Modernization Of Productive Forces As Determinant Of Sustainable Development Of Problematic Regions

The transition to a market economy created a number of problems in the development of the regions of Ukraine. A sharp decline in production occurs, a number of employees decreases, an environmental component is deteriorated, a social situation in society is exacerbated and, consequently, the negative demographic processes occur in most regions. The combination of these negative factors led to significant problems in the development of the productive forces. Therefore, the solution of regional problems of economic and social development is an extremely important task for the central legislative and executive authorities. One of the ways to lead out the problematic regions from a deep systemic crisis is the modernization of the productive forces on the cluster approach basis, which implies a strategic restructuring of production, increasing workplaces amount, attracting highly skilled professionals, using innovative technologies in production, which in turn will significantly increase the investment attractiveness of problematic regions. In this article the essence of the concepts «sustainable development of the region» and «modernization of productive forces» were considered. It is proved, that the modernization of the productive forces based on the principles of cauterization is the determining factor for sustainable development of problematic regions.