Socio-Economic Problems
of the Modern Period of Ukraine

Soc-Econ-Problems_MPU -- Year 2022, Vol 2(154)

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Territorial Development and Regional Economics

UDC 332.1:339.9, JEL R11, F15
Borshchevskyy, V., Zasadko, V., & Matvyeyev, Ye. (2022). Zakhidnyy rehion Ukrayiny v umovakh voyennoho stanu: upravlinnya endohennym potentsialom rozvytku v konteksti adaptatsiyi do instytutsiynykh standartiv YeS [The Western region of Ukraine under martial law: management of endogenous development potential in the context of adaptation to EU institutional standards]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 154 (2) (pp. 3-8). DOI: [in Ukrainian].

Sources: 9

The article addresses the main problems related to the management of endogenous development potential of the Western region in Ukraine under martial law. It notes that the efficiency of using the endogenous potential is determined by such factors as natural resources, human and social capital, institutional environment, managerial competence, infrastructure development, technological innovations, and financial and budgetary capacity. The article shows how the introduction of martial law in Ukraine has affected the effectiveness of endogenous development potential management in the Western region of Ukraine. The focus is on new challenges for local authorities caused by institutional transformations and a significant number of internally displaced persons, as well as relocated enterprises from other regions of the country, including the war zone. The article emphasizes the risk of reduced local governments’ influence on the economic development of the Western region of Ukraine under martial law. It may lead to a decrease in the effectiveness of endogenous potential management of its individual areas. In addition, it will not meet EU institutional standards, negatively affecting the process of further European integration of Ukraine. At the same time, the main advantages of the regions of the Western part of Ukraine are emphasized in view of the intensification of cooperation with the EU. It especially concerns the changes in the institutional environment. Thus, the priority areas of expected institutional transformations include changing approaches to the administration of local taxes and fees, optimizing the mechanism of interaction between authorities at different levels, reforming the system of intergovernmental transfers, and implementing the principle of subsidiarity at all levels of government. These and related institutional innovations will help increase the effectiveness of management of endogenous development potential in the Western region of Ukraine, not only under martial law but also in the postwar period. The article contains the recommendations for public authorities and local governments to implement a number of management measures aimed at improving the efficiency of endogenous development potential in the Western region of Ukraine in current conditions. It substantiates the need to strengthen the administrative and financial capacity of local governments of the region, intensify and diversify cross-border cooperation, stimulate business development, improve the investment climate and modernize local infrastructure. 
endogenous potential, Western region of Ukraine, European integration, institutional environment, local self-government 

UDC 336.142.3; JEL E62, H51, H61, H72
Voznyak, H., & Koval, V. (2022). Vydatky mistsevykh byudzhetiv cherez pryzmu viyny v Ukrayini [Local budget expenditures through the prism of the war in Ukraine]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 154 (2) (pp. 9-14). DOI: [in Ukrainian].

Sources: 10

The war in Ukraine significantly affected the financial and economic situation of communities, which affected the execution of local budgets. Therefore, the problems of improving the tools for the implementation of budget policy at the local level are being updated. The purpose of the article is to conduct a problem-oriented analysis of the current practice of executing local budgets and financing expenditures in the conditions of Russia's armed aggression in Ukraine. A problem-oriented analysis of the implementation of the local budget of Ukraine in the conditions of Russia's military aggression in Ukraine is carried out. Legislative initiatives related to the implementation of the budget process at the local level are analyzed. The surplus of consolidated local budgets for five months of 2022 is revealed. On the basis of the analysis, the following factors were singled out among the important ones for the implementation of planned indicators at the base level: consumer inflation, the growth of personal income tax (including due to the increase in payments to military personnel), the expansion of the system of simplified taxation, the cancellation of the reverse subsidy. Attention is focused on the significant reduction of local budget expenditures, especially development expenditures and the consequences for the development of communities. The article outlines the following problematic issues of the functioning of local self-government today: filling of local budgets, spending, and social support for the needs of internally displaced persons and their integration into new communities. The opinion about the expediency of increasing the expenditures in war conditions and providing benefits is substantiated taking into account the type of territory (depending on the course of hostilities). The need to improve the mechanisms of budgetary equalization of territories is emphasized. 
local budgets, expenditures, war, budgetary policy, territorial community 

UDC 332.05:373.1; JEL R11, I12
Storonyanska, I., & Benovska, L. (2022). Osvitnya infrastruktura terytorial'nykh hromad v umovakh viyny: problemy ta ryzyky [Educational infrastructure of territorial communities in the conditions of war: problems and risks]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 154 (2) (pp. 15-21). DOI: [in Ukrainian].

