Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives
Currently, Ukraine is facing the strategic task of economic modernization on the basis of sustainable development. One of the most popular methods of state regulation of sustainable development is a strategic planning system that balances economic, environmental and social goals of long-term communi...
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irk-123456789-640222014-06-10T03:02:22Z Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives Polovyan, O.V. Kazakova, M.G. Macroeconomic and regional problems of industrial development Currently, Ukraine is facing the strategic task of economic modernization on the basis of sustainable development. One of the most popular methods of state regulation of sustainable development is a strategic planning system that balances economic, environmental and social goals of long-term community development. At the same time there is still no single approach to the definition, creation and development of an integrated strategy for sustainable development based on a holistic vision. The issue of sustainable development is especially important for Ukraine because of the high level of technogenic burden on its environment. The purpose of this research is to identify key principles, directions and features of a strategy for sustainable development of the regions of Ukraine. In the paper the influence of anthropogenic impact on the environment in Ukraine is analyzed. Using cluster analysis, the grouping of regions of Ukraine is made in terms of economic and environmental conditions. The rating analysis is carried out for the overall assessment of the economic and ecological situation in the regions of Ukraine. Research of regional development strategies of EU and Ukraine is conducted. According to its results Ukraine has no state strategy based on a holistic approach to solving the environmental problems of economic development. Existing documents highlight some aspects of sustainable development, but they are not complex. In its turn the analysis of the strategy "Europe 2020" confirms its holistic platform, complexity and focus on the coordination of social, economic and environmental objectives of society development. The authors of the paper suggest a number of directions for ensuring sustainable regional development in Ukraine. The practical implementation of the proposed recommendations will promote a process of changing qualitative characteristics of socio-economic systems within environmental constraints to provide opportunities to meet the needs of future generations. Проаналізовано вплив антропотехногенного навантаження на довкілля в Україні. За допомогою кластерного аналізу проведено групування областей України за рівнем економіко-екологічного стану. Для загальної оцінки економіко-екологічної ситуації по регіонах України здійснено рейтинговий аналіз. Проаналізовано стратегії регіонального розвитку ЄС і України. Запропоновано напрями забезпечення сталого розвитку регіонів України. Приведены результаты анализа влияния антропотехногенной нагрузки на окружающую среду в Украине. С помощью кластерного анализа проведена группировка областей Украины по уровню экономико-экологического состояния. Для общей оценки экономико-экологической ситуации по регионам Украины осуществлен рейтинговый анализ. Проведен анализ стратегий регионального развития ЕС и Украины. Предложены направления обеспечения устойчивого развития регионов Украины. 2014 Article Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives / O.V. Polovyan, M.G. Kazakova // Економіка промисловості. — 2014. — № 1 (65). — С. 32-43. — Бібліогр.: 17 назв. — англ. 1562-109Х http://dspace.nbuv.gov.ua/handle/123456789/64022 332.14:504.064(477) en Економіка промисловості Інститут економіки промисловості НАН України |
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Macroeconomic and regional problems of industrial development Macroeconomic and regional problems of industrial development |
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Macroeconomic and regional problems of industrial development Macroeconomic and regional problems of industrial development Polovyan, O.V. Kazakova, M.G. Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives Економіка промисловості |
| description |
Currently, Ukraine is facing the strategic task of economic modernization on the basis of sustainable development. One of the most popular methods of state regulation of sustainable development is a strategic planning system that balances economic, environmental and social goals of long-term community development. At the same time there is still no single approach to the definition, creation and development of an integrated strategy for sustainable development based on a holistic vision. The issue of sustainable development is especially important for Ukraine because of the high level of technogenic burden on its environment. The purpose of this research is to identify key principles, directions and features of a strategy for sustainable development of the regions of Ukraine. In the paper the influence of anthropogenic impact on the environment in Ukraine is analyzed. Using cluster analysis, the grouping of regions of Ukraine is made in terms of economic and environmental conditions. The rating analysis is carried out for the overall assessment of the economic and ecological situation in the regions of Ukraine. Research of regional development strategies of EU and Ukraine is conducted. According to its results Ukraine has no state strategy based on a holistic approach to solving the environmental problems of economic development. Existing documents highlight some aspects of sustainable development, but they are not complex. In its turn the analysis of the strategy "Europe 2020" confirms its holistic platform, complexity and focus on the coordination of social, economic and environmental objectives of society development. The authors of the paper suggest a number of directions for ensuring sustainable regional development in Ukraine. The practical implementation of the proposed recommendations will promote a process of changing qualitative characteristics of socio-economic systems within environmental constraints to provide opportunities to meet the needs of future generations. |
| format |
Article |
| author |
Polovyan, O.V. Kazakova, M.G. |
| author_facet |
Polovyan, O.V. Kazakova, M.G. |
| author_sort |
Polovyan, O.V. |
| title |
Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives |
| title_short |
Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives |
| title_full |
Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives |
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Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives |
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Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives |
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main directions of forming state strategy of sustainable regional development in ukraine: realities and perspectives |
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Інститут економіки промисловості НАН України |
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2014 |
| topic_facet |
Macroeconomic and regional problems of industrial development |
| url |
http://dspace.nbuv.gov.ua/handle/123456789/64022 |
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Main directions of forming State strategy of sustainable regional development in Ukraine: realities and perspectives / O.V. Polovyan, M.G. Kazakova // Економіка промисловості. — 2014. — № 1 (65). — С. 32-43. — Бібліогр.: 17 назв. — англ. |
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–––––––––––––––––––––––––– Економіка промисловості Economy of Industry ––––––––––––––––––––––––––
32 ISSN 1562-109X
2014, № 1 (65)
UDC 332.14:504.064(477) Oleksiy Volodymyrovych Polovyan,
Doctor of Economics,
Marina Gennadiyivna Kazakova
The Institute of the Economy of Industry
of the NAS of Ukraine, Donetsk
MAIN DIRECTIONS OF FORMING STATE STRATEGY
OF SUSTAINABLE REGIONAL DEVELOPMENT IN UKRAINE:
REALITIES AND PERSPECTIVES
Currently, Ukraine is facing the strategic
task of economic modernization on the basis of
transition to the innovative way of social and
economic development. According to expe-
rience of developed countries, raising this prob-
lem is connected with “environmental” dilem-
ma: to implement environmental technologies at
the “end of pipe” or on its “beginning”1. It
should be noted that the second type of technol-
ogies is the most effective in the long-term pe-
riod but also more expensive and significantly
hinders economic growth. Efficiency of its im-
plementation largely depends on the methods
used to manage and control this process. One of
the most popular methods of state regulation of
sustainable development is a strategic planning
system that balances economic, environmental
and social goals of long-term community devel-
opment.
Correlation between economic develop-
ment and environmental safety has been studied
by both national and international scientists.
Problems of production greening were covered
by R. Costanza, W.E. Rees, S. Harichkov [1-3],
forming strategy and creating conditions for
transition to sustainable development – by T.
Panayotou, O. Polovyan, O. Veklich, O. Garku-
shenko [4-7], increasing economic efficiency of
natural resources usage – O. Balatsky, L. Mel-
nyk, O. Popova [8-9].
However, there is still no single approach
to the definition, creation and development of an
integrated strategy for sustainable development
1 “End of pipe” – neutralization of pollution at
the last stage of the production cycle.
“Beginning of pipe” – the introduction of en-
vironmental technologies at all stages of the produc-
tion cycle.
based on a holistic vision. Therefore the aim of
the work is to identify key principles, directions
and features of a strategy for sustainable devel-
opment of the regions of Ukraine.
Sustainable development presupposes co-
evolutionary interaction between economic, so-
cial and ecological subsystems. Managing this
process relies on the use of methods and tech-
niques of change management (management of
evolution), which is based on the theory of syn-
ergetics, self-organization and evolutionary eco-
nomics. For these theories it is typical to consid-
er qualitatively new modes of behavior of com-
plex managed structures – bifurcations, attrac-
tors, multiple optimal solutions etc., that is
caused by possibility of emergence of space-
time dissipative structures2.
Methodical basis for sustainable devel-
opment management are:
evolutionary management (change man-
agement) on the basis of a hierarchically con-
trolled dynamic system;
environmental innovation management,
which is the first step aimed to co-evolutionary
development of society and nature;
approach of process innovation that al-
lows to organize the generation and realization
of required resource saving technological solu-
tions;
regulatory and legal framework of trans-
fer of knowledge and technology that allows to
consolidate environmental imperative of sus-
tainable development.
2 Dissipative structures are the sets that draw
attractors that can generate efficient intersystem
connections. As a result, coherent, coordinated
movement occurs in the managed system.
© O.V. Polovyan, M.G. Kazakova, 2014
–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 33
2014, № 1 (65)
Evolutionary management suggests that,
while planning and implementing economic de-
velopment based on innovation, it is possible to
manage evolution of society. Society that is
evolving faster wins in the historic race. Evolu-
tionary management tries to combine continuous
training and development of human capital with-
in biogeocoenose that is occupied by territorial
community. This type of management is re-
quired to make gradual changes in reflective
way by using the procedure of selection and va-
riability, that is the basis for further changes. It
synthesizes the advantages of decentralized
coordination types (based on the adaptive prop-
erties) and the benefits of long-term planning.
Conceptually, the achievement of sustain-
able development is only possible with the use
of tools for strategic planning, which involves
determining long-term scenarios and conse-
quences of management actions on the managed
system. The effectiveness of development of
strategic goals of sustainable development is
largely dependent on the use of active methods
of interactive planning. The result is recom-
mended (possible) targets for the regulator of the
lower level. Appropriate directions to implement
objectives of sustainable development are de-
veloped with appropriate forms of interaction
and scenario approach based on economic and
mathematical modeling, interactive planning,
logical incrementalism. These directions are the
basis for developing appropriate targeted pro-
grams, strategies for the development of indi-
vidual regions and businesses, voluntary agree-
ments between business and the state etc.
