The Concept of Consolidating Ukraine's Resources and Increasing the Efficiency of Their Use

ISSN:2226-2172 №6(82), 2025 ECONOMICS: time realities 25 DOI: 10.15276/ETR.06.2025.3 DOI: 10.5281/zenodo.18057420 UDC: 330.341.1 JEL: E22 THE CONCEPT OF CONSOLIDATING UKRAINE’S RESOURCES AND INCREASING THE EFFICIENCY OF THEIR USE КОНЦЕПЦІЯ КОНСОЛІДАЦІЇ РЕСУРСІВ УКРАЇНИ І ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ ЇХ ВИКОРИСТАННЯ Borys V. Burkynsky, Doctor of Economic Sciences, Professor State Organization "Institute of Market and Economic & Ecological Research of the National Academy of Sciences of Ukraine", Odesa, Ukraine ОRCID: 0000-0001-9303-0898 Email: o[email protected] Valery F. Goryachyk, Doctor of Economic Sciences, Professor State Organization "Institute of Market and Economic & Ecological Research of the National Academy of Sciences of Ukraine", Odesa, Ukraine ORCID: 0000-0001-7083-0863 Email: valeriy.gorya[email protected] Natalya L. Shlafman, Doctor of Economic Sciences, Professor State Organization "Institute of Market and Economic & Ecological Research of the National Academy of Sciences of Ukraine", Odesa, Ukraine ORCID: 0000-0003-2847-3267 Еmail: na[email protected] Olena M. Kryvtsova, PhD in Public Administration, Associate Professor State Organization "Institute of Market and Economic & Ecological Research of the National Academy of Sciences of Ukraine", Odesa, Ukraine ORCID: 0000-0001-7131-9287 Еmail: ya[email protected]om Received 18.10.2025 Буркинський Б.В., Горячук В.Ф., Шлафман Н.Л., Кривцова О.М. Концепція консолідації ресурсів України і підвищення ефективності їх використання. Оглядова стаття. Ресурси є ключовим фактором розвитку економіки, однак через неефективну політику та воєнні дії Україна втратила значну частину матеріальних і людських ресурсів. Це потребує відновлення, нагромадження та підвищення ефективності їх використання. У роботі визначено операціональне поняття «ресурси» та показано їх роль у формуванні національного багатства. Наголошено на деіндустріалізації, сировинній орієнтації експорту, скороченні людського капіталу, енергетичних та інфраструктурних проблемах. Визначено напрями розв’язання: розвиток системи обліку ресурсів, мобілізація трудових ресурсів, модернізація енергетичної та інженерної інфраструктури, нова індустріалізація та підвищення якості державного управління. Ключові слова: концепція, ресурси, ефективність, капіталізація, соціальний капітал, деіндустріалізація, державне управління Burkynsky B.V., Goryachyk V.F., Shlafman N.L., Kryvtsova O.M. The Concept of Consolidating Ukraine’s Resources and Increasing the Efficiency of Their Use. Review article. Resources are a key determinant of economic development, yet due to ineffective policies and the war, Ukraine has lost substantial material and human resources. This creates the need for restoration, accumulation, and more efficient use of resources. The study defines an operational concept of "resources" and highlights their role in forming national wealth. It outlines major challenges: deindustrialization, raw-material export orientation, decline of human capital, and energy and infrastructure weaknesses. Proposed solutions include improving the national resource accounting system, mobilizing the workforce, modernizing energy and engineering infrastructure, launching new industrialization, and enhancing public governance. Keywords: concept, resources, efficiency, capitalization, social capital, deindustrialization, public administration esources are among the most important macroeconomic determinants of a country's economic condition and its development prospects. Since independence, and due to ineffective economic and social policies as well as the full-scale war 2022-2025, Ukraine has lost a significant part of its material and human resources, while the efficiency of their use has markedly declined. Analysis of recent research and publications The consolidating of Ukraine's resources and the improvement of their efficient use have been examined by domestic and foreign scholars, including B. Burkinskyi, V. Heyets, V. Vlasyuk, A. Hrytsenko, I. Bobukh, V. Goryachuk, S. Ishchuk, V. Lyashenko, I. Pidoricheva, L. Sozanskyi, N. Shlafman, among others (Bourdieu, 1986; Coleman, 1990; Fukuyama, 1995; Burkinskyi et al, 2014, 2020, 2024; Heyets, 2009; Heyets & Hrytsenko, 2007; Ishchuk & Sozansky, 2024; Ishchuk, 2022; Vlasyuk, 2022, 2024 ). However, a number of questions remain regarding the characteristics of resource accumulation and the persistently low efficiency of their use. R Burkynsky B.V., Goryachyk V.F., Shlafman N.L., Kryvtsova O.M. The Concept of Consolidating Ukraine’s Resources and Increasing the Efficiency of Their Use 26 The aim of the article is to develop a concept for consolidating Ukraine's resources and increasing the efficiency of their use. The main part The study finds that resources are among the most important macroeconomic determinants of the state of the economy and of its development prospects. Over the years of independence, and particularly due to ineffective economic and social policies, as well as military actions in 2022-2025, Ukraine has lost a substantial share of its material and human resources, and the efficiency with which they are used has significantly decreased. From 1990 to 2024, the GDP index fell to 50.7% (relative to 1990), human resources declined from 52 to 30 million people, the country underwent prolonged deindustrialization and a shift to a raw-material-based economy, and the share of innovation expenditure in GDP decreased to 0.34% in 2021. In 2024 public debt amounted to 91% of GDP and is expected to reach 102% of GDP by the end of 2025 (UUIE, 2025). To address these problems, the state must implement a comprehensive set of measures aimed at restoring and accumulating the country's assets, optimizing their structure and increasing the efficiency of their use. First and foremost, this includes restoring and developing of the energy system, improving the qualification level of human resources and optimizing their distribution across types of economic activity, implementing new industrialization, reducing inequality in society, increasing the effectiveness of public administration, creating conditions conductive to investment, enhancing the efficiency of country's transit potential, and establishing a national system for resource accounting. All of the above underscores the need to develop a Concept for the consolidation of Ukraine's resources and for increasing the efficiency of their use in the context of post-war reconstruction. 