Risks of Local Government Reform in Ukraine

Анотація

The implementation of local self-government reform in Ukraine is accompanied by a number of risks. The article considers the following as the main risks: differentiation of communities according to the level of their own incomes, lack of a clear distribution of powers, imbalance between powers and resources, insufficient self-sufficiency of communities, dependence on inter-budgetary transfers, imbalance of budget equalization mechanisms, low level of qualification of community leaders, insufficient control over on the part of the state, contradictions between local and state interests, corruption, lobbying for the distribution of interbudgetary transfers, blind copying of the experience of developed countries. These risks are mostly interrelated and should be considered as a whole. The ambiguity of the manifestation of positive results and risks of decentralization in different countries is largely due to the influence of many factors and relations within the socio-economic systems of the national, subnational and local levels. This leads to a very cautious copying of the experience of other states and requires an in-depth analysis of opportunities and potential threats during decentralization within each country, to comprehensively take into account socioeconomic and political factors, as well as factors of an objective and subjective nature. Leveling the above-mentioned risks requires improvement of legislative regulation mechanisms and financial equalization tools.

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