IMPLEMENTATION OF SUSTAINABLE DEVELOPMENT POLICY IN THE CONTEXT OF FINANCIAL DECENTRALIZATION: THE EXPERIENCE OF EU COUNTRIES

Abstract

Purpose. The purpose of the article is to assess the impact of financial decentralization on the implementation of sustainable development policy by local self-government bodies in Ukraine, taking into account the experience of EU countries. Methodology of research. The following methods were used in the study: - analysis and synthesis to calculate the indicators of formation and distribution of financial resources of local budgets of Ukraine; - theoretical generalization to improve the categorical apparatus; - scientific abstraction and formalization to determine the responsibility of local self-government bodies for achieving the SDGs in Ukraine; - comparative analysis to identify the unique experience of EU countries and its application in Ukraine; - correlation analysis to assess the stochastic relationship between financial decentralization indicators and the SDGs indicators. Findings. In the course of the conducted analysis of the impact of financial decentralization on the achievement of the SDGs of Ukraine, it is found that local self-government bodies, which manage 35 % of public finances, are responsible for achieving strategic objectives in the context of six Goals (35.3 %). It is substantiated that at the regional level, in 2015–2021, the greatest progress was made in overcoming poverty, with a positive trend in 84 % of the strategic objectives (sub-objectives); progress in achieving the strategic objectives of quality education was 64.3%; progress in achieving good health and well-being – 62.5%; progress in achieving sustainable development of cities and communities and partnerships for sustainable development – 55 %; progress in reducing inequality, peace and justice and strong institutions – 50 %. It is proved that the achievement of the SDGs at the regional level is characterized by satisfactory progress in the context of decentralization. Originality. The author’s own methodological approach to assessing the effectiveness of the implementation of sustainable regional development policy in the context of local self-government decentralization is proposed on the basis of maximizing the numerical value of the pairwise correlation coefficient between the relevant indicator of financial decentralization and the indicator of the SDG and synchronizing their focus on solving the target task. Practical value. The results of the study can be used in governmental monitoring of the contribution of local self-government to the achievement of the SDGs, especially in the context of martial law. Key words: sustainable development, goal, financial decentralization, financial autonomy, local budget, local self-government body.