The Successful Reform during the War
Today, one of the most successful “assets” in the government’s activity is the decentralization reform.
During the last three years the following results have been achieved:
1) A huge work has been done to prepare for the actual transfer of powers from executive authorities to local self-government bodies. Conceptually, decentralization still has its addressee not at the regional and district levels, but at the level of communities;
2) The amalgamation of territorial communities has become a key element of the decentralization reform at its current stage. 414 amalgamated territorial communities, involving more than 10% of Ukrainian population, have been formed;
3) The high pace of community amalgamation is explained by the incentives provided for in the Budget Code, as well as by the significant expansion of powers. At the same time, Ukraine’s legislation lacks appropriate mechanisms and procedures for the participation of community members in local decision-making;
4) It is possible to predict a slowdown in the pace of community consolidation because at the initial stage, the consolidation took place among more developed communities with more developed infrastructure, including the amalgamation of communities of cities, villages, and settlements. The merger of “incapable” territorial communities would require a significant increase in budget funding;
5) The first 2.5-3 years of the implementation of the reform of relations between the center and subnational self-government units has demonstrated the need for developing additional incentives for expanding the range of business entities at the basic level.