ENSURING THE ECONOMIC CAPACITY OF TERRITORIAL COMMUNITIES: FOREIGN EXPERIENCE
Abstract
Introduction. The European integration direction of Ukraine's development includes decentralization, regionalization, cohesion, good governance, and revision of environmental policy on the basis of communities. In addition, communal property, as a form of public property, lays down specifics regarding its management. The municipal reform that has already begun is aimed at introducing relevant aspects into the territorial communities of Ukraine. However, new challenges associated with Russia's full-scale invasion of Ukraine do not allow completing the reforms that have been initiated and do not contribute to the development of institutions of participatory democracy. Despite the fact that modern states of the world that successfully solve the issues of economic development of communities have not encountered war directly, their practices can be useful for Ukraine.
Summary of the main results of the study. We should not limit ourselves to the methodology for forming capable communities approved by the Government. Yes, indeed, this document was the basis for the formation of capable communities in the process of their unification. And although this act remains in force, however, the issues of capacity are not limited to it. An economically viable community is more than economic indicators. The processes of European integration include regionalization, decentralization (of competences and finances) and cohesion of territorial communities, which is a logical continuation of municipal reform after the unification of territorial communities. The incompleteness of the constitutional reform significantly hinders the completion of the municipal one. It can be argued that the cohesion of a territorial community can be at the same time a result, a tool and a consequence of economic capacity. The economic capacity of a community is also the ability to ensure appropriate social standards within the territory. The economic development of a community offers numerous advantages within the community, ensuring that communities shape their local economic future both strategically and practically.
Conclusion. An economically capable community in the modern sense is a cohesive community where the foundations for sustainable development are provided. At the same time, the existence of such communities is possible only in democratic decentralized states. Among foreign measures, it is worth noting: local educational pilot projects within a specific settlement (Finland); systemic projects within a specific industry, where there is a release of workers and the cessation of work of enterprises, aimed at retraining taking into account the development of the industry (EU countries); external and internal migration policy (Canada, Australia, Japan, Portugal); introduction of remote work or work with a flexible schedule, construction of infrastructure for remote work of its residents in small communities; support for local energy communities and the social direction of the economy and modern technologies, etc. Among the successful practices of ensuring the economic capacity of communities that can be implemented in Ukraine, the following should be highlighted: education as a way to fill jobs within a specific community; stimulation of internal migration and remote work as a way to provide the community with workers; development of immigration programs taking into account the needs of communities in workers; support for the creation of local energy communities and the social direction of the economy and the basis of modern technologies. Today, digitalization is also about security, since the availability of information about threats and the availability of administrative orders under martial law ensure the preservation and provision of life and health of the population.Despite numerous successful projects in foreign communities, one should not be distracted from the key aspects of ensuring capable territorial communities of Ukraine. The key components of the strategy for the economic development of territorial communities in Ukraine include the following: completion of decentralization, in particular, the separation of powers between executive authorities and local self-government bodies; implementation of training and stimulation of the practice of involving citizens in decision-making through the institution of participatory democracy; attraction of investments in order to ensure sustainable development and cohesion of territories; increasing the level of community control over the activities of local self-government bodies and officials; further digitalization of communities and the introduction of electronic voting in elections and referendums; definition of community development strategies based on constitutional values and principles of the constitutional order. Finally, one should be wary of a purely ideological basis for reform without taking into account the realities of each territorial community.
Downloads
References
/References
Державна стратегія регіонального розвитку на 2021-2027 роки: Стратегія, затверджена Постановою Кабінету Міністрів України від 5 серпня 2020 р. № 695 (в ред. Постанови від 13 серпня 2024 р. № 940). URL: https://zakon.rada.gov.ua/laws/show/695-2020-%D0%BF#Text
Про затвердження Методики формування спроможних територіальних громад: Постанова Кабінету Міністрів України від 8 квітня 2015 р. № 214. URL: https://zakon.rada.gov.ua/laws/show/214-2015-%D0%BF#Text
Квасній Л. Г., Лобик О. О. Теоретичні засади формування фінансово-економічної спроможності територіальних громад в Україні. Регіональна економіка. 2023, № 4. С. 13-19. URL: https://re.gov.ua/re202304/re202304_013_KvasniyLH,LobykOO.pdf
Казюк Я. Аналіз методик оцінювання спроможності територіальних громад, висновки, пропозиції. 2023. URL: https://decentralization.ua/news/17549
Квасній, Л., Квасній, З., Даниленко, Ю., Гацков, О., & Строгуш, Ю. Проблеми управління фінансовим забезпеченням розвитку територіальних громад в Україні. Публічне управління і політика. 2025. №1 (5). С. 47–57. URL: https://doi.org/10.70651/3041-2498/2025.1.06
Лісовик В. Л., Шевченко О. М., Шовкалюк М. М. Підвищення спроможності громад у проєктах відновлення шляхом навчання з питань енергоефективності. Технології та інжиніринг. 2024. № 5 (22). С. 57-70. URL: https://technologies-engineering.com.ua/web/uploads/pdf/57-70.pdf
Orel, Y., Kulinich, O., Korniievskyi, S., Serohina, S., & Gryshko, L. (2024). The impact of decentralization on regional development in Ukraine: challenges and opportunities in the post-war era. Amazonia Investiga, 13(80), 99–108. URL: https://doi.org/10.34069/AI/2024.80.08.9.
