Features of the organizational and administrative mechanism for the implementation of the state industrial policy at the regional level

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Features of the organizational and administrative mechanism for the implementation of the state industrial policy at the regional level

Oleksandr Lomaka

Postgraduate student of the Department of Personnel Management and Entrepreneurship of the V.N. Kharkiv National University Karazina,

Educational and Scientific Institute "Institute of Public Administration",

Kharkiv, Ukraine,

Abstract

organizational administrative state industrial policy

The article considers the features of the organizational and administrative mechanism for implementing state industrial policy at the regional level. It was found out that Ukraine does not have a functional comprehensive system of strategic planning, that is, there is no single mechanism in the country that would ensure the development, implementation and evaluation of development strategies at all levels of management.

It is proved that institutional support is caused by a number of problems, including the development of industry and industrial policy, as well as their results are not controlled by one institution in the executive power structure. Industry management is distributed among different ministries and departments, organized by sector or function. The powers and tasks of the relevant authorities often coincide, and their actions may even hinder industrial production.

It is determined that the shortage of labor resources, especially highly qualified ones, is one of the most urgent problems of modern Ukraine. This problem is particularly relevant for the industrial sector. Solving the issue of training qualified industrial personnel is extremely important for the strategic security of Ukraine, as it provides a competitive advantage to the economy and the opportunity to create a significant presence on the world economic stage.

Since the beginning of the war, the transport infrastructure has suffered significant damage and needs to be restored. So far, a full assessment of the damage cannot be obtained. The energy infrastructure is completely dependent on imported energy carriers. Problems in the communication infrastructure can significantly complicate the implementation of industrial policies, including the following: low internet speed and availability, network instability, lack of coverage in certain regions, and weak cybersecurity.

The main problems of the energy infrastructure are identified as: monopolization of the energy markets of Ukraine; deterioration of the energy infrastructure of Ukraine; the structure of the fuel and energy complex largely depends on imported energy carriers.

Keywords: state, public administration, industrial policy, state industrial policy, regional level.

Formulation of the problem

Considering the peculiarities of the organizational and administrative mechanism for the implementation of state industrial policy, it should be noted that in Ukraine there is no functional comprehensive system of strategic planning, that is, there is no single tool in the country that would ensure the development, implementation and evaluation of industrial policy at all levels of Public Administration.

The lack of a functional, comprehensive strategic planning system negatively affects the development of the economy and society as a whole. This is due to the fact that without such a mechanism, the government cannot effectively plan and implement policies aimed at achieving long-term goals. Although some components of this system, mainly related to state forecasting and programming, are established and recognized in the legislation, but it does not provide for the creation of long¬term alternative forecasts or a comprehensive long-term strategy for the development of the state. As a result, the development and implementation of numerous government programs was mostly unorganized, without taking into account strategic goals or a clear mission. These programs were often unbalanced in terms of resources, resulting in insufficient funding and failure to meet their planned goals.

The haphazard and disordered development of industry has led not only to a significant decline in its technological and industrial infrastructure, but also to difficult social and economic conditions for the population. This highlights the importance of implementing comprehensive, pragmatic, well-balanced and long¬term industrial policies.

Analysis of recent research and publication. Theoretical and practical aspects of state industrial policy are considered in the works of both foreign and domestic scientists. A significant contribution to the research of industrial policy was made by such scientists Deineko L.V. [8], Kyzym M.O. [5], Kindzerskyi Yu.V. [4], Klymenko L.P., [9], Onieshko S. [7], Sheludko E.I. [8], Tarasova N.V. [9], Khaustova V.Ie. [12] M.M. Yakubovskyi [8] and others. However, despite numerous studies, it should be noted that there are a number of unexplored issues in the field of theoretical and methodological approaches to the organizational and administrative mechanism for implementing state industrial policy at the regional level, which indicates the relevance of the chosen topic of this article.

