Property transformation in Ukraine: results of institutional change

The article is devoted to summarizing reform of property relations in Ukraine for twenty-five years of state independence. It analyzes the changes that occurred during this period in the relevant formal and informal public institutions. The author identifies a number of historically determined institutional risks of property transformation, which lead to a distortion of the nature of reforms and the depreciation of their results. It is revealed that imperfection and inconsistency of the legislation regulating property relations brings about a permanent erosion of property rights and corruption; the crisis of legitimacy of private property leads to an outflow of capital, rising unemployment and falling living standards; disregard for the owners' rights is realized in their forced redistribution by re-privatization or raiding and impedes long-term investment; the threat of restitution casts doubt on real estate transactions and destabilizes the business environment. It is concluded about the necessity of a comprehensive coherent compensation of the outlined institutional risks based on consideration of historically formed peculiarities of Ukrainian economic and legal mentality. Developed proposals on improving state policy in the sphere of property relations in order to enhance social legitimacy of private property and guarantees of owners' rights, fighting corruption, law enforcement, regulation of property legislation in accordance with universally recognized norms and standards of law, and rising the welfare and legal culture of society.