Socio-Economic Problems
of the Modern Period of Ukraine

Borshchevskyy Viktor Valentynovych

Borshchevskyy Viktor Valentynovych

Doctor of Economics, Associate Professor

Leading Researcher of the Department of spatial development of the Dolishniy Institute of Regional Research of NAS of Ukraine; Head of the Department of public administration of the Ukrainian Catholic University




Babiy Hryhoriy Yaroslavovych

Zaluts'kyy Ivan Romanovych

Zasadko Valentyna Viktorivna

Kravtsiv Iryna Kostyantynivna

Kulish Inna Mykhaylivna

Matvyeyev Yevheniy Eduardovych

Prysyazhnyuk Yuriy Ivanovych


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 339.13:332.122(477); JEL R19
Borshchevskyy, V. (2020). Torhovel'na sfera v sotsial'no-ekonomichnomu rozvytku rehioniv Ukrayiny: potentsial zrostannya v umovakh detinizatsiyi [Trade sphere in the socio-economic growth of Ukrainian regions: development capacity in conditions of de-shadowing]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 142 (2) (pp. 11-16). DOI: [in Ukrainian].

Sources: 10

The influence of the shadow economy on the development of trade in the regions of Ukraine is investigated. The factors that reduce the utilization efficiency of trade capacity in the socio-economic development of Ukrainian regions are identified. The principal factors of expansion of the shadow economy in the trade sphere of Ukrainian regions are outlined. These include substantial fiscal burden on business, presence of regulatory problems, high level of markets monopolization, weak economic growth, population poverty, poor competences of local governments. The main negative consequences of shadow trade for the economy of numerous regions of Ukraine are considered, in particular the reduced innovative capacity of economic development, spread of corruption, deformation of business culture, decrease of goods quality and consumers’ safety, distortion of market information, impossibility of timely and adequate activity from public administration and local governments. Three probable effects from reducing the efficiency of utilization of the capacity of socio-economic development in Ukrainian regions because of shadowing in the trade sphere are described, namely the financial losses of state and local budgets caused by the decrease of tax payments, growing unemployment and illegal labor, and the shortage of business profits due to worsening investment climate and declining value of assets of trading companies. Proposals for prospective directions of the de-shadowing of the trade sphere are substantiated. Mechanisms for increasing the efficiency of utilization of trade capacity in the socio-economic development of Ukrainian regions are outlined. The priority means of solving existing problems include normalization of the status of an individual entrepreneur in the trade sphere; modernization of wholesale and retail trade infrastructure; creating the right conditions for the spread of e-commerce and non-cash payments for purchased goods. 
trade sphere, trade operations, wholesale trade, retail trade, shadow economy, de-shading, socio-economic potential, regions of Ukraine 

UDC 911.375:332.1; JEL R38
Borshchevskyy, V. (2019). Osoblyvosti transformatsiyi ekonomiky velykykh i serednikh mist Zakhidnoho rehionu Ukrayiny: porivnyal'nyy analiz [The peculiarities of transformation of the economy of large and medium-sized cities in the Western Region of Ukraine: a comparative analysis]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 138 (4) (pp. 19-23). DOI: [in Ukrainian].

Sources: 10

The problems of structural changes in the economy of large and medium-sized cities of the Western region of Ukraine are investigated. Special attention is paid to the spatial localization of cities, the cultural and historical traditions of functioning of their economy, the branch specialization and institutional environment of influence on the formation of business climate and economic development as the main factors of structural transformation of urban economy. To compare the peculiarities of economy transformation in the selected for the study large and medium-sized cities of the Western region of Ukraine, the dynamics of change of individual comparable indicators of their development in 2010 - 2017 were analyzed. This primarily relates to such indicators as the volume of freight transportations, the total area of new residential buildings, the retail turnover of enterprises, the capital investments, as well as the export services and its ratio to the export of goods. Based on the analysis of the relevant data, the main tendencies of structural transformation of the economy of large and medium-sized cities of the Western region of Ukraine that were selected for the study have been identified. The mentioned structural transformation are confirmed to be occurring primarily in the direction of equalization of the branch proportions of economic development of cities, irrespective of their size. At the same time, there is a tendency to move from mono-functional to poly-functional specialization of the urban economy on the basis of accelerated growth of those types of economic activity, the potential of which has not been fully realized before. The research gave the basis for the conclusion that the size of the city is not the determinative factor for the development or decline of certain types of their economic activity. Instead, spatial localization and traditions of business culture as well as the characteristic features of the evolution of the institutional environment of the city and the quality of human capital have the primary importance. 
large and medium-sized cities, transformation of economy, branch specialization, structural changes, economic development 

UDC [332.122:338.43]:352/354:[330.342.146:061.1]; JEL O18, Q15, R22, R32, H70
Borshchevskyi, V., Zalutskyi, I., & Prysyazhnyuk, Yu. (2018). Kontseptual'ni zasady ta mekhanizmy stymulyuvannya rozvytku sil's'kykh terytorial'nykh hromad v konteksti sotsial'no-ekonomichnykh priorytetiv YeS [The conceptual principles and mechanisms of improving the development of local rural communities in the system of EU socio-economic priorities]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 132 (4) (pp. 73-78). Retrieved from [in Ukrainian].

