• Yuliya Nemish Ivano-Frankivsk National Technical University of Oil and Gas
  • Hryhorii Borshch National Academy for Public Administration under the President of Ukraine
  • Vasyl Melnychuk Vasyl Stefanyk Precarpathian National University



reforming, decentralization, devolution, local self-government, institute of prefects, a united territorial community (UTC)


The relevance of the study is marked by the general global trend to change the role and functions of public administration. Here it goes about the introduction of the practice of delegating certain functions of public administration to the competence of local governments. Changes of public administration have taken the form of decentralization of central government and active increase in the role of public administration through local self-government.

The purpose of the study is to analyze the theoretical concepts of the system of relations between state and local government in the period of global changes and self-identification of the Ukrainian nation and their possibility of implementation. The object of the research is the system of reforming state power in Ukraine and the development of local self-government.

The study uses methods that can assess the tendency of decentralization and local self-government in the historical and logical approach and analyze the dynamics of this process through normative and logical analysis. These methods forecast further growth of the decentralization process and its consequences for the economy and regional development.

The study identifies the main factors that necessitate the introduction of decentralization of power. Areas that activate the necessity for appropriate reform are identified and described. The historical aspects of the decentralization reforms in different European countries are analyzed. Positive changes in reforms have been noted. They relate to the priority reorientation of socialist economies to a market model of management and the transition to a new paradigm of life in the countries. The history of development of Ukrainian decentralization of power is also studied.

A solution has been found to the controversy over the reform process initiated by the population in the regions and the political government. The situation is in favor of the interests of the ruling power. The main shortcomings of decentralization in Ukraine and the lack of financial support for such reform are also noted. It is proved that decentralization should be carried out at the expense of economic development and improvement of social and economic state of regions.

The practical value of the results relates to the recommendations for adjusting government policy in the process of implementation of administrative reforms for decentralization and local government development.

Author Biographies

Yuliya Nemish, Ivano-Frankivsk National Technical University of Oil and Gas

Ph.D. (Economics), Associate  Professor, Department of Finance, Ivano-Frankivsk National Technical University of Oil and Gas, Ivano-Frankivsk, Ukraine

Hryhorii Borshch, National Academy for Public Administration under the President of Ukraine

Ph.D. (Public Administration), Associate  Professor, Department of Regional Administration, Local Self-Government and Urban Management, National Academy for Public Administration under the President of Ukraine, Educational and Scientific Institute of Public Service and Local Self-Government, Kyiv, Ukraine

Vasyl Melnychuk, Vasyl Stefanyk Precarpathian National University

Postgraduate student, Department of Political Institutions and Processes, Vasyl Stefanyk Precarpathian National University, Ivano-Frankivsk, Ukraine


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Additional Files



How to Cite

Nemish, Y., Borshch, H., & Melnychuk, V. (2020). DECENTRALIZATION AND ITS INFLUENCE ON LOCAL COMMUNITY DEVELOPMENT. Economics, Finance and Management Review, (4), 4–13.



Chapter 1. Current trends in economic development