Priority areas for the formation of capable territorial communities in Ukraine
Abstract
Purpose. The purpose of the article is to determine the priority areas and opportunities for removing limitations to the formation of capable territorial communities in the wartime period by implementing a model focused on the diversification of financial, organisational, and social capacity tools.
Methodology / approach. The article uses general scientific research methods to systematise the obtained results; the method of generalisations and critical analysis – to assess the results of decentralisation of the management system in terms of compliance with the tasks of forming capable territorial communities; economic and statistical analysis – to identify trends in the development of communities in the pre-war and war periods; method of comparative analysis – to identify differences in indicators of socio-economic development of different types of communities; graphical analysis – to visualise the results of the assessment of the subsidisation of territorial communities in terms of their population and the dependence of the reverse subsidy’s volume on the population of communities-cities of regional importance; the method of analogies and scenario modeling – to substantiate the priority areas for the formation of capable communities in the conditions of the war period.
Results. An assessment of the main results of management decentralization in terms of impact on the capacity of territorial communities in the pre-war and war periods is carried out. Changes in the capacity of wartime communities and obstacles to its strengthening are revealed. It is determined that against the background of successful solution of the decentralization tasks of management, the problematic aspects of community development remained, in particular their excessive differentiation by the main indicators of socio-economic development, primarily their population and population density; maintaining a high share of communities with subsidized budgets; slow rate of reduction of development asymmetry between urban and rural communities. The ambiguity of the influence instruments on the capacity of territorial communities was revealed, first of all, the mechanism of horizontal equalisation of budgets, which is based on the balance of basic and reverse subsidies. Based on the analysis of the main indicators of socio-economic development of the surveyed communities, an empirical dependence has been established, according to which the growth of the total population and its density causes a corresponding reduction in the number of subsidized territorial communities of a certain region. The main directions are defined and the mechanism for increasing the financial and organizational capacity of communities is substantiated.
Originality / scientific novelty. The priority areas for strengthening the capacity of territorial communities in wartime is proposed, which takes into account the problem field of their development, existing restrictions and risks, as well as the demand of the communities themselves for sustainable development. Trends in the pre-war development of territorial communities and changes in the war period in terms of opportunities to strengthen their potential in the economic and social spheres are identified. Strategic directions and tools for increasing the capacity of communities of different types are proposed, taking into account their differences in the main indicators of socio-economic development, primarily population. The necessity of a conceptually new approach to assessing the potential of the capacity of territorial communities, which is based on the criteria of competitiveness and identifies the main sources of its achievement, has been proved.
Practical value / implications. The study results have practical significance for regional administrative structures, local self-government bodies formed as a result of reforming the territorial organisation of power, as well as regional state administrations in promoting the formation of capable communities, their sustainable development on the basis of self-government, inclusiveness, and complementarity of the interacting parties’ interests.
References
Tran C., Kortt M., Dollery B. Population size or population density? An empirical examination of scale economies in South Australian local government, 2015/16. Local Government Studies. 2019. Vol. 45. Is. 5. Pp. 632–653. https://doi.org/10.1080/03003930.2018.1501364.
Solé-Ollé A., Bosch N. On the relationship between authority size and the costs of providing local services: lessons for the design of intergovernmental transfers in Spain. Public Finance Review. 2005. Vol. 33. Is. 3. Рp. 343–384. https://doi.org/10.1177/1091142104272708.
Hornyk V. H., Kravchenko S. O., Simak S. V., Shevchenko O. O. et al. Reform of the territorial organization of power in Ukraine as a mechanism of anti-crisis management. Journal of Advanced Research in Law and Economics. 2020. Vol. 11. No. 4. Pp. 1153–1159. https://doi.org/10.14505//jarle.v11.4(50).10.
Khirivskyi R., Yatsiv I., Petryshyn L., Pasichnyk T. et al. Assessment of the efficiency of employment of the communities’ resource potential using different approaches. TEM Journal. 2022. Vol. 11. No. 1. Pp. 367–373. https://doi.org/10.18421/TEM111-46.
Patynska-Popeta M. Institutional bases of socio-economic and financial development UTS. Scientific Horizons. 2019. No. 10(83). Pр. 41–50. https://doi.org/10.33249/2663-2144-2019-83-10-41-50.
Gavkalova N., Akimova L., Zilinska A., Lukashev S. et al. Functioning of united territorial communities and identification of main problems of organizational support of local budget management. Financial and Credit Activity: Problems of Theory and Practice. 2022. Vol. 2. No. 43. Pp. 107–117. https://doi.org/10.55643/fcaptp.2.43.2022.3708.
