The article discusses the problem of strengthening the resilience of the regional economy in conditions of endogenization of regional development. The content and methodological basis of the international practice of strengthening the resilience of national and local systems are outlined. The article reveals that the modern methodology is determined by a preventive analysis of the resilience system through the identification and mutual influence of risks on specific types of assets in the context of a gradual balanced strengthening of the system's ability to absorb, adapt, or transform it in conditions of probable, inevitable, or current shocks. The general principles of strengthening resilience include preparedness, responsiveness, connectivity, learning and innovation, self-organization, diversity and redundancy, inclusion, social cohesion, and thresholds. The article defines the main stages of the development and implementation of the system-forming concept of economic resilience at the level of regions, territorial communities, and functional types of territories as a fundamental legal act of dynamic-preventive sectoral-functional forecasting and planning of balanced strengthening of the resilience of relevant objects of state regional policy. The authors prove that dynamic recovery and resilient strengthening of the regional economy should be based on the resilience of the national legislation adapted to the international practice of strengthening the resilience of socio-economic systems. Conceptual directions for the formation of the resilience of the regional economy in conditions of endogenization of regional development are substantiated, in particular: production of environmentally safe and high-quality agricultural products, their export-oriented processing; post-war restoration, modernization, and development of critical, civil, transport-logistics, energy, industrial, tourism-logistics infrastructure in the region; ensuring infrastructure connectivity with the EU; digital transformation and digital development in the region and territorial communities; innovative transformation of the local economy based on smart specialization; implementation of "green economy" principles and adaptation of regional development policy instruments to the goals of the "European Green Course"; support of projects and programs of interregional interaction of territorial communities on the basis of the development of civil society institutions, social initiatives aimed at creating conditions for small and medium-sized enterprises to implement the principles of circular ecologically safe production; investing in research activities; institutional adaptation of mechanisms of international and regional cooperation in the field of environmental protection, in particular within the framework of environmental protection activities of governmental and non-governmental international organizations, for protection, analysis, and control of the state of the environment and natural territories and objects subject to special protection, as well as recording the facts of environmental offenses and crimes; ensuring systemic nature, balance, consistency, and publicity in the field of spatial development.
economy of regions, concept of resilience, endogenization of regional development
The article examines the implementation of the Organization for Economic Cooperation and Development (OECD) Recommendation on Effective Public Investment Across Levels of Government in Ukraine. The article covers the nature and peculiarities of the OECD Recommendation and analyzes the process of its implementation by Ukraine. The purpose of the Recommendation on Effective Public Investment Across Levels of Government is to help governments at all levels assess the strengths and weaknesses of their public investment capacity using a country-wide approach and identify priorities for improvement. Given the downward trend in public investment, especially in times of crisis, it is very important for governments at all levels to be efficient, i.e., to be able to deliver better results with less costs and to spend more wisely. The problem is much broader than just funding investment, as it concerns the most efficient use of investment funds, for which different levels of government may lack appropriate management tools even if investment funding is available. The scope of the Organization for Economic Cooperation and Development and the list of legal instruments it is developing are described. The article outlines three systematic challenges to multi-level public investment management that impede the achievement of the best outcomes: coordination challenges, capacity challenges, and framework challenges. It notes that to address these issues, the OECD has developed a Recommendation on Effective Public Investment Across Levels of Government, which takes into account the above challenges and is built on three key pillars: coordination of public investment at different levels of government and policy; strengthening public investment capacity and promoting policy learning at all levels of government; and ensuring an appropriate framework for public investment at all levels of government. The framework covers twelve principles, which in turn include specific steps for implementing the OECD Recommendation in practice. The principles set out in the Recommendation are applicable to national, regional, and local governments and address aspects that are relevant to other stakeholders in public investment. The implementation of the OECD Recommendation on Effective Public Investment Across Levels of Government will allow Ukraine to benefit from the experience of successful OECD countries in this area, and the increase in the efficiency of public investment will signal to foreign investors that investing in Ukraine is a viable option. The article also examines the steps taken by Ukraine on the way to establishing and strengthening cooperation with the Organization for Economic Cooperation and Development, in particular in terms of implementing the Recommendation, and outlines the main problematic issues on this path. Ukraine’s cooperation with the Organization for Economic Cooperation and Development is extremely important for ensuring its economic well-being, both at the national, regional, and local levels.
investment, public investment, investing, efficiency, post-war recovery
The article is devoted to the analysis of factors influencing innovative development and inventive activity in EU member states. It clarifies the changes in Ukraine’s positions in international rankings including the Global Innovation Index, and the Global Startup Ecosystem Index. The authors havehighlighted the main problems of creating and using inventions in Ukraine and outlined the modern model of commercialization of scientific and technical developments that was formed in the world market. A set of measures applied to increase the level of innovativeness in the European practice is given. To identify the main factors influencing the inventive activity of the EU member states and to assess the nature of such influence, the apparatus of correlation-regression analysis was used. Based on the data of the Statistical Bureau of the European Union for 2009-2021, three regression models of the influence of independent variables on the indicator of the number of patent applications to the European Patent Office (per one million inhabitants) were built. It is substantiated that the priority for Ukraine in the conditions of post-war recovery is taking into account the best standards of European countries, implementing several measures to support scientific and inventive activities, and using intellectual property objects in a practical way.
