B. Foreign investment as a factor of regional development // Finance of Ukraine.

B. Foreign investment as a factor of regional development // Finance of Ukraine.

G. cites the advantages and disadvantages of foreign investment [3, 346].

According to him, the advantages are reducing the level of import dependence, stimulating the development of export potential, accelerating the pace of economic restructuring and market reforms, introduction of modern technologies, improving the balance of payments, https://123helpme.me/narrative-essay-topics/ increasing capital investment and reducing their accumulation, increasing employment and skills. , providing foreign organizational and managerial experience.

It should also be noted that the disadvantages of foreign investment are increasing the country’s dependence on foreign capital, the transfer of profits abroad, ousting domestic producers and suppliers, increasing competition in the market, rigid exploitation of local raw materials.

At the same time, Borshchevsky VV, touching on the motivational aspects of foreign investment, in terms of its importance for the modern economy, expresses the opinion that we should first pay attention to the simple truth that to achieve stable economic growth and ensure high economic development. or a particular region, it is necessary for enterprises located in the relevant territory to increase production or services. [4, 108-110] Because, the profitability of enterprises is the increase of tax payments to the budget and social contributions, and the development of regional infrastructure, and the adaptation of new technologies, innovations and management systems to domestic conditions (Fig. one).

   Fig. 1. Multiplication of the economic effect of investment

We must also take into account the current negative trends in Ukraine, which link foreign investment with a kind of expansion of transnational corporations, a tool for redistribution of labor, intellectual and natural resources in favor of developed countries. Another problematic issue, according to Borshchevsky VV, is the level of environmental safety of foreign investment projects. After all, in Ukraine it has become a stereotypical opinion that foreigners have only ecologically dirty enterprises on Ukrainian territory.

Shapovalova OV defining the essence of investment resources, expresses the opinion that they are one of the most important factors of economic development for any country [7, 68]. The economies in need of foreign investment are in a state of transformation, where private and public investment resources are most in short supply.

Given the positive aspects of foreign investment, it becomes important to plan investment activities within individual regions, in terms of intensified investment, at the stage of economic recovery. This will allow more targeted to attract and use investment resources, to form the necessary construction base, to rationally use the potential resources of the region. Because the state and local authorities are in the process of transferring financial responsibility to the local level.

The main task of the local government is to support the investor in his intentions to invest in the economy of his country. Such support can be provided in different forms, depending on the stage of the investment decision and the intentions of the investor [4, 108-110].

Incentive support is a series of measures aimed at bringing to a potential investor information about investment opportunities in a particular region, the available benefits and conveniences for him, the priorities of public policy to attract investment resources abroad.

Fundamental support is needed for investors who have decided on the need to invest in the economy of a state (region), but are not confident in the favorable attitude of local authorities. objectivity of control services, etc.

It is especially important in the realities of Ukrainian business, when the not very favorable image in the international arena raises numerous doubts and prejudices of foreign investors. Such support may consist of personal meetings of heads of government bodies and their structural subdivisions with foreigners, discussion of common problems, coordination of positions on the implementation of a project.

Thus, on the basis of negotiations between the leadership of the Zakarpattia Regional State Administration and representatives of Volkswagen using arguments and principled support on the model of work in the SEZ "Zakarpattia" of world-famous companies "ENO" "Fletronics" "Fisher" and taking into account the successful implementation of the project of a modular series of Skoda cars, the construction of the Volkswagen concern’s Eurocar plant has begun near Chop.

Preliminary support is used at the initial stage of investment project implementation, when the investor moves from conceptual solutions to practical project implementation activities and faces a number of regulatory problems still unknown to him. Such support may consist of the provision of all possible informational and advisory assistance by the relevant government institutions.

Procedural support is a set of measures and actions designed to promote the successful implementation of an existing investment project. It consists in solving current problems, providing assistance in better orientation in the specifics of the legal framework of the state, and so on.

