FINANCIAL INSTRUMENTS IN STATE STRATEGIC DEVELOPMENT OF REGIONS AND CITIES OF UKRAINE

Authors

DOI:

https://doi.org/10.18371/fcaptp.v3i38.237424

Abstract

Abstract. The article examines the features of the state regional policy of Ukraine and financial and credit mechanisms for its implementation in 2016—2019. The purpose of the article is to determine the possibilities of using various financial instruments in the state strategic development of regions and cities in the implementation of the integration strategy of regional development management of Ukraine. The methodological basis of this research are projects of international technical assistance, statistical information of the Ministry for Communities and Territories Development of Ukraine, the State Statistics Committee of Ukraine, strategies and strategic plans for urban development. The normative-legal basis of realization of the state regional policy in Ukraine is investigated. Models of financing regional policy depending on the leading role of regional development actors and the predominance of external or local resources for new initiatives are identified (model «top development», «external development», «internal development»). The financial instruments used to implement the strategic development plan of the region and the city (budget, investment, credit, grant) are studied. The projects and programs implemented in Ukraine in the field of decentralization and regional policy are summarized. The practice of using financial instruments of state strategic development on the example of the cities of Central and Eastern Ukraine (Dnipro, Zaporizhia, Kharkiv, Kryvyi Rih, Poltava) is studied. It is proved that the resources of the state budget are the main source of funding for infrastructure investments in the region and the city. Problems of regional strategies implementation are highlighted: ineffectiveness of existing mechanisms and tools for strategy implementation, lack of clear correlation between budget and strategic planning, insufficient amount of funding and its unpredictability, lack of regional development strategies with adequate financial resources. The directions of improvement of the state regional development are defined: expansion of the international and regional relations, intensification of receipts in the city (foreign and internal investments), formation of investment positive image, development of public-private partnership, distribution of corporate social responsibility policy.

Keywords: financial instruments, state regional policy, regional development strategy, projects

JEL Classification O16, O11

Formulas: 0; fig.: 1; tabl.: 3; bibl.: 14.

Published

2021-06-30

How to Cite

Fayvishenko, D., Shpak, Y., Melnichenko, O., Samoilenko, L., & Psiuk, M. (2021). FINANCIAL INSTRUMENTS IN STATE STRATEGIC DEVELOPMENT OF REGIONS AND CITIES OF UKRAINE. Financial and Credit Activity: Problems of Theory and Practice, 3(38), 86–94. https://doi.org/10.18371/fcaptp.v3i38.237424

Issue

Section

The topical questions about the development of finance, account and audit