SCIENTIFIC AND METHODOLOGICAL PRINCIPLES OF FORMING FINANCIAL MECHANISMS FOR THE DEVELOPMENT OF TERRITORIAL COMMUNITIES

Abstract

Financial mechanisms play a pivotal role in bolstering the development of territorial communities, especially in times of crises and challenging situations. These mechanisms supply essential funding to stabilize local economies, aid vulnerable populations, and establish the groundwork for future growth. By funding local enterprises, entrepreneurs, and infrastructure projects, financial mechanisms stimulate economic activity and create employment opportunities. During crises, targeted support through grants, subsidies, and microfinance programs can assist at-risk segments of the population, such as low-income households, small business proprietors, and marginalized communities. Additionally, investing in infrastructure and initiatives that enhance the resilience of the local region against future crises, such as renewable energy sources and disaster preparedness, proves essential for sustainable development. Public-private partnerships are lauded as effective means to harness resources and expertise from both sectors, thereby magnifying the impact of development projects. Moreover, financial mechanisms offer backing for innovative solutions that aptly address development challenges. This article scrutinizes recent research and publications to pinpoint key components, challenges, and potential benefits of financial mechanisms for territorial community development. Scholars emphasize the significance of generating local revenue, collaborating with central governments and international organizations, engaging in public-private partnerships, utilizing microfinance institutions, and establishing community-based banking systems to empower territorial communities. Scientific and methodological principles are explored, encompassing comprehensive research and analysis, transparency and accountability, adaptability, inclusivity, sustainability, innovation, and capacity building. These principles furnish a structured and evidence-based approach for effectively managing financial resources and fostering sustainable and comprehensive growth within communities. The article underscores the significance of well-designed financial mechanisms in bolstering the development of territorial communities, while also laying the foundation for prospective research and implementation in this critical realm of study. Keywords: scientific and methodological principles, financial mechanisms, territorial communities, public management, development.