Introduction. Overcoming the phenomena of de-industrialization and structural degradation of the Ukrainian economy should be based on the development and implementation of structural and industrial policies, given the need to achieve the Sustainable Development Goals of the country and the corresponding transition of the economy to the tracks of inclusive and sustainable industrial development.
Purpose. To analyze the key challenges facing the Ukrainian industry and propose directions for shaping national policies for inclusive and sustainable industrialization.
Results. Key indices of development of the Ukrainian industry in comparison with some industrially developed countries are analyzed. Emphasis is placed on the inconsistency of industrial transformation processes in our country with the world trends and trends of inclusive and sustainable industrial development, defined by the Lima Declaration of UNIDO's, in particular in the context of the dynamics and structure of production and export, technological level, the need to improve labor productivity and income of the population, approximation to social inclusivity and fair distribution of national wealth, the transfer of production to environmental safety rails. The key defects of the state economic policy which led to negative tendencies are outlined. Attention is drawn to the actual refusal of the state from industrial policy, both in the "vertical" and "horizontal" variants of it, the replacement of structural policy by deregulation and orientation to the formal improvement of the country's positions in international ratings with further deterioration of the economic situation. The institutional distortions that led to the unfair distribution of the country's wealth and the emergence of domestic peculiarities of the short-terminism phenomenon in state and corporate decision-making are shown. The model and main directions of the policy of inclusive and sustainable industrialization are offered. It is based on the principle of dualistic combination of means of "vertical" and "horizontal" industrial policy, outlines priority directions of development of domestic industry, based on the possible specialization of the country and the existing threats and challenges. The key role of the state in this process is emphasized and the conclusion is made about the necessity of its transformation into a " developmental state", whose activity will be subordinate to the interest of the whole population of the country, and public property should be considered as an effective means for reviving production and creating the "total causality effect" of inclusive industrialization and achievement social justice.
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