MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE Donetsk State University of Management (Ukraine) University of Economics and Humanities (Poland)

PUBLIC ADMINISTRATION

FOR SUSTAINABLE DEVELOPMENT

Collective monograph

Mariupol- Bielsko-Biała, 2018

Recommended for publication by the Academic Council of Donetsk State University of Management, Mariupol, Ukraine (Protocol number 2/3 from 19.10.2018) and

the Publishing Board of University of Economics and Humanities, Bielsko-Biała, Poland (WSEH/313/10/18 from 10.10.2018)

Scientific Editors:

Chechel Anna, Doctor of Economic Sciences, Associate Professor, Head of the Department of Public Administration and Management of the Donetsk State University of Management of Ministry of Education and Science of Ukraine

Khlobystov Ievgen, Doctor of Economics Sciences, Professor of the University of Economics and Humanities (Bielsko-Biala, Poland)

Reviewers:

Illiashenko Serhii, Doctor of Economics, Professor, Head of the Department of Marketing and Management of Innovative Activity, Sumy State University (Ukraine); Professor of University of Economic and Humanities (Poland);

Gornyk Volodymyr, Doctor of Sciences in Public Administration, Associate Professor, Director of the Educational and Scientific Institute of Management, Economics and Nature Management of Taurida National V.I. Vernadsky University (Ukraine)

Marova Svitlana, Doctor of Sciences in Public Administration, Professor, Head of the Department of Environmental Protection Management of Donetsk State University of Management (Ukraine)

P 57 Public Administration for Sustainable Development. Collective monograph / The general ed. Chechel A., Khlobystov Ie. Bielsko-Biała: University of Economics and Humanities, 2018. 8 p.

ISBN 978-83-63649-13-5

The monograph examines the features and prospects for the formation of conditions for sustainable development on the territories under conditions of decentralization in Ukraine as well as the development of theoretical provisions, scientific methodological and practical recommendations to improve the mechanisms of public administration and effective social and ecological policy.

The perspective directions of development of state and municipal government support are defined as factors to improve the processes of interaction between state government, local authorities, business structures and the public in addressing the problems of regional development in the conditions of decentralization.

The monograph is designed for scientists, graduate students and undergraduates who are researching these above-mentioned problems in the Public Administration scientific sphere. UDC 504.06:622

© Donetsk State University of Management, Mariupol, 2018 ISBN 978-83-63649-13-5 © University of Economics and Humanities, Bielsko-Biała, 2018

3

CONTENT

PREFACE 6

SECTION 1 PUBLIC ADMINISTRATION’S TOOLS IN LOCAL POLICY OF SUSTAINABLE DEVELOPMENT

11

1.1 THE INITIAL PREREQUISITES FOR FORMATION A REGIONAL INNOVATION POLICY AND ITS MECHANISMS Burduli Vakhtang, Abesadze Ramaz, Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics, Tbilisi, Georgia

12

1.2 TRANSFORMATIONAL POTENTIAL OF THE INSTITUTIONAL FRAMES OF LOCAL SELF-GOVERNMENT ADMINISTRATION Barantseva Karina, Lodz University of Technology, Independent Analyst in European Studies, Lodz, Poland

31

1.3 THE ACTIVITY OF LOCAL COMMUNITIES AS THE CONDITIONS OF CREATION OF SUSTAINABLE TERRITORIAL DEVELOPMENT Chechel Anna, Tarasenko Olena, Donetsk State University of Management, Mariupol, Ukraine

45

1.4 SOCIAL COMPONENT OF SUSTAINABLE DEVELOPMENT IN LOCAL ENVIRONMENTAL POLICY Tarasenko Denys, Donetsk State University of Management , Mariupol, Ukraine; Sukhova Кseniia , Executive Bodies of the Mariupol City Council, Mariupol, Ukraine

63

1.5 THE METHODOLOGY OF THE AUTHORITATIVE POWERS INDEX ANALYSIS (ON THE EXAMPLE OF THE HEAD OF THE STATE AUTHORITY) Zelinskaya Maryna, Donesk State University of Management, Mariupol, Ukraine; Kochurin Oleksandr, Executive Bodies of the Mariupol City Council, Mariupol, Ukraine

71

SECTION 2 FEATURES OF RESOURCE MANAGEMENT IN PUBLIC ADMINISTRATION FOR SUSTAINABLE DEVELOPMENT

84

2.1 THE METHODICAL ISSUES OF CITIES ECONOMIC DEVELOPMENT MANAGEMENT IN DONETSK REGION Chernysh Olena, Chernyshov Oleksandr, Tanchyk Olena, Donetsk State University of Management, Mariupol, Ukraine

85

2.2 NAFTOGAZ V GAZPROM: RUSSIA’S WEAPONIZATION OF ENERGY Kamensky Dmitro, Berdyansk State Pedagogical University, Berdyansk, Ukraine; Sullivan Julia, Annapolis, MD, USA

101

4

2.3 WATER RESOURCES INTEGRATED GOVERNANCE IN UKRAINE IN CONDITIONS OF SUSTAINABLE DEVELOPMENT Orlova Nataliia, Kyiv National University of trade and economics, Kyiv, Ukraine

114

2.4 SOCIO-ECONOMIC INSTRUMENTS FOR SUSTAINABLE DEVELOPMENT OF TOURISM Stoyka Andriy, Lavreshov Andriy, Horiunova Kateryna, Donetsk State University of Management, Mariupol, Ukraine

126

SECTION 3 THE SCIENTIFIC, METHODICAL AND EDUCATION SUPPORT FOR

PUBLIC ADMINISTRATION IN CRIATOIN PROCESS OF SUSTAINABLE DEVELOPMENT CONDITIONS

142

3.1 THE CREATION OF FULL-FLEDGED MANAGEMENT SYSTEMS FOR THE FULL-FLEDGED LIFE-SUSTAINING ACTIVITY SYSTEM FORMATION IN UKRAINIAN SOCIETY Komar Yuriy, Tanchyk Olena, Donetsk State University of Management, Mariupol, Ukraine; Dubas Rostyslav, University "Ukraine", Kyiv, Ukraine

143

3.2 THE SELF-MANAGEMENT THEORETICAL AND METHODICAL FOUNDATIONS OF MANAGEMENT MAJOR STUDENTS’ PROFESSIONAL TRAINING Komar Viktor, ITOUR Travel Company, Kyiv, Ukraine

155

3.3 STATE ADMINISTRATION: ISSUES OF THEORY AND PRACTICE ORGANIZATION OF THE SCIENTIFIC AND METHODICAL SUPPORT FOR THE IMPLEMENTATION OF "THE NEW UKRAINIAN SCHOOL CONCEPT" AT THE LEVEL OF THE MANAGEMENT OF ACTIVITIES OF GENERAL SECONDARY EDUCATION INSTITUTIONS Marusina Larisa, Central Institute of Postgraduate Pedagogical Education State Higher Educational Institution “University of Educational Management” National Academy of Educational Sciences of Ukraine, Kyiv, Ukraine; Loginov Andriy, Department of Education in the Zolotonosha District State Administration, Cherkassy region, Ukraine

176

3.4 MANAGING INNOVATIVE ACTIVITIES OF EDUCATIONALISTS AS A SUSTAINABLE DEVELOPMENT FACTOR Kharahirlo Vira, Bilotserkivskyi Institute of Continuous Education, Bila Tserkva, Ukraine

190

3.5 PUBLIC ADMINISTRATION INCLUSIVE DEVELOPMENT OF ATC: SUPPORTING TOOLS UNDER THE CONDITIONS OF SUSTAINABLE DEVELOPMENT Gudz Petro, Pulina Tetyana, Zaporozhye National Technical University, Zaporozhye, Ukraine

206

5

SECTION 4 INTERNATIONAL EXPERIENCE AND COOPERATION PROSPECTS

FOR SUSTAINABLE DEVELOPMENT

229

4.1 THE INTRODUCTION OF PUBLIC ADMINISTRATION TOOLS IN THE COUNTRIES OF THE EUROPEAN UNION AND THEIR IMPLEMENTATION IN UKRAINE Nykolaieva Valentyna, Donetsk State University of Management, Mariupol, Ukraine

230

4.2 THE MECHANISMS IMPROVEMENT OF THE UKRAINIAN STATE MIGRATION SERVICE INTERACTION WITH THE STATE AND LOCAL GOVERNMENT AUTHORITY AGAINST NON-LEGAL MIGRATION AS A NATIONAL SECURITY POTENTIAL THREAT Tkachova Nataliya, Martyanova Ruslana, Khmelnytsky University of Management and Law, Khmelnytsky, Ukraine

242

4.3 THEORETICAL AND METHODOLOGICAL BACKGROUND FOR SUSTAINABLE TERRITORIAL DEVELOPMENT (CASE OF HIGHER EDUCATION DRIVERS) Michał Śleziak, University of Economics and Humanities, Bielsko-Biala, Poland

260

6

Dear readers!

We are pleased to present you a joint research and publishing project of the Donetsk State University of Management, now located in the city of Mariupol (Ukraine), and the Higher School of Economics and Humanities from the Silesian city of Bielsko-Biala, Poland.

The basis of the proposed research is the issue of local self-government and state administration of territorial development for the formation of sustainable self-sufficient communities. The volume includes the findings of explorations of the definition of state administration tools for the local sustainable development policy, in particular, regarding the formation of a regional innovation policy and mechanisms for its implementation to the practical level.

The particular attention is drawn to the analysis of the transformational potential of self-government institutions and the activities of communities for sustainable development of the territories, as well as the problems of the social component of the development of local environmental policy. One prominent part of the research focuses on the peculiarities of resource management in public administration. Among the most interesting findings are the results of methodological researches of city development in the Donetsk region and the peculiarities of public administration in the field of tourism.

A separate part of the monograph is devoted to the study of sustainable relations in the system of education and staff development, in particular through training processes and educational projects. The special attention is drawn to the study the role of universities as drivers of the sustainable development of the city and the initiation of international projects, in particular regarding the regulation of migration processes and the approximation of Ukraine to the EU within the framework of public-private partnership and local initiatives.

The authors of this monograph are scholars and practitioners from different countries, including Georgia, Republic of Poland, Ukraine and United States of Ameriсa:

7

Abesadze Ramaz

Doctor of Economic Sciences, Professor, Director Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics, Tbilisi, Georgia

P.1.1

Burduli Vakhtang

Doctor of Economic Sciences, Chief Researcher, Head of the Department of Sector and Regional Economics in Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics, Tbilisi, Georgia

P.1.1

Barantseva Karina

PhD of Philosophy, Associate Professor, Senior Specialist of the Projects Office, Lodz University of Technology, Independent Analyst in European Studies

P.1.2

Chechel Anna

Doctor of Economic Sciences, Associate Professor, Head of the Department of Public Administration and Management of the Donetsk State University of Management, Mariupol, Ukraine

P.1.3

Tarasenko Olena

PhD in Economics, Senior Lecturer at the Department of Finance, Accounting and Auditing in Donetsk State University of Management, Mariupol, Ukraine

P.1.3

Tarasenko Denys

PhD in Public Administration, Associate Professor, Dean of the Faculty of Law and Social Management Donetsk State University of Management, Mariupol, Ukraine

P.1.4

Sukhova Кseniia

Deputy Mayor of the City on the Issues of the Executive Bodies of the Mariupol City Council, Mariupol, Ukraine

P. 1.4

Zelinskaya Maryna

PhD of Political Sciences, Associate Professor, Department of Public Administration and Administration in Donetsk State University of Management, Mariupol, Ukraine / University of Economics and Humanities, Bielsko-Biala, Poland

P.1.5

8

Kochurin Oleksandr

Deputy Mayor of the City on the Issues of the Executive Bodies of the Mariupol City Council, Mariupol, Ukraine

P. 1.5

Chernysh Olena

Doctor of Public Administration, Professor, Head of the Department of Production and Non-production Management in Donetsk State University of Management, Mariupol, Ukraine

P.2.1

Chernyshov Oleksandr

PhD of Economic Sciences, Professor, Associate Professor of the Department of Production and Non-production Management in Donetsk State University of Management, Mariupol, Ukraine

P.2.1

Tanchyk Olena

PhD in Economics, Head of the Department of Foreign Languages, Donetsk State University of Management, Mariupol, Ukraine

P.2.1, 3.1

Kamensky Dmitro

PhD in Law, associate professor, head of law department at Berdyansk State Pedagogical University, Berdyansk, Ukraine

P.2.2

Sullivan Julia Practicing attorney and energy law expert, Annapolis, MD, USA

P.2.2

Orlova Nataliia

Doctor of Sciences in Public Administration, Professor of the Department of Public Management and Administration, Kyiv National University of trade and economics, Kyiv, Ukraine

P.2.3

Stoyka Andriy

Doctor of Public Administration, Professor, Head of Department of Tourism and Logistics in Donetsk State University of Management, Mariupol, Ukraine

P.2.4

Lavreshov Andriy

PhD of Public Administration, Honored Economist of Ukraine

P.2.4

Horiunova Kateryna

Senior Lecturer of the Department of Tourism and Logistics in Donetsk State University of Management, Mariupol, Ukraine, Donetsk State University of Management, Mariupol, Ukraine.

P.2.4

9

Komar Yuriy

Doctor of Public Administration, Professor, Professor of the Department of Production and Non-production Management in Donetsk State University of Management, Mariupol, Ukraine

P.3.1

Dubas Rostyslav

PhD of Economic Sciences, Associate Professor, Head of the Department of Management in the University «Ukraine», Kyiv, Ukraine

P.3.1

Komar Viktor

Master in Economics and Management, Manager of «ITOUR» Travel Company, Kiev, Ukraine

P.3.2

Loginov Andriy

Leading Specialist at the Department of Education in the Zolotonosha District State Administration, Cherkassy region, Ukraine

P.3.3

Marusina Larisa

Post-graduate Student of the Public Service and Educational Management Department of the Central Institute of Postgraduate Pedagogical Education State Higher Educational Institution “University of Educational Management” National Academy of Educational Sciences of Ukraine, Kyiv, Ukraine

P.3.3

Kharahirlo Vira

Head of the Department of Pedagogy, Psychology and Management of Bilotserkivskyi Institute of Continuous Education, Bila Tserkva, Ukraine

P.3.4

Gudz Petro

Doctor of Economics, Professor, Director of the Economics and Humanities Institute, Zaporozhye National Technical University, Zaporozhye, Ukraine

P.3.5

Pulina Tetyana

Doctor of Economics, Professor Head of the Management Department, Zaporozhye National Technical University, Zaporozhye, Ukraine

P.3.5

Nykolaieva Valentyna

PhD in Pedagogical Sciences, Associate Professor of the Department of Sociology Management, Donetsk State University of Management, Mariupol, Ukraine

P.4.1

10

Tkachova Nataliya

Doctor of Sciences in Public Administration, professor, the Head of the Department of Public Management and Administration, Khmelnytsky University of Management and Law, Khmelnytsky, Ukraine

P.4.2

Martyanova Ruslana

Ph.D. candidate of the Department of Public Management and Administration, Khmelnytsky University of Management and Law, the Head of the Sector for the Illegal Migration, Readmission and Deportation Prevention of the SMS of Ukraine in Khmelnytsky oblast, Ukraine

P.4.2

Śleziak Michał

Master of Economics, University of Economics and Humanities, Bielsko-Biala, Poland

P.4.3

We hope that the proposed collective monograph will be useful to a wide range of readers interested in state regulation of sustainable development and regional socio-economic studies.

We express our deep gratitude to all authors of the monograph for summarizing the research, as well as to the leadership of the Higher School of Economics and Humanities, Mr. Jerzy Decz and Mr. Michał Słozak, for the support of this publication.

The monograph contains the results of scientific-research of topic № 0118U001700 «Public Administration for Sustainable Territorial Development» at Donetsk State University of Management, Mariupol city, Ukraine.

With best regards,

Dr. Anna Chechel,

Dr. Ievgen Khlobystov,

Scientific Editors

11

SECTION 1

PUBLIC ADMINISTRATION’S TOOLS IN LOCAL POLICY OF SUSTAINABLE

DEVELOPMENT

12

1.1. THE INITIAL PREREQUISITES FOR FORMATION A REGIONAL INNOVATION POLICY AND ITS MECHANISMS1

Coordination (strategy, regulatory instruments) of the regional in-

novation policy takes place at the national, regional and international levels. At the same time, this process is carried out in the conditions by co-ordinating interaction between the instruments for industrial (i.e., sectoral, structural), social and innovative policies. However, these mechanisms at all levels have become absolutely overtimed, and more or less successfully prepared for reforming. The scientific aim of that subsection was systematically explored, it was based on the examplary experience of reforming these mechanisms in some countries, and international level by the EU, that has the modern mechanisms for coordinating regional innovation policy. Taking into account the practice of successful experience of developed countries in the process of reforming these mechanisms by coordination regional, national and innovative policies, these three levels will contribute formation of reliable mechanisms for such coordination in all post-Soviet countries, including Georgia.

The main goal of this sub-section is to stucturing and considering together, into one inter-related tool of all these levels: (national, regional and international) by using the regional innovative policy and its mechanisms. The main task of that process is realized in the formation of two sub-goals: formulation and justification of the initial prerequisites for formation regional innovative policy in the terms of using these three levels for coordination,consideration and structuring them into real mechanisms of national, regional, industrial and innovative policies in two countries which have a successful experience in the process of their reforms, these countries are France and South Korea.

As it is known, the structural policy of the state is divided into sectoral and structural (in other words it’s called industrial) and regional policy.

1 The authors of subsection: Burduli Vakhtang, Doctor of Economic Sciences, Chief Researcher, Head of the Department of Sector and Regional Economics in Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics, Tbilisi, Georgia; Abesadze Ramaz, Doctor of Economic Sciences, Professor, Director Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics, Tbilisi, Georgia

13

15-20 years ago, in the developed countries, the closely related technological and innovative policies1 had been separated from the sectoral and structural policy in one way and/or another. In the same way, regional innovative policy had been singled out from the regional economic policy.

In order to develop an effective regional inovative policy for concrete country and to formulate the effective mechanisms (elements of the NIS, strategies, instruments) for their implementing it is necessary to take into account a number of circumstances arising from previous experience of developed countries (not only the EU countries, but also some other states where regional development strategies also had been successfully developed).