Reingewertz Y. Do municipal amalgamations work? Evidence from municipalities in Israel. Journal of Urban Economics. 2012. Vol. 72. Is. 2–3. Рp. 240–251. https://doi.org/10.1016/j.jue.2012.06.001.
Drew J. Reforming local government. Consolidation, cooperation, or re-creation? Springer Singapore, 2020. 166 p. https://doi.org/10.1007/978-981-15-6503-8.
Drew J., McQuestin D., Dollery B. Did amalgamation make local government more fit for the future? Australian Journal of Public Administration. 2022. Vol. 81. Is. 2. Pp. 383–398. https://doi.org/10.1111/1467-8500.12530.
Sandsør A. M. J., Falch T., Strøm B. Long-run effects of local government mergers on educational attainment and income. Oxford Bulletin of Economics and Statistics. 2022. Vol. 84. Is. 1. Pp. 185–213. https://doi.org/10.1111/obes.12441.
Nakano S., Washizu A. Will smart cities enhance the social capital of residents? The importance of smart neighborhood management. Cities. 2021. Vol. 115. 103244. https://doi.org/10.1016/j.cities.2021.103244.
Mathews M. C. How village leaders in rural Amazonia create bonding, bridging, and linking social capital configurations to achieve development goals, and why they are so difficult to maintain over time. World Developmen. 2021. Vol. 146. 105541. https://doi.org/10.1016/j.worlddev.2021.105541.
Eriksson M., Santosa A., Zetterberg L., Kawachi I. et al. Social capital and sustainable social development – how are changes in neighbourhood social capital associated with neighbourhood sociodemographic and socioeconomic characteristics? Sustainability. 2021. Vol. 13. Is. 23. 13161. https://doi.org/10.3390/su132313161.
Khirivskyi R., Petryshyn L., Pasichnyk T., Brukh O. et al. Assessment and forecast of the efficiency of use of the financial resources of amalgamated territorial communities in the context of European integration. European Journal of Sustainable Development. 2020. Vol. 9. No. 3. Pp. 607–615. https://doi.org/10.14207/ejsd.2020.v9n3p607.
Medvid V., Pylypenko V., Pylypenko N., Volchenko N. et al. Factors of rural development in the context of decentralisation: empirical research. Economic Annals–XXI. 2019. Vol. 177. Is. 5–6. Pp. 126–140. https://doi.org/10.21003/ea.V177-11.
Storonyanska I., Nowakowska A., Benovska L., Dub A. Imbalances and risks of the regional development of Ukraine’s economy under conditions of instability. Agricultural and Resource Economics. 2022. Vol. 8. No. 3. Pp. 81–97. https://doi.org/10.51599/are.2022.08.03.05.
Yakobchuk V., Khodakovsky Y., Heimerl O., Plotnikova M. Alternative imperatives of the decentralized societies activities. Scientific Horizons. 2020. No 4(89). Рp. 15–26. https://doi.org/10.33249/2663-2144-2020-89-4-15-26.
Про внесення змін до Методики формування спроможних територіальних громад: Постанова Кабінету Міністрів України від 24.01.2020 р. № 34. URL: https://zakon.rada.gov.ua/laws/show/34-2020-%D0%BF#Text.
Горбатюк М. Реформа децентралізації в Україні: проблеми здійснення в умовах суспільної кризи. Політичні дослідження. 2021. № 1. С. 22–40. https://doi.org/10.53317/2786-4774-2021-1-2.
Солодкий С., Левонюк Т., Баласанян В., Дзюпин M. та ін. Взаємозв’язок між децентралізацією та європейською інтеграцією. Центр «Нова Європа; Центр східноєвропейських та міжнародних досліджень, 2020. 30 с. URL: http://neweurope.org.ua/wp-content/uploads/2020/02/Decentralization_ukr_web-2.pdf
Petrushenko Y., Ventsel V., Garbuz V., Kolomiiets U. et al. Innovations in management of fiscal equalisation: decentralization reform. Marketing and Management of Innovations. 2020. Vol. 1. Рp. 208–221. http://doi.org/10.21272/mmi.2020.1-17.
Держбюджет-2022: які дотації отримають регіони. Слово і діло. URL: https://www.slovoidilo.ua/2022/01/21/infografika/finansy/derzhbyudzhet-2022-yaki-dotacziyi-otrymayut-rehiony.