1. The concept of "resources" and its operational definition. According to Nobel laureate in physics Percy W. Bridgman, few notions are simple and unambiguous as they seem at first glance. The same applies to the concept of "resources": it appears self-evident initially, but closer examination shows otherwise. In the literature, this concept has been approached from multiple perspectives, including its understanding as: ⎯ a quantitatively measurable capacity to carry out activities by an individual or a group; ⎯ conditions that, through certain transformations, make it possible to obtain a desired result; ⎯ life-support means at a person’s disposal that enable the satisfaction of basic needs; ⎯ a source for meeting needs; ⎯ anything that possesses usefulness and adds value to human life; ⎯ factors of production; an asset that used to produce goods and services that satisfy human needs and wants; ⎯ something that can be used or expended; ⎯ stocks, reserves, potential, or a source of something; ⎯ means or opportunities for action; ⎯ the operating (service) life of an object. Thus, there exists a wide range of definitions the concept of "resources", which differ substantially and are rather general in nature. For the purposes of our study, a definition is required that meets two conditions: 1) reflects the economic aspect of the concept of "resources" and; 2) it indicates how resources can be measured. The first condition follows from the economic perspective of this research and differs fundamentally from, for example, psychology, where "resources" are often understood as individuals’ mental capacities – primarily among adults. – mobilized across intrapersonal, social, and environmental domains to sustain health and well-being. The second condition stems from the role of measurement: without measurement, it is impossible to determine the state of a phenomenon or to design mechanisms for its preservation, improvement, and development. Hence, the definition of "resources" should be operational. This requirement originates in physics following Bridgeman’s operationalism, concepts are to be defined in terms of the operations used to measure what they denote (i.e., a concept is synonymous with the corresponding set of operations). The approach began to be actively used in the methodology and philosophy of science after the publication in 1927 of the book "Logic modern physicists" Percy W. Bridgman (Bridgman, 1927). An operational definition describes a phenomenon through the procedures required to ascertain its presence and to measure its duration and magnitude. Such a definition is contrasted with a theoretical (conceptual) definition. The degree of correspondence between the operational and the conceptual definition is termed validity (reasonableness). Considering "resources" in an economic aspect and in light of the above interpretations, a key characteristic is "need satisfaction" – in terms of economic theory, this concerns "use-value". According to K. Marx, usevalue is the utility of a thing that satisfies a particular need. It is important to distinguish between household needs (ensuring a certain standard of living for final consumers) and production needs (the requirements of enterprises for creating value added). As for quantitative assessment, economic theory allows two principal approaches: ⎯ by embodied and living labour in the production process (i.e., cost); and ⎯ in the sphere of exchange (i.e. as a barter cost (price). Equally important is the relationship between "resources" and "potential". In this context, we distinguish actual resources, which currently satisfy household and production needs, from potential resources, which may do so in the future. Taking the above into account, the operational definition of the concept of "resources" can be formulated as follows: Resources are any tangible or intangible entities that satisfy – or can potentially satisfy – household ISSN:2226-2172 №6(82), 2025 ECONOMICS: time realities 27 needs at a given standard of living for the end consumers (people) and the production needs of enterprises for creating value added. This definition is consistent with the concept of "capital" understood as value that is already engaged – or can potentially be engaged – in meeting human needs or in the production process to generate value added (Burkynsky, Goryachuk, 2014). It allows us to consider "resources" within the framework of capitalization. Namely, 1) to map different types resources onto types of capital (human resources as human capital, natural resources as natural capital, social resources as social capital, etc.; 2) to treat the accumulation resource as capitalization – the creation value added and the accumulation capital; 3) to examine "resources" in context through the lens of property-rights relations. 2. Types of resources and their essence. Drawing on research research on the resources of a country, enterprises, and individuals, the following types of resources can be distinguished. Artificial (man-made) resources. These include fixed assets and objects of labour created by human (machinery, equipment, and structures used to produce goods and services, together with inventories of raw materials, semi-finished and finished goods, and durable goods owned by households). Human resources. Human resources comprise the resident population of a country and the totality of all its productive attributes – innate abilities, education, professional knowledge, experience, skills and competences acquired through training, upskilling and life activities, motivation, health status, and psychological resilience (Hrishnova, 2001). Many scholars argue that human resources are the principal factor of development in the modern economy. World Bank assessments of the national wealth in advanced economies are often cited to show that the dominant component of wealth is human resources. International experience indicates that competitiveness today is ensured by high human-development outcomes, substantial investment in people, the creation of highskill jobs, and