1. In the EU countries, there are three levels of regional innovative policy and mechanisms for its implementation: the EU level (or international), national and regional levels. So N. Shelyubskaya notes that in recent years these three levels of formation the regional innovative policy (the policy which was implemented by the regions, themselves, a regional component of the national (state) innovation policy and multinational policy of the EU) are increasingly inter-twined2. The mechanisms of regional innovative development operate in the EU states through following levels: at the pan-European level – through Structural Funds, the Framework Programs for Scientific and Technological Development; at the national level – through institutions which offer the innovative system; at the regional level, by strengthening the influence of local authorities on the innovative development of concrete territories, including the instruments of European politics3. Moreover, the state plays a leading role in the development of strategies and using of all these 1 Белов В. Б., Баранова К. К. Промышленная политика в Германии. В сборнике: Промышленная политика европейских стран (Институт Европы РАН). М., 2010. – Электронный ресурс: ieras.ru/doclad/259/259-1%20(1).doc 2 Шелюбская Н. В. Конвергенция европейского научно-технического и инновационного развития. – В сб.: Глобальная трансформация инновационных систем. Под ред. Н.И.Ивановой, М., ИМЭМО РАН, 2010. – Электронный ресурс: http://www.imemo.ru/files/File/ru/publ/2010/10022.pdf P. 60. 3 Богдан Н. И. Проблемы региональной инновационной политики: опыт европейских стран и специфика Беларуси. – Белорусский экономический журнал, 2006, №1. Электронный ресурс: http://edoc.bseu.by:8080/bitstream/edoc/3841/1/-Bogdan%20N%20Problemy..pdf P. 57.

14

instruments, the role of the EU is growing up more and more during the last decades (for example, in the area of financing and pan-European coordination of innovative activity in the regions), and regional governments, themselves, (with exception of some federal countries, primarily they are the USA, Canada and Germany) there are no other opportunities to contribute in any significant way (financially, tax preferences or creation the private-public partnership) the implementation of these strategies that are being developed fully in the national level, but, at first, it had been created in the regional one, of course. However, the concrete elements of NIS infrastructure also are mainly formed in the regional level.

2. As it was noted above, the regional innovative policy has been allocated 15-20 years ago. It happened into all these levels. It should be also noted that the instruments of regional coordination at the EU level are more aimed through financing the infrastructural projects with are focused on leveling the level of development in the concrete regions in the EU countries, but an increasing attention is also paid to the innovative development of these regions (particularly by the European Regional Development Fund, from year to year a large share of that fund is allocated for research and innovation). However, in spite of the fact that "the degree of internationalization of research and development is increasing under modern conditions, the innovative mechanisms for development of the EU economy remains essentially national mood"1. The main stakeholder for innovative development of regions in all EU countries is state (or national) support (financial, fiscal preferences) in accordance with this strategy which is developed by the concrete states (however, the regional authorities also actively participate in the process for development strategy of innovative policy). The possibilities for regional governments to be more active in the process of developing and supporting the implementation of this policy is limited (with exception of some federal states like the USA, Canada, Germany). In the EU, at all these levels (the EU, itself, national, regional), this work has been continuing to deepen the

1 Смирнов Е. Н. Инновационный механизм развития экономики Европейского союза. Автореферат на соискание ученой степени д. э. н. М.: 2016. Электронный ресурс: https://guu.ru/files/dissertations/2015/10/smirnov_e_n/autoreferat.pdf P. 24.

15

coordination of regional and innovative policy. This issue was successfully resolved in France on the basis of creating "the poles of competitiveness”.

Although Georgia certainly does not belong to the EU, we consider that it is necessary to cite that example, since it has developed a successful mechanisms for coordinating regional, structural (or industrial) sectors and innovative policies which are based on the `4+ 9’ paragraphs.

3. In recent years, the Euro-Atlantic model of NIS has been divided into four separate models (Continental, Anglo-Saxon, Northern European and Southern European) which have already been explored in the economic literature. The most developed and competitive between them is the Nordic or Northern European (Scandinavian countries) and the Continental (France), the NIS is the weakest in the Southern European (Italy). The effectiveness of NIS in the EU countries is determined not only by the indicators of their development at the level of a concrete country and/or the EU level as a whole, but is also indicated by their participation into international innovative clusters1.

4. The difference between national innovative policy and the same policy of private sector is proper. So one of the last fundamental works in the field of research about innovation policy has made by P.S. Seleznev who is focused, mainly, on the state innovation policy2. Naturally, the instruments of state inovatiion policy are applied to a large extent to private business, although the innovative activities of the small and medium enterprises are supportive, "the transnational corporations of the EU countries that continue to being the main players in this process and they use the EU fundings for innovative purposes more and more actively"3.

In the most countries, governments and private businesses are spending onto research and development approximately the equal to 1/3 to 2/3. So, in Finland, in 2009, the state accounted for 25.4% of the costs, in Sweden – 30.0%, in France – 36.2%4. And if in the most EU countries the 1 Смирнов Е. Н. ... P. 20. 2 Селезнев П. С., 2014, Инновационная политика современного государства: стратегии, модели, практика. Диссертация на соискание ученой степени д. п. н. Москва, 2014. Электронный ресурс: http://www.library.fa.ru/files/Seleznev.pdf 3 Смирнов Е. Н. ... P. 9, 10. 4 Соснов Ф. Г. Роль Франции в процессе инновационного развития Европейского союза на современном этапе. – Ж.: Известия Тульского государственного

16

share of private costs has increased from year to year, then in France, in which, according to the new classification, the continental model of NIS is developing, the share of state expenditures has increased up to 49.9%1. At present, the TNCs are the main conductors of the innovative policy at all levels in the world economy, therefore, in the process of implementing the innovative policy of TNCs, it’s fulfilling by the foreign direct investment (FDI) that has been increasing by international research and has become more internationalized, the international outsourcing of innovation and its implementation takes nowadays a huge place in the global market2. In addition, by modern conditions, the private sector (both the TNCs as so as small and medium enterprices), together with public sector and public-private partnership, implements its innovative policy within the clusters, technology parks and techno-policies on the basis of development (with participation of representatives of national and regional authorities) and it’s realization that is named "the cluster strategies"3.

5. The objectives of regional policy in general and regional innovative policy require the systematization of territorial entities, both, within administrative boundaries and as the clusters, techno-parks and techno-policies which geographical boundaries often do not coincide with their administrative regions of concrete countries, while the clusters can consist of even adjacent territories of two or three neighboring countries.

6. To manage regional policy programs and compare statistical indicators, the territory of Europe is divided into statistical units according to the classification that is known under the NUTS abbreviation (the general nomenclature of territorial units for statistics). The NUTS classification is hierarchical and divides each member state into three levels: NUTS of levels 1, 2 and 3. The NUTS of the first level must have a population of 3 to 7 million people, the second – from 0.8 to 3 million people, the third – from 0,15 to 0,8 million people. If the population in the

университета. Экономические и юридические науки. 2011, №1-2. – Электронный ресурс: http://cyberleninka.ru/article/n/rol-frantsii-v-protsesse-innovatsionnogo-razvitiya-evropeyskogo-soyuza-na-sovremennom-etape-1 P. 222. 1 Национальные инновационные системы крупных западноевропейских стран (Великобритания, Германия, Франция, Италия). Минск, 2015. – Электронный ресурс: http://knowledge.allbest.ru/economy/2c0a65635b2ac69b4d43b89421316d36_1.html 2 Смирнов Е. Н. ... P. 16. 3 See, for example: Смирнов Е. Н. ... P. 12.

17

concrete territory of a particular Member State is generally below the minimum threshold for a given level of the NUTS, the member state, itself, is recognized as the territorial unit of the NUTS of this level.

For each of the EU member state, in accordance with objectives of it’s regional policy, the NUTS levels that were identified above are the parts of own regional policy. All these regions, districts and settlements are according to the NUTS classification and put on within the scope of regional policy objectives1.

7. In the recent period, the regional innovative policy is often implemented within so-called “the regional clusters”, the importance of which in the developed countries has been increasing more and more. So, the former US President, Barack Obama, into his first speech to the US Congress, was noting the importance of implementing an innovative strategy for prosperity of the nation, he pointed for the need to maintain the processes of dynamic interaction between large and small companies, universities, financial structures that are based on the cluster strategies and implemented primarily in the regional level, within the framework of regional innovative clusters. The similar steps are being taken in the European Union where the strategies of clusters also have seen as an important tool for innovative development of these countries2.

The relevant division of the European Commission (Directorate-General Enterprise and Industry) means that the cluster of independent companies and related organizations which, at the first, should compete and cooperate with each other; the secondly,with geographically concentration to one and/or several regions; the thirdly, they should concentrate to the specific areas of activity and being linked to the common skills and technologies; the fourth, are traditional and/or

1 Структурные фонды, финансирующие региональную инновационную политику Европейского союза. 2013. – Электронный ресурс: https://studme.org/48878/-ekonomika/strukturnye_fondy_finansiruyuschie_regionalnuyu_politiku_evropeyskogo_soyuza 2 Ленчук Е. Б., Власкин Г. А. Кластерный подход в стратегии инновационного развития зарубежных стран. – Ж.: Проблемы прогнозирования: 2010. – Электронный ресурс (25.03.2011): http://institutiones.com/strategies/1928-klasternyj-podxod-v-strategii-innovacionnogo-razvitiya-zarubezhnyx-stran.html

18

knowledgeable-based factors; the fifth, they can be institutionalized (to have the own managerial structure) and etc.1.

The industrial clusters are usually understood like a group of firms, research organizations and the variety of auxiliary structures that are focused on a geographically limited area and having sufficient resources, including the qualified personnel for effective development of a specialized field of industry2.

Unlike traditional industrial clusters, the innovative clusters build the system of close inter-relationship not only between the concrete firms, their suppliers and customers, but also some other knowledgeable institutions, including the large research centers and universities which are generators of new knowledge and innovation, ensure a higher educational level of the regions3.

The innovative clusters have been created in the Silicon Valley, California, on the territory where nowadays are allocated about 87 thousand companies, 40 research centers and dozens of universities, the largest of them is Stanford. This cluster is serviced by about a third of the US venture capital firms (180 companies), 47 investment banks and 700 commercial banks that somehow finance the activities of these companies4.

Recently, the term "the regional innovative cluster" actually replaces the term "the techno-park". So, often the Silicon Valley is also called “the science park”5. However, in several countries, both, the innovative clusters and smaller industrial parks or techno-parks are still functioning simultaneously. The areas on which innovative clusters are located can cover part of the administrative region, completely the region or even the

1 Акопян А. Р. Роль кластеров в развитии современных национальных инновационных систем субъектов мирового хозяйства. Диссертация на соискание ученой степени к. э. н. Москва, 2016. – Электронный ресурс: https://guu.ru/files/dissertations/2016/06/akopyan_a_r/dissertation.pdf P. 57, 58. 2 Борисов В.В., Соколов Д. В. Инновационная политика: европейский опыт. Москва: Языки славянской культуры, 2012. – Электронный ресурс: http://window.edu.ru-/resource/606/79606/files/riep02.pdf P. 105. 3 Ленчук Е. Б., Власкин Г. А. … 4 Ленчук Е. Б., Власкин Г. А. … 5 See, for example: Беляева Ю., Тимонин А. Региональная инновационная политика: опыт развитых стран и уроки для России. – Škola biznisa Broj 1/2012. – Электронный ресурс: http://scindeks-clanci.ceon.rs/data/pdf/1451-6551/2012/1451-65511201063B.pdf

19

country. So, for example, in Denmark, within the framework of the competitiveness program there are 16 clusters of national level and 13 of regional one. For each of them, in the course of a dialogue between the private firms that are part of these clusters and authorities of different levels, so the specific supportive measures have been developed by themselves. Denmark as a country, itself, according to the European classification of the NUTS is a territorial unit of the first level. The large clusters of national level exist in Finland which also applies to the territorial unit of the first level of the NUTS, for example, the cluster of telecommunications, unlike of the horizontally organized clusters, is organized vertically. The structure of the vertically organized cluster is somewhat different. It is based on some basic products which play the role of the "core" of this cluster. The structure of the vertically organized cluster also includes organizations that provide the core with various factors of production, and these supporting industries in turn have the structure of technological chains1. Another important innovative cluster of national level in Finland is the cluster of industrial timber2, but it is horizontally organized.

There are also some inter-states innovative clusters in Europe, for example, the mega-cluster Oresund which covers the territories of Ziland, Loland-Falster, Myon and Bornholm in Denmark and Scania in Sweden. The region of Öresund is largely attractive to scientific research and business, and as a result, it creates a favorable environment for innovation where the regional companies of various high-tech sectors of the economy are represented: information technologies, biotechnologies, logistics, the construction and food industry, information technologies and so on. The Information Technology and Telecommunications sector employs 104,000 people and 10,000 representative offices of the IT companies which represent the entire spectrum from newly emerging businesses to the major international market players. The strong position of the region in the field of advanced IT-development is supported by the fact that many international information companies have created there the own research 1 Агафонов В. А. Региональные инновационные кластеры. – Региональная экономика и управление: электронный научный журнал. №3 (43). 2015-07-15. – Электронный ресурс: http://eee-region.ru/article/4301/ 2 Борисов В.В., Соколов Д. В. ... P. 105; Ленчук Е. Б., Власкин Г. А. …

20

and development departments, for example: Sony Ericsson, Nokia, Motorola, IBM, CSC, Siemens, GN Telecom, Teleca, TDC, Telia, Axis, Anoto, Tellabs. The main competitive specialization of this region is development of the software and semiconductor materials, telecommunications and photoelectronics1.

The Japanese model of the regional innovative system assumes the construction of completely new cities – "techno-polises" that are focusing to research in the advanced industries and industrial products. At the same time, the construction of techno-polises is largely financed at the regional level2. Of course, the techno-polises are in fact the large regional clusters.

8. Special attention should be paid to the role of the state in the formation of cluster strategies. If initially the clusters were formed solely due to the "invisible hand of the market", primarily in the modernization of TNCs, recently governments of many countries began to provide tangible material and moral assistance to this process, for example, within the framework of public-private partnership3, etc. So, in the USA two types of innovative clusters were formed:

1) The emerged spontaneously clusters ( that are created by initiative of concrete organizations or individuals); 2) The founded clusters that are created by order of the government of concrete state and even the country. In the US, in 2014, there were 380 industrial parks and innovative clusters, (30% of total number in all over the world !), where have been employing 75,000 researchers and 200,000 workers)4. However, the first case, i.e. of the formation clusters was made with the help of the "invisible hand of the market" and/or "by initiative of concrete organizations or individuals", we have introduced in our working term "the business coordination", that is

1 Антюшина Н. М. Промышленная политика Швеции. В сборнике: Промышленная политика европейских стран (Институт Европы РАН). М., 2010. – Электронный ресурс: ieras.ru/doclad/259/259-1%20(1).doc ; Захарова Н. В. Формирование инновационной экономики и инновационных систем стран Европейского союза. Дисс. На соиск. уч. степени дэн. М. : 2010. – электронный ресурс: http://www.dslib.net/economika-mira/formirovanie-innovacionnoj-jekonomiki-i-innovacionnyh-sistem-stran-evropejskogo.html 2 Беляева Ю., Тимонин А. Региональная инновационная политика: опыт развитых стран и уроки для России. – Škola biznisa Broj 1/2012. – Электронный ресурс: http://scindeks-clanci.ceon.rs/data/pdf/1451-6551/2012/1451-65511201063B.pdf 3 Ленчук Е. Б., Власкин Г. А. … 4 Акопян А. Р. … P. 57, 58

21

more acceptable to the modern conditions1. And, the second case, is solved on the basis of state coordination of the process of forming the innovative clusters (that are founded with active participation of national and regional governments). However, in both cases, regardless of who initiated the creation of the cluster, it should be taken into account the need for interaction between the state, science and business on the principle of a triple helix.

9. At the regional level, there are innovative and sectoral, structural (industrial) policies that need to be harmonized, so the same tools are used for their implementation at all levels of coordination and consideration. Some researchers believe that innovative policy is an integral part of industrial (more precisely, sectoral and/or structural) policy2, but other talk about the intertwining of these policies with a serious increasing of innovative policy’s role3.

For example, N. Antiushina, has been examining the experience of Sweden, she notes that an important condition for transition to innovative type of development is highly increased by the status of innovative policy. In Sweden, the Council for Innovation Policy has a higher position than the sectoral Ministries of Education, Science and Culture or Industry, 1 See, for example: Бурдули В. Ш. Проблемы реформирования механизмов государственной и бизнес-координации привлечения финансовых ресурсов национального бизнеса на инвестиции в реальный сектор экономики. – В коллективной монографии: Problems and Possibilities of Public Administration Development in Conditions of Reformes: Collective Monograph. Mariupol – Bielsko-Biala, 2017. Стр. 200-218. – Электронный ресурс: http://dsum.edu.ua/upload-/doc/monografiya_chechel.pdf 2 Калугина Е. Ю., 2010. Промышленная политика Франции. В сборнике: Промышленная политика европейских стран (Институт Европы РАН). М., 2010. – Электронный ресурс: ieras.ru/doclad/259/259-1%20(1).doc ; Ляпина И. Р., Ветров Н. П. Инновационная составляющая промышленной политики. – Ж.: Вестник ОрелГИЭТ, 2011, №2(16). – Электронный ресурс: http://orelgiet.ru/docs/-lyapina_vetrov_2_16.pdf; Черноуцан Е. М., 2010. Полюса конкурентоспособности как инструмент реализации инновационной политики Франции в условиях глобализации. – В сб.: Глобальная трансформация инновационных систем. Под ред. Н.И.Ивановой, М., ИМЭМО РАН, 2010. – Электронный ресурс: http://www.imemo.ru/files/File/ru/publ/2010/10022.pdf; Смирнов Е. Н. ...; Акопян А. Р. … 3 Антюшина Н. М. …; Фатеев В.С. Координация региональной и инновационной политики: опыт Европейского союза и Республики Беларусь / В.С. Фатеев // Экономика глазами молодых: материалы IV Междунар. экон. форума молодых ученых (Вилейка, 3–5 июня 2011 г.). − Минск: БГАТУ, 2011. − С. 28−32. – Электронный ресурс: http://ekonomika.by/downloads/Fateev_2011-4.pdf

22

Employment and Communications which are the keys to the implementation of industrial policy, R & D and innovation. This is an expression of recognition by the growing role of innovation which allows us to achieve a new quality of innovative policy. It loses industry (sectoral) character and becomes an integration policy by linking the different spheres of national economy: science, education and production as so as allowing to put the new forms of interaction in the service of economic growth and improving its quality by providing a real transition for development. It is intertwined with all major directions of the state economic policy, at first, with industrial, regional, environmental, credit and financial, export policies, labor market policies, international cooperation, etc.1.

