The ongoing crises caused by external factors (the Covid-19 pandemic and, since February 2022, Russia’s large-scale invasion of Ukraine) have increased economic instability, exacerbated problems in the system of state and local finance, which, in turn, has negatively affected the financial stability of the regions and, consequently, their economic growth opportunities. Therefore, there is a need to develop new approaches to the formation of state regional policy with a clear set of mechanisms and measures for each type of territory. The purpose of the article is to analyse and evaluate financial changes in the regions of Ukraine in the context of instability and to outline the directions of their further development. The article assesses financial changes in the regions of Ukraine in the context of the intensification of crisis phenomena (pandemic and Russia’s large-scale invasion of Ukraine). The following trends have been identified: a decrease in the share of local budget revenues in consolidated budget revenues; a decrease in the growth rate of local budget revenues in regions where intense hostilities are taking place; a change in the structure of local budget revenues, and hence a decrease in revenues from certain traditional budget-forming taxes; a noticeable increase in expenditures by sector. It is shown that the war in Ukraine has increased the unevenness of the formation of the tax capacity of administrative-territorial units, and the expenditure component of local budgets is characterised by a significant reduction in development expenditures. The author emphasises the need to improve the mechanisms of budgetary equalisation of territories. It is argued that the main vector of the policy of ensuring the financial sustainability of the regions of Ukraine should be balancing the needs of using external financial resources to restore stable growth rates and reduce the external financial dependence of the economic system in the face of macroeconomic shocks.
regions, war, instability, financial resources, local budgets, revenues, crises, development
The purpose of the article is to study the factors that determine the financial behavior of households in the region in conditions of economic and social instability, as well as to develop recommendations for managing financial resources in conditions of unpredictability and instability. The article aims to highlight the main influencing factors that determine decisions regarding the management of financial resources, in particular, the formation of the level of savings, investment, and consumption. This article examines the main factors shaping the financial behavior of households in the region in the face of modern challenges. Models of the financial behavior of households are formed and the key factors influencing their spending, savings, and financial management are identified. The influence of modern economic and social challenges on consumer behavior is analyzed. The impact of the COVID-19 pandemic on financial behavior is analyzed and financial management strategies in conditions of economic uncertainty are identified. The importance of the response of households to economic instability is emphasized and the main trends in changes in spending and consumer strategies are described. The impact of changes in the population’s income on consumption is analyzed in detail, and practical recommendations for managing finances in the face of modern challenges are formulated. The importance of responding to economic and social changes for the formation of stable financial strategies is indicated. Prospects for further research in the field of financial behavior and the need to improve financial management methods are highlighted. As a result of the research, conclusions are made regarding the key factors of the financial behavior of the population in the conditions of modern challenges, and the importance of understanding and analyzing the financial behavior of households in the modern economic environment is emphasized. The article argues that improving financial management strategies can contribute to more stable economic development and reduce risks for the population in conditions of instability.
The war, along with the need to strengthen the resilience of communities and support the affected population, has actualized the problem of protecting the rights and guarantees of internally displaced persons and fulfilling the proper obligations of the state in the conditions of intensified hostilities in Ukraine. Therefore, the gaps in the current legislation regarding the support of IDPs’ integration into life in new communities should be analyzed and identified. The article aims to analyze the institutional foundations of the protection of the rights and guarantees of internally displaced persons and to identify the legislative “gaps” in support of the integration of internally displaced persons into new communities in the conditions of war in Ukraine. The institutional principles of protecting the rights and guarantees of internally displaced persons are analyzed. Legislative conflicts/gaps, which slow down the pace of adaptation, and thus the integration of displaced persons into the life of host communities, are identified. The study reveals that the procedure for registration/re-registration of internally displaced persons is not fully standardized; the mechanisms for obtaining financial assistance are imperfect; there is a shortage of affordable housing; it is difficult to ensure unhindered access to medical services; there are problems with the employment of internally displaced persons due to the lack of vacancies and the mismatch of their qualifications with the requirements of the labor market. The Strategy for the Integration of Internally Displaced Persons until 2024 and the plan for its implementation are analyzed. Benefits and risks are emphasized. The article argues that information activities and popularization of entrepreneurship among IDPs by conducting various educational trainings will contribute to the birth of an idea and own businesses, but financing, introduction of benefits and incentives, or material support are more effective factors in the integration of IDPs by increasing their employment. The timely introduction of a tool for monitoring the problems and needs of internally displaced persons was emphasized, given the need to improve the integration of residents into host communities.
