METHODS OF ECONOMIC STIMULATION FOR THE RECOVERY AND DEVELOPMENT OF UKRAINE'S CONSTRUCTION SECTOR
Authors:   Odesa State Academy of Civil Engineering and Architecture, Rapach Stanislav 
Published: February 2025

This article addresses the pressing challenges faced by Ukraine's construction sector amid the ongoing war and explores the economic mechanisms required for its recovery and sustainable development. The construction industry, a cornerstone of Ukraine's economy, has experienced unprecedented destruction due to Russian aggression, with billions of dollars in damages to residential and infrastructure facilities. Despite these challenges, the sector remains pivotal in driving economic recovery, creating jobs, and meeting urgent social and housing needs. The article examines the key obstacles hindering the recovery of the construction sector, including labor shortages due to mobilization and migration, the collapse of investments, rising costs of construction materials, logistical disruptions, and the destruction of vital infrastructure. Furthermore, it highlights the compounded risks of operating in a war-torn economy, such as limited access to credit and heightened insurance costs. The analysis underscores the need for robust state intervention and innovative economic solutions to restore the sector's productivity and competitiveness. A variety of economic mechanisms are proposed, such as tax incentives tailored to construction enterprises, state-financed housing and infrastructure programs, the promotion of public-private partnerships, and the creation of a favorable investment climate to attract international and domestic capital. Specific programs, including mortgage initiatives like "eOselya" and compensation schemes under "eVidnovlennia," are discussed as examples of effective policy instruments. The article also highlights the importance of modernizing production capacities, developing local industries for construction materials, and integrating international best practices to ensure resilience and efficiency in reconstruction efforts. The role of state regulation in balancing market forces is analyzed in detail. The study advocates for policies that align public and private sector objectives, promoting competitive dynamics while addressing market failures caused by the war. Transparency in financing and project management is emphasized as a critical factor for gaining donor trust and securing international aid. Innovative platforms, such as the DREAM system, which offers real-time project monitoring and accountability, are presented as essential tools for managing large-scale recovery efforts. The article concludes by identifying future research directions and policy priorities. These include the development of economic models for labor market recovery, strategies for integrating migrant workers, and frameworks for ensuring financial sustainability in reconstruction. Lessons from post-war recovery in other countries, such as Germany’s Marshall Plan experience, are analyzed for potential adaptation in Ukraine. This extended analysis demonstrates that rebuilding Ukraine’s construction sector requires not only financial and material resources but also comprehensive and coordinated policies that address the interconnected challenges of labor, investment, and technology. By fostering synergy between government initiatives and private sector engagement, Ukraine can achieve sustainable growth and rebuild its infrastructure to meet modern needs.