The Coronavirus against Decentralization: Risks of and Challenges for the Development of United Territorial Communities in the context of the Pandemic
Ivanov Y. B., Ivanova O. Y.

Ivanov, Yuriy B., and Ivanova, Olga Yu. (2020) “The Coronavirus against Decentralization: Risks of and Challenges for the Development of United Territorial Communities in the context of the Pandemic.” The Problems of Economy 2:209–215.
https://doi.org/10.32983/2222-0712-2020-2-209-215

Section: Regional economy

UDC 33.332.332.1

Abstract:
The article highlights the current problems of and challenges for the development of united territorial communities in the context of decentralization and the pandemic. The spatial development of territorial communities is the main goal in the framework of implementing the decentralization reform, which is aimed at ensuring a high quality of life of the population and competitiveness of the national economy under conditions ofthe crisis and pandemic. The economic and social consequences of the coronavirus outbreak,which has captured the whole world, did not bypass Ukraine and its territorial units.The aim of the article is to identify the problems of the development of united territorial communities in the context of decentralization and the pandemic and to develop areas of anti-crisis measures for overcoming the problems andcreatingcompetitive advantages of united territorial communities.The low pace of development of united territorial communities reveals the presence of problems associated with their sufficient resource provision; efficient distribution of powers and responsibilities among the levels of government; validity of the criteria for uniting territorial communities; lack of sufficient management qualifications to elaborate effective strategies, programs, and projects for the development of united territorial communities. Moreover, it indicates their significant financial dependence on government support.The main problems of budget losses of united territorial communities due to the coronavirus pandemic and anti-crisis measures to support the population and entrepreneurship are identified. A roadmap of state support for the development of UTCs, defining the measures, timing of their implementation, and the responsible authorities is created.

Keywords: united territorial communities, decentralization, self-development, state support, pandemic, coronavirus.

Fig.: 4. Tabl.: 1. Bibl.: 10.

Ivanov Yuriy B. – Doctor of Sciences (Economics), Professor, Chief research scientist, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: yuriy.ivanov.ua@gmail.com
Ivanova Olga Yu. – Doctor of Sciences (Economics), Associate Professor, Head of, Sector of Problems of Regional Development and Decentralization of the Department of Macroeconomic Policy and Regional Development, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: laptevaou@gmail.com

List of references in article

“Vykonannia Derzhavnoho biudzhetu Ukrainy za 2015-2019 roky“ [Execution of the State Budget of Ukraine for 2015-2019]. Derzhavna kaznacheiska sluzhba Ukrainy. https://www.treasury.gov.ua/ua/file-storage/vikonannya-derzhavnogo-byudzhetu
“Vyzhivut li byudzhety OTG v borbe s koronavirusom“ [Will OTG Budgets Survive in the Fight Against Coronavirus?]. https://www.epravda.com.ua/rus/columns/2020/04/16/659472/4
Dvihun, A. O. “Koronakryza: novi mozhlyvosti hromad ta vyklyky dlia detsentralizatsii“ [Crisis: New Community Opportunities and Challenges for Decentralization]. https://niss.gov.ua/sites/default/files/2020-06/scientific-achievements-of-modern-society-niss.pdf
Derzhavnyi veb-portal biudzhetu dlia hromadian. https://openbudget.gov.ua/local-budget?id=26000000000
[Legal Act of Ukraine] (2020). https://zakon.rada.gov.ua/laws/show/540-20
Patytska, Kh. O. “Finansova detsentralizatsiia yak osnova formuvannia samodostatnikh terytorialnykh hromad Ukrainy“ [Financial Decentralization as a Basis for the Formation of Self-sufficient Territorial Communities of Ukraine]. Efektyvna ekonomika. 2015. http://www.economy.nayka.com.ua/?op=1&z=4412
Portal «Detsentralizatsiia». https://decentralization.gov.ua
[Legal Act of Ukraine] (2019). https://zakon.rada.gov.ua/laws/show/1312-2019-%D1%80#Text
“U Parlamenti zaproponuvaly metod zakhystu mistsevykh biudzhetiv i chas podatkovykh pilh cherez karantyn koronavirusu“ [Parliament has Proposed a Method of Protecting Local Budgets and the Timing of Tax Breaks Due to Coronavirus Quarantine]. https://agropolit.com/news/1
Sait Asotsiatsii mist Ukrainy. https://www.auc.org.ua/