SOCIO-ECONOMIC DEVELOPMENT OF UKRAINE'S REGIONS: CHALLENGES AND STRATEGIC PERSPECTIVES

Abstract

The article examines key aspects of ensuring the socio-economic development of Ukraine's regions in the context of decentralization, digitalization, and external political challenges. A comprehensive analysis of the impact of political, economic, social, and technological factors on regional development has been conducted using a PEST analysis. The study explores the influence of decentralization reform on the financial capacity of regions, as well as the issues of infrastructure disparities, demographic changes, and employment. Special attention is given to the uneven distribution of resources among regions and the challenges that hinder their sustainable development. The role of digital technologies and innovations in strengthening regional potential has been identified, particularly in the development of e-governance, improving the efficiency of public administration, and attracting investments through digitalization. The main threats and opportunities for enhancing the socio-economic well-being of communities are outlined, including stimulating entrepreneurial activity, developing small and medium-sized enterprises, implementing effective management decisions, and expanding public-private partnerships. Strategic directions for the formation of balanced regional development are proposed, based on the effective interaction of local self-government, the entrepreneurial sector, and communities, as well as enhancing the institutional capacity of local government bodies. Demographic trends and their impact on regional development are also examined separately. The negative consequences of labor migration, population aging, and employment disparities between urbanized and rural areas have been identified. The necessity of creating youth support programs, improving access to quality education and vocational training—key factors in the growth of human capital in the regions—has been substantiated. Additionally, the role of civic engagement and social cohesion as factors contributing to effective territorial development, the creation of innovation clusters, and the formation of a competitive regional economy has been analyzed.