conditions that motivate creative activity. Human resources must be regularly reproduced, which is impossible without the active participation of the state. It is through developed public systems of healthcare, education and retraining – as well as social protection mechanisms – that the reproduction of human resources is ensured. Private actors can complement, but not substitute for, the state’s role in this area. At the national level, policy should aim to accumulate human resources both quantitatively and qualitatively by increasing the number of healthy, working-age people and by raising education and qualification levels. Therefore, expenditure on education and healthcare should be regarded not as consumption but as investments in human resources. A specific feature of human resources is their autonomy; they are more difficult to manage because individuals have their own preferences and goals. Intangible resources (intangible assets, IA). Contemporary economic development is characterized by the transformation of intangible assets into a key driver of economic growth and a precondition for the transition to higher technological paradigms. A distinction is often drawn between intangible assets in a broad sense – those not necessarily recorded on a company's balance sheet but that generate income and increase market value – and in a narrow, accounting sense. In the balance sheets of most Ukrainian enterprises today, intangible assets constitute a small share of total assets. Insufficient methodological guidance for IA valuation and gaps in the legal framework impede corporate capitalization. A legislative framework is needed, particularly standards for intangible assets evaluation, taxation and protection of property rights. The possibility of revaluation of intangible assets without income-tax payments should be provided, thereby creating incentives for companies to disclose the true scope of their intangible assets, to create and use them in production, and consequently, to raise their capitalisation and creditors’ confidence. Natural resources. Despite extensive research, there is still no universally accepted definition of this concept and classification of its components. Following I. Bobukh, natural resources may be classified according to their role in the production process (Bobukh, 2010): ⎯ those that, in physical terms, enter the finished product and completely lose their use-value – nonrenewable mineral raw materials and fuel-energy resources (natural gas, oil, coal, shale, peat, nuclear energy, metallic ores, non-metallic minerals) and renewable biotic resources (forest; other plant; faunal resources); ⎯ those that can be identified as fixed assets: land (agricultural and non-agricultural), water resources (river runoff waters, groundwater, sea waters, closed reservoirs) and natural recreational resources (therapeutic mineral waters, mud (peat and silt), ozokerite, natural parks and reserves, sea coasts), which are renewable; ⎯ the ecological capacity of the environment, i.e., its ability to absorb various anthropogenic pressures of a given magnitude without changing the qualitative parameters of the natural system. Financial resources (financial capital). These consist of money and securities. K. Marx classified securities as fictitious capital, which – unlike real capital – does not embody material or spiritual values, does not function directly in the production, and does not create value added, but rather facilitates the redistribution of income (Marx, 1872-1875). To clarify the essence of financial capital, it is important to note that its role and significance depend on the level of analysis. From the perspective of households and enterprises, money and securities are unquestionably capital: money determines the possibilities of a person and an enterprise to buy various things, to construct residential and industrial premises, etc; shares and bonds confer rights to dividends and interest and, in case of liquidation of a company, to a share of its assets. From the state-level perspective, however, securities are titles property that represent capital. Therefore, calculating the state's capital by summing companies’ assets and, Burkynsky B.V., Goryachyk V.F., Shlafman N.L., Kryvtsova O.M. The Concept of Consolidating Ukraine’s Resources and Increasing the Efficiency of Their Use 28 simultaneously, the securities that represent claims to those same assets would entail double counting. In macroeconomic measurement at national level, one must distinguish between real capital and its representations in securities (fictitious capital). Accordingly for the purpose of assessing the state's capital, stocks and bonds are not capital in their own right. With respect to money, first of all, it should be emphasized that it serves as a medium of exchange and a unit of account, i.e., it performs institutional functions. Few economists today hold the extreme view that money is irrelevant. In the short run, changes in the money supply and interest rates are key instruments for raising employment and containing inflation. "Money is a large wheel of circulation, by means of which every member of society receives his subsistence, conveniences and amusements, which are regularly distributed in due proportion" (Smith, 2018). In the short term, money – as an institution – can be treated as a component of social capital. At the same time, most macroeconomists believe that in the long term, money is neutral: the growth rate of the money supply does not affect the volume of national product and employment levels (Panchyshyn, 2001). Social resources (social capital). Social capital occupies a special place among national resources. The economy cannot be regarded as an autonomous sphere governed by sui generis laws. It operates within society and cannot be understood outside of a broader view of modern social organisation (Fukuyama, 1995). National development strategies should account for socio-cultural environment. Policymakers in many countries recognise that social cohesion, a fair balance of interests in distributing the social product, and guaranteed minimum wages and social benefits that ensure a decent standard of living contribute to societal consolidation, spur investment, and accelerate economic development. In this context, social