Sources: 15

The paper is devoted to the problems of rural territorial communities’ development in Ukraine in conditions of modern economic reforms, in particular in terms of priorities of decentralization policy and European integration. The nature of «rural territorial community» scientific category in its theoretical-methodological, historical and institutional-legislative senses is examined. Special attention is paid to legal controversies that create the field for emergence of institutional barriers for rural territorial communities’ development in Ukraine. The paper draws parallels between the principles of rural territorial communities’ development in the EU Member States and Ukraine, contributing to finding major factors of preventing the development of rural territorial communities’ development in our country in current conditions of conducting the administrative and territorial reform. In particular, the destructive impact of excessive decentralization in terms of making management decisions related to the forming of consolidated territorial communities is emphasized. It brings the institutional dysfunctions, in particular the institutional traps, and reduces the efficiency of the use of human and social capital in many rural settlements of Ukraine. Conceptual foundations and mechanisms of rural territorial communities’ development stimulation in the EU Member States are analyzed from the viewpoint of the perspective of their adaptation in Ukraine. The priority of principles of subsidiary, balanced development and multifunctional rural economy is emphasized in the context of enhancing the exploitation efficiency of rural human, financial and natural resources and improvement of the level of life of rural residents and social and economic development of rural territorial communities. The decisive role of institutional, financial, social and informational mechanisms in stimulation of rural territorial communities’ development and adaptation of EU conceptual foundations and social and economic priorities is revealed. On this basis the recommendations for state authorities and local governments of Ukraine on the use of EU experience in rural territorial communities’ development in current Ukrainian realities are suggested. In particular, we recommend securing the transfer to local governments of the sufficient amount of administrative and management liabilities and financial resources in the course of authorities’ decentralization policy, providing the improvement of financial, institutional, transport and informational infrastructure of rural territories’ development and guaranteeing the sustainability of rural development policy. 
rural territorial communities, European integration, spatial development, EU regional policy, decentralization of authorities 

UDC [332.122:338.43]:[338.242:35]:[330.34:504]; JEL J43, O18, Q14, R11, R58
Borschevskyy, V., & Zalutskyy, I. (2018). Aktualizatsiya lokal'nykh mekhanizmiv modernizatsiyi sil's'kykh terytoriy v umovakh detsentralizatsiyi [Updating of local mechanisms of rural areas modernization in terms of decentralization]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 129 (1) (pp. 91-97). Retrieved from [in Ukrainian].

Sources: 13

The reasons and consequences of stagnation of rural territories’ social and economic development improvement in modern conditions are outlined. Systemic flaws regarding the maintenance of rural territories’ spatial planning are found and long-lasting tendency of territorial factor overlooking in their development is emphasized. The priority of taking into account the territorial factor for maintenance of rural territories’ balanced development and sufficiency of combined territorial communities is explained. Implementation of integrated combination of territorial, sectoral and managemental components of state regional policy in the sphere of rural territories at the level of administrative region is suggested. Complex medium term program of rural territories’ modernization in the administrative region is defined as the innovative instrument of rural territories’ management able to maintain implementation of the components of state regional policy on rural development at the level of administrative region with participation and in the interests of territorial communities. The basics of forming, contents and implementation mechanism of the program are presented. The program is directed at solution of the following major tasks: maintenance of differentiated approach to organizational – legal and social-economic regulation of rural territories’ complex development on the basis of application of spatial planning instruments; activation of personal participation and mobilization of rural communities’ resources for solution of local problems and maintenance of development perspectives; growth of rural population employment, strengthening of their motivation for entrepreneurship activity development in rural areas as one of the major conditions of population living standards’ improvement; creation of conditions for the development of non-agricultural types of economic activity on the basis of their local stimulation and increase of job places in villages, promotion of International Technical Assistance attraction for that end; assistance to competitive ability of local producers under the functioning of EU-Ukraine Association Agreement; maintenance of knowledge communication on European practices of rural development in order to improve social and economic wellbeing of rural territorial communities through conducting of educational and information activities; creation of ecologically sound conditions for living activity, preserving of environment and rational management of natural resources. The mechanism and advantages of priority introduction of planning and spatial justification of complex rural development along with implementation of the suggested program are outlined. 
rural territory, modernization of rural territories, modernization mechanisms, decentralization 


Vorotin, V. Ye., Zhalilo, Ya. A., Bila, S. O., & et al. (2010). Derzhavne upravlinnya rehional’nym rozvytkom Ukrayiny [State governance by regional development of Ukraine]. Kyiv. [in Ukrainian]. {sep2017.06.029.002}

Borshchevskyy, V. V., & Vasyltsiv, T. H. (Eds.) (2014). Stratehichni priorytety ta mekhanizmy innovatsiynoho rozvytku sil’s’kykh terytoriy Zakhidnoho rehionu Ukrayiny [Strategic priorities and mechanisms of innovative development of rural areas of the Western region of Ukraine]. Lviv: Avers. [in Ukrainian]. {sep2018.04.079.013}

Borshchevskyy, V. V. (2011). Suchasni problemy rozvytku sil's'kykh terytoriy Ukrayiny ta kontseptual'ni pidkhody do yikh vyrishennya [Modern problems of development of Ukrainian rural areas and conceptual approaches to their solution]. In Sotsial’no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 92(6). Suchasni problemy rozvytku sil's'kykh terytoriy [Modern problems of rural areas development] (pp. 3-9). [in Ukrainian]. {sep2018.05.098.003}

Borshchevskyy, V. (2022, Apr 04). «Yevropeys’kyy Kytay»: yakoyu mozhe staty ekonomika Ukrayiny pislya viyny [‘European China’: what can become the economy of Ukraine after the war]. Espreso: Website. Retrieved from [in Ukrainian]. {sep2022.02.030.001}

Borshchevskyy, V. V. (Ed.) (2012). Rozvytok sil’s’kykh terytoriy v systemi yevrointehratsiynykh priorytetiv Ukrayiny [Development of rural areas in the system of European integration priorities of Ukraine]. Lviv: Institute of Regional Studies of the National Academy of Sciences of Ukraine. (Series: «Problems of regional development»). [in Ukrainian]. {sep2022.06.014.001}

Веб-майстер П. Попадюк