Article

Multi-vector management model of decentralization program management in Ukraine

Lidiia Horoshkova, Ivan Karbivnychyi, Oksana Maslova
Retrieved from Vol. 17, No. 4, 2022 Pages 83–97
Received
05.09.2022
Revised
28.10.2022
Accepted
20.12.2022
Views
313

Abstract

Relevance in the research topic. The relevance in research is determined by the issue of decentralization and state socio-economic system reform, and restructuring of economic entities` territorial organization, which is one of ten priorities of the "Sustainable Development Strategy "Ukraine - 2020". The new administrative-territorial system should become the basis for building a new model of territorial management, based on the principles of decentralization, subsidiarity, balance of national interests with the regional and territorial communities` interests, the ubiquity of local self-government, as well as territorial communities` capacity and independence. Problem statement. Management of the decentralization process in Ukraine requires in-depth theoretical and practical research due to the reform of its administrative-territorial system. Analysis of recent research and publications. Pavlyuk A., Oliynyk D., Batalov O., Datsko O., Murkovich L., Molodozhen Yu., and other scholars studied currents aspects of solving territorial communities` and local self-government`s development problems [1-4]. Unsolved parts of the general problem. The decentralization reform means the formation of a new link in of administrative organization system in Ukraine by the introduction of a new administrative-territorial unit - a United Territorial Community (UTC). The transformation process must be gradual and systematic, so there is a need to build a model of transformations based on a programmatic approach, taking into account the synergistic effect. Study task and objective. The most universal management tool is the project-programme models, which makes it possible to apply programme management as the theoretical concept, and to solve modern management problems. The objective is to substantiate the theoretical and methodological provisions regarding the development programme`s management in united territorial communities based on multi-vector development. The study task is the development and justification of a multi-vector model of UTC`s development programme`s management amid decentralization of power in Ukraine; determination of the priority development programme trends for united territorial communities, and substantiation of methods, principles and processes of their implementation in accordance with the stages of national administrative and territorial system`s reform. Research method and methodology. General scientific (analysis and synthesis, induction and deduction, and group analysis) and special (abstraction, modeling, etc.) methods of studying economic phenomena and processes were used in the study. The main material (study results). The new legislative framework significantly strengthened the motivation for inter-municipal consolidation in the country, created appropriate legal conditions and mechanisms for the formation of capable territorial communities of villages, towns, and cities, who unite their efforts to solve urgent problems. One of the forms of implementation of inter-budgetary regulation principles is inter-budgetary transfers, which are the funds transferred free of charge and irrevocably from one budget to another. The list of transfers provided for in the state budget for local budgets is defined in Art. 97 of the Budget Code of Ukraine. Priority trends of spatial decentralization should not be considered as collinear vectors. Thus, to describe the process of interaction between them, one should use the parallelogram law for vector addition. The instability of complex systems is one of the management tasks for creating prerequisites for stable dynamic development. Only these systems are capable of self-organization. Systems` self-organization management is a source of their accelerated development, which results in the selection of qualities, signs and properties to increase the level of system organization in the process of its adaptation to external environment. There are two mechanisms of system development: bifurcation (corresponding to the crisis processes), and adaptation (characterized by high economic growth rates). Therefore, the state of dynamic equilibrium in economic system can be defined as unstable or stable equilibrium, respectively. Bifurcation mechanisms are able to bring a complex system out of equilibrium for a certain time. The bifurcations occur due to both internal and external factors. UTC is a system in a state of dynamic equilibrium (a sequence of equilibrium states) capable of self-organization, which is described by a system of differential equations. Conclusions. A multi-vector model of management of power decentralization programme in Ukraine was theoretically proved. The expediency of identifying the main priority areas of decentralization (vectors of priority development) was stated. The first stage vectors are the following: 1) resources and goods of a UTC; 2) financial capacity and self-sufficiency of a UTC; 3) system of state regulation. At the second stage, it is advisable to direct the managerial impact both on each of the priorities separately, and to obtain additional effect caused by their interaction (vectors of interaction). The interaction results are the paired sum of priority development vectors, namely: 1) a cluster development model of a new system of administrative and territorial organization; 2) a new public-private partnership model; 3) updated system of inter-budget relations. The development vectors of decentralized system of administrative-territorial organization for the priority areas` interaction will remain interconnected in the future. UTC`s systematization as a non-linear dynamic organizational and technical system was carried out, its main characteristics were highlighted, additional relevant characteristics were proposed taking into account the specifics of the study subject. The key issues of further management of power`s territorial organization reform and the formation of a new administrative-territorial system as a programme are to apply UTC capacity as of a separate stage of the basic level of a new state administrative-territorial system development, and its synchronization with the reform in the social sphere. The time span of the processes does not make it possible to develop all the programme stages in full. The final programme stages can currently be presented as forecasts for a certain long period. The transformational processes lag can be obtained only in the long term.

Keywords

References

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Suggested citation

Horoshkova, L., Karbivnychyi, І., & Maslova, O. (2022). Multi-vector management model of decentralization program management in Ukraine. University Economic Bulletin, 17(4), 83-97. https://doi.org/10.31470/2306-546X-2022-55-83-97