Due to the impact of the war and the new dynamics of European integration processes, the Government has updated the State Strategy for Regional Development (SSRD) for 2021 – 2027. The new document is territorially oriented, takes into account the challenges of today and the tasks of European integration, and relies on the real needs of regions and communities. The next step is to bring all regional strategies in line with the SSRD. These should be strategic documents of a new quality. This is exactly the kind of document that EasyBusiness experts have developed for Odesa.

 

The updated Strategy for the Restoration and Development of the Odesa Region for the period 2024-2027 (Strategy) is a plan for the development of the region, which takes into account national interests, the military agenda, the priorities of the European Union, and the principles of strategic documents of the global level.

 

For the development of the Strategy, EasyBusiness experts conducted one of the deepest studies of the Odesa region in all the years of independence. More than 100 interviews were conducted with large groups of stakeholders – from businesses and educators to representatives of local self-government bodies. Surveys were conducted in each of the 91 communities of the region, and responses were received from 88 communities. 25 communities were involved in the development of the Strategy: discussions and round tables were held with representatives of local authorities, business, education, the agricultural sector, and socially vulnerable groups of the population.

 

The Odesa region is one of the largest in the country, while at the same time very heterogeneous. Therefore, we divided the region into three micro-regions – North, South, and Central part (Odesa agglomeration). And we identified the main characteristics, advantages, challenges, priority issues for resolution in the short-term perspective, and strategic development issues for each micro-region.

 

Also, for the development of the Strategy, a survey was conducted — 1,771 interviews with residents of the region: 331 IDPs and 400+ respondents in each micro-region.

 

The analysis of the situation in the Region before the full-scale invasion and in the current period made it possible to highlight three key spheres of influence on the development of the region: economy, human capital, and economic governance.

 

In each of these three dimensions, we identified key problems. Thus, we have 10 main things, the solution of which will give the region a boost for successful economic development and transformation:

 

1. Insufficient level of attraction of foreign direct investment (FDI) to high-tech industries leads to dependence on commodity exports.
2. The specifics of the geographical location and natural-resource potential, as well as problems with connectivity, create disparities in the socio-economic development of the three micro-regions.
3. Despite the large flow of goods and services through the Odesa region, it plays only a transit role and does not use opportunities to create an industrial, innovation, and financial hub based on the region.
4. Infrastructure for living, working, and development is not a magnet for attracting and retaining people in the region.
5. The seasonality of the economy and the mismatch of qualifications with market requirements generate a low level of participation of the population in the labor market.
6. As a result of the full-scale invasion, problems of vulnerable population groups have worsened.
7. The multiethnic composition of the region actualizes the need for intercultural integration.
8. The lack of a consolidated vision of the future and a coalition around it does not allow for ensuring the sustainability of regional development.
9. Communities do not have sufficient capacity to convert existing ideas into development projects, attract funding for them, and ensure their implementation.
10. Insufficient transparency of governance processes leads to the perception of corruption as a key obstacle to regional development.

 

The Strategy defines three horizons for the implementation of solutions:

 

• Urgent critically important survival decisions
• Changes for the development of the region
• Long-term decisions that go beyond 2027 and will become preparation for a breakthrough that will be possible after victory and the completion of Ukraine’s European integration path.

 

We also proposed a mechanism for accelerating the implementation and adaptation of the strategy, which is based on the involvement of the maximum number of stakeholders in the development of specific programs and projects. Each such stakeholder group will have a personal interest in the implementation of their part of the Strategy, thus acting as a guarantor and driver of change.

 

The implementation of the Strategy will ensure balanced regional development, compensate for territorial disparities, and provide each community with the opportunity to contribute to building a strong regional economy and benefit from shared success.

 

By the same methodology and principles, it would be advisable to update the Development Strategies for each region of Ukraine.