Abstract
The article presents a detailed analysis of public governance practices in the socio-economic development of territorial communities under conditions of increasing their financial capacity. The study emphasizes the importance of financial autonomy, institutional capacity, and the professional competencies of local self-government bodies as key strategic factors that determine the effectiveness of management processes, stimulate socio-economic development of communities, and enhance their competitiveness. Particular attention is paid to the role of financial management, budget planning, transparency in resource utilization, and the ability of local self-government bodies to respond promptly to changes in the economic and social environment. A comparative analysis of contemporary approaches shows that effective governance of socio-economic development is achieved through the comprehensive integration of strategic planning, transparent financial management, the use of digital platforms for monitoring and control, as well as the development of inter-municipal cooperation and resource sharing. The experience of Ukrainian amalgamated territorial communities demonstrates that optimizing budget processes, attracting grant and investment resources, implementing modern digital management tools, and stimulating local economic activity contribute to more efficient use of financial resources and improved management performance. The results allow us to summarize those successful practices of public governance of territorial communities are based on a combination of stable financing, digital transformation, development of institutional capacity, and managerial competencies, including leadership skills of community leaders and professional development of local government personnel. The proposed approach can ensure increased efficiency in resource utilization, support sustainable socio-economic development of territories, optimize the implementation of strategic local development programs, and enhance citizens’ trust in authorities. Such a comprehensive approach is a prerequisite for the formation of a resilient, competitive, and self-sufficient local governance system in Ukraine, aligned with modern European standards of territorial management and ensuring balanced development of all communities at the national level.
References
1. Dnipropetrovsk Investment Agency. (2024, December). Decentralization 2024: Results of the year. https://dia.dp.gov.ua/en/decentralization-2024-results-of-the-year/
2. BDO Ukraine. (2025, February). Capacity analysis of Ukrainian municipalities to attract grant funding: BDO in Ukraine’s survey results for 2024–2025. https://www.bdo.ua/en-gb/news-1/2025/analysis-of-ukrainian-communities-capacity-to-attract-grant-funding
3. Dzehur, H. V., & Semenovskyi, A. A. (2025). Mekhanizmy publichnoho upravlinnia sotsialno-ekonomichnym rozvytkom hromad v umovakh rezhymu viiennoho stanu [Mechanisms of public management of socio-economic development of communities in the conditions of martial law]. Publichne Uryaduvannia, (42), 16–23. https://doi.org/10.32689/2617-2224-2025-1(42)-2 (in Ukrainian)
4. Panchyshyn, B. I. (2025). Pidvyshchennia efektyvnosti publichnoho upravlinnia finansuvanniam rozvytku terytorialnykh hromad [Improving the efficiency of public management of financing the development of territorial communities]. Visnyk Khersonskoho Natsionalnoho Tekhnichnoho Universytetu. Publichne Upravlinnia ta Administruvannia, 2(1), 298–302. https://doi.org/10.35546/kntu2078-4481.2025.1.2.43 (in Ukrainian)
5. Pasynychnyi, M. D., & Obukhov, R. O. (2024). Finansova spromozhnist terytorialnykh hromad u konteksti zabezpechennia sotsialno-ekonomichnoho rozvytku [Financial capacity of territorial communities in the context of ensuring socio-economic development]. Business Inform, (4), 221–229. https://doi.org/10.32983/2222-4459-2024-4-221-229 (in Ukrainian)
6. Struk, N. P. (2020). Sotsialno-ekonomichnyi rozvytok terytorialnykh hromad i mistseve opodatkuvannia: Vzaemozviazok ta vzaemovplyv [Socio-economic development of territorial communities and local taxation: Interconnection and mutual influence]. Efektyvna Ekonomika, (5). https://doi.org/10.32702/2307-2105-2020.5.55 (in Ukrainian)
7. Borshchevskyi, V., Matvieiev, Y., Kuropsas, I., Mykyta, O., & Kovalchuk, V. (2022, April 29). Terytorialni hromady v umovakh viiennoho stanu: Yak zabezpechyty efektyvne upravlinnia v konteksti priorytetiv povoiiennoho rozvytku [Territorial communities in conditions of martial law: How to ensure effective management in the context of post-war development priorities]. Hromadskyi Prostir. https://www.prostir.ua/?news=terytorialni-hromady-v-umovah-vojennoho-stanu-yak-zabezpechyty-efektyvne-upravlinnya-v-konteksti-priorytetiv-povojennoho-rozvytku (in Ukrainian)
8. Council of Europe Office in Ukraine. (2024, April 10). Yak pidsilyty spivpratsiu terytorialnykh hromad? Spilna dyskusia [How to improve cooperation of territorial communities? Joint discussion]. https://www.coe.int/uk/web/kyiv/-/inter-municipal-co-operation-under-martial-law-in-ukraine-taking-stock-of-existing-practices-and-ways-forward (in Ukrainian)
