UDC 338.244.47(477), JEL O18, R13
Vlasyuk, O. S. (2016). Sotsial'no-ekonomichnyy rozvytok rehioniv Ukrayiny v umovakh detsentralizatsiyi vlady: vyklyky, zahrozy, novi mekhanizmy [Socio-economic development of Ukraine’s regions in terms of power decentralization: challenges, threats, new mechanisms]. Rehional'na ekonomika - Regional Economy, 81(3), 5-9. [in Ukrainian].
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At present, socio-economic development of Ukrainian regions is gradually stabilizing, which is manifested in the increase of positive development trends (including improvement of the construction sector, investment, industrial and agricultural production) as well as in the increase of number of regions where these indicators are improved. Foreign trade orientation of regional economics is gradually changing too; new markets for goods appear, expanding the geography of goods supply of Ukrainian regional producers. Stabilization of the socio-economic development can successfully decentralize power and strengthen the legal and financial potential of communities. In this way, a lot has been done, in particular, new special grants were introduced, the scope of public-private partnership for projects of local importance was expanded, the assistance from international financial institutions was involved. However, the implementation of regional policy and decentralization process have a number of shortcomings that block the successful development of communities and regions. A lot of shortcomings can be observed in using of the State Regional Development Fund, the financial capacity of communities is not strong enough (despite the transfer of a number of new revenue sources to local budgets), and also, the increasing of grant amount to local budgets only reinforces the dependence of communities on the government and the state budget.
These problems are added to the necessity of interaction of the occupied territories of Donetsk and Lugansk regions and annexed Crimea; and to rebuilding of the destroyed areas after the fighting of Donetsk and Lugansk regions, and search for mechanisms to restore economic activity and industrial and trade ties with other regions of Ukraine.
In this regard, regional policy and decentralization in Ukraine are under the pressure of necessity to create new mechanisms for its implementation and ways of its improvement in order to be able to give an adequate response to challenges faced during the current two years. These questions determine the relevance of this article. The subject of this article is to study the socio-economic trends of regional development and outline the course of decentralization process in Ukraine today. The purpose of this article is to outline mechanisms for updating regional policy and decentralization. The objectives of the article is to analyze the socio-economic development of the regions, to characterize the decentralization of power flow; to identify challenges and threats of regional development; to create new mechanisms for the implementation of regional policy and improving of the process of decentralization and strengthening the legal, material and financial viability of communities. Results of the study can be used in the formulation of regional policies, decentralization of power and the practical activities of executive bodies and local authorities.

Keywords:

decentralization, local governance, regions, territorial communities