CONCEPTUAL APPROACH TO THE DEVELOPMENT OF THE ECONOMY OF EASTERN UKRAINE ON AN INNOVATIVE BASIS: TO THE DISCUSSION

Wellcome to discussion

Abstract

The article presents a revised draft Concept of economic development of Donetsk and Luhansk regions, on the territory of which a system of stimulating the intensification of economic processes will be introduced, which can be further implemented in other regions of Ukraine. The Concept of economic development of Donetsk and Luhansk regions was proposed for discussion in October 2020 by the Ministry of Temporarily Occupied Territories together with interested central and local executive bodies with the participation of local governments. The Concept envisages the creation of three types of priority development territories (territories of communities adjacent to the demarcation line, throughout Donetsk and Luhansk regions, on the territory of separate industrial and recreational clusters, including innovation and industrial parks, with a special regime of innovation and investment activities). Five groups of measures for the implementation of the Concept of economic development of Donetsk and Luhansk regions have been identified: improvement of regulatory policy and introduction of authentic institutional and financial instruments; industrialization of the real sector of the economy and its innovative development; development of critical infrastructure and logistics; formation of a balanced regional labor market; formation of information and communication space of Luhansk and Donetsk regions. Based on the results of the Concept implementation, it is planned to develop an appropriate Strategy and action plan. This set of regulations will allow to form a territory of priority development with a new structure of the economy and to modernize industrial production on an innovative basis, increase the share of innovative enterprises in the real sector, increase exports and the share of highly processed products, overcome logistical constraints and increase a transit region potential, increase revenues to the local budgets of the amalgamated territorial communities of Donetsk and Luhansk regions, create jobs, increase incomes, leave the youth of the regions and involve them in solving problems of economic development of Donetsk and Luhansk regions.

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