internally displaced persons, war, territorial communities, migration, integration
The decentralization reform in Ukraine is recognized as one of the most successful by both domestic and European experts. The Government emphasizes the transfer of executive authorities’ responsibilities to local governments, their distribution between levels following the subsidiarity principle, and the creation of a sufficient resource base for local governments to exercise their powers as major tasks of the second decentralization stage. Therefore, there is a need to find new approaches to building an effective business asset management system at the local level. The purpose of the article is to substantiate the theoretical and conceptual foundations for the management of business assets of territorial communities in Ukraine. The article reveals the essence of «business assets of the territorial community» and defines their characteristics and place in the structure of assets of the territorial community. The expediency of identifying business assets by a certain classification criterion (by the form of operation, by the nature of ownership, by the impact on development, by type of activity, and by type of participation in the economic process) is substantiated. The vision of the management of business assets of territorial communities is offered and characterized, which provides a combination of processes of planning, analysis (dynamics of formation and use of assets), motivation (for leaders and managers) and control; choice of management model (growth, restructuring, stabilization and and survival); a clear definition of tasks and principles of management. The purpose of business asset management is to ensure the profitability of assets and increase the economic capacity of the local community. Emphasis is placed on the need to reduce the operating cycle and accelerate the turnover of inventories and finished products, optimize the structure of fixed assets, upgrade obsolete equipment, introduce new technologies or develop new capacity, etc. as key determinants of effective business asset management policy.
Given that Ukraine has set a course to build a European model of strategic planning for regional development, it is high time to adopt a new regional development policy, which would take into account the specialization of the region and be multilevel, innovation-oriented, and aimed at strengthening the competitive advantages of regions. The purpose of the article is to substantiate the theoretical and methodological principles of implementation of the smart specialization model in the domestic practice of regional development strategy development. The article considers the theoretical and methodological aspects of a regional development strategy based on smart specialization. The essence features and expediency of the introduction of reasonable specialization at the regional level are emphasized. The dual nature of its functioning is revealed, namely: as a tool of regional development policy and as a concept (technology) of determining priorities for policy development to maximize the innovation capacity of the region. The principles of regional strategies development based on smart specialization are given. The paper provides a vision of developing a regional strategy based on smart specialization, which provides a logical sequence of stages, with a clear definition of tasks, a list of scientific methods, methodological approaches and principles. The ambiguity of the concept of smart specialization is emphasized and the existence of several methodological obstacles to the implementation of smart strategies is substantiated, namely, it is not obvious whether regions with different levels of economic development will benefit equally from its implementation. The paper proves that despite several problems, the solution of which lies in finding a balance of interests in the interaction of government, business, academia, and society, the introduction of smart specialization in the domestic practice of regional development strategy development has no alternatives.