E. M. Chernoutsa who has been examining the experience of France, notes that in 2004, President J. Chirac declared the activation of industrial policy as an important state priority. The main goal of this policy is to bring France to the forefront of the world in the new high-tech areas of the 21st century. The main tools for implementing this policy are mobilization of the country's industrial, scientific and technological potential by stimulating the process of innovation (from creation to implementation) both, in the national and regional levels. Much more attention should be paid to the development of various forms of partnership between private and public entities, especially interaction between the different aspects of science, education and business. The most important principles of the new industrial strategy of the state are: the focus to the development of a large-scale innovational process that affects the entire country, and stimulate the real interaction between the main participants of that process (the enterprises, scientific laboratories, higher schools). To solve this double task, the special regional clusters are being created in the country that are called “poles of competitiveness“ and which are becoming a key instrument of the country's new industrial and regional innovative policy2.

10. It is necessary to take into account these clusters, regardless of their territorial size, where they are formed, mainly within a certain industrial specialization. Even the innovative enterprises of famous Silicon

1 Антюшина Н. М. … 2 Черноуцан Е. М. … P. 43, 44.

23

Valley in California which are mostly specialize in the field of information technology1. Within the region of the first level by the NUTS, of course, there may be several clusters belonging to different industries, for example, in Finland, as noted above, there are at least two clusters of national level. However, the most of innovative clusters specialized in a certain type of activity in the EU countries (nowadays there are more than 2 thousand clusters) and they are formed within the territorial units of lower level of the NUTS. Here are a few examples of such clusters: IT Technology – Sofia, Bulgaria; Financial Services – Cyprus; Food Industry – Southern Denmark; Footwear industry – Montebelluna (near Venice), Italy and Timisoara, Romania; Laser technologies – Vilnius, Lithuania, etc. At the same time, many clusters have been formed within the territories commensurate with the territorial units of the first level of NUTS and even surpassing them, for example: Food industry – Southern Denmark; Textile industry – Catalonia, Spain; Floriculture – the Netherlands, etc.2.

11. In the construction of territorial innovative systems (regardless of what they are called – the regional innovative clusters, technology parks, scientific parks, industrial parks, etc.), in some EU countries, they often are focused on a formalized standard based for full imitation of the US Silicon Valley: university with research and innovative developing units inside and outside it, other elements of innovative infrastructure within and/or around the university (business incubators, organizations for commercialization of innovation, technology transfer, etc.) and a number of innovative enterprises are allocated in the given territory. In the most EU countries, mainly in the first decade of the 21st century, many different scales of regional innovative clusters and techno-parks have been formed. For example, by 2003, in Hungary had been established a system of more than 150 clusters in the following areas: construction, textile production, thermal waters, optical mechanics, automotive, wood-working, food products, electronics, etc. More than 75 industrial parks, uniting 556 companies with a number of employed 60 thousand people3. In our opinion, this is taken into account in the majority of countries when creating regional innovative clusters or technology parks, in each separate 1 See, for example: Борисов В.В., Соколов Д. В. ... P. 106. 2 Борисов В.В., Соколов Д. В. ... P. 105, 106. 3 Ленчук Е. Б., Власкин Г. А. …

24

regional innovative cluster or technopark where all elements of the innovative infrastructure should not be present: some elements of this infrastructure can be found only in certain regions, but at the same time serving on its profile other regional innovative clusters of the country. Innovative enterprises can also be located in some regions, and organizations that develop innovations for them in others. The same applies to objects that finance innovative clusters. Thus, it was noted above that the US Silicon Valley serves a variety of American venture capital firms, investment and commercial banks, the most of them, naturally, do not reside in the Silicon Valley.

12. The need for a prudent approach in the creation of innovative firms or divisions in companies and objects innovative structure in the clusters is also connected with the fact that monetary investment into innovation has a risky nature. The probability of success of the implementation of a new idea into a new product reaches only 8.7%: out of every 12 original ideas, only one reaches the last stage of mass production and mass sales. In other words, the return on investment in the innovative process has very little in common with guaranteed repayment of the loan interest on capital in a bank and/or dividend on shares. And because such a return can, with successful implementation of the innovative process, prove to be fabulously large, and because it can fail to be implemented at all, moreover, the invested state capital will be lost.

The functioning of this cluster is a result of effective combination for interaction between participants as well as the useful influence of subjective and objective institutional factors that were created by the project participants, themselves. The opportunities for innovative development of these clusters in the most cases do not directly depend on the competitive advantages of specific companies as well as on the possession of the newest technologies and spatial distribution of companies1. The actual effectiveness of cluster’ policy in practice is not very consistent with financial investments and expectations. So, many countries in all over the world could not realize their expectation and hope by trying to repeat the success of Silicon Valley and copying the conditions of its functioning and development. The failures in the implementation of 1 Акопян А. Р. … P. 64.

25

cluster’ policy significantly have exceeded the number of those projects that were successfully implemented. According to various estimates, currently in the whole world, there are from 3 to 5 thousand different-profile clusters (including innovative ones). In this case, only single cases became widely known, and the most of them had been ended with zero result. The result of implementation of many programs is estimated by experts as neutral, i.e. they did not give any positive effect1.

In this scenario, it is naturally inappropriate by following " the up-to-date fashion", in each "declared" cluster to create a complete standard setting of objects associated with innovative activities. A certain part of the objects should be tied only to regions of the first level of NUTS. And special attention should be paid to the creation of organizations that facilitate by borrowing of innovation: organizations that are exploring the new promising foreign technologies; organizations that facilitate the transfer of technology (including assistance in the development of new production technologies acquired abroad by local personnel).

As can be seen from the above mentioned paragraphes the regional innovative clusters are currently primarily instrument in the process of implementing regional innovative policy in developed countries. At the same time, it should be noted that it is impossible separately coordinate the implementation of industrial and regional innovative policies, since a common set of instruments is used to regulate these areas of economic policy. At the same time, development and implementation of the regional policy (cluster strategy) should be harmonized with instruments of state regulation and business coordination (business coordination of the concrete country plays greater role in comparison with the state coordination, primarily in terms of financing and organization of market entities, then a private or state enterprise). In addition, interregional and intercountry (although specialized, i.e., mono-branch) clusters are beginning to play an increasingly important role. A growing number of researchers come to understanding the variety of types for cluster formation and the forms of state and business coordination which are used

1 Акопян А. Р. … P. 64.

26

by them1. For example, in a recent study, we read: "During the period of innovative transformations of the Russian economy, the clustered education becomes an integral mechanism for implementation of the new national industrial, scientific and technical policies. The clusters can be presented as an integrated mechanism for development the concrete region, ensuring the growth of its competitiveness on the basis of innovation and synergies of territorial self-organization and partnership that ensure the formation of innovative community as a territorial development entity. In economic literature, the several different types of clusters are distinguished: industrial, regional, innovative, transnational, and some other. Also, different researchers differently define the main characteristics of clustered associations. Some consider territorial (geographical) concentration to be the main characteristic feature of the clusters, other think that industrial affiliation should be the main, and the third insist that an innovative component has the huge meaning. In our opinion, the competitiveness of clusters is determined primarily by innovative orientation"2. Of course, in this quote, not everything is quite accurate, but it is reflected very laconically by the variety of types and forms of coordinating the strategy of formation the clusters.

Given this diversity, it is not surprising that in different developed countries approaches to strategy of concrete cluster and fully understand the cluster’ policy are identified in different ways. "Developed countries have different approaches to the clustering strategies which is determined, at first, by different levels of socio-economic development and business environment, institutional and cultural specifics and different systems of state regulation. Secondly, the different countries apply different approaches to identifying the clusters"3.

Since the clusters in these countries are identified by different point, so they are formed by different ways. Where the clusters are created formally, for the sake of "the up-to-date fashion", they do not become 1 Акопян А. Р. …; Гельвих М. В. Инновационный кластер как эффективная форма повышения конкурентоспособности региона // Инновации в науке: сб. ст. по матер. LIX междунар. научно-практич. конф. №7 (56). – Новосибирск: СибАК, 2016. С. 158-162. – Электронный ресурс: https://sibac.info/conf/innovation/lix/58662; Ленчук Е. Б., Власкин Г. А. …; Ляпина И. Р., Ветров Н. П. …; Селезнев П. С., 2014 …; etc. 2 Гельвих М. В. … 3 Акопян А. Р. … P. 70, 71.

27

popular and disintegrate or continue to exist formally, for statistics only. In addition, the word "cluster" or "innovative cluster" is not always used to designate such territorial entities in all countries. So, in France, the term "the pole of competitiveness" is often used, and in South Korea, in general is used – the "territorial unit". In these two countries when have been forming the new clusters, they do not confine themselves to the problems of implementing state and business coordination only by innovative development, but they also take into account other industrial policy aspects as well as the issues of regional policy in general (at all levels of its formation). In these countries all the above mentioned circumstances are taken into account and the most important aspects of cluster formation are not formal, but realistic and therefore beneficial. Therefore, in this subsection we thought that it is necessary to briefly describe the principles of formation these entities and forms of coordination the economic activities using like the proper examples these two countries.

From the experience of France, we can draw the following conclusions1: 1. The country has created a rational system of poles of competitiveness. Assignment to the territorial formation of the status of the pole of competitiveness is carried out on the basis of a thoughtful selection after studying the documents submitted in the application for the pole therefore the poles are real, not formal. 2. The system for controlling the activities of the poles, both external and internal, has a flexible and democratic character, with a rational combination of state and business coordination. 3. A successful mechanism that promotes effective activity of the participants in the poles is the conclusion of "contracts for the achievement of results which reflect both the program of actions of the poles and the timing of its implementation as well as the financial obligations of the state. 4. An effective system of tax preferences was created for participants in the poles. 5. There is an effective complex system of financial support and incentives (direct financing, concessional lending) in which a number of state financial organizations are involved (FUI, ANR, AII, OSEO, the State Investment Bank of France, etc.). 6. Naturally, like in many other EU countries, all three levels of coordination are involved into financing the poles, but the national level 1 See: Калугина Е. Ю. …; Черноуцан Е. М. …; Селезнев П. С. … P. 159-171; etc.

28

plays much more important role than the multinational level (i.e. the EU level) and the regional levels.

From the experience of South Korea, we can draw the following conclusions1: 1. The developed countries of EU and Japan as so as South Korea in the international market of manufacturing products began to crowd rapidly by developing countries like China, India, Turkey and some other which forced the South Korean leadership to accelerate the innovational course therefore a special program had been developed there, even a little earlier than in France, it was aimed for accelerating development and innovative breakthroughs which is carried out by structuring at the regional level (the "4 + 9" paragraphs) the production, technical and innovative base and the investment climate for innovational development in the conditions of prevailing the state coordination tools. 2. The economy of the South Korea after implementation of that program unlike from the most of other countries, had developed without failures, with high rates of growth and a constant increase in the volume of export of innovative products which indicates the correctness of the activities carried out during the clustering process. 3. There is a certain state dirigisme which manifests itself in the development of strategies for innovative development. Regional strategies are developed on the basis of close interaction between business representatives, research institutions, universities and non-state, non-profit organizations from each province under the auspices of the Council for Regional Innovations. 4. Unlike most countries, the cluster entities in the South Korea are multi-sectoral that means, each territorial unit which is included in the "4 + 9" paragraphs have several specialized sectors, however, in these conditions, work effectively the reliably functioning interrelated mechanisms for national and regional coordination of industrial and innovative development. 5. There is no country, even a relatively large one that can go ahead without borrowing innovation, let alone a small one, where borrowing the 1 See: Абдурасулова Д., 2009, Промышленная политика Южной Кореи. 16.02.2009. – Электронный ресурс: http://institutiones.com/industry/897-promyshlennaya-politika-yuzhnoj-korei.html ; Гомбоев А. Б. Инновационная политика Республики Корея: историческая и территориальная специфика (1966-2009 гг). – Вестник бурятского государственного университета, 2015, №7; Сахариева А. С. Национальная инновационная система Южной Кореи: со скамейки запасных в форварды. – Вестник КазНУ. Серия экономическая. №6 (100). 2013; Селезнев П. С. … P. 267-291; etc.

29

new technologies plays a dominant role, and in South Korea has been created an excellent system of improvement the borrowing process in the both terms: production and food technologies. 6. In the most European countries, innovative venture enterprises with a positive impact are created with great difficulties, the availability of which is absolutely necessary for an innovative industrial breakthrough. In this sense, it is necessary to pay attention to the long-term experience of the South Korea in which innovative joint ventures (primarily venture capital) with Japanese partners have played a decisive role in the exit of the SK to the advanced industrial boundaries in the 60-70s of the last century, and modern experience when, within the framework of the paragraphs "4 + 9", the number of venture enterprises increased (up to 27 thousand), which now yields up to 15% of GDP and has rapidly increased (by 13 times).

Conclusions Within the framework of the first sub-goal of the study, "formulation

and substantiation of the initial prerequisites for formation of the regional innovative policy in terms of three levels of its coordination", a number of circumstances have been identified that need to be taken into account when have been forming the mechanisms for coordinating regional innovative policy:

1. In the process of developing strategies and coordinating tools for regional innovative policy the state plays a leading role, the role of the EU is also increasingly strengthened (for example, in the area of finance and European coordination of innovative activity in the regions), for regional authorities (with exception of some federal countries like the USA, Germany, Canada) it is not possible to sufficiently weighted contribution (financial, tax preferences, or the creation of public-private partnerships) withouth implementation of appropriate strategies.

2. The difference between the state innovative policy and the same policy of private business. In most countries, the governments and private businesses have spending on research and development approximately equal to 1/3 to 2/3.

3. In the recent period, regional innovative policy is the most often implemented within socalled the regional innovative clusters. These clusters arise either spontaneously in the process of business coordination

30

and/or by the direction of national and/or regional authorities. However, in both cases, regardless of who have initiated the creation of new cluster, it should be taken into account the need for interaction between the state, science and business onto basis of the "triple helix" principle.

4. At the regional level, it is necessary to harmonize the regional, sectoral, structural (industrial) and innovative policies, since the same tools are used for their implementation at all levels of coordination.

5. It is necessary to take into account that the clusters, regardless of their territorial size, are formed mainly within a certain branch of specialization. However, there is also a successful practice of multi-industry (3-4 industries) clusters.

6. A careful and perfectly thought-out approach is needed in the process of organization these clusters, as experience that has shown the failures in the implementation of cluster policy, significantly exceed the number of projects that have been successfully implemented.

Within the framework of the second sub-goal, "consideration and structuring of all mechanisms at the national and regional levels for regional, industrial and innovative policies as it was shown with successful experience in the reforms in France and South Korea", it is necessary to take into account the following circumstances that will contribute to the purposeful formation of appropriate systems in the post-Soviet countries. It is necessary to pay attention to the general system (mechanisms) by coordinating formation and activity of the poles for competitiveness in France as so as the poles of competitiveness for management system, the contracts for the achievement results, tax preferences, system of public funding from experience of South Korea, attention should be also paid to the management system in which the Council for Regional Innovation provides clear coordination of national and regional governance as well as the state, science and business, through the joint development of the strategy and programs for activities on innovative policy. An important circumstance is that there is no country, even a relatively large one, that can do without borrowing the innovation and new technologies, and therefore in South Korea has been created an excellent system of continuous improvement for borrowing production and consumer technologies.

31

1.2. TRANSFORMATIONAL POTENTIAL OF THE INSTITUTIONAL FRAMES

OF LOCAL SELF-GOVERNMENT ADMINISTRATION1

Local Self-Government and Local Communities: Main Problems in the Field

(The Background of the Theme Topicality) The topic of local self-government and its different aspects is an issue,

which experienced a resurgence of interest of fundamental and applied social sciences with the fall of the soviet system; it is a dimension of politics and policy, in which there were created thousands of legislative documents and which has undergone numerous reforms (sometimes, contradictory and mutually exclusive) in the states of the Central and Eastern Europe. This issue is not less topical for the states of the Western Europe: decentralization, deconcentration, regionalization, relations of local communities with their states’ capitals and with Brussels, which are of importance already for several decades, creation of the EU Assembly of Regional and Local Representatives, the EU Regional and Cohesion Policy etc. are the evidences of the great topicality, high importance and multilateral nature of the issue.

But though most of the problems existing in the thematic field of local self-government are studied from different sides, the tensions in its different constituents as well as between local self-government structures and state governments are still frequent. The example of Catalonia, internal problems in the UK, where some its regions and local communities tend to the EU membership after Brexit2, some vulnerabilities in Belgium are only the tip of the iceberg of such problems in the Western Europe. And, as for the Eastern Europe, the issue continues to be extremely “fruitful” on both hot and smouldering conflicts.

On the other hand, the issue of the local self-government is topical not only because of its conflict-related role nowadays. The thing is that local

1 The author of subsection: Barantseva Karina, PhD, Associate Professor, Senior Specialist of the Projects Office, Lodz University of Technology, Independent Analyst in European Studies, Lodz, Poland 2 Implications of a Brexit for UK National Governance and Local Government: Report on the hearing held on 13th April 2016 / Rapporteur: Tony Travers. – London: LSE European Institute, 2016. – 24 p.

32

self-government acts as a form and instrument of will expression for members of local communities; it is the tool of support of grass root initiatives. A local community is the basic link of the administrative-territorial structure of a democratic state, and local self-government is an independent form of public power, which shape, together with the shape of the second independent form of public power – state power – the level of democracy and the status of a person, opportunities for a person to self-realization and exercising person’s rights and freedoms in practice. In short, the idea of local self-government grew up from the special level of forming the consciousness of the Common Good – from the level of people, knowing each other, understanding common problems, interests and desires – a contact social group (at least, in the ideal situation). In local communities the Common Good is neither an abstract notion that generalizes the social processes that have taken place over the centuries, nor a moral imperative in the Kantian style, but a real need and will of a real community (or, in Ferdinand Tönnies’s words, of a Gemeinschaft tending to become a Gesellschaft1).

Moreover, a local community is a level of social and political organization of society, at which the ideas (expressed, for example, by P.Rosanvallon2) about a “counter-democracy” – revitalised democracy, depending from people not only at the points of political elections, but permanently – a counterbalance to representative electoral democracy and a way to restore democratic legitimacy, a truly common nature of democracy, could be regarded not as a theoretical speculation or a utopia-like construction, but a real mechanism of reforms.

