No 6/2017 ______

The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine No 6/2017 Registered by Founding institution: the Ministry of Justice of Ukraine The Legislation Institute of the Verkhovna Rada of Ukraine

Certificate of the state registration of the mass Editorial board: media vehicle КВ No. 16712-5284Р of June 9, 2010. Baimuratov M. O., Doctor of Law, Professor; Boguslaw Banaszak, Doctor of Law, Professor, Dr h.c. multi; Frequency: 6 Issue(s) per year Bersheda Ye. R., Doctor of Economics, Professor, Corresponding Member of the National Academy of Sciences of Ukraine (Editor-in-chief); Free of charge Bykov O. M., Doctor of Law, Senior Research Associate; Borysenko Z. M., Doctor of Economics, Professor; Buromenskyi M. V., Doctor of Law, Professor, Corresponding Recommended for publishing by Academic Council Member of the National Academy of Law Sciences of Ukraine; of the Legislation Institute of the Verkhovna Rada of Voloshyn Yu. O., Doctor of Law, Professor; Ukraine (Minutes of Meeting No. 13 of December 27, Vorotin V. Ye., Doctor of Public Administration, Professor; 2017) Haman M. V., Doctor of Public Administration, Professor; Grinenko O. O., Doctor of Law, Senior Research Associate; Dmytriiev A. I., Doctor of Law, Professor; Editorial Board: Zhyliaiev I. B., Doctor of Economics, Senior Research Associate; 4, Nestorivskyi provulok, Kyiv, 04053, Ukraine Zhuravskyi V. S., Doctor of Law, Professor, Academician of Tel. (+38-044) 235-96-01 the National Academy of Law Sciences of Ukraine; Fax (+38-044) 235-96-05 Klymenko O. M., Doctor of Law, Professor; E-mail: [email protected] Kolomiiets I. S., Candidate of Legal Sciences, Senior Research Associate (Executive Secretary); Kopylenko O. L., Doctor of Law, Professor, Corresponding Materials may be reproduced only with reference Member of the National Academy of Sciences of Ukraine; to the source Kuznichenko S. O., Doctor of Law, Professor; Kuian I. A., Doctor of Law; Herbert Küpper, Doctor of Law, Professor; Pursuant to the Decree of the Ministry of Mantsevych Yu. M., Doctor of Economics, Professor; Education and Science of Ukraine of 21.12.2015 Matsiuk A. R., Doctor of Law, Professor; No. 1328 the publication is included in the list of Myshchak I. M., Doctor of Historical Sciences, Senior the scientific professional publications in the fields Research Associate (Deputy editor-in-chief); of Law and Economics. Minchenko R. M., Doctor of Law, Professor; Pursuant to the Decree of the Ministry of Motrenko T. V., Doctor of Philosophy, Professor, Education and Science of Ukraine of 22.12.2016 Corresponding Member of the National Academy of No. 1604 the publication is included in the list of Pedagogical Sciences of Ukraine; the scientific professional publications in the fields Pohorielova A. I., Doctor of Politics, Associate Professor; of State Administration Pryhodko H. V., Doctor of Law, Professor; Savkov A. P., Doctor of Public Administration, Professor; Selivanov A. O., Doctor of Law, Professor, Academician of the National Academy of Law Sciences of Ukraine; Serhiienko V. I., Doctor of Economics; Shapoval V. M., Doctor of Law, Professor, Corresponding Scientific articles are published in author’s Member of the National Academy of Sciences of Ukraine; edition. Shemshuchenko Yu. S., Doctor of Law, Professor, Academician Opinions expressed do not necessarily reflect those of the National Academy of Sciences of Ukraine; of the Editorial Board. Shvets M. Ya., Doctor of Economics, Professor, Corresponding Member of the National Academy of Law Sciences of Ukraine; All rights reserved. Friedrich-Christian Schroeder, Doctor of Law, Professor; © The Scientific Papers of the Legislation Institute Yarmysh O. N., Doctor of Law, Professor, Corresponding of the Verkhovna Rada of Ukraine, 2017 Member of the National Academy of Law Sciences of Ukraine. No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 3

CONTENT

LAW

Theory and History of State and Law

Volvak О. M. Theoretical aspects of the effectiveness of the legal regulation in the islamic law ...... 5

Omelchuk V. V. Clergy participation in judicial proceedings codification of the Hetmanate in the first half of the 18th century ...... 7

Constitutional and Municipal Law

Bondarev О. B. History of introduction and trends of development of ombudsman institute in Ukraine ...... 9

Demidenko V. О., Kovalchuk O. V. Results and problems of the reform of local self- government in Ukraine and the improvement of legislation in this area ...... 10

Korostashova I. M. Right to serve in local government: analysis of the main requirements ... 11

Kosynskyi V. V. To the issue of the development of parliamentarism in Ukraine ...... 12

Kuprii V. M. Procedure for implementing changes to the Constitution in the foreign countries ...... 13

Labour Law; Social Security Law

Dreval Yu. D. The fundamental principles of the International Labor Organization activity in the globalization process ...... 15

Land Law; Agricultural Law; Environmental Law; Natural Resources Law

Burakova A. M. Place of invalidation of power subjects decisions in the system of ways to protect land rights ...... 17

Odaryuk M. P. About the legal nature of procedures in land law ...... 18

Fedchyshyn D. V. About the limits of exercising of land rights: concept and features ...... 20

Administrative Law and Administrative Process; Financial Law; Informational Law

Hrebenyuk M. V., Lukianchuk R. V. Some questions of legal regulation of cryptocurrency circulation as financial tools of global digital economy ...... 21

Klimova S. M. Public interests in public finance management ...... 23

Moroz Ye. S. On scientific developed of questions of participation of organs of state financial control in the administrative deliktual process of Ukraine ...... 24

No 6/2017 4 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Criminal Law and Criminal Process

Shcherban Ye. V. Formation and essence of the institute of representation of legal entities in the criminal proceedings ...... 25

Law-court structure; Prosecution and Advocacy

Brynzanska O. V. Reforms of judicial system in Poland: possibility for using in Ukraine ...... 27

ECONOMICS

Hnatieva T. M., Davydyuk O. O. Analysis of the level of protection of economic interests of agrarian production in Ukraine integration to the world economic space ...... 28

Naumov O. B., Stoyanova-Koval S. S. Methodological contours of state regulation of development and security of socio-economic systems ...... 30

Naumova L. M., Fomishina V. M. Strategic imperatives of development of international economic relations of Kherson region economy ...... 32

Pavlova A. M. The economic preconditions for using financial leasing in shadow schemes .... 34

Sopotsko O. Yu. Methodical approaches to the supply chain management of perishable products according to implementation of the conception of supply chain management ...... 36

Tretynychenko Yu. A., Khalatska I. I. Methodological basis assessment of balancing work road transport enterprises ...... 38

STATE ADMINISTRATION

Vorotin V. Ye. Modernization of education and science as an object of state administration: a competitive advantage for Ukraine ...... 39

Gryshova I. Yu., Fedorkin D. V. Conceptual approach to public administration of ecological safety of agrarian production ...... 41

Protsiv O. R. Influence of the tax policy of the authorities in Galicia in the middle of the 19th – beginning of the 20th centuries on hunting and fishing ...... 43

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 5

LAW

Theory and History of State and Law

Oleksandr Volvak

THEORETICAL ASPECTS OF THE EFFECTIVENESS OF THE LEGAL REGULATION IN THE ISLAMIC LAW

The article is devoted to the general problems of the definition of legal regulation and its effectiveness, the formation of axiological foundations of the criteria for the effectiveness of the legal regulation of Muslim law There is obvious interpenetration and interaction between civilizations, and therefore there is a scientific interest in the clarification of the theoretical aspects of the effectiveness of legal regulation in Muslim law, which is due to the high success of some of the countries-representatives of the religious legal family in ensuring political, economic and social well-being. The need to study the peculiarities of legal regulation in Muslim law is also due to the necessity of expanding international cooperation of Ukraine with the states of the Muslim world, improving the principles of foreign policy and introducing the best practices of legal. The solution of the problem of the effectiveness of legal regulation in the current conditions of the development of the legal system of Ukraine appears to be one of the leading ones, as it provides an opportunity for sustainable development of law as a regulator of social relations. Consequently, the importance of legal regulation for the successful development of society should be noted, since it is the effective legal regulation that ensures protection of the rights of the individual, stability, order and organization of society, realization of prospects for social and economic development. In view of this recognition of the importance and social value of law led to the need to study the problem of the essence of legal regulation and ways to increase. The effectiveness of legal regulation can also be evaluated according to different criteria. One of its possible indicators is to find out whether the specific methods of regulating influence on people's behavior (permissions, prohibition, obligations, recommendations, incentives, etc.), which are selected in the process of legal regulation of social relations, are provided by the appropriate forms of implementation of legal norms (use, performance, compliance). Another approach to assessing the effectiveness of legal regulation is to analyze to what extent the specified forms of implementation of the law ensure the achievement of the entire spectrum of scheduled for its planning of legal objectives: the final and intermediate, main and secondary. The realization of the value of law as a regulator of social relations in order to ensure the optimal level of rights and legitimate interests of man and the related factors for the actions of the individual in achieving this value - are the conditions for effective legal regulation. In our opinion, in order to determine the effectiveness of the right regulation, it is necessary to proceed from the value-purpose approach, which involves determining, firstly, how the idea of freedom, equality, justice, humanism, tolerance, and, second, is achieved in the legal regulation of certain public relations. the purpose of regulation, and how (qualitatively and quantitatively) indicators of development of social relations that were subject to regulation by means of the law. The Shariat (the established path) indicates that the Muslim must believe, and in what does not, indicates to the believers what it is necessary to work and what is not. This is a collection of how to say absolute norms (Nass, Mnusus), which are regulated and enshrined in the texts of the Qur'an, Sunni (law, sample) and Tefsiru, which constitute a higher level the hierarchy of sources of Muslim law and Ijmu, Kias, Urf, Amal, Khanun and Adab). The laws and teachings of Islam are given by Allah, and therefore they are not variables, they have a divine origin. He who affirms his Creator of all things, He who knows what is best suited to specific conditions, corrects all errors. The idea of unity of the state and religion proceeds and is based not only on the religious unity of the Ummah but on the expectations of Islam to preserve religion, life, honor, wealth, intelligence, progeny, as well as the protection of the rights. The effectiveness of legal regulation in Muslim law is achieved first of all by the power of religion and fear of Allah in the failure to comply with its provisions. In this case, the criterion of effectiveness

No 6/2017 6 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine is the unity of faith and consciousness; dogmas, canons of the Qur'an and the way of life of a Muslim and the definition and protection of the rights and freedoms of the individual. The main values of Islam and Islamic law, as its parts are inextricably linked. Fundamental values on the basis of which it is possible to determine the effectiveness of legal regulation as a kind of social regulation in Muslim law are: Ummah, Tawhid, Fiber, Hassan, equality of all people and religious pluralism. Consideration of the criteria of the effectiveness of legal regulation in Muslim law, based on the values of Islam, is impossible, without taking into account their dynamic development, within the limits of certain social relations that have developed between the subjects.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 7

