TRANSFORMATION OF SOCIO-ECONOMIC SYSTEMS UNDER CONDITIONS OF INTEGRATION TRANSFORMATIONS

The main purpose of the publication is the development of theoretical approaches, the systematization of the results of analysis and the identification of modern trends in the transformation of socio-economic systems under the conditions of integration transformations and the definition of measures for promoting effective integration of Ukrainian economy into the modern international environment. The features are identified and problematic aspects of the current stage of socio-economic development of Ukraine are singled out. It is emphasized that the dynamism of the economic environment, globalization and integration of the socio-economic space, informatization, and the introduction of innovations lead to the transformation of existing socio-economic systems. © Mykhaylo Voynarenko, Olga Gonchar, 2018. Voynarenko Mykhaylo, Doctor of Economics Sciences, Professor, Corresponding Member of the National Academy of Sciences of Ukraine, First Vice-rector Khmelnytskіy National University, Ukraine. Gonchar Olga, Doctor of Economic Sciences, Professor, Professor of the Department of Marketing and Trade Entrepreneurship, Khmelnytsky National University, Ukraine. J o u r n a l o f E u r o p e a n E c o n o m y Vol. 17. No 2 (65). April–June 2018 ISSN 2519-4070 225 The factors that influence the formation of the modern socio-economic system and the conceptual foundations of providing economic development of Ukraine are revealed. It is concluded that in order to implement the existing tasks of ensuring integration changes in the Ukrainian economy it is necessary to rely on its own potential and the construction of an effective system of state regulation of socio-economic processes in a rational combination with market mechanisms. The effectiveness model elements of the socio-demographic potential formation are proposed. The attention is focused on the state regulation priority directions of the country’s socio-economic development through the development of state programs in the context of main directions of socio-economic systems functioning and measures that need to be implemented. The attention is drawn to the value of cluster associations in the transformation of society. The key directions of transformations, the public administration effectiveness ensuring and promoting of stabilization implementation model and country’s economic growth are substantiated.


Introduction
The characteristic features of the current state of the Ukrainian and world economy are the growing dynamism of the business environment, caused by globalization and the integration of socio-economic space, informatization, accumulation and use of new knowledge. Combined with the acceleration of processes of interpenetration of business entities in adjacent markets and other countries' markets, this result in the transformation of socio-economic systems. The socio-economic system of Ukraine is at the stage of establishment, transforming into a relatively effective liberal-capitalist, socially-oriented market model of society organization. Its formation is complicated by the financial and socio-economic crisis of recent years and the military conflict in the East of the country. According to the consensus forecast of the Ministry of Economic Development, the economic situation in Ukraine can improve already this year: in 2018, Ukraine's real GDP will grow by 3.2%, and in 2020 real GDP growth in Ukraine will be 3.3%, in 2021 -4%; according to the World Bank, Ukraine's GDP will grow by 3.5% in 2018 and by 4% in 2019 and 2020 Ukraine. GDP, World Bank, 15.12.2017, www./news/money/vsemirnyy-bank-prognoziruet-rost-vvpukrainy-v-2018-2020-godu-226349.html).
At the same time, in recent years there has been a tendency for reducing real GDP rate, a fall in the exchange rate of the national currency, and a loss of confidence in foreign investors, which causes a number of negative phenomenon in the Ukrainian economy. All industries that play an important role in the country's economic growth, determine the level of investment activity, employment and form the vast majority of budget revenues are in a rather difficult condition. Factors influencing the decline in the effectiveness of the Ukrainian economy have been revealed for a long time ago, but due to the lack of effective anti-crisis measures, the situation in the political, economic and social spheres continues to get complicated. There is an urgent need to introduce innovative methods and new technologies in the management of socio-economic processes into Ukrainian practice, taking into account that in the conditions of the socio-economic crisis, the regulatory role of government should be the main condition for the successful completion of the transition process of building a modern socio-economic system of the country.
The research objective is to develop theoretical approaches, to systematize the results of analysis and to identify current trends in the transformation of socio-economic systems under the conditions of integration transformations and to identify the main measures to promote the effective integration of the Ukrainian economy into the modern international environment.
The object of the research is open economic and socio-economic systems of the country, as organizationally heterogeneous, complex structures characterized by self-organization and self-development.
The subject of the research is theoretical and methodological principles of the transformation of economic systems in the conditions of globalization and the conceptual foundations of their integration into the modern world economic environment.