Not referring to the derogation or the depreciation of all the numerous and complex problems that are associated with the subject of local self-government, I see as a major problem among them the one that lies at the bottom, creating an unfriendly context for the solution of all the other problems in the field. From my point of view, the root of all debates and conflicts around local self-government are deeply seated in the problem of its source and subject – of a local community. The constant increase in the

1 Тьоніс Ф. Спільнота та суспільство. Основні поняття чистої соціології. – Київ : Дух і літера, 2005. – 262 c. 2 Розанвалон, П’єр. Демократична легітимність. Безсторонність, рефлексивність, наближеність / Пер. з фр. Є.Марічева. – Вид. дім «Києво-Могилянська академія», 2009. – 287 с.

33

number and mobility of inhabitants of local communities of a certain type (industrial cities) and the reduction and disappearance of other territorial communities (small villages) is increasingly hampering formulation of common interests, activism and inclusion of their members. Social mobility, migration, globalization, industrialization, as well as authoritarian and totalitarian political systems made a big “impact” in its ruining, and its revival on the “classical grounds” and by “classical” tools is rather doubtful.

Today this status quo is quite clear for researchers, as well as for legislators. For example, in Ukrainian renewed (Revision dated June 10, 2018) Law “On Local Self-Government in Ukraine”1 the local community function is regarded classically – it is a “primary subject of local self-government, the main bearer of its functions and authorities” (Article 6). At the same time, the official definition of a local community in the Law is based on the mechanical conditional external connection of persons who are naturally linked only by a certain – officially recognized by the state – administrative territory in which they currently reside: “Local Community – residents, united by permanent living within the limits of a village, a town, a city, which are independent administrative-territorial units” (Article 1). Moreover, having a developed legislation on the local self-government, as well as a developed local self-government system, some states (for example, Belarus – in its legislation and in approved by the state students’ manuals2, see also3) continue to regard its nature opposite to its traditional interpretation, within the paradigm of the socialist idea of the “matryoshka” of soviet bodies, based on the principle of “democratic centralism”, and to treat the local self-government as a “lowest” level of the state government.

Maybe it's close to the truth, if to speak about the real state of the local self-government bodies in the Eastern European post-soviet states. But

1 Закон України «Про місцеве самоврядування в Україні. Документ 280/97-ВР, чинний, поточна редакція від 10.06.2018, підстава 2189-VIII http://zakon.rada.gov.ua/laws/show/280/97-%D0%B2%D1%80 2 Закон Республики Беларусь О местном управлении и самоуправлении в Республике Беларусь, 4 января 2010 г. № 108-З http://pravo.by-/document/?guid=3871&p0=H11000108 (Art. 1, 2, 5, 6 etc.) 3 Кобаса, Мирослав. Местное самоуправление в Беларуси – как превратить миф в реальность / Аналитический документ. – Минск: School of Young Managers in Public Administration, 2010. – 55 c.

34

regarding it as a norm (both in the meaning “normative”, as well as in the meaning “normal”) opens the way to speculations and abuse on the development of local self-government.

In my opinion, the remedy for the status quo of the local level of a state is to be built out in the opposite direction from the “classical” approach: the “classical” approach regards local self-government system as a result of activity of a strong local community; the new approach could be “from properly formed and equipped with the appropriate administrative and legal grounds system of local self-government to the revival of local communities”. And the content of the notion “properly formed” system, as well as the methodological background of this idea I connect with the institutional capacity building of the local representative and administrative bodies, which is one of the main flagships of the Europeanization. The table presentation of my approach to the correlation of the state of a local community and a local self-government administration will add the transparency to my ideas:

“Classical” approach to build out a local community capacity and to the functions of local administration in

this process

New approach to build out a local community capacity and to the functions of local

administration in this process

1. People live for a long time on the same territory. They create a social structure of their locality, its economic organization. Their common problems, threats, living conditions, common cultural background form their common interests, goals and values.

1. In today’s world vertical and horizontal mobility, including migration, is increasingly strong. The communities with “rooted” members are more and more rare. It is impossible to stop mobility, that is why, it is impossible to provide or restore the old foundations for the formation of the common will of a local community.

2. Common interests, goals and values, together with common living conditions, are the background for cooperation and working out of people’s common good.

2. Common interests, goals and values, together with common living conditions, remain to be the background for cooperation and working out of people common good.

3. Promises and plans to support and implement their common good make possible the conscious choice by local community members of their representatives to a representative body of self-government of this community.

3. But it is possible to develop these common interests, goals and values not only as a result of long common history, common culture and traditions. Common living conditions as a starting point and constant interaction, communication, repeated cooperation in situations of extreme need of it make this intercommunion accustomed and – in this way – “normal”. If the incentives for this constant interaction will correspond to the ideas of “normative”, in this way “normative” from unnecessary and imposed becomes “normal”.

35

“Classical” approach to build out a local community capacity and to the functions of local administration in

this process

New approach to build out a local community capacity and to the functions of local

administration in this process

4. The representative body forms a local administration to implement the local community’s will, presented in the practical forms in the representative body decisions.

4. So, if a community has some imposed reasons to communicate, to interact and to discuss some positions, it will adjust to it even if it has a movable composition, lacks “rooted” members and is very heterogeneous in cultural and social origin of its members.

5. A local community carefully monitors the implementation of its will by its representative body and is able to replace it if it does not carry out the will of the community.

5. If we have an aim to find such incentives or levers for to some extent imposed at the beginning, but effective interaction in a huge amount of local communities, we have to use as a lever a common for all the communities’ institution, which could be regulated by legislation and could be interested in inspiration of such interactions inside communities.

6. Such processes are possible only in a community with “rooted” members: rooted culturally, territorially, historically etc. A community should be relatively stable in its composition. Otherwise, the chain of positions listed above will be ruined and – in this way – there will be ruined the background of a community’s integrity, identity and – consequently- of its common will.

6. As one of such levers, corresponding to the demands listed above we can treat a local self-government administration. If it has corresponding normative frames of its activity, it is interested in self-preservation, and, consequently, in stable and wide background of selflegitimization. And it will find this background in clearly defined and articulated common will of the community. So, an administration will be interested in maintaining constant interaction inside the community.

In other words, the objective of this text is to offer a new methodological approach to the issue of a local community capacity building and revival, as well as to demonstrate the possible way of its development up to the level of a new toolkit study.

Europeanization as Influence via Institutional Changes: A Possible Way out of the Local Self-Government Problems

The Europeanization as a notion, as well as a phenomenon, cannot be reduced to the processes of European integration, treated, first of all, as adaptation to the requirements of the EU. The Europeanisation involves approximation1 to European (not reduced to “the EU”, but in the wide

1 As for the Eastern Europe, I would add that this is not only an approximation, but a return to the European values, and in the case of Central Europe, the word "return" becomes an unquestionable definition.

36

notion) norms, requirements, traditions, both in politics and law, as well as in culture and values. In other words, Europeanisation involves, first, approximation to the norms and rules of not only the EU, but also of other European organizations, and second, the perception of these norms at the level of legislation – as “normative”, and at the level of values – as “normal”. It is a common knowledge that the specificity of international norms, of acts produced by international organizations is that they can become a true must only for states, which observe the principle “pacta sunt servanda” and do not mock with this principle. Moreover, any norms – even implemented in this or that legislative system – become legitimate not only from the legal point of view, but from the point of view of political culture and political psychology, when they correspond to the values and customs of citizens. So, the Europeanization, including the level of cultural patterns and values, has a stamina to make reforms and transformations sustained.

But when the values are under discussion – the adoption process becomes much more complicated. Speaking about the methodology of the Europeanization influence, it seems better to turn, first of all, to the EU experience, which could not be reduced to the single market, some definite vertical or sectoral policies, but is concentrated in the ideas, principles, tools and mechanisms of its creation and development, corresponding to the multipolar, centerless, movable, glocalizing – postmodern – condition (which does not reject the principles of Westphalian Foundations of Modern International Relations – a theoretical and practical base for legislation, legitimacy, parity, a starting point and a pillar of the sovereignty of states and of the principles of international relations). I am not going to stop for too long on the analysis of all the EU theoretical and practical experience of creating a transnational multilevel governance system. I am going to stop only on positions that I regard as the methodological pivots of the EU idea, structure and functioning: neo-institutionalism and functionalism taken together. It is a common knowledge, that these two methodological principles, used by the European Communities’ “Founding Fathers” – J.Monnet and R.Schuman – paved the way out of stalls and stops, caused, to a great extent, by the federalist and unionist approaches. These principles were laid into

37

background of organization of the first Communities’ Institutions and are dominating in their functioning today, they are actively used by theorists of the European identity1, which, being a complementary to the national identity phenomenon, is not to be based first and foremost on the historical or cultural roots: the multinational, multicultural, even multi-confessional Europe could be divided – not united – by such a background. The idea of the European identity grows from the principle “Interaction generates institutionalization”, which could be regarded as a motto of neo-institutionalism and functionalism acting together.

So, if constant, functionally necessary, desirable or unavoidable interactions – trade, resource-seeking, wars, struggle for border lands, negotiations, communication of elites, later on – people diplomacy – resulted in exchange, approximation and synthesis of values and in this way created Europe, it means that it is possible to put forward a hypothesis, that gradually intensified interaction in the flow of Europeanization, related to the functional needs of Eastern European states, can lead to the transformation of the whole institute of the local community, its revival. For example, it used to happen with the national languages and cultural foundations of most post-Soviet countries, where the languages and ethnic culture were revived at the turn of the XX – XXI centuries consciously, in modern forms – vitalized by youth, which saw their functionality (in contrast to the outdated forms that had, rather, a museum value) and its institutionalization as a revived in ethnic content, but in modern forms, as part of national independence and state sovereignty.

In other words, adoption of new institutions, which bear the foundations of democratic development and participation, caused by functional necessity and to some extent external must, make people acquainted with these institutions, used to them and – by the spill-over effect – cause their further conscious activities on the new political and cultural grounds.

1 Крепон М. Європейські іншості / М. Крепон; пер. з французької О. Йосипенко. – К.: Укр. Центр духов. культури, 2011. – 184 с.

38

Modern Important Works in the Field A close idea is expressed by D.Acemoglu and J.Robinson in their joint

works “Economic Origins of Dictatorship and Democracy”1 and “Why Nations Fail”2, where the creation of inclusive institutions is regarded as a pivot of all the other democratic transformations. But first, these works are not directly connected with the local self-government and not tailored for the specific features and problems of local communities. Second, it is necessary to remember, that D.Acemoglu used to be a member of the Expert Council under the Ministry of Economy of Ukraine 2014-2015, and this his activity has not resulted in a victorious implementation of his ideas in a country that has declared the next stage of powerful transformations and new principles of state-building. Many programmes and projects aimed at institutional development and rise of the institutional capacity of the Ukrainian state have also had a similar fate – these programmes have had and continue to have some positive influence, but they have not made decisive changes.

Close to our research are also the ideas presented in the monograph by J.Figueira-McDonough3, where she regards – as main reasons of failure or prosperity of territorial communities – their integrity, identity, coherence, inclusion, much more than financial or legislative capacity. But she does not give any practical ideas, tools or models to change the situation.

A great amount of literature today is devoted to the value of European integration and Europeanization processes not only as a way of widening the EU, but as a set of leverages for democratization and economic and political development and advancement of the states that started the way of Europeanization. I pay attention, first of all, to the works that study not only rational – legislative, economic and similar – reasons of changes inside the states affected by the influence of the EU leverages, but some irrational, associated with systemic changes, which are not realized

1 Acemoglu D., Robinson J. Economic Origins of Dictatorship and Democracy. – N.Y.: Cambridge University Press, 2012. – 416 p. 2 Acemoglu D., Robinson J. Why Nations Fail: The Origins of Power, Prosperity and Poverty. N.Y.: Crown Publishers, 2012. – 571 p. 3 Figueira-McDonough, Josefina. Community Analysis and Practice: Toward a Grounded Civil Society. – Philadelphia, Brunner-Routletge, 2001 – 217 p.

39

immediately, but, having gained strength, hinder a return to the old status. Such leverages and processes were thoroughly studied and explained by M.Vachudova and published in the most comprehensive way in her book “Europe Undivided: Democracy, Leverage, and Integration After Communism”1. M.Vachudova proves, that not only the EU principle “more for more” and some economic advantages stimulate real changes. The transformations in the Europeanization frame are caused to a large extent by two indirect leverages: disadvantage or even economic and political danger of reverse, of regressive changes in the case of stops on the Europeanization way, caused by the adjustment of the society to the Europeanization results, on the one side, and interest of elites in maintaining the power in a society characterized by crisis phenomenon, at the expense of transformations that are carried out with the help and funding of the EU, on the other. So, one of the main levers, according to M.Vachudova, is that the elites could lose their power if they do not conduct some radical changes, for in such states there is a relatively free movement of information, there is an access to information from the outside, the elites are really capable politically, psychologically, and – the most important moment – functionally – to make decisions on Europeanization. But first and foremost, the leverages, described by M.Vachudova, work only in the states, were the public is not passive, even if not properly informed and conscious of its demands.

In other words, economic incentives and purely functional approach are too rational to be successful for transforming political psychology and culture. Imposing of the democratic rules by the principle “more for more” is much more effective, but may be opposed by a community as something strange and unfriendly. So, I look for the methodological basis of a local community capacity building, that would be bind with institutional transformations, which could produce the effect, causing not only legislative approximation, but also a value shift.

1 Vachudova M.A. Europe Undivided: Democracy, Leverage and Integration After Communism. – Oxford and N. Y.: Oxford University Press, 2005. – 341 p.

40

Local Self-Government Administration for Local Communities, or How to Use the Maximum of the Detected Transformation

Potential Taking into consideration all stated above, under the described state-

of-the-art, I would start sowing seeds for revival of a local community via the way, that is not yet developed: from the level of institutional development of local self-government administration.

The compound and complex issue of local self-government administration itself comprises a number of problems or “blind spots” not only on the level of administration thematic field in general (for instance, in many Eastern European states, which admit the difference of the nature of state government and local self-government, as well as the difference between the political and administrative positions, the legislative regulations for these two types of administrative employees are the same, and, in the same time, the elected positions in a representative body are regarded as public service). I should like to rise the topic of potential influence of Europeanization on the formation of the institutional frames of local self-government administrative structures as a tool of much more radical changes in a state of a local community.

This idea is based on the Max Weber theory of bureaucracy, namely, on his idea of necessity of the strict separation of administrative and political structures at any level, for they have different nature of their activity: political structures represent the institutionalized forms of the politics – struggle of different ideas, plural positions, that are topical in society, and possibility to implement the most legitimate and supported by the majority; administrative structures are to be beyond politics, for they are to implement in practice the ideas, which are legally stated, legitimate and are the forms of the transformation of the Common Good into specific tangible outputs and intangible outcomes important for citizens1. In other words, political bodies are dependent on the struggling political groups and are interested in some of them – in those, that were supported by majority; administrative bodies draw their legitimacy from the common good of the respective community and feel much safer and more legitimate when the community can produce the demands – which outputs and

1 Вебер, Макс. Соціологія. Загальноісторичні аналізи. Політика / Пер. з нім. О.Погорілий. – К.: Основи, 1998. – 534 с.

41

outcomes they prefer. In other words, if the institution of public service and other institutional frames of the administration are shaped in a corresponding way, the administration tends to be much more connected with the respective community, not with a political body. On the other hand, Max Weber was well aware of the danger of too high severance of the administration from political bodies and considered the need for mechanisms that connect them, ensuring both the correct movement of information between them and the control of the political body over the administrative one.

For more structured explanation of these ideas I present them in a form of a table:

Political Structures Administrative Structures Their nature Represent the institutionalized

forms of politics – struggle of different ideas, plural positions, that are topical in society, and possibility to implement the most legitimate and supported by the majority

Are to be beyond politics, for they are to implement in practice public policies – the ideas, which are legally stated, legitimate and are the forms of the transformation of the Common Good into specific tangible outputs and intangible outcomes important for citizens

Dependency Dependent on the struggling political groups and are interested in some of them – in those, which were supported by majority

Draw their legitimacy from the common good (in the plain and direct meaning) of the respective community and feel much safer and more legitimate when the community can produce the demands – which outputs and outcomes they prefer

Kind of interest represented

Represent group interests, legitimizing them by the idea of their majoritarian support.

Represent general interest, legitimizing it by the idea, that it is a result of general discourse and consensus.

The main feature

The main feature developed due to nature and functions – the ability to manoeuvre in instability, to transform the general functions under the interests of the winning majority

The main feature developed due to nature and functions – the desire of the broadest possible legitimation and maximizing stability (hence – the often-encountered extreme, called “red tape”)

Max Weber created his theoretical constructions more as “ideal types”

for theoretical reflection than practical tools that are to be implemented. So, I would use these ideas of M.Weber under some practical and modern interpretations, produced in the modern theory of public administrative

42

management, namely, via the research of the Professor at the Parisian University of Sorbonne-Pantheon and the French National School of Administration, Gerard Timsit, presented in his fundamental work “Theory of Administration”1 (see also2). Here he shows different levels of implementation of the Weber’s principles in administration culture of different states, compares tools that are used to implement these principles and shows the results of the difference in their implementation for preserving the principles of democracy, states’ efficiency and citizens’ involvement under each of the studied level.

Thus, I sum up the most important points of this part: administration, which serves the Common Good, being organized in a proper way, would contribute to the community's development, because it is interested in the existence of a consolidated community position, which is necessary for the administration legitimacy.

I mention the notion “the proper way of the administration organization”, treating this idea as a need of the corresponding forms or transformation of the institution of administration, because an institutional change, as I described above, make people to repeat constantly interactions in a way set by the changed institution. This constant repeating of interactions, supported by functional necessity of these interactions (this necessity is not, of course, to be reduced to the salaries) produces the changes in values and culture, that continue to influence the interrelated structures – in our case – the corresponding local community.

But we have no knowledge, which specific features of the institution of local self-government administration could be useful to cause the corresponding changes in a local community; if these features really can be provided by the Europeanization processes; if these ideas could be proved by empirical comparative studies; how we can measure the corresponding potential of the institute of local self-government administration.

1 Timsit G. Theorie de l'administration. – Paris: Economica, 1986. – 375 p. 2 Timsit G. Administrations et Etats: etude comparee. – Paris: PUF, 1987. – 247 p.; Handbook of Public Administration / Ed. by B.Guy Peters and Jon Pierre. – London: Sage, 2003. – 640 p.

43

So, the conclusion from what has been said above can be as follows: the main aims of the further research of the issue should be conducted over the logics, described below.