Volodymyr Omelchuk

CLERGY PARTICIPATION IN JUDICIAL PROCEEDINGS CODIFICATION OF THE HETMANATE IN THE FIRST HALF OF THE 18th CENTURY

One of the directions of strengthening the effectiveness of the Hetmanate's legal institutions was the implantation of a new Code. Work in the direction of codification of the disparate rules of law in the Cossack state lasted as early as the 20's. XVIII century. At the same time, the differences of legal orientations of different groups of Hetmanate population were noticeable. Note the differences in the positions of representatives of the clergy in protecting their class interests. The object of this research is the participation of the Church in the political and legal processes of the Hetmanate. The subject is the representation of monks and clergy in the process of Ukrainian codification of the first half of the eighteenth century. The purpose of the article is to find out the features of the Church's participation in putting in order the rules of the Hetmanate's right. The question of codification of various rules of law in Hetmanate was one of the most urgent in the reign of Daniel Apostle. It was logical to involve representatives of the clergy in this process in view of the role of the Church in the Hetmanate's political and legal model. In 1729 in the Hetmanate a register of 30 persons was already made. There were representatives of the clergy who were sufficiently prepared for this important work. However, Hetman chose only some of them, in particular, the Polotsk and Dulahiv archpriest. Since the composition of the commission was not limited, Hetman appealed to the Kyiv and Chernihiv bishops with a request to send from each of them a monastic abbot for participation in her work. However, Kyiv Archbishop and Lavra Archimandrite informed Daniel of the Apostle about their fears of sending their representatives without the Synod. Hetman appealed to the State Collegium of Foreign Affairs, noting that he had the right to involve him in the Cossack state for the consolidation of the rights of individuals in accordance with the imperial decree. Commissioning was a step forward in the system of streamlining Ukrainian legal proceedings. It was about the growth of the social struggle in the Hetmanate, the increase of lawsuits number against residents of the Hetmanate to clergy. The codification work intensified after the election of Hetman K. Razumovsky. However, in autumn, the senior council of 1758 did not justify the expectations entrusted to her. K. Razumovsky approved the order of gradual approval of the Charter at the congress in Glukhiv on January 10, 1759. The Cossack elder drew attention to the absence of a commission of the clergy. December 26, 1758 Z. Borsuk reported on a new order of the Archimandrite Luke Code. Hetman's political leadership believed that the rules of the Third Lithuanian Charter better protect their rights than the newly created Code. This was clearly evidenced by the Glukhiv Congress of 1763, in which representatives of Cossack elder expressed themselves to preserve the validity of the norms of the Lithuanian charter. Even after the removal of K. Razumovsky, the revision of the Code lasted until 1767. At the same time, the Little Russian Collegium, by its decree, ordered the Cossack administrative and judicial bodies to bring representatives of the Kyiv-Pechersk Lavra to the codification commission. However, if the Cossack orders concerned the defending of the elements of statehood, then the position of the clergy was determined, first of all, by the group interests of its state and the Church as an institution. At the same time, there was also no complete unanimity among the various clergy groups. At the same time, certain circles of Ukrainian priests continued to be faithful to the traditions of autocephaly, despite the centripetal aspirations of the Russian Orthodox Church. They did not show a desire to return to the jurisdiction of the Kiev Metropolitan Chernihiv and Pereyaslav hierarchy. The mark of that is the request for guarantees of stauropigy from the Kyiv-Pechersk Lavra and the Kyiv- Mezhygirsky Monastery. Instead, the Kyiv Metropolitan, with his entourage, expresses the desire to restore the autonomy of the Ukrainian Church. In all directions that were included in Synod of Hetmanate, the need of unlimited right to monasteries to own, sell and buy land and movable property was emphasized. The parish clergy also demanded the abolition of the decree of 1728, which prohibited him to buy Cossack land and restoring the right to chopping alcoholic beverages. The orders of the Ukrainian clergy were confused by the Synod, which for a long time could not determine which clauses should be included in the synodal order. December 8, 1768 None of the articles that demanded the restoration of the autonomy of the Ukrainian Church, did not fall into the

No 6/2017 8 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine synodal order, and the resolution of the problem of the metropolitan title was passed to the MP. In the Synod protocol, the criteria for selecting the requirements for inclusion in the synodal order are generally silenced. However, the position of the Church in the empire at the legislative assembly was not discussed at all. Before the codification work, beside the Cossack senior officer, representatives of the clergy were involved. The involvement of the representatives of the Hetmanate clergy, in particular the monasteries, in the codification committee's involvement was evidenced by the nation-wide nature of the codification, deduced the activity of this body beyond the constitutional representation, and allowed the possibility of taking into account the positions of various social classes and groups in the elaboration of the final version of the draft code.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 9

Constitutional and Municipal Law

Oleksii Bondarev

HISTORY OF INTRODUCTION AND TRENDS OF DEVELOPMENT OF OMBUDSMAN INSTITUTE IN UKRAINE

The article analyzes the historical aspects of the implementation and trends of development of the constitutional institute of ombudsman in Ukraine. The peculiarities of the constitutional process concerning the introduction of the post of the Ukrainian Parliament Commissioner for Human Rights and determination of his legal status are considered. The dynamics of changes in the constitutional and legal status of the ombudsman since its introduction in Ukraine have been studied. An integral principle of legal statehood and the main vector of the rule of law is the value of human being, the inalienability and inviolability of his/her rights. The need for realization of these tasks determines the content and orientation of the activity of the modern democratic state of law and the constant need to improve the means of their achievement. The relevancy of the study of the history of introduction and trends in the development of the institution of the ombudsman in Ukraine is due to its special place in the system of institutional guarantees of human and citizens’ rights and freedoms in the modern democratic legal state, the need for its further development, as well as the search for an optimal model of organizational structure and functional component in the context of the implementation of the constitutional duty of the state to establish and secure human rights and freedoms. The introduction in Ukraine of the constitutional institute of the Ukrainian Parliament Commissioner for Human Rights (hereinafter - the Commissioner) became an innovation in the state mechanism and the legal system of the state. A detailed study of it began in the early 90's of the twentieth century, when the country took the course to build a democratic state governed by the rule of law. At this time, the idea of introducing an ombudsman institution received some ground for its realization. With the adoption of the Constitution of Ukraine in 1996 the legislative process on the institution of the ombudsman in Ukraine received all the grounds for activation. The Constitution of Ukraine, as it is known, has defined the principles of the legal status of the Commissioner in Articles 55, 85, 101 and 150. Having consolidated the right of everyone to apply for the protection of their rights to the Commissioner in Art. 55 of the Constitution of Ukraine, the state thus defined the universal nature of the jurisdiction of the ombudsman. The Constitution of Ukraine and adopted on its basis the Law of Ukraine «On the Ukrainian Parliament Commissioner for Human Rights» provides for the relatively strong nature and content of the Ombudsman's model, which is distinguished by the following features: the high constitutional status of the Commissioner, enshrined in the Constitution of Ukraine; the independence of the Commissioner from any government body or local self-government, their officials; the introduction of a single model of the ombudsman at the national level; wide jurisdiction of the Commissioner which extends to both public authorities and local self-government bodies and their officials; significant powers to conduct proceedings and inspections, including on its own initiative. The institute of the Commissioner became one of the important elements of the system of guarantees of human and civil rights and freedoms in Ukraine. It should be noted that the permanent idea of constitutional reform, which received a new impetus after the adoption of the Constitution of Ukraine in 1996, did not attract much attention to the ombudsman institute in Ukraine. An analysis of a number of draft constitutions of Ukraine suggests that the overwhelming majority of them provided for the same provisions established in the current Constitution of Ukraine. Only a bill initiated by the former President of Ukraine V. Yushchenko in 2009 provided for the establishment of the territorial offices of the Ombudsman. Thus, since 1996, changes in the legal status of the Commissioner in the part of a significant expansion of his competence update the study of a number of problematic aspects that were the subject of discussions at the first stage of the constitutionality of its status. In this context it should be emphasized that the institution of the Commissioner for Protection of Constitutional Rights of Military Personnel is a very relevant area of research, considering the peculiarities of its subject structure and the qualitative level of legal regulation of specialized parliamentary control in this area.

No 6/2017 10 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Volodymyr Demidenko Oleksandr Kovalchuk

RESULTS AND PROBLEMS OF THE REFORM OF LOCAL SELF-GOVERNMENT IN UKRAINE AND THE IMPROVEMENT OF LEGISLATION IN THIS AREA

The article is devoted to the study of process d the formation of the local self-government in Ukraine. Along with achievements, outlined certain problems on the way of realization multi-vector local government reform, particularly with regard to decentralization, local communities, as well as directions for solving them. Is European and world experience shows that local problems can only be dealt with effectively at the local level. The State should never best e will not solve them in each mu village and or bridge and street or dvor and, rather than local authorities. The postsocialist countries of Central and Eastern Europe have gone to decentralisation and as a result got a huge boost for the lasn wow development. The principal step to the success of the reform was the adoption of the law «On voluntary association of local communities» 2015. Perspective plans do not oblige the community to unite, they define only its possible scope. Fundamental to the process of unification did not have any «dead zone» when weak communities will not right. That’s why mentioned with law provides that the prerequisite is the existence of such a plan at the regional level, and go the way ohm union or wait is most communities. United communities will be able to carry out borrowing, choose an institution from the maintenance funds of local budgets in the part of the budget development and budget revenues of their own institutions. It should be emphasized that with the adopting the Law of Ukraine «On the State of regional policy in Ukraine» implemented efectiv European regional mechanisms and local development. Not you can not stated that the reform of local self-government in Ukraine differs from similar reforms in other European countries, above all complex tasks and it is very difficult to provide both at legislative level and at the level of law enforcement. Reforming local governments cannot be seen in isolation, it should be integrated into wider or global project of modernization of the Ukrainian State that decentralization and regionalization are not by themselves an end in itself, but must be one of the instruments for consolidating, strengthening the unitary of the Ukrainian State. Modern reform of decentralization came at a stage when the quantitative indicators should be converted into a new quality: the new quality of service provision, a new quality of life. The reform of the and its results are designed to to move directly to the level of specific communities, local residents and scope of the compounding , transport, etc. Is impossible without qualitative changes in the legal field, modernization of legislation in the prime order should be amended to the Constitution of Ukraine, in particular regarding the formation of the executive bodies of region and district councils and the distribution of powers between them; developed and approved a new version of laws on local self-government, service in bodies of local self- government, on local state administration, other normative legal acts on the introduction of the mechanism of the direct sovereignty, improvement of legal regulation of procedures of the general meeting of the citizens of the place of residence and the installation of additional guarantees of self- organization, the realization of the rights of local communities to voluntary association and cooperation on the basis of resource and organizational cooperation and obtaining State support for realization of projects of such cooperation, etc. Need the proper provision of forms of partnership relations between public authorities and local governments, institutions of civil society and the private sector, aimed at the development of local self- government, the well-being of the local population.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 11

Iryna Korostashova

RIGHT TO SERVE IN LOCAL GOVERNMENT: ANALYSIS OF THE MAIN REQUIREMENTS

The effectiveness of the work of local government directly depends on the professionalism of municipal officials. Today, there are problems associated with the lack of necessary professional competence among employees of local government. Analysis of the current legislation of Ukraine allowed the author of this article to determine the significance of legal categories applied in the current and prospective legislation on municipal service. The comparative characteristic of the current and prospective legislation of Ukraine about the service in the local government regarding the rights to the service and the requirements for the candidates for positions in the municipal service was made. Today, the right to serve in local government have the citizens of Ukraine which conformity the qualification requirements (relevant education, vocational training and proficiency in the state language and regional languages in volume sufficient for the performance of official duties). Qualification requirements to officials of local government (relevant education and professional preparation training) are now regulated in Ukraine by a subordinate normative act, which has a recommendatory character. The drafters of the new law «About the service in local government» grant of the right to serve in local government – only citizens of Ukraine who have reached the age of eighteen who are fluent in the state language and comply with the requirements for the professional competence of candidates on municipal serve. The requirements for the professional competence of candidates on municipal serve specified directly in the draft of the new law, the norms of which contain certain restrictions for citizens in exercising the right on service in the local government. In the draft law provides for a new classification of posts in local government (three categories of posts – I, II and III (instead of the current seven). In the draft law «About the service in local government» also provides for the existence of common (regulated at the law level) and special (local character) requirements for the professional competence of the candidates on the position of the officials of local government. The concept of «professional competence» was defined as the ability of a person to fulfill certain tasks and duties, which is determined by the level of education, work experience and possession of special knowledge and skills. General requirements for professional competence in the draft law «About the service in local government» concern: a) education (without specifying the specialty, but with the specification of the levels provided for by the Law of Ukraine «About the Education» and the Law of Ukraine «About the Higher Education», for certain categories and positions of municipal officials) and b) the general of experience and / work or the experience of service or work of experience in the management positions (specifically defined in the draft Law for specific categories and positions of the municipal officials). Such innovations in the legislation of Ukraine will make it possible to intensify the process of professionalization of municipal officials, but will substantially restrict the rights of citizens on the serve in the local government on the posts belonging to the I and II categories (managerial positions in local government). It should be also noted that since the right to determine the special (additional) requirements for the professional competence of municipal officials by the developers of the draft law is granted of subjects who directly appoint municipal employees to posts (in each municipality), in future this may lead to various abuses which violate the right of citizens of Ukraine on serve in local government. The author of the article identified shortcomings of the current and prospective legislation on service in local government and formulated of conclusions and proposals for improving legislation in this sphere.