Understanding the psychology of management decisions and the ability to avoid the most common mistakes is the success of any financial and economic projects is outlined. Under conditions of uncertainty and under the influence of personal characteristics, the economic entity cannot objectively assess the risks and prospects, which leads to irrational decisions. An important task is to find mechanisms and tools to adjust the process of irrational decision-making by regional economic actors. The purpose of the article is to substantiate the behavioral patterns inherent in the decision-making process of financial and economic entities at the regional level. The following methods were used for the study: abstract-logical, comparative analysis, graphical visualization. The article presents three models of management decisions by financial and economic entities: classical, behavioral, irrational. The peculiarities of the behavioral model and the factors influencing an entity’s irrational decision-making are revealed. The most common effects that provoke irrational behavior of regional economic entities are highlighted. The behavioral approach has been transferred to the meso level because the irrational behavior of people can be traced at all levels of government, and behavioral effects can be considered in the context of the enterprise, community, region as a group of people and as a whole “organism”. A model of irrational management decision-making by a regional economic entity is built. The consequences of irrational management decisions of regional economic entities are clarified and tools for their correction are proposed. Such tools should contribute to 1. improving the information support of financial and economic entities, eliminating the deficit and asymmetry of information, increasing the digital competencies of information consumers; 2. accumulation of behavioral financial literacy, which will reduce the negative impact of behavioral prejudices and allow to predict irrational decisions, сontrolling the behavior of financial and economic entities.
In this article the rating of the budget provision of Ukrainian regions has been evaluated basing on the calculation of Euclidean distances and grouping of indicators by budget status and balance, intergovernmental cooperation, budget stability and debt load. Using of the cluster analysis allows us to classify regions by integral indicator of budgetary provision into crisis, low, medium and high level. The analysis shows uneven budget distribution and confirms the need and timeliness of fiscal decentralization. The attention is on the first results of the reform of fiscal decentralization. It is shown that with the new changes to the Tax and Budget Codes financial stability of local budgets was strengthened, resulting in the growth of budget support demonstrated by almost all regions of Ukraine. It is proved that a high proportion of social spending in the minimum capital is not able to ensure economic growth in the region. The implementation of budgetary policy should be based on unleashing the potential of the regions, considering the fundamental principles of fiscal decentralization, especially in the empowerment of local governments to accumulation and effective use of development resources. The existence of certain patterns of implementation and budgetary policy of Ukrainian regions, caused by the influence of factors of exogenous and endogenous nature, has been highlighted.
Current economic situation in Ukraine is represented by significant asymmetry both in regional development and in budget resources availability. Therefore, maintenance of financial autonomy that directly depends on the level of local budgets revenues’ mobilization and their efficient use is one of the key problems of Ukrainian regions’ development. In this context the necessity of introduction of objective evaluation of self-sufficiency, balance and sustainability level of budget systems becomes of utmost importance. On this basis the feasibility of local government bodies’ budget policy can be considered. The article aims to improve methodical instruments of analytical basis evaluation and forming in order to percept objective reality of region’s budget system functioning taking into account the key influence factors that change its development and in order to obtain available information on the goals and priorities of budget policy. The article analyzes existing approaches to evaluation of region’s budget maintenance. The author pays special attention to the absence of distinct limits in the system of evaluation of «region’s financial condition», «region’s budget maintenance» and «region’s budget potential» as well as to the insufficient system of indicators that characterize the balance and sustainability of budget relations in the regions. On the basis of critical analysis and generalization the author proposes improvement of methodical approaches to evaluation of regions’ budget maintenance based on the method of comparative complex evaluation – Euclidean distances and grouping of indicators by separate evaluation directions, in particular: condition and balance of budget, inter-budget interaction, budget sustainability and debt burden (for the budgets of cities). It is stressed that individual indicators should be formed taking into account the following requirements: indicators of every group should represent certain (one) characteristics of the object under examination; close correlation links between the indicators should be observed within the group; instead, correlation links between indicators of different groups should be low. The author proves that the proposed approaches to analysis and evaluation of regions’ budget maintenance make it possible to consider the level of budget resources provision and possibilities of their use as well as to reveal budget risks and predict their neutralization measures. Budget analysis with the use of given instruments can be conducted at all levels of budget process and its results will serve as analytical basis in the practice of local self-governmental bodies.
