Territorial Decentralization Research Articles

Profit Tax as a Character of Regional Budget of Our Time

The authors develop approaches to tax decentralization based on the theory of imperfect institutions by T. Eggertsson, in terms of the critically important profit tax for regional budgets of Russia. We see the goal of our research in finding a balance between the action of formal rules and informal, social norms, technologies, and models for distributing the profits of the largest Russian companies as a tax base between the federal center of Russia and the regions depending on the actual location of employees and assets. The article is devoted to the action of a successful and unique formal rule of the tax institution for the Russian Federation – the formation of consolidated groups of taxpayers (CGT). The novelty of the article lies in the study of the phenomenon of transformation of the domestic system of paying profit tax in 2023 as a replacement of one formal rule (action of CGTs) with another formal rule – the introduction of a new excess profit tax for Russia. An empirical study of the regional distribution of payments of legal entities-payers of profit tax according to the formal rules of the CGTs from among the largest Russian companies registered outside Moscow was conducted. Based on the results of the study, a general conclusion was made about the acute contradiction of the current economic policy in Russia in the content of the tax institution: between the new informal social norm on territorial decentralization of the largest Russian companies and the opposite formal rules of tax centralization in terms of profit tax. In this regard, the current policy of coincidence of territorial and tax decentralization in terms of state-owned companies in China deserves attention.

Управління розвитком підприємств паливно-енергетичного комплексу на засадах процесноорієнтованого підходу

The article explores the possibilities of developing enterprises in the fuel and energy complex of Ukraine based on implementing a process-oriented approach to management. The process-oriented approach is considered an essential tool for developing enterprises of the fuel and energy complex in the conditions of activation of the system of destabilizing and crisis factors, strengthening resource limitations. Actual tasks for the development of the fuel and energy complex in the future are highlighted, namely: focus on territorial decentralization in the placement of enterprise capacities, development of small-scale energy, non-traditional energy systems, diversification of energy supply sources for enterprises, formation of fuel and energy resource reserves at different levels of the territorial-production hierarchy, orienting enterprises to their resources. Attention is focused on the need to define the essential tasks of enterprise development policy in modern conditions: security orientation of management policy, ensuring the reliability of energy systems, operational flexibility, and economic efficiency. The contradictory nature of the combination of such tasks in the practical plane is revealed. It has been proven that the process approach makes it possible to implement tools that would overcome these contradictions and form the prerequisites for the development of enterprises. The need to find management models that would rationally integrate functionally oriented and process-oriented approaches to management, allowing to focus on the principles of economic security, priorities of flexibility, and economic efficiency, is substantiated. Keywords: enterprise development, process-oriented approach, fuel and energy complex, economic security, operational flexibility, reliability of energy systems, economic efficiency.

Archipelagic Approach in the Formulation of the Draft Law on the Islands Region

Indonesia is a unitary state with archipelagic characteristics. As an archipelagic state, the ocean is the dominant factor, with an estimated ¾ of Indonesia’s territory (5.8 million km2) being ocean and a quarter (1.9 million km2) land, with enormous potential for coastal and marine resources. With an area as large as Indonesia cannot but adopt a decentralization system in governance to accelerate the community’s welfare. This research uses normative legal research and socio-legal research. The policy of marine decentralization through territorial decentralization gains legality through Article 18 of the Indonesian Constitution, which is derived from Law of number 22/1999, Law of Number 32/2004, and Law of number 23/2014. Decentralization of marine management must refer to the 1982 Convention on the Law of the Sea (UNCLOS), a requirement of the rule of law. Therefore, it is necessary to synchronize Article 25A (Archipelago State) and Article 18 (1) (decentralization). Legal synchronization of Article 25A of the Constitution as an affirmation of the applicability of the 1982 UNCLOS, which is a product of international law ratified by Law of Number 17/1985.

Socio-Economic Dimension of Human Potential of World Countries in the Digital Space of the Labor Market

The article examines the special socio-economic conditions of human potential, which forms and expands the flow of labor in the international digital labor market. The concept of the socio-economic dimension of human potential based on the unity of its components is presented. The hypothesis of effective use of human potential at all levels of its formation is justified by relevant HRM technologies that align the labor market situation with the rate of modernization of business, state policy, and social institutions, as well as the new nature of the digital economy's growth. It is also demonstrated that, in the context of the informational transformation of the labor market, the concentration, implementation, and effective socio-economic dimension of human potential form a consistent state policy, which is strengthened by the possibilities of territorial decentralization and is aimed at overcoming disparities in the use of human resources, reducing the gap between potential and existing social-economic level of development of the countries of the world. The authors also provide the sectoral structure of employment in Ukraine and the average annual rate of growth of the indicator level in the leading countries with a digital direction of labor market development, as well as comparative socio-economic measurement and forecasting of Germany's effective use of human potential, subject to the expansion of labor inflows and the improvement of the working capacity of active human resources.

