Microregions of priority development as an alternative direction of strengthening the regional economy and financial decentralization

Abstract

The article proposes to expand approaches to the development of Ukraine's regions. The border regions are in a unique position, where, because of military actions, negative trends are observed: outflow of investments, the release of the labor force, relocation of enterprises, deterioration of infrastructure, a complication of movement of goods and services, deterioration of the ecological condition. Considering the realities, Ukraine must learn to live in new conditions and not waste a unique chance for post-war recovery, reboot, and rapid, inclusive economic development. Developing and implementing sometimes aggressive, innovative steps based on a combination of world experience in creating priority economic development areas should bring life back to the borderlands. The special economic conditions of the functioning of the regions can play a vital role in the country's post-war reconstruction, attracting investments and influencing economic development, social well-being, and ecological restoration in compliance with sustainable development goals. We have proposed strategic steps based on the analysis of regional development opportunities. It is based on consistent actions to identify problems of a socio-economic nature, determine the potential and direction of business interaction with state authorities, formation of proposals to overcome obstacles at different levels. The step-by-step introduction of special conditions for the functioning of microregions of priority development has been defined from the adjustment of the legislative framework to facilitate business to the creation of comfortable conditions for the entry and support of the investor. The generalization of the effect of special economic incentives is the main issue for the developers of creating microregions of priority development, mainly focusing on critical areas and sustainable development. It is possible to measure the efficiency of such microregions by comparing the economic benefits with the benefits involved. At the same time, rules and transparency should be the basis for attracting transnational business and territorial development. Keywords: priority development microregions, special economic zones, financial decentralization, regional economic development, foreign investments.