Regional development and decentralization: theoretical and practical aspects

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Regional development and decentralization: theoretical and practical aspects

Journal Title: Регіональна Економіка - Year 2016, Vol 81, Issue 3

Abstract

The article is devoted to examining of theoretical and practical aspects of introducing decentralization under current regional development conditions, which are characterized by territorial economic concentration. Globalization substantially influences regional development by concentrating it within certain areas, increasing the role of large cities in territorial concentration of economic activity. At the same time concentration processes are accompanied by unevenness, which leads to sharpening of territorial social and economic disparities and territorial inequalities in population and businesses’ access to various services. Recognizing the trends that define modern paradigms of regional development is extremely important for creating state regional policy that is adequate to challenges mentioned above and that must constantly adapt to conditions of changes in regional processes. Considering decentralization, which started in Ukraine two years ago, the problem of its combination with creation of adequate conditions for regional and local development becomes especially urgent. It is important to recognize the interconnection between the institutes like state and territorial community (administrative-based consolidation of communities) in order to form conditions of country development, which always act as complementary forms of organization; their relative balance and interaction create potential for development of each area. Turbulence of this balance occurs constantly, with different intensity, and influences medium-term and long-term perspective of territorial development for different scales. Principles, according to which decentralization is to be implemented, must be defined by tasks of state and communities that are related to formation of development conditions, increasing welfare of citizens. It seems impossible to define clearly the authorities for each territorial level of central and local bodies of power and local governments because, excluding very limited range of public services with insignificant economies of scale, both local and national governments always take part in their provision even after radical decentralization. For now, at first, there are insufficient conditions in Ukraine for implementing cardinal decentralization because of sluggishness of reforms aimed at strengthening of the institute of state; secondly, there is no clear development model for state and its institutes. It is important to realize the extent and speed of transformations in the decentralization dimensions – administrative, economic, political and fiscal (budgetary), how they must be combined, how reasonable it is to implement the reforms simultaneously. It is the optimal proportion of centralization and decentralization, usage of different types and forms of decentralization that is the most appropriate in current conditions that would secure the country from too high policy risks.

Authors and Affiliations

Serhiy A. Romanyuk

Keywords

EP ID EP436623
DOI -
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