Strategies for regional disproportion management to restore economic security in the Ukrainian agricultural sector
The study aimed to identify key threats to the Ukrainian agricultural sector in the context of the war and to develop proposals for overcoming them through effective governance, government support and infrastructure investment. The study was conducted based on an analysis of socio-economic indicators of different regions of Ukraine with a focus on the agricultural sector. The data collection covered the period from 2022 to 2023 and included indicators of unemployment, investment activity, agricultural sector productivity, and the effectiveness of government support programmes. A comparative analysis was conducted between the regions affected by the hostilities and more stable regions, and the impact of infrastructure investment on economic stability was also investigated. The study determined that the Ukrainian agricultural sector has been severely affected by the hostilities, leading to increased unemployment, reduced investment and widening economic gaps between regions. The highest losses were observed in regions bordering the conflict zone, such as Kharkiv and Dnipro regions. In these regions, investment activity has completely stopped, which has significantly reduced the productivity of the agricultural sector. At the same time, regions with more developed infrastructure performed better due to access to markets and financing. The study also demonstrated that state support had an uneven impact on different regions, with the most affected regions receiving insufficient support. The study results highlighted the importance of infrastructure investment and comprehensive state support to overcome regional disparities in Ukraine’s agricultural sector and stabilise the economic situation in the face of the ongoing conflict
[1] Aid for Trade. (2024). Aid for trade priorities. Retrieved from http://surl.li/xijens.
[2] Astarta. (2020). Sustainability report. Retrieved from http://surl.li/oyvily.
[3] Biyashev, B., Drobitko, A., Markova, N., Bondar, A., & Pismenniy, O. (2024). Chemical analysis of the state of Ukrainian soils in the combat zone. International Journal of Environmental Studies, 81(1), 199-207. doi: 10.1080/00207233.2023.2271754.
[4] Davydova, Yu. (2023). 28.6 thousand unemployed registered in Kharkiv region: What specialities are in demand. Retrieved from http://surl.li/lgxgjo.
[5] De La Llave, A.N., Monroy, H.C., & Castrejón, Y.D.P. (2022). Analysis of the relationship between the establishment of Community Based-Tourism and multidimensional poverty reduction in rural households. Journal of Tourism Analysis, 29(2), 1-40. doi: 10.53596/jta.v29i2.417.
[6] Dovgal, O., Potryvaieva, N., Bilichenko, O., & Kuzoma, V. (2024). Circular economy development in the context of war: Global challenges. Interdisciplinary Journal of Applied Science, 8(13). doi: 10.18226/25253824.v8.n13.04.
[7] Fairy-tale pork: Serhiy Kasyanov explains why piglets have become a “gold mine” for Ukrainian farmers. (2023). Retrieved from https://www.epravda.com.ua/press/2023/10/24/705796/.
[8] Healthcare system development strategy until 2030. (2022). Retrieved from http://surl.li/qcefyu.
[9] Hnatkovych, O., Yasinovska, I., Smolinska, S., & Smolinskyy, V. (2023). Modern approaches to Ukraine’s regional development management. Regional Science Policy & Practice, 15(1), 108-122. doi: 10.1111/rsp3.12641.
[10] Huk, K., & Zeynalov, A. (2022). Regional disparities and economic growth in Ukraine. doi: 10.48550/arXiv.2211.05666.
[11] Ivanov, S., Yudina, S., Lysa, O., & Drahun, A. (2020). Classification and assessment of losses from the armed conflict in Donbas and annexation of Crimea. Economic Annals-XXI, 184(7-8), 107-123. doi: 10.21003/EA.V184-10.
[12] Kochnev, A., Koshmel, M., Landesman, M., Maucorps, A., Moshammer, B., & Weiss, S. (2024). Ukraine’s economic reconstruction: Addressing territorial inequalities, consolidating regional policy and reaping the benefits of EU integration. Vienne: Bertelsmann Stiftung. doi: 10.11586/2023088.