The Territory of the State in the Pure Theory of Law of Hans Kelsen

The Territory of the State in the Pure Theory of Law of Hans Kelsen

Principle of Original Authority In Territorial Decentralization

Abstract: Indonesia is a unitary state, where within the framework of the unitary state, power is divided between the central government and regional governments. The regional government is divided into three levels, namely provincial, district, and city regional government. The division of powers to local governments is interpreted as the principle of autonomy. In the NA RUU-Pemda as well as the General Elucidation of the UU-Pemda, it is implied and stated that the autonomy that exists in an autonomous region is a gift. Meanwhile, from the point of view of its establishment, regional autonomy is original, not granted, and is a regional right based on its principle. In principle, the regional right to regulate and manage it is an original right and is not a gift from the central government. From this principle, provisions were born which stated that provincial, regency, and city regional governments regulate and manage their own government affairs according to the principles of autonomy and co-administration. Purpose: The purpose of this study is to explain that regional autonomy is not a gift from the central government but the original authority possessed by the regional government. Design/Methodology/Approach: This research is legal research. The approach method used in this study is to use a statutory approach, historical approach, and conceptual approach. Findings: In principle, the right of the region to regulate and manage it is an original right and is not a gift from the central government. From this principle, the provisions of Article 18 paragraph (2) were born which states that provincial, regency, and city regional governments regulate and manage their own government affairs according to the principles of autonomy and co-administration. Originality/Value: This research tries to explain that regional autonomy in Indonesia is a regional original right, not the result of a gift from the central government. because in several studies that raise regional autonomy, it is always explained that the autonomy obtained by the regional government is the result of a gift from the central government. The difference in point of view is what makes this research a novelty.

Akty normatywne i indywidualne samorządów zawodowych jako przejaw funkcji administracji publicznej (uwagi na tle samorządu radców prawnych)

One of the basic assumptions of democratic state based on the rule of law is the principle of decentralisation of public administration, stated in the article 15(1) of the Constitution of Republic of Poland. Apart from the elemental form of territorial decentralisation (local associations) Polish Constitution provides for so-called material decentralisation. Its reflection can be seen in legislation powers to appoint occupational associations and make them responsible for providing the proper performance of the profession of public trust. This article aims at discussing professional associations power of lawmaking i.e. issuing normative and individual acts. Aforementioned issue will be examined on the background of legal adviser’s association (the largest legal professional association in Poland). The power in question is the essential tool to supervise the proper performance of the profession. It is also important that it is a way of performing public administration functions.

The Theoretical and Methodological Framework of Intergovernmental Relations and the Process of Territorial Decentralization in Cuba as an Ongoing Process

The Theoretical and Methodological Framework of Intergovernmental Relations and the Process of Territorial Decentralization in Cuba as an Ongoing Process

Desigualdades territoriais no financiamento das políticas de educação e de saúde na Espanha e no Brasil

Abstract The article compares the patterns and territorial inequalities in the funding of two social policies that are pillars of the welfare state and present a high degree of territorial decentralization in Spain and Brazil: education and health. The analysis uses specialist literature, national legislation and government documents to describe the policies and their financing mechanisms. Fiscal data are used to analyze subnational government inequalities in the funding of education and health in both countries. The conclusion is that the Spanish experience has significantly leveled spending on health and education between the autonomous communities of common regime, with lower levels of inequality than those observed in Brazilian states and municipalities. The Spanish result derives from an incremental process of improvement of the country’s fiscal federalism, which culminated in a model marked by prioritization and territorial solidarity in the funding of social policies. This model is reference for the analysis and discussion of the Brazilian case, which has configured its fiscal federalism with little concern for reconciling efficiency and equity in the distribution of resources between subnational governments, but which has presented important advances in the reforms of education and health funding.

