Development of value chains to increase the sustainability of Ukrainian industry in the conditions of post-COVID

27
8
Article(UKR)(.pdf)

The paper considers the conceptual grounds of the possibility of integration of the Ukrainian industry into circular value chains. The authors have identified the global challenges threatening the industry development of Ukraine caused by the COVID-19 pandemic, such as border closings, the increased requirements of security due to isolation, the blockage of labour migration flows, the disruption of intermediate goods supply chains, the decline in production operations, a considerable shortage of capital, declining returns, undermining the financial stability and liquidity; increasing the probability of failure. Implementation of Ukrainian industry on the circular value chains contributes to the achievement of the Sustainable Development Goals and the prospects for the restoration of Ukraine’s industrial capacity in the harsh conditions of the coronavirus pandemic. Due to assessment of the losses caused by COVID-19 authors have shown that supply disruptions had effect on reducing the length of value chains, particularly in the machinery, metallurgy and textile sectors. The authors have determined that circular value chains maximize value-added throughout the product life cycle to increase the recycling of materials. The prospects for the integration of Ukrainian industry into circular value chains were justified, in particular, production of paper, paperboard, PET and glass; recycling of building debris, used clothing, tyres and organic waste; repair and rehabilitation of household appliances. An important role can be played by Ukrainian industry, which, although under challenging conditions, has sufficient potential in circular value chains. With this purpose, the following government incentives were developed: improvement of legislation, implementation of the principles of balanced Ukrainian development, financial support for projects aimed at developing a circular economy, as well as development of regional waste management plans with special focus on the European Green Deal.

  1. Horobin, W., Rajbhandari, А. (2020, July 4). ECB’s lagarde expects disinflation as crisis transforms economy. URL: https://www.bloomberg.com/news/articles/2020-07-04/ecb-s-lagarde-expects-disinflation-as-crisis-transforms-economy

  2. Marsh, P. (2015). A new industrial revolution. Consumers, globalization and the end of mass production. Moscow: Gaidar Institute Press [in Russian]

  3. Schmid, D., Ritzrau, W. (2018, September 20). Why the circular economy must link up the whole supply chain. URL: https://www.weforum.org/agenda/2018/09/why-the-circular-economy-needs-to-link-up-the-whole-supply-chain/

  4. Rodrik, D. (2014). The paradox of globalization: democracy and the future of the world economy. Moscow: Gaidar Institute Press [in Russian]

  5. Rainert, E.S. (2015). How rich countries got rich… and why poor countries stay poor. Kyiv: Tempora [in Ukrainian]

  6. Brennan, L., Ferdows, K., Godsell, J., Golini, R., Keegan, R., Kinkel, S., Srai, J.S., Taylor, M. (2015). Manufacturing in the World: Where Next? International Journal of Operations and Production Management, 35, 9, 1253-1274.

  7. Cattaneo, O., Gereffi, G., Miroudot, S., Taglioni, D. (2013). Joining, upgrading and being competitive in global value chains: a strategic framework. Policy Research working paper. No. WPS 6406. Washington, D.C.: The World Bank. URL: http://documents.worldbank.org/curated/en/254001468336685890/Joining-upgrading-and-being-competitive-in-global-value-chains-a-strategic-framework

  8. Castells, M. (2000). Information age: economy, society and culture. URL: https://www.gumer.info/bibliotek_Buks/Polit/kastel/index.php [in Russian]

  9. Batova, N., Sachek, P., Tochitskaya, I. (2018). Towards green growth: a window of opportunity for the circular economy. BEROC Green Economy Policy Paper Series. URL: http://www.beroc.by/upload/iblock/ae1/ae1bcb7979cd00ca76cd3e9fc72a3e9e.pdf [in Russian]

  10. Strengthening strategic value chains for a future-ready. EU Industry. Report of the Strategic forum for important. Projects of Common European Interest. URL: https://industryweek.in.ua/docs/Strategic-Forum-Strengthening-Strategic-Value-Chains-for-a-future-ready-EU-Industry.pdf

  11. Global trade impact of the coronavirus (COVID-19) epidemic. (2020, March 4). UNCTAD. URL: https://unctad.org/en/PublicationsLibrary/ditcinf2020d1.pdf

  12. Strengthening strategic chains of added value for the modern EU industry. URL: https://industryweek.in.ua/docs/Strategic-Forum-Strengthening-Strategic-Value-Chains-for-a-future-ready-…%202.pdf [in Ukrainian]

  13. High-technology exports (% of manufactured exports). (2019). The World bank Group. URL: https://data.worldbank.org/indicator/TX.VAL.TECH.MF.ZS?end=2018&locations=UA-1W&start=2007&view=chart

  14. Plastic is coming: Why is Ukraine buying someone else’s waste? (2019, October 30). Recycling solutions. URL: https://re-solutions.com.ua/ru/rus-plastyk-nastupaet-zachem-ukrayna-pokupaet-chuzhye-othody [in Russian]

  15. New important: circular economy. (2019, февраля 22). Delo.ua. URL: https://zza.delo.ua/know/novoe-vazhnoe-cirkuljarnaja-ekonomika-350397/ [in Russian]

  16. Communication from the commission to the European parliament, the council, the European economic and social Сommittee and the Сommittee of the regions. A new Circular Economy Action Plan for a cleaner and more competitive Europe. (11.3.2020). Brussels. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN

  17. United Nations Environment Program. URL: https://www.unenvironment.org/ru/programma-oon-po-okruzhayuschey-srede [in Russian]

  18. Accenture strategy. Circular Advantage: Innovative Business Models and Technologies to Create Value in a World without Limits to Growth. (2014). URL: https://www.accenture.com/t20150523t053139__w__/us-en/_acnmedia/accenture/conversion-assets/dotcom/documents/global/pdf/strategy_6/accenture-circular-advantage-innovative-business-models-technologies-value-growth.pdf

  19. Zhdanovich, Yu. (2018). Zero waste as a lifestyle: a wasteless reality. URL: http://shahter.by/obshchestvo/zero-waste-kak-stil-zhizni-bezothodnaya-realnost [in Russian]

  20. How Xerox Succeeds in the Circular Economy. (2018, May 3). Xerox Blog. URL: https://www.mera.org/news/how-xerox-succeeds-circular-economy

  21. Environment in Ukraine. URL: http://www.ukrstat.gov.ua/druk/publicat/Arhiv_u/07/Arch_dov_zb.htm [in Ukrainian]

  22. Pakhomova, N.V., Richter, K.K., Vetrova, M.A. (2017). Transition to circular economy and closedloop supply chains as driver of sustainable development. St Petersburg University Journal of Economic Studies, 2, 244-268 [in Russian]

  23. Fedorchuk, Ya., Servetnyk, D. Circular economy. Organizational and legal aspects. URL: https://www.businesslaw.org.ua/circle-economic-t [in Ukrainian]

Full text