Analysis of the recent research and publications
The transformational problems were studied in the fundamental works of the philosophical and methodological nature by the scholars, who explain the be- However, despite the existing achievements, the need to study the dynamic, complex transformational processes in the realities of the Ukrainian economy, the mechanisms of effective integration of Ukraine into the global world environment remains relevant. The theoretical and applied aspects of modeling the processes of socioeconomic development of Ukraine and their management have a profound scientific basis and practical testing, however, the difficult economic situation in the country and the results of the system analysis carried out require a theoretical substantiation of the identified economic and social problems and the development of a system of measures for the withdrawal of Ukraine from crisis condition.
The generalized international experience of socio-economic development of a number of countries allows distinguishing common, most characteristic features both for determining a certain type of socio-economic formation, and for the possibility of its detailed characterization and evaluation, in order to provide indepth study of the development trends of a particular country, taking into account its national peculiarities.
Thus, the theoretical research of socio-economic formations allows us to consider society as a holistic socio-economic system that functions and develops in accordance with its economic laws on the basis of the historical-dialectical unity of productive forces and industrial relations, and includes the historical processes of transformation and interaction of the latter: the unfinished productive relations of the previous formation, the existing industrial relations of the present and the established industrial relations for the transition to the next stage of development or at the new socio-economic structure. Historically, in some countries such a transition occurs spontaneously, and some of them made it is possible to direct its economic development according to the action of economic laws, morality and culture principles. In the first case, we can state about the mixed models of socio-economic development, and in the second -about clearly defined model of the country's development.

Analyzing
Globalization and integration are the most important forces that determine the development of the world economy. Globalization, as a process of "opening" the borders between countries was initiated by the United States and provided developed countries with the possibility of extensive economic growth through access to external commodity markets. On the other hand, new markets have helped to overcome the crisis of overproduction. Such a development mechanism limited the number of countries benefiting from globalization. Developing countries took part in the international market as suppliers of raw materials and became markets for sales.
Ukraine's economy, as noted, is at a transitional stage in the development of market economy. Transformation period in different post-socialist countries, which began in the 90's of the 20th century from the course of reforms aimed at the transition from a centralized planned economy to market relations through the development of small and medium enterprises and privatization. In most countries of Central and Eastern Europe, the transition period was successfully completed and ended with joining NATO and the EU in the early 2000s.
Unfortunately, Ukraine did not succeed in gaining such positive results. Significant financial-economic, internal and external political crises, armed conflict in the East of the country caused a significant decline in production, exports falling, currency depreciation, declining household incomes, and worsening of socio-demographic indicators. The instability of the regulatory framework for doing business reduces investors' confidence and causes problems in investing in the Ukrainian economy.
For implementing the existing tasks of integration change, the Ukrainian economy needs to rely on its own potential and on organization of an effective system of state regulation of socio-economic processes in a rational combination with market mechanisms. It is expedient to carry out state regulation, first of all, by developing state programs of socio-economic development in the context of defining directions of functioning of socio-economic systems. Key measures that need to be implemented: • selective support for strategic sectors through budget financing; • financing and development of the educational and research activities; • stimulating the development of national companies and their innovative technologies use; • standardization and quality control of domestic products, ensuring its compliance with international standards;

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• promotion of commodity exports and regulation of goods import; • introduction of indicative planning that will support the justification of an effective socio-economic policy concept in conjunction with the functioning forecasts of the economy, state programs and a system of development indicators and key levers of state influence on social and economic processes.
The quarterly survey of the European Business Association shows that companies operating in Ukraine have worsened their assessment of the investment climate in Ukraine since the end of 2011. The rating was particularly low in the fourth quarter of 2013. In the first half of 2017, the investment attractiveness index of Ukraine increased significantly and amounted to 3.15 points on a 5-point scale. During 2016, the index had a steady upward trend. The last time the index was higher than 3 points only at the end of 2011 (Fig. 1).

