United territorial communities in Ukraine in the context of fiscal decentralization

Abstract

Since the beginning of the administrative and territorial reform in Ukraine, the financial decentralization process has been intensified. It aims at optimizing the budgetary resource redistribution in order to make communities financially independent. This significantly increases the financial capacity for self-organization and self-development of a united territorial community, which determines the need to apply valuation methods to increase the territory’s investment attractiveness.The article outlines the peculiarities of the united territorial communities (UTCs) management under fiscal decentralization, taking into account the need to apply current methods of value-oriented management. At the same time, the use of SWOT analysis as one of the methods of value-oriented management made it possible to evaluate the efficiency and attractiveness of UTCs under decentralization. The financial activity of 665 UTCs was analyzed and the model for managing the united territorial community was created. It is emphasized that the modern understanding of financial support for united territorial communities remains unresolved today, and the expediency to introduce changes in the UTC, which envisage using the subsidiarity principles, is not justified.The key directions for managing the UTCs are identified. This refers to communities that began their activities and already faced the first challenges: management of available resources, provision of needs and sustainable development of the community, changes in the ratio of their income and expenditure components, increase in the budget income per capita.It is recommended to focus on tools of value-oriented management in the united territorial communities in order to attract investors and increase the financial capacity of local authorities.

The impact of European integration processes on the investment potential and institutional maturity of rural communities

“…This exacerbates other problems of interaction in communities, including with external stakeholders (Putra & Burhanuddin, 2019). Systemic problems of financial mechanisms development and budget execution in Ukraine hinder the development of many mechanisms of socio-economic development (Sytnyk et al, 2019), including mechanisms of national support for rural development (Korbutiak et al, 2019). Therefore, the search for ways to intensify the investment activities of rural communities and their own efforts to attract investment, is a particularly important area of the development of local communities.…”

A value-oriented approach to assessing regional economic development projects

“…Some aspects of strategic development planning of the united communities are investigated in the studies (Ahmed et al, 2018;Gavatiuk et al, 2020;Milovic et al, 2020;Кrayneva et al, 2017;Pavel et al, 2018). In this regard authors' recommendations are developed within the framework of prosperity and overall socioeconomic development (Bilan et al, 2020b;Ginevičius et al, 2018;Meyer & Meyer, 2019;Mishchuk et al, 2020), sustainable development goals achievement (Krzymowski, 2020), improvement of infrastructure for regional development (Nugraha et al, 2020;Poór et al, 2018), particularly considering the problems of regional development in countries with immature economy (Kozlovskyi et al, 2019;Korbutiak et al, 2019).…”