• Theoretical analysis of the possible specific institutional features of local self-government administration that could cause the inner connections, consciousness of common problems and goals and active engagement of a local community. The leading methodology of this analysis could be the “Methodology of Expert Examination of Regulations using the Problem-Solving Method”1, which was developed in 2006-2012 in Ukraine by specialists from Ukraine (Tetiana Fuley) and from the US (Laura Lucas and Lorna Sayts) with the suport of the Ukraine Parliament Support Programme II, which was implemented by Ohio State University, the University of Indiana and the US Agency for International Development (USAID) with the participation of experts of International Consortium for Law and Development (ICLAD). The initial provision for this methodology is understanding that the problems of development of a state are generated by repeating institutionalized behaviour, i. e. institutions; this methodology is based on the social value of normative regulations that, creating certain attitudes, form the condition of social equilibrium; the methodology tries to answer the question, whose and which behaviour causes the problem and how to fix the behaviour by legal regulations. This methodology, combined with the modelling methodology, can not only help to describe possible specific features of the institution of local self-government administration that could cause the desired changes in a local community, but to model the general features of the needed shape of the respective institution.

• Comparative analysis of the created model with the list of demands of the EU, Council of Europe and other influential European organizations 1 Використання методики вирішення проблем для розробки та експертизи проектів нормативно-правових актів / Тетяна Фулей, Лора Лукас, Лорна Сайц. – К.: [ФОП Москаленко О. М.], 2013. – 256 с. http://www.academy.gov.ua/doc-/mijnar_spivrob/mizhnar_proekt/pdf/psp2/metod.pdf; Розробка проектів нормативно-правових актів відповідно до методики вирішення проблем – К., ФОП Москаленко О. М., 2012. – 180 с. http://www.academy.gov.ua/doc/mijnar_spivrob/mizhnar_proekt-/pdf/psp2/norm_pr.pdf; Проведення експертизи проектів нормативно-правових актів з використанням методики вирішення проблем / Тетяна Фулей, Лора Лукас, Лорна Сайц. – К.: [ФОП Москаленко О. М.], 2013. – 168 с. http://pdp.org.ua/images-/stories/materials/Posibnyk_Proveden_ekspertyzy_NPA_Jan2013.pdf

44

to the regulations, forming the institution of local self-government administration.

• Empirical comparative case studies of the changes in the institution of local self-government administration in the selected states, as well as of possible correlation of these transformations with the condition of local communities in these countries. This analysis would include the distinction of changes, caused by the general development and transformation processes and caused by the Europeanization process, based on the well-known methodology, developed by F.Schimmelfennig and U.Sedelmeier1, who make this distinguishing at the intersection of two scales: a scale of three models of the EU rules reception (the models of “external stimuli”, “social education” and “taking lessons”) and a scale of different levels of reception (formal, behavioural, communicative (discursive).

• Preparation of methodical recommendations toolkit for transformation of the institution of local self-government administration.

• Working out of benchmark criteria and procedures for self-assessment and expert assessment of corresponding transformations of the institution of local self-government administration. This system of benchmarks and indicators that would, from the one side, help to make prognosis of potential effects of any institutional transformation in the sphere of local self-government administration on the capacity building of a local community, and from the other – that would give a possibility to measure the practical results, effects of these transformations, would resemble the developed and detailed benchmarking system created by the OECD2 and the EU joint programme SIGMA for assessment of the system of public administration in transitive states, but is to be targeted at the corresponding area. And the results of the empirical case studies will be a base for stating benchmarks used in this system.

1 Шіммельфенніг Ф., Зедельмаєр У. Європеїзація Центральної та Східної Європи: Наук. видання. – Київ: Юніверс, 2010. – 288 с. 2 Local Governance and the Drivers of Growth. – Paris: OECD, 2005. – 282 p.; A Guide to Evaluation of Local Development Strategies. – Paris: OECD, 2009. – 75 p.

45

1.3. THE ACTIVITY OF LOCAL COMMUNITIES AS THE CONDITIONS OF CREATION OF SUSTAINABLE

TERRITORIAL DEVELOPMENT1 An unfavorable ecological situation requires solutions of many

problems related to the protection and improvement of the environment. State environmental policy requires public awareness and scrutiny. Disadvantages of the mechanisms of legal regulation, low environmental awareness, ecological culture of the population, lack of awareness from the citizens of the environment, and ignorance of their own environmental rights require joint efforts of the public and local governmental power structures to prevent deterioration of the ecological situation in the region.

Interaction of community, government, and private sector is the way to solve existing environmental problems. In order to enhance public ecological policy required at the national level, it’s necessary to develop a comprehensive national concept of ecological awareness. This includes implementation of the following actions:

- The highest state authorities of Environmental Protection should increase their efforts on implementing an effective mechanism for financial support of NGOs through the state environmental grant programs;

- The local authorities on environmental protection should involve scientists and experts in developing and implementing environmental education programs in the region;

- The improvement of the financing of environmental projects at the regional level to initiate series of practical workshops and seminars to exchange experiences of NGOs with regional authorities and government agencies on the development of international cooperation in order to attract foreign investment;

- The engagement of the public in the implementation of environmental actions to strengthen public awareness. Within this area to local governments, state environmental agencies should use the municipal media for prompt coverage of environmental issues. The environmental 1 The author of subsection: Chechel Anna, Doctor of Economic Sciences, Associate Professor, Head of the Department of Public Administration and Management of the Donetsk State University of Management, Mariupol, Ukraine; Tarasenko Olena, PhD in Economics, Senior Lecturer at the Department of Finance, Accounting and Auditing in Donetsk State University of Management, Mariupol, Ukraine

46

updates should be done using expedient electronic discovery environmental portals on web resources of state structures.

- The encouragement of citizens to engage in energy-saving technologies at home, including relevant ministries to develop a program of public lending alternative heating systems, private and public buildings and so on.

Unfavorable ecological situation in industrial regions requires the solution of many environmental problems. State ecological policy requires public control, especially in the processes of use of the natural capital of the territories. Among the actual problems, we can still name:

drawbacks of the mechanisms of legal regulation, low environmental awareness and ecological culture of the

population, lack of awareness of the environmental problems amongst citizens,

and ignorance of their own environmental rights that require joint efforts of the public and local governmental power structures to prevent deterioration of the ecological situation in the region, which is the violation of people’s ecological rights for life and use of natural resources in ecologically acceptable conditions.

The work on effective management instrument creation in this field of activity is carried out in many countries of the world. Scientific research on solving the problem of social and economic development of the regions as well as their resource base strengthening were carried out by such famous scholars as: F.D. Zastavnyj (highlighted the problem of social and economic, ecological, demographic and other kinds of repressiveness in Ukraine1, Zajtseva L.M. (grounded new methodic approach that allows to typify the regions according to their social and economic development)2, Topichev O.G. (defined negative tendencies of deepening of the regional disproportions and inconsistency of social and economic development of the regions)3. Gerasimchuk Z.V., Vakhovich I.M. (developed organizational 1 Заставний Ф.Д. Проблеми депресивності в Україні (соціально-економічної, екологічної, демографічної). – Львів: Вид. центр ЛНУ ім. І.Франка, 2006. – 348 с. 2 Методологія комплексної оцінки рівня соціально-економічного розвитку області та її адміністративно-територіальних одиниць / Л.М.Зайцева, В.В.Антонов, С.М.Серьогін, В.О.Федюшичев, І.Е.Польська, С.О.Качанов; За наук. та заг. ред. Л.М.Зайцевої. – Донецьк: ДРІДУ НАДУ, 2003. – 132 с. 3 Топчієв О.Г. Регіональний розвиток України і становлення державної регіональної політики/ Топчієв О.Г., Безверхнюк Т.М., Тітенко З.В. – Одеса: ОРІДУ НАДУ, 2005. – 224 с.

47

and economic mechanism of strategy formation of social and economic development of the region)1.

However, the creation of a reliable and efficient management mechanism of the activity of local community is able to ensure balanced solution of economic tasks and environmental protection problems. Also, restoration of the natural capital of the territory with the aim of satisfaction of the necessities of life of the present and future generations remains the main task of the environmental protection management both in Ukraine and abroad, which determines particular importance of the problem for further investigation.

In addition, to determine the pre-conditions of engagement of local communities in the process of natural resource use and formation of the conditions for steady development to consider the notion of sustainability of economic development of community within the aspect of participation of population in the solution of the problems of efficient use of the resource potential of the regions.

The present-day condition of the environment is the result of activity of all the subjects of the region: citizens, enterprises and state governmental power structures. According to the volume of toxic emissions, the main polluters and natural resource users are enterprises. State structures realize the programs that oblige industries to invest a proportion of their income in the system of environmental protection. However, the function of economic stimulation is not fully developed and does not bind the enterprises – polluters to change their production and environmental technologies. Under such conditions the relations between state regional authorities and the enterprises – polluters require regular control from the community. The aim of such control is to prevent different kinds of violations (acts of corruption) and inform the authorities about the priority resource involvement for the solution of ecological problems or minimization of the industrial emissions and economic crisis prevention2.

While considering economic situation in Ukraine, it is necessary to point out that it was changing according to the volume and intensiveness of industrial production. The population’s dissatisfaction with the 1 Варналій З.С. Регіони України: проблеми та пріоритети соціально-економічного розвитку / За ред. З.С.Варналія.– К.: Знання України, 2005. – 498 с. 2 Лазарчук П. Основи економічного розвитку громади – навчальний посібник, м. Львів, 2012

48

environmental condition was observed mostly from 1994 to 1998, when production loads of heavy industry enterprises were high, as well as the manufacturing of goods. Not by accident, in the 1994 -1998, the number of the respondents who underlined considerable deterioration of the environment fluctuated between 71-78% (table 1). The dynamics of positive changes were noted by an insufficient number of the respondents (2-5%). With the general positive tendency as to the decrease in negative evaluations of the environment that in 2016 went down by 32.8%, compared to 1994, the level of those who note deterioration of the environment is still high (in 2008 – 62.9% of the respondents, in 2016 – 51.4%).

Table 1 Evaluation of the general ecologic situation in the country in 1994-2016, %

(Percentage of all the respondents)1

1994 1996 1998 2000 2002 2004 2008 2010 2012 2016 1. Deteriorated considerably 57.0 48.6 47.0 31.3 28.0 17.9 13.0 17.6 20.3 20.3

2. Slightly deteriorated 20.9 23.9 23.8 27.8 25.6 24.3 18.7 24.2 27.2 24.8

3. Remained stable 16.3 24.2 25.0 37.1 43.0 51.6 62.9 54.2 48.5 51.4 4. Slightly improved 1.4 1.9 2.8 2.7 1.8 4.5 4.5 3.4 2.9 2.6

5. Considerably improved 0.7 0.8 0.6 0.3 0.5 0.6 0.5 0.6 0.7 0.5

Didn’t answer 3.7 0.7 0.8 0.8 1.0 1.1 0.4 0.1 0.3 0.3 Average score 1.6 1.8 1.9 2.1 2.2 2.5 2.6 2.5 2.4 2.4

The given evaluation of the ecological situation in Ukraine which was

determined by the place of residence from 2002 to 2016 (table 2), shows positive tendencies as to the change of unfavorable condition. For eight years the negative evaluation that included considerable and slight deterioration decreased from 49.2% in 2002 to 41.1% in 2016. While positive evaluation, that characterize relatively favorable and completely favorable situation, increased from 18, 6% in 2002 to 37.5% in 2016 (almost by 20%). The proportion of negative and positive evaluations is still in favor of negative ones, which were noticed by 41.1% of the respondents. Positive evaluation was given by 37.5% which is 3.6 points less (table 2). 1 Інтернет – спільнота «Промислова екологія» [Електронний ресурс]. – Режим доступу: http://eco.com.ua/, http://newecolife.com.ua/news/203-svt-pdrahuvav-zbitki-vd-katastrof.html

49

Table 2 Evaluation of the ecologic situation by the population of Ukraine

according to the place of residence 2002-2016, %1

How do you assess the ecologic situation in the settlement where you live? Options of answers 2002 2004 2006 2008 2012 2016 1. Considerably unfavorable 19.2 10.8 11.4 11.3 13.0 10.2 2. Unfavorable 40.0 36.8 32.3 35.1 33.6 30.9 3. Difficult to say 22.1 24.2 24.7 23.2 15.6 21.3 4. Relatively favorable 17.3 25.8 27.1 28.1 32.4 33.4 5. Completely favorable 1.3 2.3 4.5 1.9 5.2 4.1 Didn’t answer 0.1 0.1 0.0 0.4 0.2 0.1 Average score 2.4 2.7 2.8 2.7 2.8 2.9

Presence of unfavorable ecological condition is predetermined by

particular factors of environmental pollution in residential areas. The most concern is raised by the residence pollution noted by 48.5% of the respondents in 2016 (table 3). The people perceive this unfavorable factor as the worst inconvenience and danger for their lives. The second place among the inconveniencies and dangers is occupied by air pollution by the traffic exhaust fumes, which has increased from 2004. The third place among the unfavorable factors that are risky for life of the population was attributed by the respondents to low quality food because of the high level of harmful ingredients in them. From 2004 to 2016 the growth of these negative factors was observed. In 2016 almost 38% of the respondents were worried about low quality of food.

Table 3 Evaluation of the dangers of environment pollution in the place of

living in 2002-2016, %2

Which factors of environment pollution of the place you live in worry you most? Options of answers 2002 2004 2008 2010 2012 2016 1. Air pollution with chemicals and production emissions 47.3 34.7 34.3 33.1 32.3 31.4

2. Air pollution with traffic exhaust fumes 48.0 41.9 39.9 42.5 42.3 43.7

3. Water pollution with chemicals and production toxic wastes 46.1 32.6 32.0 29.8 29.3 28.1

1 Корпоративна соціальна відповідальність Intel в Україні: розвиваючи інформаційне суспільство в Україні, готуючи нові покоління молоді до економіки знань [Електронний ресурс]. – Режим доступу: // http://www.csr-ukraine.org/korporativna_socialna_vidpovidaln2.html. 2 Корпоративна соціальна відповідальність Intel в Україні…

50

Continued Table 3

Which factors of environment pollution of the place you live in worry you most? Options of answers 2002 2004 2008 2010 2012 2016 4. Soil pollution with chemicals and production toxic wastes 32.4 21.6 22.2 17.8 20.2 21.7

5. Pollution of the territory you live in with litter and other wastes 54.8 46.7 49.7 51.1 48.5 48.5

6. Radioactive contamination 35.7 28.5 23.7 26.2 22.0 19.9 7. High level of noise 16.7 13.2 16.2 16.1 17.7 15.8 8. High level of harmful ingredients in food products 40.4 28.6 28.9 29.1 36.1 37.9

9. Nothing cause serious worries 9.7 12.4 14.8 13.2 14.2 16.1 10. Other 0.7 1.2 0.4 0.9 1.3 0.4 Didn’t answer 0.2 0.3 0.2 0.6 0.3 0.1

Pollution of air, water and soil with chemicals and wastes from

production occupied the fourth, fifth and sixth place according to the negative evaluation of the respondents. In 2016 air pollution worried 31.4% of the respondents, water pollution – 28.1% and soil pollution – 21.7% accordingly. In all the cases positive tendency of 11-18 point decrease in the risk of pollution is observed over the eight last years.

Radiation pollution is ascertained by almost 20 % of the respondents in 2016. This is extremely dangerous for health and life of the population. It is quite high in spite of its considerable decrease compared to 2002, when radioactive contamination worried 35.7% of the respondents. Almost unchanged is the level of such negative factor as the noise level that was noted by 16% of the respondents.

Positive evaluation of the environment was given by 16.1% of the respondents in 2016. Their number compared to 2002 increased by almost 6%. Thus, according to the level of importance and danger for population, the rating of the negative factors is as follows: pollution of the territory with litter and dirt – 48.5-54.8%; air pollution with transport exhaust fumes 43.7-48%; high level of harmful ingredients in food products – 37.9 – 40%; air pollution with chemicals and production emissions – 31.4 – 47.3%; water pollution with chemicals and production toxic wastes – 28.1 -46.1%; soil pollution with chemicals and production toxic wastes – 21.7 – 32.4%; radioactive contamination – 19.9 – 35.7%; high level of noise – 15.8 -17.7%.

51

Evaluation of the respondent’s satisfaction with the level of sanitation and livability of streets, parks, environment (table 4) showed considerable level of dissatisfaction. In 2016 general level of livability and sanitation was perceived as dissatisfactory by 57.4% of the respondents and compared to 2002 decreased insignificantly (by 3.5). As to the condition of the yard, the percentage of the dissatisfied (37.6%) was almost the same as that of the satisfied, but general evaluation improved. Harmful and unfavorable environmental conditions occupied second place among the reasons that can make the respondents move according to 16.7 % that were questioned in 2016, but in the 1990-s, they occupied first place. This shows some improvement of the environment in Ukraine; however, the problems haven’t been totally solved yet.

Table 4 Evaluation of improvement and sanitation

(of parks, streets, environment) and personal yards in 2002 -2016, %

Even very limited sociological data on the evaluation of ecological

security by the population is sufficient in determining the main direction that should be taken of state, regional and industrial policy towards the solution of the abovementioned risks and dangers. They are:

- To overcome the pollution of the territories, improve the level of sanitation, introduce environmentally friendly and economically feasible recycling;

To what extend are you satisfied with livability and sanitation of parks, streets, environment

Options of answers 2002 2004 2008 2010 2012 2016 1. Mostly dissatisfied 60.9 54.4 61.6 62.0 60.7 57.4 2. Difficult to say 25.6 26.3 23.6 21.4 22.5 25.7 3. Mostly satisfied 13.3 18.9 14.8 16.2 16.6 16.9 Didn’t answer 0.2 0.3 0.0 0.4 0.2 0.1 Average score 1.5 1.6 1.5 1.5 1.6 1.6 To what extend are you satisfied with livability and sanitation of the yard? Options of answers 2002 2004 2008 2010 2012 2016 1. Mostly dissatisfied 43.4 43.0 48.1 47.3 43.2 37.6 2. Difficult to say 24.8 21.9 21.2 20.6 23.3 24.8 3. Mostly satisfied 31.4 34.3 30.6 31.6 33.3 37.4 Didn’t answer 0.5 0.7 0.2 0.5 0.3 0.2 Average score 1.9 1.9 1.8 1.8 1.9 2.0

52

- To reduce air pollution by transport exhaust fumes, chemicals and production wastes;

- To produce food products with low levels of harmful ingredients; - To reduce the pollution of water and soil; - To decrease the level of noise. Most of the respondents feel uncomfortable under the conditions of an

unfavorable ecological situation, and most of them are ready to move to a different place. Ecological dangers cause negative social consequences that are revealed in the reduction of natural resources for people’s existence, deterioration of the health condition of the population, and the decrease of conditions and possibilities for reproduction and development of the human potential.