Fig. 1
Score assessment of the investment climate in Ukraine, according to the European Business Association, 2017, access mode: 10.11. 2017, http://news.finance.ua/ua/news/-/361677/biznespogirshyv-otsinku-investklimatu-ukrayiny-cherez-koruptsiyu-doslidzhennya 2  Among the 98 association member companies participating in the survey, 89% expressed dissatisfaction with the state of the investment climate in the country: the level of fighting corruption does not match its size, the reforms are slow, the lack of effective legislative regulatory framework stops new investors from investing in Ukraine as in a promising market.
When planning and implementing global structural changes, it must be taken into account that, along with positive influences of foreign investment in the growth of the national economy, potential negative consequences can arise. The main ones are: increased competition, crowding out of Ukrainian investments and companies, and promotion of the transfer of capital from the country based on different pricing schemes and internal reallocations of financial resources. For example, for the period of 2008-2014, almost 58 billion dollars were transferred in foreign currency by non-residents from the territory of Ukraine as payments of dividends and interest, although for a favorable investment policy of the country and arranging proper payment control, a significant sum of relatively cheap investments of domestic origin could belong to non-residents, V. M. Heiets (2015).
Ukrainian economy and business, despite the efforts, are still low competitive. Therefore, only the state can confront international challenges. This requires the development of a sound, effective investment policy and regulatory framework for regulation.
The numerous factors influence the formation of the modern socioeconomic system of Ukraine. The most influential are institutional ones. Even minor violations in the institutional structure result in significant (often irreparable) complications in the economic environment. All this holds back the growth of the pace of economic development of the country. That is why the problem of institutional transformations in the context of the transformation of socio-economic systems becomes very important. At the state level, a policy of creating institutions which are necessary for the successful formation of modern economic relations should be formed.
The important task for the state is the formation of development institutions. Our country is significantly behind other in the formation institutions issue: in Poland, for example, there are more than 60 industrial parks and the US has more than 400 of them. So, institutional environment of Ukrainian economy does not reach the proper level of developed countries, and is not able to withstand the challenges of the second successive crisis of a systemic nature, launched by the global crisis of 2008-2009 and the reason is previously accumulated imbalances between the dynamics of GDP, growth of innovations and the real incomes of population. Thus, by 2014, the index of investments in fixed assets was 44.4% of the 1990 level, while the growth rate of real disposable income of the population in 2014 to 1990 -125.4%, and GDP in 2014 to 1990 -64.8%. The general level of production does not reach the level of 1990, the sectoral structure is completely destroyed, and the level of population stratification according to incomes is excessively high. The calculations obtained confirm the emergence of prerequisites for the crisis in Ukraine, which, like most countries, suffered losses from the movement of capital abroad, which led to the largest drop in GDP among countries, Hrytsenko A. (2014, 7).
Another important key process in the starting conditions of economic transformations should be the development of information systems as complex polysystem of socio-economic entities, which become the driving force for positive changes in all sectors of the national economy and in all spheres of human life. Information technologies and systems, under condition of their proper organized use can provide economic growth by stimulating competition, promoting production expansion, and increasing productivity. Over the past few years, Ukraine has been among the top five exporters of software products. Only India, China, Russia and Brazil are ahead of Ukraine. The IT industry of Ukraine includes more than 200 thousand enterprises, their total gross income is 12 billion UAH a year. Exports of information and computer technology services is 9.5 billion UAH, or 80% of the total state income.
Thus, Ukraine has a strong intellectual potential and can become one of the largest software producers in the world, which, first of all, will bring significant income to the state. Statistic data testify to the importance of IT-technologies for economic growth. Let's consider the growth of incomes of this industry in the world over the last decade (Fig. 2).
So, it was expected that in 2016 the IT market will receive revenue of almost 3.7 trillion euros. According to forecast data, world GDP at that time will amount to 60.7 trillion euros. That is, the share of the IT market in world GDP is almost 6.2%, whereas in 2013 this share was 5%.
The economic situation for Ukrainian industrial enterprises in conditions of demand reduction and high competition between manufacturers of products imposes high requirements for activities organization and efficiency promotion. Thus, the crisis conditions prompt the most effective management of enterprise costs, the market requires lower prices for products, shortening delivery times, improving product quality, ensuring a high level of service, an important role in this also belongs to IT technologies and information supply. In order to meet market requirements, ensure competitiveness, enterprises are forced to reduce costs, optimize stocks and level of work in progress, reduce the length of production cycles, improve the efficiency of production processes. Implementation of goals requires the application of innovative management methods, technologies for improving managerial processes. The organization of management has a direct impact on the activities of all enterprise systems, both in substantiating the goal and in its adjustment, in making decisions, and in monitoring the progress of their implementation. To this end, there is a need for comprehensive, accurate, qualitatively processed information, knowledge necessary for the activities of both enterprises, their associations, as well as their management. Providing this type of information depends on information systems and information technologies operating in enterprises. The analysis allowed distinguishing the main problems that do not allow to fully using the information potential of business enterprises when making managerial decisions.
In the process of situation analysis and evaluation, an expert evaluation was conducted. The experts selected the representatives of the administrative departments of the machine-building enterprises of Khmelnytskyi region. The experts identified the main problem aspects in the development of modern information systems at Ukrainian enterprises. The results of experts' opinions on existing problems are summarized in Table 1. Table 1 Problem aspects of the use of information systems and information technologies at the machine-building enterprises of Khmelnitsky region