The purpose of such support is to create in the investor a firm belief that all previous stages of preparation and development of the investment project were not only a means to achieve economic goals and meet the interests of local authorities. It shows the readiness of the host country to develop cooperation on a long-term basis and is a good incentive for further growth of investment by the same investor, or becomes a signal for the entry into the economy of the region of other investment companies.

For example, the implementation of the investment project of the company "Leoni" in Lviv region is accompanied by regular meetings of the management of the Ukrainian representative office of the company with local and regional authorities, discussion of problems, development of common positions on their solution.

Work to support foreign investment not only provides growth in foreign direct investment in the economy of a particular region. At the same time, it contributes to increasing the financial capacity of domestic investors. After all, due to globalization, cross-border investment flows are becoming sustainable, and the corresponding specialization of the territory is recognized internationally. As a result, more and more financial resources are involved in the development of infrastructure, related industries, which does not help increase the competitiveness of domestic companies operating in these sectors of the economy.

After analyzing the above, we came to the conclusion that the lack of its own economic resources requires Ukraine to find additional sources of funding. In the current conditions of Ukraine, investment should become the most important means of overcoming the long-term economic crisis, achieving real structural turmoil, technical re-equipment, improving the quality of economic activity and living standards.

Today, foreign investment is the resource that, in any case, in the short term, can most significantly contribute to improving the efficiency of enterprises, and hence the development of relevant cities, improving the social protection of citizens.

Local authorities should make every effort to intensify investment activities.


Borsch LM Investments in Ukraine: Status, problems and prospects. – K.: TV "Knowledge" KOO, 2002. -318p. Mayorova TV Investment activity. Teaching. Manual. -Kyiv: CUL, 2003 .– 376p. Fedorenko VG, Goyko AF Investment Studies: Textbook / Ed. VG Fedorenko. – K.: MAUP, 2000. – 408s.: Il. – Bibliogr .: p. 399-402 Borshchenko VV Foreign investments as a factor of regional development // Finance of Ukraine. – 2003. -№ 10. – pp. 108-115. Didenko Ya. O. Improvement of foreign direct investment // Finance of Ukraine. – 2001. – No. 12. – p. 96-105 Denisenko N. Opportunities to intensify investment in modern conditions. // Economic management: theory and practice. – 2003. -№ 8. – p. 28-31 Shapovalova OV The role of local authorities in creating a favorable investment climate in Ukraine // Finance of Ukraine. – 2004. – No. 7. – with. 68-74.


Subjects of social policy: the state. Abstract

Subjects of social policy, as well as social governance in general, have a dominant influence. The multifaceted structure of such subjects, the complexity of their relationship in the process of implementing social policy provide a clear division of tasks, functions and competencies between them

Social policy actors need to maintain the necessary relationship between its components, applied forms and means of influencing the object, as well as coordinate the efforts of state, political, public, economic and other organizations, labor collectives and the unity of institutional and other actors …

This requires the separation in the system of the main coordinating entity, which would combine the efforts and multifaceted activities of other participants in this process. Among the institutional structures (institutionalization is a process of streamlining and formalizing social ties) that implement social policy in this area, the state plays a crucial role. The state is the main subject of social policy, which is called to play a coordinating, organizing role in regulating the processes of functioning and development of social life. In terms of potential, the state as a subject of social policy outweighs the capabilities of other actors in this process.

For a long time, the activity of the state as a subject of social policy in Ukraine was inefficient and sometimes destructive, which hampered the full process of social development. The main manifestations of such social policy of the state were ignoring the social needs of man, disregard in social policy of its interests; imposing on a person such rules of social behavior and activity that limited his autonomy and made it impossible to freely choose ways of self-realization of their own social potential; reproduction of the monotony of social – social, economic, political, spiritual – relations, which limited, hindered the disclosure of social, spiritual potential of man; formation of social alienation of a person from a full-fledged social existence.

Comments are closed.