Uloga države u posebnim okolnostima

The role of state administration and its public institutions in certain circumstances represents one of the most significant issues in the last twenty years following the serious security crisis caused by terrorist attacks in New York on 11 September 2001. The accent of public administration reforms was on efficiency and effectiveness of public institutions. Reforms were divided into deregulation and liberalization of public services, territorial decentralization, and regionalization with the strengthening of local government institutions and reform of central government administration. After the security crisis in 2001, financial crisis in 2008 and health crisis in 2020, the role of state institutions and public authorities in governing the state was redefined. The leading motives of general liberalization of public services, deregulation, and various forms of decentralization of public institutions abounded due to the new doctrinal approach of governmental organization. New strengthening of public authorities and public institutions became the new mainstream in the organization and functioning of the state. This paper analyzes how the role of the state can be modified due to the dynamics of social, political, and economic changes in society. New governmental reforms are contrary to earlier political and administrative measures, which include the strengthening of public institutions and concentration of public authorities. The government takes on a regulatory function in many aspects of social, political, and economic life. This situation leads to a new organization of the state, where public authorities take on a significant part of the responsibility to regulate various aspects of economic and social activities. At the focus of this paper will be how the dynamics of specific circumstances in society can affect the developing processes of the state and their public institutions. Those processes have economic, social, and political dimensions. The economic dimension includes regulatory measures on the market which contributes to development of the framework for economic development. The social dimension includes measures of social policy focused on improving the social position of citizens according to the economic development of society. The political dimension includes various aspects of security policy, with various protective measures in the community, which depends on the type of treatment for security of citizens.

RESOURCE POTENTIAL OF THE TERRITORIAL COMMUNITY OF TERNOPIL REGION: CURRENT STAGE AND PROBLEMS OF RECREATION

Introduction. As a result of territorial decentralization in Ukraine, the number of administrative districts was reduced and the territorial communities were created. 55 territorial communities were created in Ternopil region, including 18 urban, 16 amalgamated and 21 rural communities. The current network of territorial communities in the region does not meet the principles declared in the Law of Ukraine “On the Formation of United Territorial Communities”. Presently, territorial communities differ significantly among themselves in terms of the number of settlements, the population and the size of the territory. The analysis of the relative indicators that characterize communities shows significant differences between communities in terms of the amount of land secured residents and labor potential, and hence the economic capacity of individual communities. The current legislation regarding the development of education, health care, social sphere and especially road construction does not always correspond to the interests of individual communities. The purpose of the study is the need to study the micro-regional resource potential of newly created administrative entities - territorial communities in order to substantiate their economic development based on their own resource potential. The results. The study has proved that the territorial communities created in the region were formed without proper justification of their economic capacity and, above all, without taking into account their resource potential. Thus, almost half of the population centers of the region, in which two thirds of its population live, are concentrated in urban territorial communities. Separate urban territorial communities were created within the former rural administrative districts. Rural territorial communities occupy only 24% of the region area and almost 14% of the region population live there, and their specific gravity in the structure of territorial communities is 40%. There are significant differences in the density of the rural population across territorial communities. Thus, there are almost 43 inhabitants in rural communities per 100 hectares of territory, 60 ones in amalgamated communities, and 34 inhabitants in urban communities. Since the past, Ternopil oblast was considered to be agricultural and industrial region. Nowadays, rural territorial communities are purely agrarian micro-regions. Modern specialization of agrarian companies does not require significant resources of live labor, therefore the labor potential of rural settlements is used partially, that is, seasonally. This especially applies to the labor resources of settlement territorial communities. In order to increase the efficiency of the available resource potential use in rural and amalgamated territorial communities and to prevent the processes leading to the reduction of the population of territorial communities, it is necessary to pay maximum attention to the creation of new jobs and the development of rural infrastructure. Conclusion. The conclusions provide proposals and recommendations for improving the activities of the executive bodies of territorial communities in relation to the rational use of land resources and the effective use and reproduction of the labor potential of territorial communities, especially rural ones.

Planowanie strategiczne w zreformowanym samorządzie terytorialnym na Ukrainie. Przykład gromady Herca w obwodzie czerniowieckim

Reforming public administration is a complex and lengthy process, especially in so-called transition countries. Practically, for the first twenty years after regaining independence, Ukraine was only creating the foundations of a decentralized public administration, partially combining Western models and the structures of the Soviet administration that had been functioning for decades. It was only in the second decade of the 2000s that a milestone was made towards a significant reconstruction of the structure and functions of public administration, guided by the standards of Western democracies. The culmination of the process of reforming the public sector was the creation of local government at the community level. Along with the process of creating independent territorial units, a need arose to formulate long-term development plans as the basic instruments of social and economic development policy at the local level. This process in many cases was and is supported by the activity and experience of Polish institutions implementing various projects in Ukraine, the purpose of which is to develop a development strategy for territorial units. The aim of this article is to present the conditions of territorial decentralization in Ukraine after regaining independence in the early 1990s and the results of the strategic project implemented in 2021 by the employees of the Department of Public Administration of the Institute of Political Sciences and Administration of UMCS. The main product of the implemented project was the development of the Herca Municipality Development Strategy in the Chernivtsi Oblast in Ukraine, based on the participatory-expert model. The results presented below refer in particular to the description of the process of elaborating the development strategy and the conclusions of the strategic analysis carried out.