No 6/2017 12 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Viktor Kosynskyi

TO THE ISSUE OF THE DEVELOPMENT OF PARLIAMENTARISM IN UKRAINE

Since centuries Ukraine has been moving towards the development and establishment of the democratic principles for the formation of the authorities, as evidenced in the monuments of political and legal thought, in particular the Cossack chronicles, the Constitution of Pylyp Orlyk, the State views of such thinkers as M. Drahomanov, I. Franko, M. Hrushevsky etc. These ideas had crystallized and had become practical in the years of the Ukrainian Revolution, when the Ukrainian Central Rada (URC), which assumed the role of a temporary parliament, implemented its eternal aspirations of Ukrainians to independence through their constitutional and legal acts. Already 100 years since the adoption of the Third Universal of the UCR, which was formed by the Ukrainian People's Republic on November 7th, 1917, and on January 22th, 1918, the Fourth Universal of the UCR proclaimed the independence of the UPR, which elected the parliamentary form of democracy. In three months later on April 29th, 1918, the UCR adopted the Basic Law of the State – the Statute on the State System, the rights and freedoms of the Ukrainian People's Republic. Drawing parallels with the current Constitution of Ukraine, the right of legislative initiation had as well as traditional actors deputies and the government, parliamentary fractions, self-government bodies, which unite at least 100 thousand voters, and directly voters – citizens of the Republic, with a population of at least 100 thousand people Summing up the development of our newest statehood at the turn of the millennium and returning to the beginning of the twentieth century by the period of its formation, we are absolutely convinced that it was precisely this potential of national revival, the joint efforts of all elements of civil society during the Central Rada, when Ukraine began to build its own the state system of the Ukrainian People's Republic on the basis of parliamentarism and the rule of law, have become a precursor and result of recognition by the international community of Ukraine as a State, setting the maximum possible at that time common interests of parliamentary and legal status of the state and its basis – Ukrainian society, which laid solid foundation for its competitiveness at the international level, and faith in its future generations a better future The four-year struggle of the Ukrainian people for its independence, independence and freedom in the difficult vicissitudes of the Ukrainian Revolution ended with the regeneration of the Russian Empire in the form of federative state formation of the Union of Soviet Socialist Republics. Since then, the prevailing ideology in Ukraine has become not the rule of law, but the dictates of the will of the ruling party. As a result of usurpation and terror, a political force came to power, which proclaimed the previously unprecedented form of government – an aggressive minority of society called the dictatorship of the proletariat, and in words expressed itself as the most perfect democracy. The new page in the history of Ukrainian parliamentarism began on July 16th, 1990 from the adaptation by the Verkhovna Rada of the Ukrainian SSR of the Declaration on State Sovereignty of Ukraine. The development of Ukraine on the principles of the Declaration on State Sovereignty was twice supported by the Ukrainian people in 1991: by a convincing majority on March 17 during the All-Ukrainian poll on the entry of Ukraine into the Union of sovereign states on the principles of the Declaration and on December 1 during the All-Ukrainian referendum in support of the Declaration of Independence of Ukraine. As noted in his speech at the solemn sitting of the Verkhovna Rada of Ukraine on the occasion of the 20th anniversary of the adoption of this important state-political document, the Chairman of the Verkhovna Rada of Ukraine V. Lytvyn: „It is desirable and the pace of bringing Ukrainian legislation to international standards in the field of human rights. And so far not everything has been done to maximize the precise application of the European Convention for the Protection of Human Rights and Fundamental Freedoms”. Public and scientific thought have long given their objective assessment of these system processes, as well as causal connection in their essence. The lack of mutual understanding between the authorities and the people leads to negative spills of public disobedience in the form of extreme forms such as squares with their jurisdiction, overlapping of main railways and roads, blocking and seizing state institutions, etc. There is a significant imbalance in Ukraine between the European standards of human and citizens' rights and freedoms, as implemented in Ukrainian constitutional law, and their real compliance. At the initial stage, there is a perception in society of such fundamental principles.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 13

Vitalii Kuprii

PROCEDURE FOR IMPLEMENTING CHANGES TO THE CONSTITUTION IN THE FOREIGN COUNTRIES

The article investigates the foreign experience of the procedure for introducing changes into the basic law of the state. On the basis of the comparative analysis of the constitutions of Australia, Austria, Belgium, Brazil, India, Spain, Italy, Germany, Portugal, United States of America, France, Switzerland, Japan and many others, the common features and differences of constitutional regulation of the process of amending the fundamental law of the state has been carried out. Four ways of making amendments and additions to the Constitution are considered: flexible, rigid, semi-rigid and especially rigid. Flexible constitutions are amended in the same manner as ordinary laws. There are no special procedures for this. The rigid constitutions are amended in a more complex order than the adoption of the ordinary law. In this case, there are several rigidity options that are used in different countries. The main stages of the procedure for introducing changes to the constitution were singled out: 1) the initiative and preparation of an act on amendments to the Constitution; 2) adoption of the law on amendments to the Constitution; 3) approval of the adopted law; 4) entry into force of the law on amendments. The initiative to introduce constitutional changes in states with a democratic regime may belong to the citizens and the legislature. In states with an authoritarian regime this procedure belongs to the head of state or the executive power. The proposal to amend the text of the Constitution must comply with certain conditions. If the draft law on amendments to the Constitution in a number of countries can be introduced by one Member of Parliament, the draft amendments to the Constitution shall be introduced by the head of state, government, group of deputies, subjects of the federation. The draft law on amendments to the Constitution may be drafted by the head of state, parliament; in some countries, the draft law may be drafted by a specially created body for this (constitutional commissions, special consultative body, constituent assembly). The right to pass laws on amendments to the constitution (constitutional laws) belongs to the parliament, which carries out it on its own or with the participation of citizens (constitutional referendum). Amendments to the Constitution should be adopted by a qualified majority of the votes of the parliament (2/3, 3/4, 3/5). In some countries, it is required that the Bill on Amendments to the Constitution should be adopted twice, at a certain interval in time. In most countries, the parliament finally adopts a law to amend the Constitution. In the world practice, the procedure for approving amendments to the Constitution by parliaments of two convocations also takes place. Under these conditions, it is assumed that several parliamentary committees will vote on the adoption of the relevant act. In some countries, the decision of the parliament must be approved by a referendum, or in federations – by the subjects of the federation. Almost always, the new Constitution establishes rules, which prohibit revision of certain provisions of the Constitution (a form of government, the right for democratic opposition, the principles of multi-party system, etc.). In many countries, in order to ensure the stability of the Constitution, there are rules that do not allow revision of the Constitution during the state of emergency, sometimes –

No 6/2017 14 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine within a specified period after its adoption. As a rule, the president (head of state) can not apply the veto right to constitutional changes. In the overwhelming majority of the constitutions the unequal order of changes to their various sections is established. In some countries, the Constitution provides for several modalities for making appropriate changes that relate to each other as alternatives. The procedure for amending the Constitution in most countries is enshrined in a separate section of the Basic Law.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 15

Labour Law; Social Security Law

Yurii Dreval

THE FUNDAMENTAL PRINCIPLES OF THE INTERNATIONAL LABOR ORGANIZATION ACTIVITY IN THE GLOBALIZATION PROCESS

The article is devoted to the fundamental principles of the work of the International Labor Organization under the challenging conditions of our time. The most important documents of the program value, which contain international labor standards and modern approaches to the settlement of social and labor relations, are analyzed. The Declaration of Principles and Rights at Work (1998), the Declaration on Social Justice for Equitable Globalization (2008), and the Decent Work Program are investigated as particularly important standards. These documents are complex in nature and define a clear mechanism of the implementation of the fundamental principles and rights in the field of labor. The International Labor Organization (ILO) is a specialized UN agency that has been developing international standards and standards for social and labor relations for nearly a hundred years. At the moment, the value of the ILO activities is constantly growing, which, in the first place, is due to the powerful processes of globalization. The various aspects of the ILO activities are intensively investigated by specialists in labor law, economics and some other areas of scientific activity. The subject of legal research is increasingly the question of the classification of international legal acts in the field of labor, as well as the problems and prospects of ratification of individual conventions. The purpose of the article is to systematize the modern program documents and approaches of the ILO, aimed at regulating the most important aspects of social and labor relations. There are a number of important decisions in the work of the ILO, which for decades predetermine the international policy of protecting people. In this sense, the 1998 Declaration of Fundamental Principles and Rights in the World of Work, the Declaration on Social Justice for Equitable Globalization 2008 and the Decent Work Program are of crucial importance. The 1998 Declaration of Basic Principles in the Labor Code includes: (a) freedom of association and real recognition of the right to bargain collectively; (b) the abolition of all forms of compulsory or compulsory labor; (c) a real ban on child labor; (d) prevention of discrimination in employment and occupation. The logical development of principles and rights in the world of work was the adoption of the Decent Work Program. Worthy work was acknowledged as «the ability of men and women to engage in decent and productive work in terms of freedom, equality, economic security and respect for human dignity.» Over time, it undergoes qualitative changes and attitudes to the processes of globalization. In the new conditions, the ILO is primarily concerned with ensuring «fair globalization», which has become one of the most important features of the modern social and labor relations. Under «fair globalization», according to the definition of the ILO, is such a globalization that creates favorable opportunities for all participants in social and labor relations. In the ILO Declaration on Social Justice for the sake of equitable globalization in 2008, the main manifestations and consequences of the processes of globalization that are directly related to social and labor relations and the protection of the people of work are already systematized. The basis for solving many problems emphasizes the need for global and integrated approaches that should be in line with the Decent Work Agenda and the four ILO Strategic Objectives. Therefore, the four strategic tasks that the Organization and the Member States must implement are foreseen and carefully elaborated: · promotion of employment; · development and expansion of social protection measures; · promotion of social dialogue and trilateral dialogue; · observance, promotion and implementation of the basic principles and rights in the field of labor.

No 6/2017 16 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

In further reports on similar issues, the emphasis is already placed on the practical implementation of the principles and rights in the workplace, which are laid down in the basic documents. Therefore, today, issues of improving the ILO program principles and international labor standards are becoming particularly important. The first is the full respect for civil liberties, beyond which the principles of freedom of association can not be fully realized, meaningful social dialogue, as well as the need for more concerted action by the Organization and the Member States.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 17

Land Law; Agricultural Law; Environmental Law; Natural Resources Law

Alla Burakova

PLACE OF INVALIDATION OF POWER SUBJECTS DECISIONS IN THE SYSTEM OF WAYS TO PROTECT LAND RIGHTS

The Constitution of Ukraine (Article 13) establishes that the state ensures the protection of the rights of all subjects of property rights and economic management. The Basic Law of Ukraine also enshrines equality before the law of all without exception of subjects of property rights and guarantees to each of them the protection of its rights and freedoms. These constitutional requirements are of decisive importance for the subjects of land legal relations. Principle provisions of the Constitution are directly embodied in land law. Yes, in Ch. 23 of the Land Code of Ukraine «Protection of rights to land» are concentrated norms defining ways of protecting rights to land plots, guarantees of ownership of land, as well as responsibility of executive authorities and local self-government bodies for violating the right to ownership of land and for issuing acts, which violate the rights of land owners. The land legislation of Ukraine guarantees and provides to both physical and legal persons equal conditions and ways of protection of the right to ownership of land and rights to use them. In particular, Part 2 of Art. 152 of the Criminal Code of Ukraine provides that the owner of a land plot or a land user may demand the removal of any violations of his rights to land, even if these violations are not connected with the deprivation of the right to own a land plot, and compensation for the damages caused. Protection of rights to land is the protection of the powers and interests of specific subjects – the owner of a land plot or user of it. At the same time, the protection is subject to separate powers, and taken in aggregate. The right to protection is the possibility for the authorized person to apply law-enforcement measures that ensure the restoration of the person's right of appeal. This right has a constitutional nature. It exists within the framework of relations between the state and a particular subject. The question of ways of protection lies in the area of differentiation, the division of the legal category of «protection» into certain types. When we list the existing ways to protect the rights of those contained, for example, Art. 152 of the Criminal Code of Ukraine, or we analyze an individually defined method of protection, we actually list the individual characteristics inherent in the «defense» itself in individual cases, or we analyze one of these characteristics. The invalidation of an act of a state body or local self-government acts as a measure of protection of land rights. First, such an event does not have the character of property liability, since, first of all, the result of its implementation is the recognition of the act invalid, what is protected and restored violated rights of participants in land relations. At the same time, its application is aimed at the restoration of property or non-property subjective rights of land and protected by law interests in the same amount as a violation. Secondly, in order to declare the act invalid as a measure of protection, unlike the measures of liability in the field of land relations in general, it is not characteristic of the person of the offender, the fault, his property status, etc. These circumstances do not affect the application of the measure of protection. And, thirdly, unlike liability measures, which are usually used in cash, the use of this measure of protection is directed at restoring the legal status of a particular person in kind. Specificity of the invalidation of an act of a state body or local government as a way of protecting land rights is that, in the first place, it always performs the function of protection and, accordingly, acts solely as a measure of protection of land rights. The requirement to declare an act invalid can be of an independent nature, if the interest of the subject of law is reduced to the mere statement of the invalidity of an act that impedes, for example, the realization of the right, and combined with other methods of protection of land rights, for example, for compensation for damage. Thus, the institution of invalidation of a legal act is aimed not only at protecting land rights and private interests protected by law, but also in protecting public-law interests, which, accordingly, pursues the objective of protecting the rule of law as a whole. This indicates the inherent public-law legal nature of this institute. In addition, it is necessary to distinguish between invalidity as a method of protecting the rights and as a sign of a legal phenomenon, which testifies to its defect and the consequences of invalidity. It should be borne in mind that the task of the authorized bodies is not only in recognizing such an act invalid, but also in eliminating the consequences of the application and execution of these acts. Indeed, even unlawful acts in accordance with the presumption of legitimacy of acts of the state actually create rights and responsibilities.