Sustainable development does not apply
to processes with the end: each generation puts
their own goals, taking into account environ-
mental constraints and needs and their own idea
of social justice [10]. In this process, it is neces-
sary to make correlation between top-down
planning and bottom-up incrementalism1.
The following key issues of change man-
agement in social processes should be consi-
dered:
1 In strategic management incrementalism is
the approach of phased problem solving and
represents a process that aims to get the result
through adopting a plurality of small decisions taken
during a long period of time [11].
1) contradictions. Contradictions related
to the objectives, methods and ways of their so-
lution often arise during dealing with complex
social problems. It should be noted that each of
the alternative solutions have both positive and
negative aspects. The uncertainty of outcomes in
the long run is of particular note;
2) distribution of control. In pluricentric
societies control is distributed between different
members of society, with their own ideas, inter-
ests, resources, that may conflict with each oth-
er;
3) identification of short-term steps. The
way short-term solutions help to achieve long-
term goals is of great importance;
4) danger of “lock”. There is a danger
that once the selected solution will not be the
optimal solution in the long run. This is com-
pounded by the fact that the choice of one solu-
tion and its active use in the process of change
while ignoring other options will lead in the fu-
ture to the domination of selected solution over
others. The list of options may become the solu-
tion of this problem;
5) political shortsightedness.
The key element of the strategy of sus-
tainable development is the greening of econo-
my, which includes the transformation of eco-
nomic subsystem by regulating economic devel-
opment in the direction of reducing the eco-
destructive impact on development conditions of
environmental and biotic subsystems. Greening
requires a reorientation of the economy on eco-
sustainable goals at the macro level [12].
The issue of sustainable development is
especially important for Ukraine because of the
high level of technogenic burden on its envi-
ronment. The main factors of ecological crisis in
Ukraine are primarily industrial complexes – the
leading consumers of raw materials, energy, wa-
ter, air, land and at the same time the most po-
werful source of almost all kinds of pollution.
During 2012 the atmosphere has received
6.8 mln tons of pollutants (64% are from statio-
nary sources). The volume of toxic substances
is 11.3 t per 1 km2 of the country and 150 kg per
one person.
It should be noted that indicators of tech-
nogenic burden on the atmosphere differ at the
regional level. In particular, in the Donetsk re-
gion emissions per 1 km exceed the average lev-
–––––––––––––––––––––––––– Економіка промисловості Economy of Industry ––––––––––––––––––––––––––
34 ISSN 1562-109X
2014, № 1 (65)
el in 5.7 times and per person – 2.6 times, Dni-
propetrovsk region – respectively 3.3 and 2.4
times, Lugansk region – 1.8 and 1.6 times, Iva-
no-Frankivsk region – 1.6 and 1.2 times.
According to the State Agency of Land
Resources of Ukraine in 2012 1.2 thousand hec-
tares of land were damaged. In general, at the
end of 2012, the area of damaged land was
144.5 hectares (0.24% of the total land area of
Ukraine), exhausted – 45.8 hectares (0.08%).
According to the State Agency of Water
Resources of Ukraine in 2012 10.5 bln cubic
meters of water were taken from natural water
bodies (54.3% – for production). During 2012
8.1 bln cubic meters of water were dropped in
reservoirs, of which almost 19% fell into the
water in a polluted state (3.6% – without any
treatment).
In 2012, the volume of waste generation
was 450.7 mln tons. Wastes of fourth danger
level make up 99.7%, wastes of third danger
level – 0.22%. wastes of the first and second
danger level make up respectively 3.2 thousand
and 357.5 thousand tons.
As of January 1, 2013 there were accumu-
lated 14.9 bln tons of waste in specially desig-
nated places and on the territory of enterprises.
96% of country's waste are stored on the territo-
ry of five regions, particularly in Dnipropetrovsk
(9548 mln tons), Donetsk (2887 Mt), Zaporizhia
(154 mln tons), Kirovograd (270 mln tons) and
Lugansk (1470 mln tons) regions1.
Thus, the analysis of the current environ-
mental situation in Ukraine indicates that the
load on the components of the environment is
significant. This is caused by large resource-
intensiveness of national economy with a pre-
dominance of polluting, outdated technologies.
The specificity of the gross national product in-
dicates the raw material oriented industries.
Long-term comprehensive exploitation of natu-
ral resources has led to a loss of the ability of
ecosystem to heal itself, that is accompanied by
deterioration and depletion of mineral properties
of the main biosphere components, increasing
the negative impact on public health, deteriorat-
ing working conditions and overall quality of
life.
1 All calculations are carried out according to
the Statistical Yearbook of Ukraine for 2012 [13]
The grouping of regions of Ukraine is
made in terms of economic and environmental
conditions using cluster analysis. As the result
the following groups are received: 1) Autonom-
ous Republic of Crimea, Mykolaiv Region; 2)
Vinnytsia, Volyn, Zhytomyr, Kirovograd,
Rivne, Sumy, Ternopil, Kherson, Khmelnitsky,
Cherkasy, Chernivtsi and Chernihiv regions; 3)
Dnipropetrovsk and Donetsk regions; 4) Tran-
scarpathian, Ivano-Frankivsk, Kyiv, Lviv, Pol-
tava regions; 5) Zaporizhia region; 6) Lugansk,
Odessa and Kharkiv regions. The mean values
of the groups, constructed on standardized val-
ues, are shown in Fig. 1.
