Disparity as an instrument of regional policy in Ukraine

Authors: Olga Shevchenko*, Nat Inst Strategic Studies
Topics: Regional Geography, Economic Geography, Urban and Regional Planning
Keywords: regional policy, regional disparity, investments
Session Type: Paper
Day: 4/14/2018
Start / End Time: 8:00 AM / 9:40 AM
Room: Muses, Sheraton, 8th Floor
Presentation File: No File Uploaded


Regional disparities have been appearing in Ukraine from pre-crisis period: economically strong regions have lower indices of development and all weak region have the equal indices. The government realizes some ideas about regional disparities’, but they all are aimed at the regulation of results, and can be implemented only for social sphere. Now Ukraine is undergoing decentralization and local communities undergo integration which could result in better indices of development. Regulation of internal economic potential of regions has not been applied. The mainstream of regional policy in Ukraine is to learn how to operate with disparities, how to make them mild and manageable and how to reach effective use of this disparities in accordance with norms of profit and labor force. However, the alignment policy in Ukraine is included into other policies. Weak efforts of the executive power in dimensioning the regional disparities could be seen, because only some “point development projects” (road construction, industrial clusters) can be considered as real regulative instruments to improve economic situation in regions. They can give the necessary impulse for increasing the economic indices in some regions and this can improve the indicators of development in all regions. In the meantime, really effective instruments of regulation of regional development play secondary role: the State fund for regional development, investment grants, clusters, state contracts, interregional cooperation. For the best regulation of regional disparities all of these instruments have to be taken into account during the working out of the regional policy.

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