Insecurity, chaotic extensive internal movement, and external migration, growing social vulnerability, and decreasing economic stability of internally displaced persons, characterize the migration ...crisis caused by the large-scale Russian war against Ukraine. The aim of this paper is to reveal the needs (tangible and intangible), challenges, and opportunities for the social integration of internally displaced persons in the host communities (on the example of the Pidberiztsivska territorial community of Lviv oblast). The paper presents the sociological survey through in-depth interviews based on questionnaires. The sample is based on five strata (four starostyn areas and the administrative center) and amounts to 4% of the statistical population (50 displaced persons). The paper specifies that the host society’s lack of affordable housing (68.6% of respondents) and limited employment opportunities (39.9% of respondents) are the main challenges for internally displaced persons. The survey reveals a low level of integration of internally displaced persons and a lack of desire to assimilate into the host society caused by positive aspirations to emigrate abroad (13.5% of respondents) and intentions to return to their previous (permanent) place of residence (54% of respondents). Mapping the problems and needs of internally displaced persons can constitute the information-analytical basis for ensuring the communities’ economic progress in times of war in terms of accumulation and efficient use of the capacity of internally displaced persons.
AcknowledgmentThe study is conducted within the framework of the grant “Instruments for the support of integration of IDPs into life in the Pidberiztsivska territorial community: A pilot project in Lviv oblast” funded by the International Renaissance Foundation (Grant registration number 54766, 2022–2023).
The article updates the issues of ensuring financial security and stability of the entities of the small business sector in Ukraine in the conditions of critically acute instability caused by the ...consequences of the ongoing full-scale war. The purpose of the study is to substantiate the priorities and tools for strengthening the financial security of the small business sector of Ukraine in conditions of instability. The goal of the State policy of strengthening the financial security of the small business sector of Ukraine in the conditions of wartime and instability should be the systematic improvement of the business environment of entrepreneurial activity in the context of minimizing financial challenges and threats, improving the financial and resource provision and the financial and economic condition of small business entities, ensuring the development and capitalization of this sector of the economy. New challenges and threats to the financial security of small business entities of Ukraine in the conditions of wartime have been identified, namely, a decrease in the solvent demand of the population, a narrowing of the capacity of domestic demand for consumer goods and services and a reduction in income, an increase in the cost of resources, an increase in the cost price and a decrease in the level of economic profitability, difficulties with logistics and transportation of goods, etc. It has been proven that the achievement of this goal will be facilitated by the implementation of a system of strategic priorities, namely: improving the financial and credit support of small businesses; formation of a system of investment support for development projects of small business entities; expansion of monetary and lending opportunities; de-shadowing of the capital of small business entities and restructuring of their debt obligations; small business effectivization through the growth of the sector of innovative and technologically active entrepreneurship; implementing the potential of the insurance sector in mitigating the financial risks of small business entities.
Internal migration caused by the war of russia against Ukraine (with the active phase starting in February 2022) has increased the socio-economic burden on the host communities welcoming internally ...displaced population from the frontline and occupied territories. On the other hand, it intensifies behavioral reflections of local residents on the integration of internally displaced persons (IDPs). The study aims to identify opportunities, challenges, and prospects for IDPs’ adaptation in host communities (a case study of Lviv oblast, Ukraine). The paper conducted a sociological survey among 2,500 respondents in November 2022–February 2023. The results show that the lack of housing, lack of permanent employment, language contradictions, and forced limited contact with relatives who remain in the combat zone are existential barriers to the integration of IDPs into host communities. The study identified such opportunities for the integration of IDPs into the host society: reducing the risk of depopulation of territories, reducing imbalances in the local labor market in certain sectors of the economy, strengthening social cohesion, developing small businesses, and improving social infrastructure. The respective challenges include increased social tension, competition for jobs and housing, shortage of places in preschool institutions, and disproportionate distribution of budget funds between the local population and IDPs. Conflicts between IDPs and local residents, as well as IDPs and local authorities, require a proactive position of local authorities to initiate psychological support programs and create communication platforms for the exchange of individual experiences and discussion of psychological and emotional issues.
