Economic Institutions of Regulation and Countering Abuses in Property Relations

Abstract

Institutions are made up of formal rules (constitutions, laws, and regulations) and informal constraints (conventions and norms of behavior), and the way both are enforced. Wellspecified property rights that reward a productive and creative activity, a legal system that enforces such laws at low cost, and internal codes of conduct that are complementary to such formal rules are the essential underpinning to productive economy. In order to counteract the illegal property redistribution, it is necessary to have a complex system of uniform norms and interrelated standards of practice, such as legal framework, common policy in the field of law enforcement and coherent policy of economic security. In the article the system of regulation of property rights institutions in Ukraine has been analyzed and an effective option has been suggested. They were based on the economic interest more than on administrative enforcement.