So, the groups significantly differ from
each other. The elements of the first group show
small values for all indicators except waste gen-
eration. The representatives of the third group
(industrial regions) are characterized by large
values of parameters, in contrast to the second
group, that consists of the regions with tradi-
tionally favorable ecological situation, but with
a less-developed heavy industry. Zaporizhia re-
gion refers to a particular group due to the spe-
cific character of the selected indicators. The
large part of industrial sector, availability of
nuclear power engineering has led to the large
volume of wastes and material costs.
Two types of rating are built for the over-
all assessment of the economic and ecological
situation in the regions of Ukraine. The rating
“A” (Table 1) defines the level of production
greening in regions. It is built on the basis of the
following indicators: materials consumption,
generation and accumulation of wastes, draining
of polluted wastewater per 1 UAH of industry,
local public expenditures on environmental pro-
tection per 1 UAH of industry. According to the
rating “A” the level of production greening is
sufficiently low across the whole country. Dif-
ferences in its regional values are caused by dif-
ferences in levels of concentration of industrial
production.
The rating “B” (Table 2) defines the level
of ecological load on the population of the re-
gion. It is based on the following indicators:
emissions of pollutants, carbon dioxide emis-
sions, generation and accumulation of wastes,
draining of polluted wastewater per 1 person.
–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 35
2014, № 1 (65)
-1,00
0,00
1,00
2,00
3,00
4,00
Population
Gross regional product in the
actual prices
Operating costs for the sale of
products
Material costs
Emissions of pollutants
Carbone dioxide emissions
Waste generation
Waste stored in specially
designated areas at the end …
Draining of polluted
wastewater
Local public expenditures on
environmental protection
1 група 2 група 3 група 4 група 5 група 6 група
Fig. 1. The mean values of obtained groups in 2012
Table 1
The rating (A) of regions of Ukraine in terms of greening of production
№ Region Integral Index
1 Kharkiv 1.365
2 Dnipropetrovsk 1.446
3 Odessa 1.493
4 Volyn 1.773
5 Donetsk 1.811
6 Kyiv 1.867
7 Transcarpathian 1.878
8 Lviv 2.002
9 Poltava 2.106
10 Chernivtsi 2.209
11 Rivne 2.223
12 Khmelnitsky 2.256
13 Zhytomyr 2.319
14 Lugansk 2.490
15 AR of Crimea 2.827
16 Kirovohrad 2.840
17 Chernihiv 2.841
18 Cherkasy 2.973
19 Ivano-Frankivsk 3.024
20 Mykolaiv 3.043
21 Vinnytsia 3.108
22 Ternopil 3.276
23 Zaporizhia 3.421
24 Sumy 3.458
25 Kherson 4.368
group 1 group 2 group 3 group 4 group 5 group 6
–––––––––––––––––––––––––– Економіка промисловості Economy of Industry ––––––––––––––––––––––––––
36 ISSN 1562-109X
2014, № 1 (65)
Table 2
The rating (B) of regions of Ukraine in terms of ecological security of the population
№ Region Integral Index
1 Chernivtsi 0.079
2 Volyn 0.085
3 Ternopil 0.154
4 Zhytomyr 0.159
5 Transcarpathian 0.160
6 Khmelnitsky 0.175
7 Rivne 0.179
8 Chernihiv 0.399
9 Kirovohrad 0.403
10 Odessa 0.407
11 Cherkasy 0.445
12 Vinnytsia 0.507
13 Kharkiv 0.648
14 Poltava 0.657
15 Kherson 0.765
16 Sumy 0.875
17 Kyiv 0.962
18 Lviv 0.994
19 Ivano-Frankivsk 1.102
20 AR of Crimea 1.200
21 Mykolaiv 1.460
22 Lugansk 1.512
23 Dnipropetrovsk 2.729
24 Zaporizhia 3.136
25 Donetsk 3.417
According to the rating “B” the first place
is taken by the Chernivtsi region, the last one –
by the Donetsk region. This situation is ex-
plained by the level of concentration of produc-
tion and pollution. It must be clearly understood
that the positive situation in some regions is
caused by the lack of polluting industries, but
not the efficiency of environmental activities.
Thus, the analysis confirms the existence
of significant anthropogenic impact on the envi-
ronment of Ukraine, which appreciably differs
by regions. This, in its turn, confirms the need to
develop a state strategy for sustainable regional
development in Ukraine.
It should be noted that there was devel-
oped the State Environmental Policy Strategy of
Ukraine till 2020 [14]. Its purpose is to stabilize
and improve the state of the environment in
Ukraine through the integration of environmen-
tal policy into socio-economic development of
Ukraine to ensure ecologically safe environment
for life and health of population and implement
ecologically sustainable system of nature man-
agement and preservation of natural ecosystems.
According to this document, the National Envi-
ronmental Policy of Ukraine is aimed at a num-
ber of strategic objectives (Table 3).