Thus, social and economic factors of sustainable development, according to an evaluation of the population of Ukraine, are not thoroughly studied and managed.

They are not observed nor studied through sociological research and combined with statistics evaluations. However, they do provide useful and unique information that most accurately represents the expectations of the population of Ukraine as to the optimistic perspective of the development of the country in regards to the establishment of sustainable development. It is necessary to include to the project of the Concept of Sustainable Development the provision as to the analysis of thoughts and evaluation of the population of the conditions and perspectives of sustainable development by the sociological monitoring of steady development and taking into consideration the results in the process of managerial decision-making on all levels.

This situation is transformed to the state level, which makes it necessary to define state leverages to change the situation in the regions of Ukraine in ecological, economic and social spheres and form the sustainable development. Defined in the priority directions sustainable development of the region should have a place in the State strategy of regional development and, at the same time, determine the needs for changes in economic, social and ecological fields. For more accelerated and efficient transition of Ukraine to steady development it is appropriate to primarily implement it in the regions with the highest level of risks and dangers, where the achievement of sustainable development will have an effect on the processes in Ukraine as a whole. Human and natural

53

resources as well as demographic and ecological conditions have in its quantity, quality and importance, strong influence on the solution of the task of ensuring a sustainable development of Ukraine. For this reason, state power structures should initiate an implementation of organizational and managerial measures aimed in motivating the regions to introduce an economy based on the principles of sustainable development.

Compromise can be reached by the way of undertaking by the subjects of economy of social responsibility for the use of natural resources to present day and future generations, introduction of new innovative technologies according to the principle of closed cycle, sustainable development conditions creation. The research of sustainable development, which presupposes keeping within particular limits, normative acts and balanced economic, social and environmental components, determine systematic approach to creation of appropriate conditions and possibilities with the use of social responsibility. In connection with it social responsibility is defined and actualized on personal, industrial and national levels. Understanding by the world community of the importance of social responsibility in the process of sustainable development formation was favorable for signing of a number of international agreements, more prudent attitude to environment through spreading of innovative technologies in the field of energy saving, industry, etc. But, 19 years after signing constructive legal international agreements, there still has not been sufficient steps made forward in this field. Expected responsibility in the activity of the states was not reached and the threat of the natural resource destruction is growing1.

Society and its members hold the authority in social responsibility, because their activity or inactivity directly affects the economy. The main levels of social responsibility are: individual (defines the level of citizen’s maturity and creates the main basis for other levels), group (corporate social responsibility, social (transfer of social responsibility of society to future generations).

The problem of defining forms of social responsibility is further researched and generalized by scientists who distinguish two models of social responsibility: 1 Закон України «Про стратегічну екологічну оцінку» // (Відомості Верховної Ради (ВВР). – 2018. – № 16, ст.138 Електронний ресурс]. – Режим доступу: http://zakon2.rada.gov.ua/laws/show/2354-19

54

- Ethical, which implies domination of external levers of influence on the subject of social responsibility by the way of limitation of his rights and freedoms and is used only in the legal and normative field, regulating the subject’s activities with the help of sanctions;

- Liberal and democratic, which implies the concordance of aims of all the participants of the social interaction and defining on this basis of the mutual aim as an active mechanism of social responsibility improvement and sustainable development acceleration.

The criteria of social responsibility efficiency are obligatory structural components that characterize the final result of social and environmental responsibility realization in the process of achieving the aims of sustainable development. Thanks to the criteria of efficiency it is possible to determine the demand for social responsibility as to the sustainable development and final results in particular directions. The abovementioned criteria that create the condition of formation and implementation of social responsibility can be pointed out as follows:

- Rational attraction, use and utilization of the natural resources; - Prevailing use of highly economical resource saving technologies in

the process of production; - Introduction of the efficient self-regulation mechanisms, that ensure

automatic adjustment of the social and economic system to sustainable development;

- Improvement and strengthening of the population’s , prolongation of normal life and labor activity;

- Improvement of the educational, professional, social and cultural level of the population;

- High level and quality of life of the population; - Observation of human rights and freedoms, possibility of choice in all

spheres of social life; - Active participation of the citizens’ associations in the process of

transition of Ukraine to sustainable development; - New strategic guidelines of the social policy with orientation towards

the realization of the requirements of social responsibility, activation of labor and creative work;

- Human, intellectual and social capital formation; - Realization of the principles of innovativeness and sustainability in

economic policy;

55

- Implementation of the mechanisms of social responsibility for the realization of the principles of sustainable development on all levels of management (state, regional, production and personal).

Thus, to achieve the aims of sustainable development, even more purposeful research on social resources to direct managerial impact on their use for the sake of perspectives of the development of Ukrainian nation and humanity is required. For this reason, one of the most important parts for the successful economic development of the community (EDC) is its sustainability, which means saving the results of development for a long period of time. Sustainability in itself is a complex notion and includes three main elements, such as: striving to solve social problems and commitment to the idea of social equality, understanding that development is a wider notion than ordinary economic growth, and considering ecological problems (environmental protection), sustainable development means satisfaction of the present day needs without causing harm to the ability of further generations to satisfy their needs and necessities.

Picture N 1 presents the model of participation of the local communities in the processes use of natural resources, It shows the link between the resource potential of the regional production, community, and using of economic products. It also shows the interaction of the power structures and the population to the problems of control of industrial pollution of the environment through activity of the industrial subjects of economy.

When it goes about economic development of the community, it is possible to distinguish several kinds of sustainability:

Process and program sustainability. It is about the possibility of creating education and development in the community. While considering the problem of community development the main problem is how the community is going to keep the process after the financing is stopped. The process that keeps going only within the period funding is not sustainable. Communities that depend on governmental or other external funds, or hired experts, who start, perform, and maintain the processes of development in the community also cannot be sustainable.

56

Res

ourc

e po

tent

ial o

f the

loca

l co

mm

unity

Natural capital

Human capital of the community

Industrial capital of the community

State government and local authorities

Envi

ronm

enta

l pro

tect

ion

and

ecol

ogic

al p

olic

y

Sust

aina

ble

econ

omic

dev

elop

men

t of t

he

com

mun

ity

Proc

esse

s of p

rodu

ctio

n

Proc

esse

s of u

tiliz

atio

n an

d sa

tisfy

ing

of th

e so

cial

and

ec

onom

ic n

eeds

of t

he p

opul

atio

n

Economic sustainability

Ecological sustainability

Political Sustainability

Program sustainability

Social and cultural sustainability

Population (citizens, local communities)

Elected public representatives in the local bodies of power

Public media

Public control

Industrial pollution

Economic product

Recycling, secondary production

Process sustainability

Public organizations

State control

Private initiatives

1. Model of participation of local communities in the process of using of natural resources under the conditions of social and ecological

responsibility. Under-evaluation of the role of community by state by keeping passive

approach of the population to the environment increases the accumulation of the extensive ecological crises into enormous regional ecological disaster. To the main directions of monitoring of efficiency of the mechanisms of public engagement in the solution of environmental problems, planning and implementation of environmental policy belong: creation of ecological public organizations; public expertise, public inspection; evaluation of impact on the environment.

The authority of public organizations in the field of environmental protection are fixed by the Law of Ukraine “On environmental protection”1, the Law of Ukraine “On ecological expertise”2 and on other legal acts.

1 Закон України "Про охорону навколишнього природного середовища" // Відомості Верховної Ради України. – 1991. – № 41. Електронний ресурс]. – Режим доступу: http://zakon2.rada.gov.ua/laws/show/1264-12 2 Про оцінку впливу на довкілля // Відомості Верховної Ради (ВВР). – 2017 – № 29, ст.315 [Електронний ресурс]. – Режим доступу: http://zakon5.rada.gov.ua-/laws/show/2059-19

57

In the process of state ecological program realization, there is a possibility of creating cross-sector committees of which the representatives of public organizations, state structures, business, educational and scientific establishments are becoming the members.

Biosystems sustainability is aimed to maintain the environment in good condition. This includes the quality of air, water, and soil, as well as taking care of the population of fish and wild animals, forests, internal water bodies, etc. All these problems are connected with sustainability of the environment. Community is at the same time both the user and the source of pollution of the environment on one hand, and heir of the ecological consequences of the use of resources on the other one.

Population is interested in a quick reaction to environmental factors are pre-conditions of ecological problems on the territory of their residence. Only public (members of particular local communities), as a result of their closeness to the epicenters of local and regional environmental problems can carry out two main functions as to the protection of the environment:

- Personal environmental protection activity (landscaping, improvement, reconstruction of the water-supply system, sewerage, the use of alternative sources of heating of the private houses, private car use reduction);

- Control of the implementation of more environmentally friendly resource saving technologies at the enterprises of the region.

Within the aspect of the performance of these functions, the formation and development of environmental consciousness of the population is the most important factor for the change of the environment of the region and for keeping an ecological balance between the society and nature.

Social and cultural sustainability is about how the activity on development influences the society. There are a lot of different kinds of development that can benefit and, at the same time, harm the society. For example, financing of the particular project can lead to discord in the society as a result of desire to control the process of profit making.

An important problem on the way of active participation of the public in solving environmental problems still is the absence of a complex systematic approach to the formation of the ecological culture. The practice of environmental education requires be introducing and expanding in all educational institutions (kindergartens, schools, higher

58

education). Taking into consideration peculiarity of the environmental condition of the region. It is appropriate to introduce the course of environment protection in the higher educational establishments of the region.

Economic sustainability is about ongoing creation of assets and wealth. Economic sustainability refers not only to the creation of assets, but also to their fair distribution so that all the members of the community could satisfy their needs.

The concept of vulnerability of population and objects of economy to natural and industrial disasters is the key for understanding the interrelation mechanism of extreme environmental situations and economic development through the understanding of possible risks of emergencies as a whole. Especially acute is this problem in industrial regions, for example, in Donbas, an industrially developed and simultaneously loaded region.

It occurs, that the severity of economic losses from natural and industrial disasters depends, first of all, on the type of social and political system and economy. Lately in Ukraine there have been formed sharp divergence between the regions according to the level of their accumulated economic potential, volume and intensity of economy, namely, the difference between donors and subsidized agricultural and recreation regions1.

Political sustainability is about the processes by the way in which decisions are taken and power is organized and distributed. The process of the society development can’t be called sustainable, if the political forces that act against it are stronger than the political forces that support it. From this point of view it is necessary to get the support of political leaders and organizations that control political and economic environment in which the community is being developed. An important problem of the developing communities is harmonization (concordance) of its environmental, social and economical, political and cultural needs.

Interaction of public, state and business is the way of solving present environmental problems. With the aim of improvement of social and environmental policy it is necessary to develop a concept of national

1 Закон України "Про охорону навколишнього природного середовища"…

59

environmental awareness on the national level. This includes the following actions:

- Strengthening the work of the government on environmental protection by the way of creation of the effective financial support mechanism of the public organizations through state environmental grant programs;

- Engagement by the local authorities of the scientists and experts in the development and performance of the programs on environmental education in the region and protection of the environment;

- Improvement of financing of the environmental protection projects on the regional level, initiation of the series of practical seminars to exchange the experience of public organizations, regional authorities and state organizations on the development of international cooperation with the aim of foreign investment attraction;

- Engagement of the representatives of the local community to realization of the environmental protection actions on strengthening social awareness. In this field, the local authorities, state environmental protection structures should use municipal media for quick highlighting of the environmental problems. To spread the information about the environment it will be appropriate to open environmental portals on the web-resources of the state structures;

- Encouraging of the citizens to use power saving technologies in their everyday life, among them, within the frame of development and realization of the program of state crediting of the alternative systems of heating in private and public housing.

At the same time, sustainability is a process. A process for the use of resources of the community in such a way, that present and future generation of its members would be able to achieve high level of economic social and environmental life.

For this communities should understand: who we are, what we have, what we are able to do and who can help us.

The level of influence of the society on the environmental policy depends on two main factors:

- Conscious desire of citizens to influence the improvement of the local environment (level of Eco-culture)

- Creation of the conditions on state and local levels for participation of the citizens in eco-policy.

60

The population is ready to participate in the activity that leads to the improvement of the environment, but the awareness of the population of the environmental condition and possibilities as to decision making and acting in this field is not enough. It is appropriate to observe two main approaches to the interaction of the mass media and power bodies: pluralistic model and the model of domination. Within the frame of pluralistic model, media is presented as a social institution that itself develops strategy and tactics of interaction with other political institutions on the basis of own criteria and aims. On the other hand, the audience also has its own aims, on its basis, perceives, and understands the information that is received with help from the media. This model is, without doubt, much more perspective from the point of view of research, than the dominating one, that reduces sophisticated network of interactions and negotiations to one-line scheme: “power structure-business elite – mass media- audience.”

A significant step forward for protection of the environment as well as democracy development that develops the rights of the citizens to participate in the formation and realization of environment policy was Aarhus Convention. This convention was signed by 35 countries of Europe and central Asia at the conference of the Ministers of Environment of Europe in Aarhus (Dane), in June 1998. Later five other countries joined the Convention. Now the countries are to take measures as to its ratification and performance, which will contribute to social stability because people will know that the state is interested in their opinion. All the citizens will be able to consider themselves as the participants of democratic processes. The process of other countries joining the Convention keeps going.

The efficient use of the Convention is not a luxury. The condition of the environment in Europe is not, in general, improving. Governments need to engage ecological organizations and individuals in the development of policy that can rely on social support. Aarhus Convention is important for state bodies of power as well as for citizens and ecological nongovernmental organizations.

In every country there are special governmental or public authorities that are to update, collect and spread the information on the state of the environment. This, first of all, is the Ministry of Environment Protection, Ministry of Health Care, and other similar authorities that exist in most

61

European countries. People can apply to any official executive or authority that is aware of the information on the condition of the environment. Any state authority is to respond to the public enquiry. Aside from this, Regional and local authorities are to provide the information on request. Even nongovernmental authorities that perform civil functions are to provide the information. Thus, government bodies are to:

- Collect and spread the information on the environment for the public;

- Inform the public on the appropriate authorities who are aware of such information;

- Raise the level of public awareness, especially of the problems, connected with the access to the information;

Any citizen, group of citizens or their organizations, government officials and commercial enterprises can apply to the Court (or similar establishments) to protect their environmental rights. The person, who requested information and didn’t receive it, or received inadequate response, can sue. Thus, any individual who was not allowed to participate in decision making in regards to the environment can sue. Also, any person can sue other individual (and enterprises) or authority (for example, government official or department) for violation of national environmental laws. Any individual can sue for the violation of “right of every person to live in the environment beneficial for health and well-being”.

Nongovernmental organizations can also apply to the Court. The only requirement in most of the countries is for the aim of the organization to be environmental protection1.

Conclusions and perspectives of further research Long- term perspective results of the fulfillment of the Strategy of

state policy on the assistance to the civil society development in Ukraine2 to 2020 are the increase of the level of mutual trust and interaction between the executive bodies, local authorities and public institutions;

– ensuring public institutions participation in the formation and realization of the state and regional policy, creation of the conditions for wide representation of public interests by the executive and local 1 Інтернет – спільнота «Промислова екологія» [Електронний ресурс]. – Режим доступу: http://eco.com.ua/, http://newecolife.com.ua/news/203-svt-pdrahuvav-zbitki-vd-katastrof.html 2 Указ Президента України від 24 березня 2012 року № 212/2012 «Про стратегію державної політики сприяння розвитку громадянського суспільства в Україні»

62

authorities , giving regular consultations (dialogue) to public on the most important problems of the society and state;

– implementation of public control of the activity of the executive bodies and local authorities;

– strengthening the influence of the public institutions on managerial decision making and their realization;

– ensuring favorable legal, financial, taxation and organizational conditions for carrying out charity and volunteer activity as well as the other forms of public activity;

– improvement of the level of public culture. Within the frames of the strategy and its realization attention should

be paid to the development of methods and mechanisms of public activation in the problems of their interrelations with government and local authorities. It needs for the efficient using of the natural capital of the regions and creation of decent livelihood for the further generations of the citizens of the local communities under the conditions of sustainable development.

International experience of the activity on ensuring sustainable development shows the considerable role of public associations in this process. On the level of international organizations the main directions of interaction of public associations with other subjects of sustainable development are as follows: strategy development, decision making in the field of sustainable development, their fulfillment and evaluation of the results achieved, financial and administrative support of public associations activity and their particular projects by international organizations, and providing access to authentic timely data and information to ensure the efficiency of their programs and measures to support sustainable development. Among the functions of public associations that are performed within the frames of their activity on ensuring sustainable development on the regional and local levels are: provision of services, implementation of humanitarian functions, bringing issues that worry population to the government, control of the policy and fulfillment of the programs, facilitation of the participation of the interested parties of the civil society on the level of local community, etc.

63

1.4. THE SOCIAL COMPONENT OF SUSTAINABLE DEVELOPMENT IN THE LOCAL ENVIRONMENTAL POLICY1

The growth of the world's population and the production scale,

together with irrational consumption patterns, is becoming an increasingly heavy burden in the processes of region life-support potential restoring, as well as countries and the planet as a whole. It is expected that by 2020 the world population will exceed 8 billion people. However, currently 60 percent of this population lives in coastal areas, and there are 65 percent of cities with a population of more than 2.5 million people located on the coast of the seas and oceans; some of them are already at or below the current sea level. These interacting processes affect the use of atmospheres, land, water, energy and other resources. Therefore, it is necessary to develop strategies to reduce the negative impact of anthropogenic activities on the environment and the negative impact of climate change on the world's population2.

This issue is of particular importance in Ukraine, where, in the context of the institutional support system reforming and the lack of adopted mechanisms for regulating this activity, the united territorial communities of fast-growing cities face serious environmental problems. Growth and expansion of the urbanized areas boundaries make it necessary to pay more attention to the peculiarities of the local government activity and the mechanisms for the economic activity management formation within the territorial communities, taking into account the sustainable development needs3.

