Capacity of reforms efficiency of administrative and territorial structure (the case of Zaporizhzhia region)

Abstract

The aim of the article is to examine efficiency of the decentralization process` potential and the conditions for the formation of financially capable and self-sufficient united territorial communities (UTCs) on the basis of sustainable development of territories and national economy alike. Main material. Efficiency of the decentralization process in Zaporizhzhia region has been analyzed in the article. The methodology of UTCs clustering by the level of their financial capacity applying statistical indicators of relative frequency and frequency with the subsequent determination of the confidence interval for mean observations (with probability of 0.95) has been proposed. The following have been chosen as the clustering criteria: income per capita; personal income per capita; infrastructure grant per capita and development expenditure (capital expenditure) per capita. Each set was divided into three groups: the first group of UTCs is from the minimum value to the lower limit of the confidence interval; the second group of UTCs is within the confidence interval; the third group of UTCs is above the upper limit of the confidence interval. It has been found out that the main determinants of UTCs formation of financial capacity and self-sufficiency are the following: natural-geographical (land, forest, water, mineral, biological, energy) and socio-economic (material, financial, human and intangible) resources. Econometric modeling of financial capacity level of UTCs in Zaporizhzhia region has been conducted. Conclusions and further research. The methodology of UTCs clustering by the level of their financial capacity according to the following criteria has been proposed: income per capita; personal income per capita; infrastructure grant per capita and development expenditure (capital expenditure) per capita. It has been used to evaluate efficiency of the decentralization process in Zaporizhzhia region. The main determinants of UTCs financial capacity and self-sufficiency formation has been proved. Regression econometric models have been built to evaluate its development potential and forecasting for UTCs of Zaporizhzhia region. The authors have proved that nowadays there are territories facing the process of UTCs formation. It has been demonstrated in the study that the complex potential of territorial development, namely, natural and socio-economic potentials, should be the basis for the further UTCs formation. The gradients (as the territorially defined set of opportunities) of the complex development potential will form UTCs administrative delimitation (territorial coverage). UTCs will have characteristics like economic capacity and efficient development based on the resources`, interests` and competitiveness` harmony. It has been proved that in the further process of decentralization it is advantageous to carry out UTCs clustering. UTCs should become clusters` centers of gravity (clusters` cores) as they have reached satisfactory financial capacity and selfsufficiency at the voluntary stage of decentralization.