Strategies of Social and Economic Development of Regions of Ukraine

Abstract

Social and economic development is a difficult process in which positive and negative factors interact that causes rises and recessions in development of territories and public communities. Indicators of rating act as indicators of efficiency of management decisions at the central and local levels. However, the level of economic development doesn’t coincide with social development in most of regions of Ukraine. The purpose of article is adaptation of a matrix method to rating estimates of social and economic development of regions for identification of regional distinctions, definition of priorities and strategic management of development of regions. The economic development of the regions was estimated by GRP per capita, the average salary of employees and the unemployment rate (according to the ILO methodology). Social development is characterized by the number of people enrolled in higher education institutions per 10,000 population; coefficient of incidence of the population; volumes of emissions of pollutants in atmospheric air, thousand tons; crime rates. The multidimensional average method with the standardization of indicators based on the variation range was used to calculate the integral indicators of economic and social development. On the basis of integral coefficients, the ranking of regions according to economic and social development was executed. It is established that for the regions of Ukraine there is a characteristic imbalance between economic and social development, which is connected, first of all, with different structure of the economy and territorial differences of regions. The combination of results of economic and social development of regions was proposed with the help of building a matrix as a tool for strategic management. In the graphs (vertically), the level of economic development is singled out, in lines (horizontally) the level of social development of the regions is singled out, with the identification of three groups: low, medium and high levels. Regions with low economic and low social level get to 1 square; in 2 – with low economic and average social; in 3 – with low economic and high social; in 4 – with average economic and low social; in 5 – with average economic and average social; in 6 – with average economic and high social; in 7 – with high economic and low social; in 8 – with high economic and average social; in 9 – with high economic and high social level. Calculations show that in Ukraine no region was detected with simultaneous high levels of economic and social development (the 9th square). The vast majority are regions with average economic and average social development and also regions “below or above an average” level of development, that is one of the directions (economic or social) is “low”, and the second, accordingly, “average”. The position of the region in a matrix specifies what development strategy should be chosen. The economic and social development is higher; the capacity of the region for increase in the standard of living of the population is higher. High economic and social development is followed by the high potential of the region to increase the standard of living of the population.