ASSESSMENT OF THE CAPACITY OF LOCAL GOVERNMENTS AGAINST THE BACKGROUND OF THE DECENTRALISATION REFORM

Abstract

The decentralization reform implemented by Ukraine is considered to be the most successful among Ukrainian reforms, in which local governments bodies received new powers and functions from central authorities. This reform strengthened local government, turned it from an appendage of public administration into a self-sufficient system of governance for the organization of life at the local level. Amalgamated communities received additional revenues to the local budget at the expense of personal incomes, profits of enterprises and financial institutions of communal property and property tax, received the right to approve local budgets regardless of the date of adoption of the law on the State Budget, etc. At the same time, the state has entrusted local self-government with a number of new powers, the implementation of which requires additional administrative resources, knowledge and skills. However, not all amalgamated communities are ready to fully perform the functions delegated by the central government. Local leaders sometimes does not understand how to use the new powers effectively, especially in full. The article analyzes the impact of the decentralization reform in terms of changes in the administrative- territorial structure and redistribution of powers on the development of communities and assesses the ability of local government bodies to use these changes to build their own communities, highlights the facts that hinder development in terms of financial capacity on the ground on the examples of their own observations, as well as considers conceptual approaches to the growth of professional skills the use of managerial functions for the economic development of communities, the need to increase the intellectual capital of communities, the skills and experience of administrative staff, as well as management mechanisms for the formation of civil society and the development of the financial capacity of amalgamated territorial communities is indicated.