Post-war economic recovery: main factors of impact and global experience for Ukraine

Abstract

Introduction. The ongoing hostilities in Ukraine reduce Ukraine's potential for independent sustainable economic growth. The sovereign debt burden is significantly increasing, production facilities are being destroyed, and with them the industrial potential of the country, the possibility for a quick return of the majority of forced refugees to Ukraine from abroad is declining. The response to these challenges should include the application of the most active methods of implementing state policy aimed at ensuring the economic independence and well-being of Ukraine. The prerequisite for overcoming the identified problems will be not only the end of hostilities on the territory of Ukraine, but also the implementation of a system that encourages businesses to recover, increase the profitability of their production, as well as the concentration of the state’s attention on the achievement of priority goals, among which, of course, the main one will be ensuring security and social and economic recovery of the country. Problem Statement. Determining the role of the state in post-war reconstruction, substantiating the possibilities of applying instruments of state impact on the development of the economy of Ukraine. Purpose. Substantiating, taking into account the specifics of the pre-war development of the economy of Ukraine and based on the world experience of post-war recovery, an effective state toolkit, the implementation of which will not only speed up the recovery of the economy, but also ensure the quality of the development. Methods. The research was conducted on the basis of a systematic approach, the principles of objectivity and critical analysis, systematization of analytical and statistical data, and scientific insight into the consequences of external and internal factors affecting the development of the economy. Results. The main effective tools that contributed to restarting post-war economies, changing their structure and rapid economic development are identified. As part of the analysis of domestic state initiatives to restore the economy of Ukraine, priority steps have been outlined that will contribute to the intensification of business activity and ensure its broader access to long-term debt capital. Reasonable expediency of implementation of indicative planning, reform of the state policy of attracting foreign investments, internal system of stimulating business activity, implementation of investment risk insurance, etc. The need to revise the priorities of the country's economic development, which would take into account not only current realities, but also focus on the strategic goals of Ukraine's future, was emphasized. Conclusions. While aiming at the recovery of the national economy, the state faces many complex tasks, the solution of which requires the concentration of efforts of both the government and society in general. The world experience of post-war reconstruction proves that even after tragedies, it is possible to establish a modernized and prosperous state. The implementation of such aspirations can be materialized on the base of a clear vision and planning of the future of the country with the step-by-step implementation of the intended plans, which must definitely take into account the systemic problems that the economy had accumulated in the past (low level of fixed investments, outdated production base, low innovativeness of enterprises, practical lack of access to cheap long-term credit, unattractive investment environment, insecurity of property rights, etc.). The post-war recovery plan should be based on the principles of building a market economy, solving systemic problems, stimulating healthy competition and developing high-techindustry.