UKRAINE’S INDUSTRY: MODERN CHALLENGES AND DEVELOPMENT PROBLEMS
DOI:
https://doi.org/10.15407/economyukr.2018.03.049Keywords:
industry; industrial strategy; industrial policy; neo-industrialization; economic developmentAbstract
Ukraine’s industry is now going through a difficult stage, being under pressure of new geopolitical, geo-economic, technological and social changes. Therefore, it becomes important to find effective solutions regarding the systematic updating of industrial model of Ukraine, adequate to new global challenges and national interests. Scientific and practical discussion on problems of industrial development and new industrial policy in Ukraine lasts for several years. However, the aspects of effective inclusion of Ukraine’s industry in process of neo-industrialization, which is a leading global trend, are still insufficiently highlighted.
It is emphasized that due to present state of deep deindustrialization in Ukraine, it is impossible to provide adequate responses to the current challenges to national security and economic sovereignty of the Ukrainian state, global competitiveness of domestic economy, full-fledged subjectivity of Ukraine in international processes and structures, and social and environmental responsibility.
The main problems, which will have a significant impact on conditions of the formation of a new industry in Ukraine according to neo-industrial scenario, are highlighted. These problems will also determine the main directions and instruments of the state industrial policy. As the most significant, the author called the problems caused by de-industrialization: unsatisfactory volumes, pace, structure of production and lack of investment, innovations and qualified personnel. Risks are also associated with a large share of informal economy (shadowing) and informal employment. The reforming is also significantly constrained by the absence of a strategic parity interaction between government and business. Special attention should be paid to the problem of regulating and protecting the property rights, primarily intellectual property rights. The problem of Crimea and Donbas will also have a controversial impact on growth potential and structural changes in the industry.
The strategy of Ukraine’s industrial development should be focused on overcoming these strategically significant problems. It is stressed that the chance for a tangible increase in efficiency of industrial production, which is provided by neo-industrialization, should be implemented on a tight schedule based on effective industrial policy.
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