Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal
The socio-economic consequences of military conflicts in the Donetsk region by types of economic activity are analyzed, the state of damaged and restored objects of the infrastructure of Donetsk region as a result of military actions is analyzed, problems of socio-economic development of the Donetsk...
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Інститут економіки промисловості НАН України
2017
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| Цитувати: | Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal / V. Yefremenko, O. Gavrysh // Економічний вісник Донбасу. — 2017. — № 4 (50). — С. 10-14. — Бібліогр.: 13 назв. — англ. |
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irk-123456789-1308962018-03-07T03:02:07Z Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal Yefremenko, V. Gavrysh, O. Social and economic problems of Donbas The socio-economic consequences of military conflicts in the Donetsk region by types of economic activity are analyzed, the state of damaged and restored objects of the infrastructure of Donetsk region as a result of military actions is analyzed, problems of socio-economic development of the Donetsk region are determined, sources for the renewal of social and economic life on the territory of the Donetsk region are analyzed and proposals for the restoration of the Donetsk region territory are developed. Оцінено соціально-економічні наслідки воєнних дій в Донецькій області за видами економічної діяльності, проаналізовано стан пошкоджених та відновлених об’єктів інфраструктури Донецької області внаслідок воєнних дій, визначено проблеми соціально-економічного розвитку Донецької області, проаналізовано джерела для відновлення соціального та економічного життя на території Донецької області та розроблено пропозиції по відновленню території Донецької області. Дана оценка социально-экономических последствий военных действий в Донецкой области по видам экономической деятельности, проанализировано состояние поврежденных и восстановленных объектов инфраструктуры Донецкой области в результате военных действий, определены проблемы социально-экономического развития Донецкой области, проанализированы источники для восстановления социальной и экономической жизни на территории Донецкой области и разработаны предложения по восстановлению территории Донецкой области. 2017 Article Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal / V. Yefremenko, O. Gavrysh // Економічний вісник Донбасу. — 2017. — № 4 (50). — С. 10-14. — Бібліогр.: 13 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/130896 338.245:332.1:338.49(477.62) en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Digital Library of Periodicals of National Academy of Sciences of Ukraine |
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English |
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Social and economic problems of Donbas Social and economic problems of Donbas |
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Social and economic problems of Donbas Social and economic problems of Donbas Yefremenko, V. Gavrysh, O. Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal Економічний вісник Донбасу |
| description |
The socio-economic consequences of military conflicts in the Donetsk region by types of economic activity are analyzed, the state of damaged and restored objects of the infrastructure of Donetsk region as a result of military actions is analyzed, problems of socio-economic development of the Donetsk region are determined, sources for the renewal of social and economic life on the territory of the Donetsk region are analyzed and proposals for the restoration of the Donetsk region territory are developed. |
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Article |
| author |
Yefremenko, V. Gavrysh, O. |
| author_facet |
Yefremenko, V. Gavrysh, O. |
| author_sort |
Yefremenko, V. |
| title |
Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal |
| title_short |
Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal |
| title_full |
Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal |
| title_fullStr |
Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal |
| title_full_unstemmed |
Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal |
| title_sort |
socio-economic consequences of military conflicts in the donetsk region and priority areas of the regional renewal |
| publisher |
Інститут економіки промисловості НАН України |
| publishDate |
2017 |
| topic_facet |
Social and economic problems of Donbas |
| url |
http://dspace.nbuv.gov.ua/handle/123456789/130896 |
| citation_txt |
Socio-economic consequences of military conflicts in the Donetsk region and priority areas of the regional renewal / V. Yefremenko, O. Gavrysh // Економічний вісник Донбасу. — 2017. — № 4 (50). — С. 10-14. — Бібліогр.: 13 назв. — англ. |
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Економічний вісник Донбасу |
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2025-07-09T14:25:19Z |
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| fulltext |
V. Yefremenko, O. Gavrysh
10
Економічний вісник Донбасу № 4(50), 2017
UDC 338.245:332.1:338.49(477.62)
V. Yefremenko,
PhD (Public Administration),
O. Gavrysh,
PhD (Pedagogics),
Donbas National Academy of Civil Engineering and Architecture
SOCIO-ECONOMIC CONSEQUENCES OF MILITARY CONFLICTS
IN THE DONETSK REGION AND PRIORITY AREAS OF THE REGIONAL RENEWAL
Formulation of the problem. Socio-economic de-
velopment is the process of continuous change of the
material basis of production and also of the whole set of
diverse relationships between economic entities and so-
cial groups of the population. Socio-economic develop-
ment is the difficult contradictory process, in which in-
teract positive and negative facts and periods of progress
change into periods of regress. Political and military up-
heavals, social conflicts, ecological disasters can halt the
economic development of any country, reject it for
several decades, and sometimes lead to ultimate destruc-
tion. Thus, Donetsk region before the beginning of the
conflict was a powerful natural resource potential of the
country. But the war significantly changed the existing
situation. Therefore, at present the renewal of the terri-
tory of these areas is a matter and the task number one
of the Ukrainian authorities.