No 6/2017 18 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Mykhailo Odaryuk

ABOUT THE LEGAL NATURE OF PROCEDURES IN LAND LAW

In modern legal science, approaches to understanding the legal nature of procedures in the law can be divided into four groups. Thus, representatives of the theory of law, branch sciences, including land law, singled out such approaches as activity, system and algorithmic. The clarification of the legal nature of procedures in land law must begin with an understanding of this legal phenomenon, through which the essence of each of the identified approaches is revealed. So, analyzing the main provisions of theories that characterize one or another approach, we will try to reveal the nature of the land legal procedure. Recall that the procedure in land law proposed to consider a complex legal phenomenon, which is a system of regulated procedural norms, legally fixed, formally determined acts of active behavior of motivated entities that have legal consequences in the form of the emergence, change or termination of land legal relations, the acquisition, realization and termination of land rights or fulfillment of obligations by the respective owners, users of land plots and other land relations participants. In this aspect, it should be noted that from the side of the citizen - one procedure, consisting of a system of actions aimed at acquiring ownership of a plot of land for gardening, and on the part of state authorities and local self-government, is a completely different system of actions that, in turn, are already aimed at alienating the land. Such a system of actions is regarded as an independent procedure, which is significantly different from the privatization procedure provided for the citizen. Taking into account the methodological basis of the systematic approach to understanding the procedures in land law, one can speak of the actual identification of them with the legal relationship. At the same time on the foreground are two basic provisions. The first is the attribution of the behavior of subjects to the legal relationship, and the second, in turn, reduces to the affiliation of the procedure to the content of the legal relationship. It seems that maintaining a systematic approach in understanding the procedures in land law and identifying the legal nature of procedures in land law with legal relationships can hardly be considered successful. Let's consider it on a concrete example, using the theoretical developments and practical achievements in the field of land management, which testify that the identification of the essence of procedures in land law with legal relationships should not be conducted. In Article 1 of the Law of Ukraine «On Land Management», the latter is defined as a set of socio- economic and environmental measures aimed at regulating land relations and rational organization of the territory of administrative-territorial units, economic entities carried out under the influence of socio-industrial relations and the development of productive forces Consequently, a brief review of the structure of legal relations in the field of land management, it can be argued that their structure includes relations, for example, the formation of land, land management, organization of territories, etc. However, considering the formation of land, it is worth noting, that depending on the way in which order and in what order it is carried out, Article 79 (1), in fact, defines different procedures for the formation of land plots. Thus, according to the above norm, the formation of a land plot can be carried out in the following order: 1) withdrawal of land from the lands of state and communal property; 2) by dividing or combining previously formed land plots; 3) by defining the boundaries of land plots of state or communal ownership of land management projects in order to streamline the territories of settlements, land management projects in order to regulate the territory for urban development needs, land management projects concerning privatization of lands of state and communal agricultural enterprises, institutions and organizations; 4) by inventory of lands of state or communal property in cases stipulated by law; 5) on land management projects regarding the organization of land parcels (shares). Consequently, within the framework of legal relationships in the field of land management, legal relations in the field of land plots are singled out. In turn, within the framework of the legal relations arising from the formation of the land, there are five independent from each other, the procedures for such a formation. So, proceeding from this, the identification of the procedure and the legal relationship is meaningless. At the same time, not only an example of the legal relationship in the field of land management can be used to illustrate the impossibility of identifying procedures with legal relationships.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 19

It seems possible to conclude that there is a close relationship between procedures in land law and land legal relations. Procedures, like the system of actions of the relevant subject, are directed at the acquisition, change and termination of land rights, the performance of the respective duties. Consequently, in the system of legal relations, land legal procedures play an independent role, which consists of normative, technical and legal support for the realization of the land rights of the participant in the relevant legal relations. The procedures are carried out within the framework of the land legal relationship, but in no way are these relations. One legally significant, statutory action, preceded by another, and in fact, is a prerequisite for it. That is, it can be argued that the order, continuity, and sequence in committing the corresponding actions to achieve a certain result are a system that is built exactly in the sequence that is necessary to achieve the result in the form of obtaining the social benefits of land law. Confirmation of this can be considered expressed in the literature of the opinion that the legal procedure is understood as regulated by law or other normative and legal acts an order consisting of consecutive actions. The essence of the legal procedure is due to the nature of the material and legal relations, for the implementation of which it serves. Its peculiarity is that it is applied in the field of law. Thus, any procedure in the land law represents a systemic sequence of legally meaningful actions, which are legally located in such order, where one action is preceded by another and acts as a prerequisite.

No 6/2017 20 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Dmytro Fedchyshyn

ABOUT THE LIMITS OF EXERCISING OF LAND RIGHTS: CONCEPT AND FEATURES

In today's conditions, the possibility of free and unimpeded exercising of land rights is one of the most important directions of the implementation of the state's legal policy. While exercising their subjective rights by the individuals a collision often takes place: the right of one person begins to contradict the right of another. Then a question about the limits of exercising of rights arises. As stated in the general theoretical law doctrine, law limits freedoms of each person to certain limits in order to ensure unimpeded and calm use of rights by person. It also guarantees freedom inside of these limits. Freedom of every person reaches its limit and after it the freedom of other people begins. While establishing these limits, law helps to ensure that in the social life of humanity prevailed order based on freedom. It is considered that the limits of the exercising of subjective right are those envisaged by the acts of legislation or treaties, in which the authorized person can acquire the opportunities contained in the legal consolidation of these rights. It is noted that there are several classifications of the limits of exercising of land rights. Depending on the legal construction there are: 1) individual limits of exercising of land rights – such limits set by the parties at the contract level, which have the highest level of detail; 2) common limits – ordinary rules of the law, which are dispositive, and therefore act only in the absence of the establishment of individual limits between the parties of the contract; 3) overall limits – operate in the absence of any other restrictions in the contract or the law. Also, depending on the consequences that should be avoided while exercising subjective rights, there can be: 1) limits aimed at preventing harm to land and land plots; 2) limits aimed at preventing harm to subjects of land rights; 3) the limits aimed at preventing the creation of obstacles in the exercising of rights; 4) the limits aimed at preventing abuse of rights. There are several criteria that can be distinguished from the realization of land rights: 1) Exercising of these rights according to their purpose. In this case, the person must use his right not only to secure his personal interests, but also in order to correspond the interests of the whole society and state. As example, Art. 21 of the Land Code of Ukraine proclaims that types of use of a land plot within a certain category of land (except agricultural land and land of defense) are determined by its owner or user independently within the requirements established by law for the use of land in this category, taking into account urban planning documentation and documentation on land management. 2) Exercising of subjective land rights are limited by certain time limits. Where it is necessary the current legislation establishes certain time limits for exercising of land rights. These terms determine the time limits for exercising of a subjective right. So, for example, Art. 93 of the Land Code of Ukraine stipulates that the right to lease a land plot may be alienated, including sold at land trades, as well as transferred to a pledge, an inheritance or entered into the authorized capital by the owner of the land plot – for a term up to 50 years. 3) While exercising their land rights, landowners and land users must comply with environmental requirements. Because according to the Art. 1 of the Land Code of Ukraine the land is the main national wealth which is under special protection of the state. The property right to the land is guaranteed. Use of land ownership cannot do harm to the rights and freedoms of citizens, interests of society, to worsen ecological situation and natural qualities of the land. 4) The limits of exercising of land rights are also determined depending on the way in which these rights are realized. The right to use land may be exercised either on the basis of the title of the right of permanent use, or on those rights based on the contract, such as the right to lease, servitude, emphyteusis and superficies or any other contract, which provides for the person opportunity to acquire the right to use land plot. 5) The norms of morality, the requirements of reasonableness and integrity of conduct, the purpose of law affect the formation of the limits of exercising of land rights. The sense of the requirements to act reasonably, conscientiously, fairly, humanely is to orient the subjects, as well as law enforcement bodies for the mandatory consideration of the rules of morality in their activities.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 21

Administrative Law and Administrative Process; Financial Law; Informational Law

Maksym Hrebenyuk Ruslan Lukianchuk

SOME QUESTIONS OF LEGAL REGULATION OF CRYPTOCURRENCY CIRCULATION AS FINANCIAL TOOLS OF GLOBAL DIGITAL ECONOMY

In the article the world experience of cryptocurrency implementation into the circulation is investigated. The analysis and features of cryptocurrency using in world payment systems have been analyzed. The main object of the research in this article is bitcoin – the most common of cryptocurrency. The importance of cryptocurrency as a completely innovative payment tool in the modern conditions of the development of computer technologies is determined. Based on the results of the studying of international practice of cryptographic system functioning, the advantages and disadvantages of using bitcoin in the world economy as a financial tool and innovative payment instrument are determined. The proposals on the regulation of the cryptographic market and operations with them at the international and national levels are given. The proposals on the regulation of the cryptographic market and operations with them at the international and national levels are given. The relevance of the article due to the fact that at present the world economy is in the initial stage of implementation of modern digital technology. There are significant radical transformations in different areas of international business and economics, with increasingly apply the advanced digital technologies that are currently developing faster than a global legislation governing these processes. The research development and implementation of cryptocurrency is relatively new, since only started in the 80's of last century. The problems of cryptoсurrency circulation were investigated by domestic scientists, in particular: O. Halytskyi, O. Moroz, E. Molchanova, Y. Solodkovskyi, A. Koldovskyi, K. Chernega, A. Polchanova, E. Halushka, M. Kunitska-Iliash and others. In the jurisprudence a legal regime of cryptocurrency was studied by: S. Verlanov, I. Doronin, A. Protsenko, A. Harkusha, L. Nikitina. However, the legal regulation of the global model of the cryptocurrency treatment at both the national and global levels is not sufficiently investigated by domestic scientists, which determines the relevance of further scientific research. Along with the review of scientific publications, which analyzed the global experience of the functioning of virtual currencies and transactions with them, the subject of processing were approved regulatory acts to ensure legal regulation of the circulation of cryptology. The aim of the paper is to study the international experience of implementing digital technologies in all spheres of the world economy and to determine the peculiarities of using cryptovolume in world payment systems, as well as to substantiate the expediency of regulating the legal regulation of the circulation of cryptographic goods in the world. The crippling process is irreversible, since it cannot be canceled, blocked or challenged. Consequently, bitcoin, the decentralized digital currency, was the first significant proof of the successful operation of Blockchain Systems and is an abstract form of money. The subject of study was approved regulations to ensure a legal regulation of circulation cryptocurrency. The purpose of research is to study an international experience in implementing digital technology in all areas of the global economy and identifying the features using cryptocurrency payment systems in the world, the providing a legal regulation of the cryptocurrency circulation in the world, studying an international practice of cryptocurrency use as a financial tool of a global digital economy. Most fraudulent transactions on the stock exchanges of virtual money is due to the fact that the processing of the legal regime of cryptovate and legal regulation of transactions with them is only at the initial stage of development. In view of this, cryptographic generators remain vulnerable and carry out operations at their own risk. Only in the case of a normative definition and consolidation of the status of cryptovolume may prosecution of «virtual» fraudsters and criminals. In the future, government and bank regulators are also expected to provide preference miners with a view to minimizing risks when generating a virtual currency.

No 6/2017 22 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Given this situation, the issue of regulating the circulation of cryptographic goods is relevant for many countries of the world. The authors state that there is an urgent need to intensify the efforts of the world community in order to accelerate the development and, in the long term, approval on the basis of the International Monetary Fund and other international financial institutions of the relevant convention, which will make it possible to clearly define both conceptual apparatus in cryptic currency and also solve the issues of legal regulation of the cryptography as a global digital economy financial tool. This question remains relevant for Ukraine as well.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 23

