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Published in:
2021 | OriginalPaper | Chapter
The Role of Local Government Bodies in Formation of Economic Potential of Rural Territories in the Conditions of Decentralization Reform
Authors : I. Korobenko Roman, D. Kostyuk Olga, L. Mostenska Tetiana, D. Ostapchuk Anatolii, A. Kovtun Olena
Publisher: Springer International Publishing
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Abstract
The article is devoted to the research of changes in the role of local government bodies in shaping the formation of potential of rural territories in the conditions of decentralization reform. The main methods of research are logical, generalization, analysis, synthesis and analogy, as well as observation.
The role of local governments in the economic sphere continues to be limited to the development of various planning documents and the collection of statistical information on its implementation. However, all these powers do not allow local governments not only to be extras but to really influence the local economic situation. Therefore, the next stage of decentralization reform should be to improve the mechanisms and instruments of influence of local governments on the economic development of communities.
Despite of the lack of legislative support, the newly formed united territorial communities are in fact exercising local economic development authority in the following areas: development of planning documents; preparation of projects and search for sources of its financing; creating conditions for business development in the territory, in particular small and medium; attraction and support of investments. Areas in which local governments have no instruments of influence or de jure are: regulation of the local labor market; control over payment of business taxes; the possibility of applying sanctions for damages inflicted by businesses on the community’s natural environment.
The directions of improving mechanisms for powers implementation of local government bodies are offered in the article. The expected results are: reconciling the economic interests of rural areas on a local, regional and state level and occupying a community with their own niche in the regional division of labor; increased participation of individuals and legal entities in regional and international economic development projects under the auspices of the state; development of human resources and social infrastructure; providing scientific research, information, methodological support for the business activity of population and personal development; minimization of anthropogenic impact on the environment, elimination of threats of natural and artificial origins; achieving full compliance of the ecological profile of the territory with the regulatory requirements for the organization of production of a certain type of goods and services.