Topic 3. Public administration in the different fields of social activity.

1. Government regulation of economy: objectives, functions, procedures and tools.

2. Antimonopoly policy, innovation policy and investment policy of the state.
3. Management of external economic activity.

4. Peculiarities of PA in social sphere. Main directions of Ukrainian social policy.

5. Public administration in the administrative and political sphere.
6. Specifics of PA in the sphere of culture and ideology.

1. Government regulation of economy.

Imagine the populace население decides that it wants to devote more resources to
improving public health; or that more resources should be devoted to educating the young;
or that unemployment in a deep recession should be reduced. A market economy cannot
automatically solve these (lots of) social and economic problems. Each of these objectives
can be met if and only if the government changes its taxes, spending, or regulations.
Usage of combination of market regulation and Government regulation of economy
is a main feature of a mixed economic system..
Government regulation of economy is a system of arrangements for realization of
compensating and regulating Government activity in order to create appropriate
conditions for market functioning and solve social and economic problems of national
economy development.
Methods of GRE are a set of ways, techniques and tools of Government influence on
the socio-economic development.
Methods of GRE may be classified by forms of influence (direct and indirect
methods) and by means of influence (legal, administrative, economic, imperative/
mandatory, informal, special).
Direct Methods influence on the functioning of the market entities using
administrative tools and economic instruments of direct impact (state orders, public
contracts, grants, subsidy, subvention, Licensing, quotas, fixed prices for goods and tariffs
for services, state standards and specifications).
Indirect methods of GRE are a set of indirect means of state influence on the
activities of economic entities (system of legal and economic methods) through the
creation of a particular economic environment that forces them to act in the right
direction.
The main indirect ways of Government regulation of economy include the tools of
Monetary policy, Fiscal policy, external trade policy innovation policy and so on.

Fiscal policy.
Fiscal policy consists of deliberate (обдуманный) changes in government spending
and tax collections designed to achieve full employment, control inflation, and encourage
economic growth. The adjective “fiscal” simply means “financial.”
Two main tools of Fiscal policy are the following.
1) Government Expenditures. These are Expenditures on certain goods or services
(such as roads, education, or police protection), along with transfer payments (like social
security and pensions) that provide resources to individuals.
2) Taxes on incomes and goods and services. These reduce private income, thereby
reducing private expenditures (on automobiles or restaurant food) and providing resources
for public expenditures (on missiles and school lunches). The tax system also serves to
discourage certain activities by taxing them more heavily (such as smoking cigarettes)
while encouraging other activities by taxing them lightly or even subsidizing them (such as
health care). Taxes form revenues of a budget.
There are two (kind, sort,) types of Fiscal policy according to its purposes.
1) When recession occurs, an expansionary fiscal policy may be in order.
Expansionary fiscal policy consists of an increase in government spending, a decrease in
taxes, or some combination of the two, designed to increase aggregate demand and
therefore raise real GDP, in conditions of recession. Expansionary fiscal policy may
create a government budget deficit (government spending in excess of tax revenues).
2) When demand-pull inflation occurs, a restrictive or contractionary fiscal policy
may help control it. If the government decides on fiscal policy to control inflation, its
options are the opposite of those used to combat (бороться) recession. Restrictive fiscal
policy consists of government spending reductions, tax increases, or both, designed to
decrease aggregate demand and therefore lower or eliminate inflation in conditions of
cyclical upswing (boost). Restrictive Fiscal policy should move toward a government
budget surplus (tax revenues in excess of government spending).
The main agent of fiscal policy is Ministry which often prepares a Budget law

Monetary policy.
Monetary policy consists of deliberate changes in the money supply to influence
interest rates and thus the total level of spending in the economy. The goal of monetary
policy is to achieve and maintain price-level stability, full employment, and economic
growth.
The main agent of Monetary policy is a central bank (National Bank of Ukraine).
National Bank has three main tools of monetary control that it can use to alter
(изменять) the money supply: open-market operations, the reserve ratio (the ratio of
commercial bank’s required reserves, that determines the ability of commercial banks to
lend loans), and the discount rate (the interest rate the National Bank charge on the loans
it makes to commercial banks).