capital is of critical importance. Most scholars associate the concept of "social capital" with social networks, norms, rules and trust that encourage network participants to pool efforts in pursuit of common goals (Bourdieu, 1986; Heyets, 2009). The most widely cited interpretation is due to J. Coleman, who defined social capital as the potential for mutual trust and mutual assistance purposefully formed in the process of interpersonal relationships: obligations and expectations, information channels and social norms (Coleman, 1990). Social capital is not an individual attribute but a property of the network of relationships in which a person participates. The amount of social capital that a network participant can attract (use) depends on the size of the network of connections that he can mobilize, and on the stocks of physical, human and other forms of capital held by other network members. Social capital acts not only as a tool for consolidating various types of resources, but also as a catalyst for increasing the efficiency of their use. It has a dual nature, on the one hand – it is a resource, and on the other - it is an institutional environment on the state of which the efficiency of resource use depends From public administration perspective, the institutional view of social capital is particularly salient, the institutional environment is the primary determinant of how effectively other forms of capital are deployed. In this sense social capital encompasses trust in public authorities, an independent judiciary, transparent and predictable state action, low levels of corruption, and secure property rights. Social capital is not only a stock of wealth but also a configuration of social relations. Possessing resources is insufficient unless conditions are created for their effective governance. Hence, the need to build an enabling institutional environment with clear developmental orientation – specifically: an effective legal framework; well-developed financial mechanisms; reduced transaction costs in economic exchange; competitive markets; institutions that ensure contract enforcement and guarantee property rights; and policies that foster social cohesion. The view that social capital exerts a positive effect on economic growth is now widely held. At the microeconomic level, it manifests itself in higher operational efficiency of individual enterprises. At the macroeconomic level, institutions, legal norms, and government regulatory activities lower transaction costs for economic agents, enhance the efficiency of their interactions, and support macroeconomic stability. As with debates about the role of the state in the economy, there is no single, uncontested position on the formation of social capital. One perspective holds that the social capital emerges only without state involvement, the opposite view argues that state institutions must play an active role in its development. Both positions capture only part of the picture. Governments stand in varied relationships with social groups, and depending on the nature of these relationships, social capital may be strengthened or eroded. It can therefore be argued that a well-designed public is an important driver of social capital formation, increasing societal efficiency by coordinating and consolidating collective action. Empirical research indicates that state capacity and quality – absence of corruption, bureaucratic red tape, and bribery, together with the impartial enforcement of laws – are directly associated with higher rates of economic growth. Based on the above, the following conclusions can be drawn: ⎯ the resources of a country determine the volume of its national wealth; ⎯ the efficiency of resource use determines the level of economic development; ⎯ the determining factor in the accumulation of resources and the efficiency of their use is social capital. 3. Problems that need to be solved (Problems to be addressed). Over the years of independence, an "economy of poverty" has taken shape in Ukraine, characterised by the export of raw materials (primarily agricultural) and the coverage of domestic demand for industrial products through imports. This model entails a double loss for the Ukrainian economy: first, through unjustifiably high imports of inputs required for agricultural production; and second, through the export ISSN:2226-2172 №6(82), 2025 ECONOMICS: time realities 29 of these raw materials in unprocessed form rather than exporting higher-value processed products. The prevailing pattern of integration into international economic exchange thus renders Ukraine a donor of raw materials and labour resources for more developed economies. Currently, the following problems require solutions: Reduction of human resources and inconsistency of their structure with the needs of the economy and society. Throughout the entire period of independence, Ukraine has experienced population decline driven by low birth rates and high mortality; the war has amplified these trends. As a result of hostilities, economic instability and infrastructure destruction, the birth rate continues to fall. Additional factors include the death of military personnel and civilians, warrelated disability, emigration and internal displacement of the population. According to various estimates, about 8-10 million Ukrainians left the country in search of safety and work. Experts at the M.V. Ptukha Institute of Demography and Social Research of the NAS of Ukraine estimate that 1.5-3 million migrants had settled abroad on permanent basis from 2021 until the start of the full-scale invasion – i.e., movements not directly related to the war. Many of these individuals were not registered with any organizations; some remained irregular, others legalised their status and entered foreign labour markets, while a number of destination countries further relaxed requirements for long-term Ukrainian residents. War-related migration accounts for an additional 6.2 million people, bringing total losses due to emigration to approximately 8.5 million (Hladun, 2023). This caused a shortage of qualified personnel in the national industrial sector. Many workers and specialists were forced to leave areas of active hostilities and move to safer regions. In 2024, there were over 5 million internally displaced persons in