O. Svitlychnyi

Local development institutions in Ukraine: problems and perspectives

(Інституції місцевого розвитку в Україні: проблеми і перспективи)

Acceleration of economic integration of Ukrainian cities into the global world economic system results in creating of competition between territorial communities (municipalities) of developing countries. Thus, they use different innovative instruments which have to provide effective realization of local development opportunities. Western countries experience shows that one of effective tools of promotion of community development is creation of the "special institutions of territorial development" which:

- provide analytical and research as well as creative support at generation ideas;

- draft, support and implement the development projects initiated by municipal community;

- draft investment projects, search of and support potential investors;

- establish partnerships with international organizations with the purpose of attracting external experience/knowledge and money for realization and financing of the local development programs;

- assist creating of modern municipal infrastructure in the process of city development strategy realization by means of search for new solutions and mechanisms of their implementation. [1]

Theoretical and methodological approaches to the analysis of organizational and legal background of the activities of local development institutions are shown in works of many native researchers such as V.Babaev, V.Bakumenko, Z.Balabaeva, V.Vakulenko, Z.Varnaliy, O.Vasylieva, I.Grytsyak, M.Datsyshyn, M.Dolishniy, V.Keretsman, M.Lendiel, S. Romanyuk, V.Rubtsov , S.Sahanenko, E.Topalova and others.

Local development institutions are an entirely new form of organizing the process of development of territories. And as any innovative process it is accompanied by risks and determined by many pre-conditions of psychological, cultural, organizational, financial, economic and social character. Influence of the marked factors is heterogeneous for different cities and regions. Receptivity of regions and cities to the innovations depends on the personal and psychological descriptions of regional and municipal elite; management structure of a region or a city; social, political and economic type of co-operation of influential entities of development and others [2, 3, 4, 5].

After analyzing the development status of such institutions in Ukraine, three basic types should be distinguished:

- regional centers for investments and development;

- agencies for economic/investment development;

- city development institutions.

According to the patterns of ownership they are divided into state, communal, collective and private.

According to the legal form the following organization types are extended: NGOs, public utilities, municipal research institutes, LLC (Limited liability Company). Basically, local development institutions in Ukraine are non-profitable but they are able to accumulate some funds by providing some analytical activities on a by-order basis for organizations which in their turn make some voluntary money contribution to be used for fulfillment of some tasks under the institutions activities.

Non-profit status is a necessary attribute for taking part at grant programs financed by international donors.

Staff structure of local development institutions mainly consists of the economic analysts, but implementation of projects aimed at development of education, culture, science, art as well as infrastructural projects requires specialists of different fields: engineers, teachers, psychologists, art critics, sociologists and others. The scientists dealt with research activities are involved into work of local development institution to organize conduction of professional sociological and marketing research for the best consideration of the city community’s opinion and receiving of investment projects actual data.

In Ukraine the local development institutions function as an accelerator of establishing better interaction between authority and community by means of joint participation at implementing the development projects initiated by the city community. In most cases the public leaders are workers of the local development institutions or they work as invited experts in the ones. It promotes democratization of public relations as well as synchronization of actions of all interested parties and provides consideration of public opinion at defining key funding streams from municipal budget.

Particular characteristics of local development institutions activities can be examined on the example of the Kryvyi Rih City Developemnt Institution (Ukraine). The organization is functioning as a non-profitable public utility. The staff consists of 17 specialists who are working at five priority fields:

- initiation, draft and support of development projects;

- draft of investment projects, search for and support of an investor;

- draft of application at grant programs;

- conduction of professional sociological and marketing research;

- organization and holding of trainings as well as master-classes for local community.

Basic results of the Institution few the year of its existence:

- launch of excursions under industrial tourism development in the city as well as preparation for construction of road signs for tourists;

- creating of Kryvyi Rih City brand and start of its implementation campaign;

- creating of Kryvyi Rih industrial park conception and 3D model of perspective industrial park;

- construction of City Cycling for Kids Project under the grant program of

Metinvest Company in cooperation with NGO Komanda Adrenalin;

- training of a considerable amount of perspective heads of condominiums;

- development of 6 investment prorposals;

- conducting a series of research as to investment attractiveness of the city and satisfaction with living conditions by the city residents;

- draft of two complex development programs (Program of cycling infrastructure development from 2013 till 2015 and Program of preserving Cossacks traditions in the city from 2013 till 2017), the two was adopted by the City Council resolution, the third is being prepared for consideration;

- participation at the Forums and exhibitions where the industrial, touristic and cultural potential of the city was presented.

So, functioning of Kryvyi Rih City Development Institution is a crucial factor for intensification of development processes at municipal level, promotes effective realization of City Development Strategy as well as creating of favorable conditions for interaction of local authorities and community. The Projects of the City Development Institution reflect the actual needs of the city inhabitants which are being involved at every stage of project realization.

Under current conditions the local development institutions should act as accelerators of private investments in priority sectors and branches of economy, create conditions for forming infrastructure which provides enterprises with an access to financial and informational resources functioning at key sectors of the economy.

Forming of institutional infrastructure of regional management on basis of democratic governing, development of intersectoral cooperation of authorities, business and community at participation of local development institutions will contribute to efficiency and success of regional development management and speed up implementing of democratic management principles into a system of public authority.

References

1. Гінкул А. Як створити життєздатну агенцію місцевого розвитку / М. Саіт-Амєтов, В. Кашевський. - Практичний посібник для українських міст та районів. - Практичний посібник для українських міст та районів. – 2013. – 80 с.

2. Процес розробки стратегії регіонального розвитку / Практичний посібник. Розбудова вашої стратегії розвитку за допомогою методології належної практики ЄС / Підготовлено проектом ЄС «Підтримка сталого регіонального розвитку в Україні». – К.: 2011, - 106 с.

3. Офіційний сайт Проекту "Місцевий економічний розвиток міст України" [Електронний ресурс]. - Режим доступу : http://www.mled.org.ua/.

4. Офіційний сайт Проекту "Розбудова спроможності до економічно обґрунтованого планування розвитку областей і міст України" (РЕОП) [Електронний ресурс]. - Режим доступу : http://www.ebed.org.ua/.

5. Стратегічний план розвитку міста Кривого Рогу до 2015 року [Електронний ресурс]. - Режим доступу : http://www.kryvyirih.dp.ua/ua/st/pg/81111281312809_s/.