Development of territories in the system of state regional policy

Abstract

Ukraine`s regional policy is currently based on a desire for the long-term view and long-term planning for the development of territorial units, as well as the need to rationalize the use of resource potential and economic infrastructure on the local level. The tasks listed above are deemed necessary to improve the regions` and communities` competitiveness. The paper defines that the territory`s social and economic development continues to be closely connected with strategy, tactics, and implementation of public policy. Accordingly, amid the global economic and financial transformation the strategy and national regional policy need to be continuously improved. The article is devoted to the analysis of the modern trends and prospects for the development of Ukrainian territorial units in view of the current strategy and national regional policy, which are being implemented. Comparison, methods of abstraction, analysis and generalization, graphic and tabular modeling are the research methods used in the article. The paper determines that the prospects for the territory`s economy depend not only on strategy and national regional policy but also on long-term changes in social and economic development, rates of digitalization of Ukrainian economy, degree of innovations and technological effectiveness of domestic enterprises that cannot compete in the global market. A number of amendments to the local development decision were proposed by authors, namely utilizing the existing social and economic frameworks against the impact of the pandemic; promotion of effective demand, which in turn will help reduce local budgets deficits; improvement of taxation policies in order to balance income distribution and lessening the tax burden of the business; using an effective mechanism to allocate financial resources between territories, as well as local and national budgets; adopting an operational best practices in the fight against corruption on the local level, etc.