The purpose of the research. The purpose of the article is to study the features of the organizational and administrative mechanism for implementing state industrial policy at the regional level.

Research results. The development of domestic industry and economy is often accompanied by destructive phenomena, in particular technological and structural degradation of the industry. These phenomena cannot be explained only by unfavorable economic factors, such as inflation, exchange rates, internal and external situations, competitive pressures, consumption patterns, or the concentration of producers or monopolies [2, p. 191]. Although these factors are undoubtedly significant, in recent years there has been a growing number of both domestic and foreign theorists and practitioners who recognize the state and its institutions as the decisive subject of progressivity, stability, competitiveness, efficiency and development of the country.

Generalization of a large number of scientific literature allowed us to identify the main tools of the organizational and administrative mechanism for implementing state industrial policy, these include: development of strategies and plans; allocation of resources; human resources; support institutions; infrastructure development; environmental control.

The effectiveness of Ukraine's institutions, especially those that directly or indirectly affect the activities of industrial enterprises, and the overall efficiency of its economy, in particular its industry, are paramount in this regard. Only if the state creates effective institutions that will offer adequate incentives to both the state and sectoral business entities for their respective activities, it will be possible to talk about effective economic management in the context of achieving the goals of structural transformations in the industry [3, p. 58]. These institutions should define the desired system in terms of compliance with certain directions of structural transformation, have an internal system of coercion, rewards and punishments for fulfilling their goals. The effectiveness of the institutions created by the state and the state itself as an institution depends not only on the internal parameters and conditions of the country's development and the structural profile of its production, but also on the country's competitiveness in the global economy.

Existing state institutions that influence the formation and implementation of state industrial policy adhere to their own views on current problems and future prospects of the industry. This has led to a disordered and diverse range of priorities, directions and goals for the industry, with varying levels of industry reach and implementation mechanisms, as well as varying degrees of importance for the country.

In Ukraine, there is currently no general regulatory act regulating the entire process of forming and implementing industrial policy. This is, in particular, the lack of a basis for interaction and coordination between individual authorities and the entities involved in this process, as well as the procedure for monitoring, accountability and responsibility of these entities. In addition, there are no established criteria for evaluating the effectiveness of the policy or ensuring that its tasks correspond to the goals of economic and social development [1, p. 63].

Industrial development and industrial policy, as well as their results, are not controlled by a single institution in the executive branch structure. Instead, the management of industry is distributed among different ministries and departments, organized by sector or function. This fragmented approach leads to a lack of collective responsibility for the overall state of the industry. The powers and tasks of the relevant authorities often coincide, and their actions may even hinder industrial production. This obstacle may be the result of the establishment of unnecessary administrative barriers or because different criteria and goals determine their attitude to industry as an object of management.

The degree of influence of individual executive authorities on the industry or specific enterprises varies significantly. In addition, the level of legislative and regulatory support they provide, their authority to make final management decisions without consulting other departments, the number of activities they regulate, the number of businesses that report directly, and the degree of their responsibility, accountability, and control vary.

The lack of continuity in power regarding the principles and directions of the country's development, the unwillingness of opponents to find common ground for the benefit of society leads to the fact that new ruling teams often cancel or suspend the implementation of decisions made by their predecessors, including those that determined the current and promising situation in industry [4, p. 43].

Shortage of labor resources, especially highly qualified ones. This problem is particularly relevant for the industrial sector. Solving the issue of training qualified industrial personnel is extremely important for the strategic security of Ukraine, as it provides a competitive advantage to the Ukrainian economy and the opportunity to create a significant presence on the world economic stage.

The strategy of the state personnel policy for 2012-2020 identifies key factors that hinder the formation and growth of high-quality personnel potential, and emphasizes the need for effective measures to improve the situation [11, p. 375]. Among these factors are the lack of an effective monitoring system for assessing the needs of society and the state for specialists of the necessary educational and qualification level, the inadequacy of the formation of a state order for training specialists, the imbalance in the management of professional orientation, objective principles of selection and training. young people, slow assimilation of modern technologies of professional development. In addition, the situation is aggravated by the insufficient use of scientific approaches and research results in the formation and implementation of State Personnel Policy.

