Pressing Problems of Public Administration

Achievements and Problems of Using Market Approaches in Modern Public Governance for Reforming Ukrainian State-Owned Corporations

Ihor Dunayev — 2024-06-27

The paper is devoted to the attempt of critical rethinking of the known achievements and problems of using market approaches in modern public governance for reforming Ukrainian state-owned corporations. The aim of the paper is to substantiate the perspective vector of state corporations reform based on the combined use of modern theoretical concepts of public governance, which directly provide for the adaptation of current market approaches of corporate governance to a more inclusive and value-oriented governance. The logic of the research is built on a chronological review of public administration concepts, starting from managerialization of the 1980s-1990s to modern approaches, such as “government as a platform” (GaaP), collaborative governance, and public value management. Such an approach allows tracing the evolution of theoretical foundations and practical applications in the field of public administration.

The authors came to an important conclusion that the comparison of two perspective modern theoretical concepts (collaborative management of public policy and public value management) for the needs of modernization of large state corporations in Ukraine, these two approaches complement each other and can be applied in parallel. Collaborative management of public policy provides for the consideration of the interests of various groups at the policy formation stage regarding state corporations. And public value management focuses on the effective implementation of this policy at the operational level of state corporations in accordance with public values and interests. Therefore, the key task for Ukrainian reformers is to carefully balance the logic of the market and the principles of public administration in order to achieve a synergistic effect from their mutually complementary combination while preserving the priority of public values.

The final conclusion is that for the successful reform of state corporations in Ukraine in 2024-2030, it will be necessary to apply the latest model of public policy management. This model should integrate the best achievements of previous concepts - flexibility and result-orientation from the “new public management” and good governance, horizontal networks and co-management with civil society, as well as a focus on public values from the concept of public value management.

Advancement of the Smart City Concept: a Public Management Aspect

Valerij Babaiev — 2024-06-27

This paper addresses the conceptual and theoretical aspects of developing a “smart society” through the proliferation of the smart city concept. It examines the intelligent integration of information and communication technologies for monitoring and managing urban infrastructure. The study notes that smart cities encompass data collection and analysis, good governance, consumer efficiency, and environmental sustainability. Both European and American approaches to structuring smart city systems are elucidated. The research establishes that smart city components typically include smart governance, smart living, smart people, smart environment, smart economy, and smart transportation. A brief overview of industrial revolutions is provided.

In the realm of public management, understanding the conceptual foundations of a smart city aligns with a component-based approach, wherein specific smart elements are proposed and implemented. However, this approach does not resolve issues related to coherent, substantive development of the smart city concept in conjunction with human values and humanistic principles. The article emphasizes that from a public management perspective, it is crucial to combine the implementation of the smart city concept with concepts of smart specialization, sustainable development, green transition, and multi-level governance. This integration necessitates the development of coordinated public policy measures, the formation of appropriate public management mechanisms, and the implementation of inclusivity principles.

The study concludes that the substantive content of practical smart city models in formulating public policies and smart city development strategies should be based on an instrumental approach. In this approach, “smart” technologies, “smart” systems, and “smart” ecosystems are viewed and positioned as means to achieve socially important goals. This should be done on the principles of human-centricity, digital and technological humanism, ensuring human freedom and rights, and preserving the essence of humanity.

Efficiency of Multi-Level Governance and Common EU Security and Defence Policy under Conditions of Hybrid Threats

Dmytro Karamyshev — 2024-06-27

The article substantiates and proves that the focus on the implementation of the common policy and global strategies of the EU regarding the construction of a new European model of multi-level governance, strategic security and stability requires both the agreement of all decision-making subjects and ensuring their effectiveness in the conditions of global influences and hybrid threats. For the first time, the main provisions of the three-level conceptual model of rationalization of multi-level management are formulated and its use in the implementation of European security and defense policy in the context of hybrid threats is formulated, taking into account the relevant elements of sequence in the formation and implementation of public policy, which can significantly optimize the determination of the degree of integration by an individual participating country , willingness to invest and the ability to develop a specific strategic direction within the EU, as well as other ways and means of achieving its goals, algorithmization and demonstration of a step-by-step algorithm for solving complex problems to the subjects of implementation of programs and projects, as components of a complex coordination mechanism in the system multi-level management. Emphasis is placed on increasing the effectiveness of the implementation of the common security and defense policy of the EU in the conditions of hybrid threats and the need to introduce an integrated approach to ensure the national stability of European countries based on the concept of multi-level management, taking into account the global strategies of the EU.

