Interactions between the bureaucracy and small independent enterprise in post socialist Ukraine

The emergence of new states from the collapse of the Soviet system resulted in a new enterprise sector as well as new tasks for state administration. As implied by existing theory, the interplay between those two is critical to the development of a strong and vibrant economy. Where there are difficulties in the relationship, obstacles cause impediments to development of enterprise, which in turn affects economic growth. This thesis examines the concepts of bureaucracy, enterprise, interactions and corruption. This is the starting point for the analysis of normative and positive versions of interactions between small independent enterprise and official agencies, termed bureaucracy. These interactions are broken down analytically and their component elements explored. By highlighting differences between the two versions, it is possible to identify problems, potential problems or non-problem areas of particular interactions and draw some more general conclusions. The task is also important for the purpose of legal, regulatory and policy reform. The thesis assesses the role of bureaucracy in the development of small enterprise in Ukraine. Case studies focus on five bureaucratic interactions and reveal the weaknesses of the relationship, as well as some areas where interactions pose no impediment to enterprise development. An assessment of difficulties and correlation between normative and positive versions of the interactions shows that there is little consistency among the five types of interactions analysed. Thus, while the role of bureaucracy has a significant effect on the development of enterprise, more specific problem areas may be identified. The thesis concludes that while there is a need for a more detailed examination of the relationship between bureaucracy and enterprises, nevertheless, the current evidence suggests that enterprise development is difficult and the relationship with bureaucracy is fraught with pitfalls, which has serious implications for economic development