Reasons of discontent
Respondents percentage, % Forms of information submission are imperfect, it complicates its perception 81 Significant amount of time required to find the necessary information 43 Information technologies and services are not adapted to the specifics of the company's activities, and therefore require additional time for the specification and improvement of the elements 31 Existing information systems of enterprises do not have a flexible structure, which complicates the information use under conditions of changes in the business environment or legislation 28 Lack of a single information environment for automation 42 Not all functionalities of information technology are fully used 23 Often, there is limited or insufficient amount of information to justify and select managerial decisions 83 Often, unsystematized and biased information 51 The results of the expert survey confirm that information systems and technologies need to be substantiated by a clear, effective strategy for development and operation. After all, each enterprise has individual information needs, volumes and types of necessary economic information, depending on which the goals and tasks of the enterprise information infrastructure are determined. In order to prevent existing risks and overcome the problem, it is necessary to determine what kind of correlation of information types is used in making managerial decisions. Therefore, it is necessary to distinguish the types of information used by the management of machine-building enterprises, as well as their associations or regional structures.

Research results
Thus, our theoretical researches of the contemporary fundamental works by scientists on various fields of assessment of the country's socio-economic development allow us to make a reasonable conclusion that today Ukraine faces the problem of choosing a new model of economic development that would enable the national economy to enter into the shortest possible time into world economic space with a high level of civilization, progress and prosperity. However, an important transitional stage is necessary for its construction -an exit from a sharp political and economic crisis, which should be implemented in a short time, with scientifically grounded economic policy and the development of socioeconomic development state programs in the directions ensuring the integrity of the national economy development strategy with corresponding proportional growth of macroeconomic indicators of the political, cultural, social, ecological and natural spheres of the country.
At the transitional stage, an important function of state regulation will remain the control and evaluation of the process of implementation of the tasks of the transition phase. The main ones are: 1) the analysis of trends in the population welfare growth, the new type of ideology and culture formation; 2) the products and services competitiveness assessment in foreign markets, their promotion enhancement; 3) the development indicators analysis of scientific, technical and technological spheres; 4) the assessment of the level of investment and innovation activity of regions and industries; 5) the assessment and analysis of the national economy branches state, the potential for their development.
The main areas of state regulation should be: economic, political, social, natural and economic, scientific and technological, cultural and ideological. Namely, the activities will include: the state programs of socio-economic development formation in the context of each direction, critically permissible forecast values definition for the most important indicators, economy priority sectors, creation of institutes, structural units, organizations and institutions, etc. Accordingly, attention should be paid to the key tasks of state regulation of socio-economic processes implementation for the successful completion of the transition phase: 1) the definition of the principles of further implementation of the socio-economic development policy, based on the achievements analysis; 2) the establishment of strategic goals for technological breakthrough; 3) the long-term forecasting of socio-economic, scientific and technical and environmental development, and factors shaping trends and changes.
Taking into account the tendencies of recent years in the socio-economic situation, first of all, in our opinion, it is necessary to involve the following types of investments in industrial modernization: investments in physical capital (equipment, premises, development of industrial infrastructure); investments in techno-logical capital (scientific research, innovation and design development); investment into human capital (for learning and management), since human and social capital in the economically developed countries provide the highest rates of economic growth to date. The movement direction change of socio-economic development of the country is able to implement progressive trends and factors in the formation of socio-demographic potential. The model of the state's efforts effectiveness to ensure the socio-demographic potential of the country should integrate a number of subsystems (Figure 3).

