Movchaniuk Anastasiia, PhD (Economics), Associate professor of the Department of Public Management and Administration, Uman National University of Horticulture, Uman, Ukraine

ORCID ID: 0000-0002-1536-3408
e-mail: anastasiyamov@gmail.com

Features of Functioning of Solvent Territorial Community in the Conditions of Power Decentralization

Abstract. Introduction. The development of Ukraine at the present stage depends on the ability of territorial units to self-development on the basis of resource self-sufficiency. Providing of steady socio-economic development of regions and territorial communities depends directly on the effective management system, the development of the real sector of the economic structure of the territory and the sufficient formation of its budget. The reform of local self-government should assist strengthening of territorial communities and increase their level of responsibility, as the base unit of local self-government, for the effectiveness of the territorial organization of socio-economic life of the community and the rational use of its resource potential.

Purpose. The purpose of the article is researching formation of financial and economic potential of territorial communities in the context of strategic priorities of development of local self-government in the conditions of decentralization of power.

Results. Reforming the territorial organization of power on the principles of decentralization is one of the key trends in the system of public transformation in Ukraine. The process of decentralization involves expanding and strengthening the powers of the authorities directly on the places, with the goal of increasing efficiency and optimization in the system of governance of socially important affairs, the realization of regional and local interests, which is the key of local development and democracy. With every year the questions that related to the development of rural areas in Ukraine have become all more actuality, because Ukraine is an agrarian country, where rural areas play an important role, since they occupy 90% of its area and occupy 1/3 of the population. Presently in Ukraine there is a process of search an effective way for the development of rural territories and the formation of a new model of management of rural settlements, where the central element should become a solvent territorial community.

Conclusions. Potential for the development of solvent territorial communities is a set of various factors that influence on their socio-economic development, determination of basic functions and systems of their development on their territory. Resource potential is an objective precondition for the territory to implement its development program, and it is characterized by the territory’s saturation by factors of production (natural resources, labour force, fixed assets, infrastructure, etc.) and the ability of the community to ensure the formation of a competitive and sufficient local budget.

Keywords: combining local communities; decentralization; administrative units; local development; financial capability; resources.

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