Svitlana Klimova

PUBLIC INTERESTS IN PUBLIC FINANCE MANAGEMENT

Public interests created by the state are the foundation for the establishment and functioning of state and public institutions. Private interests reflect the needs of citizens and organizations and are a key factor in their activities. The need to take into account private and public interest in the financial sphere characterizes the modern interaction of the individual, society and the state. Their optimal ratio is possible for respecting the interests of each other, for their mutual responsibility in the financial sphere of society. Otherwise, society gets their confrontation and even conflicts. An appeal to scientific works makes it possible to distinguish analytical researches on public interests that became the subject of scientific analysis of such scientists as E. Dmitrenko, I. Zharovsky, E. Lakusheva, O. Makukh, O. Pidoprigora, S. Pogrebnyak, P. Rabinovich, S. Savchenko, V. Selivanov, O. Kharitonov and others. The object of research is the public interest that arises when providing public finance management. The category «interest» is multifaceted and includes the legal component. Analysis shows that in modern legal science, public interests include such varieties as: public interests; national interests; the interests of social groups (large and medium). Considering the legal aspects of the category of «interest», E.V. Lakusheva found that any legal norm expresses some interest. The interrelation of law and interest is that the law expresses interests, ensures their protection and protection, and establishes the order of their implementation. Being objectively expressed, the legally established norm of law becomes part of that objective reality, in conditions and in the light of which new interests arise and are realized. Right is a form of existence of interests. Today, the concept of the balance of private and public interests has not been properly developed in the legislation, although it is the pursuit of a balance of such interests to serve as the basis for its reform. In a generalized form, public interest serves the purpose of ensuring the integrity and sustainable functioning of society, and has a special order of implementation. The general objective of public interest in the financial sector is the balance of the financial system. The role of the decisions of the Constitutional Court of Ukraine and the European Court of Human Rights in solving the problems of the correlation of public and private interests during the organizational and legal provision of management of public finances is analyzed. Analyzing different points of view regarding public interest in financial and legal regulation, O.V. Makuh highlighted his signs, which are not identical to the signs of public interest in ensuring the management of public finances. Consequently, in order to distinguish between administrative relations in the financial sphere and the clarification of public interest, it is possible to introduce into the scientific circle the term «management of the circulation of public finances», which should be understood structurally formed phenomenon. «Composed» of its properties and characteristics are formed as a result of the interaction and mutual influence of individual phenomena, segments and blocks of management and legal and financial systems, and management and financial relations are regulated primarily by the administrative law of Ukraine. In this way, we considerably broaden the notion of «public administration», systematize its internal structure, specify the subject of administrative law and distinguish between a group of financial relations that are regulated by another branch of public law – financial. The Public interest in the financial sector of public administration plays a regulatory role, and its essence is that: 1) interest prompts its bearer for actions that are subsequently formed in the form of the basic principles of domestic financial policy, but are implemented through managerial and financial legal relations ; 2) in order to distinguish public interest in the financial sphere of public administration from the interest of «financial activity of the state», it is proposed to introduce the term «public finance management» in the scientific circle, which points to a certain sphere of public administration; 3) the emergence of a public interest protected by law is a guarantee of further realization of the subjective competence of public administration in the field of finance; 4) the need for proper regulation of a plurality of public interests is a guide for the norm-maker in the improvement of financial, administrative and constitutional legislation, as well as for the creation of a case-law through the adoption of appropriate court decisions. No 6/2017 24 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Yevhen Moroz

ON SCIENTIFIC DEVELOPED OF QUESTIONS OF PARTICIPATION OF ORGANS OF STATE FINANCIAL CONTROL IN THE ADMINISTRATIVE DELIKTUAL PROCESS OF UKRAINE

Study of any object it is expedient to conduct in a theoretical and praxeological plane, leaning on the level of development of certain public relations, on scientific achievements in a select sphere, that allows to find out the blanks of the legal adjusting, outline directions of scientific searches, put a task and offer author vision of ways of their decision. Therefore an important value has consideration of the state of scientific developed of those or other phenomena for the use of complex approach and construction of integral model of all research that predetermines the purpose of this publication. Questions, related to financial control, activity of his organs, repeatedly became the article of secret services of scientists in different sentinel periods, both within the limits of legal and economic specialties. However, without regard to existent ponderable scientific subsoil in the field of financial control, the fragmentarily is traced in the study of participation of organs of state financial control in an administrative deliktual process. The last shows by itself independent industry which engulfs and, different from financially control legal relationships, relations of judicial character. Entering into such legal relationships, the organs of state financial control acquire new status (than it is stopped up for their creation a financial right). And just the same the aspect of many-sided activity of these public organs remains out of eyeshot researchers, that is confirmed the conducted monitoring of domestic monographic labours. Category «financial control» is one of most probed in science of financial right: in a period from 1997 to on 2017 it became the article of scientific search 58 times in a right and over 60 times – in an economic sphere. The study of domestic works from the legal aspects of financial control gives possibility his researchers to unite them in a few groups: 1) the general questions of this phenomenon, his development and transformation are analyzed in which; 2) devoted the separate constituents of financial control, his forms; 3) related to realization of financial control those or other organs, in a that or other sphere. As a system of organs of state financial control, by virtue of absence of it legislative fixing, causes a discussion and presently,, taking into account normative legal orders in relation to plenary powers of supervisory subjects (in particular, and possibilities of bringing in to the administrative deliktual sphere) but leaning on opinions of the known legislators in the field of financial law, to such organs the Account chamber of Ukraine and central organ of executive power is taken in this research, in commission by Cabinet Ukraine on realization of public policy in the field of state financial control (Government public accountant service of Ukraine and it territorial subsections). Because of absence of complex developments in relation to participating of organs of state financial control in to administratively deliktual process, there are of interest scientific labors in which the questions of application of institute of responsibility are affected in a financial legal (to financial control) sphere, the judicial constituent of which the proper jurisdiction realizations are, to our opinion. In this direction found out the row of works in which responsibility is examined for violation of budgetary, tax, financial legislation, as a financial legal category in the wide understanding, from point of all its varieties, and responsibility for the commitment of budgetary, financial, tax, custom offences – after Code about administrative offences. At choice thematic directions of scientific researches legislative changes which take place within the limits of the legal adjusting of administrative, financial, judicial legal relationships influence sure, and also there are theoretical and practical problems, predefined blanks and collisions of the normative legal providing and objective and subjective factors of their overcoming. Questions of administrative deliktual process are in sign of research workers by virtue of under exploitation him theoretical principles, categories and institutes, inter-branch connections, and also practical necessity of system improvement of current legislation, in this sphere. Studies related to the select object the scientific revisions of domestic scientists, which outline the state of his research and allow modeling the orientation of scientific search, can be grouped after such category vectors: (1) legal status of organs of state financial control, in particular, their plenary powers, right and duties, responsibility; (2) financial legal responsibility and its grounds; (3) administrative responsibility after: (à) violation of budgetary (tax, custom, financial) legislation, (á) violation of requirements of financial control, (â) other violations, related to the corruption; (4) an order of realization is in matters about administrative offences (misconducts). No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 25

Criminal Law and Criminal Process

Yevheniia Shcherban

FORMATION AND ESSENCE OF THE INSTITUTE OF REPRESENTATION OF LEGAL ENTITIES IN THE CRIMINAL PROCEEDINGS

The formation and development of the institution of representation of legal entities in criminal proceedings is an effective tool for the protection of rights and legitimate interests, since criminal proceedings involve direct interference with the activities of enterprises, institutions, organizations, including not only the seizure of property, which is also inherent in the administrative process, but also temporary access to things and documents, search and other investigative actions envisaged by the Criminal Procedural Code of Ukraine (hereinafter referred to as the CPC of Ukraine). Such circumstances entail so-called «close communication» with the bodies of pre-trial investigation, therefore, in a criminal proceeding, a legal entity acts through a representative who defends its interests and rights. For some time, the scientific community and practitioners have discussed the question: can a legal entity be recognized as a criminal law entity, or can it appear in a civil action only as a civil plaintiff or defendant? The Soviet criminal process did not clearly regulate the procedural status of a legal entity as a victim. For a deeper penetration of the issues studied, it is advisable to turn to the experience of foreign countries, which is somewhat different from domestic practice. For example, the German legislation has a significant arsenal of sanctions for legal entities, which, in their influence, may well be equated with criminal liability. In Germany, there is a quasi-criminal (administrative and criminal) liability of legal entities. The Criminal Code of France in 1992 provides for the possibility of criminal liability of any legal entity, with the exception of the state. Antitrust law was passed in Japan, which provides for the criminal liability of corporations. Criminal liability of legal entities is provided in the Netherlands, Portugal and Finland. In Ukraine, the Criminal Procedure Code of 28.12.1960, which expired, provided for the participation of a legal entity in a criminal proceeding, but the Code did not foresee the use of the institution of representation of a legal entity in a criminal proceeding. The Law of Ukraine of 23.05.2013 «On Amendments to Certain Legislative Acts of Ukraine in Connection with the Implementation of the Action Plan for the Liberalization by the European Union of the Visa Regime for Ukraine as to the Responsibility of Legal Entities» (the «Law») supplemented the Criminal Code of Ukraine with Section XIV-I «Measures of a criminal-legal character with regard to legal entities», however, did not make changes in the part of the subject of criminal responsibility to the General part of the Criminal Code of Ukraine. In view of the above, it is obvious that the legal entity also needs the help of a representative capable to assert the protection of her legitimate interests. Such protection becomes especially important in cases where an investigation is conducted in parallel with the employees of the management, the interests of which may not coincide with the interests of the legal entity itself. Thus, representation is the only means of implementing the procedural status of a legal entity in a criminal proceeding. Involvement in the conduct of a representative of a legal entity will only facilitate the observance and enforcement of these principles, and preventing it from participating in the proceedings – are a direct violation of them. In our opinion, a significant gap in the CPC of Ukraine is the fact that the procedure for obtaining a lawyer, as a representative of a legal entity, the status of a participant in criminal proceedings, has not yet been established. In procedural science, the issue of the procedural position of the head of a legal entity in criminal proceedings is controversial. Given that the criminal process by nature is fundamentally different from the civil process, we propose to supplement the existing CPC of Ukraine with the provisions on the mandatory participation of a defense counsel in case of suspicion to the head of the legal entity in respect of which proceedings

No 6/2017 26 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine are being conducted. To differentiate between the concepts of «defender» and «representative», it would be advisable for the CPC of Ukraine to consolidate the following concepts: «Legal person’s defender» is a lawyer who is not in the state of the legal entity in respect of which proceedings are being conducted and, in cases established by law, may represent its interests; «The representative of the legal entity in respect of which the proceedings are being conducted» is a manager or other person authorized by law or constituent documents, an employee of a legal entity who has the right to represent the rights and interests of a legal entity and a person who has the right to be a counsel in a criminal proceeding. Conclusion. In science, the unity of opinion about the essence of representation of legal entities has not yet been achieved, as a result of which the constituent provisions of this institution have not received proper coverage. There are a lot of scholars» opinions that are controversial. We believe that today there are problems of normative regulation of criminal procedural legislation. In our opinion, the proper legal regulation of the involvement of legal entities in participation in pre-trial investigation and judicial proceedings would contribute to the effective implementation of the principles of competition in criminal proceedings.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 27

Law-court structure; Prosecution and Advocacy

Olha Brynzanska

REFORMS OF JUDICIAL SYSTEM IN POLAND: POSSIBILITY FOR USING IN UKRAINE

Nowadays Ukraine reforms institutions of judicial power. The fundamental document which determines the most important directions of reforming of judicial power is the Strategy of reforming of judicial system, proceedings and auxiliary legal institutions on 2015–2020 years which was approved by President’s edict № 276/2015 (April, 20, 2015). The goal of the Strategy is alignment of the institutions of judicial power to the standards and values European Union. It is caused for learning of foreign states’ experiences in the sphere of judicial power reform. The experience of Poland is especially useful, fist of all, because during long time Poland, like Ukraine, had undemocratic state. Also Poland and Ukraine have similar legal tradition. Aside from that there was a reforming of judicial power according to the standards of European Union in Poland. It makes opportune to study the experience of Poland in the sphere of judicial power. In article prerequisites for reforms of judicial system in Poland are explored. The basic factors which predetermined a formation of judicial institutions includes: 1) political struggle between the social movement «Solidarity» and The Communist Party of Polish People Republic. The results of this struggle consists of the background of state power as a system of legislative, executive and judicial powers, from one side, and a passing of new laws in the sphere of judicial system, from other side. One is the most important law in that time was «Act about National judicial council» (1989). National judicial council is a special state organ for appointment, retirement and disciplinary control of judges. The main goal of National judicial council is to assure independence of judicial power. 2) passing of Constitution of Poland (1997). Constitutional statements about judicial power and judicial system make necessary to pass or change laws in the sphere of judicial system, especially «Act about National judicial council» (2001), «Act about general courts» (2001), «Act about military courts» (1997), «Act about administrative courts» (1997), «Act about The Supreme court» (2002). Nowadays these acts are legal ground of judicial power in Poland. 3) reduction of judicial system of Poland in conformity to the European standards (2004). During the process of preparation of Poland to European integration many changes in acts in the sphere of judicial power have place, especially about standards of guarantees for judges. The factors like those there is in the context of reforming of judicial power in Ukraine. In Poland and also in Ukraine the most discussive issues are organization of judicial system and protection of independence for judges. But it doesn’t mean that any legal experience of Poland should be applied during judicial reform in Ukraine. The fact is that reduction of judicial system of Poland in conformity to the European standards doesn’t guarantee for real independence for of judicial power. Some projects of acts about judicial system are considered by Parliament and the President of Poland. First of all, it is a new redaction of «Act about National judicial council», «Act about The Supreme court», «Act about general courts». The changes includes: 1) appointment and retirement of judges by the Minister of Justice of Poland (first redaction of act, which was changed by the President of Poland); 2) retirement of judges by the President of Poland and his right to prolong the judge cadence; 3) appointment of the members of National judicial council by the Seim (a Chamber of Parliament); 4) right to appeal any court decision for last 20 years in the Supreme court. Nowadays the members of National judicial council are appointed by representatives of judge self-organizations. No wonder that proposition of judicial reform was considered by polish citizens as attempt for limit independence of judicial power because the procedure of separation of candidates in National judicial council will depend on political parties in the Seim and the President of Poland. Also European Commission evaluate new redaction of «Act about National judicial council», «Act about The Supreme court», «Act about general courts» as dangerous for european values for independence of judges. It means that political will can make attempt to control judicial power by organs of legislative or executive power or a head of the state despite of membership in The European Union and European standards of democracy. One of the most important ways to solve a problem a building of containment and balance in state power. Complexity and topicality of the theme grounds a need for its farther research.