Fig. 3
Model of effectiveness of ensuring the socio-demographic potential formation of the country Involvement and effective use of the territory infrastructure

SOCIO-DEMOGRAPHIC POTENTIAL ENHANCING
Capacity building by organizing a multi-channel financing system

Formation of social infrastructure institutes
Enhancing of demographic potential of the country

EFFECTIVENESS OF MEASURES FOR PROVISION OF SOCIO-DEMOGRAPHIC POTENTIAL FORMATION
The Experience of many countries shows that foreign investments contribute to a more rational use of tangible and intangible national resources. Thus, the operation of foreign companies in the domestic market replacing unprofitable national enterprises, allowing reallocate resources among profitable companies with modern production technologies; foreign investment leading to increasing competition in the domestic market, stimulating the introduction of advanced equipment, technology innovation and improve their performance. Positive result of foreign investments can be attraction to projects of many manufacturers, suppli-ers, service enterprises, research and other organizations. In this case, the attraction of foreign investment serves as a catalyst for economic activity, which increases the reserves for the further development of local business and encourages the involvement of previously unoccupied local investments into the economic activity. Foreign experience also shows that stimulating the effectiveness of the national economy occurs when foreign investment contributes to the revival of abandoned industries, industrial structures and industries and the emergence of new ones. In turn, economic growth leads to a reduction in investment risks, a shortening of the payback period of investment.
In addition, under the influence of state regulation, the process of structural transformation of the economy will become systematic; therefore it is advisable to simultaneously carry out structural reforms in the social, political and culturalideological spheres. Changes in the social sphere will involve the transformation of the state policy towards increasing incomes, improving the health care system and pensions, and combining social programs with employment policies. In the political sphere, these processes require the creation of prerequisites for observance of the norms of the Constitution of Ukraine by all strata of the population and the rapid growth and realization of the intellectual potential of the new ruling elite, as well as the creation of the appropriate regulatory and institutional environment. In the cultural and ideological sphere -the introduction of changes in the value systems of social consciousness, the formation of a new paradigm of humanitarian development, which consists in the rejection of the consumption ideology and the affirmation of new values of the individual and state harmony.
It is the complex approach for solving problems at the state level, which will be the key to the successful modernization of the Ukrainian economy and the construction of own model of its economic growth. Therefore, the main factor of strategic directions realization of national economy development is its structural reorganization on the basis of: increasing priorities of institutes of interaction of the state, science and business; the diversification of effective sources of investment in innovative transformations and clustering processes of the economy oriented towards high-tech, intellectual-information and knowledge-intensive manufacturing with high-quality products that are in high demand on the world market.
Consequently, an important prerequisite for solving a number of socioeconomic problems at the present stage of the domestic economy development is the investment activity stimulation. Attracting investment in the industrial complex is possible with positive dynamics of real investment as part of public resources, which ensures the continuity of the reproduction process in simple or advanced forms. The investment climate in Ukraine continues to be unattractive, resulting in the movement of capital from the country, weakening the banking system, growth of debts and debt dependence of the domestic economy on external financing, unbalanced trade balance and the state budget, financial and economic dependence on the IMF. However, the volume of financial resources is derived from the Ukrainian economy beyond its borders which rate for today is exceeds the annual GDP, indicating a loss in real investment generated by more favorable conditions for the country's internal sources, V.M. Heiets (2015).
Another important direction for the formation of key components of effective economic policy to ensure further socio-economic growth of the country is the formation of cluster associations. Clusters can be considered as a new type of production-economic model, built on the interaction and cooperation of industrial, trading enterprises, financial and credit, educational and research institutions, Voinarenko M. (2013). The experience of the economically developed countries of the world confirms the increase of the competitiveness of the national economy, built on the mechanisms of clusterization. In this connection, the need for the formation of cluster systems capable of ensuring the transformation of innovation factors into the main source of economic growth arises. In addition, clusters provide a combination of competition and cooperation in such a way that the association of participants in some spheres helps to successfully compete in others. For Ukraine, it is an effective direction for the development of the economy and its maintenance at a high level in the system of international economic relations.
Cluster associations activate innovative activities in the regions through search of certain areas of innovative products, the identification of reserves for their production using the latest technologies, and also allow improving the regional socio-economic position through more efficient use and redistribution of resources, lowering the prices for vital for the population of the region services and material values, creation of additional workplaces, etc. However, clusters in Ukraine did not show themselves as powerful economic systems that significantly increase the competitiveness of the national economy in the domestic and foreign markets. This is due to the need for their state support, which first of all requires a well-founded cluster policy as a component of the economic policy of the state, capable of providing an innovative approach to state regulation of a new direction of economic development, Voinarenko M. (2013, 629; p. 8).
To form a well-grounded cluster strategy as a component of the state's economic policy, the systematization of scientific achievements in the field of clustering becomes important in order to determine the direction of state support for clusters in the long run. The tools of state policy should be aimed at eliminating obstacles in the formation of clusters, improving the infrastructure, simplifying the mechanism of attracting financing sources and foreign investments, removing restrictions on the introduction of innovations.
It should also be taken into account that the high level of competition in the world market, its impact on regional development and the development of the national economy requires the establishment of institutions in Ukraine that would ensure and coordinate the functioning of the industrial complex and its external economic ties, primarily cluster associations, their insurance, financial, legislative and informational services.

