Principles of inclusive regional development in the conditions of financial decentralization

Abstract

Purpose. The aim of the article is the development of the inclusive regional development concept, which is seen as the response to the opportunities and threats that the decentralization of power and the financial decentralization of formed territorial communities. Methodology of research. Conventional economic methods are used in the study, in particular: monographic and system-structural, which are used in the development of the inclusive regional development concept in the conditions of decentralization. Findings. It is determined that global trends are oriented towards achieving the prospects of sustainable and inclusive development. The suggested concept of inclusive regional development is adapted to the new conditions taking this into consideration, and taking into account the current processes of financial decentralization taking place in Ukraine. The suggested definition of inclusive development reveals its content and ways of achieving social and economic growth, improving the quality of life of the population. The basic conceptual idea of inclusive regional development is formed and to define the goals, objectives and ways of its implementation. The essence and the author`s vision of financial decentralization as a process of transfer from the central to the local self-government bodies of financial resources, powers, making decision rights in order to better meet the needs of the population in obtaining public goods, intensify the economic growth of the respective territories are disclosed. The main components of the financial decentralization mechanism (methods, tools, principles, forms and factors) are characterized. The definition of the regional self-development mechanism in the conditions of financial decentralization is given and the imperatives of regional self-development mechanism functioning in the conditions of financial decentralization are revealed. Determinants of inclusive regional development are identified, which in their interaction create a synergistic effect for the sustainable development goals achieving. The article proves the necessity of further investigation of theoretical and institutional foundations of regional development with a view to implementing the decentralization of power policy and the necessity of adequate financial support of these processes. Originality.The concept of inclusive regional development under the conditions of financial decentralization is substantiated, which provides for optimal allocation of the financial resources of local self-government bodies accumulated in the local budget due to the effective use of opportunities from financial decentralization and minimizing its potential threats, in order to achieve sustainable development of the region with maximizing the share of the community social product and ensuring a fair distribution of the benefits received on the basis of inclusive growth. Practical value. The obtained results of the study are the basis for solving practical problems of regional development in the context of decentralization in Ukraine. Key words: inclusive regional development concept; financial decentralization; financial decentralization mechanism; financial decentralization factors; inclusive development; region`s self-development mechanism.