9. Chorna, O., Semenets-Orlova, I., Shyshliuk, V., Pugachov, M., & Pugachov, V. (2023). Anti-Crisis Regulation of Enterprises Through Digital Management. Journal of Law and Sustainable Development, 11(3), e816. https://doi.org/10.55908/sdgs.v11i3.816
10. Chmyr, Y. I., Styll, A. V., Moshnin, A. A., & Rykunov, D. V. (2024). Mekhanizmy publichnoho upravlinnia: Sutt, rol ta funktsii (na prykladakh mekhanizmu kontroliu) [Mechanisms of public management: Essence, role and functions (on the example of the control mechanism)]. Publichne Uryaduvannia, (40), 50–57. https://doi.org/10.32689/2617-2224-2024-3(40)-7 (in Ukrainian)
11. Bobrovska, O. Yu. (2017). Rozvytok terytorialnykh hromad: Bazovi poniattya i pokaznyky otsiniuvannia [Development of territorial communities: Basic concepts and evaluation indicators]. Publichne Administruvannia: Teoriia i Praktyka, (17). http://www.dridu.dp.ua/zbirnik/2017-01(17)/16.pdf (in Ukrainian)
12. Diakonko, O. V. (2018). Vplyv finansovoi detsentralizatsii na rozvytok silskykh poselen u Ukraini [The impact of financial decentralization on the development of rural settlements in Ukraine]. Demohrafiia ta Sotsialna Ekonomika, 3(34), 161–174. https://dse.org.ua/arhcive/34/12.pdf (in Ukrainian)
13. Kravchenko, T. A. (2015). Terytorialna hromada yak pershovynnyi subiekt mistsevoho samovriaduvannia: Analiz suchasnykh naukovykh doslidzhen v Ukraini [Territorial community as the primary subject of local self-government: Analysis of modern scientific research in Ukraine]. Derzhava ta Rehiony. Seriia: Derzhavne Upravlinnia, 1(49), 68–75. http://pa.stateandregions.zp.ua/archive/1_2015/15.pdf (in Ukrainian)
14. Ksyonzhyk, I. V., Potravka, L. O., & Zamkovyi, V. M. (2020). Sotsialno-ekonomichnyi rozvytok terytorialnykh hromad v Ukraini v konteksti detsentralizatsii [Socio-economic development of territorial communities in Ukraine in the context of decentralization]. Derzhavne Upravlinnia: Udoskonalennia ta Rozvytok, (11). https://doi.org/10.32702/2307-2156-2020.11.3 (in Ukrainian)
15. Liutyi, I. O., & Spasiv, N. Ya. (2019). Otsinka finansovoi spromozhnosti obyednanykh terytorialnykh hromad [Assessment of the financial capacity of amalgamated territorial communities]. Finansi Ukrainy, (7), 92–112. https://doi.org/10.33763/finukr2019.07.092 (in Ukrainian)
16. Slukhai, S. V., & Derevianchuk, V. E. (2022). Vplyv detsentralizatsii na ekonomiku rehioniv Ukrainy [The impact of decentralization on the economy of regions of Ukraine]. Ekonomika ta Derzhava, (1), 115–120. https://doi.org/10.32702/2307-2105-2022.1.15 (in Ukrainian)
17. Storonianska, I. Z. (2018). Detsentralizatsiia v Ukraini ta yiyi vplyv na sotsialno-ekonomichnyi rozvytok terytorii: Metodychni pidkhody ta rezultaty otsiniuvannia [Decentralization in Ukraine and its impact on the socio-economic development of territories: Methodological approaches and evaluation results]. Institute of Regional Research of the National Academy of Sciences of Ukraine.
18. Chyzh, V. I. (2019). Vzaemozviazok rozvytku obyednanykh terytorialnykh hromad iz rozvytkom rehionu [The interconnection of the development of amalgamated territorial communities with regional development]. Zbirnyk Naukovykh Prats Cherkaskoho Derzhavnoho Tekhnolohichnoho Universytetu. Seriia: Ekonomichni Nauky, (52), 47–55. http://nbuv.gov.ua/UJRN/Znpchdtu_2019_52_8 (in Ukrainian)
19. Klyuchnik, A. V., Kormyshkin, Y. A., Halunets, N. I., Mukharskyi, I. H., & Kamashev, A. V. (2020). The impact of amalgamated territorial communities infrastructure on the formation of their competitive advantages. International Journal of Management, 11(5), 1045–1057. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3632654
20. Wright, G., & Slukhai, S. (2021). Decentralization policy in Ukraine: How voluntary amalgamation, intermunicipal cooperation and fiscal incentives impacted the local government system. NISPAcee Journal of Public Administration and Policy, 14(1), 311–343. https://doi.org/10.2478/nispa-2021-0012
21. State Tax Service of Ukraine. (2024, January 22). Local budgets received 430 billion UAH in 2023; this is 9.5% more than in 2022. https://tax.gov.ua/en/mass-media/news/748224.html
22. Decentralization. (2025, October 9). Mistsievi biudzhety zrosly: Za 9 misiatsiv 2025 roku hromady otrymaly ponad 374 mlrd hrn [Local budgets have grown: Communities received over 374 billion UAH in 9 months of 2025]. https://decentralization.gov.ua/news/20059 (in Ukrainian)
23. State Tax Service of Ukraine. (2025, April 9). Local budgets’ revenues increased by 18.2% in the first quarter of 2025 compared to the same period of 2024. https://tax.gov.ua/en/mass-media/news/886906.html
24. Pro dobrovolne obyednannia terytorialnykh hromad [On voluntary amalgamation of territorial communities]. (2020, April 16). Law of Ukraine No. 562-IX. https://zakon.rada.gov.ua/laws/show/157-19 (in Ukrainian)
25. Pro skhvalennia Kontseptsii reformuvannia mistsevoho samovriaduvannia ta terytorialnoi orhanizatsii vlady v Ukraini [On approval of the concept of local self-government reform and territorial organization of power in Ukraine]. (2014, April 1). Cabinet of Ministers of Ukraine Resolution No. 333-r. https://zakon.rada.gov.ua/laws/show/333-2014-р#Text (in Ukrainian)

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright (c) 2025 Eduard Shchepanskiy
