UDC 332.1:352/354, JEL O18
Siryk, Z. O. (2016). Ekonomichnyy rozvytok i spivrobitnytstvo terytorial'nykh hromad [Economic development and territorial communities’ collaboration]. Rehional'na ekonomika - Regional Economy, 81(3), 34-42. [in Ukrainian].
Sources: 12

Authors

Resume

Modern state forming processes can be characterized by the domination of the so called community concept over the concept of paternalism; hence we can talk about the transfer of initiatives on territorial development to the community level. The communities through the means of indirect or direct democracy provide social and economic development of the territory and therefore create preconditions for implementation of sustainable development concept. Granting territorial communities with broad powers in the public-political sphere stipulates activation of their public activity, and therefore forming of civil society institutes and acceleration of territorial development. But solely activity and development of public initiatives and political processes at the level of community is not enough; financial capacity of the community is important and key factor. For this local government bodies have to implement available economic potential of the territory to the fullest extent and to actively promote the development of economic processes. They also have to act as the economic entities through efficient management of community property. Along with this, in terms of conducting of local governance reform economic development of the community can be fostered through the mechanism of cooperation between several territorial communities in order to solve mutual problems of territorial development. Taking this into consideration, the mechanism of economic cooperation as one of the directions of financial capability maintenance in the community evokes great interest. The article aims to analyze mechanisms of economic development maintenance and territorial communities’ cooperation implementation that can be used by local governance. The article outlines the problems of territorial communities’ economic development. The forms of territorial communities’ cooperation and strengthening of their financial capacity level due to the latter are analyzed. The features of cooperation development between the territorial communities are defined. Major risks in the process of communities combining are described.

Keywords:

territorial community, local governance bodies, inter-municipal cooperation, capable community, local budgets