THE NEED AND POSSIBILITIES OF INSTITUTIONAL REGULATION OF THE PROCESSES OF REPRODUCTION OF HUMAN RESOURCES IN THE CONDITIONS OF TERRITORIAL DECENTRALIZATION

Introduction Since the beginning of the 90s of the 20th century, a deterioration of the demographic situation has been observed in Ukraine. The permanent natural reduction in the number of people, the consequences of the pandemic, the mass displacement of the population as a result of Russian aggression led to a decrease in the population's employment, an increase in unemployment, a decrease in the standard of living, and an increase in inflationary processes. The mentioned processes actualized the problem of reproduction of human resources, which requires the implementation of measures to stop the processes of decreasing birth rates and increasing mortality rates, especially in rural territorial communities. The reform of the administrative system, carried out since 2015 through territorial decentralization, allows the processes of reproduction of human resources to be analyzed at the micro level, to investigate the trends of natural, mechanical and economic movement of the villagers, to assess the modern capabilities of local self-government bodies to prevent the development of negative processes in the reproduction of an economically active population. The purpose of the article. To investigate the role of territorial decentralization in overcoming crisis phenomena in the reproduction of human resources of Ukraine and to highlight the possibilities of local self-government bodies in preventing the processes of depopulation of the population on the example of rural territorial communities. Research methods: statistical, sociological, grapho-analytical, comparative, method of analysis and synthesis. Research results: Assessment of the demographic situation in the villages of territorial communities. Determining the trends of natural and mechanical movement of the rural population, establishing the main problems of the formation of human resources, employment of the rural population, as well as the peculiarities of the formation of the modern labor market in the conditions of Russian aggression and ways to overcome unemployment in rural areas. Keywords: territorial community, territorial decentralization, reproduction of human resources, economically active population, balancing supply and demand for labor force.

Territorial Decentralization in the Democratic Republic of Congo: A New Momentum for Local Development

La République démocratique du Congo est un pays aux dimensions continentales. Il n’est pas facile de l’administrer, la décentralisation territoriale s’impose alors comme une issue rassurante pour booster son développement sur le plan politique, économique, social et culturel à partir de la base, c’est-à-dire, les provinces, villes, communes et chefferies. Il est donc prétentieux de penser apporter une réponse à toutes les attentes de la population; cela relève de l’illusion et de la pure démagogie. Pour atteindre l’explication de notre objet d’étude, nous avons fait usage de la méthode juridique, qui nous a permis de consulter des ouvrages, commentaires et résumer des conférences, qui touchent à notre objet d’étude ainsi que la technique documentaire, qui nous a également servi d’enrichir le contenu de notre article. Ainsi donc, nous disons que la décentralisation en République Démocratique du Congo est confrontée à plusieurs problèmes qui sont soit d’ordre politique, financier, économique, social et moral. Pour ces problèmes nous pouvons citer notamment, en premier lieu, le découpage territorial qui exige des moyens matériel et financiers. Mais notre problème ne se situe vraiment pas à ce niveau car la décentralisation est déjà consacrée et effective, notre problème est celui du développement influencé par la décentralisation. Mots-clés : Collectivité, constitution, décentralisation, démocratie, développement, Territoire

From centralisation to new ways of multi-level coordination: Spain’s intergovernmental response to the COVID-19 pandemic

ABSTRACT This article studies the Spanish response to COVID-19 from an inter-governmental relations perspective. Despite its high degree of territorial decentralisation, a strong centralisation movement characterised Spain’s first months of dealing with the crisis. But once the first wave of contagions was overcome, regions regained their space and new types of vertical coordination between central and regional governments were put in place. Standing apart from central-regional frictions, and as a separate piece in the multi-level system, municipalities found their place in developing an autonomous and active role in fighting the economic effects of the pandemic. Territorial tensions, veto players and the emergence of new IGR formal mechanisms characterise the Spanish trajectory, our analysis of which draws upon the literature on crisis management and intergovernmental relations.