Analysis of recent researches. Problems of socio-
economic development of the Donetsk region and the
issues of the renewal of territories are solved by such
researchers as O. Amosha, V. Antonyuk, L. Bezzubko,
V. Gorbulin, S. Ilyin, A. Lavriv, E. Libanova, O. Lya-
shenko, V. Lyashenko, O. Novikova, S. Pirozhkov,
G. Popova, O. Vlasyuk etc.
The purpose of the article is to analyze the socio-
economic status of the Donbas as a result of military
conflicts and to develop priority areas for the renewal of
the territory.
Presentation of the main research material. Be-
fore the military conflict in the Donetsk region was con-
centrated coal mining, coke, chemical, machinery indus-
try, that employed a large number of highly skilled
workers. Favorable geographical position, proximity of
sources of raw materials and sales markets, developed
network of transport communications, high population
density, distinguished Donbas among other economic
regions of Ukraine.
The Donetsk economic region was one of the most
powerful district in the economic complex of Ukraine.
The economy of the Donetsk economic region is a com-
plicated complex, which combines a powerful industry
with the predominance of heavy industry with diversi-
fied agriculture. In the total gross output of the econ-
omy, the industry accounts 89%, agriculture amounts
11%. Branches of specialization are: fuel and energy in-
dustry, metallurgical, chemical, machine building in-
dustry and construction materials industry. The analysis
of the branch structure of the economy based on gross
added value shows the preference of the service sector.
This situation is typical both for the Donetsk region and
for whole Ukraine [1].
During 2014-2015, due to the conflict and hostili-
ties, densely populated and unique in terms of urbaniza-
tion of the Donetsk and Luhansk regions (correspond-
ingly, 90.7% and 86.7% of citizens, as compared to
69.0% in Ukraine) sustained the greatest casualties of
urban settlements on the background of disorganization
of the life of the population and provision of social ser-
vices, full or partial destruction of the housing stock and
strategically important infrastructure objects.
The state of the structural elements of damaged
houses and apartments is rapidly degrading, that in-
creases the cost of their restoration; damage of walls,
roofs and windows leads to heat losses and makes
houses unsuitable for living in the winter period.
Due to the conflicts in the Lugansk and Donetsk
regions, the destruction of transport and energy infra-
structure, a lot of enterprises had to pause or stop pro-
duction processes. Machine building, heavy and mining
industry, especially coal industry as a significant part of
its enterprises is located in the ATO zone, were signifi-
cantly affected. Destruction and damage were experi-
enced by the main enterprises of the industries that form
the budget of the region, the activity of the significant
number of city-forming enterprises was stopped [3].
In Donbas the significant capacities of the metal-
lurgical industry of Ukraine are concentrated – even
without taking into account part of the ATO zone, the
part of the Donetsk region in the volume of sales of met-
allurgical products in 2014 amounted to 34.6% (in the
total volume of industrial production sold in the region
was 42.4%). The conflict led to a significant deteriora-
tion of the main financial and economic indices of the
industry.