Гришко Л.М. Шляхи підвищення згуртованості територіальних громад в Україні. Державне будівництво та місцеве самоврядування : зб. наук. пр. / редкол.: С. Г. Серьогіна та ін. Харків : Право, 2023. № 46. С. 236-261. DOI: https://doi.org/10.31359/1993-0941-2023-46-236
Anglin, R.V. Promoting Sustainable Local and Community Economic Development (1st ed.). Routledge. 2011. 302 р. URL: https://doi.org/10.4324/9781315089409
Community Economic Development for the Local Economic Development Officer: HANDBOOK. Manitoba. 2018. 21 р. URL: https://ccednet-rcdec.ca/sites/ccednet-rcdec.ca/wp-content/uploads/2022/09/community_economic_development_for_the_local_economic_development_officer.pdf
Building Stronger Communities: Understanding the Power of Community Economic Development. ResearchFDI. Published on June 27, 2023. URL: https://researchfdi.com/building-stronger-communities-understanding-the-power-of-community-economic-development/
Community Economic Development. Certificate. What is CED? Simon Fraser University. URL: https://www.sfu.ca/ced/certificate/About.html
VI World Forum of the Local Economic Development. 2025. URL: https://ledworldforum.org/
Just Transition, Development Financing And Territorial Solutions VI World Forum on Local Economic Development Seville, Spain - 1 to 4 April 2025. Final Declaration (Reduced version) URL: https://ledworldforum.org/wp-content/uploads/data/resources/Final-Declaration-VI-WFLED-EN.pdf?v=1698842700
OECD (2024), Job Creation and Local Economic Development 2024: The Geography of Generative AI, OECD Publishing, Paris. URL: https://doi.org/10.1787/83325127-en.
Atlantic Immigration Program. Immigrate to Canada. https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/atlantic-immigration.html
Rural and Francophone Community Immigration pilots. Immigrate to Canada. URL: https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/rural-franco-pilots.html
Manso-Burgos, Á.; Ribó-Pérez, D.; Alcázar-Ortega, M.; Gómez-Navarro, T. Local Energy Communities in Spain. Economic Implications of the New Tariff and Variable Coefficients. Sustainability. 2021. № 13, 10555. P. 1-18. URL: https://doi.org/10.3390/su131910555
The Socio-Economic Impact Of Social Economy Values And Principles In Spain. Analysis Report. Confederación Empresarial Española de la Economía Social, Prepared by Abay Analistas Económicos, S.L. / Isabel Martínez Martín, Rosa Santero Sánchez, Belén Castro Núñez.2023. 85 р. URL: https://www.cepes.es/files/publicaciones/143.pdf
Цифрова громада. Національний вебпортал для цифрових лідерів і лідерок, де разом будуємо найзручнішу державу у світі. URL: https://hromada.gov.ua/
Казюк Я., Венцель В. Оцінка фінансової спроможності територіальних громад за підсумками 2024 року. URL: https://decentralization.ua/news/19455
Посібники для громад, що прагнуть підвищити спроможність у сфері енергоефективності. Децентралізація. URL: https://decentralization.ua/news/19228?page=1034
State Strategy for Regional Development for 2021-2027: Strategy approved by Resolution of the Cabinet of Ministers of Ukraine dated August 5, 2020 No. 695 (as amended by Resolution dated August 13, 2024 No. 940).URL: https://zakon.rada.gov.ua/laws/show/695-2020-%D0%BF#Text [in Ukrainian]
On approval of the Methodology for the formation of capable territorial communities: Resolution of the Cabinet of Ministers of Ukraine dated April 8, 2015 No. 214.URL: https://zakon.rada.gov.ua/laws/show/214-2015-%D0%BF#Text [in Ukrainian]
Kvasniy L. H., Lobyk O. O. Theoretical foundations for the development of the financial and economic capacity of territorial communities in Ukraine. Regional Economy. 2023, № 4. С. 13-19. URL: https://re.gov.ua/re202304/re202304_013_KvasniyLH,LobykOO.pdf [in Ukrainian]
Kazyuk Ya. Analysis of methods for assessing the capacity of territorial communities, conclusions, proposals. 2023. URL: https://decentralization.ua/news/17549 [in Ukrainian]
Kvasnii, L., Kvasniy, Z., Danylenko, Y., Gatskov, O., & Strohush, Y. Problems Of Managing Financial Support For The Development Of Territorial Communities In Ukraine. Public Management and Policy. 2025. № 1(5), 47–57. URL: https://doi.org/10.70651/3041-2498/2025.1.06 [in Ukrainian]
Lisovyk V. L., Shevchenko O. M., Shovkaliuk M. M. Increasing the capacity of communities in recovery projects through energy efficiency training. Technologies and Engineering. 2024. № 5 (22). С. 57-70. URL: https://technologies-engineering.com.ua/web/uploads/pdf/57-70.pdf [in Ukrainian]
Orel, Y., Kulinich, O., Korniievskyi, S., Serohina, S., & Gryshko, L. (2024). The impact of decentralization on regional development in Ukraine: challenges and opportunities in the post-war era. Amazonia Investiga, 13(80), 99–108. URL: https://doi.org/10.34069/AI/2024.80.08.9. [in English].