A significant factor affecting the personnel security of the industry is the lack of a state-defined personnel policy. The rapid implementation of the laws" on vocational education "and" on education " should contribute to the adoption of more effective management decisions in vocational education and the establishment of a mechanism for professional training of employees. However, these documents do not contain a comprehensive strategic program that would solve the problems of personnel support for industry in Ukraine, as well as conceptual goals and mechanisms necessary for the implementation of personnel policy in this area.

One of the main obstacles that needs to be overcome is staff shortages, which are increasing as more and more people migrate to other countries where paying for their skills is more attractive. Another problem is the gap between the planning of personnel development in industrial enterprises and the reality of personnel formation in different regions, which leads to wasteful and unproductive use of labor potential [10, p. 20]. In addition, there is a discrepancy between the expected and actual qualifications of employees, and employers express dissatisfaction with the skills and knowledge they have to implement technological changes in production.

The next component of the organizational and administrative mechanism for implementing the state industrial policy is the development of industrial infrastructure, which includes: transport, energy, communications, water supply, waste.

Ukraine has always had a competitive advantage when it comes to its transport infrastructure. However, there are problems with the quality of services and the lack of cohesion between different sectors of the transport sector. This is largely due to insufficient investment from both the public and private sectors, as a result of which transport infrastructure meets only the basic needs of the economy. Despite these challenges, there have been positive changes in the transport infrastructure since independence. In 2018 the National transport Strategy for further infrastructure improvement was approved [6, p. 44].

The implementation of the transport strategy was negatively affected by quarantine restrictions related to COVID-19. in 2020, real GDP decreased by 4% compared to 2019, which increased by 3.2%. The transport sector suffered the most, with a 16.4% drop. However, in 2021, NBU estimates indicate real GDP growth of about 3% [12]. Despite the challenges associated with the war, Ukraine's National Transport Strategy until 2030 continued to be implemented, which led to some progress. European Business Association Infrastructure Index for 2021 it showed an improvement from 2.58 in 2020 to 2.76 out of 5 possible points [1, p. 186]. The team of analysts evaluated rail, road, sea, river and air transport according to four criteria: legislation and public policy, investment activity, activities of transport monopolists/government agencies, and Transport Logistics. The research data can serve as a guide for future strategic decisions, as the collection and processing of statistics for 2022 is challenging due to the need to take into account numerous new factors.

Since the beginning of the war, the transport infrastructure has suffered significant damage and needs to be restored. So far, a full assessment of the damage cannot be obtained. Experts say that losses and losses exceeded historical levels, and the decline in real GDP in 2023 was much more significant than in other places of military conflicts.

Despite the disappointing circumstances, there is still hope for a post-war recovery, as several international foundations have already provided financial and material assistance.

The energy sector covers various areas such as gas, electricity, oil, petroleum products and other related industries that are responsible for providing energy to support human life, society, economy and the state.

The power supply infrastructure consists of separate components, including, but not limited to, the supply of electricity, heat and gas, as well as the provision of continuous management. Then these separate functions are combined to create a system that works as a single whole [9, p. 121].

The inability of the national economy to meet the energy needs of households and industry has led to an increase in the country's dependence on other countries, in particular Romania, Hungary, Slovakia, Belarus and Russia. This dependence has negatively affected the economic, environmental and energy security of the national economy. To address this problem and move to a carbon-neutral economy, modernizing the energy sector has become a critical strategic priority for the country. Achieving energy independence is a top priority, given Ukraine's rich natural resources, as well as fulfilling the commitments set out in the green energy transition policy.