In 2014, as a result of hostilities in the region, the
majority of chemical enterprises suspended the produc-
tion process and shipment of finished products due to
man-caused threats. The industrial infrastructure of
some enterprises was damaged (Donetsk State Chemical
Plant), a significant part of the enterprises (including
PJSC Concern Stirol in Horlivka) remained in the occu-
pied territory. As a result the production potential of the
V. Yefremenko, O. Gavrysh
11
Економічний вісник Донбасу № 4(50), 2017
chemical industry of the region was substantially de-
creased [1].
Different foreign countries have been supporting
Ukraine in the implementation of infrastructure and hu-
manitarian projects to renewal infrastructure of the Do-
netsk region since 2014. The foreign and Ukrainian pro-
grammes were aimed at restoring the eastern regions of
Ukraine, providing equipment for medical institutions,
medical equipment for the eastern regions of Ukraine,
and humanitarian assistance for the internally displaced
persons. The assistance is also aimed at rebuilding of
critical infrastructure in the eastern regions of Ukraine,
which will promote social cohesion and support for
small businesses in communities affected by the conflict
in Donbas, building up the educational potential in the
Donetsk region under the control of the Ukrainian gov-
ernment [12].
As a result, the measures taken to renewal life and
damaged infrastructure of the settlements of the region
as of January 1, 2016 were restored (Fig. 1): residential
buildings, electricity supply, heat supply, water supply,
gas supply, drainage, health care institutions, educa-
tional establishments, pre-school educational institu-
tions, vocational schools, physical culture and sports fa-
cilities, cultural objects, trade establishments, objects of
road transport infrastructure, etc [12].
Fig. 1. Restoration of damaged infrastructure of settlements of the Donetsk region as of January 1, 2016
Recently two destroyed bridges have been restored
in the Donetsk region. These are the bridge in the village
of Semenivka, Kramatorsk City Council, and a 300-me-
ter bridge across the river Seversky Donets in the village
of Zakotne, Limansky district.
As a whole, 2331.9 mln. UAH were allocated for
the implementation of the Program activities, including
362.7 mln UAH from the state budget, 1046.5 mln UAH
from local budgets, 851.2 mln UAH from enterprises'
funds and 71.5 mln UAH from other sources [10].
Infrastructure plays a key role in the development
of the economy, as its existence is connected with the
state of productive forces and the territorial division of
labor, as well as the efficiency of the sphere of material
production. The infrastructure of the country's economy,
on the one hand, depends on the pace of modernization;
32,3
265,5
1,3
13,9
0,5
3,1
11
25,5
12
2,9
0,1
0,7
0,4
14,9
residential buildings
electricity supply
heat supply
water supply
gas supply
drainage
health care institutions
educational
establishments
pre-school educational
institutions
vocational schools
physical culture and
sports facilities
cultural objects
trade establishments
objects of road
transport infrastructure
V. Yefremenko, O. Gavrysh
12
Економічний вісник Донбасу № 4(50), 2017
on the other hand, it is itself a supplier of economic
growth. Therefore, Ukraine is putting enormous efforts
to restore it [1].
The Donbas catastrophe has already caused enor-
mous economic losses in Ukraine and continues to re-
quire a huge amount of funding every day for the
maintenance and rearming of the army, for social assis-
tance, for the renewal of the infrastructure of the af-
fected areas, for assistance to internally displaced per-
sons throughout the country.
Speaking about the social problems of the develop-
ment of the Donetsk region, it is clear that, as a result of
recent events, almost all spheres of social life concern
internally displaced persons (IDPs). The population that
had to leave the Donetsk region as the result of occupa-
tion, during the armed confrontation faced numerous
problems such as possibilities and ways of departure,
looking-for the temporary accommodation, employ-
ment opportunities, educational establishments for chil-
dren, obtaining medical aid, etc. A lot of people were
left without documents. This fact raised the complex is-
sue of reissuing of documents certifying a person,
his/her affiliation to the Ukrainian citizenship, legaliza-
tion of the temporary registration, as well as employ-
ment opportunities [2].
