RISKS OF DECENTRALIZATION OF UNITED TERRITORIAL COMMUNITIES

Abstract

The article investigates the history and causes of decentralization. The positive and negative aspects of decentralization are considered. The main risks that arise in united territorial communities as a result of decentralization are highlighted, namely: uneven social and economic development of communities; inhibition of implementation and application of macroeconomic policy principles, which may cause macroeconomic imbalance; a decrease in the efficiency of the socio-economic system (in various manifestations) and an increase in illegal income at local levels; the intended development goals are not achieved due to inappropriate spending of budget funds; the weakened integrity and unity of the country due to the significant intensification of the illegal activities of local elites. The task is outlined to create a basis for adjusting the activities and development of united territorial communities and form recommendations for improving the national plan, in order to minimize the risk of development of rural areas, maximize the autonomy of each village in the structure of united territorial communities, and ensure socioeconomic opportunities for community development of all territorial units that are part of the united territorial communities. The purpose of the research. To investigate and specify the existing risks that arise in amalgamated territorial communities during decentralization, to consider them at the theoretical and empirical levels, and to indicate possible ways to eliminate risks. Methodology. The theoretical basis of the study is the work of scientists and specialists, scientific research and documents on the decentralization of united territorial communities and the risks arising from this process. The research methods used include analysis, synthesis, scientific abstraction, and system analysis. Scientific novelty. Based on the results of the study, the author systematically defines the content of the definition of «decentralization risk», which should be understood as the situation caused by the decentralization reform which threatens the social welfare, survival and further development of rural communities and affects the whole society; the author substantiates the set of risks arising in the united territorial communities as a result of decentralization. Conclusions. The social risks of decentralization of united territorial communities can be divided into the following categories: the risk of slowing down the decentralization reform; the risk of excessive concentration of land in the private ownership of government officials or land traders; the risk of encroaching on the rights of ordinary farmers to land; the risk of farmers dissatisfied with the unions joining the common community. In addition, the creation of united territorial communities can be another way of using the funds of rural communities for the needs of regional centers. Leaders of united territorial communities can seize power and control community funds, and since the social infrastructure of small villages is closed, the social comfort of residents who do not have a central authority will also deteriorate.