Ukraine, creating challenges for labour relocation and adaptation to new workplaces – especially under conditions of damaged infrastructure – and imposing a heavy burden on social and infrastructural systems. Current population estimates (including temporary occupied territories) range from 27 to31 million. Alongside quantitative decline of human capital, qualitative imbalances have deepened between labour demand and supply by occupation and qualification misalignment between the goals of the vocationaleducation system and business needs; an excess of university-educated specialists and a shortage of qualified blue-collar workers; disproportions between technical and non-technical specialties; an oversupply of specialists in economic and legal fields and a deficit of specialists in engineering and technical fields; and enterprise-level staffing distortions due to war and displacement. Low wage levels discourage young professionals from entering mechanical engineering; the majority of skilled industrial workers are of preretirement or retirement age. Ongoing deindustrialization is shifting Ukraine towards raw-material production. This deprives the country's highly qualified industrial community – particularly engineering and design personnel – of employment opportunities and intensifying largely one-way migration. Labour emigration has become the most powerful channel of human-resource loss. Insufficient electricity-generation capacity. In 1991, thermal and combined heat-and-power plants, nuclear power plants and hydroelectric power plants together accounted for about 57 GW. Of installed capacity. Solar and wind sources were negligible then. Current generation capacity, by various estimates, has fallen to less than 15 GW, i.e., to below one-third of 1991 level. The main reason is the war, compounded by decades of inefficient and extensive utilisation of assets; for more than 30 years nuclear generation was treated as a "cash cow" for many years (Kushch, 2025). According to A. Kushch, at least USD 200 billion was invested in Ukraine’s power system during the USSR period (and up to USD 400 billion including general infrastructure) – sums that are exceedingly difficult to mobilise as investments today. In 1991, the level of energy availability was more than three times higher than in 2024. Although the population declined from 52 million to 30 million and deindustrialization proceeded, these trends alone do not a explain a morethan-threefold reduction; energy availability for households and industry has sharply contracted. At the same time, the system is undergoing the atomization and autonomisation – decentralisation and a shift to distributed generation – which under current constraints, limits the energy foundation for GDP growth to a historical minimum. New enterprises cannot be commissioned because the electricity quotas do not permit it (Kushch, 2025). Deindustrialization. Ukraine has been regressing from an industrial to a raw-material economy. The specificity of this process lies in its occurrence within a setting of industrially advanced neighbouring countries. Deindustrialization in Ukraine is evidenced by: ⎯ a decline in industrial output at constant prices; ⎯ structural shifts within the processing industry marked by falling share of the high-tech sector; ⎯ deterioration in product quality. In Ukraine the process of deindustrialization has been underway for a prolonged period. By 2021, the industrial production index had fallen to 76.9% of its 2007 level (and to 77.7% in processing industry). Deindustrialization and the loss of industrial potential are the primary causes of Ukraine’s long-term economic recession. The economy’s structure has simplified and become less technologically sophisticated; the depreciation of fixed assets has increased and investment has declined; the condition of production, transport, and energy infrastructure has worsened; the innovation process has regressed; and the commodity composition of exports has deteriorated. Foreign direct investment (FDI) – on which significant hopes had been placed – turned negative, with an outflow rather than an inflow. The total stock declined from USD 67.0 billion in 2013 to USD 48.9 billion in 2021, i.e., an almost 30% reduction (Vlasyuk, 2022). In 2021, funds from non-resident investors accounted for only 0.1% of total capital investment (SSSU, 2022). Burkynsky B.V., Goryachyk V.F., Shlafman N.L., Kryvtsova O.M. The Concept of Consolidating Ukraine’s Resources and Increasing the Efficiency of Their Use 30 Ukraine's economy is losing its capacity to produce high-tech industrial goods with a high value added and is characterized by an expanding primary sector (agriculture and mining) alongside declining technological intensity in processing industry. The share of the processing industry in gross value added fell from 20% to 10.1 % over 2006-2020 (SSSU, 2009, 2022). Within global value chains, Ukraine has increasingly shifted toward the raw-material and lowtech niches. Between 2006 and 2021, the share of raw materials in total exports rose from 7.7% to 35.2%, while the share of high-tech goods declined from 14.5% to 9.6%. Constrained to a narrow raw-material niche, Ukraine effectively exchanges a growth resource (raw materials/semi-finished inputs as sourceі of value added, for a consumption resource (imported industrial goods). In Ukraine over 2000-2021 the share of innovation expenditure in GDP fell from 1.14% to 0.34%, whereas, in the countries of the Organization for Economic Cooperation and Development, this indicator exceeds 2.0%. Low public-administration effectiveness. The effectiveness of public administration is critical for national economic development, human capital formation and social cohesion strengthening. The World Bank’s Worldwide Governance Indicators assess more than 200 countries in the period 1996– 2023 across six dimensions: voice and accountability; political stability and absence of violence; government effectiveness; rule of law; and curbing corruption. According to the World Bank, Ukraine’s public governance indicators in 2023 were substantially below those of most countries worldwide (Table 1). Table 1. Quality of public administration in Ukraine, neighbouring countries and developed EU members in 2023, (scores) Governance Indicators Ukraine