Basic trends of postwar transformation of Ukraine’s economy: industry 4.0, budgetary decentralization, regional energy management

Abstract

Purpose. The aim of the article is to analyze the theoretical-and-methodological and organizational-and-economic principles of modern development of Ukraine, burdened by military action, and provide practical recommendations for basic trends in sectoral development of postwar national economy, taking into account financial, industrial and organizational factors.

Results. The article contains the results of an in-depth analysis of the preconditions and factors of renovation transformations of the Ukrainian economy. Econometric research methods, in particular, simulative modeling and cluster analysis, proved that for Ukraine in the postwar period, the most effective way to develop a destroyed economy will be the development of innovation-active regions and industries, which in turn will be drivers of related territories and industries, while providing a synergistic effect. Sectoral development should be based on the principles of Industry 4.0 and budget decentralization. A comparative analysis of the identity of the administrative system of Ukraine and Poland allowed us to offer our own vision of building a national system of budget and tax distribution with the introduction of fundamentally new institutions and mechanisms. Based on current global trends regarding the Green Deal, the transition to a low-carbon economy and decarbonization, as well as, taking into account the actual integration of Ukrainian and European energy systems, formulated directions for reforming the industry in decentralization reform. The influence of state regulation on the process of regional decarbonization is determined, based on the author’s analysis of the advantages and disadvantages of decarbonization models, the need for an integrated approach and the use of hybrid models in the postwar economic recovery. Applied models of decarbonisation of energy-intensive sectors are demonstrated, the model of structure of generation and consumption at lower levels according to the NUTS classification (Nomenclature of territorial units for statistics) is proposed for use, it has a double factor of energy efficiency. In order to legally regulate the regulatory framework and institutional environment, increase the effectiveness of energy efficiency policies of communities and ensure energy security of the state, a number of proposals for legislative initiatives.

Scientific novelty. The scientific novelty of the obtained results is the study of theoretical and methodological foundations of postwar renovation of Ukraine’s economy based on sectoral development of innovation-active regions and industries, the principles of Industry 4.0, modernized budget decentralization. A mathematically formalized conceptual model of electricity generation and consumption at the local level is proposed. A comparative analysis of decarbonisation models conducted in the article made it possible to develop a hybrid integrated approach that would combine existing models and have a national orientation, taking into account the force majeure circumstances of the recovery of Ukraine’s war-torn economy. The dualistic nature of decentralization at the local level has justified the mechanism for financing regional energy management activities.

Practical value. Theoretical and methodological achievements of the study became the basis for the formalization of tools and measures of transformation of Ukraine’s economy. The sectoral results of the research were used by the authorities and local self-government bodies at the regional (Regional Entrepreneurship Support Funds) and local levels (Mariupol District Council). The obtained practical results on sectoral development and budget decentralization can be used by central and regional executive bodies, sectoral enterprises in the formation of directions and mechanisms of postwar transformation of Ukraine’s economy.