[13] Koshkalda, I., Utenkova, K., Herman, L., Vasilieva, L., & Atamas, O. (2023). Management of economic security of the Ukraine’s agricultural sector in the conditions of globalization. International Journal of Industrial Engineering & Production Research, 33(1), 105-114. doi: 10.22068/ijiepr.33.1.11.
[14] Minfin. (2024a). Gross domestic product (GDP) in Ukraine. Retrieved from http://surl.li/qjplre.
[15] Minfin. (2024b). Number of registered unemployed. Retrieved from https://index.minfin.com.ua/ua/labour/ unemploy/register/2023/.
[16] Minfin. (2024c). Inflation index in Ukraine. Retrieved from https://index.minfin.com.ua/ua/economy/index/ inflation/.
[17] Ministry of Economy of Ukraine. (2023). In 2023, Ukraine developed an infrastructure for war risk insurance, – Yulia Svyrydenko summarises the year in investment attraction. Retrieved from http://surl.li/dborpb.
[18] Ministry of Economy of Ukraine. (2024a). Actual natural gas sales price as of August 2024. Retrieved from http://surl. li/xwrark.
[19] Ministry of Economy of Ukraine. (2024b). Processing companies that received a development grant from the state paid over UAH 1 billion in taxes in 2023. Retrieved from http://surl.li/yqccpn.
[20] Miyamoto, K., & Chiofalo, E. (2017). Development co-operation for private sector development: Analytical framework and measuring official development finance. Paris: OECD. doi: 10.1787/22220518.
[21] Mohilevskyi, L., Fursa, V., Sievidova, I., Komziuk, M., Khloponina-Gnatenko, O., & Pidkopai, D. (2021). Ensuring the economic security of Ukraine in the aspect of the association agreement between the EU. European Journal of Sustainable Development, 10(2), 171-186. doi: 10.14207/ejsd.2021.v10n2p171.
[22] National Institute for Strategic Studies. (2023). Current challenges and threats to Ukraine’s economic security under martial law. Retrieved from https://niss.gov.ua/publikatsiyi/analitychni-dopovidi/aktualni-vyklyky-ta-zahrozyekonomichniy-bezpetsi-ukrayiny-v.
[23] New support programme makes precision farming even more affordable for farmers. (2024). Retrieved from http:// surl.li/qainbz.
[24] Organisation for Economic Co-operation and Development. (2016). Adopting a Territorial Approach to Food Security and Nutrition Policy. Paris: OECD. doi: 10.1787/9789264257108-en.
[25] Panasyuk, I. (2021). A co-operative within a co-operative: How the Fine Grads united Ternopil region’s farmers. Retrieved from https://agroportal.ua/publishing/lichnyi-vzglyad/kooperativ-v-kooperative-kak-faini-gazdiobedinili-khozyaistvennikov-ternopolshchiny.
[26] Poltavazernoproduct develops irrigation in Poltava region: Successes and challenges. (2024). Retrieved from https://propozitsiya.com/ua/poltavazernoprodukt-rozvivaie-zroshennya-na-poltavshchini-uspihi-ta-vikliki.
[27] Poltorak, A., Khrystenko, O., Sukhorukova, A., Moroz, T., & Sharin, O. (2022). Development of an integrated approach to assessing the impact of innovative development on the level of financial security of households. Eastern-European Journal of Enterprise Technologies, 1(13(115)), 103-112. doi: 10.15587/1729-4061.2022.253062.
[28] Poltorak, A.S., Tyshchenko, S.I., Khrystenko, O.A., Ribachuk, V.P., Kuzoma, V.V., & Stamat, V.M. (2023). Theoretical and praxeological approaches to monitoring the state of financial security of Ukraine. In V. Krasnobayev (Ed.), Economic and cyber security (pp. 123-159). Kharkiv: PC Technology Center. doi: 10.15587/978-617-7319-98-5.ch5.