Moldova Romania Hungary Poland Slovakia Germany Sweden Norway Taking into account public opinion and accountability of government bodies 43 56 62 59 68 77 95 97 100 Political stability and absence of violence 11 20 56 72 64 65 66 74 77 Government efficiency 38 44 47 63 67 59 85 95 98 Quality of legislation 43 55 63 63 76 71 92 95 93 Rule of law 20 47 64 63 65 69 93 93 99 Curbing corruption 26 47 56 55 69 61 94 98 99 Source: elaborated by the authors based on [26] Numerous analysts identify high levels of corruption as a principal cause of Ukraine’s economic crisis. According to Transparency International’s Corruption Perceptions Index, Ukraine ranked 105th out of 180 countries in 2024. Specialized bodies to combat corruption, and the laws adopted to that end have not yet produced tangible results. As noted by European auditor J. Parts, "there are no countries in the European Union in which the scale of corruption would be comparable to that of Ukraine"; large-scale corruption remains widespread, and EU support and the measures taken have not delivered the expected results Parts, 2021). Foreign investors cite corruption as a key deterrent to investing in Ukraine. Owing to corruption, enterprises face uncertainty about business prospects and the "rules of game", which is particularly challenging for medium-sized enterprises (as opposed to large multinationals with extensive legal and tax support). A sociological survey commissioned by Transparency International Ukraine indicates that 73% of Ukrainians and 80% of business representatives are most concerned about the resurgence of corrupt schemes in the country's recovery processes. The negative consequences of corruption for the national economy are substantial: reduced tax revenues and a weakened budget; distortions of market mechanisms; erosion of public trust in government; reputational damage to the country; and macro-social and economic instability. A significant manifestation of the ineffective public administration is the dominance of the oligarchic groups in the economy, with far-reaching negative effects on economic and social development of the country. Economically, this is reflected in the unequal distribution of wealth, market monopolization, corruption and tax evasion, low investment, and the primary-commodity profile of the economy. Socially, it entails high inequality, deterioration in the quality of education and healthcare, and outward migration. Institutionally, it manifests in corruption, lobbying, and an inefficient public sector. Oligarchic groups control key sectors – energy, metallurgy, agriculture, and media – thereby suppressing competition and constraining the development of small and mediumsized enterprises (SMEs), which account for only about 15% of Ukraine's GDP (for comparison: in the EU this figure exceeds 50%). Offshore schemes are used to avoid taxation: according to Global Financial Integrity, capital flight costs Ukraine USD 5-10 billion annually. Oligarchic business models remain focused on the export of raw materials (metals, grain, minerals), making the economy vulnerable to world-price volatility. Political influence is exerted through lobbying and corruption, including significant control over the media, which constrains freedom of speech. In 2021, Ukraine ranked 97th of 180 in the press-freedom index (Reporters Without Borders). Concentration of power in the hands of oligarchs leads to inefficient use of public resources; for example, in 2021, Ukraine lost ISSN:2226-2172 №6(82), 2025 ECONOMICS: time realities 31 about USD 1.5 billion due to corruption in public procurement (Kushch, 2025). In sum, oligarchy in Ukraine is one of the key causes of economic stagnation, social inequality, and corruption. Problems of transport and transit potential of Ukraine. Ukraine possesses considerable transportand-transit potential by virtue of its geographical location between Europe and Asia, and its extensive infrastructure (railways, seaports, highways). However, a number of constraints limit the realization of this potential. Many port facilities are obsolete. For instance, equipment wear at the Odessa port is estimated at 60-70%. Draught restrictions in several ports reduce competitiveness by limiting access for larger vessels. Annual port-infrastructure investment is around USD 200-300 million, well below that of neighbouring countries (e.g., Romania invest roughly USD $1 billion). Since 2022, Ukraine's transport infrastructure has suffered major losses. Black Sea seaports were blocked or damaged. Before the war, Ukrainian ports handled about 150 million tonnes of cargo per year; in 2023, this figure fell to about 60 million tonnes. Loss of traditional markets and logistical difficulties. The war has led to the loss of traditional markets and to acute logistical frictions with long-term implications for development. According to the World Bank, Ukraine ranked 64th of 160 in the Logistics Performance Index in 2023, with bureaucracy and corruption highlighted as key problems. The Ministry of Economy of Ukraine estimates that in 2022 the country lost about USD 35 billion due to reduced exports and complicated logistics; 2023 losses are estimated at USD 20-25 billion. The trade balance deficit in 2022 amounted to USD 10 billion. 4. Purpose of the Concept. The purpose of the concept is to develop institutionnal support and organizational-economic mechanisms and tools for post-war consolidation of resources and increasing the efficiency of their use to ensure the implementation of the Ukraine Recovery Plan on the basis of structural transformations of the domestic economy – specifically, a transition from a raw material model to sustainable neo-industrial development in the context of strengthening defence capabilities. 5. Directions and tasks for problem solving. 5.1. Development of a national resource accounting system. Tasks: ⎯ conduct a census of Ukraine’s population every 10 years, starting in 2026; ⎯ restore of accounting for fixed assets through regular revaluation; ⎯ develop methodical support for comprehensive assessment of the country's resources and the efficiency of their use in the context of capitalization; ⎯ improve methodological support for valuing strategic natural resources (rare-earth metals, titanium, uranium, gas, oil, etc.); ⎯ develop methodologies for assessing war-relating losses and for determining funding needs to restore critical socio-economic sectors (electricity generation, transport infrastructure, industry, mining, agriculture, housing, education and healthcare, environment); ⎯ develop methodological support for the assessment of intangible and intellectual resources. 