In current conditions, budget security is one of the essential components of financial security. The budget is the leading financial plan of the state and reflects most of the economic processes in ...the country; it also redistributes and accumulates revenues, provides financing of vital costs. Proper use of the budget as a financial basis for state regulation of a market economy should ensure the rule of economic and social processes in the interests of society to create conditions for the economic development of the country. Оn the one hand, and Budget security reflects the regularities of the functioning of the budget as an objective reality and, on the other hand, the subjective manifestations of human activity that find their expression in fiscal policy.The article aims to substantiate budget security's theoretical and conceptual basis at the regional and local levels.The article examines the theoretical essence of budget security at the regional and local levels. First, scientific approaches to the definition of "budget security" are generalized. Second, budget risks are considered, which under the influence of certain factors can be transformed into threats to budget security (discrete control; insolvency of taxpayers; political, military actions; destabilization of the financial sector of the region/communities; imbalance of revenues and expenditures; structure of revenues and expenses; external dependence violation of the stability of payments, debt growth (internal/external), stochastic errors, corrupt growth of the shadow sector, irrational budgeting). Third, the theoretical conceptualization of the concept of "threat", their essence and characteristics are substantiated. Fourth, understanding the nature of the concept of "budget risk" and "threat to budget security" is investigated. Finally, the functions and tasks that the budget security of territories should perform in the conditions of increasing financial and economic instability are considered.Coverage of the theoretical and conceptual basis of budget security of regions and communities, specification of existing and potential factors and risks of budget security, functions and tasks of budget security will minimize and neutralize various aspects and threats in budget security and increase budget security at regional and local levels and achieve important strategic guidelines.
Financial resilience is the basis of economic development as it determines the ability of the financial system to efficiently perform its functions and ensure optimal resource allocation and the ...normal course of economic processes under the impact of macroeconomic shocks and endogenous risks. The article aims to assess financial resilience as a systemic component of ensuring the economic development of Ukrainian regions. The research methods include systemic and structural analysis (building an information and analytical model for studying financial resilience), clustering (grouping regions by the criterion of economic development), and risk theory and analysis of variance (identifying potential zones of financial resilience and its components). Data from the regions (oblasts) of Ukraine for 2015–2021 serve as the information and analytical basis of the study. The article reveals that in 2021 regions with better financial resilience (Zhytomyrska, Dnipropetrovska, Kyivska, Lvivska, Odeska, Kharkivska, Cherkaska, and Volynska oblasts) take leading positions in terms of economic development and more efficient use of exogenous and endogenous financial resources than the regions with low financial resilience (Chernivetska, Vinnytska, Khmelnytska, Donetska, Ternopilska, and Ivano-Frankivska oblasts). The study proves that enhancing financial resilience is a trigger and foundation for ensuring economic growth in the regions, especially amid macroeconomic shocks. Balancing the need to use financial resources to restore the economy (growth of production, consumption, and employment) while reducing the dependence of regional economies on external financial sources should become the main vector of policy to ensure the financial resilience of Ukrainian regions.
AcknowledgmentsThe study was conducted within the framework of the “Financial Determinants of Ensuring Economic Growth of Regions and Territorial Communities based on Behavioral Economics” project (No. 2020.02/0215) funded by the National Research Foundation of Ukraine (Competition “Support for Research of Leading and Young Scientists”).
In instability and economic turbulence, the wellbeing of households as market economy entities constitutes the financial-investment capacity of a region, the level of which is determined by the ...conditions of the competitive socio-economic environment. The paper aims to estimate the financial wellbeing of households on the example of the oblasts of the Carpathian region of Ukraine in instability. The study is based on a system-integral estimation method, which includes the implementation of three stages: (1) development of a system of indicators, (2) determination and substantiation of weight significance, and (3) construction of time series of empirical parameters of households’ wellbeing based on temporal and spatial approaches. The analysis reveals that the financial wellbeing of households differentiates in a competitive economic environment and with the spread of behavioral factors (COVID-19, consumer reflections). Among the oblasts of the Carpathian region of Ukraine, the highest values of empirical parameters of financial wellbeing were in Zakarpatska (0.537) and Chernivetska (0.459) oblasts (2019). Meanwhile, the level of the financial wellbeing of households is higher in Lvivska oblast by several indicators. The divergence of the Carpathian region from Ukraine by the level of the financial wellbeing of households was mostly observed in 2018–2019. Zakarpatska oblast was the leader by the level of the financial wellbeing of households in 2010–2019. The study is of the practical nature for framing the regional economic policy in terms of detecting the critical “pressure” of financial wellbeing on the economic growth of the region and economic ability to increase investment capacity.