[29] Radchenko, O., Tkach, L., & Dendebera, O. (2023). Financing innovations in the agricultural industry as a component of the digital development of Ukraine’s economy. Scientific Bulletin of Mukachevo State University. Series “Economics”, 10(4), 54-65. doi: 10.52566/msu-econ4.2023.54.
[30] Román, A.A. (2024). Ukrainian agriculture: From Russian invasion to EU integration. Retrieved from https://www. europarl.europa.eu/RegData/etudes/BRIE/2024/760432/EPRS_BRI(2024)760432_EN.pdf.
[31] Rupp, D. (2023). Ukraine – Economic recovery context analysis and strategy design. Retrieved from https://fscluster. org/sites/default/files/documents/jeru_ukraine_economic_recovery_research.pdf.
[32] Shahini, E., Skuraj, E., Sallaku, F., & Shahini, S. (2022). Smart fertilizers as a solution for the biodiversity and food security during the war in Ukraine. Scientific Horizons, 25(6), 129-137. doi: 10.48077/scihor.25(6).2022.129-137.
[33] Shebanin, V., Kormyshkin, Iu., Reshetilov, G., Allakhverdiyeva, I., & Umanska, V. (2023). Sustainable development of the socio-economic security system of the region based on closed cycle technologies. Rivista di Studi sulla Sostenibilita, 2, 271-288. doi: 10.3280/riss2022-002016.
[34] Shevchenko, O., Varnalii, Z., Kharlamova, H., & Kuzmychuk, N. (2023). Models for assessing crisis dynamics in disparities of Ukraine’s regional economy to ensure the economic security of regions. Journal of International Studies, 16(1), 177-190. doi: 10.14254/2071-8330.2023/16-1/12.
[35] Shiferaw, B., Tesfaye, K., Kassie, M., Abate, T., Prasanna, B.M., & Menkir, A. (2014). Managing vulnerability to drought and enhancing livelihood resilience in sub-Saharan Africa: Technological, institutional and policy options. Weather and Climate Extremes, 3, 67-79. doi: 10.1016/j.wace.2014.04.004.
[36] State Statistics Service of Ukraine. (n.d.). National accounts (GDP). Retrieved from https://www.ukrstat.gov.ua/imf/ arhiv/nr/nr_post_u.htm.
[37] Storonyanska, I., Nowakowska, A., Benovska, L., & Dub, A. (2023). Imbalances and risks of the regional development of Ukraine’s economy under conditions of instability. Agricultural and Resource Economics: International Scientific E-Journal, 30(2), 45-67. doi: 10.51599/are.2022.08.03.05.
[38] Svilenok, E. (2024). Average salary in Kharkiv in 2024. Retrieved from https://112.ua/srednaa-zarplata-v-harkove2024-god-39884.
[39] Tupalska, O. (2024). How the average salary in Kyiv has changed over 10 years – the numbers will shock you. Retrieved from http://surl.li/xgdxvq.
[40] Ukraine Plan 2024-2027. (2024). Retrieved from http://surl.li/yvynuv.
[41] World Bank. (2021). From crisis to green resilient growth: Investing in sustainable land management and climate smart agriculture. Retrieved from http://surl.li/winjio.
[42] World Bank. (2023). Opportunities to engage the private sector in the green and sustainable reconstruction of Ukraine. Retrieved from https://www.ifc.org/content/dam/ifc/doc/2023/sector-assessments-pso-green-resilientreconstruction-ukraine-uk.pdf.
[43] Zibtsev, S., Pasternak, V., Vasylyshyn, R., Myroniuk, V., Sydorenko, S., & Soshenskyi, O. (2024). Assessment of carbon emissions due to landscape fires in Ukraine during war in 2022. Ukrainian Journal of Forest and Wood Science, 15(1), 126-139. doi: 10.31548/forest/1.2024.126.
[44] Zotaj, A., Krasniqi, M., Bara, R., Kalaja, R., & Veizaj, S. (2024). Assessment of the economic value of physiotherapy treatment for economically effective results. Economics of Development, 23(3), 104-114. doi: 10.57111/ econ/3.2024.104.