Features of forming the investment needs of local governments

Abstract

The paper researches some aspects of regulative maintenance of investment activity in Ukraine and at the level of territories (on the example of Lviv) in the condition of reforming local governments. The author suggests his interpretation of “an investment capacity of a territorial community”. The specifics of managing the investment activity of territories is outlined, and the groups of needs of local governments, the realization of which is the ground for territorial communities’ activity, are defined. The sources of funding of local governments’ investment needs are characterized. The scheme of balancing investment needs and investment opportunities (sources) as a component of management of a territory’s investment activity is suggested. The conditions of securing positive consequences of the process are examined. The analysis of directions of state support of economic and social development of territories in 2020 shows that regional development programs are funded at 12.7%, while other social, environmental, and innovative directions – at a level less than 5%. The paper emphasizes the need of local governments to independently search for ways to implement socio-cultural projects by efficient use of their investment resources and capacity. For a general analysis of investment activity, the investment in the socio-economic development of Lvivska oblast in 2017-2019 is analyzed. The growing volumes of capital investment and the prevailing share of investment in the purchase of machines and equipment are emphasized. The conclusion on insufficient growth of rural areas’ capacity is made. The problems in the attraction of investment in the economies of cities and consolidated territorial communities are defined. The solution of these problems will contribute to the implementation of new approaches to investment activity at the territories of local communities from the viewpoint of the need to secure their financial capacity and sustainable development of settlements.