Development of real sector of Ukrainian economy in the framework of the post-war recovery

Abstract

Introduction. Russian invasion has already caused – and will likely cause more – losses for Ukraine overall and its real sector in particular. They come on top of structural problems that had been accumulating in Ukraine since the dawn of its independence. European experience suggests a model for comprehensive solution for post-war recovery and structural transformation on the basis of a plan that is coordinated with international donors and backed by the state. Problem Statement. Post-war economic recovery coupled with simultaneous resolution of legacy industry problems, under pro-active engagement of the government and with support from international partners Purpose. The aim of the study is to determine the role of the government in organizing work on modernization of existing and establishment of new enterprises that can arranged with participation from international leaders in respective productions with regard to their economic interests under post-war recovery of Ukrainian economy. Methods. The study is based on scientific works, methodological studies of leading Ukrainian and foreign scientists. The study was conducted with help of critical and scientific analysis, scientific generalization and systematization methods, induction and deduction for establishing relationships of cause and effect between domestic and external factors. Results of the study, conclusions and recommendations are grounded on integral approach. Results. After Ukraine gained its independence, its real sector has accumulated a number of problems because of distorted application of market mechanisms and inadequate support from public management. Russian invasion caused ruining of infrastructure hubs, large and small enterprises, including key companies for certain industries, and large-scale flows of refugees, inter alia abroad. Temporary relocation of enterprises, which made a partial production recovery possible, was a temporary response to the invasion. In the aftermath of the hostilities, Ukraine will have to mend both pre-war deficiencies and results of treacherous Russian aggression. However, this requires massive resources, which Ukraine under its current (or even pre-war) condition does not possess. Global experience offers mechanisms for raising necessary funds from other countries for a post-war recovery. Primarily, the article speaks of the Marshall Plan. In order to use such resources in an efficient way, we need to develop measures for reconstruction of Ukrainian economy at a new qualitative level that would rely on active support from the government. Conclusions. A success in the post-war recovery of Ukrainian economy, inter alia with support from other countries, is only possible under active government engagement under application of project approach model. It allows for effective implementation of innovative projects with active state facilitation and establishing framework conditions, as well as meeting external investors’ needs. A more pro-active role of the state in promotion of higher efficiency of the economy should be provided for in the law.