Constitutional Guarantees for Ownership Rights and the Development of the Market Economy

• Author: Ivan Pankevych
• Profession: Doctor habilitation of Science, professor of the Constitutional, European and International Public Law Department at the University of Zielona Góra, Poland
• Pages: 252-266

Constitutional Guarantees for Ownership Rights

and the Development of the Market Economy

Professor Ivan PANKEVYCH

1

Abstract

This paper presents an analysis of constitutional guarantees for ownership

rights set in the key legislation of European states and their impact o n the market econ-

omy growth. It focuses primarily on the eva luation of the guarantees set in the Constitu-

tion and other acting laws of Ukraine granting the ownership righ ts. In this study, the

author employed such research methods as logical, observation, comparative law analy-

sis, etc. The market economy is the opposite of planned economy since decisions are made

on production, distribution, pricing, or investments by the owners of production means

guided by their interests. Therefore, the topic of constitutional guarantees fo r ownership

and the development of the market economy in post-Soviet and post-Socialist European

states can be considered exclusively upon their regained independence (in case of former

Soviet Union republics) or upon the collapse of the Socialist system and the termination

of activities of the Council for Mutual Economic Assistance (in case of most European

post-socialist states). A state would always pursue to restrict private ownership. The right

cannot be considered as absolute but it shall be reliably protected by the state against

any claims. Ownership rights, in line with such rights and freedoms as freedom of entre-

preneurial activity, freedom of contract, freedom to cho ose the place of employment and

residence, establish the legal framework for the market. This article may be of value to

students of law and economics faculties, experts in the theory of law, constitutional law,

and civil law.

Keywords: constitutional guarantees, ownership, property rights, the market

economy, economic operations.

JEL Classification: K11, K15, K19, P14

1. Introduction

Over the centuries, the market economy has been expanding its impact

and is currently dominating in the modern world. It has become the basis for the

growth of welfare for millions of people. As regards post-Socialist states, the pro-

cess of market economy development started there as late as in the 1990s. Until

that time, they had functioned for quite a long time within the so-called planned

economy in which all decisions on production and consumption of products were

made by the state. The market economy, for which the decisions on production

1

Ivan Pan kevych – doctor habilitation of Science, professor of the Constitutional, European and

International Public Law Department at the University of Zielona Góra, Poland; professor of the

Constitutional Law and Sectoral Subjects Department at the National University of Water and En-

vironmental Engineering, Ukraine, ipankevych@gmail.com.