Аналіз вирівнювання доходної спроможності місцевих бюджетів. Проєкт USAID «Підвищення ефективності роботи і підзвітності органів місцевого самоврядування» («ГОВЕРЛА»). 2022. URL: https://decentralization.gov.ua/en/news/15207.
Ялівець Г. Кабмін виділяє регіонам та громадам додаткові дотації. Бізнес цензор. URL: https://biz.censor.net/news/3416607/kabmin_vydilyaye_regionam_ta_gromadam_dodatkovi_31_milyarda_dotatsiyi.
Річна звітність про виконання дохідної частини Зведеного бюджету України за 2016–2020 рр. Державна казначейська служба України. URL: https://www.treasury.gov.ua/ua/fle-storage/vikonannya-derzhavnogobyudzhetu.
Оцінка фінансових показників бюджетів 872 ОТГ: рейтинг за 9 місяців 2020 року. Портал «Децентралізація». URL: https://decentralization.gov.ua/news/12952.
Прилипко Є. Яким має бути фінансування та управління закладами охорони здоров’я в умовах децентралізації. Українська правда. URL: https://life.pravda.com.ua/columns/2021/07/20/245440.
Focus on citizens: public engagement for better policy and services. Paris: OECD Publishing, 2009. 322 р. https://doi.org/10.1787/9789264048874-en.
REFERENCES
Tran, C., Kortt, M., & Dollery, B. (2019). Population size or population density? An empirical examination of scale economies in South Australian local government, 2015/16. Local Government Studies, 45(5), 632–653. https://doi.org/10.1080/03003930.2018.1501364.
Solé-Ollé, A., & Bosch, N. (2002). On the relationship between authority size and the costs of providing local services: lessons for the design of intergovernmental transfers in Spain. Public Finance Review, 33(3), 343–384. https://doi.org/10.1177/1091142104272708.
Hornyk, V. H., Kravchenko, S. O., Simak, S. V., Shevchenko, O. O., & Bezena, I. M. (2020). Reform of the territorial organization of power in Ukraine as a mechanism of anti-crisis management. Journal of Advanced Research in Law and Economics, 11(4), 1153–1159. https://doi.org/10.14505//jarle.v11.4(50).10.
Khirivskyi, R., Yatsiv, I., Petryshyn, L., Pasichnyk, T., Kucher, L., & Irtyshcheva I. (2022). Assessment of the efficiency of employment of the communities’ resource potential using different approaches. TEM Journal, 11(1), 367–373. https://doi.org/10.18421/TEM111-46.
Patynska-Popeta, M. (2019). Institutional bases of socio-economic and financial development UTS. Scientific Horizons, 10(83), 41–50. https://doi.org/10.33249/2663-2144-2019-83-10-41-50.
Gavkalova, N., Akimova, L, Zilinska, A., Lukashev, S., Avedyan, L., & Akimov, O. (2022). Functioning of united territorial communities and identification of main problems of organizational support of local budget management. Financial and Credit Activity: Problems of Theory and Practice, 2(43), 107–117. https://doi.org/10.55643/fcaptp.2.43.2022.3708.
Reingewertz, Y. (2012). Do municipal amalgamations work? Evidence from municipalities in Israel. Journal of Urban Economic, 72(2), 240–251. https://doi.org/10.1016/j.jue.2012.06.001.
Drew, J. (2020). Reforming local government. Consolidation, cooperation, or re-creation? Springer Singapore. https://doi.org/10.1007/978-981-15-6503-8.
Drew, J., McQuestin, D., & Dollery, B. (2022). Did amalgamation make local government more fit for the future? Australian Journal of Public Administration, 81(2), 383–398. https://doi.org/10.1111/1467-8500.12530.
Sandsør, A. M. J., Falch, T., & Strøm, B. (2022). Long-run effects of local government mergers on educational attainment and income. Oxford Bulletin of Economics and Statistics, 84(1), 185–213. https://doi.org/10.1111/obes.12441.
Nakano, S., & Washizu, A. (2021). Will smart cities enhance the social capital of residents? The importance of smart neighborhood management. Cities, 115, 103244. https://doi.org/10.1016/j.cities.2021.103244.
Mathews, M. C. (2021). How village leaders in rural Amazonia create bonding, bridging, and linking social capital configurations to achieve development goals, and why they are so difficult to maintain over time. World Developme, 146, 10554. https://doi.org/10.1016/j.worlddev.2021.105541.
