THE ECONOMIC DEVELOPMENT STRATEGY OF DONBAS WILL BE BASED ON COMMUNITY DEVELOPMENT
The economic development strategy of Donetsk and Luhansk oblasts focuses primarily on the needs of people and amalgamated communities in which they live.
"Economic development of Donbas is impossible without the development of communities, which, in particular, are located on the contact line with non-Government controlled territories. The Ministry for Reintegration of the Temporary Occupied Territories is preparing the Strategy of Economic Development of Government-controlled Donetsk and Luhansk oblasts, which will reflect the proposals of communities which reside there," said First Deputy Minister for Reintegration Rostyslav Zamlynskyi during a press conference of the Coalition of Frontline Communities "On the contact line" where they discussed the economic development of frontline territories of Donetsk and Luhansk oblasts.
According to Zamlynskyi, the Strategy of economic development of Donetsk and Luhansk oblasts will include the development in three ways: by establishment of conditions for attracting domestic and foreign investment, financing development from the state budget and international donors and organizations. The focus is on people. The Strategy would be targeted on establishment of comfortable conditions for the population and increasing employment. Local communities should become the basis of economic growth. The logic of the Strategy is to establish attractive conditions for businesses that, through the payment of taxes, will ensure sustainable community development. "The territories along the contact line are not the territories of crisis, but of new development and new opportunities. This Strategy will be realized in Luhansk and Donetsk oblasts on the Government-controlled territory, first in communities along the contact line and then in all other settlements on the Government-controlled territory of Ukraine. Immediately after the de-occupation of the temporarily occupied territories of Ukraine and restoration of the work of Ukrainian authorities and local governments there, we will implement these mechanisms there as well," added Rostyslav Zamlynskyi.
He noted that the Strategy will provide for the amendments to the control system by state authorities to the function of voluntary liability insurance for business owners, insurance of political and military risks for investors, redistribution of the share of tax revenues between the state and local budgets, exemption of businesses from VAT and import duty on equipment, the system of compensation for part of single social security tax and personal income tax, replacement of corporate income tax with the tax on capital withdrawal in Donetsk and Luhansk oblasts. "This is a kind of economic experiment. If these things can be realized there, it will be possible to offer it to be implemented throughout Ukraine. Donbas may become a kind of center of innovative development," said Rostyslav Zamlynskyi.
Furthermore, the Strategy will provide for diversification of economy of mining mono-functional cities, expansion of mechanisms for socially responsible business attraction and development of interregional industrial cooperation, in particular, deepening of ties between Luhansk and Donetsk oblasts and enterprises of other regions. More on this subject can be found in the video: https://www.youtube.com/watch?v=p_r_jFjvzg0
Rostyslav Zamlynskyi recalled that the Ministry for Reintegration had already sent a draft concept for the future Strategy of economic development of the regions, taking into account the proposals provided during the visit to Donetsk and Luhansk oblasts, for approval by the central executive authorities and local governments.
It is planned to complete the development of the concept in autumn of this year.
According to the UN, the contact line in the East of Ukraine reaches a length of 427 km. There are 155 settlements with up to 400 000 residents along the contact line.
Photo credit: Mykola Berdnyk, DW