EUROPEAN EXPERIENCE OF MODERN REGIONAL POLICY: A MESOECONOMIC APPROACH AND THE PROSPECTS OF UKRAINE

  • I. Ostrovskyi O.M. Beketov National University of Urban Economy in Kharkiv
  • N. Mozhaikina O.M. Beketov National University of Urban Economy in Kharkiv
Keywords: regional policy, institutional complementarity, mesoeconomics, non-uniformity, decentralization

Abstract

The European experience of regional development policy is based on three basic principles: systematic, institutional, complementary. Moving away from the dichotomous position of "donor or outsider", "centralization or decentralization" to a broader platform "community-state" allows us to form a kind of theoretical starting position on the development and implementation of a set of state reforms at which a higher level of socio-economic development can be achieved.

The methodological basis for studying institutional complementarity for regional development analysis may be the use of mesoeconomic analysis. It is the mesoeconomic level that can be seen as an opportunity to pass between two methodological extremes: individualism and holism.

The current problems of regional development of Ukraine are caused by considerable micro- and macroeconomic constraints. The main constraints are demographic negatives, de-industrialization, high consumption of production resources, in particular, low energy efficiency, and an increased burden on debt. The most destabilizing role is played by military events in the East.

The experience of combining centralization and decentralization eliminates the dichotomy and emphasizes the contradictory unity of both processes. The priority of regional policy must be to develop the scientific, technological and innovative potential of the regions. The process of dissemination of innovation must go from centralized to regional. It is important to combine state support funds with their own resources and direct them to implement regional and local development strategies, support the implementation of innovations, the development of new production, small and medium-sized businesses.

An example of using a mesoeconomic approach as a theoretical compromise on centralization and decentralization is the training of higher education professionals.

Reform of the emergency medical care system should also be based on the complementarity of old and new forms of organization, especially in remote areas.

We consider it appropriate to use the European experience of mesoeconomic approaches to confirm the possibility of complementary development of the regions of Ukraine.

 

Author Biographies

I. Ostrovskyi, O.M. Beketov National University of Urban Economy in Kharkiv

Ph.D., Associate Professor

N. Mozhaikina, O.M. Beketov National University of Urban Economy in Kharkiv

Ph.D., Associate Professor

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Published
2020-04-03
How to Cite
OstrovskyiI., & MozhaikinaN. (2020). EUROPEAN EXPERIENCE OF MODERN REGIONAL POLICY: A MESOECONOMIC APPROACH AND THE PROSPECTS OF UKRAINE. Municipal Economy of Cities, 2(155), 64-69. Retrieved from https://khg.kname.edu.ua/index.php/khg/article/view/5584