WAYS OF IMPLEMENTING A COMPLEX APPROACH TO INCREASE THE COMPETITIVENESS OF UKRAINE
Authors:   Alfred Nobel University, Mahdich Alisa S. , Zadoia Oleksandr A. ,   Alfred Nobel University, Novikov Artem M. ,   Igor Sikorsky Kyiv Polytechnic Institute
Published: December 2024

The study focuses on examining the key factors influencing the competitive state of
Ukraine’s socio-economic model at the current stage of development. An analysis of major
macroeconomic parameters on the eve of Russia’s full-scale invasion revealed substantial
potential for economic recovery following the losses incurred due to COVID-19 pandemic
restrictions. Taking into account recent European Union reforms aimed at enhancing
competitiveness based on the European Commission’s Communication to the European
Parliament, the Council, the European Economic and Social Committee, and the Committee
of the Regions, titled «Long-term competitiveness of the EU: looking beyond 2030,» certain related directions for implementing relevant transformations in Ukraine have been identified.
As a result, the authors developed a comprehensive approach to enhance the competitiveness
of Ukraine. Correspondingly, possible pathways for implementing specific components of
this comprehensive approach were proposed. It has been determined that, through incentives
involving public and business influence on the elite, it is necessary to ensure the development,
implementation, and monitoring of the most urgent reforms, namely: security reform,
institutional reform, infrastructure reconstruction, and innovation reform. The most critical
steps were identified, primarily involving the deepening of cooperation with foreign partners
at both business and governmental levels. The need for decisive action against corruption in
all areas of life and the urgent institutional reform required was also highlighted. Using G.
Hofstede’s cultural dimensions theory, a regression analysis was conducted to explore the
relationship between institutional quality ratings from the “Global Competitiveness Index” and
Ukraine’s cultural dimension values. Based on these calculations and the evaluation of statistical
correlation density through the determination coefficient, it was found that higher individualism
correlates with higher institutional quality, while higher power distance correlates with lower
institutional quality. The dependency of institutions on other cultural dimensions was too weak
to indicate a meaningful relationship; however, graphical analysis of long-term orientation and
uncertainty avoidance suggested a shared dynamic. Three main directions for implementing
institutional reform were proposed: fostering civic patriotism among the population,
combating the old, corrupt, anti-national elite (oligarchs), and cultivating patriotic meritocrats
as replacements. Meeting these conditions would establish a strong foundation for further
development of a rule-of-law state. Regarding infrastructure reconstruction and innovation
reform, plans for modernization and digitalization were proposed. Particular attention should
be paid to implementing and utilizing modern tools to leverage the full spectrum of financial
and stock market opportunities. The implementation of modern educational approaches at all
levels is also of great importance. The successful combination and implementation of these
proposed processes will lead to increased productivity and competitiveness. The driver of
positive changes should be Ukrainian business and civil society: entrepreneurs understand
what is needed for dynamic growth, and citizens know what is required for a decent life.