Decentralization reform in Ukraine and the social function of the state: challenges and prospects

Abstract

In 2014, the process of reforming local self-government and territorial organization of government began in Ukraine. The purpose of the reform is to carry out administrative and financial decentralization in order to build a capable local government and to improve the quality of public services provided to community residents. Decentralization should ensure the fulfillment of the social function of the state, taking into account the requirements of modern society. The necessity of decentralization reform is grounded in the article, theoretical aspects and international practice in the sphere of decentralization are considered, the current situation in Ukraine is analyzed, specific problems of the decentralization process are identified and possible solutions are outlined.The main tasks to be addressed by decentralization reform in Ukraine include: the establishment of institutionally capable local self-government bodies; separation of powers between local and executive authorities on the principle of subsidiarity; maximum involvement of the population in managerial decision-making, promoting the development of forms of direct democracy; ensuring the transparency of local self-government bodies and their accountability to the population of territorial communities; development of mechanisms for quality control of administrative, social and other services provision to the population; creation of sufficient material and financial opportunities to support the tasks of local self-government bodies; equalization of territorial financial disparities and provision of high quality public services to the population.Based of the indicators of statistical reporting and indicators of execution of local budgets, the analysis of individual aspects of financial capability of the amalgamated territorial communities (hromadas) was carried out, the problems of unequal distribution of financial potential between the territories were highlighted, and the necessity of applying measures to equalize regional financial disparities was noted.The conclusions are formulated that the decentralization reform in Ukraine needs active continuation. In this regard, required to take a number of basic legislative acts to resolve issues of administrative-territorial structure. Also it is necessary to clearly define the powers of local self-governments and ensure parity ratio between the functions authority and resource base. There are problems with the financial and institutional capability of amalgamated communities (hromadas) to be addressed by central government. As a result, state should ensure implementation of the social functions with new powers and new conditions for the functioning of local self-government that will be formed in the decentralization reform.