Hind sight analysis of the protectionism role in the development of entrepreneurial class


The article dwells upon the research of the protectionist measures role in the development of industrial and trade class as the basis of enterprise formation on the Ukrainian territory in 19th – early 20th.

Author described conditions of formation and features of industrial and commercial class in Ukraine in the early 19th century. It was found that numerically insignificant class of industrial and commercial bourgeoisie enjoyed the highest patronage from the government, which was the impetus for business and acted as a factor for strengthening economic and political dependence on government. Paper reveals the mechanism of state influence on the development of industrial and commercial areas and class of entrepreneurs through the prism of its instruments of customs and trade policies (export and import taxes, the system of customs taxes and charges, international treaty policy) and the so-called “internal” protection (adoption of industrial and trade legislation, implementation of fiscal, financial and compensation policies, development of industrial and commercial infrastructure, etc.).

Author systematized methods of government protectionism and found most significant ones for the development of the business class, which turned to be instruments of tax incentives, trade and legal privileges, export subsidies, expansion of industrial and commercial entrepreneurs’ rights, and also those ones that created preferential conditions only for individual financial and business groups, including industrial subsidies, public procurement, financial and credit mechanisms and so on. The estimation was done on the structural changes in the business class under the influence of protectionism in the end of 19th – early 20th century.

It was established that, on the one hand, the policy measures of state support significantly increased the number of entrepreneurs in the Ukrainian region, as evidenced by the volume of trade documents, on the other hand – the effects of protectionism included the monopolization of trade and industrial rights of individual socio-economic groups and restructuring of class entrepreneurs aimed at reduction of the peasant entrepreneurs’ role (on social grounds) and the gradual displacement of industrial and commercial centers of Ukrainian businessmen with the given preference to those who came from Russian regions (on a national basis).

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