Negative Shocks and Political Parties’ Territorial Demands: The Institutional Roots of Party Competition

Why do political parties set an extreme or a more moderate position on the territorial dimension? Despite previous works have paid recent interest on the dynamics of the political competition on the territorial dimension, we know much less about the factors that lead to a centrifugal or a centripetal party competition on the same dimension. In this article, we offer a new way of understanding it: we argue that parties’ policy position on the decentralization continuum not only depends on the level of territorial decentralization, but also on the credibility of the institutional agreement established through the country’s constitutional rigidity. If the original territorial pact does not guarantee that the majority group will have its “hands tied” so that it does not reverse the territorial agreement, political parties will have incentives to adopt more extreme positions on the territorial dimension. We test this argument with a dataset covering around 460 political parties clustered in 28 European countries from 1999 to 2019 and by exploiting the fact that the 2008 economic crisis unleashed a shock on the territorial design. Our results confirm our expectations. We show that both the federal deal and the credibility of the institutional arrangement through constitutional rigidity are necessary conditions to appease parties’ demands on the territorial dimension. Our results have important implications for our understanding of how institutions shape political competition along the territorial dimension.

When do social democratic parties unite over tough immigration policy?

Attempting to reconcile the diverse immigration policy demands of the ‘old’ working class and the ‘new’ middle class, social democratic parties struggle to take a clear position on immigration policy. Adopting more restrictive policies is a possible way forward, but this is likely to lead to electorally costly intra-party conflict. This article illuminates the conditions under which social democratic parties can unite behind more restrictive immigration policies and promote them consistently. Employing a most-similar systems design, it presents a comparative case study of the Austrian and Danish social democrats, from the 2015 ‘refugee crisis’ to 2020. The article argues that low levels of territorial decentralisation enabled the Danish social democrats to promote a restrictive stance on immigration top-down, while the Austrian social democrats’ federal party structure exacerbated internal disagreements between urban and rural leaders. These findings highlight the importance of internal party characteristics in explaining how parties respond to strategic trade-offs. Supplemental data for this article can be accessed online at: https://doi.org/10.1080/01402382.2021.1975211 .

Foundations of Good Education in the Spanish Territorial Structure: Policy, Society and Education in a Jointly Development Project

Spain has a model of territorial decentralization, agreed and legitimized from the 1978 Constitution, implemented in the eighties and part of the nineties of the last century by the Socialist Party. A model combines linguistic and cultural identities with administrative and geographical criteria that are specified in the 17 Autonomous Communities. In educational terms, these

Le système juridique unitaire à l’epreuve du droit coutumier : la nécessité d’une territorialisation du droit

"The French State is a unitary State as opposed to federal States, in which there is one Constitution providing for provisions applicable throughout the territory of the French Republic. Unity can be found in a legal unity first, in this the unitary Law is the one that does not admit of territorial differenciation. A political and organic unity, since there is only one Parliament, one Government. A social unity eventually, which consists of the admission of a single French people. If the French tradition is based on a centralized system, the implementation of the process of territorial decentralization led to reconsider the uniformity of the Law precisely with the question of territorial differenciation and territorialisation of Law. The present study proposes to return to the consideration by unitary Law of local territories including the overseas territories with the problem of reconciling such a system with customary Law. Keywords: unitary Law, customary Law, territorial decentralization, territorialisation of Law, the overseas territories "

Social infrastructure of territorial communities: interests of stakeholders

The paper clarifies the main problems of the development of social infrastructure of territorial communities, associated with high levels of wearing and low energy efficiency of institutions, disorder of property relations, low level of budget funding and lack of effective incentives to attract alternative sources of funding, imperfect system of territorial location institutions of social sphere. The reformation of administrative and territorial decentralization promotes strengthening of the local authorities role in the management of social infrastructure, increasing the autonomy of institutions and active involvement of public in solving problems of their management. The success of the territorial community development depends not only on the availability of the developed social infrastructure, but also on the community ability to turn it into the development asset. This requires improving the efficiency of management, reconciling the interests of all stakeholders in identifying ways to develop it, and finding effective forms of interaction. The paper identifies and analyzes the interests and conflicts of interest of the main stakeholders of the territorial communities social infrastructure. The main forms of their interaction such as: public and private partnership, social entrepreneurship, social order, socially responsible investments, community funds, public funding (crowdfunding) are analyzed. In the author’s opinion, the directions of improving the management of territorial communities social infrastructure are as follows: searching effective forms of interaction between the state, public, business, which would ensure the development of social infrastructure of community, contribute to the expanding of access and increase the quality of social services, bring their quantitative and qualitative parameters to the standarts of developed countries; maximum balancing of territorial proportions with real demand in social infrastructure institutions; streamlining the ownership to the social infrastructure facilities and eliminating conflicts of interest of management entities at different levels; increasing the efficiency of budget financing by streamlining the network of institutions and bringing it in line with the demographic situation in the community, the labor market.