2. Antimonopoly policy, innovation policy and investment policy of the state.

Investment policy
Investment process is a multilateral activity of participants of reproduction process
aimed at increasing the capital of the nation.
Investments are long-term capital spending into various industries of national
economy. Investment consists of expenditures on new plants, capital equipment,
machinery, inventories, and so on. There are public and private investments, real and
financial investments, domestic and foreign investments.
Financial investments are investments in securities and allocation of capital in
banks.
Real investments are capital spending directly into the means of production.
Державне регулювання інвестиційних процесів повинно залишитися
найважливішим засобом структурного перетворення економіки України.
Investment policy is a set of economic decisions and activities focused on the
targeted use of capital investments.
 Main purpose of government investment policy is to ensure the effective functioning
of national economy. The purpose of private investments is to get additional income on
invested funds.
Legal framework for Government investment policy is Law of Ukraine “On
investment activity” 18.09.1991 № 1560-XII.
Today Main tasks of investment policy should be the following:
1. extending the scope and efficiency of investments;
2. transforming state investments into effective tool of structural transformation of
economy.
3. creating attractive investment climate за рахунок створення вільних економічних
зон, а також упровадження пільгового режиму інвестиційної діяльності на
територіях пріоритетного розвитку.
4. creating a multichannel system of financing створення багатоканальній системі
фінансування, яка включає крім централізованих джерел і власних засобів
підприємств і організацій, венчурні фонди, комерційні банки
5. decentralization of capital investment.
Tools of investment policy:
1. financial assistance within the state budget (subsidies, capital transfer payments)
для стимулювання інвестиційної діяльності (цільові субсидії для здійснення
інвестицій (капітальні трансферти), фінансова допомога в здійсненні конкретних
інвестиційних проектів і т.п.);
2. direct investments within the state budget in certain industries and infrastructure
прямі інвестиції з держбюджету як в окремі галузі промисловості, так і в розвиток
економічної і соціальної інфраструктури;
3. tax stimulation of investment activity (tax preferences and tax holidays for certain
industries, regions, enterprises);
4. reinforcement of inducing стимулир function of amortization;
5. promotion of foreign investments;
6. incentive стимулир government credit policy.
 Без надійних капіталовкладень, неможливо забезпечувати створення і
впровадження новітніх технологій.
Innovative policy
Government innovative policy is a component of Government regulation of
economy, which is aimed at establishment of an innovative model of development of
national economy, ensuring its competitiveness and advanced structural and
technological changes.
Legal framework for Government innovative policy includes the laws of Ukraine:
 “On innovation activity” (04.07.2002 № 40-IV);
 “On scientific and scientific-technical activity” 26.11.2015 № 848-VIII;
 “On scientific and technical information” 25.06.1993 № 3322-XII.
Public administration in the area of innovative activity is carried out by public
authorities through performing the following functions:
 determining priorities for innovative activity;
 forming and implementation of national, sector, regional and local innovative
programs;
 protection of rights and interests of entities of innovative activity; protection of
intellectual property;
 development of legal framework to support and promote innovative activity;
 development of national innovation system;
 Development of modern innovation infrastructure.
The main agents of Government innovative policy are:
 Verchovna Rada of Ukraine
 President of Ukraine
 Cabinet of ministers of Ukraine (mainly Ministry of education and science of
Ukr)
 State agency for Science, innovations and Information
 National Academy of Sciences of Ukraine
 State Fund for fundamental research and a lot of other institutions.
 There are a lot of methods of Government innovative policy:
 state targeted scientific and technical programs;
 budget financing of scientific and technical activity by funding public research
institutions, scientific research of higher education institutions, funding grants;
 using financial and tax instruments to create economically favorable conditions for
effective implementation of scientific and technological activities;
 accelerated amortization policy;
 soft lending programs;
 Government insurance of risks
 public-private partnership in innovations
 creation of system of scientific and technical information;
 accomplishment of joint research.
Antimonopoly Policy
The main agents of antimonopoly Policy are Cabinet of Ministers, Antimonopoly
committee of Ukraine.
Government may want to file charges выдвинуть обвинения against a monopoly
under the antitrust laws if the monopoly was achieved through anticompetitive actions,
creates substantial economic inefficiency, and appears to be long-lasting. The courts can
issue injunctions предписание to prohibit anticompetitive practices (a behavioral remedy
мера) or, if necessary, break up monopolists into competing firms (a structural remedy).

