Abstract
Abstract The article describes the specific details of local communities functioning in Ukraine and the Czech Republic. It has been examined that Ukraine and the Czech Republic have similar, but not identical systems of local governance. We conducted a comparative analysis of the financial state of local communities in both countries by five indicators. Indicator 1 (total income per capita) characterises the community’s financial potential and reveals that Ukraine’s local communities have fewer financial resources to use. Indicator 2 (total expenditures per capita) describes the ability to provide residents with the resources generated in their community and Czech communities have a higher value of this indicator. Indicator 3 (share of the administrative expenditures) shows the effectiveness of money spent, and local communities in both Ukraine and the Czech Republic spend particularly the same part of their total expenditures on administrative needs. Indicator 4 (capital expenditures per capita) demonstrate how the money generated is spent on urgent capital investments and Ukraine’s communities have much lower capital expenditures per capita than Czech ones. Indicator 5 (the share of capital expenditures in total expenditures) reflects how local communities perceive the importance of investments in capital projects and Ukraine’s communities spend fewer financial resources for capital needs than Czech ones.
Highlights
The role of local communities all over the world is significant, as their primary goal is to deliver public services effectively and fast (Fourie, et al 2015)
The goal of the research is to compare the financial state of local communities in Ukraine and the Czech Republic and to investigate the similarities and differences of their economic functioning
Indicator 1, which characterises the financial potential of the community, reveals that Ukraine’s local communities have less financial resources to use, which has a direct impact on the economic situation in the community
Summary
The role of local communities all over the world is significant, as their primary goal is to deliver public services effectively and fast (Fourie, et al 2015). Most central governments regard local communities as important partners in solving a variety of public policy issues and roles, including creating more effective and equitable structures of social services and providing crucial parts of key infrastructure, promoting economic growth and improving living standards. Decentralizing both the spending and tax authority could improve the resource distribution in the public sector through stronger connections between the costs and Economics and Business. The fundamental problem faced by most local governments, in particular small ones, is the widening gap between the availability of financial capital and the spending needs of communities. It is very important in this context to understand whether the communities are effective financially and how to make them more stable and successful
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
