Palladin, A.2020-04-032020-04-03201710.32342/2074-5354-2017-1-46-11http://ir.duan.edu.ua/handle/123456789/2760The economic growth is often measured in quantitative terms like GDP, exports and imports dynamics, unemployment, inflation, etc. At the same time, there is another term that may be as equally if not more, considered to measure changes in the economy. It is the economic development. While the former quantifies the picture, the development also includes qualitative changes and more holistic indicators like the standard of living and the institutional maturity, which lay the ground for the current work. The institutional framework substantially defines the ‘rules of the game’ and may either promote or hinder the economic development of a country and eventually affect its quantitative indicators. The notion of institutions has no single definition; neither has a defined subject area. Therefore, this article zooms in into the nature of institutions, their kinds, and applicability from different perspectives and fields. We will pay closer attention to property rights and their applicability in Ukraine. As a case study, we will consider the privatization of state enterprises in Ukraine.The paper discusses the nature and types of institutions, raising the issue of the international involvement to change them. Also, the work addresses the problem of economic institutions in Ukraine. In specific, the author addresses the property rights as a bundle of rights, suggesting the necessary preconditions for their effective exercising. Also, the paper deals with the current state of property rights in Ukraine, illustrating its main deficiencies. Finally, a brief perspective onto the privatization of enterprises in Ukraine is presented.otherinstitutions, types of institutions, property rights, security of property, privatization in Ukraine.