Problems of Territorial Self-Governance: International Experience and Prospects for Ukraine

• Published in: Journal of international economic policy 2022-12 (37), p.115-132
• Main Authors: Hovorun, Nadiia, Melnychenko, Anatolii
• Format: Article
• Language: English
• Subjects: Community; Decentralization; Decision making; Human capital; ISO standards; Land use planning; Regions; Sustainable development; Tourism
• ISSN: 1811-9832; 1812-0660
• DOI: 10.33111/iep.eng.2022.37.06

The article focuses on the key issues arising with regard to self-governance in the world, and in Ukraine, and in particular in conditions of martial law. The study shows that despite possible divergent outcomes and conflicts of decentralisation policies, territorial self-governance remains the most efficient form of self-organization of society even in times of crises or armed conflict. It is highlighted that territorial resilience depends heavily on human capital and managerial readiness. The importance of a clearer breakdown of subnational government responsibilities at the legislative level, as well as the design and implementation of a proper quantitative and qualitative framework for territorial resilience measurement are outlined among top priorities of the territorial self-governance and future management efficiency. The article also briefly examines the state of budget decentralisation reform in Ukraine and analyses the oblasts according to several indicators, namely: area, population, budget revenue and expenditure, and deficit/profit, and the number of regions/districts in the oblast. The author performs cluster analysis, which allows to develop the positioning of the oblasts of Ukraine based on the mentioned indicators, and concludes that the financial mechanisms of decentralisation in Ukraine are relatively immature up to date and require further improvement. The recommendations include the increased focus on human capital development and prioritisation of providing and implementing a sound legal framework to increase trust and reduce corruption, support education and civil society institutions, and promote local (i.e. municipal) investment. It is suggested to closely track the developments of educational and other human capital development factors in order to be able to address the issues arising in this area due to war promptly, as these are the ones which pose the threat to the long-term development of regions. The author outlines the possibilities regarding Ukrainian economy and infrastructure modernisation due to potential increase of incoming investment in the post-war period and stresses the importance of meeting the principles of sustainable development in this process.