Structural policy of large cities at the present stage of decentralization (on the example of Lvivska consolidated territorial community)

Abstract

The present stage of decentralization in Ukraine is characterized by the activation of the processes of harmonization of economic development priorities in many newly established consolidated territorial communities (CTCs). In the first place, it is about the CTCs that were established around large cities after last year’s local elections. Traditionally, rural areas are rather skeptical about the possibility of complete realization of their interests within such CTCs. It causes numerous conflict situations. A range of CTCs established in the previous years even refuse to join new municipal CTCs. Often the refusal contradicts economic logic but meets the social support of the local population. For example, Lvivska CTC didn’t manage to consolidate a range of adjoining areas around it due to the unfriendly disposition of management of surrounding CTCs and their residents. Consequently, its spatial location turns out to be rather asymmetrical. The city’s boundaries literally “encounter” the neighboring village CTCs on the South and East. Moreover, some part of municipal infrastructural facilities turned out to be at their territory (supermarkets, trade centers, traffic intersections, and communal infrastructure facilities). To overcome the described problems and prevent conflict situations, it is reasonable to change approaches to the implementation of economic policy on the local level in the future. In the first place, modern approaches to the implementation of large cities’ structural policy should be introduced at the present decentralization stage. Because currently manufacturing prevails in the structure of these cities’ economy in Ukraine. Moreover, the foundations of industrial capacity of the municipal economy were formed back in the Soviet period. In the first place, it is about industrial regions of Eastern and Southern Ukraine. Yet, even in the West, namely in Lviv, most currently operating industrial enterprises were founded in the 1960s (some of them even in the 1940s). It is hardly real to transfer the production capacities of such enterprises to the neighboring rural areas. So, increasing the capacity of innovative production in adjoining rural areas should be the major priority of large cities’ structural policy at the present stage of decentralization.