SPATIAL PLANNING AND FOREIGN DIRECT INVESTMENT: CURRENT TRENDS AND CHALLENGES DURING WARTIME
Keywords:
spatial planning, foreign direct investment (FDI), balance, rating, urban planning documentation, detailed planAbstract
The legislative framework governing spatial planning in Ukraine, like the broader regulatory and legal structure, has been evolving in recent years to align more closely with European standards. However, this progress is significantly hindered by the military aggression from the russian federation. Foreign direct investment (FDI) plays a crucial role in financing spatial planning initiatives at the local level, particularly within territorial communities. An analysis of FDI to and from Ukraine, along with the FDI balance over the past decade, reveals fluctuations in these metrics from year to year. Notably, there has been an increase in the investment attractiveness index and in the number of companies willing to invest in Ukraine, indicating continued optimism and potential for development despite the ongoing conflict.
Furthermore, a study of the ten-year quarterly distribution of FDI inflows provides insights into trends, allowing for assessments based on the average quarterly values and the identification of possible future FDI inflow expectations.
Given that Chernivtsi region attracts a minimal share of FDI - just 0.1% - despite representing 1.3% of the country’s territory, it is evident that this area has experienced a significant decline in investment, primarily due to the capital outflow of domestic investors registered in offshore companies. To address this issue, it is recommended that the investor base in Chernivtsi region be diversified, and local authorities be empowered to enhance their investment attraction capabilities.
Moreover, the implementation of strategic goals within the territorial community is demonstrated through the development of urban planning documentation. For instance, a Detailed Plan has been created for the establishment of an agricultural enterprise within the Kadubivtsi territorial community, situated outside Khreshchatyk village, one of the 417 settlements in Chernivtsi region.
References
Development strategy of the Kadubivtsi territorial community for the period until 2027. Website of the territorial community. 2021. 47 p. URL: https://kadubovecka-gromada.gov.ua/ (Аccessed February 16, 2025).
Foreign direct investment (FDI) in Ukraine. URL: https://index.minfin.com.ua/ua/economy/fdi/ (Аccessed February 16, 2025).
Korneliuk A., Torianyk V. Foreign direct investment in the regions of Ukraine during the full-scale invasion. URL: https://iaa.org.ua/portfolio/foreign-direct-investment-in-the-regions-of-ukraine-during-the-full-scale-invasion (Аccessed February 16, 2025).
On Amendments to the Land Code of Ukraine and Other Legislative Acts on Improving the Management System and Deregulation in the Field of Land Relations: Law of Ukraine No 1423-IX of April 28, 2021. Holos Ukrainy. 2021. No 105.
Post-war reconstruction of Ukrainian cities: green reconstruction and green transformation: analytical document / A. Andrusevych, N. Andrusevych, Z. Kozak, S. Romanko. Kyiv, 2022. 43 p.
Ukraine Investment Attractiveness Index 2024. European Business Association, 2024. 17 p.