innovative activity, inventive activity, objects of intellectual property, inventions, commercialization of objects of intellectual property
Combating the financing of terrorism and armed conflicts is a top priority in Ukraine to ensure its economic security. The institutional mechanism for the development and implementation of the policy of combating the financing of terrorism and armed conflicts covers a range of entities and the relations between them. In Ukraine, this institutional mechanism is at the stage of its creation and needs to be adjusted under the influence of new threats. The purpose of the article is to determine directions for improving the institutional framework of economic security of the state with regard to combating the financing of terrorism and armed conflicts. The methods of theoretical generalization, systematization, and comparative analysis were used in the process of research. The informational basis of the research includes the works of domestic researchers addressing the indicated problems. The article’s objective analysis of the areas of activity and competencies of the entities involved in the fight against terrorism, including its funding, proves the neglect of new changes and trends in terrorist threats. Taking into account the best European practices, the need to create a separate entity with a special status and powers, which will perform professional analytical and communication functions, as well as monitor threats directly related to terrorist funding, is emphasized. Such an entity can be presented in the form of a special body - the Agency for Combating Digital Threats and Terrorism. The existing Anti-Terrorist Center under the Security Service of Ukraine concentrates its activities and coordinates the work between the entities involved in the fight against terrorism. The proposed agency will monitor information on the Internet and work with the community in order to identify specific signs of terrorist activity, in particular regarding its funding. The use of modern identification and authentication mechanisms for transactions on the Internet will make it possible to identify users and create their digital footprints. With the help of big data analysis mechanisms, the Agency for Combating Digital Threats and Terrorism can create digital profiles of users and use them for predicate analysis that will prevent potentially criminal activities. The proposed direction for the improvement of the institutional mechanism of the policy of combating the financing of terrorism and armed conflicts with the use of new technologies and objects (including in the field of activities on the Internet and processing of cryptocurrency assets), which are produced by modern digital systems, should be implemented taking into account the requirements of international institutions in this sphere.
economic security, terrorism, terrorist financing, digital threats, cryptocurrency
Russia's full-scale military aggression has caused enormous damage to the industrial capacity of Ukraine, as the hostilities have mainly affected those regions where the manufacturing sector is most developed. The purpose of the article is to identify structural transformations in the industrial sector of Ukraine's economy caused by Russian armed aggression. Since 2014, the output structure of the Ukrainian processing industry has undergone drastic negative changes: the share of low-tech industries has increased, while the share of medium- and high-tech industries has decreased. The efficiency of the Ukrainian processing industry is significantly lower than in the EU countries: the share of gross value added in output in Ukraine in 2020 was 20%, while in Poland it was 27% and in Germany 35%. One of the key problems of the functioning of the industrial sector and the national economy, in general, is the high import dependence of medium- and high-tech industries (especially the machine-building industry), the share of imports in costs or intermediate consumption of which in 2020 averaged over 48%. The war affected the dynamics of industrial production in Ukraine - during 2022, the volume of sold industrial products decreased by 21.6%, in particular, the products of processing industries - by 31.5%. The largest drop (by 58%) was recorded in metallurgical production. At the same time, the volume of industrial products sold abroad decreased by 44.6%. The export orientation of the industrial sector of the economy, i.e. the share of products sold outside of Ukraine, decreased by 8.4 percentage points (or by 29.6%) over the period. The post-war recovery of industrial capacity should be based on innovation and long-term development prospects. Accordingly, the central place in the structure of the industrial sector of the national economy should be occupied by mechanical engineering and chemical and pharmaceutical industries. This involves the creation of enterprises of the highest level in terms of technologies, organization of production, quality of management, etc. It is also necessary to move to new forms of organization and location of enterprises, in particular, the formation of industrial clusters that will ensure competitive costs of products.
industry, production, efficiency, import dependence, structural transformation, development
The peculiarities of the manifestation of the food crisis in Ukraine in times of war are investigated and the foreign experience and the experience of international organizations and political institutions in overcoming it are analyzed. The analysis is based on the concept of food security developed by the UN, which defines it as sustainable physical and economic access to sufficient, safe, and nutritious food. It also uses the comprehensive approach with four pillars of food security: food availability, access, utilization, and stability. In the context of the study of food security in Ukraine, two areas for analysis are identified: a decrease in the availability of food for the population and a violation of nutritional stability; a decrease in the economic access of the population to food and essential goods. The article focuses on the issue of economic access to food for vulnerable groups of the population (including internally displaced persons and people living near the demarcation line, and in the occupied and liberated territories), compares the incomes of households of internally displaced persons in Ukraine at different moments since the beginning of the full-scale invasion of russia in February 2022, and presents the results of the assessment of the population's food needs in Ukraine. The prevalence of food insecurity and the ongoing fight against it at the international level have made it possible to develop clear mechanisms to overcome it. Based on numerous studies and taking into account the experience of countries where the food crisis was caused by natural disasters or the impact of climate factors and states whose territories became the arena of military conflicts, in the context of finding ways to overcome the food crisis, the author examines the comprehensive approach of the Food and Agriculture Organization of the United Nations to achieving food security in crisis conditions, which combines two areas: Sustainable development of rural areas and stimulation of agriculture; development and implementation of targeted programs to provide direct access to food for vulnerable groups. The areas of the comprehensive approach of the Food and Agriculture Organization of the United Nations are defined as complementary and aimed at reinforcing each other's positive results. Moreover, the article analyzes the European Union's approach to rural development in the Common Agricultural Policy, which provides for the definition of two equally important directions: support and stimulation of the agricultural sector; strengthening the social, environmental, and economic sustainability of rural areas in the context of overcoming the risks inherent in this type of territory.
