THE METHODICAL PRINCIPLES OF CREATION OF ECONOMICALLY SELF-SUFFICIENT COMMUNITIES OF THE BASIC LEVEL


  • V.F GORIACHYK
  • G.M. MURZANOVSKIY
Keywords: self-sufficiency, united territorial communities, public services, concept, economic evaluation.

Abstract

Topicality. This is due to the deterioration of the quality and accessibility of public services as a result of resource insecurity of communities, aging of the population and rural departures, reducing the level of professionalism of local self-government officials, excessive centralization of powers of executive power bodies and lack of financial and material resources.

Purpose and tasks. Development of methodical foundations for the formation of economically viable communities at the baseline level.

Results. An analysis of the methodology for the formation self-sufficiency of united territorial communities (UTC), approved by the Cabinet of Ministers of Ukraine from April 8, 2015, No. 214, showed that it can not be considered as a methodology for the formation of self-sufficiency communities. It does not contain provisions on the economic assessment of the compliance of community incomes with the costs that are necessary to ensure the provision of public services assigned to the community. The main focus of this methodology is to identify the potential administrative centers of the communities (in the first place, these are the cities of regional importance and settlements with the status of district centers) and their accessibility zones. The concept of self-sufficiency of a separate UТC is replaced by the notion of matching its per capita income to the average level among all UТCs. The article formulated a scenario for the formation of economically self-sufficiency of communities of the baseline level, which involves a certain sequence of stages from the definition of the size of communities, the division of powers between different levels of administrative-territorial units on the principle of subsidiarity, the development of standards (norms) of public services, estimates of the costs required for the community exercising its powers and ending with legislative consolidation of the sources and volumes of community financing and its staffing. The project of distribution of powers between different levels of administrative-territorial units based on the principle of subsidiarity is proposed, which defines the level of provision of each service (community, district, region) and it is determined who has the authority to provide the service, has the opportunity and can most effectively perform the service.

Conclusions. The proposed scenario for the formation of economically viable communities at the baseline level and the project of division of powers between different levels of administrative-territorial units provide the basis for developing a methodology for economically viable communities.

Author Biographies

V.F GORIACHYK

Dr. Sc. (Economics), Senior Researcher

Institute Of Market Problems And Economic&Ecological Research of the

National Academy Of Sciences Of Ukraine

Frantsuzskiy Boulevard, 29, Odessa, Ukraine

G.M. MURZANOVSKIY

postgraduate student

Institute Of Market Problems And Economic&Ecological Research of the

National Academy Of Sciences Of Ukraine

Frantsuzskiy Boulevard, 29, Odessa, Ukraine

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Published
2018-03-20
How to Cite
GORIACHYK, V., & MURZANOVSKIY, G. (2018). THE METHODICAL PRINCIPLES OF CREATION OF ECONOMICALLY SELF-SUFFICIENT COMMUNITIES OF THE BASIC LEVEL. Economic Innovations, 20(1(66), 53-61. https://doi.org/https://doi.org/10.31520/ei.2018.20.1(66).53-61