Competitiveness of Regions in Ukraine's Recovery Policy

Abstract

The article reviews the impact of Russian armed aggression against Ukraine on the competitiveness of its regions. It substantiates the need to develop a new methodology for assessing the competitiveness of territories, taking into account indicators of basic and accelerated recovery based on sustainable development and the principles of Industry 4.0 and 5.0. The author proposes a methodology for calculating the integral indicator of territorial competitiveness (ITC), based on a system of synthetic indices of economic, social and demographic development, accessibility of public services and environmental safety. An algorithm for integral assessment and the results of the ranking of regions of Ukraine for 2021 are presented, which showed significant regional differentiation – the basis for asynchronous state regional recovery policy. The article also proposes a methodology for calculating the IRCT adapted to the conditions of martial law, which takes into account specific indicators of economic and social recovery of regions. A comparative analysis of the results for 2021 and 2023 was carried out, which showed that the Dnipropetrovsk region retained its leading position and that the Ternopil, Volyn and Poltava regions improved their indicators. At the same time, a significant decline in competitiveness was noted in the frontline regions due to increased social tension and destruction of infrastructure. It was concluded that a differentiated approach to recovery policy and the attraction of financial resources is necessary, taking into account the level of competitiveness of regions – rear, frontline, de-occupied and relocated as a result of temporary occupation. Prospects for further research include the development of mechanisms to enhance the investment attractiveness of leading regions and the improvement of state and local models of regional development management in the post-war period.