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№2 (33) 2018

Demography and social economy, 2018, 2(33):117-129
doi: https://doi.org/10.15407/dse2018.02.117
UDC 352(477)

S.A. Rоmanyuk
Dr. Econ. Sciences, Рrof .
National Academy of Public Administration
under the President of Ukraine
03057, Kyiv, ul. Anton Tsedika, 20

Language: Ukrainian
Abstract: This article is focused on the theoretical and metrological aspects of decentralization. The problems of its implementation are consideredfrom the point of view of the optimal distribution of powers, responsibilities and resources first of all, between the state and the community as the two key institutions of the society.The institutionalized society.and community are conceived of as complementary forms of organization whose relative balance and interaction shape the economic potential of every territory. Changes in the balance between community and society take place constantly and affect the medium- and long-run development. And government should take this into account. Because decentralization policies have usually emanated from the center this process is very contradictory and complex. It is analyzed in this article. Factors such as the size of the country, the level of development, the dimension of the internal disparities, and, fundamentally, the type and degree of decentralization, contribute to determine the potential for subnational governments to efficiently deliver public goods and services.It is worth stressing, whether the positive or the negative effects of decentralization on local and regional development prevail, is almost impossible to determine and cannot be established using theory alone.The empirical work on the economic effects of decentralization has been limited and generally reaches widely diverging conclusions. The reasons for this diversity are that determining the impact of decentralization on local and regional development empirically is undoubtedly difficult. There is no clear agreement about how to best measure decentralization and, even when the same indicators are used, the methods and approaches vary enormously. In addition, it is impossible to discern what would have happened to local and regional development trajectories in the absence of decentralization. As a consequence, the evidence of whether decentralization promotes or deters local and regional development across the world remains limited.But conclusion is that with the exception of some very local services with few or no economies of scale, the center will continue to be involved in local service provision, even after radical decentralization, in important ways. Therefore, decentralization and centralization represent two ends of a single continuum and are both important in public governance for development of localities, regions and countries.
Key words: ecentralization, community, society, centralization, institutions, development.
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