A key element of this complex relationships system is the human factor that has to be properly taken into account in the development and 1 The author of subsection: Tarasenko Denys, PhD in Public Administration, Associate Professor, Dean of the Faculty of Law and Social Management, Donetsk State University of Management, Mariupol, Ukraine; Sukhova Кseniia , Deputy Mayor of the City on the Issues of the Executive Bodies of the Mariupol City Council, Mariupol, Ukraine 2 Kolodiy A. Social capital and political participation of a citizen in the era of change // The responsibility of a Christian in modern society. Materials of the 7th Ecumenical Social Week. Lviv, Ukrainian Catholic University, Institute of Ecumenical Studies. September 29 – October 4, 2014. http://esweek.org.ua/ua/ekumenichnij–cotsialnij–tizhden/7-est/dopovidi/847-antonina–kolodii 3 Creation and development of the Public Resource Centre. Practical guidance / Issued by E. Luksha, A. Luksha. – Uzhgorod: Association for the Development of Small and Medium-Sized Businesses and Innovations "Uzhgorod – XXI Century", 2010. – 130 p.

64

implementation of an integrated sustainable development policy. The policy requires a scientific study of the interrelationships between demographic trends and social factors, the rational use of resources and the spread of environmentally friendly and resource-saving technologies. Thus, the social sphere of activity at the local level is the spatial processes implementation in society, the rational forms of people's lives organization introduction in terms of working conditions, life, recreation, personal development, the restoration of life, reproduction of the population. This sphere is directly connected with politics, economics, ecology, sociology, demographic research, and the other sectors. Therefore, it is advisable to consider the social sphere development as a type of economic activity under sustainable development conditions exclusively in the context of organizing people's lives within the territorial organization of labor, namely as the social asset of a territorial community, that is, community resources, concentrated in the citizens and citizens associations’ capabilities.

The emphasis on a problem of the social component formation of the sustainable development policy study is given by Ukrainian scientists as A. Kolodiy1, E. Luksha2, E. Gugnin3, Yu. Savko4, A. Stepanenko5, E. Khlobystov6 and others. An analysis of the scientific literature devoted to the effective local environmental policy formation showed that, despite a large body of knowledge accumulated on this subject, the issue of the social component of local sustainable development policies determination, namely, approaches to outlining the role of an individual in solving

1 Kolodiy A. Social capital and political participation of a citizen in the era of change… 2 Creation and development of the Public Resource Centre. Practical guidance… 3 Gugnin E. The phenomenon of social capital / E. Gugnin, V. Chepak // Sociology: theory, methods, marketing. – 2001. – № 1. – P. 49-56. 4 Savko Yu. Civil Society, Social Capital and Political Participation / Yu. Savko // Bulletin of the University of Lviv. Series: Philosophical Sciences. – 2002. – Issue 4. – P. 151-159. 5 Stepanenko V. Social Capital in the Sociological Perspective: Theoretical and Methodical Aspects of Research / V. Stepanenko // Sociology: Theory, Methods, Marketing. – 2001. – No. 2. – P. 24-41 6 Chechel A. Sustainable Development of Territorial Communities: Features in Conditions of Decentralization / Khlobystov E., Chechel A. / Sustainable development – XXI century: management, technology, models. Discussions 2017: collective monograph / Anderson V., Baldzhi M., Barkan V. [and others]; Institute of Telecommunications and Global Information Space of the National Academy of Sciences of Ukraine; Kiev Polytechnic Institute named after Igor Sikorsky; The ecological and humanitarian school / under the editorship of prof. Khlobystova E. – Kiev, 2017. – P.526-536 – [Electronic resource]. – Access mode: https://conftef.wixsite.com/conf

65

environmental problems and difficulties with a certain territorial community development need additional research.

To determine the role of the sustainable development social component in local environmental policy in the context of the decentralization reform implementation in Ukraine and the unified territorial communities’ formation.

Economic development based on the intensification of the use of the mineral and raw materials system affects adversely the environment and creates dangerous conditions for worsening prospects for social and economic development due to a shortage of resource potential, rising costs for environmental protection of the population and territories, the need to eliminate the consequences of man-induced impact and restore natural conditions of existence.

The current state of decentralization in Ukraine determines the urgent need to continuously improve the infrastructure for the provision of public institutions in order to increase the awareness of decision makers at all levels in this matter and to provide them with more accurate information that ought to form the basis of national and international policy, which has to simultaneously enable to analyze the information.

Ecological problems nowadays are coming to the fore in the state policy of each country; it is connected with the catastrophic deterioration of the environment and the depletion of natural resources. The program of each political party or group has to have an environmental component, at least on the basis of the Constitution and laws of Ukraine, which explicitly states that every citizen of Ukraine has the right to a safe and healthy environment, that is, the duty of the authorities to ensure and guarantee this right. Therefore, the following objectives ought to be achieved in the near future1:

- ensure that demographic trends and factors are taken into account in the global analysis of environmental and developmental issues;

- provide a deeper understanding of the relationship between population dynamics, technology development, behavioural features due to ethnic culture, the state of natural resources and natural life support systems;

- assess the degree of threat to the population living in ecologically fragile areas and large settlements in order to determine the priorities for

1 Gugnin E. The phenomenon of social capital…

66

action at all levels, taking into account the needs determined by the territorial communities development.

Thus, effective local policy is the process of existing infrastructure rational use by civil society, which has to result in the social capital accumulation in the territorial community in conditions of its sustainable development. This direction should be implemented first of all within the framework of the legislation on social protection and social services for the population, where it is necessary to take into consideration not only the socioeconomic indicators but also ecological state of the territory, which ought to be provided by the relevant local authorities and local self-government1.

A lot of countries have been working on the issue of ensuring population’s life worth living in adverse environmental or natural conditions. Germany pays extra bonuses as for "harmfulness" to the miners of the Ruhr basin, whose environmental conditions largely coincide with the Ukrainian Donbas. All citizens residing in this territory who have a retirement, except pensions payments also receive an everyday monthly allowance. Americans from Alaska area have a higher income, additional social benefits (from $ 700 a month and more), etc. Russia practices differentiated eco-payments, the size of which depends on the degree of danger to health of certain climatic and environmental conditions. It is well-known that in Russia residents of the North, the Far East and Eastern Siberia for a lot of years have been receiving significant additional payments. First of all, it is the ratio to wages and pensions, ranging from 1.5 to 2.0. It was an encouragement in the Soviet times for a lot of people to go there to earn "big money". Thus, environmental payments are a common world practice, in civilized countries it has been successfully practiced for more than one decade.

In Ukraine there are also real examples of such fair payments. For instance, 2.6 million "Chernobyl victims" who receive various benefits and allowances in medium sizes from 27 to 30 percent of the basic income; about 31.2 billion UAH is annually taken from the treasury. Almost 408 million UAH is spent annually on the inhabitants of mountainous settlements (and there are about half a million of them in Ukraine). At the same time, the wage premium is 25 percent, and pensions, scholarships

1 Chechel A. Sustainable Development of Territorial Communities: Features in Conditions of Decentralization…

67

and social benefits comprise 20 percent. However, currently in ecologically unfavorable conditions of industrial regions of Ukraine more than 15 million people live and work and in order to restore their health and living conditions no budget is allocated.

Thus, the idea of compensation payments is laid down in the Constitution of Ukraine. The fact that the Basic Law is still not fully implemented in this part testifies to the attitude of the authorities and ignorance and passivity of Ukrainians in defending their rights in this sphere. Article 50 of the Constitution of Ukraine guarantees every citizen a safe life and health, the environment and compensation for harm caused by the violation of this right. In addition, since 1991, Ukraine has a Law "On Environmental Protection", which undertakes to guarantee the population "environmentally safe for life and health" conditions. Article 5 of this Law clearly states that protecting people's health and life from the negative impact of unfavorable environmental condition ought to be controlled by the state, and "the environmental rights of citizens are provided by compensation in the established order of harm caused to the health and property of citizens as a result of violation of environmental protection legislation"1.

The first issue that one has to bear in mind when dealing with "compensation payments" is the formation of appropriate financing sources. The principle of environmental subsidies is as follows: a business entity that pollutes the environment pays for this and the EU system works like that. The atmosphere pollutes the enterprise; it also transfers to the local budget the corresponding funds, which are subsequently distributed among the residents who live in the adjacent territories2.

The coefficients of environmental taxes and payments have to be determined through indicators of environmental responsibility of economic entities. The place taken by the company in rating by the amount of places in ranking lists with certain indicators and ought to become the rating of the environmental responsibility of the corporate agreement subject, which is also the amount of environmental payments of the economic entity.

Equally important is the issue of the mechanism formation for the redistribution of "ecological" articles of local budgets, where the amount of 1 Savko Yu. Civil Society, Social Capital and Political Participation… 2 Molodozhen Yu. Self-sufficiency of territorial communities: a systematic approach: Monograph / Yu. Molodozhen. – Odessa: ORIGA NAGU, 2010. – 370 p.

68

payments to the population must correlate with the degree of environmental contamination of the territory of citizens' residence, the effectiveness of regional environmental programs and investment environmental projects for the resource-saving introduction and environmentally friendly technologies. Unfortunately, such a principle has not been introduced in Ukraine. If earlier all the money that was directed to the environmental pollution compensation by the enterprises accumulated in Kiev, then after the decentralization reform implementation in Ukraine, there was a proportion in which 70% of the funds remain in the local budgets of the united territorial communities, and the remaining 30% is directed to nationwide programs. The Cabinet of Ministers and the Ministry of Ecology and Natural Resources have repeatedly insisted that there are not enough funds to finance state environmental programs, but nevertheless, having regard to this proportion, the money for ecological supplemental payments to the population is now in local budgets of territorial communities (Fig. 1).

Fig. 1. Model of the environmental taxes and payments formation

The attempts to use the potential of Ukraine in the framework of international agreements on environmental protection can be considered as an alternative source. Currently, Ukrainian enterprises are emitting much less harmful gases; it means that there is a lot more quota than it is needed, in contrast to countries that can expand their emission rate at the expense of the Ukrainian reserve.

70% of received funds

National budget Revenues from the environmental quotas sale

Local budgets of united territorial

communities National environmental programs

30% of received funds

Investment environmental

projects

Environmental tax rates

Enterprises – polluters of the environment

Extent of environmental payments

Monitoring of environmental responsibility

Regional environmental

programs

Ecological payments to the

population

69

There through, it is expedient to determine the primary objectives of environmental policy:

- recognition at the legislative level of the environmental pollution territories by zones of an emergency ecological situation;

- introduction of allowances for salaries, pensions, scholarships and other social payments for ecologically polluted areas residents;

- increase of local budgets taking into account ecological features of the territories by applying a correction factor to them;

- increase the local budgets gaps by redistributing taxes transferred by industrial enterprises for the environment pollution and natural resources use;

- conducting effective economic reforms, modernizing the industry in compliance with environmental and social standards;

- introduction of strict state control over the activities of environmentally hazardous enterprises and the principle of irreversible and unconditional responsibility of business entities for environmental damage;

- implementation of integrated measures to ensure environmental safety of these regions;

- development of the economic stimulation system of nature protection activities and non-state environmental funds activities;

- development and implementation of the mechanism for international trade in greenhouse gas emissions by industrial enterprises, as well as implementation of environmental "joint implementation projects";

- the direction of revenues that Ukraine will receive in the framework of international agreements on environmental quotas, for the population and the environment improvement.

In complex targeted programs for regional development of territories, it is advisable to envisage the following directions, which, due to the environmental activities introduction, have a positive impact on the social (reducing social tension and creating conditions for proper rest) and economic (reducing the costs of maintaining the necessary level of public safety) spheres. These measures include:

- reclamation of disturbed lands and protection of lands from erosion, flooding, swamping, drainage, landslides, compaction, industrial and other waste pollution, improvement of agricultural land, increase of soil fertility;

- creation of new recreational zones;

70

- use of wildlife objects in cultural, educational, scientific and aesthetic purposes;

- carrying out works on transportation, processing and recycling of waste;

- improvement of phytosanitary, ecological and aesthetic state of settlements;

- construction and reconstruction of treatment facilities; - construction of environmentally safe solid waste landfills; - protection of rural settlements and agricultural lands from the

harmful effects of water; - integrated flood protection. Thus, in the process of regional development programming amid the

economic, environmental and social components of sustainable development, there is a close interaction, which manifests itself in the fact that the implementation of activities in one sphere positively affects the condition of another.

Conclusions The development of state mechanisms for the environmental

investment funds creation and the environmental payments regulation to the population has long been in an incomplete stage. In current programs of social and economic development, environmental issues are of secondary importance after the industrial development implementation plans and GDP growth, but the conditions for the current life quality and future generations are formed only at the present stage, which demonstrates the need to adjust existing and develop new strategic plans for sustainable development of industrial regions in the context of the environmental issues solution.

Thus, in the structure of local executive authorities and local self-government, it is expedient to create an appropriate unit for sustainable development of the territorial community, whose competence has to include issues of social development and social protection of the population within the framework of the current legislation on social protection and social services for the population and environmental protection. In its authority, this unit ought to determine the priorities for the sustainable social development conditions formation of the corresponding community, using ecological, socio-demographic and ecological and economic indicators of the territory development.

71

1.5. THE METHODOLOGY OF THE AUTHORITATIVE POWERS INDEX ANALYSIS (ON THE EXAMPLE OF THE HEAD

OF THE STATE AUTHORITY)1

The assessment of the place and role of the institution of the presidency in the political system of society has to be carried out taking into account the analysis: firstly, the constitutional norms governing the legal status and scope of the presidency; second, the political processes taking place in the country, and the alignment of political forces in the system of state power; and thirdly, the individual characteristics of the person holding the presidential post. The President’s authority in the system of power distribution is derived from the existing government model. However, within each system there are variations. The greatest dynamism differs from the "mixed" system, since it represents various combinations of the set of elements of the main systems – presidential and parliamentary. However, even if there is such a model of government in the country, it does not mean that there will be even distribution of power and fair state administration. In countries where democratic processes are still gaining momentum, there is a tendency to increase authorities among the legislative and executive branches of government by adopting the necessary laws or using gaps in existing constitutional and legal norms.

It is known that under such circumstances, which developed in the state after independence, the constitutional status of the President and his real authority changed substantially and acquired new meaning throughout the period of existence of an independent Ukraine. The process of the political system formation implies that state institutions which have to meet the requirements put forward by society to the system can change. That is why the process of the presidential institution transformation in Ukraine continues to this day, having passed difficult periods of formation and re-establishment in the event of the Constitution adoption and various legislative acts. 1 The author of subsection: Zelinskaya Maryna, PhD in Political Sciences, Associate Professor, Department of Public Administration and Management at Donesk State University of Management, Mariupol, Ukraine; Kochurin Oleksandr, Deputy Mayor of the City on the Issues of the Executive Bodies of the Mariupol City Council, Mariupol, Ukraine

72

The Constitution of Ukraine of 19961 formalizes the division of powers (Article 6), according to which the President may perform his/her duties. The scope of the constitutional powers from the outset is limited to this principle. It is also important to take into account the fact that the need to ensure the constitutional structure stability, unity and integrity of the state, the functioning of society in a consensual regime does not allow to raise the issue of which government is more important and has to have more powerful authority. All branches of government are interdependent and in a civilized state cannot function separately. It is known that the President of Ukraine does not belong to the three main branches of government, but functionally, he is closer to the executive power, although from the formal legal point of view, he still does not enter it. At the same time, the Constitution of Ukraine and laws, a number of subordinate acts give the President wide powers in the sphere of executive authorities2. As noted by American scholar D. McGregor: "The essence of presidential institutions is determined by the personnel and political powers of the head of the state"3. The Constitution of Ukraine provided great opportunities for the President as a representative of the "interests of all people" to remain the dominant element of the political system of Ukraine.

However, the political and legal practice of developed democracies shows that even where the balance of powers of different branches of government is established at the constitutional level, which implies their independence from each other and mutual control, very often there is excessive authority from the government and the parliament. It is not an exception, but a characteristic feature of modern statehood in a lot of democratic countries, despite the fact that their constitutions establish the principle of the power distribution. It is also peculiar for Ukraine. The significance of the Ukrainian President realization of the arbitration function in the conditions of the Ukrainian statehood establishment on a democratic basis of the transitional nature of society is substantially increasing. The main branches of state power may be in a tough 1 The Constitution of Ukraine. Adopted at the 5th session of the Verkhovna Rada of Ukraine on June 28, 1996. – K.: Yurinkom, 1996. – 80 p. 2 Todyka Yu. Fundamentals of the Constitutional System of Ukraine. – Kharkiv: "Fact", 1999. – P. 203 – 208. 3 Slyusarenko A., Tomenko M. The history of the Ukrainian constitution. – K.: Publishing house "Knowledge", 1993. – P. 112-113.

73

confrontation with one another, and then, according to the logic of the Constitution founders, the head of state can take the "right decision" and resolve conflicts by virtue of the fact that he does not formally belong to any of the government branches.

In order to assess the powers of the Ukrainian head of state (their volume), it would be expedient to use the index analysis of the presidential authority when examining the Constitution norms, which establish the rights, duties and powers of the President. It was described by Matthew Shugart and John Carey in the work "Presidents and Assemblies. Constitutional Design and Electoral Dynamics"1, it has been actively used in recent years in comparative studies in the West. For a numerical assessment of the powers of the presidents elected at the general election, researchers use the interval method and distinguish between two groups of powers – legislative and non-legislative. Among the indicated powers there are: the dissolution of parliament, the appointment of the Cabinet, the right of legislative initiative, etc. Indexing presupposes assigning each "5" to the full authority, a partial "3-2", and the lack of authority is indicated by "0".

Based on these techniques, the authors have developed own method of determining the presidential power index. The author's method was developed and adapted to the norms of the Ukrainian Constitution and political practice.

As criteria, the most important provisions of the 1996 Constitution (without future changes) which then, in order to achieve in-depth analysis and a real assessment of the presidential power in Ukraine, can be compared with the practical power implementation.

The authors have analyzed the so-called classical text of the Constitution of Ukraine, adopted on June 28th, 1996, without amendments. It simplifies the understanding of the methodology of index analysis and helps to implement it in further practical research.

The scale of assessment of the head of state authority is coded: 1 – for full possession of one or another type of authority, 0.5 – for the distribution of authorities with other branches of power, 0 – if the

1 Shugart M., Carey J. President and Assemblies. Constitutional Design and Electoral Dynamics. – Cambridge: Cambridge University Press, 1992. – 142 p.

74

authority does not belong to the president or its use does not depend on him.

Variable powers can be coded as follows: 1. Presidential foreign policy activities: 1 – complete independence in

decision-making on international politics of Ukraine, 0.5 – the need for consent of the parliament and / or government members to hold a separate foreign policy course, 0 – non-interference of the president in this sphere.