Hryshko L. M. Ways of Increasing the Cohesion of Territorial Communities in Ukraine. State Building and Local Government : coll. of sc. papers / ed. board: S. H. Serohina (a head of the ed. board) et al. – Kharkiv : Pravo. 2023. № 46. С. 236-261. DOI: https://doi.org/10.31359/1993-0941-2023-46-236 [in Ukrainian]
Anglin, R.V. Promoting Sustainable Local and Community Economic Development (1st ed.). Routledge. 2011. 302 р. URL: https://doi.org/10.4324/9781315089409 [in English].
Community Economic Development for the Local Economic Development Officer: handbook. Manitoba. 2018. 21 р. URL: https://ccednetrcdec.ca/sites/ccednetrcdec.ca/wpcontent/uploads/2022/09/community_economic_development_for_the_local_economic_development_officer.pdf [in English].
Building Stronger Communities: Understanding the Power of Community Economic Development. ResearchFDI. Published on June 27, 2023. URL: https://researchfdi.com/building-stronger-communities-understanding-the-power-of-community-economic-development/ [in English].
Community Economic Development. Certificate. What is CED? Simon Fraser University. URL: https://www.sfu.ca/ced/certificate/About.html [in English].
VI World Forum of the Local Economic Development. 2025. URL: https://ledworldforum.org/ [in English].
Just Transition, Development Financing And Territorial Solutions VI World Forum on Local Economic Development Seville, Spain - 1 to 4 April 2025. Final Declaration (Reduced version) URL: https://ledworldforum.org/wp-content/uploads/data/resources/Final-Declaration-VI-WFLED-EN.pdf?v=1698842700 [in English].
OECD (2024), Job Creation and Local Economic Development 2024: The Geography of Generative AI, OECD Publishing, Paris. URL: https://doi.org/10.1787/83325127-en.
Atlantic Immigration Program. Immigrate to Canada. https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/atlantic-immigration.html [in English].
Rural and Francophone Community Immigration pilots. Immigrate to Canada. URL: https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/rural-franco-pilots.html [in English].
Manso-Burgos, Á.; Ribó-Pérez, D.; Alcázar-Ortega, M.; Gómez-Navarro, T. Local Energy Communities in Spain. Economic Implications of the New Tariff and Variable Coefficients. Sustainability. 2021. № 13, 10555. P. 1-18. URL: https://doi.org/10.3390/su131910555 [in English].
The Socio-Economic Impact Of Social Economy Values And Principles In Spain. Analysis Report. Confederación Empresarial Española de la Economía Social, Prepared by Abay Analistas Económicos, S.L. / Isabel Martínez Martín, Rosa Santero Sánchez, Belén Castro Núñez. 2023. 85 р. URL: https://www.cepes.es/files/publicaciones/143.pdf [in English].
Digital Community. A national web portal for digital leaders, where together we build the most convenient state in the world. URL: https://hromada.gov.ua/ [in Ukrainian]
Kazyuk Ya., Wenzel V. Assessment of the financial capacity of territorial communities by the results of 2024. URL: https://decentralization.ua/news/19455 [in Ukrainian]
Guides for communities seeking to build capacity in energy efficiency. Decentralization. URL: https://decentralization.ua/news/19228?page=1034 [in Ukrainian]
Copyright (c) 2025 Лілія Гришко

This work is licensed under a Creative Commons Attribution 4.0 International License.