Institutional framework for funding the development of territorial communities during crisis

Serhii Bychkov and Vitalii Soroka
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Serhii Bychkov: Chernihiv Polytechnic National University
Vitalii Soroka: Chernihiv Polytechnic National University

Economic Synergy, 2024, issue 1, 136-153

Abstract: This article delves into the critical importance of developing and implementing comprehensive approaches to institutional funding for the development of territorial communities in Ukraine, particularly in the context of crisis conditions exacerbated by wartime. It highlights the profound impact of military actions on the economic stability of territories, emphasizing the necessity for a robust institutional foundation capable of efficiently managing limited resources, attracting investments, and coordinating aid across various levels—from local to international. Strengthening institutional support is presented as a pivotal strategy for enhancing the resilience and adaptability of territorial communities, ensuring the continuation of essential services, and planning and implementing recovery and development strategies post-crisis. This encompasses the initiation of programs focused on infrastructure restoration, support for small and medium-sized enterprises (SMEs), job creation, and investments in education and health care. The article meticulously examines existing mechanisms and strategies that could foster community resilience and adaptability, advocating for the reinforcement of the institutional base to effectively manage resources, attract investments, and coordinate assistance. Various tools such as financial leasing, outsourcing, the creation of industrial parks, activation of local economic development agencies, business incubators, cooperatives, and social entrepreneurship are explored for their potential to enhance resource utilization efficiency and investment attraction. Special attention is given to the transparency and efficiency of funds usage, particularly international aid, to maintain donor trust and secure additional investments for the country's recovery. The research findings underscore the significance of crisis and development tools for local economic development in ensuring community resilience and growth. Recommendations are made for their effective implementation, pointing to the need for further research to develop adapted support mechanisms considering the Ukrainian context and challenges faced by the country in times of war and economic instability. The application of these research outcomes could contribute to formulating an effective crisis management strategy and building a resilient Ukrainian economy, ensuring the sustainable development and prosperity of territorial communities.

Keywords: financing; institutional support; territorial communities; crisis (search for similar items in EconPapers)
JEL-codes: H7 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2024:i:1:p:136-153

DOI: 10.53920/ES-2024-1-10

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