STATE POLICY ON THE STRUCTURAL TRANSFORMATION OF ECONOMY IN OLD INDUSTRIAL REGIONS OF UKRAINE IN THE PERIOD OF POST-WAR RECOVERY

Abstract

The problem of the development of regions, that suffer from economic recession due to the fading significance of industrial factors for economic growth, is in the focus of modern regional policy at the global, in particular European, level. Structural transformations in such regions are adjusted to the requirements of post-industrial society due to complex application of regional, structural and industrial policy tools. For Ukraine, solving the development problems of such regions requires updating the state policy concept, based on factoring in global economic trends in changing the principles of productive forces’ allocation; strengthening the institutional influence on specific features of regions (endogenous depressiveness, structural and social inertia); increasing the inclusiveness of regional labor markets, ensuring the integration of regional economies into global value added chains on the basis of neo-industrialization. The introduction of the updated concept of structural transformations in old industrial regions is important in connection with the implementation of the overall post-war recovery plan for Ukrainian economy. Offered recommendations on ensuring effective structural changes in old industrial regions of Ukraine based on updated state policy concept relate to the elimination of shortcomings in state regional and industry policies and improving their mutual coordination.

The main ways to modernize the economy of the regions on the basis of proposed conceptual approach are the improvement of domestic institutional support for regional development; overcoming the imperfection and instability of sectoral legislation (in particular, relating to the restructuring of coal industry); factoring in the peculiarities of the structural transformation of old industrial regions in the policy on post-war economic recovery of Ukraine.