Eriksson, M., Santosa, A., Zetterberg, L., Kawachi, I. & Ng, N. (2021). Social capital and sustainable social development – how are changes in neighbourhood social capital associated with neighbourhood sociodemographic and socioeconomic characteristics? Sustainability, 13(23), 13161. https://doi.org/10.3390/su132313161.
Khirivskyi, R., Petryshyn, L., Pasichnyk, T., Brukh, O., Bernatska, I., & Kucher, L. (2020). Assessment and forecast of the efficiency of use of the financial resources of amalgamated territorial communities in the context of European integration. European Journal of Sustainable Development, 9(3), 607–615. https://doi.org/10.14207/ejsd.2020.v9n3p607.
Medvid, V., Pylypenko, V., Pylypenko, N., Ustik, Т., Volchenko, N., & Vashchenko, M. (2019). Factors of rural development in the context of decentralisation: empirical research. Economic Annals–XXI, 177(5–6), 126–140. https://doi.org/10.21003/ea.V177-11.
Storonyanska, I., Nowakowska, A., Benovska, L., & Dub, A. (2022). Imbalances and risks of the regional development of Ukraine’s economy under conditions of instability. Agricultural and Resource Economics, 8(3), 81–97. https://doi.org/10.51599/are.2022.08.03.05.
Yakobchuk, V., Khodakovsky, Y., Heimerl, O., & Plotnikova, M. (2020). Alternative imperatives of the decentralized societies activities. Scientific Horizons, 4(89), 15–26. https://doi.org/10.33249/2663-2144-2020-89-4-15-26.
Cabinet of Ministers of Ukraine (2020). Resolution of the Cabinet of Ministers of Ukraine “On making changes to the Methodology for the formation of capable territorial communities”. Available at: https://zakon.rada.gov.ua/laws/show/34-2020-%D0%BF#Text.
Horbatiuk, M. (2021). Decentralization reform in Ukraine: problems of implementation in conditions of social crisis. Politychni doslidzhennia, 1, 22–40. https://doi.org/10.53317/2786-4774-2021-1-2.
Solodkyi, S., Levoniuk, T., Balasanian, V., Dziupyn, M., Kalashnikova, O., Kozun, Yu., Bobyrenko, V., & Bidenko, Yu. (2020). Vzaiemozviazok mizh detsentralizatsiieiu ta yevropeiskoiu intehratsiieiu [The relationship between decentralization and European integration]. Tsentr “Nova Yevropa”; Tsentr skhidnoievropeiskykh ta mizhnarodnykh doslidzhen. Available at: http://neweurope.org.ua/wp-content/uploads/2020/02/Decentralization_ukr_web-2.pdf.
Petrushenko, Y., Ventsel, V., Garbuz, V., Kolomiiets, U., & Duranowski, W. (2020). Innovations in management of fiscal equalisation: decentralization reform. Marketing and Management of Innovations, 1, 208–221. http://doi.org/10.21272/mmi.2020.1-17.
Slovo i dilo (2022). State Budget 2022: what subsidies will the regions receive. Available at: https://www.slovoidilo.ua/2022/01/21/infografika/finansy/derzhbyudzhet-2022-yaki-dotacziyi-otrymayut-rehiony.
Analysis of equalization of revenue capacity of local budgets (2022). The USAID project “Improving work efficiency and accountability of local self-government bodies” (“HOVERLA”). Available at: https://decentralization.gov.ua/en/news/15207
Yalivets, H. (2023). The Cabinet of Ministers of Ukraine allocates additional grants to regions and communities. Biznes Tsenzor. Available at: https://biz.censor.net/news/3416607/kabmin_vydilyaye_regionam_ta_gromadam_dodatkovi_31_milyarda_dotatsiyi.
State Treasury Service of Ukraine (2021). Annual reporting on the implementation of the revenue part of the Consolidated Budget of Ukraine for 2016–2020. Available at: https://www.treasury.gov.ua/ua/fle-storage/vikonannya-derzhavnogobyudzhetu.
Decentralization portal (2020). Evaluation of the financial indicators of the budgets of 872 UTC: rating for 9 months of 2020. Available at: https://decentralization.gov.ua/news/12952.
Prylypko, Ye. (2021). What should be the financing and management of health care facilities in conditions of decentralization. Ukrainska Pravda. Available at: https://life.pravda.com.ua/columns/2021/07/20/245440.
OECD (2009). Focus on citizens: public engagement for better policy and services (Summary). Paris, OECD Publishing. https://doi.org/10.1787/9789264048874-sum-en.