3. Management of external economic activity.

Despite people and nations benefit from specialization and international exchange,
sometimes governments try to restrict the free flow of imports or encourage exports, to set
some kinds of trade barriers. Of course every country in its foreign economic policy
follows either policy of free trade or protectionism.
 External economic activity is an activity in international trade in goods and
services, movement of capital, labor migration, technology transfer that is based on
mutually rewarding economic relations.
Public authorities governing foreign economic activities in Ukraine include:
Parliament of Ukraine (Verkhovna Rada), Cabinet of Ministers of Ukraine, National Bank,
State Customs Committee, Antimonopoly Committee.
Goals of government regulation of external economic activity in Ukraine are:
 providing sustainability of national economy and domestic market,
 inspiration of progressive structural changes in the economy,
 creating the most favorable conditions for attracting national economy into the
global division of labor;
 approaching to the market structures of developed foreign countries.
Government regulation of external economic activity is carried out by
administrative and economic methods. Administrative methods directly affect economic
relations, and economic methods operate through the market mechanism.
Administrative methods are used in conditions of economic instability, rising deficits
and inflation. Administrative methods include embargo (absolute prohibition of foreign
trade activities), licensing, quotas and so on.
Economic methods of regulation occupy a leading place in the period of economic
stabilization. Economic methods take several forms.
1) Tariffs are taxes imposed by a nation on imported goods.
2) Import quotas are limits imposed by nations on the quantities (or total values) of
goods that may be imported during some period of time.
3) Nontariff barriers (NTBs) are all obstacles, other than protective tariffs, that
nations establish to hamper (limit препятствовать) imports, including licensing
requirements, unreasonable product quality standards, and unnecessary bureaucratic
detail in customs procedures.
4) Voluntary export restriction (VER) is an agreement by countries or foreign firms
to limit their exports to a certain foreign nation to avoid enactment (принятие закона) of
formal trade barriers by that nation.
 5) Export subsidies are Government payments to domestic producers to enable them
to reduce the price of a product to foreign buyers.

4. Peculiarities of PA in social sphere. Main directions of Ukrainian social policy.

Markets do not necessarily produce a fair справедливый distribution of income. A

market economy may produce inequalities in income and consumption that are not
acceptable to the society. That’s why In addition to regulating the prices and standards of
business, the nation attempted to protect health and safety through increasingly stringent
строгий social regulation. These activities are the role of the “welfare state”— in which
governments provide a minimum living standard to all members of society. Welfare state
in the UK include providing citizens with adequate health services, housing, education and
money if they are unable to work.
Social policy is an activity of Government which is provided for Regulation of social
conditions of society members life in order to increase their well-being, eliminate market
failures and provide Social justice.
The main agents of social policy are Ministry of social policy, Ministry of public
health, Ministry of public education and science, Committee on social policy, employment
and public pensions of Verchovna Rada.
Government social policy consists of several fields:
1) Regulation of social relations, including interaction between employers and
employees;
2) solving problems of unemployment;
3) distribution and redistribution of income, which is usually accomplished through
taxation and spending policies;
4) Providing employees with social safeguards (соціальних гарантій);
5) establishing social security systems;
6) developing social infrastructure facilities (public health services, public education
institutions, child care institutions, research institutions, sports and culture facilities,
housing services (ЖКХ));
 7) environment security.
There are some tools of social policy which Government can use to develop social
regulation:
1) direct Government expenditures for financing of social policy fields;
2) different types of transfer payments as income supplements (дополнит выплаты)
for certain groups of people, such as family allowances (выплаты многодетным
семьям), public pensions, scholarships;
3) developing Social insurance system - accident and sickness insurance,
unemployment insurance, health insurance. Social insurance is provided by governments
when society believes that individuals should have a social safety for the most severe
тяжелый risks such as unemployment, illness, and low incomes.
4) efficient individual income taxing system;
5) welfare-state programs in order to solve definite social problems, including
antipoverty programs, public health programs, public education programs, environment
programs and so on;
6) Government price regulation / control;
7) establishing public works;
8) establishing environment and Social standards and social safeguards, such as
setting minimum wages, public pensions and others;
9) encouraging labour unions,