Sources: 11

The hostilities in Ukraine in 2022 had a devastating effect not only on the critical infrastructure of the regions but also on the educational infrastructure, resulting in the loss by some educational institutions of the ability to perform their functions, and other educational infrastructure began to perform functions not typical for them, including the accommodation of temporarily displaced persons. The article aims to outline the peculiarities of the functioning of the educational infrastructure in territorial communities during the war and to identify its exploitation problems and risks. The following methods are used for the study: abstract-logical, comparative analysis, graphical visualization, and statistical. The article analyzes the functioning of secondary educational institutions of territorial communities during the war in Ukraine. The regional peculiarities of the scale of the educational infrastructure destruction are clarified. Peculiarities and problems of exploitation of the territorial communities’ educational infrastructure in relatively stable regions are revealed. The algorithm of actions taken by local authorities of territorial communities to realize the exploitation of the infrastructure of educational institutions for a temporary stay of temporarily displaced persons is considered. The following risks caused by the war are identified: loss of human capital due to migration processes among students and educators, risks of financing general secondary education and reducing the quality of educational services, and limited possibility of resuming offline learning due to the destruction of educational institutions and the need for misuse. The peculiarities and problems of the organization of external independent evaluation in the conditions of martial law are analyzed, in particular, the simplification of the procedure of external evaluation and a number of risks for future applicants are clarified. 
educational infrastructure, risks, war, funding problems, territorial community 

Economics and National Economy Management

UDC 338.439:351.863.5; JEL Q18, H56
Dub, A. (2022). Perspektyvy zabezpechennya prodovol'choyi bezpeky Ukrayiny v umovakh viyny [Prospects of ensuring the food security of Ukraine during the war]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 154 (2) (pp. 22-29). DOI: [in Ukrainian].

Sources: 33

For many years, Ukraine has held a leading position in the world in terms of agricultural exports. However, Russia’s military aggression has highlighted the need for Ukraine to ensure its own food security. The article aims to identify potential ways to ensure food security in Ukraine in the short term based on an analysis of the steps already taken by all stakeholders to achieve it in wartime. The risks of ensuring food security in Ukraine and around the world are outlined. In particular, the war will lead to the loss of the country’s export potential and hinder the full functioning of the agricultural sector of the economy, while uncertainty regarding the duration of the war carries a potential risk of famine in Asian and African countries importing Ukrainian agricultural products. A gap in the work of the Ukrainian Government in the pre-war period due to the lack of a long-term food security strategy that was bound to be approved in 2021 in Ukraine is emphasized. The country's potential for agricultural products by region during the war is analyzed and critically assessed. The results indicate potential losses of agricultural products due to hostilities in traditionally agricultural regions in the south and east of Ukraine. Within the country, there have been changes in the structure of sown areas to ensure food security in the short term. The steps taken in the first month of the war to strengthen Ukraine’s food security and preserve its export potential are ranged in terms of stakeholder groups. Among them, the article outlines the measures implemented by state institutions at the national level, support measures implemented at the local level, corporate social responsibility, public initiative, and international assistance. To strengthen the country's food security, the need to intensify work at the level of local communities to inform households about the possibility of improving crop production by attracting quality imported seeds is emphasized. Local governments can involve advisory services to improve the processes of growing products and ways to sell their surpluses. It is also advisable for local governments to provide subsidized support to households that keep cattle. Only the unification of all stakeholders - the state, local governments, businesses, households, and international partners - will ensure food security in Ukraine and, consequently, in the countries importing Ukrainian agricultural products. 
food security, war, agriculture, farmers, household 

UDC 338.2:330.3; JEL H83, Р41
Mulska, O., Vasyltsiv, T., & Baranyak, I. (2022). Relokatsiya biznesu v oblasti Karpats'koho rehionu Ukrayiny v umovakh viyny: instrumenty pidtrymky ta nivelyuvannya zahroz [Business relocation to the Carpathian region of Ukraine during the war: measures to support and eliminate threats]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 154 (2) (pp. 30-38). DOI: [in Ukrainian].

Sources: 19

The article substantiates the urgency of the problem of business migration (relocation) from the territories where hostilities are conducted and adjacent territories to the western regions of Ukraine, where doing business in the current war is safer. The study aims to identify current trends in migration (relocation) of business in the Carpathian region of Ukraine during the war, identify problematic aspects and threats associated with these processes, as well as substantiate the tools of state policy to support business and regional economies. Problematic aspects, geography, and structure of business migration to the Carpathian region of Ukraine are revealed. Risks and threats of internal and external migration of business to the region and from the region to the EU during the Russian-Ukrainian war are assessed. The measures taken to support the migration of enterprises to the Carpathian region of Ukraine and eliminate threats are offered in the projection of three regimes: hibernation (implementation of a mobilization-partnership model of doing business, maximum financial and organizational assistance to export-oriented businesses, digitalization of business processes, etc.), relocation (simplification of the procedure for obtaining budget support for relocated businesses, expansion of forms of governmental (regional, local) order for goods and services of relocated enterprises, creation of industrial clusters in the region, etc.), and evacuation (allocation of modern advanced business technologies, innovations, intellectual property and their effective use in Ukraine, development of specialized grant programs, etc.). The applied significance of the research results consists in the identification of the regional policy priorities for the development of relocated businesses and the elimination of relevant threats, namely those related to the support of industries and individual enterprises in high-tech business; industries where products directly contribute to the development of the domestic market and import substitution; integration of all regions and ensuring the integrity of the country; solving problems of depressed areas; support for cross-border cooperation. 
Russian-Ukrainian war, economic threats, business relocation, measures of support, Carpathian region 

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