Journal
УКР   ENG
Socio-Economic Problems
of the Modern Period of Ukraine
   



Collection SEPSPU -- sep2025.03.010

Repository of Institute of Regional Research UDC 332.135:339.94; JEL R11, R23
Baranetskyy, T. Ya. (2025). Dosvid zastosuvannya instrumentariyu terytorial'no oriyentovanoho upravlinnya v YeS ta Ukrayini [Experience of applying the territory-oriented government tools in the EU and Ukraine]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 173 (3) (pp. 10-17). DOI: https://doi.org/10.36818/2071-4653-2025-3-2 [in Ukrainian].
Sources: 27

Authors



Baranetskyy Taras Yaroslavovych

Postgraduate of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: bartaras@gmail.com

Webpages:

Resume

The article explores the experience of applying the territory-oriented governance tools in the EU and Ukraine (during the period preceding the formal establishment of this approach as mandatory for the development of regional policy documents at all levels of governance). The study demonstrates that, despite Ukraine’s large territory and high level of regional differentiation, regional policy was not prioritized until the mid-2000s. Early attempts to introduce the territory-oriented mechanisms were fragmented and focused on specific categories of territories, such as mountain settlements, small mono-functional towns, and priority development areas. These initiatives, although methodologically significant in defining criteria for territorial classification and offering differentiated tools of state support, failed to produce sustainable outcomes. The reasons included inconsistency with national strategic documents, absence of secured and guaranteed financing, and insufficient reliance on the endogenous potential of territories, while the criterion of “depressiveness” often encouraged passive expectations of state aid. The analysis highlights that Ukraine’s regional policy trajectory reflects a gradual shift from sectoral and redistributive models to approaches aligned with the European Union’s place-based paradigm. This transition gained momentum with the approval of the State Regional Development Strategy for 2021–2027, which for the first time introduced functional types of territories, and with the 2022 legislative amendments that made the territory-oriented approach obligatory. However, the legacy of past inefficiencies continues to be relevant, particularly in the context of Russia’s full-scale military aggression, the destruction of economic and social infrastructure, and the simultaneous necessity of harmonizing Ukraine’s policies with EU standards. The research contributes to the understanding of how the territory-oriented tools evolved in Ukraine, their limitations, and the conditions under which they could become effective in the future. It argues that sustainable recovery and European integration require strengthening the institutional and financial foundations of this approach, ensuring systemic coordination across governance levels, and mobilizing the endogenous potential of diverse territories. The findings suggest that Ukraine’s post-war reconstruction and regional cohesion will largely depend on the capacity to adapt and fully implement the place-based approach in line with best European practices.

Keywords:

territory-oriented governance, regional policy, functional types of territories, development tools, State Regional Development Strategy, European Union

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