5. Public administration in the administrative and political sphere.

Political system is a set of relevant institutions involved in formation, distribution

and implementation of state power to manage social processes and represent interests of
different social groups.
State serves as public organization of political management of society, a factor of
consolidation of the political system. Political system is a control object of Public
administration in the administrative and political sphere.
 The purpose of public administration in political sphere is creating the necessary
political and legal conditions for strengthening democratic values in society, in public
policy and administration.
One of the main tools of Public administration in political sphere is financial
regulation (financing party activities, encouraging citizens to participate in political
activities).
Classifications of political systems
In modern political science, one of the core classifications of political systems is
their division depending on political regime to democratic, authoritarian and totalitarian
political systems.
Depending on political culture and interaction of political institutions, one can
distinguish four types of political systems: the British-American; Continental-European;
pre-industrial or partly industrial (countries of Asia, Africa and Latin America);
totalitarian (USSR, China, North Korea, Vietnam, Cuba).
Political system has several elements:
- Form of government (federal, national);
- polity type (republic (parliamentary, presidential, mixed), monarchy);
- system of political parties;
- voting system;
- Political culture.
Let’s consider Political system of Ukraine.
Ukraine has national Form of government, polity type of mixed republic.
System of political parties in Ukraine includes different parties that express diverse
political interests and embody them into life through the struggle for power.
Functions of political parties:
 control of government and organization of debates in the Parliament;
 expression of people’s interests and transformation them in government
policies;
 determining the strategy of government, ensuring its responsibility to people;
 determining development strategy of state;
  coordination of functioning of executive and legislative power;
 managing consensus between different groups of interest.

The basis of model of democratic state is open political market, which means pure
competition between parties main principles are:
 multiplicity of parties (exists if three or more political parties with different
Ideology are presented in Political system) and
 political pluralism (diversity and free competition of political ideas, views,
concepts, functioning of Legal opposition).
Due to proportional voting system the number of political parties increased from 96
in 2004 to 172 in 2009 and 202 as of October 1, 2012.
Problems of System of political parties in Ukraine:
 large number of parties that have no social base;
 political parties are rather substitutes, that do not perform functions of
representation of citizens well, and implement interests of their financial
stakeholders.
Voting system. In Ukraine popular will is implemented through elections,
referendum and other forms of direct democracy. Elections to the public and local
authorities are free and are held on the basis of universal, equal and direct suffrage by
secret ballot. Voting system is mixed and joins features of proportional and majority
voting systems.
Political culture of modern Ukraine refers to passive-democratic type in which
people perceive принимать values of a democratic society, but are not ready to actively
support them. This occasion directly affects the level and quality of political participation.
Peculiarities of Political system of Ukraine:
 transitive political system,
 instability, permanent tensions between government and opposition, between
branches of power;
 it is a system with relatively slow social changes which is not enough recipient
восприимчив to social innovations;
  it is rather rigidly centralized,
 it has propensity to adhere следовать the model of other systems;

6. Specifics of PA in the sphere of culture and ideology.

Culture is an aggregation of material and spiritual heritage of a certain human
community, accumulated, confirmed and enriched for a long period; it includes all kinds
of arts, cultural values, science, education and reflects the level of development of the
community (Law of Ukraine "On Culture", art. 1).
Modern Ukrainian national culture is developing within a cultural space of the
state, which comprises an area where cultural activities are carried out and cultural,
information needs of citizens and demands for leisure activities are satisfied: namely, radio
and television, book publishing industry, market of cultural goods, as well as cultural and
art environment (Law of Ukraine" On culture ", art. 1).
Sphere of culture is a control object of government cultural policy.
Government cultural policy is deliberate, determined by conscious value social
priorities, activities of government in the field of development, preservation and expansion
of culture within the cultural space of the country.
The main agents of government cultural policy are:
1. Ministry of Culture of Ukraine (forms and realizes government cultural policy);
2. Cabinet of Ministers (provides financial assistance, carries out investment policy
and taxation in a cultural sphere, develops national cultural programs);
3. local state administrations, local self-government bodies;
4. Verchovna Rada (adopts laws);
5. President of Ukraine (gives presidential scholarships, grants, “national” status
for leading cultural institutions);
6. non-governmental organizations, creative professionals.
Subsystems of control object of PA in the sphere of culture are:
1. cultural institutions (theaters, cinemas; concert, exhibition halls; Clubs; museums,
art galleries; Institutions of cultural and art education; libraries; Parks);
2. media (radio and television, book publishing, Internet)
 3. Cultural and art projects (festivals; competitions; exhibitions; performances;
concerts);
4. National cultural state targeted programs
5. Cultural Facilities
6. activities in cultural sphere.
Funding sources of cultural sphere except state and local budgets are the
following: Business activities; grants; charity.
Business activities in cultural sphere take form of cultural industries, such as:
motion pictures, TV broadcasting and media; performing art and visual art (show
business, galleries); architecture; crafts and design (fashion, interior); Internet and
information technologies (computer games, educational programs, advertising);
publishing; tourism and entertainment.