Since 2012, there has been a noticeable decrease in the volume of imported crude oil. This decline has negatively affected producers in the country who specialize in processing raw materials. It is important to realize that the stability of energy security is influenced not only by external factors. Internal factors also play a significant role, such as the technical condition of the fuel and energy complex, the environmental situation in the country, and the political and legal climate.

The state statistics service reports that the main energy consumers in Ukraine are households and industry, which consume approximately two-thirds of all energy produced in the country. Transport, trade and services go by a margin, with the percentage of energy consumption of 20% and 9%, respectively [8, p. 57].

In Ukraine, 29.04% of all energy consumed is produced from natural gas. Electricity and petroleum products are also important areas.

The main problems of our country's energy infrastructure are:

1. Monopolization of Ukraine's energy markets.

2. Deterioration of the energy infrastructure of Ukraine.

3. The structure of the fuel and energy complex largely depends on imported energy carriers.

4. The electricity market is currently experiencing a serious crisis.

5. The unified energy system demonstrates inflexibility when it comes to generating electricity from renewable energy sources, which is an important issue.

6. The lack of consistency in the actions of the subjects of the management system in decision-making and the distribution of powers between state entities often leads to the implementation of ineffective policies that hinder the development of the Energy Sector [6, p.145].

Modern industrial policy significantly depends on the availability of a reliable and efficient communication infrastructure. Problems in the communication infrastructure can significantly complicate the implementation of industrial policy and negatively affect the economy and industrial development, including the following:

- Low internet speed and availability: fast and stable internet is critical for many aspects of industrial activities, such as remote work, data exchange, monitoring and process management. Low speed and limited internet availability can limit the possibilities of implementing modern technologies and innovations.

- Network instability: frequent outages or low network stability can lead to production interruptions, data transmission problems, and other technical complications. This can lead to a loss of time, resources, and even endanger the safety of industrial processes.

- Lack of coverage in certain regions: the lack of communication infrastructure in certain regions may complicate the placement of new industrial facilities or the development of infrastructure in general. This can become a barrier to investment and development in these regions.

- Weak cybersecurity: a lack of proper cybersecurity can expose industrial enterprises to the risk of cyber attacks and leaks of confidential information. This can negatively affect confidence in innovation and digital technologies.

To solve these problems, it is necessary to invest in the development and modernization of communication infrastructure, develop strategies to ensure the availability of high-quality communication services in all regions, help reduce the cost of services and ensure an appropriate level of cybersecurity.

The transformation of industry under the influence of the growing role of the environmental factor occurs by: restructuring the energy system and reducing greenhouse gas emissions; forming a circular economy, creating and widespread waste-free and low-waste industries; accelerating the development of high-tech industries and the eco-industry.

Among the industries, heavy industry, which uses the processes of open extraction of mineral raw materials and fuel combustion processes, causes the greatest air pollution - mining industry - 20.1% (of the total emissions by industrial enterprises), processing industry - 36.7% (including metallurgy - 30.3%), electricity production - 43.1%. These are mainly large industrial complexes that have traditionally formed the structural profile of Ukrainian industry, but where environmental protection measures are slowly being carried out [7, p. 63].

Many countries of the world have long established a system of recycling and recycling of garbage, will earn money on this and significantly reduce the amount of environmental pollution. Waste processing is a promising and profitable type of economic activity. Waste can be successfully used to increase the competitiveness of production by reusing it and reducing the cost of raw materials. Unfortunately, Ukraine is not one of them.

The introduction of systemic environmental protection measures at Enterprises is closely linked to the existing system of environmental taxation. In 2018, revenues from the environmental tax amounted to UAH 2.8 billion. the share of revenues from environmental payments in the consolidated budget is gradually decreasing.

Environmental Control is an important component of State Industrial Policy at the regional level in Ukraine. Given the serious environmental challenges and obligations to international agreements such as the Paris Agreement and the green compact, effective environmental control is mandatory.