Conclusions
The basis of the socio-economic system of each country is the processes of production, exchange, distribution and consumption of material goods, which are dynamic and require clear coordination and focusing on the certain goals achievement. Despite the high world level of science and technology development, it is impossible for each country to develop universally accepted standards of development and ways to achieve progress, but to build a new economic system, the use of world practice experience is a prerequisite.
Modern socio-economic systems with a high level of development are characterized by a private ownership of material resources, evolutionary development of property patterns and their progressive interaction, qualitative competitive mechanism. The transformational processes in Ukraine, aimed at building a new economy, are accompanied by overwhelmingly problematic socio-economic and crisis phenomena of protracted nature. This testifies to the fact that there is no clearly defined model of socio-economic development in Ukraine, and there are no mechanisms for state regulation of transformation processes for building a strategy and tactics in achieving the goals of economic growth, which requires further theoretical research, analysis and definition of theoretical concepts of building a civilized society.
On the basis on the results of our research on the peculiarities of the socio-economic development of Ukraine, we came to the conclusion that in order to construct a modern socio-economic system of the country, it would be advisable to develop a balanced, effective state economic policy of the transitional stage to the realization of the real models identified by the scientists, which would be based on scientifically grounded results of research on economic development and growth of the country's economy, with a focus on high-tech industries and competitive products. The available intellectual, scientific and technical potential creates the preconditions for the realization of the set goal. The country's priorities for European integration confirm that such a goal should be based not only on the economic strategy of the state, but also on the political consolidation of society.
In order to ensure the further development of Ukraine in the nearest future, we propose the implementation of the following measures: introduction of a model of the economy in Ukraine with an increase in social standards of the population; definition of requirements for owners of privatized enterprises with prospects of investment-dependent nature of their future functioning and multiplication of the number of workplaces; assistance in the formation of cluster structures as a competitive organizational form of territorial-sectoral model of production and a new element of state economic policy aimed at ensuring socioeconomic development of regions; establishing in Ukraine institutions that would