DIGITAL TRANSFORMATION OF UKRAINE: IMPACT ON THE ECONOMY, QUALITY OF LIFE AND ACHIEVEMENT OF SUSTAINABLE DEVELOPMENT GOALS
Abstract
The adoption of digital technologies and integration into the networked economy have become essential for the advancement of modern societies, with the aim of enhancing economic development, quality of life, and achieving sustainable development goals (SDGs). In the face of Russia's ongoing war against Ukraine, the country is making efforts to embrace digital transformation and apply it to improve various aspects of society and the economy. This research aims to evaluate Ukraine's preparedness for a networked economy through an examination of the digital transformation's influence on its economy, quality of life, and advancement towards achieving the SDGs. The evaluation is based on several international indices and metrics, which highlight the country's strengths and areas that require improvement. The findings indicate that Ukraine has shown significant progress in the economic dimension owing to digital transformation. In 2023, Ukraine ranked 35th in the economy meter, a substantial improvement from 75th in 2019. However, the country faces challenges in high-tech production and exports, which limit its potential for transitioning to a high-tech industry. The Quality of Life meter showed improvement, with Ukraine moving from 82nd place in 2019 to 59th place in 2023, despite the adverse effects of the ongoing war. Conversely, the SDG Contribution dimension revealed a deteriorating trend, with Ukraine dropping from 43rd place in 2019 to 86th place in 2023, indicating insufficient progress towards sustainable development. The study concludes that, while Ukraine has made strides in integrating into the networked economy, significant efforts are required to overcome existing barriers. These include enhancing high-tech production and exports, reducing income inequality, improving quality of life, and better addressing urban pollution and clean energy generation to achieve the SDGs. Ukraine can achieve full integration into the global networked economy and ensure sustainable economic growth and social development by concentrating on these areas and incorporating innovative digital technologies. The continuous digitalization will play a crucial role in this process, driving economic development, enhancing the quality of life, and supporting the attainment of sustainable development goals. Moreover, further research and practical implementation of digital technologies are critical for advancing these objectives and enhancing societal resilience and innovation.
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