Decentralization as an institutional mechanism for maintenance of investment processes

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The paper emphasizes that in current conditions of economic system functioning in Ukraine, it is impossible to achieve economic growth without an effective investment policy. An efficient national investment policy enables developing countries to avoid economic and technological dependency and to ensure solutions of key objectives of the sustainable development of the regions and the country as a whole, the growth of their economic capacity and raising standards of living for the population. Modern transformational processes and global trends in economic development are putting new demands for forming the policy of regulation by the investment process in Ukraine. The paper determines that one of the peculiarities of the modern national investment policy of Ukraine is that it is formed and implemented in the conditions of reforming of the public administration system. Decentralization of power and change of administrative and territorial structure in Ukraine by uniting communities and reforming local self-government in terms of redistribution of powers, competences and financial provision are some of the main directions of the public administration modernization. Decentralization provides new opportunities for harnessing investment potential of territories, promotes investment activity to increase the industrial-economic and socio-cultural capacity of territorial communities and accelerates the rates of renewable processes of tangible and intangible production. It is the prerequisite of public administration system modernization by the social development of regions. A clear understanding of the essence, models and principles of decentralization is the important factor for its successful implementation. Ensuring the development of investment activity in the region in conditions of decentralization is the effective mean for regional development, which provides not only the development of the economy as a whole, but also the development of cultural, medical, educational, and social spheres.