The Mechanism of Tokenization of Currency Values for Modernization of a National Infrastructure of Financial Settlements

Aleksandr Kud — 2024-06-27

The paper substantiates the mechanism of tokenizing currency values to modernize the national financial settlement infrastructure. This necessitated a consistent resolution of three research objectives: a) justifying the existing insurmountable limitations in the widespread adoption of central bank digital currency, particularly in Ukraine; b) clarifying the structure of such a mechanism for using tokenized assets in developing market infrastructure using the e-commerce sector as an example; c) specifying three mandatory legal and technological conditions for the circulation of respective tokenized assets.

This article represents a logical and successive stage of the author’s efforts to establish a cycle of new ideas in the scientific domain regarding improving broad access to investment resources and significantly facilitating financial operations through a technologically secure procedure for tokenizing backed assets. The article continues the author’s long-standing series of publications in this area and the closely related field of platform public governance.

For the first time, the article proposes a mechanism for using tokenized assets to conduct transactions in the e-commerce and digital commerce sectors with deferred payment without an upfront deposit on the Internet using an escrow account. The core component of the software solution is a digital service based on blockchain technology implemented through a decentralized information platform, e.g., the Ukrainian-originated Bitbon System platform. This service, at least during the stages of acquiring the right to conduct a transaction and its settlement, involves using a bank escrow account. The mechanism employs the methodology of asset tokenization (i.e., with an actual and legal connection to the underlying asset) using an information platform by assigning a unique digital identifier (token) in the distributed ledger of the information platform, subject to maintaining a certain amount of funds in the escrow account.

Unlike the project of the Ukrainian central bank digital currency e-hryvnia, implementing the proposed mechanism does not require costly updates to the payment infrastructure in dozens of commercial banks at their own expense, nor does it necessitate additional legislative regulation. At the same time, such a model and mechanism can be used in the legal execution of almost any transaction in terms of ensuring deferred payment under a contract and can be applied in various sectors, including e-commerce, digital commerce, agricultural markets, and others.

The Mechanism of Public Governance through a Prism of Sports Infrastructure Updating: Identifying the Conceptual Apparatus

Volodymyr Kushnir — 2024-06-27

The presented work deals with the issue of the public governance mechanisms in connection with the need to solve the problems of the development of sports infrastructure in Ukraine. Taking into account the above mentioned, we can note that the purpose of the study is to analyze the phenomenon of public management mechanisms and its significance for practical solutions to the problems of the sports infrastructure development in Ukraine. The following tasks are formulated in the proposed material for the realization of the specified purpose: 1) to systematize the existing approaches to understanding the concept of “sports infrastructure”; 2) outline the meaning of the concept of “the public management mechanisms of the sports infrastructure development”.

The presented work shows that sports infrastructure as a phenomenon occupies a special place in the field of physical education and sports; however, the national legislation does not contain a normative definition of the relevant concept. Given the importance of this concept for our further research, the author’s definition of the concept of the “sports infrastructure” is substantiated in the presented work. The proposed definition generally correlates with European approaches to this phenomenon, which is important in the context of European integration processes.

The author summarized the current conceptual understanding of public management, as well as existing visions of the phenomenon of the mechanism of public administration. This became the theoretical basis for determination of the concept of the “public management mechanisms of the sports infrastructure development” as a set of available methods and means of management, the involvement of which by subjects of public management creates favorable conditions for the development of sports infrastructure as a material and technical basis for the practical and effective implementation of state policy in the field of physical culture and sports.

Theoretical and Applied Aspects of Ensuring Financial Inclusion as an Integral Component of Banking Sector Reformation

Valerij Iermak — 2024-06-27

This paper addresses the issue of ensuring financial inclusion as a component of banking sector reform. The aim of the study is to provide a theoretical justification for the growing role of financial inclusion in the context of banking sector reform and to develop relevant recommendations for improving regulatory policy regarding banking sector reform in Ukraine. This necessitated the formulation and resolution of four research objectives: examining the essence and components of financial inclusion; analyzing the current state of banking services accessibility in Ukraine; identifying the main problems and obstacles to the inclusivity of banking services; developing proposals to increase the level of banking services inclusivity.

The paper systematizes scientific approaches to the definition of «financial inclusion» and proposes its own interpretation in the context of the banking sector. Statistical data on the level of banking services accessibility in Ukraine during the pre-war period and under the legal regime of martial law are examined. The main problems and obstacles to the inclusivity of banking services are identified, and tools and strategies for developing financial inclusion in the course of banking sector reform are proposed. The conclusion is drawn that financial inclusion in Ukraine demonstrates positive dynamics, but requires further efforts to fully bridge the gap in access to financial services and ensure equal conditions for all segments of the population.

