DECENTRALIZED MANAGEMENT OF INTERNATIONAL RESOURCES FOR ECONOMIC REFORM

Abstract

A reform of decentralization of the system of governance in Ukraine has been started. The reform provides for effective local self-government and significant strengthening of managerial and financial viability of local administrations. Present experience of successful economies suggests that compliance with laws, among other things, should lead to the formation of economic levers through fair payment of taxes in the state. International financial resources (IFRs) act as an important development instrument, which promotes institutional reforms in the recipient country, development of key sectors of the economy, reform of legislation and other market reforms, thus creating the basis for the inflow of investment capital and further interaction with the global economy. The EU-Ukraine Association Agreement provided an opportunity to cooperate in the field of IFRs attraction for economic reforms by introducing a decentralized implementation system (DIS) of international resources, as it has been done in Poland and many other countries that had joined or are planning to join the EU. The main idea of the DIS is to transfer obligations and responsibilities for contracts from the EU Delegation to beneficiary, whereas overall responsibility and control of the results of the programs implementation remain with the EU. The primary responsibility for obtaining and using resources will belong not to the donors but to a recipient country, which by itself will plan needs for external resources and develop plans how to attract and use these funds in coordination with donors.