AcknowledgmentsThe study has been conducted within the framework of the Applied Research “Financial determinants of the provision of economic growth in the regions and territorial communities based on behavioural economy” with the support of the National Research Foundation of Ukraine (M. Dolishniy Institute of Regional Research of the National Academy of Sciences of Ukraine, the grant Reg. No. 2020.02/0215, 2020–2022).
Purpose. The article aims to evaluate the level of financial self-sufficiency of territorial communities in terms of ensuring their sustainable development.
Methodology / approach. An approach that ...involves the consequent implementation of compositional, empirical, and taxonomic stages based on the calculation of empirical parameters (based on the structural-spatial approach using the linear weighting) of structural levels (revenue and expenditure components) of financial self-sufficiency for the city, town, and village communities was developed to achieve the set objective. The general level of financial self-sufficiency is calculated based on the integral approach. The communities are ranged by the criterion of the efficiency maximization in the management of financial resources to achieve economic development.
Results. The results of the evaluation for 73 communities showed that city territorial communities in Lvivska oblast had high (Lvivska) and moderate (Stryiska, Pustomytivska, Horodotska, Sudovovyshnyanska, Chervonohradska, Sambirska, and Kamyanko-Buzka) levels of financial self-sufficiency in 2021, so they were able to secure sustainable economic growth. The article reveals that 75 % of town communities had low levels of financial self-sufficiency (from 0.218 to 0.372), which is the consequence of weak fiscal capacity and, thus, low financial independence and high budget subsidiarity. Sokilnytska (0.788) and Solonkivska (0.637) village communities showed positively high results and 33 % had a moderate level of revenue component of financial self-sufficiency (from 0.414 to 0.553). The situation is triggered by their close location to the oblast center and sufficient fiscal independence. The ranking of communities by the criterion of the efficiency maximization in the management of financial resources revealed four groups. The group with a moderate level (45 communities) is the largest.
Originality / scientific novelty. The article develops a scientific and practical approach to the evaluation of self-sufficiency of territorial communities. Unlike others, it provides the combined (integral) evaluation of the significance of the components of territorial communities’ financial self-sufficiency and allows the detection of the complementary impact of financial self-sufficiency on ensuring sustainable economic development of the territory.
Practical value / implications. The article offers a set of tools to evaluate financial self-sufficiency of territorial communities. Their application by local governments will serve as the informational-analytical basis for the elaboration of measures to strengthen the capacity and self-sufficiency of territorial communities with modernizing the existing strategies or developing the territorial economic growth (or recovery) programs. The application of the methodological approach makes it possible to identify budget planning deficiencies timely and improve the efficiency of the use of financial resources of local self-government bodies.
An essential determinant of the economic growth of regions and amalgamated hromada is budgetary security, the weakening of which causes the strengthening of financial imbalances of territories and ...the emergence of budget risks and threats in different time lags. The paper aims to assess budgetary security of regions and amalgamated hromada in Ukraine in an unstable economy. The assessment of budgetary security and risks of areas and amalgamated hromada is carried out based on a multidimensional statistical analysis of budget indicators, calculation of the aggregate indicator of budget risks, and the level of budgetary security by a multiplicative method. The study sample included the regions of Ukraine and 22 amalgamated hromada in terms of cities of regional significance, urban, township, and rural territorial assemblies, which are represented by different areas in Ukraine. According to the assessment, Poltava, Kyiv, Zaporizhzhia, Dnipropetrovsk, and Mykolaiv oblasts are characterized by a low level of budget risks, which indicates high budget stability. On the other hand, the strengthening of budget imbalances, deterioration of the strength of local budgets, in particular in 2019–2020 in urban amalgamated hromada (Druzhbivska and Malovyskivska (6-8 points)); in village areas (Malynivska (5 points), Steblivska (7-7 points)); in rural amalgamated hromada (Chmyrivska (8-7 points)). The study results can serve as an analytical basis in the practice of local governments in the development and justification of regional and local budget policies, the nature of inter-budgetary relations, the formation of regional development strategies, etc.