The article makes a key conclusion that the introduction of digital financial education and expanding access to financial services in remote areas are crucial steps to increase financial inclusion in Ukraine. These measures will not only enhance financial literacy and access to financial services but also create a solid foundation for the country’s sustainable economic development in the future. Both proposals are aimed at utilizing technological innovations to overcome existing barriers to financial inclusion, taking into account Ukraine’s specific conditions. Their implementation will require close cooperation between the government, the National Bank of Ukraine, the financial sector, and technology companies, but the potential benefits for the economy and society are significant.

New Application of the ‘Core-Periphery Concept’ in Determining Local Development Strategy for Post-War Ukraine’s Recovery

Mykola Popov — 2024-06-27

The success of regional development practices largely depends on the applicability of relevant foundational theories. A common approach to determining the theoretical basis for development programs is the application of the «core-periphery» concept. This concept is based on the thesis that in a spatial system, one can distinguish a core of development characterized by dynamic, competitive, and market-integrated production, and peripheral areas that are in a state of stagnation. According to this concept, the appropriate development strategy should focus on supporting those areas (the core) that have the necessary potential for growth.

Taking into account the specifics of post-war recovery in Ukraine, building a development plan based on the «core-periphery» concept should include the following stages: identifying the differences in economic development levels of various territories; initiating the process of concentration based on regional centers to create dominant cores that will become growth poles; developing interactions between the elements of the «core-periphery» model based on innovation and the integration of Ukraine into the global market; and further developing the elements of the «core-periphery» model that potentially reduce spatial inequality for the periphery.

The study shows that when applying the «core-periphery» model to Ukraine, it will be advisable initially to focus on replicating proven solutions, thus avoiding the costs associated with striving to find unique innovative solutions. Simultaneously, recognizing the existence and the connection between the core and the periphery will allow for the optimal allocation of available resources and the ability to focus on issues that are key to the specific territory. However, it is necessary to consider certain peculiarities of the «core-periphery» model:

The existence of economic disparities and differences between the core and peripheral parts of the region. To support the development of the core as a priority, it is necessary to ensure the development of industry, access to resources, and infrastructure development. The uneven development of different regions of the country, which will lead to an uneven distribution of public goods within Ukraine.

Analysis of Crisis Management Measures in the War Period as a Prerequisite for the Sustainable Development of Ukraine’s Industry

Oleksiy Gibadullin — 2024-06-27

This article focuses for the first time on the importance of an analytical approach to building a sustainable industrial recovery system based on a clear and transparent industrial policy aimed at efficient and transparent public-private partnership in a joint project. The goal of the article is to provide a scientific-analytical justification for the vector of building and developing the industrial recovery management system in Ukrainian regions and identifying «points of contact» in public-private partnerships and inter-sectoral interaction as the basis of regenerative processes during the period of martial law and after hostilities. The authors note that one of the key elements in the process of forming a sustainable industrial recovery system is the understanding of the importance of building a management system for industrial recovery of regions on the principles of public-private partnership and creating a business climate conducive to regenerative processes, considering the joint balance of interests between the state and business. This requires a broad comprehensive approach that combines an analysis of pre-war institutional development problems of the industrial economy, the current state of relations between the state and business, and identifies the most optimal model for implementing public-private partnership practices, considering the joint interest. It is important to take into account, first and foremost, the balanced equilibrium between the business demand and the capabilities of the state, and the underutilized intangible potential created on the basis of mutual trust and capable of facilitating regenerative processes «here and now» during the ongoing active hostilities, as well as guaranteeing the achievement of sustainable development goals in the future. As of now, it can be stated with certainty that the main request from the business is the creation of a business environment conducive to the development of recovery processes (from overcoming corruption risks, opacity, and pressure from the state, to a certain protectionism of the domestic manufacturer, as the economic component of sustainable development goals). The article reveals the cause-and-effect relationships and common «points of contact» for reviewing approaches to public-private partnership and management processes of the sustainable industrial recovery system during the period of martial law and after Victory as a prerequisite for post-war recovery and sustainable development of regions, which is a basic condition for searching and implementing ways to optimally use the available management resource, overcoming technological gaps, and creating conditions for the return of qualified migrants to Ukraine.

