INSTITUTIONAL FACTORS OF FORMING THE THREATS TO INVESTMENT SECURITY OF UKRAINE

Abstract

Abstract. This article outlines the role of institutional factors in ensuring investment security.
The trends in foreign direct investment in Ukraine are analyzed. There is determined that
the amount of direct foreign investment per capita in comparison with to other countries in Eastern
Europe, is extremely low. There are concluded that underdeveloped institutional environment,
including the institution of private property significantly affects on the low level of Ukrainian
economy’s investment attractiveness. The analysis of indicators of «institutions» and «ownership
» in the global competitiveness index showed that the indicator «ownership» of Ukraine in
recent years is among list of countries where protection of this right is the least effective. There
is shown that Ukraine institution engaged in property registration were established in an illegitimate
way, ownership of communal property is not assigned to the local community. The alienation
of the property carried out without the consent of the direct owner: local authorities, which
de jure is not representative and executive bodies of the local community. There are proposed to
develop and implement organizational, economic, informational and legal mechanisms to the demands
of the Ukrainian Constitution implementation, including the registration of the local
communities statutes, adopted by communities, securing property rights for communities to communal
property re-establishing of local governments and other entities of investment process in
compliance with the applicable law; to ensure appropriate access of the investment process subjects
in the public registers of rights properties, facilitate the information dissemination to potential
investors about the measures taken to strengthen the institution of property, providing a
single, transparent and legitimate mechanism for investor accessing to resources.
Key words: investment security, ownership, threats, municipal property, institutions, not legitimacy.