ANALYSIS OF INSTITUTIONAL RISKS OF SUSTAINABLE SEA DEVELOPMENT IN UKRAINE

Abstract

The research objective is to define institutional risks in the process of formation of the institutional environment of the maritime economy sphere within the context of the implementation of international sustainable development policy into Ukrainian economy. The article considers the risks and threats of the emergence of institutional risks and “traps” in the economy, their influence on maintaining sustainable development of the maritime economic sphere in Ukraine. The article analyses peculiarities and causes of the crisis situations of 2013– 2017 in the Ukrainian maritime economy, discovers the existing structural imbalance of institutional environment and offers a set of measures for the integration of national objects of the maritime economy into European maritime clusters. Methodology. The research defines the essence and interrelation of institutional risks and institutional “traps” in the modern institutional theory. It was established that institutional “traps” in the maritime economy emerge due to management misjudgements in relation to new regulations suggested by policymakers and inefficient institutions without taking into account the existing economic and environmental risks for economic activities at the microeconomic level. That is to say when the state ignores the main institutional threats: resilience of shadow arrangements; a procedural overload of the management system; immaturity of the regulatory-legislative sphere, resource-intensiveness of organisations and their interrelations. Practical implications. The conducted research on the existing institutional risks (traps) of the Ukrainian maritime economy allowed discovering the level of structural deformations of the institutional environment in accordance with sustainable development methodology, to offer an action plan for improving the institutional environment that would allow removing the existing social, economic and environmental risks. Value/originality. The article demonstrates that though institutional risks are of common nature for various countries and scopes of activity, they do not work in the same way and have different symptoms of emergence in each separate sphere, in particular, in maritime economy. Thus, the recommendations for their prevention and overcoming substantially differ from each other. The research offers a set of priority tasks for overcoming the crisis phenomena in the sphere of the maritime economy of the Ukrainian Black-Sea region related to the transition of Ukrainian business structures to sustainable development. The authors have determined that institutional risks that influence various segments of economic activities are complex in nature. In this context, determination of interrelations between institutional risks and other types of risks, in particular, economic and environmental ones, becomes especially important.