No 6/2017 28 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

ECONOMICS

Tetiana Hnatieva Oleksandr Davydyuk

ANALYSIS OF THE LEVEL OF PROTECTION OF ECONOMIC INTERESTS OF AGRARIAN PRODUCTION IN UKRAINE INTEGRATION TO THE WORLD ECONOMIC SPACE

The article analyzes the state financial resources for the agrarian production of Ukraine in comparison with the countries of the European Union, assesses the impact of state support for the protection of the economic interests of agrarian production. Protection of the economic interests of agrarian production requires continuous improvement of institutional provision, which is conditioned by a combination of long-term economic, political, social and environmental goals. Only by continuously improving the mechanism of institutional provision of agrarian development, guided by the prospects for the future, it is possible to achieve the set goals for national food security, the formation of the modern and necessary market of raw materials for industry, to increase export potential, to create the necessary conditions for the life of the rural society. The complexity of the situation is that the solution to this problem is hampered by the lack of systematic harmonization of the organizational and economic components of agrarian reform; incompleteness of scientific and theoretical substantiation of agrarian reform in the country. The article emphasizes that insufficient attention to the institutional regulatory policy of the state in the agrarian production of Ukraine is devoted to the problem of shortage and inaccessibility of financial resources for producers engaged in purely rural economy and not integrated into integrated structures; promotion of uncontrolled super-concentration of resources in agroholding formations without having to bind them to the problems of the village; a tactical, non-systematic consequence of the motives of the outside market; the intransigence of the interrelationship relations with the disparity of prices; promotion of extensive production with a low yielding of foreign crops; not the return of the appropriate quality of production with a low level of product quality, therefore the main competitor of export crops is their cheapness; the absence of a functional, accessible for the small and medium-sized business of the marketing infrastructure of the agrarian market, which leads to a steady increase in revenue. The study of economic and economic indicators of the effectiveness of politics and institutional regulation has shown that the effective policy of regulating agricultural production is not only a dynamical increase in the quality of life, but also the welfare of the intermediary. The evidence of the truth of the settlement is deprived of their own resources for extinction, and not the fact that they were subject to an exaggerated extortion. The average monthly salary grew steadily, but has not yet reached the average level in the Ukrainian economy. Earlier employers are less accustomed to drinking, keeping seasonal and thus maintaining the relative competitiveness of the product. The lack of guarantees for high-income employment for the peasant, as well as the well thought- out policy of the state in this regard, is again confirmed by an even greater attachment of the industry to the export model of development, and the external situation contributes to this. Assessing the development of agrarian production as an object of institutional regulation, in a more specific perspective, attention was paid to the factors of the formation of economic interest and the motivation of rural development: the dynamics of average monthly wages, the share of employed population in agriculture, and the overall dynamics of gross domestic product and the share of the sector as indications systematic policy of ensuring the sustainable development and protection of the economic interests of agricultural production and the prospects of scientific and technological progress. Conclusions regarding the tendency to protect the economic interests of agrarian production as an object of institutional regulation, we note that, on the one hand, the activities of regulatory institutions are definitely available, on the other hand, elements of market self-regulation are decisive. The latter is especially noted in the case of Ukraine, because the results we have are mainly the effect of favorable conditions. The state, in the absence of its financial resources to support the sector, carries out unsystematic regulation. However, the results of the functioning of agrarian production are positive, especially in recent years, despite the general crisis of Ukraine's economy.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 29

The peculiarities of agrarian production as an industry that is budget-generating for Ukraine and which now requires the use of specific regulatory instruments, is that classical approaches are not always effective here. Noting that the goals of regulation and development can not be positioned in the light of simple economic feasibility and efficiency, attention was drawn to the results of the general industry context, which are the expressions of the institutional policy of regulation, of the institutional economic order that was formed under the influence of the institutions. The economic-mathematical model for determining the influence of state support on the level of protection of economic interests of agrarian production is constructed. In this model, the gross value added of agrarian production per employee is taken as an effective indicator and the efficiency of this model is given.

No 6/2017 30 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Oleksandr Naumov Svitlana Stoyanova-Koval

METHODOLOGICAL CONTOURS OF STATE REGULATION OF DEVELOPMENT AND SECURITY OF SOCIO-ECONOMIC SYSTEMS

The process of socio-economic development is a cyclical process, consisting of successive stages, the implementation of which is ensured by the principles of motivation, planning, creation and control. The construction of a model of development is an attempt to achieve the compliance of the internal and external capabilities of the system. The process of shaping the strategy of development should be based primarily on the peculiarities of the economic development of countries, sectors, organizations. For the socio-economic system of Ukraine, it is expedient to build a mechanism of strategic management based on the principles of a problem-oriented approach, the essence of which is to ensure the continuous long-term readiness and ability of enterprises, organizations and the society to perceive, transform, adapt, and create mechanisms for implementing quality jumps. When developing a strategy, it is necessary to set up a bank of target programs that determine the policy of the system as a whole. A polyprogram effect is the result of the system implementation of programs and is formed at the expense of: inter-program co-operation of resources and personnel, the development of technology and products, expenses from joint implementation of program measures; standardization and typing of performance of similar functions; coordination that ensures the prevention of losses from the uncoordinated implementation of interrelated work on targeted programs, mutual information and compensation of the lack of one kind of resources at the expense of another. The creation of a full-fledged concept of development should be based on complete and accurate information about the object and the parameters of its operation. The process of progressive development in stages can be implemented in the form of appropriate measures of increasing the level of socio-economic security, expanding social production, increaseing economic efficiency, and be associated with minimizing the time value of the resources used. The ultimate task of managing socio-economic development is to make an impact on the development of events, so that practically the process of development should be most fully in line with the desired one. That is, it is necessary to minimize the influence of factors of uncertainty and risk. The most important elements of the models of development and their management are precise goals and evaluation indicators. A generalized indicator that organically holds and synthesizes well- known indicators is competitiveness. In the approaches to the assessment of competitiveness, as an indicator of the level of development of the socio-economic system, it is necessary to examine the three main components of the general problem of competitiveness: to form a system of assessments of the competitiveness of socio-economic systems of different levels; to define a system of indicators of assessment of competitiveness of socio-economic systems of different levels; to define methodological approaches to the calculation of the assessments of the competitiveness of the socio- economic system. The indicators of assessment of competitiveness have to characterize the competitiveness of the socio-economic system as a whole, its industries, regional formations, and take into account the resource, infrastructure, fiscal, political and economic components of competitiveness. An assessment of the level of development of socio-economic systems can be made on the basis of the competitiveness indicator by the time alignment method. It is necessary to estimate quantitatively the level of resource spending, which is most important today, due to the high resource intensity of the Ukrainian economy. The processes in the economic and social spheres of the society allow us to formulate a list of issues whose solution is of paramount importance for more effective and dynamic reform of the planning and accounting systems of Ukraine: the development and implementation of a rigid and effective state economic policy in the field of resources; clear definition and full support of the industrial policy for the development of selected priority sectors; the improvement of the legal, normative and methodological basis of production at the state level; the activation and openness of information support in the use of resources of branches and spheres of the national economy; strengthening the motivation of business entities of all forms of ownership in the real process of saving and increasing the social responsibility of business; the introduction of the relevant regulatory documents, which allow to determine the order and control of the efficiency of the use of state resources in entrepreneurial activity; the improvement of statistical accounting in order to more No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 31 accurately take into account the use of resources. The introduction of such measures is necessary, based on the state of the socio-economic system of Ukraine and the level of competitiveness of the national economy. With optimal information provision of the indicator of expenditures by enterprises, regions, industries and in general, on a state scale, it can be used as the main one in assessing the development of production subsystems of the socio-economic system. The improvement of the level of socioeconomic security, the successful functioning and improvement of the economic complex of Ukraine are connected with the rational use of natural, material and labor resources, ensuring corresponding proportions within the branches, regions, and the entire national economy. New views must be formed on the deployment of productive forces based on the use of their own resources, the mobilization of internal reserves, and the strengthening of integration processes. It should be emphasized that the choice of ways and means of development in Ukraine should proceed from its national interests.

No 6/2017 32 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Larysa Naumova Vira Fomishina

STRATEGIC IMPERATIVES OF DEVELOPMENT OF INTERNATIONAL ECONOMIC RELATIONS OF KHERSON REGION ECONOMY

The intensification of the international economic relations of the economy of the Kherson region is an important strategic task for the developing the economy of the region and the country as a whole. The regional authorities should take part in solving this problem in order to ensure favorable conditions for exporters and protect the domestic market from undesirable competition. The actions of the regional authorities should be based on a carefully designed and well-grounded strategy of the development of the international economic relations. The factors relating to the specifics of the region should include: the underdevelopment of market infrastructure, and, consequently, the lack of reliable commercial, legal and market information; the lack of well-defined priority sectors, non-systemic and lack of coordination of foreign economic activity; the lack of effective cooperation of business entities with the authorities. For this reason, the regional and local authorities do not receive prompt information on the results of activities of enterprises, projects carried out, and therefore, they are not able to control and promote the development of the international economic relations; low legal and entrepreneurial culture, violation of contract terms; a high level of expenses for the production and the sales of products, energy intensity of production processes, which leads to a decrease in competitiveness; a decline in innovation activity, leading to reducing the production of high-tech competitive products. The main objective of the regional authorities should be the creation of favorable legal, economic, organizational and social conditions for guaranteeing the sustainable development of the international economic relations and the foreign economic activity of enterprises and organizations of the economic and social sphere of the region. To solve the tasks of developing the international economic relations, it is necessary to form a system of development of the goals from the point of view of the interests of the region. The goals of strategic development are as follows. The ultimate goal is to ensure social and economic development and improve the quality of life of the population of the region. At the same time, the benchmark should be neither consumption nor solvent demand, but real needs. Short-term development goals can be formulated as follows: the stabilization of the economy of the region and the growth of production; the achievement of full use of existing production capacities and labor resources; gradual technical re-equipment and reconstruction of production; activization of enterprises in relation to production of products for export and products that can replace import. The priorities of economic development of the Kherson region, which determine the directions of intensification of the international economic relations are: the production of competitive products of mechanical engineering, in particular machinery, equipment and components; the development of agrarian production, in particular cereals, melons and other crops. An urgent problem that needs to be solved is the regeneration of cattle breeding; the development of the food industry and the processing of agrarian products. The requirements for the development of the international economic relations require expansion of the range of manufactured products, the increase of its competitiveness on the foreign market; the development of market infrastructure, in particular transport services, information networks, consulting activities; the development of tourist and recreational sphere, recreational territories, development of service. The support of the international economic relations should become an integral part of the regional economic mechanism. The stimulation of the international economic relations should be carried out in the following directions: the support of the personnel component of the foreign economic activity; provision of access to information networks of general use or the formation of regional and interregional business information systems; the creation of favorable conditions for the development of the infrastructure of foreign economic activity of enterprises and organizations; the promotion of attraction of foreign investments in the region's economy, the creation of free economic zones, technology parks and other transfer companies; the creation of the system of analysis and forecasting of the international economic activity of the regional enterprises in order to promote; the spread of positive foreign experience, the participation in joint interstate projects on mutually beneficial terms.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 33

The Kherson region has favorable conditions for the development of the international relations, therefore, the regional foreign economic policy should be implemented through: the expansion of information and advertising work on the dissemination of information about the foreign trade potential of the region; the establishment of interaction with international business organizations; the development of a regional program of consulting assistance to local enterprises on the formation of joint ventures and the sales of products in the foreign market, preparation of business plans according to the international standards. The stimulating influence of the authorities on the development of the international economic relations of the economy of the Kherson region should be carried out within the framework of the regional program in stages. At the first stage, the strategic goal should be to ensure the trust of foreign partners and investors in the enterprises of the region and public administration. It is necessary to intensify advocacy, advertise the subjects of the economic complex of the region in foreign markets, as potential counterparties in foreign economic operations, to accelerate the pace of establishing external relations. At the second stage it is necessary to ensure the competitiveness of the regional enterprises in the domestic and foreign markets. At the third stage it is necessary to ensure the systematic implementation of foreign economic operations, to coordinate the geographical areas and nomenclature of goods with the interests of the region and the state.

