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Disclaimer: This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.

The paper presents the results of scientific research «Structural change as a basis of inclusive economic development of Ukraine» in terms of regional aspects. The concept of inclusive economic development is a new paradigm which can substitute traditional and outdated approaches to social and economic development measurement (as GDP for example). Leading international organizations and institutions conduct studies on different aspects of inclusiveness, such as: OECD, United Nations Development Program (UNDP), the European Commission, International Monetary Fund (IMF), World Economic Forum (WEF), World Bank, International Policy Centre for Inclusive Growth (IPC-IG). In the presented scientific paper, the regional aspects and trends of inclusive economic development are brought to a focus. An analytical overview of the most representative and important international indices and ratings, relevant to the subject of study, which contain Ukrainian data, is presented. Among the most important indexes are: The Legatum Prosperity Index, The Global Competitiveness Index, The Global Innovation Index, Index of Economic Freedom, Doing Business Index etc. Also authors present approaches to assessing the level of Ukrainian regions’ inclusive development in the context of sustainable development goals (SDG). The methodology is modified by the authors on the ground of the Inclusive Development Index (by World Economic Forum). Inclusive Regional Development index of Ukraine (IRD) developed and presented by authors makes it possible to assess the regional characteristics of the seven key socio-economic areas: Economy, Business, Education, Health, Security & Defense, Environment, Social Capital. The key problem areas are identified. Directions of State structural policies are suggested to achieve the goals of inclusive development based on regional characteristics. The authors identified key problems and justification to promote the regions towards inclusiveness and sustainability.

The article considers analytical dimensions of traditional and inclusive economic growth, development and functioning of institutions in the process of actualization of value shift in society and change of economic transformations goal from economic growth as such to qualitative changes in the structure of a new spectrum of economic processes that play decisive and nowadays even vital role. Ukraine's place in this coordinate system was determined, and high untapped potential for inclusive development of the country was revealed. It is quite possible to restructure Ukraine's economic and social processes, even at the current level of GDP, in such a way as to ensure significantly higher rates of structural changes promoting inclusiveness. The means of preserving the predominantly extractive structure of the economy are outlined. It is substantiated that the problem of inequality is becoming more and more acute and is growing from economic (in terms of income and wealth) issue into a matter of education, health care, etc. However, a simple increase in the average level of GDP per capita will not automatically solve the issues, because these are structural problems that need coverage and attention from a completely different angle. The priority of implementation the structural reforms to increase the level of inclusiveness of institutions in key areas in the long term is argued. The greatest potential for the formation of inclusive society as a basis for ensuring a new quality of economic growth in Ukraine is contained in the Sustainable Development Goals 8 and 5, the combination of which creates a synergistic effect. In order to increase the level of inclusiveness of institutions, certain changes in the legislation are needed regarding anti-corruption institutions, the Tax Code of Ukraine, gender issues, approaches to rent distribution, oligarchic corporations, Big Tech activities in the country and many other issues. However, the main problem in Ukraine is not so much the laws as their implementation, because the rules should work, not the recommendations.

У статті встановлено оціночні характеристики відтворення людського потенціалу в Україні на основі методу гранично критичних (порогових) показників. Виявлено, що величезна кількість параметрів розвитку досліджуваної системи знаходиться за межами критичних значень, що може спричинити структурні зсуви у економічній системі найближчим часом. Обгрунтовано заходи із забезпечення успішних змін економічної системи та переходу до нової якості розвитку людського потенціалу в Україні. Ключові слова: людський потенціал, гранично критичні показники, оціночні характеристики відтворення людського потенціалу, удосконалення процесів формування людського потенціалу. * Публікацію підготовлено в рамках НДР «Структурні трансформації в економіці України: динаміка, суперечності та вплив на економічний розвиток» (№ держреєстрації 0111U002605).