The strategy of State Environmental Poli-
cy of Ukraine includes steps of its implementa-
tion and instruments of this policy, such as: in-
tersectoral partnership; environmental examina-
tion; environmental audit; environmental man-
agement system, environmental labeling; envi-
ronmental insurance; technical regulation; stan-
dardization and registration in the field of envi-
ronmental protection, environmental manage-
ment and ensuring environmental safety; educa-
tion and scientific support for the formation and
implementation of national environmental poli-
cy; economic and financial mechanisms; envi-
ronmental monitoring and control in the field of
environmental protection and environmental
security; international cooperation in the field of
environmental protection and environmental
safety.
–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 37
2014, № 1 (65)
Table 3
Strategic goals and objectives of the National Environmental Policy of Ukraine
Strategic goals of
the National Envi-
ronmental Policy
Strategic objectives of the National Environmental Policy
1 2
1. Increasing the
level of public en-
vironmental
awareness
- creating national information system of environmental protection;
- increasing the share of environmental information and public service an-
nouncements with environmental orientation that are regularly distributed by the
media (till 2015 – by 15%, till 2020 – by 30% from the level of 2010);
- creating till 2015 a nationwide automated information system for ensuring
access to environmental information, till 2020 – system of environmental infor-
mation management, in accordance with EU standards;
- developing till 2012 and implementing till 2020 program to support projects of
environmental organizations and bringing the volume of funding: in 2015 – to the
level of at least 2% of the total expenditures of the State Fund for Environmental
Protection of Ukraine, in 2020 – to the level of at least 3% of expenditures;
- creating till 2015 system of environmental education;
- providing state support to creation and development of settlements, that use
energy and resources saving technologies of house building, and comprehensive
implementation of such technologies till 2015
2. Improving envi-
ronmental situation
and increasing lev-
el of environmental
safety
- protecting the air by reducing emissions of pollutants; defining target indica-
tors of content of hazardous substances in the air; optimizing the structure of
energy sector of the national economy by increasing the use of energy sources
with low carbon dioxide emissions;
- protecting water resources through implementation of basin-based integrated
management, reconstructing existing and creating new municipal wastewater
treatment plants;
- protecting land resources through reducing arable land; providing till 2015 full
consideration of environmental requirements in the process of land allocation
for placing objects of various fields of industry and solving issues related to
withdrawal (redemption), changing the purpose of land plots; development and
implementation of agricultural landscapes management system on the basis of
sustainable development till 2020;
- protecting forests through increasing the area of afforestation of territory up to
17% of the state territory till 2020;
- protecting geological environment through implementation of environmentally
friendly technologies of mining till 2020; ensuring land recultivation on the area
of at least 4.3 thousand hectares; ensuring the fullest possible use of extracted
minerals, minimizing waste during their production and processing;
- improving safety of waste management; increasing the volume of procurement,
disposal and use of waste as secondary raw materials by 1.5 times till 2020; en-
suring final disposal of accumulated unusable pesticides till 2020; creating sys-
tem of medical waste management till 2015
3. Achieving safe
for human health
state of environ-
ment
- creating system of automatic monitoring and strengthening environmental
monitoring of air quality till 2015;
- ensuring the full compliance with regulatory requirements for centralized
drinking water supply sources till 2015;
- introducing environmental labeling of products and food till 2020;
- developing state system of environmental monitoring through its moderniza-
tion, strengthening the coordination of activities of monitoring subjects, improv-
ing data management systems as a basis for decision-making
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Ending of Table 3
1 2
4. Environmental
policy integration
and improvement
of integrated envi-
ronmental man-
agement system
- implementing environmental management systems and preparing national tar-
get programs of industry greening, that provide technical re-equipment, the in-
troduction of energy-efficient and resource-saving technologies, low-waste,
waste-free and environmentally friendly manufacturing processes;
- developing and implementing system of incentives for businesses that imple-
ment environmental management, principles of corporate social responsibility,
apply environmental audit, certification of production, its quality in accordance
with international environmental standards, improve environmental performance
in line with established international environmental standards
So, implementation of this strategy will
help to increase the environmental awareness of
citizens of Ukraine, improve the environment to
a safe for human life level, permanently reduce
the level of dependence between economic de-
velopment and the deterioration of the environ-
ment, create a system of sustainable environ-
mental management, provide transition to a sys-
tem of integrated environmental management in
all sectors of the economy, reform the tax sys-
tem to reinforce the importance of environmen-
tal taxation, improve the state system of envi-
ronmental monitoring and system of information
support of decision-making process.
However, this strategy does not take into
account the specifics of development and tech-
nological burden in individual regions of
Ukraine. In addition, it seeks only to solve envi-
ronmental issues and is not associated with the
strategy of socio-economic development. This is
contrary to the essence of sustainable develop-
ment and holistic approach to solving economic
and environmental problems.
