In Ukraine, the main law that defines the legal, economic and organizational principles of state regional policy to stimulate regional development and poverty depressed areas is the Law of Ukraine «About the promotion of regional development». According to the Law of state policy on promotion of regional development is primarily for backward regions, which are considered part of the region or (industrial or rural city of regional significance or more areas of regional significance), the level of which the indicators hereby, the lowest among the areas that type.
The government has decided to expand the group of territories that are recognized as depressed and giving them this status, August 8, 2012 The purpose of this paper is to bring Procedure for monitoring the socio-economic performance of regions, districts and cities of regional, republican, in the Autonomous Republic of Crimea for recognition of depressed areas, approved by the Cabinet of Ministers of Ukraine dated March 2, 2010 № 235, in accordance with the Law of Ukraine «About amending the Law of Ukraine» On the promotion of regional development «on the expansion of areas that are recognized as depressed and giving them this status» which came into force on January 1, 2012.
Territory is given depressive status in order to create legal, economic and organizational basis for the adoption by state and local governments, special measures to encourage the development of such areas.
Recognized depressed industrial and rural areas and cities of regional importance, the corresponding figures of which correspond to both the criteria set out in part one of this article.
To overcome the depressed area central body of executive power on economic policy with other central executive bodies, relevant local authorities and local self-developed application. This program is approved by the Cabinet of Ministers of Ukraine.
Determination of state support in the form of depressed areas equalization based on normative budgetary provision settlements.
The object of government support of depressed regions should be not local governments, and businesses should be people who are in the area.
Establishment of a special regime for investments in depressed regions mandates consideration of certain priority sectors (and even businesses), the characteristics of reproduction processes, willingness to upgrade production potential efficiency possible costs in the long-term development.
State investment policy in depressed regions should be conducted in conjunction with other anti-crisis measures of overall value (general improvement of the economic situation, the creation of stable conditions for the effective functioning of the market mechanism, providing conditions for the formation of progressive-industrial proportions). This will create conditions for the normal functioning the region’s economy in the future.
It is advisable to allocate wholly or partly depressed regions and carry with them a variety of public investment policy and draw up a register of such regions, which is periodically updated. Investment resources should be directed first of all at the development of depressed regions, which marked the revival of the relative investment motivations are sufficient manpower, relatively favorable political and environmental conditions. This will prevent wasting money by numerous objects that will enable them to quickly learn and ensure timely payback.
In Ukraine, where most of the regions can be seen as backward, especially important to find the optimal combination of national and regional interests. Giving budget support areas should be based on the priorities of securing and accelerating overall economic growth and the need for convergence of inter-regional differences in the conditions of the population.
In terms of restructuring of the Ukrainian economy pressing issue is the need for large investments. Activation of the investment process is critical to the successful continuation of the socio-economic transformation in Ukraine.