Transparency in public and local finance is one of the most important factors in building a democratic society with high level of public confidence in the government. Democratic shifts in a country will only take place if citizens perceive the country’s government and local self-government as fully transparent and controlled by them. Citizens will be able to support and cooperate with the government if it informs them of all public activities: decision-making, financial reporting, planning, local budget expenditures, etc. Transparency in the formation and use of local financial resources is the most sensitive issue.Local finance transparency has been studied from the perspective of 21 online portals of local authorities from four Ukrainian regions, geographically remote in the context of two main blocks, namely, the state of public procurement and the budget process. The portals of Lviv, Vinnytsia, Sumy, Mykolaiv administrative centers and the city of Kyiv were identified in each region (oblast), and in each oblast, four cities with the district status, which are the largest by population, were identified. Significant discrepancies in local finance transparency have been identified, as portals of regional centers and a small number of districts have high levels of transparency. The vast majority have low transparency in local finances. In addition, the level of community involvement in the regional development problems through social networks was analyzed. The population of small cities was found to be more active. Most local governments should pay attention to the low level of portals in terms of making them user-friendly.
The article explores the process of liquidation of banks, which has become significant in the banking system of Ukraine, examines the positive and negative aspects of this process, analyzes the current legislation on the return of funds by the Deposit Guarantee Fund and focuses on the most problematic issues of the procedure of payment of funds, which are guaranteed by law. An estimation of inflationary and devaluation effects on the key indicators of the banking system has been conducted, which made it possible to avoid distortion of real statistical data and make a more accurate analysis of functioning of the banking system without the influence of external factors. Based on statistical data of the NBU and the Deposit Guarantee Fund, an analysis of the results of a large-scale "clearing-up" of the domestic banking system was carried out in order to identify the consequences of such a process on the performance indicators of the banking sector in Ukraine. It was clarified that decrease of the number of banks led to a significant decrease of assets of the banking system and resource base of banks, the legislation guaranteed the return of funds of individuals and funds of entities and banks that were invested in liquidated banks are returned in order of priority of satisfaction of claims to the bank if funds are available. The issue of the lack of statistical information on the volume of repayments of entities and banks that were invested in liquidated banks is considered, which makes it impossible to carry out a more complete analysis of the impact of liquidation of banks on the performance indicators of the Ukrainian banking system. In general, the process of "cleaning-up" the banking system is assessed as a negative impact on the development of the domestic banking sector, which led to the decline of its solvency, in particular, by "freezing" the funds of other banks in banks that were in a state of liquidation, which gave rise to the "domino effect" in the banking system.
The introduction of a qualitatively new type of relationship between citizens and authorities, one in which every person would be guaranteed real observation and protection of the rights and freedoms in these bodies activity, should be one of the priority areas of socio-political transformation in Ukraine. The urgency of the improving local finances, the formation of local budgets and the use of their funds is increasing due to changes in local self-government. The article proposes a scientific methodological approach to assessing the level of financial decentralization in Ukraine during the period of the decentralization reform (2014–2017). The universal integral indicator of financial decentralization has been calculated, which has found that local budgets improve public funds management, which is illustrated by the growth of the integral indicator level in dynamics. A number of recommendations are also provided for improving the budget process transparency for each of the components: budget information openness, the state and effectiveness of budgetary supervision, and public participation in the budget process. The idea of the relationship between the budget process transparency and the results of the financial decentralization reform is proposed.
The purpose of the study is to assess the relationship between Ukraine's foreign trade and its major macroeconomic indicators in the context of deepening globalization processes and increasing dependence of national economic development on exogenous determinants. In order to achieve this goal, the most important factors of influence of macro level on the scale of foreign trade turnover have been selected, the interval of observations has covered 1999-2018. Authors used the method of economic and mathematical modeling based on the E-Views software. A multifactor regression model has been constructed, tested for autocorrelation and heteroskedasticity; causal effects have been identified between foreign trade and the main macroeconomic indicators of combinatorial nature (both exogenous and endogenous), Ukraine’s foreign trade volumes has been forecasted up to 2023. Methodology. The study is based on the analyzed macroeconomic indicators for the period of 1999-2018, which made it possible to select those that showed up greatest impact on foreign trade. The results of the conducted modeling showed: high level achievement of foreign trade dynamics of Ukraine over the mentioned years, which exceeded similar indicators of dynamics of global trade; strong link between foreign trade, foreign direct investment and employment; revealing of a significant influence upon foreign trade of innovative activity of national business in industry as a dominant segment of the foreign sector of the country. As conclusions, the authors formulated a thesis on the need to strengthen institutional support for innovation and investment activities of national enterprises as a driver for scale-up and improvement of quality of Ukraine's trade relations with the entire world. It is determined that the multiplicative interaction of innovation and investment would diversify and complicate the commodity structure of exports, increase the level of its technological and innovative nature, and thus it is to allow to get rid of the established attitude to Ukraine on the trading map of the world as a supplier of low-tech raw materials. Practical implications. The main theoretical propositions, the authors’ conclusions presented in the article, are supposed to form a methodological basis for expert evaluation in substantiating the priorities of the state policy modernization regarding conditions and factors promoting the export-oriented sectors of the national economy. Value/originality. Prospects for further research in this sphere may be to assumed onto making an assess on risks (threats) and macroeconomic effects of foreign trade deterioration in the context of declining economic activity regarding importing countries of their domestic products, especially in the EU and the PRC, further weakening of external channels of investment and reducing the ability of businesses to innovate in deepening recessionary processes on the global and national levels.
A successful reform of financial decentralization in Ukraine requires compliance with a number of institutional conditions that will allow them to achieve their goals efficiently and without resource losses. The purpose of reforming the existing system of local self-government is to increase the degree of citizens needs satisfaction. The reform of financial decentralization is intended to transfer the relevant financial resources to the level of territorial communities in order to satisfy the interests of the community. But for this purpose, it is necessary to create a number of institutional conditions that will organize relations between all stakeholders. An analysis of literary sources confirmed the hypothesis that the relationship between the state and society is determined by a set of institutional conditions that collectively determine the functioning of the economic system. The literary review pointed to the need for a comprehensive perception of institutional conditions as an environment, taking into account territorial bases, legal aspects, financial and economic relations, interpersonal interaction. It was found that institutionalization is the basis for any social changes in society, in particular for a large-scale reform of local self-government-financial decentralization. The methodical tools were methods of index analysis, which allowed to carry out an equal comparison of heterogeneous institutions according to the institutional conditions of the research objects. The period of observation of the key indicators of public administration was the decade from 2006 to 2016. The aggregate index of institutional conditions for financial decentralization was created in 2012-2016. The subjects of the study were selected European countries with experience in implementing the reform of financial decentralization. Particular attention is paid to the analysis of the corruption component of the institutional environment, since it poses a threat to reform. Some aspects of economic freedom, in particular, the tax burden index, which characterizes the degree of fiscal pressure in the country and the index of state expenditures, are investigated. The next stage was the construction of an index of institutional conditions of financial decentralization. At the first stage, a baseline of institutional conditions was formed, which included the following: voice and accountability; political stability and lack of violence; the effectiveness of public administration; quality of state regulation; compliance with legislation; control of corruption; tax burden; characteristic of the volume of public expenditures. At the second stage, the absolute normalization of the selected indicators for the period of 2012-2016 years was carried out. The final stage involves an additive convolution of normalized indicators and obtaining an effective indicator. As a result of the study, it was clarified that a number of institutional environment issues should be addressed in order to carry out an effective reform of financial decentralizatio...
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