Given extremely based heavy industry structure the restructuring over the transitional
period in Ukraine should be oriented primarily on the development of consumer goods sector
with the emphasis energy conservation technologies, demonopolization and strengthening
competition.
Basic structural changes in countries with well developed market economy are
determined by the objective economic situation with due influence of state policy on the
process. Under the previous practice of management in the former socialist countries structural
changes were accomplished either through the adoption some major investment projects at the
highest political level or through some ministerial decisions on capacity growth for operating
enterprises as well as new constructions without due attention paid to innovation and deep
restructuring of the existing capacities. In both cases the state declared structural policy was
implemented in the way as it was favorable ministries and departments. Regardless of the
formally expressed priorities for the planned economy its structure was practically developed
through so called “from achieved on” method. There was no explicit mechanism that would
allow to build structural policy for different levels of management with due emphasis to the
economic and social criteria of the development.
The development of centrally planned system of management with its growing scope of
production and complexity of economic relationships brought finally the loss of any rational
economic strategy on the side of institutions for central planning. It was manifested in chaotic
pattern of economic and social development, emergence numerous distortions among and
within the sectors, morally and physically aging of industrial apparatus, chaotic, ineffective and
prolonged its renovation, appearance in some cases excessive jobs on the one hand and
unemployment on the other, legging behind the world scientific and technical level of
production, week development of social infrastructure, imbalances in existing volume of money
in turnover and goods in the market, inflation and standard of living decline.
After proclaiming its independence Ukraine have not gotten read of such state of affairs
in the economy, on the contrary they has been aggravated by the brake of economic
cooperation with other republics of the Soviet Union as well as by the general growth of
national and political problems.
The situation is being deep because of instability in transitional period and loses of
manageability in the economy with lack of market tools for stabilization in the Ukrainian
economy which is still strongly tied to the economy of other republics of the former Soviet
Union.Chaotic structural changes brought some serious loses for the industrial potential of the
country and aggravated its social problems.