2021 2

Organizational and Economic Mechanism for Ensuring the Development of Spatial Formations in Conditions of Decentralization. Current Issues of New Zoning

Borodina O.A. 
PhD in Public Administration
ORCID https://orcid.org/0000-0001-7469-9529
e-mail: borodinaoksana1306@gmail.com,
Institute of Industrial Economics of the NAS of Ukraine, Kyiv

Citation Format
Borodina O.A. Organizational and Economic Mechanism for Ensuring the Development of Spatial Formations in Conditions of Decentralization. Current Issues of New Zoning. Management of Economy: Theory and Practice. Chumachenko’s Annalscollection of scientific papers / Institute of Industrial Economics of the NAS of Ukraine. Kyiv, 2021. P. 13-34. DOI: https://doi.org/10.37405/2221-1187.2021.13-34


Modern reform processes АТУ with the accompanying processes of fiscal decentralization have consequences for a number of unresolved but urgent issues: the complication of macroeconomic policy, especially fiscal coordination, the aggravation of inherited territorial disparities, problems of institutional perfection of decentralized units that receive delegated powers. At the same time, analyzing the experience of countries with similar potential helps to determine their prospects without repeating other people’s mistakes. Thus, the experience of European countries, in particular, Poland, proves that the three-level structure of the territorial organization of power in the continental system of local self-government bodies is effective, and the correlation identity with the Polish territorial system gives Ukraine the opportunity to take into account the positive consequences and minimize risks.
The article contains reasonable evidence of the need to take into account in Ukraine the European approach to territorial division and the nomenclature of territorial units for the purposes of NUTS statistics. Based on the ratio between the categories of income of administrative divisions in Poland, we propose our own vision of building a national system of budget and tax distribution with the introduction of fundamentally new institutions and mechanisms.
A conceptual vision of the system strategy of economic development of spatial formations is presented. Taking into account the frequency of Kondratiev cycles, it is noted that for the period of 25-30 years of the half-cycle of the descending wave at the community level, the territorial community should develop for its own strategic development such scenarios of advanced development that could be implemented in the next half-cycle (25-30 years of the next ascending wave).
The advantages and threats of budget decentralization, its main determinants in European countries are presented. Taking into account some experience of the relevant fiscal processes in our country since 2019, an analytical study of budget decentralization in its political, regulatory, organizational and institutional planes was conducted. The institutional problem of the new spatial division is considered at the level of a new enlarged district – as a new player in the administrative-territorial division of the state. An urgent problem was stated-an extreme lack of funds even for the exercise of their own powers. To achieve a positive effect of organizing the work of state authorities at all levels of the territorial organization of power, it is proposed to use the possibility of applying the positive effect of external externalities. When the effective work of a public authority is achieved from the synergy of the work of two subjects, with characteristic functions and a range of rights and powers.
A number of recommendations are made to streamline the regulatory framework for normalizing the further process of budget decentralization and improving the efficiency of the work of subregional authorities. It was noted that the process of decentralization should be closely linked to the new regional policy and the transformation of the entire regional structure, as well as ensure social legitimacy and Justice.

budget decentralization, spatial division, administrative-territorial structure, Regional Development, extra-budgetary funds.


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