Administrative-financial decentralization: targets of the reform and the results of the first stage

Abstract

The scientific paper emphasizes the results of the first stage of administrative-financial decentralization in Ukraine that has been lasting for four years. The authors substantiate the reasonability of considering decentralization as the mechanism to achieve boosting of economic growth in the country according to the “upward” principle based on active use of own socio-economic resources of communities. The paper defines the major goals of the reform across the levels of public governance and the goal of the policy in the sphere of decentralization, which stipulates the shift from decentralized governance model, securing the capability of local governance and development of efficient system of authorities’ territorial organization in Ukraine. Possible risks of negative impact of fiscal decentralization on economic growth of the country are explained based on defining the peculiarities of the reform implementation in the western countries. Basic principles to be taken into account in forming of methodical approaches to evaluation of the efficiency of decentralization mechanisms in the context of their impact on socio-economic development of a territory are outlined. The institutional provision of decentralization reform in Ukraine is analyzed. The peculiarities of compliance with the stages of implementation of the local governance and authorities’ territorial organization reform in Ukraine are determined. Special attention is paid to the condition of legislative maintenance of the reform. The authors outline the dualistic approach to decentralization in Ukraine at conceptual level, which stipulates not only the securing of efficient local governance and capability of administrative-territorial units of basic level, but also the need to establish efficient regional policy. The paper defines the features of CTCs forming in Ukraine from the viewpoint of specifying of the number of consolidated local councils and the number of residents as well as the level of financial provision of budgets of such administrative-territorial groupings. Major problems of forming and development of CTCs in conditions of conclusion of the first reforming stage and possible risks caused by these problems are outlined.