Specifics of Implementation of the Main Forms of Interaction Between Public Authorities in the National Security System: Theoretical and Practical Aspects

Denis Isaiko — 2024-06-27

The article is dedicated to disclosure of theoretical and practical aspects of the specifics of implementation of the main forms of interaction of public authorities in the national security system.

Based on the results of the study, the author identifies the peculiarities of interaction of public authorities in the national security system and offers the author’s own understanding of this interaction. It is argued that public authorities in the national security system exercise their power and administrative powers through managerial influence on objects, the external expression of which takes the form of managerial measures. The author also offers her own understanding of the essence of the forms of interaction between public authorities.

It is determined that the main forms of interaction between public authorities in the national security system are: joint development, submission of proposals and issuance of regulations in the field of national security; exchange of information on real and potential threats to national security; joint study of the state of protection of national interests and development of measures to stop real and potential threats to national security, as well as elimination of the causes and conditions of their occurrence; joint operations with the aim of preventing/stopping real and potential threats to national security.

The author provides recommendations for improving the practical implementation of interaction between public authorities in the national security system by amending the relevant legislation and consolidating the general principles of interaction between security and defense sector actors, introducing the practice of periodic joint events on various topics with greater consideration of empirical experience, and strengthening technical protection during the exchange of restricted information.

Regulatory and Legal Provision of the Public Administration of the Development of the Road Industry of Ukraine

Anatolii Tymokha — 2024-06-27

The paper examines the transformation of regulatory and legal provision of public management of road development in Ukraine under the influence of military aggression and the need for post-war reconstruction. The inconsistency of the current legal framework with the challenges of wartime was revealed, in particular, in the field of coordination of actions of different levels of government, financial support, prioritization of infrastructure restoration and public involvement. Gaps and conflicts in the legal framework were identified, which prevent effective public management and reconstruction of the road network. The experience of Georgia and Israel in overcoming similar challenges is analyzed, in particular, by adapting legislation, creating specialized management bodies, implementing electronic management systems and attracting international assistance. On the basis of the obtained results, scientifically based recommendations were developed for the improvement of regulatory and legal support and mechanisms of public management of the development of the road industry of Ukraine, aimed at increasing their efficiency, transparency and adaptability to modern challenges.

Compliance with the Standards of the Diplomatic Protocol and Etiquette as a Component of State Policy at the Present Stage

Valerij Ryeznikov — 2024-06-27

The paper presents the author’s analysis and view on topical issues, but rather little covered, of diplomatic protocol and etiquette and its use at the present stage.

The purpose of the article is to determine the specifics of the influence of compliance with the norms of diplomatic protocol and etiquette on the image of the state and its official representatives, as modern actors of diplomatic and political relations between countries and governments.

The historical stages of development of diplomatic protocol and etiquette are systematized and highlighted. The paper presents a comparative analysis of compliance with the rules of diplomatic protocol, etiquette and ceremony, as well as cases of deviation from the traditional and classical norms of compliance with the state protocol at the present stage. A SWOT-analysis of compliance with the rules of diplomatic protocol and etiquette by the current President of Ukraine is presented, where cognitive aspects as political components of the head of state are presented.

As a result of the analysis of the role and importance of diplomatic protocol and etiquette in international relations, it was established that certain types of diplomatic communication influence the observance of certain norms of behavior in special conditions. It has been found that under the influence of the globalization and democratization processes, diplomacy goes from classic closed to public open, and this affects the behavior of heads of state, politicians and statesmen, as well as the means of forming their own image.

Imperatives of Public Administration in Processes of Optimization of Executive Authorities

Maksym Yarmystiy — 2024-06-27

The article examines the imperatives of public administration in the context of ensuring improvement of the activities of executive authorities. The author analyses the works of Ukrainian scholars on imperatives in various areas of management activity and establishes, in particular, that there is no unified approach to determining the content and nominations (types) of imperatives in the public administration system. The author proposes a classification of public administration imperatives aimed at increasing managerial capacity and affecting the efficiency of executive bodies. Attention is focused on four imperatives of public administration: institutional, administrative, generative and interactive. Each of the imperatives is responsible for the development of relevant locations or components of management activities in executive bodies. The author establishes that the main condition for ensuring the efficiency of executive authorities is the application of an integrated approach to solving problematic issues at all locations of public administration. The question of the place and role of public administration imperatives in the global processes of the world order remains important. Therefore, along with the generally accepted imperatives of global development, it is advisable to take into account the imperatives of public administration both for the development of executive authorities in a particular country and in the countries of the respective continent.