AcknowledgmentsThe study has been conducted within the framework of Applied Research “Financial determinants of the provision of economic growth in the regions and Amalgamated hromada based on the behavioral economy” with the support of the National Research Foundation of Ukraine (M. Dolishniy Institute of Regional Research of National Academy of Sciences of Ukraine, the Grant Reg. No. 2020.02/0215, 2020–2022).
The level of positive migration aspirations of the population is determined by the unfavorable socio-economic environment and ineffective management of territory development, in particular the level ...of deprivation, including labor, security and living conditions. The paper aims to assess the impact of different components of deprivation on the spread of migration aspirations and create the landscape of a territory migration capacity. The methodological tool of the study is a sociological survey (a case study of Lviv Oblast, Ukraine) using a questionnaire (self-administration), which covered more than 500 people. Processing of results is carried out using SPSS software. The results of the sociological survey across migration vectors show the cause-effect relation between positive external aspirations and deprivation components. According to the assessment, the EU countries vector (72.0%) has the highest level of positive migration aspirations by income deprivation, and domestic migration vector – the lowest level (41.0%). The highest deprivation levels among socio-economic, environmental, and medical-demographical conditions for ineffective management of Lviv Oblast was detected for educational services with the level of 3.6 out of 5 possible, moderate level – for living and environmental conditions (2.9 each), and the lowest one for medical services (2.7). The spread of deprivation components at the territory according to the level of positive migration aspirations analysis shown that the highest deprivation levels in Lviv Oblast are peculiar to components such as the quality of medical services (43.4%), income (36.5%), and living conditions (35.1%). This study is of practical value for forming landscape of territory migration capacity including weighed migration aspirations and socio-economic deprivation levels.
AcknowledgmentsThe study has been conducted within the framework of Applied Research “Financial determinants of the provision of economic growth in the regions and territorial communities based on behavioral economy” with the support of the National Research Foundation of Ukraine (M. Dolishniy Institute of Regional Research of National Academy of Sciences of Ukraine, the grant Reg. No. 2020.02/0215, 2020-2022).
The financial self-sufficiency of communities determines their ability to create additional jobs, attract investment resources, offer quality social services, and improve the population’s living ...standards and well-being. The study aims to identify the casual relationships between financial self-sufficiency and local economic development of Ukrainian territorial communities during economic instability. The paper used integrated assessment based on a spatial approach (identifying the level of local economic development), indicative method (calculating empirical values of financial self-sufficiency of communities), VEC model (analyzing the sensitivity of local economic development to changes in financial self-sufficiency), balanced multi-component regression method (modeling the relationship between local economic development and financial self-sufficiency). Data were gathered on all territorial communities of Ukraine in 2021. The results show that the highest level of local economic development was observed in Dnipropetrovsk oblast (empirical coefficient equal to 0.855), high levels in Kharkiv, Zaporizhzhia, Odesa, Kyiv, and Poltava oblasts (0.787; 0.687; 0.684; 0.663 each, respectively), and moderate levels in Zakarpattia (0.448) and Kirovohrad (0.433) oblasts. With increased financial self-sufficiency, local economic development can exceed 2%; a 1% increase in the decentralization of tax revenues and expenditures simultaneously leads to an increase in the attractiveness of the investment climate as an indicator of local economic development (2.3-6.6%). The study proves that the territorial communities of the regions characterized by a low level of local economic development demonstrated higher values of decentralization of interbudgetary revenues than those with higher values of local economic development.
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