CREATION OF TERRITORIES OF PRIORITY DEVELOPMENT IN DONETSK AND LUHANSK REGIONS AS A WAY TO SOLVING SOCIO-ECONOMIC PROBLEMS

Section Economics: Socio-Economic Problems of Regional Development

Abstract

The article indicates that the political and economic instability that resulted from the armed conflict and hostilities in eastern Ukraine led to the fact that Donetsk and Luhansk oblasts, which were previously leaders among the regions of Ukraine in terms of socio-economic development, have become outsiders. The analysis of the socio-economic situation in the territories of Donetsk and Luhansk regions is carried out, on the basis of which the range of existing problems of these regions is highlighted, namely: loss of most of the industrial potential; drop in industrial production; reduction in gross product, exports; lack of jobs; backwardness, depression of the regions; reducing their investment attractiveness. It is noted that under such conditions, the priority task of the Government of Ukraine becomes search for effective legal and economic mechanisms for post-crisis recovery and development of these regions. It is argued that such a mechanism can be the provision of the status of priority development territories to Donetsk and Lugansk regions and introduction of a special regime for investment activities. This proposal will significantly contribute to the attraction of investments, the general recovery of the region’s economy and further development. The experience of these studies can also be applied in the restoration of territories where hostilities took place and the development of which requires additional stimulation in development.

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