THE MISMANAGED INTEGRATION OF ZAPORIZHZHYA WITH THE WORLD-ECONOMY - IMPLICATIONS FOR REGIONAL-DEVELOPMENT IN PERIPHERAL REGIONS

In Soviet times, Zaporizhzhya, a major industrial town in South Easter n Ukraine, developed in almost complete isolation from the world econo my and world society. After the independence of Ukraine in 1991, Zapor izhzhya endured rapid industrial decline. The internationalization tha t has taken place was mostly confined to markets rather than to produc tive structures. The export base became very weak mainly based on the export of subsidized steel and aluminium. This paper analyses the moda lities of the integration of Zaporizhzhya into the world economy and t he impact this had upon endogenous development potential. In particula r the institutional barriers, such as the lack of 'social capital', to Zaporizhzhya's beneficial integration into the world economy are cons idered.