Removal of the first deficiency must be
made within the State Regional Development
Strategy, which was approved on November 21,
2013 at the meeting of the Cabinet of Ministers
of Ukraine [15]. This paper identifies three main
objectives of the state regional policy:
1. Increasing competitiveness of regions
(support of regional competitiveness is deter-
mined as the main element of development poli-
cy of Ukraine).
2. Territorial socio-economic integration
and spatial development (ensuring the unity of
whole national territory, leveling disparities in
regional development to ensure adequate quality
of life, regardless of geographic location).
3. Effective state management in the field
of regional development (it is necessary to
create a framework for implementation of effec-
tive regional policy, mechanisms and instru-
ments of state administration, regional develop-
ment, which would meet the requirements of
time and problems facing the region).
Analysis of this regulatory document
from the standpoint of sustainable development
has allowed to reveal significant shortcomings.
In spite of its sufficiently clear socio-economic
orientation it completely ignores the issue of
environmental development of the country and
problems caused by anthropogenic impact on
the environment. So, this document does not
solve the above-mentioned problem of sustaina-
ble regional development. Thus, Ukraine has no
state strategy based on a holistic approach to
solving the environmental problems of econom-
ic development. Existing documents highlight
some aspects of sustainable development, but
they are not complex.
Development strategy of European coun-
tries «Europe 2020: A European strategy for
smart, sustainable and inclusive growth» may be
an example of solving this problem.
Europe 2020 puts forward three mutually
reinforcing priorities:
1. Smart growth: developing an economy
based on knowledge and innovation.
2. Sustainable growth: promoting a more
resource efficient, greener and more competitive
economy.
3. Inclusive growth: fostering a high-
employment economy delivering social and ter-
ritorial cohesion.
Within the selected directions of devel-
opment Europe has set itself the following ob-
jectives:
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2014, № 1 (65)
the employment rate of the population
aged 20-64 should increase from the current
69% to at least 75%, including through the
greater involvement of women, older workers
and the better integration of migrants in the
work force;
investing 3% of GDP in R&D;
reducing greenhouse gas emissions by at
least 20% compared to 1990 levels or by 30%, if
the conditions are right; increasing the share of
renewable energy sources in final energy con-
sumption to 20%; and a 20% increase in energy
efficiency;
a target on educational attainment which
tackles the problem of early school leavers by
reducing the drop out rate to 10% from the cur-
rent 15%, whilst increasing the share of the pop-
ulation aged 30-34 having completed tertiary
education from 31% to at least 40% in 2020;
the number of Europeans living below the
national poverty lines should be reduced by
25%, lifting over 20 mln people out of poverty
[17].
Member States should adopt the strategy
"Europe 2020" to their particular situation. The
European Commission proposes them to trans-
form EU objectives into their national strategies.
Objectives reflect the essence of smart, sustain-
able and inclusive growth, but they are not ex-
haustive. In this regard, the Commission identi-
fies 7 directions of primary importance:
1. “Innovation Union” to improve
framework conditions and access to finance for
research and innovation so as to ensure that in-
novative ideas can be turned into products and
services that create growth and jobs.
2. “Youth on the move” to enhance the
performance of education systems and to facili-
tate the entry of young people to the labour mar-
ket.
3. “A digital agenda for Europe” to speed
up the roll-out of high-speed internet and reap
the benefits of a digital single market for house-
holds and firms.
4. “Resource efficient Europe” to help
decouple economic growth from the use of re-
sources, support the shift towards a low carbon
economy, increase the use of renewable energy
sources, modernize our transport sector and
promote energy efficiency.
5. “An industrial policy for the globaliza-
tion era” to improve the business environment,
notably for small and medium enterprises
(SME), and to support the development of a
strong and sustainable industrial base able to
compete globally.
6. “An agenda for new skills and jobs” to
modernize labour markets and empower people
by developing their of skills throughout the life-
cycle with a view to increase labour participa-
tion and better match labour supply and demand,
including through labour mobility.
7. “European platform against poverty”
to ensure social and territorial cohesion such that
the benefits of growth and jobs are widely
shared and people experiencing poverty and so-
cial exclusion are enabled to live in dignity and
take an active part in society.
These targets are interrelated. For in-
stance, better educational levels help employa-
bility and progress in increasing the employment
rate helps to reduce poverty. A greater capacity
for research and development as well as innova-
tion across all sectors of the economy, combined
with increased resource efficiency will improve
competitiveness and foster job creation. Invest-
ing in cleaner, low carbon technologies will help
environment, contribute to fighting climate
change and create new business and employ-
ment opportunities.
Sustainable growth in the context of Eu-
ropean development strategy means building a
resource efficient, sustainable and competitive
economy, exploiting Europe's leadership in the
race to develop new processes and technologies,
including green technologies.
In the environmental sector, the European
Commission distinguishes two main directions:
“Resource efficient Europe” and “An industrial
policy for the globalisation era”.
Flagship Initiative: "Resource efficient
Europe"
The aim is to support the shift towards a
resource efficient and low-carbon economy that
is efficient in the way it uses all resources. The
aim is to decouple economic growth from re-
source and energy use, reduce CO2 emissions,
enhance competitiveness and promote greater
energy security.
At EU level, the Commission will work:
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40 ISSN 1562-109X
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to mobilise EU financial instruments (e.g.
rural development, structural funds, R&D
framework programme) as part of a consistent
funding strategy, that pulls together EU and na-
tional public and private funding;
to enhance a framework for the use of
market-based instruments (e.g. emissions trad-
ing, revision of energy taxation, state-aid
framework, encouraging wider use of green pub-
lic procurement);
to present proposals to modernise and de-
carbonise the transport sector thereby contribut-
ing to increased competitiveness. This can be
done through a mix of measures e.g. infrastruc-
ture measures such as early deployment of grid
infrastructures of electrical mobility, intelligent
traffic management, better logistics, pursuing
the reduction of CO2 emissions for road ve-
hicles, for the aviation and maritime sectors in-
cluding the launch of a major European “green”
car initiative which will help to promote new
technologies including electric and hybrid cars
through a mix of research, setting of common
standards and developing the necessary infra-
structure support;
to accelerate the implementation of stra-
tegic projects with high European added value to
address critical bottlenecks, in particular cross
border sections and inter modal nodes (cities,
ports, logistic platforms);
to complete the internal energy market
and implement the strategic energy technologies
plan, promoting renewable sources of energy in
the single market would also be a priority;
to present an initiative to upgrade Eu-
rope's networks, including Trans European
Energy Networks, towards a European supergr-
id, “smart grids” and interconnections in particu-
lar of renewable energy sources to the grid. This
includes to promote infrastructure projects of
major strategic importance to the EU in the Bal-
tic, Balkan, Mediterranean and Eurasian regions;
to adopt and implement a revised Energy
Efficiency Action Plan and promote a substan-
tial programme in resource efficiency (support-
ing small and medium enterprises as well as
households) by making use of structural and
other funds to leverage new financing through
existing highly successful models of innovative
investment schemes; this should promote
changes in consumption and production pat-
terns;
to establish a vision of structural and
technological changes required to move to a low
carbon, resource efficient and climate resilient
economy by 2050 which will allow the EU to
achieve its emissions reduction and biodiversity
targets; this includes disaster prevention and
response, harnessing the contribution of cohe-
sion, agricultural, rural development, and mari-
time policies to address climate change, in par-
ticular through adaptation measures based on
more efficient use of resources, which will also
contribute to improving global food security.
At national level, Member States will
need:
to phase out environmentally harmful
subsidies, limiting exceptions to people with
social needs;
to deploy market-based instruments such
as fiscal incentives and procurement to adapt
production and consumption methods;
to develop smart, upgraded and fully in-
terconnected transport and energy infrastruc-
tures and make full use of ICT;
to ensure a coordinated implementation of
infrastructure projects, within the EU Core net-
work, that critically contribute to the effective-
ness of the overall EU transport system;
to focus on the urban dimension of trans-
port where much of the congestion and emis-
sions are generated;
to use regulation, building performance
standards and market-based instruments such as
taxation, subsidies and procurement to reduce
energy and resource use and use structural funds
to invest in energy efficiency in public buildings
and in more efficient recycling.
Flagship Initiative: "An industrial policy
for the globalisation era"
Industry and especially small and medium
enterprises have been hit hard by the economic
crisis and all sectors are facing the challenges of
globalisation and adjusting their production
processes and products to a low-carbon econo-
my. The impact of these challenges will differ
from sector to sector, some sectors might have
to “reinvent” themselves but for others these
challenges will present new business opportuni-
ties. The Commission will work closely with
stakeholders in different sectors (business, trade
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2014, № 1 (65)
unions, academics, NGOs, consumer organisa-
tions) and will draw up a framework for a mod-
ern industrial policy, to support entrepreneur-
ship, to guide and help industry to become fit to
meet these challenges, to promote the competi-
tiveness of Europe’s primary, manufacturing
and service industries and help them seize the
opportunities of globalisation and of the green
economy. The framework will address all ele-
ments of the increasingly international value
chain from access to raw materials to after-sales
service.
At EU level, the Commission will work:
to establish an industrial policy creating
the best environment to maintain and develop a
strong, competitive and diversified industrial
base in Europe as well as supporting the transi-
tion of manufacturing sectors to greater energy
and resource efficiency;
to develop a horizontal approach to indus-
trial policy combining different policy instru-
ments (e.g. "smart" regulation, modernised pub-
lic procurement, competition rules and standard
setting);
to improve the business environment, es-
pecially for SMEs, including through reducing
the transaction costs of doing business in Eu-
rope, the promotion of clusters and improving
affordable access to finance;
to promote the restructuring of sectors in
difficulty towards future oriented activities, in-
cluding through quick redeployment of skills to
emerging high growth sectors and markets and
support from the EU's state aids regime and/or
the Globalisation Adjustment Fund;
to promote technologies and production
methods that reduce natural resource use, and
increase investment in the EU's existing natural
assets;
to promote the internationalisation of
SMEs;
to ensure that transport and logistics net-
works enable industry throughout the Union to
have effective access to the Single Market and
the international market beyond;
to develop an effective space policy to
provide the tools to address some of the key
global challenges and in particular to deliver
Galileo and GMES;
to enhance the competitiveness of the Eu-
ropean tourism sector;
to review regulations to support the transi-
tion of service and manufacturing sectors to
greater resource efficiency, including more ef-
fective recycling; to improve the way in which
European standard setting works to leverage
European and international standards for the
long-term competitiveness of European industry.