The vast majority of IDPs suffered substantial ma-
terial and moral losses connecting with:
1. by the fact that they left home and property ac-
cumulated over decades in the occupied territory. A lot
of the movables and immovables were damaged (or de-
stroyed) as a result of hostilities;
2. loss of work and a stable source of income, in
connection with which most migrants could not quickly
find employment in a new place, and a significant part
of them are still unemployed;
3. moving and arranging in a new place that needed
a lot of money; long-term unemployment, which led to
a significant reduction of available savings or debt
growth;
4. loss of the usual social and domestic environ-
ment (relatives, friends, colleagues, neighbours, familiar
workers of social services, etc.), that is the necessary
condition for sustainable resettlement;
5. the fact that the majority of IDPs in the occupied
territory have relatives and property requiring periodic
trips to the uncontrolled territory of Ukraine. The cost of
transportation services has increased several times, that
complicates the already difficult material situation of
IDPs;
6. the state does not fully fulfill its financial obli-
gations to IDPs. This concerns the timely payment of
purpose-oriented targeted assistance and the gradual re-
duction of these payments.
As of October 17, 2016, Ukraine registered 1 681
725 internally displaced persons, or 1 360 898 families
from Donbas and AR Crimea [5]. In terms of the number
of migrants, Ukraine takes the first place in Europe and
is among the leaders of the world (Table 1).
Table 1
Countries with the largest number of internally
displaced persons as of December 31, 2015, people
Place Country Number of
IDPs
1 Syria 6 600 000
2 Colombia 6 270 436
3 Іraq 3 290 310
4 Sudan 3 182 286
5 Yemen 2 509 068
6 Nigeria 2 095 812
7 Southern Sudan 1 696 962
8 Ukraine 1 678 587
9 Democratic Republic of
Congo 1 500 000
10 Pakistan 1 459 000
The analysis of the socio-economic situation in the
Donetsk region shows that the region needs the imme-
diate renewal. The destruction of the technologically
outdated economy and the rupture of traditional ties
with the temporarily occupied territories lead not only
to the formation of a fundamentally different economic
complex, but also to the search for new markets for the
supply of the necessary raw materials, components and
sales of manufactured products. Therefore, now it is
very important to consider the countries that provide as-
sistance in implementing these measures and are the
largest sources of funding for the renewal of our terri-
tory [1].
According to the "Extraordinary Credit Program
for the Restoration of Ukraine", which is implemented
by the Cabinet of Ministers of Ukraine together with the
European Investment Bank, projects for financing total-
ing over UAH 627 million have been identified. More
than UAH 204 mln from these funds will be spent on the
renewal of the infrastructure of the part of the Donetsk
region controlled by Ukraine and more than UAH
89 mln of the Luhansk region. At the expense of these
funds the renewal and reconstruction of schools, kinder-
gartens, dormitories and infrastructure objects, includ-
ing heating and water supply, will be provided. The
Government of Ukraine revealed the amount of financ-
ing for the reconstruction of the Donbas infrastructure
[10].
Restoration of transport and communications. The
restoration of transport and communications operation
in Donbas should be based on the idea of integration into
the system of international transport corridors and the
trans-European transport network. Future prospects of
joining to the European Infrastructure Network will
stimulate the formation of a highly developed economy
of Donbas, promote investment attraction, integration
with the regions of the EU, that will significantly
strengthen Ukraine’s position in the transport and com-
munications market.
V. Yefremenko, O. Gavrysh
13
Економічний вісник Донбасу № 4(50), 2017
Modernization of the social sphere provides the
restoration of health care objects, education, culture and
sports. Proper development of this sphere will allow the
fully usage of the potential of the region, increase social
mobility of the population, as well as it will formulate
social policy for ensuring sustainable development [10].
The benefits of introducing in the Donbas con-
trolled areas of the community development corpora-
tions and non-profit financial institutions of local deve-
lopment are: the concentration of capital in communities
through the development of residential and commercial
real estate, from affordable housing to shopping centers,
enterprises and industrial parks; direct participation of
the public in making managerial decisions; increasing of
activity of inhabitants and public organizations and em-
powerment of the community to ensure effective social
communication and interaction of all social subjects in-
volved in the renewal of Donbas.