No 6/2017 34 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Anna Pavlova

THE ECONOMIC PRECONDITIONS FOR USING FINANCIAL LEASING IN SHADOW SCHEMES

Increasing the mobility of capital promotes the active development of the domestic business of new instruments for optimizing tax liabilities. Integrating into global financial markets, national companies are mastering the techniques of international structuring business processes and so-called aggressive tax planning, which is often associated with the withdrawal of profit centers from the country. Characteristically, in this case, replacing the shadow tax evasion schemes used by enterprises at the stage of the formation of market relations, come entirely legal schemes for tax minimization by eliminating profits in jurisdictions with lower tax burden. At present, the withdrawal of a profit center from Ukraine to low-tax regimes is a cost-effective form of doing business mainly for large enterprises, and for medium-sized ones, such schemes are not always economically justified. As a result, the conditions for doing business of these companies are differentiated. Enterprises that use aggressive tax planning techniques actually have a lower tax burden. Techniques for lowering volumes of production, implementing fictitious services, and using the services of conversion centers become more and more expensive and risky. Unlike such schemes, the withdrawal of capital in low tax jurisdictions is becoming increasingly accessible through the development of the digital economy, information technology, and expanding the range of domestic experts on international tax planning. Issues of the effectiveness and security of the implementation of leasing projects are devoted to works Balabanova I. T., Vnukova N. M., Kachalova R. M., Kleiner G. B., Lapusta M. L., Popovich V. M., Tambovtseva V. L., Sharsunova L. G. Since the shadow economy functions in the form of an economic chain that is closely intertwined with the legal economy, there is an urgent need for its study. The urgency of the study of risks of shadowing of leasing operations becomes of particular importance, as their scale increases, and the causes of these risks remain. The purpose of the paper is to investigate the economic and organizational preconditions for the use of financial leasing in shadow schemes and to develop proposals for the shadowing of financial leasing. Under the risks of using financial leasing in shadow schemes, there are implications for the use of the leasing service scheme for committing unlawful actions or those that, within the regulatory framework, distort the essence of the lease and cause the lack of leasing agreement by the parties to all its benefits. The mentioned problem is new for Ukraine, since leasing, despite considerable potential, is also a new financial instrument. The reason for the use of leasing operations in shadow schemes can be called three groups of factors, namely: economic, organizational and inherent in the nature of leasing. The main motives that are driven by enterprises, using leasing operations in shadow schemes, is the optimization of taxes, respectively, of economic activity, as well as minimization of risks. In addition, international leasing operations, in which one party is registered in offshore jurisdictions, enables the company: • to create and increase working capital (including by reducing non-production costs); • independently optimally finance their own investment projects; • freely transfer capital to other jurisdictions; • to hide the identity of the beneficiary of financial and business transactions; • to protect own capital from adverse political or economic conditions by a system of law of offshore jurisdiction. Economic factors are decisive in the process of using leased transactions in shadow schemes and are explained by the economic interests of capital owners. They are associated with unfavorable conditions for the accumulation and distribution of profits in Ukraine. This is facilitated by differences in the taxation of profits and the formation of investment resources between our state and low tax jurisdictions. The absence of competitive conditions in the economy is confirmed by the data of the international center of economic research «Doing Business». Although Ukraine's ratings for the last year have risen to three positions (as of March 2017), they remain rather low (80th out of 190 states). The rating increase was due to improved protection of minority investors and the enforcement of contracts, but other positions such as affordability of lending, business start-ups, protection of small investors, positions decreased. Another important factor is the possibility of free investment at the expense of funds accumulated in offshore jurisdictions. Acquisition of any asset for an enterprise is possible only from profits after payment of all due taxes. At the same time, the optimization of economic processes with the help of offshore jurisdictions enables to expand the investment opportunities for the enterprise No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 35 both in the development of their own activities and in other sectors without tax costs. Such savings will be 16 % or more depending on the nature of the activity. If the capital has signs of illegal origin, the use of several ordinary and offshore jurisdictions will promote the legalization of capital and the possibility of using it in the interests of the owner. The predominance of offshore investment in the Ukrainian economy is evident. Understanding the fact that the small island countries of Cyprus, the Virgin Islands (British), Belize do not have the production and investment potential and can not invest such significant funds in the Ukrainian economy, suggests that the bulk of these investments is the return of funds withdrawn from the state , which were not taxed. According to the data of the NGO Tax Justice Network over the years of independence from Ukraine, about $ 167 billion has been withdrawn from offshore areas. In such realities, the problem of removing funds from taxation in order to increase the possibilities of investing in domestic business is associated with insufficient flexibility of the current legislation in the field of investment. Thus, the system of prevention and counteraction to the hidden outflow of capital from Ukraine should be a rational combination of measures to restrict the withdrawal of funds obtained by criminal means and stimulate the accumulation of capital in the national economy as a result of entrepreneurial activity. These measures should not complicate business conduct for conscientious taxpayers, have a negative impact on the state of the regulatory environment and restrain business development. In particular, the priorities of preventing and counteracting the hidden outflow of capital from Ukraine should be: reduction of incentives for withdrawal of funds in order to expand investment by setting a zero rate of taxation on profits invested in the purchase or manufacture of own machinery and equipment, biological assets and software tools; improving the regulation of controlled foreign corporations (CICs) by amending the Tax Code of Ukraine: improving the concept of a controlled foreign corporation (CIC) in the domestic tax law, indirect and constructive ownership of corporate rights, in agreement with the recommendations of the OECD in step 3 BEPS; improvement of the rules for the identification of controlled foreign corporations (CICs) based on the size of the share of a resident of Ukraine in its property (assets), in which he directly, indirectly or constructively owns; the introduction of profits from the activities of CIC in the income of legal entities and individuals who own its corporate rights. In this case, the calculation of corporation profits should be made in accordance with domestic tax legislation and included in the amount of income in the amount proportional to the share of ownership by the resident of Ukraine corporate rights of KIC; ensuring the reporting of CIC owners to domestic tax authorities regarding its assets and activities, in accordance with national legislation; comprehensive implementation of OECD recommendations in the BEPS steps, in particular: joining Ukraine to the General Reporting Standards in order to engage in a global tax information exchange system. This would allow the tax authorities to learn about all financial assets (money, securities, etc.) owned by Ukrainian residents worldwide, irrespective of how many offshore companies, trusts, funds and other similar instruments they are hide; counteracting the use of hybrid financial instruments in optimizing the tax base through the detailed elaboration of special legislation regulating the operation of hybrid financial instruments; counteracting tax optimization through the achievement of fictitious bankruptcy by means of enhanced analysis by the State fiscal service of the activities of enterprises – bankrupt.

No 6/2017 36 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Olha Sopotsko

METHODICAL APPROACHES TO THE SUPPLY CHAIN MANAGEMENT OF PERISHABLE PRODUCTS ACCORDING TO IMPLEMENTATION OF THE CONCEPTION OF SUPPLY CHAIN MANAGEMENT

Nowadays, supply chain management of perishable products has a great importance in logistics. Also, it has influence in economy sector, especially for such indexes like profit and losses of enterprise. According to Global Initiative on Food Loss and Waste Reduction of Food and Agriculture Organization of the United Nations, roughly one third of the food produced in the world for human consumption every year – approximately 1.3 billion tonnes – gets lost or wasted. At retail level, large quantities of food are wasted due to quality standards that over-emphasize appearance. In developing countries food waste and losses occur mainly at early stages of the food value chain and can be traced back to financial, managerial and technical constraints in harvesting techniques as well as storage and cooling facilities. Strengthening the supply chain through the direct support of farmers and investments in infrastructure, transportation, as well as in an expansion of the food and packaging industry could help to reduce the amount of food loss and waste. In medium- and high-income countries food is wasted and lost mainly at later stages in the supply chain. Differing from the situation in developing countries, the behaviour of consumers plays a huge part in industrialized countries. The study identified a lack of coordination between actors in the supply chain as a contributing factor. Farmer-buyer agreements can be helpful to increase the level of coordination. Additionally, raising awareness among industries, retailers and consumers as well as finding beneficial use for food that is presently thrown away are useful measures to decrease the amount of losses and waste. The supply chain of perishable products contains several members whose interests may contradict with each other. One of ways to solving this situation is the formation of a rational quantity of the order for the supply of perishable products. Well-known methods and models to identifying rational quantity of the order are based on the economic order quantity model of R. Wilson and its modifications (extensions). But supply chain management of perishable products requires a different approach. In this case probabilistic-statistical methods and models can be used. Also, the impact of demand for these products in the interval between the regular deliveries also should be taken into consideration. Expiration date of perishable products affects the frequency of such supplies. The article describes probabilistic-statistical model of the operation of trading enterprise (retail), which sells bread. This model examines profit of enterprise, which are expected to get from selling bread and which have to be maximize. The quantity of the order that enterprise submit must be in accordance with the eligibility period. Other parameters of this model, such as the amount of lost profit from the product deficit and losses from unrealized surplus per unit are considered like immutable, established by the corresponding agreements. The mathematical model figure on the competitive nature of the relationship between the enterprise supplier (producer) of bread and the enterprise (retail) that sells this bread. According to the model, the maximum profits of the producer and the enterprise (retail) will provide an excellent order value. A source of power can be as a producer of product, and one who sells this product. Degree of power of some trade enterprises, for example, network supermarkets, can be significantly higher than other small shops of step-by-step availability. Under such circumstances, the parameters of such model are discussed by the supply chain participants, according to interests of the sources of power that will lead to maximize their own profit. At the same time, proceeding from the situation of the balance of power or the temporary nature of the situation of the imbalance of such power assumption can be made that the «production-trade» of supply chain, which leads products to the market can be considered as a system. Such system and model can be build according system-wide representations about the parameters, which, respectively, are based on the system profits and costs. In future, profit in the system can be redistributed among the participants of the relevant part of the supply chain according to requirements of market yields of the sectoral markets in which the producer and trader are represented.

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These parameters are determined by participants in the supply chain by making decisions relative to the product or implementation choosing: the configuration of the product; production technology, logistics support (packaging, storage, transportation); terms of contracts for purchasing raw materials, sales, logistics services, returns (sale with discount) and recycling (utilization), etc. Optimal quantity of the order of bread, according to the profit criterion, for the producer enterprise are not equal to the optimal quantity of the order of trading enterprise. The article proposes methodological approaches to forming rational quantity of delivering order to perishable goods in conditions of the balance of power between the supply chain participants and the introduction functions and principles of the concept of supply chain management. System approach presumes the sequential junction from general to partial, when the global goal, the achievement of which is directed system activity, is the basis. The introduction of the classical inductive approach to the development of the system «production-trade» implies that the separate consideration of subsystems «production» and «trade» are coordinated by such parameters as: purchase price of the trade enterprise from the manufacturer, the price of return of unrealized refuse to the manufacturer, and taking into account factors, which are considered separately, making agreement about optimal amount of rational quantity of the delivering order. Further research should looking for a mechanism for rational distribution of system profits between the participants of the supply chain.

No 6/2017 38 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine

Yurii Tretynychenko Ilona Khalatska

METHODOLOGICAL BASIS ASSESSMENT OF BALANCING WORK ROAD TRANSPORT ENTERPRISES

The conditions of the strategically oriented management of enterprises that carry out the delivery of goods by road transport using terminal technology – as a set of homogeneous organizational structural units – should proceed from the need to balance the development of the latter. This balance, according to researches of the authors of the article, is proposed to be evaluated in the following aspects: territorial, which corresponds to the level of management of territorial organizational units (or territorial centers of responsibility); process, allocated in the territorial part of the processes, which corresponds to the level of management of territorial-process structural units (or territorial-process centers of responsibility); the activity, allocated in the process of activities that in this study, is consistent with the areas of the concept of the balanced scorecard (customer orientation, internal business processes, finance, training and staff development), which (activity aspect ), in turn, corresponds to the level of management of territorial-process-activity structural units (or territorial- process-activity centers of responsibility). On the basis of an analysis of the conditions of operation and development of national and international companies that carry out the delivery of goods by road transport using terminal technology, it is proposed to distinguish the following processes: acceptance and processing of orders for departure; delivery of items to the terminal – as a departure terminal; processing of shipments at the terminal – as terminal shipments; inter-terminal delivery of shipments; processing of shipments at the terminal – as a destination terminal; delivery of shipments from the terminal – as a destination terminal; issuance of orders for departure. In accordance with the above system, aspects balancing the work of homogeneous structural units, which comprise enterprises that carry goods delivery by road transport using terminal technology, developed a structural model for the formation of an integral indicator for conducting an appropriate multicriteria assessment. The selected set of partial indicators should characterize the various aspects of the complex process, which, in turn, requires the use of both statistical - absolute and / or relative partial indicators, and estimated ones - those that can be obtained, as a rule, expertly, by partial indicators . That is, in the context under consideration, partial indicators can be divided into objective and subjective ones. The problem of observing the rational balance (balance) between objective statistical and subjective evaluative partial indicators in developing methodological approaches to the evaluation of a complex process is important, first of all, as one that is directly reflected in the results of the group and integral evaluation. The assumption is that when determining the indicator for the evaluation of the work of territorial (regional) organizational structural units of enterprises involved in the delivery of small consignments of goods, consideration should be given to a number of partial indicators, presented separately or in groups, which makes it possible to consider this indicator as multi-criteria. In theory and practice, the justification and adoption of managerial decisions are known to have spread a number of approaches to solving multicriteria problems. For a long time, the most widespread approach is the weighted criteria, which is implemented through the definition of an integral criterion based on the weighting of each of the local criteria. In the simplest, at least in cases of providing a «technical» solution for multicriteria tasks, partial and group (complex) indicators are considered equivalent and, accordingly, the respective weights, indicating their priority, are accepted the same. In determining the weighting factors for the given integral indicator or its constituents, the corresponding complex indicators – it is proposed to use the method of analysis of hierarchies.