5.2. Mobilization of human resources and reduction of skill imbalances between labour supply and demand in industry and other economic activities. Tasks: ⎯ design measures to facilitate the return of Ukrainian citizens from emigration; ⎯ develop and implement support measures for internally displaced persons; ⎯ create conditions to raise labour-force participation among able-bodied groups (women, pensioners, youth), including via part-time employment, flexible schedules, etc.; ⎯ introduce education, training and retraining programmes for the workforce in critical economic and social sectors for post-war recovery; ⎯ increase labour mobility through online platforms and modular courses for rapid retraining; ⎯ reduce mismatches between labour demand and supply by occupation and qualification; realign vocational education with business needs; address enterprise-level stuffing imbalances caused by war and displacement; rebalances the proportions of university-educated, technically trained, and skilled blue-collar workers, as well as humanities vs technical specialities; ⎯ implement measures to support and incentivize business to create new jobs; ⎯ reduce disparities in access to education and healthcare. 5.3. Restoration and development of energy infrastructure. Tasks: ⎯ attract investment to restore and develop electricity grids and generation sources. According to Ukraine's energy strategy, investment needs by 2050 amount to $383 billion. In particular, wind generation – $134 billion, solar – $62 billion, hydrogen technologies – $72 billion, energy storage – $25 billion, nuclear generation – $80 billion and transmission systems – $5 billion, hydropower – $4.5 billion; ⎯ complete power units No. 3 and No. 4 of the Khmelnytskyi nuclear power plant; ⎯ establish an international gas hub based on domestic gas deposits, the gas-transmission system, and underground gas-storage facilities A point of wholesale natural gas trading between a significant number of market participants. It can be based either on a specific physical object of gas transportation infrastructure (storage facility, gas pipeline intersection) or exist as a virtual trading point; ⎯ meet domestic gas needs by increasing national gas production; ⎯ reduce the energy intensity in GDP. Burkynsky B.V., Goryachyk V.F., Shlafman N.L., Kryvtsova O.M. The Concept of Consolidating Ukraine’s Resources and Increasing the Efficiency of Their Use 32 5.4. Modernization and restoration of infrastructure. Tasks: ⎯ attract investment for the restoration and modernization of key infrastructure sectors (energy, transport, communications). ⎯ use public-private partnerships to mobilize private investments and implement infrastructure projects. ⎯ restore and develop transport infrastructure and logistics systems. 5.5. New industrialization. Tasks: ⎯ develop an innovative industrial complex grounded in the principles of the circular economy; ⎯ transition from a raw material to a high-tech economy; ⎯ create of resource-based industrial growth clusters anchored in domestic raw material deposits; ⎯ enhance the prestige of technical professions; ⎯ increase investment in science and technological progress, including new industrial technologies, information technologies, robotics, artificial intelligence, biotechnology etc; ⎯ attract investment in measures that raise labour productivity (technical education, science), and create high-tech jobs; ⎯ support start-ups capable of delivering new solutions for critical industries and other activities. 5.6. Improving the efficiency of public administration. Tasks: ⎯ optimize of budget expenditures, introduce systems for auditing and controlling the use of public funds; ⎯ identify additional financing sources: secure international loans, investments and grants; develop domestic capital markets to provide the necessary financial resources; ⎯ develop and regularly update forecasting models to determine resource needs accurately; ⎯ support small and medium-sized enterprises through concessional lending, tax holidays and other measures that accelerate production recovery; ⎯ implement automated resource-management systems to enhance responsiveness and raise the efficiency of resource use. 5.7. Concentration of state resources on social capital: education, science, healthcare. Tasks: ⎯ build a healthy, creative and educated nation; ⎯ unleash entrepreneurial initiative so that social capital remains in the country and generates value added domestically rather than abroad; ⎯ concentrate key factors of global competitiveness – domestic natural resources and raw material potential, and human capital – so human capital, value added, and investment remain in Ukraine. 5.8. Institutional development support. Tasks: ⎯ strengthen anitrust policy: establish transparent mechanisms for resource allocation; create independent bodies to monitor resources pricing and to audit the efficiency of budget expenditures; ⎯ combat corruption and managerial inefficiency; ⎯ develop a scientific rational for the consolidation of resources and for increasing their efficient use in the context of strengthening defence capabilities and post-war economic recovery; ⎯ drafting a Strategy for consolidating resources and improving their efficiency to implement the priorities of Ukraine's post-war development; ⎯ propose improvements to regulatory and legislative acts aimed at resources consolidation and efficiency gains in support of post-war development – strengthening defence capabilities, ensuring food security, and reducing in-work poverty; ⎯ design an organisational and economic mechanism for implementing resource consolidation and efficiency improvements that raise value added and develop the domestic market. 