Transformation processes in the global economy, evolutionary change within countries, and the growth of competitiveness of regions change the nature of the relationship between management entities. In this format the state as a closed economic space activities of subnational entities gradually loses its meaning. At the same time, the importance of regions as actors in the global economy increases significantly. The purpose of this article is to deepen the theoretical and methodological provisions of the regional development in the context of socio-economic transformation. In this article the author describes theoretical approaches to understanding the essence of “region” in terms of territorial, system and management approaches. Classification of regions according to certain classification sign is proposed. the Author’s conclusions and generalizations about own vision of the essence of this term are presented. The author notes: the lack of a uniform approach to definition of essence of concept “region”; the identification of the concepts of “region, regional system, the area” with an emphasis on administrative component; feasibility to consider the region as a field of the structural system with the set of stable relationships between economic entities of the same rank, with the simultaneous existence of the order of the highest rank; enhance domestic economic capacity to ensure own development. The theoretic-methodological basis for regional development in the theoretical and methodological planes is covered. In the article the author describes the laws, principles and factors of regional development. Funding instruments for regional development and the possible institutional support are systematized. The types and models of regional development are selected. The own vision of regional development is formulated, which should be comprehended as the process of accumulation is positive, irreversible, regular changes, which lead to higher living standards in the long term. It is proved that the vector of development of the region should be focused on the reduction of subsidization, the provision of self-development by enhancing internal capabilities. Modern regional development policy should be based on such a paradigm, which would take into account the interests of regions, the achievement of intersectoral cooperation, decentralization of power and balance (budgetary, economic, social, political).
In the article the existing mechanisms of formation and implementation of the budget of regional development policy were reviewed. Their structural elements are determined and characteristics are presented. The state budget mechanisms of support of regional development which funding sources are state and local budgets. We consider the current problems of finding and accumulation of financial resources in the budget for regional development. The paper emphasis on subventions, state targeted programs, government guarantees and the State Regional Development Fund as a key budget support mechanisms of regional development.
It is proved that for the process of allocating subsidies is inherent «latent management from center», imperfect budget allocation procedure and excessive dispersion of subsidies; implementation of state programs of regional development is accompanied by lack of coordination of sectoral and regional institutions, and the use of funds of the State Regional Development Fund contains a number of shortcomings.
A number of recommendations on optimization of existing and search potential sources of the financial resources to ensure regional development is formulated. Thus, in the direction of improvement of the procedure of formation of funds of the State Regional Development Fund is advisable to establish an indicative amount of fund in policy documents of the government in the medium term with restraint adjustment of indicators no more than 10%, and the allocation of the fund is appropriate to use the index method of distribution that will ensure transparency of the procedure. In order to facilitate the flow of financial resources to the regions it is advisable to initiate the introduction of competitive selection procedure of proposals from local communities to obtain subsidies for social and economic development.
Prospects for further research in this area is the question of fiscal decentralization, analytical research of budget mechanisms of regional development, which funding sources are local budgets.
budget mechanisms, regional development, state budget, local budgets, grants, targeted programs
Modern trends formation of local budgets by the example of Lviv region have been analyzed. The composition and structure of its own financial resources of the consolidated budget of the region have been investigated. The peculiarities of providing local budgets in Lviv region own income have been established. The problem formation of local budgets in Lviv region have been highlighted and possible directions of improving processes of increasing their own revenue base have been suggested.
local budgets, financial capability, local government, local budget revenues
The analysis of the state and trends of the budget maintenance of Carpathian region development has been conducted. The features that form the budget of the problematic region have been defined and the dynamics of the indicators has been analyzed. The problems of forming of own financial resources of administrative units have been outlined and the directions of problems solutions have been proposed.
The theoretical approaches to creation and use of financial potential of the region’s real economy have been presented. The concept “financial capacity” has been analyzed. The understanding of the “financial potential of the real economy of region” and its structural elements from the author’s point of view has been proposed. The expediency of application of the value added indicators of the enterprise as efficiency criteria of their financial capacity use has been justified
formation, use, potential, financial potential, the real sector, region, efficiency
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UDC 330.33.01:65.016(477); JEL O20, R58