Український соціум (Oct 2020)
Development of value chains to increase the sustainability of Ukrainian industry in the conditions of post-COVID
Abstract
The paper considers the conceptual grounds of the possibility of integration of the Ukrainian industry into circular value chains. The authors have identified the global challenges threatening the industry development of Ukraine caused by the COVID-19 pandemic, such as border closings, the increased requirements of security due to isolation, the blockage of labour migration flows, the disruption of intermediate goods supply chains, the decline in production operations, a considerable shortage of capital, declining returns, undermining the financial stability and liquidity; increasing the probability of failure. Implementation of Ukrainian industry on the circular value chains contributes to the achievement of the Sustainable Development Goals and the prospects for the restoration of Ukraine’s industrial capacity in the harsh conditions of the coronavirus pandemic. Due to assessment of the losses caused by COVID-19 authors have shown that supply disruptions had effect on reducing the length of value chains, particularly in the machinery, metallurgy and textile sectors. The authors have determined that circular value chains maximize value-added throughout the product life cycle to increase the recycling of materials. The prospects for the integration of Ukrainian industry into circular value chains were justified, in particular, production of paper, paperboard, PET and glass; recycling of building debris, used clothing, tyres and organic waste; repair and rehabilitation of household appliances. An important role can be played by Ukrainian industry, which, although under challenging conditions, has sufficient potential in circular value chains. With this purpose, the following government incentives were developed: improvement of legislation, implementation of the principles of balanced Ukrainian development, financial support for projects aimed at developing a circular economy, as well as development of regional waste management plans with special focus on the European Green Deal.
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