This will include promoting the commercialisa-
tion and take-up of key enabling technologies;
to renew the EU strategy to promote Cor-
porate Social Responsibility as a key element in
ensuring long term employee and consumer
trust.
At national level, Member States will
need:
to improve the business environment es-
pecially for innovative SMEs, including through
public sector procurement to support innovation
incentives;
to improve the conditions for enforcing
intellectual property;
to reduce administrative burden on com-
panies, and improve the quality of business leg-
islation;
to work closely with stakeholders in dif-
ferent sectors (business, trade unions, academ-
ics, NGOs, consumer organisations) to identify
bottlenecks and develop a shared analysis on
how to maintain a strong industrial and know-
ledge base and put the EU in a position to lead
global sustainable development.
Thus, the analysis of the strategy "Europe
2020" confirms its holistic platform, complexity
and focus on the coordination of social, econom-
ic and environmental objectives of society de-
velopment. The document clearly identify both
general priorities and specific goals and objec-
tives facing both to the whole European Union
and to each individual region.
Analysis of above mentioned documents
shows that the integration of environmental pol-
icy into sectoral policies, obligatory considera-
tion of the environmental component during
preparation of development strategies, plans and
programs, introduction of environmental man-
agement at enterprises, the greening of econom-
ic activity is the way to modern sectoral envi-
ronmental policy, implemented in Western and
Central Europe.
However, in Ukraine the process of inte-
grating environmental policy is at the initial
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42 ISSN 1562-109X
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stage. It is necessary to develop the State strate-
gy of sustainable development, which should be
based on the following principles:
1) complexity and security: economic
development programs should take into account
the full range of possible environmental threats,
risks and their economic, social and environ-
mental consequences;
2) scientific validity: strategic decision-
making in all areas should be based on research
and practical developments in the field of sus-
tainable development;
3) preclusiveness: preventing damage,
that includes economically effective prevention
of the negative impact on the environment;
4) innovativeness: the priority of innova-
tive technologies and equipment, focused on
creating environmentally friendly products;
5) avoidance of waste: complex use of
natural resources with maximum approach to
cleaner production of economic goods, organi-
zation of industrial cycles by analogy with natu-
ral ecosystems on the basis of avoidance of
waste, recycling and cooperation;
6) balance between economic, social and
environmental needs: maintenance of volume of
natural resources use and pollutants within the
regenerative and assimilative capacity of ecosys-
tems;
7) social justice: guaranteeing the equali-
ty of citizens before the law, equal opportunities
to achieve financial, environmental and social
welfare;
8) motivation: creating the process of
formation of organizational, social and econom-
ic conditions that are constantly updated due to
the occurrence of pulses, existing motives and
intentions set and achieve strategic objectives;
9) internalization of externalities: com-
pensation for harm, damaging components of
the environment and public health, that is made
by entities (physical or legal), whose activities
led to a negative impact on the environment;
10) transparency of management: con-
sideration of public opinion during determina-
tion of economic and environmental regional
policy.
Priority directions for sustainable regional
development should be directed to:
implementation of cluster oriented indus-
trial policy strategy to improve the competitive-
ness and productivity of the cluster members
through innovation and synergy;
intensification of innovation and invest-
ment model of industrial upgrading in order to
increase production greening, import substitu-
tion, technological renovation of fixed assets
and provision of energy efficiency;
construction of industry structure that
meets the latest international requirements and
national priorities of socio-economic develop-
ment – technology intensity, research intensity
and competitiveness;
introduction of special regimes to pro-
mote domestic production and export of home
industrial products using the latest technologies
with deep processing of natural resources, high
added value and output of final consumption
products;
strengthening of fiscal discipline, optimi-
zation of budget costs and improvement of effi-
ciency of budget planning while financing pro-
grams of industrial development based on crite-
ria of environmental safety;
greening of the tax system, shift of em-
phasis in taxation from final results on resource
costs;
implementation of structural reforms
aimed at reorienting the production from raw
materials to the finished process cycles;
strengthening of responsibility for ineffi-
cient use of all resources;
extension of waste recycling technologies;
educational reform towards improving the
quality of knowledge, development of eco-
oriented ethics;
formation of new social and personal psy-
chology of employers and workers, focusing on
compliance with the requirements of sustainable
development;
implementation of the range of financial
and economic measures that promote industrial
transition to sustainable development principles.
Thus, the practical implementation of the
proposed recommendations for a sustainable
regional development will promote a process of
changing qualitative characteristics of socio-
economic systems within environmental con-
straints to provide opportunities to meet the
needs of future generations.
Further research can be directed towards
building economic and mathematical model,
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ISSN 1562-109X 43
2014, № 1 (65)
which allows to obtain different scenarios for
sustainable development of regions.
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