Economic management of the unrecognized Donetsk Republic: legal framework, patterns, prospects

Introduction. The review of individual results of economic management of the state with a special status evidenced by the Donetsk People’s Republic is provided in this article. The newly formed state has to create its own economic management system as a result of the military-political conflict.

The conditions of limited opportunities require, on the one hand, taking an account of available opportunities and external constraints for the purpose of providing for current societal needs, and on the other hand – a strategy for a long term economic development, which should contain the development of its own economic model, identification and prediction by the government of future threats and risks, which will provide a correction impact on the socialeconomic system. The more the republic’s economic management system borrows old tools and mechanisms, restores technological chains that have proved their economic futility in the pre-conflict period, the more urgent the solution of this dual problem is. The article provides a brief analysis of the prerequisites for the formation of a management system for the republic’s economy and the consequences of the implementation of its principles.

Materials and methods. The methodological basis of this research includes the following general scientific and special methods of cognition of organizational and economic phenomena and processes in the field of public economic administration: comparative method; formal-logical method; statistical method, grouping method, method of analysis and synthesis, substitution method. Results of the research. As a result of the analysis, it was revealed that the economic management system of a state with a special status requires increased attention, resources and time. Currently, it has passed only the first stages of its formation, has not completed its first stage of organization - the stage of formation. The system of managing the state’s economy with a special status is still in the process of searching for effective mechanisms and instruments of government and determining priority areas for economic development. This explains both attempts to restore outdated technological chains, despite the fact that they demonstrated a devaluation of their economic potential under more favorable conditions, and continuing uncertainty with the choice of an economic development model, when the old mechanisms no longer work and the new ones have not yet been developed.

Discussion and conclusions. The drawbacks of the formed system of managing the state economy with a special status, caused by the use of outdated organizational and economic-production principles and tools are shown. The urgency of the development of its own model of economic development in conditions of limited opportunities is grounded.

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