Influence of Financial Decentralization on Development of Rural Settlements in Ukraine

Abstract

Вплив фінансової децентралізації на розвиток сільських поселень в Україні a rise in the standard of living of the population, subject to an increase in social spending and a significant share of the public sector; the field of education, especially primary and secondary education, through the delegation of educational functions to the local level and their financial support, as well as the active participation of the local community in the financing, management and control of these institutions; the health sector, which, given the inadequate management and low level of tax decentralization, will be characterized by a deterioration in the availability and quality of medical services for the rural population; improvement of local infrastructure due to the ability of communities to independently control costs, which will reduce the cost of work and maximize local needs. The prospects for the development of rural settlements in Ukraine due to the influence of financial decentralization implementation are substantiated.

Strategic Imperatives for the Development of Local Self-Government in the Conditions of European Integration Processes in Ukraine

“…The implementation of financial decentralization is a new stage in the administrative-territorial, economic, and demographic development of rural areas, which continues in the conditions of limited financial resources of united territorial communities (UTCs), their subsidization, inefficient use of acquired financial opportunities due to the incompetence of local leadership and their ignorance of the specifics budget reform [1]. Awareness of the nature and directions of the impact of financial decentralization on the development of rural settlements can accelerate the implementation of the reform and minimize its destructive consequences.…”

“…• probable slowing down of the process of financial decentralization, subject to the resistance of local elites and the intensification of their struggle for the material foundations of governance [1]. In fig.…”

“…Given the preservation of inertial development trends and the exacerbation of the financial and economic crisis, it is highly probable that the reform of budget 15 decentralization will slow down, which will affect the deepening of the deficit of rural budgets, the degradation of the rural economy, and the deterioration of the standard of living of the population [1]. The restrictive budget policy will intensify the processes of population reduction in the vast majority of small settlements and will lead to further administrative and territorial reformation.…”

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

“…The Kyiv, Poltava, and Kharkiv regions used the advantages of decentralization to improve the social development of the rural population. As shown by the experience of financial decentralization in Argentina, Spain, Italy, and Canada, the effect of the reform is moderate and mostly positive (in Argentina, budget decentralization helped reduce child mortality, while in Canada there was an improvement in public health [73].…”