PhD in Public
Administration Liudmyla Velychko
Grounding of decisions and eVALUATION
of risks while TRANSFORMATION OF ENTERPRISES
Complex grounding of decisions and risk evaluation
is an essential part of effectiveness in the system of government management in
contemporary conditions. This issue gains significant actuality during major
transformational changes in the society. An example of that can be the
experience of carrying out the agricultural reform in
Then each of the existing alternatives had both strengths (opportunities) and weaknesses (threats).
At that the decision
concerning the direction of reformation in agricultural sector of economy was
made considering certain limitations and under the influence of pressing factors on selection of the alternative in the
system of governmental management. Among them are the following factors: long-term
steady stagnation in agricultural sector of Ukraine; acute priority towards
solving current tasks in the economy of the country compared to strategic ones (financial-economic
crisis in 1998, devaluation of hryvnia, decrease in living conditions and so on.); memories
about vitality of solving precisely food problem in the USSR as an example; impossibility
of reaching a political decision concerning the opening of the civilized market of land as means of
agricultural capitalization and increase of agrarian economy under market
conditions; existing gradual allotment in resources of collective enterprises
toward private-corporate sector (through unequal conditions of the required
cooperation with machine-technological stations and suppliers, barter
agreements with traders, low motivation for effective work and so on); potential preconditions to
directing private national capital from other fields of economy into
agriculture and so on.
The made decision about rapid reformation of collective agricultural enterprises in the organization of private-cooperative type can hardly be considered as a flawless one however
it can be viewed as temporary optimal considering positions of existing at that
time limitations and factors of internal and external pressures.
As a consequence the post-reform
rates of economic growth in agriculture of Ukraine during 1999-2014 proved to be more than reassuring, which can be evidenced by the increase in grain export by 14,4 times; labor productivity increased by 11,5 times; gross grain
harvest – 2,6 times; harvest productivity of grain cultures – 2,1 times; gross produce of
agricultural sector in constant price of 2010 – 1,7 times .
But in the civilized world the agrarian sector is not considered as exclusively the producer of food and source of budget replenishment, it is a
complex social-economical system which is at the same time focused on
development of local rural areas.
Corresponding risks from selecting the third alternative turned out to be insufficiently evaluated in social and economic ways which
negatively influenced further development of Ukrainian rural areas.
Therefore contemporary decisions in the system of government management should consider risks in a more complex way and they should be directed at intensification
in the level of agricultural harmonization in
List of references:
1. State Statistics Service
2. Velychko O., Velychko L. & Ramanauskas J. (2016) Transformation and development of production-logistics enterprises in Ukrainian agrarian sector. Management Theory and Studies for Rural Business and Infrastructure Development. – Vol. 38. – ¹ 1. – pp. 3–20.