Scientific Center of Innovative Research, International Conference on Corporation Management-2024

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DEVELOPMENT OF THE RENTAL HOUSING MARKET THROUGH THE PRISM OF MANAGING THE STATE ECONOMIC SECURITY FOR THE RECOVERY OF THE ECONOMY OF UKRAINE IN THE DURING THE WAR AND POST-WAR PERIODS
Mykola Denysenko, Svitlana Breus, Yehor Prytula


Abstract


In the conditions of a full-scale war between russia and Ukraine, issues directly related to ensuring the conditions not only for the survival of the state, but also its restoration in size, scope and scale before the beginning of the Great War, are becoming actualized.

As a result of russia's attack on Ukraine, many human destinies were destroyed, lives were taken, infrastructure facilities (military, civil, critical, etc.) were destroyed, migration processes spread on a crisis scale, the solvency of the population decreased, significant damage was caused to the financial and real sectors of the economy, in particular due to the destruction of infrastructure facilities, the relocation of business entities, the loss of sales markets, the spread of migration processes, etc.

As a result of russian aggression, there was a sharp drop in GDP by 28.8% in 2022. For comparison, in 2023 there was a certain increase in the real GDP of Ukraine (according to various estimates it increased by 5-5.5%), which is considered as a recovery growth after 2022, but despite this, the GDP is still about a quarter less than in 2021 (Samoiliuk, & Levchenko, 2023).

The sum of Ukraine's losses from the russian-Ukrainian war is only preliminary. The very process of assessing (determining the amount of) damages caused by the war is regulated by the Methodology approved by the joint order of the Ministry of Economy and the State Property Fund dated October 18, 2022 No. 3904/1223 (Stadnik, 2023). It is used for the purpose of determining: real losses – losses of business entities due to loss, destruction or damage to their property in connection with russia's armed aggression; lost profits – losses of economic entities due to the impossibility or obstacles in conducting their economic activities; needs for expenses for restoration - expenses of business entities for the restoration of property damaged as a result of armed aggression.

As a result, "the amount of damage to the domestic infrastructure as of January 2024 reached almost $155 billion, taking into account losses due to the detonation of the Kakhovska HPP by the aggressor country in June 2023. At the same time, the greatest damage was caused to the housing stock: as a result of hostilities and regular shelling, more than 250,000 residential buildings were damaged and destroyed (of which 222,000 private houses, more than 27,000 apartment buildings and 526 dormitories), direct damage from their destruction amounted to $58.9 billion. In particular, Donetsk, Kyiv, Luhansk, Kharkiv, Chernihiv and Kherson regions have the largest number of destroyed residential buildings (Petrovskyi, 2024).

Losses of business assets were estimated at $11.4 billion. Not counting the facilities currently located in the temporarily occupied territories, at least 426 large and medium-sized private enterprises and state-owned companies were damaged or completely destroyed. A significant part of businesses was forced to relocate to safer regions of Ukraine. Both direct hostilities and flooding of territories had an impact on this. The total number of educational institutions that were destroyed as a result of the russian invasion almost reached 3,400. According to preliminary estimates, the damage caused was estimated at $9.7 billion. Institutions in the Kharkiv, Donetsk, Chernihiv, Zaporizhia, and Kyiv regions were the most affected (What losses did Ukraine suffer due to the russian invasion: new estimates by KSE, 2023).

In modern conditions, taking into account the significant losses of Ukraine in this war, the role of the state regarding the use of mechanisms of influence on the processes that are currently observed in all spheres of social life and, in particular, in russia's war against Ukraine, has led to the spread of migration processes (they are assessed as unprecedented since World War II), as a result of this, a previously unknown phenomenon appeared in Ukrainian society – millions of forced migrants, internally displaced persons, refugees, displaced persons, asylum seekers and emigrants. This forced migration crisis is unparalleled in its scale, geography, quantitative indicators and time frame, has no analogues in the world and far surpasses previous ones in the last half century, in particular, when compared to Afghanistan (1979-1989), and, in turn, provoked the emergence of more than 6 million refugees and emigrants; in Venezuelan (2013–2019) – 3 million; in Syrian (2019–2020) – almost 3 million people (Forced migration in the conditions of the russian-Ukrainian war and its negative consequences for the gene pool of Ukraine, 2022; The most severe migration crises in the world in recent years, 2021).

Such phenomena and circumstances contribute to the growth of crisis phenomena in all spheres of Ukraine's economy, the strengthening of the uncertainty and dynamism of the economic situation, as a result, the deterioration of Ukraine's investment climate and the growth of threats to the economic security of the state (Denysenko, Breus, & Prytula, 2023; Denysenko, Breus, Panchenko, & Prytula, 2024).

In the context of the research issues, it is suggested to take into account the dual nature of threats to the economic security of the state:

- they are both a consequence and a source of russian aggression and are manifested at all levels of management;

- they are carried by global policies and processes that occur as a result of the implementation of such policies and, as a result, measures to counter the aggressor at the international level, which is revealed especially vividly through the policy of financial assistance to Ukraine from foreign countries (Ukraine in 2023 continued to receive foreign financial aid – more than in 2022, amounted to $42.5 billion, for comparison, in 2022 – $31.1 billion), which came more regularly and predictably, despite the fact that it mostly came from in the form of loans (63% of all financial assistance), rather than grants, but were very preferential and necessary, as they allowed to finance important budgetary needs of Ukraine in the current period of time. The total needs of the state budget in additional financing for 2023 amounted to $59.9 billion – of which 47.9 billion budget deficit and 11.9 billion for debt repayment. Foreign aid covered 71% of these needs; the rest was financed mostly through the issuance of OVDP bonds (Samoiliuk, & Levchenko, 2023).

Taking into account the above, it should be noted that the development of programs for the balanced development of regions will contribute to increasing the level of economic security of the state (Denysenko, Breus, & Prytula, 2023; Denysenko, Breus, Panchenko, & Prytula, 2024), and therefore, ensuring its effective management overcoming disparities, in particular through the development of the rental housing market through the prism of managing the economic security of the state in the case of complex use of financial instruments (the financial and credit mechanism for providing citizens with housing - financial leasing is effective and has proven itself for a long time (Dvihun, & Karpa, 2018) was used in countries that went from war with an aggressor to economic growth (Denysenko, Breus, & Prytula, 2023; Denysenko, Breus, Panchenko, & Prytula, 2024). In particular, in "Diia" the program "Is Recovery" was launched, within the framework of which people will be paid funds for the repair of their homes that were damaged due to the war (Vons, R. 2023).

Eliminating the negative consequences of armed aggression requires intensifying the efforts of the entire civilized society to restore the economy in the post-war and post-war periods. This can be achieved, in particular, in the case of the development and implementation of measures at all levels of management regarding the development of the rental housing market through the prism of managing the economic security of the state in order to restore the economy of Ukraine in the war period and post-war periods.


Keywords


economic security; state economic security; investments; investment management; rental housing market; financial leasing; financial and credit mechanism of providing housing for citizens

References


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