Public Management of Communal Property: Best Practices for the Post-War Recovery of Ukraine

Tetyana Pokotylo — 2024-06-27

The article investigated the public management of communal property in the context of Ukraine’s post-war reconstruction. Special attention is paid to the analysis of national, international, and public initiatives aimed at restoring the destroyed infrastructure and ensuring the effective management of communal facilities. Different countries’ best practices and methods to restore communal property after conflicts and natural disasters were studied.

After World War II, Germany received significant financial and technological aid under the Marshall Plan, which allowed for a rapid rebuilding of industry and infrastructure. Using the latest technologies and innovations contributed to increasing the efficiency and quality of restoration works. After the war, France developed its own Plan Monnet, which emphasized centralized planning and state regulation. The state actively coordinated the reconstruction process, providing financial and administrative resources. Post-war Japan achieved an “economic miracle” thanks to the implementation of effective economic reforms and the development of high-tech industry. Innovation and research have become critical elements of reconstruction.

The article differed from other studies in its complexity and emphasis on the practical aspects of the implementation of restoration projects, in particular on the possibility of involving public-private partnerships and public initiatives. The key challenges faced by local self-government bodies were also considered, and specific recommendations were offered to improve the efficiency of communal property management in the post-war period. The conclusions of the article emphasized the need for coordinated efforts of all interested parties for the successful recovery and sustainable development of Ukraine.

The results of this study can be used by the government, local authorities and public organizations to develop strategies and programs for the restoration of communal property. Implementation of effective management practices will contribute to faster and better reconstruction, increase of economic stability and improvement of the population’s well-being.

Innovative Ecosystems as a Hidden Growth Driver for Ukrainian Small and Medium-Sized Businesses and Public Governance: are there Ground for Renewed Confidence?

Oleksii Anosov — 2024-06-27

The paper focuses on the role of innovation ecosystems in renewing the environment for small and medium-sized businesses and public administration in Ukraine. The aim of the article is to critically synthesize current theoretical research on the role of innovation ecosystems and develop proposals for their use as a potential driver of Ukrainian small and medium-sized businesses in wartime and post-war periods. The article provides a concise literature review to identify and analyse relevant literature on the connections and opportunities between digital age requirements and current strategies of associative and non-associative business structures. The review will be conducted considering digital transformation and the further acceleration of digitalization under martial law in Ukraine and in the context of the recent Covid-19 pandemic crisis. An important conclusion is drawn that the development of innovation ecosystems in Ukraine can lead to the creation of new high-tech clusters, especially in the IT sector, biotechnology, agrotechnology, and renewable energy. Prospects for further research are related to studying and substantiating the business ecosystem format for Ukraine. The business ecosystem format can play a key role in the recovery and development of Ukraine’s economy, especially in the context of supporting small and medium-sized enterprises (SMEs) during the war and in the post-war period. There are already existing preconditions and a global trend for this.

An Impact of the Network Governance Doctrine on Legitimacy of Self-Governed Entities

Mykhailo Bondarenko — 2024-06-27

The paper is devoted to the substantiation of the modern possibilities of the network approach in public governance and the definition of those aspects of it that provide for the expansion of self-regulating principles of economic activity for the needs of Ukraine. This study explores the influence of the network governance approach on the institutionalization of self-regulatory organizations. It reveals that the network approach, which challenges traditional hierarchical management models and emphasizes collaborative and decentralized structures, significantly shapes the landscape of self-regulatory organizations. These organizations exemplify network management, wherein industry participants voluntarily establish their own rules, fostering a more adaptable regulatory framework. Furthermore, they serve as platforms for information exchange among industry members, promoting collective understanding of best practices, standards, and emerging challenges.

The study demonstrates that the network approach facilitates the formation of expert communities within self-regulatory organizations, enabling the development of regulatory standards based on firsthand industry knowledge. Operating within a network governance model enables these organizations to swiftly adapt to industry changes, technological advancements, and emerging risks compared to traditional bureaucratic regulatory bodies.

Moreover, the network approach underscores the importance of trust and social capital in governance, with self-regulatory organizations relying on trust among members and external stakeholders to uphold their rules. Building and maintaining trust within the network are essential for effective self-regulation. Additionally, the study suggests that regulatory responsibilities can be shared among various actors, and self-regulatory organizations and can complement government regulation by offering detailed and tailored regulatory frameworks that address industry-specific nuances.

The network approach also incorporates peer monitoring and accountability mechanisms, with members of self-regulatory organizations monitoring each other’s adherence to established rules.