The Paris Agreement is an international treaty concluded within the framework of the United Nations Framework Convention on climate change [12]. The agreement was adopted in Paris, France, at the Conference of the parties to the Framework Convention on climate change in December 2015 and entered into force on November 4, 2016. The agreement aims to protect the environment and minimize the impact of global warming.

The Green Deal, or Green new deal, is a concept of Environmental Policy and economic strategy aimed at combating climate change and creating a sustainable and environmentally friendly society. This idea has gained popularity in various countries, including the United States of America and the European Union, and involves large investments in renewable energy, green infrastructure, transportation, and other industries that help reduce environmental impacts and create jobs. The green treaty is not an international treaty in the traditional sense; this is more of a strategic policy direction adopted at the national or regional level to promote sustainable development and combat climate change.

Public administration bodies in Ukraine monitor the state of the environment and analyze data on emissions, water pollution, noise levels and other aspects related to the activities of industrial facilities. Enterprises engaged in industrial activities must have appropriate licenses and permits for emissions and pollution, public administration bodies issue these documents and monitor their implementation. Environmental control includes checking the quality of air, water and soil in areas where industrial enterprises operate. The control results are used to identify pollutants and establish measures to reduce the negative impact on the environment. In case of violation of environmental norms and standards, enterprises may be deprived of licenses and incur administrative or criminal liability. This encourages businesses to comply with environmental regulations. Ukraine is developing public control over compliance with environmental norms and standards. Public organizations and activists can contribute to monitoring and ensuring the openness and objectivity of the process.

State environmental control is one of the tools for implementing industrial policy in Ukraine. It is aimed at ensuring compliance with the requirements of environmental legislation by subjects of industrial activity and protecting the environment from the negative impact of industry.

The main contradictions of state environmental control in Ukraine include:

- Contradictions between the needs for Environmental Protection and the needs for industrial development. State environmental control should ensure a balance between the needs for environmental protection and the needs for industrial development. However, in practice, this balance is often disturbed.

- Contradictions between the powers of state inspectors for Environmental Protection and the rights of industrial entities. State environmental inspectors have broad powers that can sometimes violate the rights of industrial entities.

Effective environmental control at the regional level in Ukraine is important for preserving the natural environment and ensuring the health of citizens. improving this process may include strengthening the rule of law, developing new monitoring technologies and raising public awareness of environmental issues.

Conclusions

The features of the organizational and administrative mechanism are analyzed, and it is found out that there is no functional comprehensive system of strategic planning in Ukraine, that is, there is no single mechanism in the country that would ensure the development, implementation and evaluation of development strategies at all levels of management. As a result, the development and implementation of numerous government programs was mostly unorganized, without taking into account strategic goals or a clear mission. These programs were often unbalanced in terms of resources, resulting in insufficient funding and failure to meet their planned goals.

Institutional support is caused by a number of problems, including industrial development and industrial policy, and their results are not controlled by a single institution in the executive power structure. Instead, the management of industry is distributed among different ministries and departments, organized by sector or function. The powers and tasks of the relevant authorities often coincide, and their actions may even hinder industrial production.

One of the most pressing problems of modern Ukraine is the shortage of labor resources, especially highly qualified ones. This problem is particularly relevant for the industrial sector. Solving the issue of training qualified industrial personnel is extremely important for the strategic security of Ukraine, as it provides a competitive advantage to the Ukrainian economy and the opportunity to create a significant presence on the world economic stage.

Since the beginning of the war, the transport infrastructure has suffered significant damage and needs to be restored. So far, a full assessment of the damage cannot be obtained. The energy infrastructure is completely dependent on imported energy carriers. Problems in the communication infrastructure can significantly complicate the implementation of industrial policies, including the following: low internet speed and availability, network instability, lack of coverage in certain regions, and weak cybersecurity.

The main problems of the energy infrastructure are identified as: monopolization of the energy markets of Ukraine; deterioration of the energy infrastructure of Ukraine; the structure of the fuel and energy complex largely depends on imported energy carriers.

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