DEVELOPMENT OF THE ECONOMIC POTENTIAL OF THE UNITED TERRITORIAL COMMUNITIES OF UKRAINE: PROBLEMS AND WAYS TO SOLVE THEM

Abstract

The article outlines the range of decentralization tasks to increase the level of financial capacity of the community. The need for participation of territorial communities in the reforming of the domestic system of local government is noted. The main reasons for the problems of development of the economic potential of the united territorial communities of Ukraine are identified: 1) corrupt centralized vertical of state power and its irrational use of financial and natural resources; 2) the lack of an effective and practical mechanism of local government as a democratic mechanism of local government; 2) increasing level of citizens' distrust of state power; 3) financial and economic insolvency of the vast majority of communities; 4) insufficient level of competence of the vast majority of local authorities and public assets; 5) misunderstandings between local state institutions, lack of their responsibility to the community, etc. Organizational and economic approaches to stimulate entrepreneurial activity of community residents and intensify the business environment are proposed. Attention is paid to the study of the professional composition of the population, identification of sources and distribution of income, resources available in UTC. The list of priority issues for candidates to executive bodies and UTC Councils is given: 1) professional qualities and ability to be face to face with the community, which means bringing the system of local government in line with the Constitution of Ukraine and readiness to solve community problems; 2) the ability to organize communication: the community – the authorities, the creation of the Center for Public Communications; 3) establishing civilized relations with investors and private business: the community – the developers – the industrialists – the farmers (to build large industrial, residential, tourist, entertainment, infrastructure facilities – only with the permission of the community); 4) bringing the structure of local government to the best option, primarily the optimization of utilities; 5) to promote the development of the spheres of health care, education, children's and youth creativity and sports, culture, transport; 6) creation of an economic policy in the field of housing and communal services, protection of the interests of BSP; 7) creation and implementation of an economic and social development plan for UTC, which meets the interests of the local community. Two crucial indicators need to be used as the basis for UTC's economic and human potential. The first is the quality of life index of each member of the local community (health and longevity, access to education and a decent standard of living). This index will help keep people from migrating to other regions or abroad and, conversely, attract additional human resources. Regional competitiveness is the second most important index that determines the ability of regions to create an attractive environment for business and investment development. For this purpose, a national rating is formed taking into account the indicator of own revenues per capita, the level of budget subsidies, which should not exceed 30% of local revenues and capital expenditures per capita without subventions from the state budget and the share of expenditures for management. Monitoring of the available resource base, together with the study of the real needs and opportunities of community areas are necessary for the further formation of the investment strategy of UTC. Each of the regions of Ukraine should have UTC investment passports, which should contain information about the economic potential of UTC, and a thorough audit of UTC resource bases should be the basis for developing strategies for economic development of communities.