Development of Rural Areas in Ukraine in the Context of Decentralization: An Empirical Study

Abstract

Decentralization in Ukraine was actualized due to the inability of the local self-government system to satisfy the needs of the rural population in public services for the comprehensive development of a person, their self-realization, and the protection of their constitutional rights. The purpose of this empirical study is to examine development of rural areas in Ukraine in the context of decentralization. The methodology used was exploratory qualitative in nature and used a multiple case study, wherein data analysis were applied. We have found that the first result of decentralization in 2015–2018 is a slowdown in the decline of the proportion of the rural population, in the rate of decline of the available rural population, and the employment rate of the rural population. Our study refutes the hypothesis that the rural development targets, which were defined at the beginning of decentralization and fixed in the current legislation, have been achieved. Rural development targets have not been achieved, and economic modeling shows that there are no prospects for achieving them in the near future. The research results presented in the paper are of considerable importance for developing economic policy and the social development of rural areas, by addressing the needs of these rural areas.

Introduction of the Approach for Reviving the Sub-Municipal Level as a Spatial Aspect of Decentralization in Serbia

“…They are recognized in many European countries, as well: stadtbezirk (Germany), parish (Spain), freguesia (Portugal), sołectwo (Poland), synoikia (Greece), kmetstvo (Bulgaria), kmetij (Slovenia), concejos, pedanías or parroquias (Spain), autonomous villages (Turkey), little town-halls (Czech Republic), neighborhoods, etc. [10,[45][46][47][48][49][50]. They have been seen as identity-and community-keeping institutions or tools with which to facilitate the implementation of service delivery and mitigate the adverse effects of amalgamation reforms.…”

“…As various empirical studies have shown, decentralization, as a process, and its effects could be different depending on the level of development achieved. In high-income countries, decentralization led to a reduction of regional inequalities, while in low-and medium-income countries, fiscal decentralization has led to significant regional disparities [9,10]. Through decentralization, developing countries can improve the distribution of income and rural areas' development [11].…”

“…As Rowland [18] noticed, the increasing variety in local government practices could be considered a cause and, at the same time, a consequence of decentralization policies implementation. Some research has shown that the approach applied in regional development policies sometimes fails to be sufficient toward rural areas and rural settlements within disadvantaged areas [10,[18][19][20][21]. Wong et al [17] characterized power restructuring in China from the state toward villages as a shift from the "decentralization of governance" to the "governance of decentralization".…”

“…Decentralization is treated differently in developed and developing countries [7,10]. For developing countries, it is a source for delegation in the process of planning, implementing development goals, evaluating, and participating in decision-making, as well as the transfer of administrative powers from the central government to the local government.…”

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“…Yang et al (2022) analyzed that the digital economy has a positive effect on quality regional development and strengthening of the state's financial and economic security system. In addition, the problem of managing the system of financial and economic security of the state for a long time has been causing active discussions among researchers regarding the feasibility of applying certain methodological approaches to the management of the financial security system (Davydenko et al, 2022), the features of the introduction of a systemic-behavioral approach to the system of guaranteeing the financial security of economic systems (Leliuk, 2015), specific aspects of monitoring and assessing the state of financial security of the state ( Sirenko et al, 2019).…”