food security, war, food availability, economic access to food, rural areas
The article analyzes the main models and trends in the development of Industry 4.0 of the top three global exporters, namely China, Germany, and the USA. It examines the German High-Tech Strategy, which became the first national concept to unite the main stakeholders in the field of innovation and technology around the common goal of development and expansion of the latest technologies, as well as the strategic initiative for the development of Germany’s digital transformation, Industry 4.0. The author reveals that rethinking the linear assembly line of traditional industrial manufacturing is the fundamental goal for German manufacturers on their way to transition to the so-called “smart manufacturing”. Peculiarities of mass education and implementation of Industry 4.0 practices and technologies in various branches of industry in China are studied. The article discusses the strategic initiative China Manufacturing 2025 aimed at strengthening the manufacturing capacity of the Chinese economy and other initiatives such as Internet+, Made in China 2025, and China Standards 2035 aimed at promoting China’s digital economy and standardizing advanced technologies, including artificial intelligence (AI), cloud computing, Internet of Things (IoT), big data, etc. The implementation of Industry 4.0 in the USA, based on the prioritization of the strategic importance of industrial digitalization and a change in the paradigm of work of organizations, is outlined. At the same time, Industry 4.0 in the USA offers many new opportunities and advantages for enterprises that actively implement the achievements of Industry 4.0. Industry 4.0 technology is crucial for overcoming supply chain disruptions caused by pandemics and geopolitical crises. Based on the experience of Germany, China, and the USA, recommendations for the implementation of Industry 4.0 in Ukraine are developed, in particular, the adoption of a national strategy for Industry 4.0, the implementation of an innovative policy for the development of science and technology and training of people and manufacturers, the creation of a strong diversified industrial base with comprehensive implementation of the latest Industry 4.0 technologies in production. It is expedient to determine what investments in physical infrastructure and human capacity are necessary, including training in new digital skills; key industries that need development support; the legal framework that needs to be changed to create mechanisms for effective implementation of the latest technologies by manufacturers. A network of Industry 4.0 expertise centers in Ukraine should be developed, technical standards should be harmonized, program documents regarding the digital transformation of certain industries should be developed and adopted, etc. The accumulated experience should be recorded in detail in relevant documents for the successful planning of the national strategy, as well as ensuring heredity in its implementation.
industrial revolution, Industry 4.0, smart manufacturing, automated production line, digital transformation, information technology (IT), digital industry
In the context of the modern Russian-Ukrainian war, the issue of shadow employment is closely related to preserving the Ukrainian population of working age. By implementing social security measures, we gain the opportunity to retain the Ukrainian population, increase the labor potential, and accumulate human capital as an important national resource. In this article, the aspects of the impact of shadow employment on the economic sector in Ukraine are explored, as well as the connection of this social phenomenon with personal social security is considered. The terminology of the study regarding shadow employment and social security is clarified. It is argued that shadow employment is a component of the shadow economy sector. It is shown that in conditions of a state of war, shadow employment makes sense for existence, as it mitigates and reduces the levels of potential unemployment. The purpose of the research is to generalize the theoretical aspects of shadow employment, establish a logical connection between shadow employment and social security, and indicate possible ways to reduce the levels of shadow employment in the context of ensuring social security. The conclusions and recommendations of the authors are based on the results of a project supported by the International Center for Rebirth, a public organization «Network of Legal Development, «which aimed to objectively study the impact of the COVID-19 pandemic on the legal needs and problems in the informal labor sector in Ukraine. Emphasis is placed on a range of practical measures that government authorities should take to improve the situation in the field of shadow employment and thus ensure a higher level of social security for both workers and employers. Considering the observance and provision of social security at the state level for all workers, especially those engaged in shadow activities, as a mandatory norm, state authorities intend to implement a series of practical measures aimed at improving the situation in this area, particularly regarding shadow employment. It is summarized that social security should be represented by a certain system of organizational, economic, managerial, and legal measures, the purpose of which is to prevent social threats to security at all levels: national, regional, specific enterprise, organization, and individual. Enhancing the level of social security in the realm of shadow employment will allow the development of mechanisms and organic supplementation of an effective state policy for ensuring the social security of citizens.
shadow employment, informal employment, shadow economy, social security
УКР
