REGIONAL ASPECTS OF INCOME INEQUALITY IN UKRAINE AND MECHANISMS OF INCLUSIVE DEVELOPMENT

Abstract

The article examines the issue of regional income inequality in Ukraine in the context of the need to implement inclusive development. The purpose of the study is to identify and analytically assess regional disparities in the income levels of the Ukrainian population, as well as to substantiate mechanisms of inclusive development capable of reducing regional socio-economic inequality and enhancing social cohesion in the post-war recovery period. An assessment of income dynamics and the Gini index was carried out, which revealed a persistent imbalance in the distribution of financial resources across regions. Special attention is paid to the spatial dimensions of income inequality, which do not always correlate with the national-level trends. The legal and regulatory framework defining the institutional foundations of social protection and regional equalization was analyzed, along with the identification of its limitations in terms of the effective implementation of support mechanisms. The effectiveness of inclusive development policies largely depends on the existence of clear legal norms aimed at ensuring social justice, territorial balance, and access to basic services.

To identify potential solutions, the paper explores the practices of European Union member states in combining progressive fiscal policy, targeted social assistance, access to basic services, and investment in human capital. Based on comparative analysis, recommendations are proposed for improving Ukraine’s inclusive development policy, particularly through the introduction of digital monitoring tools, social impact assessment (SIA), and the strengthening of regional financial autonomy. The study emphasizes the importance of strategically integrating inclusiveness into regional policy as a prerequisite for overcoming social fragmentation, increasing mobility, and ensuring social cohesion during post-war reconstruction.