Economic Decentralization in Ukraine: Achievements, Key Challenges, and World Experience

Анотація

The purpose of the article is to conduct a comprehensive study of the process of economic decentralization in Ukraine in the context of global instability and the need to build an effective regional governance system. The research focuses on the redistribution of powers between central and local authorities, the search for an optimal governance model capable of ensuring sustainable socio-economic development of communities. Decentralization is considered as an instrument for improving resource efficiency, strengthening local self-government, and developing democratic institutions that enhance public welfare and reduce socio-economic disparities among regions. The article provides a systematic analysis of the theoretical foundations of decentralization, identifying its key forms ‒ fiscal, political, and administrative ‒ and tracing the evolution of scientific approaches to its implementation, particularly in the works of W. Oates, R. Musgrave, C. Tiebout, and Ukrainian scholars. Through a comparative analysis of international experience (Germany, France, Poland, Denmark, Sweden), the study identifies the main patterns and features of administrative-territorial reforms that served as models for Ukraine. It highlights the course of Ukraine’s decentralization reform after 2014, its impact on enhancing the financial autonomy of local budgets, strengthening local governance institutions, and improving the quality of public services in education, healthcare, and social policy. The article analyzes fiscal outcomes, changes in the revenue structure of local budgets, the dynamics of establishing amalgamated territorial communities (ATCs), and the factors influencing their effectiveness. The study concludes that decentralization in Ukraine has become one of the key drivers of democratization, governance efficiency, and regional economic sustainability. However, several challenges remain, including unequal community development, resistance from certain administrative bodies, and weaknesses in intergovernmental coordination mechanisms. The prospects for further research lie in improving the institutional environment for effective fiscal decentralization, ensuring balanced territorial development, and developing new mechanisms for citizen participation in local policymaking. The obtained results can be used to enhance public administration efficiency, refine legislation, and design strategies for sustainable regional development.

Класифікація

Ідентифікатори

Схожі роботи