6. Financial support. The restoration and development of the Ukraine’s economy require financial resources on a scale that exceeded domestic capacity; assistance from donor countries is therefore indispensable. Over the past two years, several international forums have discussed programs for reconstruction during and after the war. One reference point is the Marshall Plan, which, following World War II, focused on restoring industrial capacity and employment through the development of industry and high-tech sectors. Relevant analogues include Japan’s experience of building an export-oriented industrial economy and South Korea’s trajectory from a low base to a successful hightech economy driven by manufacturing and exports. According to UN experts, as of end-December 2024, Ukraine's needs for reconstruction of the social and economic spheres over the next ten years are estimated at almost USD 524 billion, approximately 2.8 times higher than the estimated nominal GDP for 2024. The largest needs are in the housing sector (almost USD 84 billion, 16%), in the transport sector (about USD 78 billion, 15%), energy and mining (USD 68 billion, 13%), trade and industry sector (USD 64 billion, 12%), and agriculture sector (USD 55 billion, 10%) (World Bank Group, 2025). In 2022, the International Conference on the Restoration of Ukraine was held in Lugano, Switzerland. It presented a Post-War Reconstruction Plan for Ukraine, with financing needs of USD 750 billion, 2/3 of which would come from partner support (grants, loans and equity). The plan comprises 15 programmes with the most expensive lines being the restoration and modernization housing and regional infrastructure (USD 150-250 billion), expansion and EU integration of logistics (USD 120-160 billion), and energy independence and a "green" transition (USD 130 billion). The plan also envisages USD 60-80 billion for macro-financial stability, USD 75 billion to ensure competitive access to capital, and USD 50 billion each for the development of the defence and economic sectors (Stasyuk, 2022). The proposed distribution of the USD 750 billion is as follows: ISSN:2226-2172 №6(82), 2025 ECONOMICS: time realities 33 ⎯ USD 250-300 billion – partner grants (defence and security, reconstruction of destroyed housing etc.); ⎯ USD 200-300 billion – partner loans (infrastructure modernization, support for financial systems etc.); ⎯ USD 250 billion – private investments (including infrastructure projects). Over ten years 850 projects are to be implemented. As a result, Ukraine is expected to enter the top-25 countries worldwide by economic and human development indices. Under the auspices of the Committee of the Verkhovna Rada of Ukraine on Economic Development, a group of experts assessed financing needs for the Plan for the Restoration and Development of the Processing Industry of Ukraine, 2023-2032. The modelling state incentives for new production capacity in Ukraine assumes an inflow of USD 90 billion of investment into the processing industry over ten years (2023-2032) (Vlasyuk, V. et al, 2024). The results indicate that implementing the plan for the Restoration and Development of the Processing Industry of Ukraine would raise the sector’s i GDP share to OECD-comparable levels and increase the export share of processsing industry to the European benchmark. The plan foresees the construction of over 570 plants during 2023-2032 (Table 2). Table 2. Plan for the construction of new processing plants in 2023-2032 Investment volume, USD million Number of plants, units Raw materials processing Grain processing 14 570 126 Oilseed processing 3 900 33 Metallurgical plants 22 200 13 Metalworking plants 3 400 11 Wood processing plants 550 10 Titanium product manufacturing 650 4 Lithium product manufacturing 970 2 Ceramic and sanitary ware production 850 9 Smart import substitution Petroleum product manufacturing 7000 2 Pesticide manufacturing 1200 2 Flat glass production 350 1 Tractor and combine manufacturing 150 1 Truck and component manufacturing 600 5 Paper production 950 1 Other industrial product manufacturing: Automotive, pharmaceuticals, chemicals and petrochemicals, household appliances and electronics, furniture, etc 32 660 >350 Total 90 000 >570 Source: elaborated by the authors based on [25] Modern and post-war Ukraine must embark on a deep transformation of the economy premised on structural changes. Conclusions 1. Based on a semantic analysis of existing definitions of "resources", an operational definition is proposed: any tangible or intangible entities that provide – or can potentially provide – household needs to ensure a given standard of living for final consumers (people) and the production needs of enterprises for creating value added. 2. The concept of "resources" is considered in the context of capitalization, namely: (i) different types of resources correspond to different types of capital (human resources as human capital, natural resources as natural capital, social resources as social capital, etc.); (ii) the accumulation of resources is treated as capitalization – the creation of value added and the accumulation of capital; (iii) the concept of "resources" is examined through the prism of property-rights relations. 3. It is determined that social capital serves not only as an instrument for consolidating various types of resources but also as a catalyst for increasing the efficiency of their use. It has a dual nature: on the one hand, a resource; on the other an institutional environment on the state of which the efficiency of resource use depends. 4. It is substantiated that the level of a country's resources determines the amount of national wealth, and the efficiency of resource use determines the level of economic development. Social capital is defined as the decisive factor in both resource accumulation and efficiency. 5. Over the years of independence, Ukraine has exhibited a trend towards deindustrialization end an expansion of raw materials production for export (primarily agricultural), with domestic demand for industrial products covered by imports. This model produces a double loss: (i) unjustifiably high imports of inputs required for agricultural production; and (ii) export of raw materials in unprocessed form instead of higher-value processed products. The prevailing pattern of integration into international economic exchange turns Ukraine into a donor of raw materials and labour resources for more developed economies. 6. The main problems hindering consolidation of Ukraine's resources and the efficiency of their use are: