Ukraine’s economic map has always been uneven due to regional disparities in development. These imbalances were rooted in Soviet times and deepened throughout the years of renewed independence.

The war has further sharpened this imbalance:

• Western regions have become gateways to the EU, integrating into the European market.
• The East and South have lost much of their industry and require a new economic model.
  Massive population displacement and the relocation of more than 19,000 businesses have reshaped the country’s regional economic structure.

All of this is happening in the context of Ukraine’s active EU integration. It is clear that the old model of regional policy is no longer suitable for wartime realities or for the reconstruction process.

Ukraine’s recovery must take into account the unique features of each region to avoid reviving outdated and ineffective models. Each region should be provided with its own investment passport and economic profile across four sectoral groups:

• Resilience sectors (agriculture, logistics, energy)
• Recovery sectors (infrastructure, construction)
• Growth sectors (manufacturing, industry)
• The new economy (IT, R&D, biotechnology).

At the center of this approach is the private sector, as business will drive reconstruction.

How can Ukraine seize this opportunity to relaunch its regional economic policy and succeed in rebuilding?

Read more in the article by Dmytro Lyvch and Andrii Diakiv “Ukraine’s Economic Geography is Changing: What Should the New Approach to Regional Development Look Like?” for ZN.UA.