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STATE ADMINISTRATION

Valerii Vorotin

MODERNIZATION OF EDUCATION AND SCIENCE AS AN OBJECT OF STATE ADMINISTRATION: A COMPETITIVE ADVANTAGE FOR UKRAINE

The article is devoted to the research of the current state of the sphere of education and science and directions of its modification. The main directions of formation of a new paradigm of knowledge society and economy of knowledge and the process of modernization of the sphere of education and science as an object of public administration in Ukraine are analyzed. The question of defining the essence and basic features of the current state of the economy with different levels of development of market relations is rather controversial, but despite the lack of unity in the consideration of problems in world science, one can state that an effective market economy of the beginning of the third millennium is based on knowledge, education, information, innovations, which materialize in the form of new highly effective high-tech technologies and products. The knowledge economy does not only operate with knowledge and does not replace it with real production; it is a qualitatively new system of their use and introduction into economic activity. The author suggests that the analysis of the essence of the paradigms of «knowledge society», «knowledge economy» requires their consideration in conjunction with modern economic concepts that have contributed to the formation of a new theory of economics based on knowledge and reveal its various aspects. Therefore, in terms of a systemic approach, the knowledge economy is formed on the basis of the synthesis of key modern theories of informational and technocratic and humanistic orientation. That is, in a broad sense, the knowledge economy acts as an innovative economy, because only knowledge can be the basis for the formation of needs and the implementation of innovations; as a post-industrial economy, one of the main features of which is the increase in the share of services in material production; as an informational and global network economy, where knowledge embodied in information is a major factor in production. In the article the author analyzes the main directions of formation of a new paradigm of knowledge society and knowledge economy. Investigates and reveals trends and the process of modernization of the sphere of education and science as an object of public administration in Ukraine. Knowledge economy for Ukraine is a chance and one of the main instruments of innovative progress and the main way to combine existing cultural traditions and existing humanitarian potential with world economic requirements. The very knowledge economy, as a new paradigm, consists of: accessible, high-quality and continuous education of the population based on new scientific knowledge; economic incentives and institutional aspects that encourage the effective use of national and global knowledge in all sectors of the economy; an effective innovation system, uniting in a single complex of economics, scientific, academic and research centers; infrastructure that connects the elements of the innovation system with each other and with the external environment; the state as the initiator and coordinator of the processes of economic development based on new knowledge. The author argues that one of the most significant competitive advantages of Ukraine on the path to the development of the knowledge economy is the high level of education of its citizens Thus, 45% of the Ukrainian labor force has a higher education, and Ukraine is ranked fifth among the European countries by this indicator. Ukraine possesses highly developed scientific potential, which is capable of effectively solving the actual problems of social development and solving modern innovative problems. Ukraine's intellectual potential, despite the negative effects of socio-economic transformations that took place by the mid-1990s, remains strong enough. According to the author, in order to change the situation and not to depart from the general European vector of accelerating movement, it is expedient, first of all, to direct their efforts to consolidate people and create an environment for the development of the economy and the knowledge society. It is concluded that the economy and society of knowledge can be represented as a new paradigm of economic theory and theory of public administration at the present stage of development of society. Unfortunately, the basic economic scientific potential of scientific public, private and public organizations, in conditions of relatively stable development and attention of the authorities, remains inadequate. This is due to many of the obstructive factors, which, first of all, can be attributed to: unsatisfactory level of financing; low level of material and technical base of scientific research;

No 6/2017 40 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine unsatisfactory and imperfect demand for the results of scientific research, including dissertation development; excessive loading of scientific and pedagogical staff of universities by teaching, what is caused by insufficient level and efficiency of science of higher educational institutions; extremely imperfect regulatory and organizational framework for the functioning of scientific institutions and subdivisions; almost complete absence of objective criteria for evaluating the results of the activities of scientists. As a result, the low level of prestige of scientific work, the outflow of talented scientists, especially young people, abroad and the critical attitude of the scientific community to the strategic prospects for improving the efficiency of scientific activity.

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Inna Gryshova Denis Fedorkin

CONCEPTUAL APPROACH TO PUBLIC ADMINISTRATION OF ECOLOGICAL SAFETY OF AGRARIAN PRODUCTION

The formation of a targeted agricultural policy aimed at satisfying domestic needs in quality, environmentally safe food, taking into account the imperatives of sustainable development and environmental protection, should become one of the strategic directions of development of domestic agricultural production. Stimulating this direction of production can be through targeted subsidies, fiscal policy, social advertising and other instruments of socio-economic direction. In addition, to ensure the spread of organic agricultural production, a consistent development of the policy of its protectionism is required. Ensuring the expected result is seen as possible in the implementation of an effective mechanism of state management of environmental safety of agrarian production, which will combine different tools and methods. It is determined that in the ecological sense the situation in Ukraine is not stable and reliable. In official forums and scientific publications, it has been repeatedly noted that about 15% of Ukraine's territory is in a critical ecological state. Among the European countries, it has the highest index of anthropo-technological load on the ecological system, which continues to grow and several times higher than the corresponding indicators of the developed countries of the world. Significantly reached the pollution of water and land resources, atmospheric air. Soil and water degradation processes are activated, which negatively affects the socio-economic parameters of agricultural production and the level of well-being of the population. These and other indicators have provided the basis for international experts to conclude that Ukraine is characterized by a negative environmental image and recognized as a zone of environmental disaster. The basic principle of agrarian production is to ensure the demand of the food market for quality raw materials. However, in the course of the movement in this direction there are side effects – depletion, degradation, pollution of natural resources and possibly low-quality agricultural products, which together reduce the quality of life of the population in the territory of the subject of agrarian production and consumers of food products. That is why the concept of ecological safety of agrarian production arises, which means movement along the vector of food security with such environmental restrictions that ensure the development of the industry and the territory concerned in accordance with the principles of sustainable development. Note that the term "environmental safety" is used by many authors, but without specifying its essence and anchoring to agrarian production. Proceeding from the foregoing, it is grounded that the principle of complexity (based on the obtaining and practical use of new knowledge in the field of management of relations between the development of society, socio-economic interests of agrarian production and the natural environment should be based on the approach to the definition of the essence of ecological safety of agrarian production ) and systemic (takes into account the laws of nature and is based on objective economic laws). In the general sense, ecological safety of agrarian production should be considered as a process of conscious penetration of environmental principles and approaches in economic and economic relations and social phenomena. On the one hand, it represents an objectively determined process of transformation of social labour, aimed at preserving and developing the socio-economic functions of nature, on the other - aimed at creating environmentally safe living conditions and life for a person. Consequently, it is a peculiar correction and formation of material and energy and information flows in accordance with environmental constraints and requirements. Environmental safety of agrarian production is also analysed from the standpoint of the need to overcome ecological, socio-ecological contradictions that arise in the complex interaction of man and the environment. One of the ways of solving these contradictions is the strategic modernization of existing technological solutions. There is an urgent need to establish such a way of organizing production, which achieves the maximum yield of environmentally safe agricultural products at a minimum cost of production resources and minimal damage to the environment. That is, in our opinion, ensuring the ecological safety of agrarian production is a process of improving the ecological- socio-economic system of relations and the development of productive forces in the context of environmental protection.

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The urgency of improving the issues of ensuring the environmental safety of agrarian production in Ukraine is determined by a number of exogenous and endogenous factors. The intentions of our state to integrate into the world economic space face the problems of national and international requirements to the quality of products and the safety of agricultural production. These requirements can be adapted in Ukrainian realities by developing a system for ensuring environmental safety of agrarian production, taking into account international and national standards of importing countries of domestic agricultural products. In addition, in the framework of the membership of Ukraine in the World Trade Organization, domestic agricultural producers find it difficult to compete in the domestic market with foreign importers of organic products due to the lack of legitimacy and state support for national ecological agricultural production. Consequently, the results of the study of domestic and foreign literature on the determination of the nature and features of the environmental safety of agrarian production made it possible to systematize common features, in particular: in the overwhelming majority, the essence of ecological safety of agrarian production is defined as a process involving a set of consecutive actions aimed at transforming forms, methods, methods production, which are systematized and harmonized with modern laws of the development of the natural environment; the ecological safety of agrarian production is closely linked to innovation policy and aims at preserving the natural balance and improving the quality of life of society; Environmental safety of agrarian production is intended to ensure the timely prevention of the appearance of negative phenomena, threats caused by human activities and factors of the environment. In the article the features of state management of ecological safety of agrarian production are considered and defined. A conceptual approach to the study of content and features of ecological safety of agrarian production is proposed. The essence, content and factors influencing ecological safety of agrarian production in Ukraine are substantiated. The goals, which determine the necessity of development of a system for ensuring ecological safety of agrarian production in Ukraine and directions for their implementation, are defined.

No 6/2017 The Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine 43

Oleh Protsiv

INFLUENCE OF THE TAX POLICY OF THE AUTHORITIES IN GALICIA IN THE MIDDLE OF THE 19th – BEGINNING OF THE 20th CENTURIES ON HUNTING AND FISHING

In the Ukrainian hunting industry there are a number of problems of functional, institutional, organizational orientation, which negatively affect on the results of its activities, reduce the level of efficiency, lead to loss. In particular, they are the problems related to the trade in hunting products. This is determined by the current legislative provision and the practice of its enforcement. Solving these problems requires a scientific approach to find ways to improve the mechanism of hunting regulation in Ukraine, methodological approaches to their implementation, studying, generalization and use of the best practices. The organization of law enforcement in the hunting economy of Galicia during the studied period is a valuable historical experience for the organization of hunting in the conditions of modern Ukraine. The issues of state management of trade in hunting products during the First World War have been reflected in the periodical press of the Austro-Hungarian Empire, namely: in the magazines «Hunter» (Łowiec), which was published in Lviv as a print body of the Galician Hunting Society since January 10, 1878; the «Polish Hunter» («Łowiec Polski»), which was published in Warsaw as the body of the Tisar Society for the correct hunting of Poland since 1899; «Lviv Newspaper» («Gazeta lvowska»), the collections of laws and orders of Galicia which regularly went out in Lviv and Vienna, verbatim records of Galician Diet. Among the researchers who studied this problem should be F. Ruzhinsky and E. Shehtel. In the field of hunting, the regulation of the circulation of food products was crucial, since in the period of social conflicts it is necessary to take additional measures from the side of the authorities in order to equitably distribute it among consumers. In order to address this issue, Galicia's municipality restricted the consumption of meat. In particular, the Decree of the governor of Galicia from May 15, 1915, L. 8994, issued on the basis of point 1 of The Order of the Minister for the Interior and the Ministry of Trade and Farming (Austria) of May 8, 1915, it limited the days of the week in which hunting products were allowed to sell. In addition, the sale of wildlife was regulated also because of its price. In particular, the Order of October 27, 1916, L. 3448 / XI, governor of Galicia, General Giller, it regulated the organization of the trade in game. For this purpose, in the Kingdom of Galicia and Lodomeria with the Grand Duchy of Cracow, the office for purchase of game was organized in Cracow. Its main task was to organize the centralized purchase and sale of hunting production at fixed prices: boar, deer – 2.50 crowns per 1 kg, roe – 3.80 crowns per 1 kg, hares – 5 crowns / pc. With the beginning of social conflicts and wars are exacerbated by the issue of providing food to the population. In resolving this issue, the regulatory role of public authorities grows. It should be noted that then Galician population consumed a relatively small amount of meat. In total, according to calculations of then researchers, hunting gave 10 % of consumed meat in the early twentieth century. Thus, social conflicts that developed into intergovernmental military actions introduced some adjustments in the activities of state authorities, determined the peculiarities of state regulation of socio-economic, humanitarian and political social relations. The cost of the game varied depending on the quality of the meat and the quality of the treatment and the weight of the carcass, the extraction time. Severe individuals of a certain type of game were sold at a higher price, since their fatness was higher and it had a higher nutritional value. Violators of the requirements of the legislation on the trafficking in the game imposed a fine of 5 thousand crowns or arrest for 6 weeks. Funds from paid fines were sent to the budget of the governorate of Galicia for their use on the poor people. It was established that in the part of state management of trade in hunting products during the First World War, state authorities attached great importance to the regulation of food prices, in particular, for hunting products. It was established that the main mechanism for providing food products to the population was to establish a maximum permissible price level which permitted its implementation. Also, at the legislative level, a mechanism was used to forcible the implementation of a certain amount of game, and in order to fattening domestic animals, it was forbidden to feed fodder to the game. With the inflationary processes that took place in Galicia during the First World War, there was a rise in the cost of hunting products.

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