Prerequisites and Prospects for the Ukrainian Titanium Industry Development in the Postwar Period
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Cited by 2 publications
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Strategic Tasks of State Support for the Post-War Development of the National Economy
The article highlights the main issues of government support for the post-war development of priority sectors of the national economy that are of strategic importance for sustainable economic development and national defense capabilities; and substantiates the corresponding instruments of fiscal support using the example of titanium industry. In the study, the strategic tasks of government support for the post-war development of national economy are considered from the standpoint of a comprehensive solution to the problems of forming an innovative foundation for economic renewal, ensuring the technological change, creation of a complete cycle of deep titanium processing and titanium production in Ukraine which will meet the needs of domestic demand and the entry of domestic producers into world markets. Ensuring changes in educational sphere in accordance with the real economy’s demand for technical specialists and professionals is seen as a part of a comprehensive industrial policy approach, and fiscal instruments for this purpose are proposed. The need to expand the list of instruments of government support for the development of strategic industries is substantiated. The list should include both measures of tax support for investment projects with significant investments provided for by current legislation, as well as grants, innovative transfers from the government budget, measures to support the export of innovative titanium products, and innovative corporate income tax benefit to stimulate innovations, training tax allowance to support business investment in human capital. Proposals to extend the instruments for financing priority sectors of Ukraine’s economic revival do not contradict the norms of EU legislation in the field of government aid. Possible measures for ordering the regulatory framework of the proposed in the article direct budgetary and indirect government support instruments for the innovative development of strategic sectors of the economy are outlined. In particular, changes to the Tax Code of Ukraine on the introduction of innovation and training allowances for corporate income tax, changes in the minimum useful life of innovative equipment, and tax credit recognition of VAT amounts in the acquisition prices of technology property rights and in the import of technology under a technology transfer agreement, as well as to the Resolution of the Cabinet of Ministers of Ukraine of January 24, 2020 No. 28 “On the provision of financial government support” in terms of increasing the volume of loans and reducing the cost of their servicing for business entities in the titanium industry.
Strategic Tasks of State Support for the Post-War Development of the National Economy
The article highlights the main issues of government support for the post-war development of priority sectors of the national economy that are of strategic importance for sustainable economic development and national defense capabilities; and substantiates the corresponding instruments of fiscal support using the example of titanium industry. In the study, the strategic tasks of government support for the post-war development of national economy are considered from the standpoint of a comprehensive solution to the problems of forming an innovative foundation for economic renewal, ensuring the technological change, creation of a complete cycle of deep titanium processing and titanium production in Ukraine which will meet the needs of domestic demand and the entry of domestic producers into world markets. Ensuring changes in educational sphere in accordance with the real economy’s demand for technical specialists and professionals is seen as a part of a comprehensive industrial policy approach, and fiscal instruments for this purpose are proposed. The need to expand the list of instruments of government support for the development of strategic industries is substantiated. The list should include both measures of tax support for investment projects with significant investments provided for by current legislation, as well as grants, innovative transfers from the government budget, measures to support the export of innovative titanium products, and innovative corporate income tax benefit to stimulate innovations, training tax allowance to support business investment in human capital. Proposals to extend the instruments for financing priority sectors of Ukraine’s economic revival do not contradict the norms of EU legislation in the field of government aid. Possible measures for ordering the regulatory framework of the proposed in the article direct budgetary and indirect government support instruments for the innovative development of strategic sectors of the economy are outlined. In particular, changes to the Tax Code of Ukraine on the introduction of innovation and training allowances for corporate income tax, changes in the minimum useful life of innovative equipment, and tax credit recognition of VAT amounts in the acquisition prices of technology property rights and in the import of technology under a technology transfer agreement, as well as to the Resolution of the Cabinet of Ministers of Ukraine of January 24, 2020 No. 28 “On the provision of financial government support” in terms of increasing the volume of loans and reducing the cost of their servicing for business entities in the titanium industry.
Market conditions and the role of the state in post-war economic recovery of Ukraine
Introduction. The loss of consumers of Ukrainian products from the former Soviet Union harmed the economy, especially industry. Along with a significant decline in demand for its products, payments to the budget and receipt of foreign currency decreased. Privatization, especially in industry, and the development of the basics of market relations did not provide the necessary impetus for the economy. Insufficient state participation in the innovative renewal of fixed assets and in supporting demand for Ukrainian products also hindered growth. Problem Statement. The combination of market relations with state regulation of the economy, particularly for the development of Ukraine's industrial sector. Methods. The study employs methods of critical analysis, summarizing the advantages and disadvantages of market mechanisms in Ukraine, systematization, and integration. The purpose is to carry out a systematic analysis of the results of the activities of enterprises over a 30-year period of their development in the conditions of market economy in Ukraine, the assessment of the support of state management bodies in the process of ensuring the efficiency of domestic economic entities in general, the comparison of the Ukrainian approach to the independence of enterprises in market conditions with the provisions of J. M. Keynes’ theory regarding the role of the state in the formation of demand for their products. Methods. The study employs methods of critical analysis, summarizing the advantages and disadvantages of market mechanisms in Ukraine, systematization, and integration. Results. State assistance in the renewal of fixed assets and the transition to innovative production from 1991 to 2021 was insufficient. Following the industrial decline of 1991, recovery in Ukraine was slow as enterprises paid insufficient attention to the aging of their assets and their financial condition. Many industrial enterprises failed to take advantage of opportunities to modernize production and maintain profitability. This resulted in their losses, reduced budget payments, and the loss of global market segments The results of the analysis showed that the construction of the market economy in Ukraine did not follow Keynesian principles, which led to the aforementioned problems. Conclusions. It was the balanced involvement of the state in post-war economic restructuring that brought success to Germany, South Korea, and Vietnam. After the war, certain key enterprises in Ukraine may face a shortage of resources due to incurred losses. This problem can only be resolved with state involvement. The authors identified strategic industrial sectors whose development will accelerate structural and innovative transformations in the national economy, including metallurgy, mechanical engineering, and construction.
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