For successful post-war reconstruction, Ukraine must double its GDP, according to EasyBusiness analysts. To accelerate economic growth, it is crucial to engage the regions. But how? In a special article for Rubryka, EasyBusiness Executive Director Dmytro Lyvch outlined the concept of growth poles. Essentially, this involves stimulating economic growth in so-called “poles” or “centers” and gradually spreading development to neighboring territories and peripheral areas. Read more details below, and find the full article on Rubryka’s website.

A key development strategy for regional and national economic growth is the growth pole concept, which focuses on concentrated economic stimulation in specific hubs and then expanding the benefits outward. For example, a town in Zhytomyr Oblast serves as a district center with strong institutional capacity to attract investors. It has already become an entry point for significant investments, such as the establishment of a manufacturing facility. However, due to a lack of suitable land within the town, the factory was built in a neighboring community.

This highlights a critical issue: the absence of clear mechanisms for intermunicipal cooperation. The town, as a growth pole, had an interest in industrial development but lost some of the benefits since the project was implemented outside its jurisdiction. Therefore, effective collaboration between growth poles and surrounding areas is essential for successful economic development. With well-developed infrastructure and transportation links, residents of peripheral settlements could work in the city while continuing to live in their own communities. This would promote balanced regional economic growth, improve living standards, and strengthen local budgets.

According to Dmytro Lyvch, European integration provides an opportunity to implement such a balanced strategy, which can help reduce regional disparities while supporting post-war recovery and economic growth.

“European integration and post-war recovery will have the greatest impact on Ukraine’s economic development in the coming years. Most countries that joined the EU have centers of economic gravity—regions that attract investments. The closer a region is to these centers, the more investment it receives, leading to higher regional GDP, more opportunities for businesses, and job creation. This will be the case for Ukraine as well. Meanwhile, post-war recovery efforts will be focused on the regions most affected by the war. Identifying growth poles can serve as an effective economic tool to ensure strategic economic profiling for regions and help determine the competitive advantages of each region or macro-region,” the expert concluded.

Starting today, investments must be made in the development of stronger agglomerations and growth poles so they can become powerful economic drivers capable of supporting less developed areas.

Attracting businesses, creating industrial parks, developing logistics centers, and investing in modern clusters can provide the necessary boost for regional economic growth. The key objective is not just fostering cooperation between communities but accelerating economic development. At the national level, this requires synergy between multiple institutions. Specifically, it involves collaboration between the Ministry of Community and Territorial Development, which defines territorial priorities and coordination, and the Ministry of Economy, which develops sectoral strategies and supports industrial parks. Regional authorities should facilitate cooperation between communities and state structures, while local governments must implement strategies, attract investments, and leverage available tools for local development.

Other crucial areas for establishing a sustainable growth pole include human capital development, creating a comfortable living environment, institutional growth, and cooperation between neighboring communities.

Implementing the growth pole concept in Ukraine will help drive regional economic development, reduce disparities between communities, and promote the country’s integration into the European economic space.

Read the study “Growth Poles: A Path to Economic Recovery and European Integration.”