and neoliberal concepts of market perfection regarding the economic benefits 
of unconditional external openness [7]. The task of market cooperation in such 
conditions is to minimize the external vulnerability of markets by using their inherent 
mechanisms and tools, including contrary to the interests of foreign market partners. 
The Ukrainian market is characterized by a fairly high degree of trade openness, 
which determines its dependence on changes in foreign markets. The development of 
the Ukrainian market is largely determined by the availability and effectiveness of 
market self-regulation mechanisms necessary for the liberalization of the state's 

---

 SCIENCE AND PRACTICE: IMPLEMENTATION TO MODERN SOCIETY
129 
foreign trade and Financial Policy and capable of adequately countering numerous 
existing and potential risks. 
The unprecedented socio-political crisis of 2013, burdened by the lack of 
structural reform, led to a large-scale crisis in the domestic market of Ukraine in 2014-
2015. The economy was negatively affected by the occupation of part of Ukraine's 
sovereign territories by the Russian Federation and the military conflict in the east of 
the country, which resulted in the destruction of established supply chains and a 
reduction in industrial production in the Donetsk and Luhansk regions. The rapid fall 
in prices for commercial products on world markets led to a weakening of Ukraine's 
position in foreign markets and a decrease in real GDP (in 2014 – by 6.6%,
in 2015 – by another 9.8%) [4]. The socio-economic imbalances accumulated in 
previous periods led to the need for significant budget adjustments, which further 
worsened demand in the domestic market. There was a rapid depreciation of the 
hryvnia (in 2014 – by 47%, in 2015 – by another 33% against the US dollar), the 
consolidated state budget deficit in 2014 it reached 10.1% of GDP [4], and the 
recession led to a banking crisis caused by the outflow of deposits and an increase in 
the share of non-performing loans. At the same time, there was a growing trend in 
Ukraine's external debt and the ratio of state-guaranteed debt to GDP. Reform 
programs developed with the assistance of the World Bank and the IMF have reduced 
the described imbalances and stabilized the economy to a certain extent. During this 
period, there was a gradual improvement in the investment climate, which was 
facilitated by an improvement in the financial results of economic activities of 
domestic market entities, an acceleration in the pace of implementation of energy-
saving projects, and an increase in the level of business expectations (by 16.2% in 
2019 compared to 2016). The growth of operational efficiency with a corresponding 
increase in gross value added occurred in the chemical industry, mechanical 
engineering, IT services, and the agro-industry. 
At the same time, the rate of consumer inflation gradually slowed down and in 
2019 showed the lowest value in the period 2014-2019 (4.1%). The study of the 

---

SCIENTIFIC COLLECTION «INTERCONF» | № 3(39)
130 
dynamics of macroeconomic indicators in general and in the context of their individual 
components allows us to assess the trends of economic growth, stagnation or decline 
of the domestic market and anticipate the need for structural changes in the economic 
system (Table 1).