Conclusions and perspectives of further re-
search. Thus, the renewal of Donbas requires the pur-
poseful and systematic work of the authorities, the broad
engagement of civil society and international organiza-
tions, as well as the adaptation and maximum usage of
the experience of other countries.
The Donbas Recovery and Development Program
has become a national project for the comprehensive
modernization of the economy and infrastructure of
Ukraine. At the initial stage of rehabilitation, more than
90% of public funds are sent for the rehabilitation and
reconstruction of life support systems and infrastructure,
as well as not only public funds and international assis-
tance, but also resources of Ukrainian business are ob-
tained.
The renewal and modernization of the housing
stock, economic, transport and social infrastructure are
carried out depending on the degree of damage, based
on the priorities of post-conflict recovery, investment
efficiency criteria and reasonable cost minimization [1].
Due to limited resources, situational instability and so-
cial tension, forming the organizational and managerial
support for the renewal of Donbas it is expedient to im-
plement priority directions of activity that will depend
on the effectiveness of further actions and the require-
ments of decentralization of the management system,
namely:
1) modernization of the state administration sys-
tem;
2) strengthening public oversight of duties;
3) regulation of the powers, competence, duties
and responsibilities of central and regional executive au-
thorities for overcoming the consequences of a military
conflict and renewal of Donbas;
4) providing information security in post-conflict
areas, minimizing information risks and dangers and
preventing them from appearing such risks, strengthen-
ing control over the information space, stimulating mass
media to form a positive attitude of the society towards
the restoration of Donbas;
5) intensifying the attraction of international and
domestic investments for the renewal of production,
transport, social and other infrastructure of Donbas;
6) the formation of relations of subjectivity be-
tween civil society, the state, business according to the
restoration of Donbas, etc.
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Оцінено соціально-економічні наслідки воєн-
них дій в Донецькій області за видами економічної
діяльності, проаналізовано стан пошкоджених та
відновлених об’єктів інфраструктури Донецької об-
ласті внаслідок воєнних дій, визначено проблеми со-
ціально-економічного розвитку Донецької області,
проаналізовано джерела для відновлення соціаль-
ного та економічного життя на території Донецької
області та розроблено пропозиції по відновленню
території Донецької області.
Ключові слова: соціально-економічний розви-
ток, Донецька область, інфраструктура, проблеми,
воєнні дії, відновлення території.
Ефременко В. В., Гавриш Е. Г. Социально-
экономические последствия военных действий в
Донецкой области и приоритетные направления
восстановления территории
Дана оценка социально-экономических послед-
ствий военных действий в Донецкой области по ви-
дам экономической деятельности, проанализиро-
вано состояние поврежденных и восстановленных
объектов инфраструктуры Донецкой области в ре-
зультате военных действий, определены проблемы
социально-экономического развития Донецкой об-
ласти, проанализированы источники для восстанов-
ления социальной и экономической жизни на терри-
тории Донецкой области и разработаны предложе-
ния по восстановлению территории Донецкой обла-
сти.
Ключевые слова :социально-экономическое ра-
звитие, Донецкая область, инфраструктура, про-
блемы, военные действия, восстановление террито-
рии.
Yefremenko V., Gavrysh O. Socio-economic
consequences of military conflicts in the Donetsk re-
gion and priority areas of the regional renewal
The socio-economic consequences of military con-
flicts in the Donetsk region by types of economic activ-
ity are analyzed, the state of damaged and restored ob-
jects of the infrastructure of Donetsk region as a result
of military actions is analyzed, problems of socio-eco-
nomic development of the Donetsk region are deter-
mined, sources for the renewal of social and economic
life on the territory of the Donetsk region are analyzed
and proposals for the restoration of the Donetsk region
territory are developed.
Keywords: socio-economic development, the Do-
netsk region, infrastructure, problems, military con-
flicts, the renewal of the territory.
Received by the editors: 27.11.2017
and final form 22.12.2017
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