2. Appointment to the post of prime minister and ministers: 1 – the president appoints the entire composition of the government on his/her own, 0.5 – divides the powers of appointment of members of the Cabinet of Ministers with others, 0 – the president has no right to appoint a government.

3. The ability to create subsidiary organizations and influence state policy through these bodies: 1 – the president may create subsidiary bodies and services, 0.5 – may create similar bodies with the consent of other branches of government or their representatives, 0 – the president has no right to create separate state institutions.

4. The powers of the executive: 1 – the powers of the executive body belong exclusively to the president, 0.5 – the president divides these powers with the government, 0 – the head of state has no right to exercise executive powers.

5. The right of legislative initiative and the veto of the president: 1 – the president has these powers in full, 0.5 – the president may veto the bills of parliament, but has no right of legislative initiative, 0 – there is no right to create laws and the right of veto.

6. The dissolution of Parliament: 1 – the prerogative of dissolution of the parliament belongs exclusively to the president, 0.5 – the president divides this authority with other bodies or for this the president needs the consent of other actors, 0 – the head of state does not have formal powers to dissolve the parliament.

7. The right of inviolability: 1 – the president cannot be removed from office by other branches of power, 0.5 – the president can express distrust solely through state betrayal with the consent of the parliament and by decision of the court, 0 – the president can deprive the right of inviolability,

75

even through immoral behaviour (the procedure for impeachment is simplified, for example, through the decision of the general referendum).

The presidential index is determined by compiling the numerical data of existing variables, for which the “+” signifies some increase of the index. Three “+” mark make an extra 0.5 points (see Table 1).

Table 1 Indices of the Ukrainian presidential power

under the 1996 Constitution

1 2 3 4 5 6 7 Total indicator According to the Constitution 0.5 0.5 1 0.5 1 1 0.5 5

As it can be observed that the powers of the Ukrainian president are

very broad (even by the letter of the law he scored 5 points out of the 7 maximum possible).

Thus, for instance, in the international relations sphere, the functions of the President include: representation of the state in international relations, leadership implementation of the state foreign policy, negotiation and conclusion of international agreements, and also the decision to recognize foreign states. The President has the right to appoint and dismiss heads of diplomatic missions of Ukraine in other countries, and to accept the credentials and certificates of diplomatic representatives of foreign states.

According to the Constitution, the independence of the head of the state in the areas of foreign policy, national security and defense is somewhat limited due to the need to implement the relevant decisions by the Prime Minister of Ukraine or other ministers (Article 106, paragraph 31). This procedure is known as the "contrasignature" or "consortium", and in the context it has to mean that the decree signed by the president, that is, the act, and not the draft act, is signed by the Prime Minister of Ukraine and the minister responsible for the act and its execution. The existence of an institution of contrasignation in legislation is due to the establishment of a "mixed republic" in Ukraine, for which, as for a parliamentary republic, it is characteristic, because it is the government responsible for the actions of the head of state (in the parliamentary republics it is completely fulfilled, in mixed – limited to a certain range of powers).

76

It ought to be noted that, formally, the signature of the Prime Minister of Ukraine and the Minister has to be reflected on the original decree that is to be published. Since none of the decrees of the President of Ukraine from this category, published in official journals, did not contain the signature of the Prime Minister and the Minister responsible for its execution, one can say that the signature procedure in Ukraine was not applied. Anticipating opponents’ precautions that the draft acts (or already signed acts) of the President of Ukraine for the moment are "vised" by the Prime Minister and Minister on the reverse side of the original of the act, the following has to be noted: the importance of the procedure of counter-signature is that it prevents the head of the state from exercising certain powers at own discretion. The signatures of the Prime Minister of Ukraine and the minister on the act testify that the government is involved in a certain decision and thus shares with the head of the Ukrainian state the responsibility to the citizens for the consequences of this particular decision1.

The second indicator in the analysis of the presidential power is the appointment of the government. It has to be stated that the Prime Minister was appointed by the President with the consent of more than half of the constitutional composition of the Verkhovna Rada. The personal composition of the Cabinet of Ministers was appointed by the head of state on the submission of the Prime Minister. However, there was a procedure under which both the President and the Verkhovna Rada could influence the activities of the government, because the Constitution, within its boundaries, was the responsibility of the Cabinet of Ministers to the President and is accountable to the Verkhovna Rada2.

A clear definition of the prime ministerial status and approval of this position by the parliamentary majority undoubtedly increased the role of the Prime Minister in the Ukrainian system. The Prime Minister also had to rely on the fact that the Cabinet of Ministers, headed by him, along with the Verkhovna Rada, the President, people's deputies, the National Bank, had the right of legislative initiative. Consequently, for the constructive work of

1 Syroid O., Yashina Y. The activities of the President of Ukraine in the field of drafting and legislative process – K.: Ukrainian Legal Foundation, Abstract, 2004. – P. 22. 2 Shatilo V.A. Institute of Presidency in the system of state power of Ukraine. – K.: Ukrainian Center for Political Management, 2004. – P. 8.

77

the executive with the President and his cooperation with the legislature, it was necessary that the bills coming to the parliament from the Cabinet of Ministers coincide with the presidential direction on the economic strategy. While projecting a hypothetical situation where the Prime Minister and the President belonged to diametrically opposed political groups, then, using the right of legislative initiative and support of the majority in parliament, the Prime Minister would be able to introduce a policy that does not coincide with presidential one. However, under the conditions of the then political system of Ukraine, this situation remained hypothetical, as the Prime Minister, even supported by the parliament, is powerless before the President's desire to resign. The prime minister, if he was willing to remain on the post, was supposed to be as loyal as possible to the President, he was forced to remain unbiased from political ambitions. Comparison of the mechanisms for the formation of executive power in Ukraine and France (as countries with a semi-presidential system of government, according to which the model of public administration was established in the 1996 Constitution) leads to the conclusion that the very fact of the appointment of the government by the President on the proposal of the premier does not yet prove the influence of the latter. The main thing in author’s opinion is who initiates the resignation of government officials. In France, such a figure is becoming a premiere; in Ukraine, the President also has absolute autonomy for changes in the executive branch of government.

The powers of the President of Ukraine, stated in the Constitution, were carried out in a lot of directions and affected a wide variety of spheres of public life. First of all, he took the most active part in the formation of key state bodies. The Constitution established a different procedure for the formation of such bodies, the appointment of their leaders. In some cases, it was carried out directly by the President, in others – he acted with the consent of the Verkhovna Rada or on the submission of the Prime Minister.

The next indicator relates to the President's ability to create subsidiary bodies through which the influence on state policy is realized. Consequently, he was entitled to create, within the limits of the funds provided for in the State Budget of Ukraine, for the exercise of his authority, advisory and other subsidiary bodies and services. The structure

78

of these subsidiary bodies, the order of their activities remained outside the constitutional settlement. They had different status and were headed by well-known officials in the country. These could be committees of various kinds, but above all it is the Presidential Administration – a fairly extensive organization, whose powers are not clearly defined in the Constitution and which, while assisting the President in the execution of his powers, also performed functions that belong to the sphere of executive power. The duties and powers of this body were not regulated by the Constitution, but by the President's decree, i.e. the presence of the Administration is not mandatory in the system of executive power of Ukraine. Certain critics of the Presidential Administration reproached it for having tended to deal with matters that, under the Constitution, belonged to the Cabinet of Ministers, and were more likely to act in the government's sphere of activity, duplicating and replacing it.

Consequently, according to the analysis of the text of the Constitution, the creation of subsidiary bodies allows the head of the state to act as the actual head of the executive branch, especially when the President can rely on the parliamentary majority in the Verkhovna Rada1.

Furthermore, the authors analyze the variable "executive body authority". As has already been mentioned, the Constitution did not attribute the President of Ukraine to the executive (he was only "the head of the state"), since the exercise of such power was entrusted to the government. But the Cabinet of Ministers of Ukraine largely lost its independent significance and turned into a body essentially subordinated to the President, who, through his notice, pursued own policy. This means that there was a certain dualism in the executive sphere: the officially executive branch was headed by, on the one hand, the head of the executive branch, the Prime Minister, and, on the other, the President. However, the government did not have the autonomy in making key decisions. De facto the Cabinet's policy was completely determined by the head of the state, and the government turned into a body of the President's administration.

The issue of the staffing of the President of Ukraine can be considered 1 Tsvik M., Protsyuk I. About the state-legal nature of the power of the President of Ukraine in the system of power distribution // Bulletin of the Academy of Legal Sciences of Ukraine. – 1999. – No. 1. – P. 57.

79

fundamental in assessing the range of his power in general, because the duty of selection and placement of personnel on key posts in the state (as well as in order to make a decision by the head of state on dismissal) has given him the opportunity to influence on the decision-making process in the executive structures, indicating the identification of the President with the executive branch of power, both in fact and in public consciousness. In this area, for instance, typical presidential decrees are "encouraging" for the government as one of the levers of influence on the adoption of specific "necessary" decisions1.

The right of legislative initiative and the president's veto in assessing the system in the legislation has a maximum rate. The Institute of the President of Ukraine, his powers as head of state is closely linked with both law-making and the implementation of laws. All these powers of the President are inseparable prerogatives of the head of the state. Although for its constructive cooperation with the Verkhovna Rada, namely, for legislative initiatives through parliament, the existence of a pro-presidential majority in the parliament is required.

The implementation of the participation of the head of state in the legislative process took place, first of all, through the right of legislative initiative, the right to sign laws and the right to veto already passed laws by parliament. By comparison: within the presidential regime in the United States, the President has the prerogative of issuing decrees that come into force. The French President, also within the framework of the semi-presidential regime, has the right to issue decrees that are countersigned with the Premier. However, both the President of France and the President of the United States are deprived of the right to legislate, which belonged to the domestic head of state by Constitution.

The President of Ukraine also had the right to appoint an all-Ukrainian referendum on changes to the Constitution in accordance with Article 156, to proclaim an all-Ukrainian referendum on a people's initiative. Special powers of the President regarding amendments to the Constitution concerned, first of all, sections I "General principles", section III "Elections. Referendum" and section XIII Amendments to the Constitution of Ukraine". This right, besides the President, was used by no less than two thirds of the 1 Kononchuk S. Development of democracy in Ukraine – 2000. – K.: Agency "Ukraine", 2001. – P. 99.

80

constitutional composition of the Verkhovna Rada. If the Verkhovna Rada adopted such a bill by no less than two thirds of its constitutional composition, the President would have to appoint an all-Ukrainian referendum that would approve this law. Such a complicated procedure was established in order to prevent unwarranted, instant changes to the Constitution, its initial, principled provisions.

In addition, the President of Ukraine could influence the priority of consideration of laws, because, according to part two of Article 93, "bills that are determined by the President of Ukraine as urgent are considered by the Verkhovna Rada in an emergency". Although the Constitution of Ukraine does not regulate the responsibilities of the head of state in signing this group of laws, it is logical to assume that the president has to demonstrate his interest in the instant settlement of issues stipulated by the bills that he identified as urgent, which has to be reflected in the urgent signing of these laws1. That is, the President's duties regarding the procedure for signing the laws ought to be fixed in the legislation, firstly, would make the work of all those who have the right to legislative initiative more effective, and secondly, would force the President to treat the laws, which he defined as urgent, with all responsibility and sign them within the specified terms.

It has to be noted that the head of state had, as an integral part of his office, the right to address the message to the people and with annual and extraordinary messages to the Verkhovna Rada on the internal and external state of the country. Those appeals cannot be regarded as purely informational. After all, they outline the vision of the situation in which the state is located, outlines ways to overcome obstacles that prevent its progressive development, etc. It is clear that these provisions cannot be construed as obligatory for use by parliament. However, the position of the President as head of state, his vision of ways of society development cannot but affect the activities of other power structures. The Parliament, working on the state legal framework development, would have to reconcile its decisions with the President's position, since only under such conditions the coordination of the entire state mechanism functioning, the society stability and state power can be ensured. Therefore, the ways for 1 Burczak F. President of Ukraine. – K .: Yuriy, 1997. – ("The New Constitution of Ukraine"). – P. 10 – 13.

81

finding the compromises, built on taking into account the positions of each of these authorities, could be the most rational and logical in the state policy development1.

Finally, in accordance with paragraph 30 of Article 106 of the Constitution of Ukraine, the President has veto power, which allowed him to return adopted law for reconsideration, as the Constitution does not contain any restrictions on this law application. It has to be underlined that the term "veto" is used in the values set forth in the Basic Law and other legislative acts, in particular:

- proposals of the President of Ukraine – the veto of the President of Ukraine, which is proposed to amend the text of the adopted law;

- veto of the President of Ukraine for cancellation – veto of the President of Ukraine, which is proposed to repeal the adopted law;

- veto of the President of Ukraine – generalized notion of "proposals of the President of Ukraine" and "veto of the President of Ukraine for cancellation".

It ought to be stated that the President's position regarding the consideration of his proposals or the abolition of the law during his re-examination was not consistent: the application of the "veto for cancellation" in the preceding stage does not exclude the provision of proposals with the re-application of veto power, and vice versa – the provision of proposals initially does not exclude the veto for cancellation in the next step2.

The Verkhovna Rada of Ukraine had the opportunity to overcome the presidential veto no less than two thirds of its constitutional composition during the law re-examination.

Thus, according to the analysis of the Constitution provisions, the powers of the head of state in matters of legislative initiative and the right of veto equal to the highest point.

It ought to be emphasized that the Basic Law of 1996 contained a mechanism for resolving conflicts between the President and the

1 Syroid O., Yashina Y. The activities of the President of Ukraine in the field of drafting and legislative process – K.: Ukrainian Legal Foundation, Abstract, 2004. – P. 13. 2 Political system of modern Ukraine: peculiarities of formation, tendencies of development / Editorship: F. Rudich (head) and others. – K .: Parliamentary View, 1998. – P. 116.

82

Parliament: the President received the right to terminate the powers of the parliament, which did not fulfill its obligations (the necessary condition for this was the inability of people's deputies to start a plenary session within thirty days of one session). Moreover, this prerogative belonged exclusively to the head of the state. The scheme of the implementation of the right of dissolution by the President of the Verkhovna Rada is as follows: if the consideration of conceptual issues took place in a disadvantageous direction for the President, the pro-presidential forces in the parliament refused to register, thereby blocking the beginning of plenary sessions and bringing the parliament closer to the moment of dissolution. However, for the realization of this situation, the existence of a pro-presidential majority in the parliament was necessary1.

The authors believe that according to an index estimate, the head of the state uses this right in full without exception, and then the score is equal to the highest score.

As the case may be, the President supported the right of inviolability at the time of the exercise of his powers (Article 105). According to the Constitution of Ukraine, he is responsible for the implementation of/non-fulfillment of official duties, for his actions, for intentional encroachments and violations of the Constitution and for transgression of laws, for his committing state treason, damage to state independence, bribery, other breaching the laws. Thus, the predominant form of dismissal of the President of Ukraine from office is impeachment (Article 111).

In Ukraine, in the text of the Constitution (since the law on the President's impeachment of Ukraine was neither adopted in 1996, nor nowadays) formally the decision on the President's compulsory dismissal should be taken only by the Verkhovna Rada by no less than two thirds of its constitutional composition. After this, the Verkhovna Rada establishes a temporary ad hoc commission to investigate all the actual circumstances of the case. The commission consists not only of people's deputies; it must include a special prosecutor and a special investigator.

This decision is then verified by the Constitutional Court, which makes a reasoned conclusion that the constitutional procedure for investigating and reviewing the case on impeachment is complied with. The decision has

1 Kis T. The Institute of Presidency in Ukraine // New Politics. – 2000. –No 1. – P. 28.

83

to receive the conclusion of the Supreme Court that the acts in which the President is accused contain signs of treason or other crime. For the removal of the President of Ukraine from the post at least 338 deputies have to vote. It is clear that the vote on such an acute issue ought to have been nominal to avoid misunderstandings.

Such a complicated procedure for making decisions on the impeachment of the President provided for the protection of the head of the Ukrainian state from unreasonable, false accusations. It is possible that opposition forces could, in order to achieve their goal, speculate on the initiation of the impeachment issue. The score of 0.5 points makes it possible to see that this procedure could not be implemented in law due to the complication of the impeachment procedure, and because of the lack of a law on impeachment.

Data obtained during the index analysis of the presidential power allows concluding that the thesis of excessive presidential power is confirmed in the conditions of the 1996 Constitution – the head of state had an extensive power. Although at that time in Ukraine the presidential-parliamentary form of government was fixed, however, an index analysis of the powers of the President of Ukraine in the text of the Constitution means that at that time it was more a presidential form of government headed by the head of state who had very broad authorities.

84

SECTION 2

FEATURES OF RESOURCE MANAGEMENT IN PUBLIC ADMINISTRATION

FOR SUSTAINABLE DEVELOPMENT

85

2.1. THE METHODICAL ISSUES OF CITIES ECONOMIC DEVELOPMENT MANAGEMENT IN DONETSK REGION1

In the present conditions, more and more requirements are given to

the governing system of cities economic development, which includes the management goals, functions and process itself. In the framework of the management system, as a rule, there is a comprehensive administrative process, in which executive, regional, municipal and village-settlement bodies are involved.

In the authors’ opinion the purpose of adequate functioning of territorial entities, the requirements of a market economy of the system for the management of urban economic development has to be carried out in a way that all included processes are carried out in a timely, qualitative and effective manner. At the same time, it is necessary to pay special attention to the leaders of all authority branches and to the professionals of an effective system of governance formation, with the aim of continuous improvement, development of the system as a whole, as well as its individual components.

In this context, it has to be pointed out that efficient and effective management is necessary for the maintenance and effective economic development of the city. In this case, the study and improvement of the management system in terms of the oblast, as well as the city may contribute to the earliest possible achievement of established goals and tasks.

In the given context, one ought to highlight the issue of assessing the management effectiveness. For instance, Russian scientist V. Leksin notes that: “... in a sophisticated government with an officially adopted system of territorial decentralization, the issue of reaching the objective, parametric and quantified assessments of the activity at each level of administration

1 The authors of subsection: Chernysh Olena, Doctor of Public Administration, Professor, Head of the Department of Production and Non-production Management in Donetsk State University of Management, Mariupol, Ukraine; Chernyshov Oleksandr, PhD of Economic Sciences, Professor, Associate Professor of the Department of Production and Non-production Management in Donetsk State University of Management, Mariupol, Ukraine; Tanchyk Olena, PhD in Economics, Head of the Department of Foreign Languages, Donetsk State University of Management, Mariupol, Ukraine

86

separately is presented in detail as insoluble. However, the actuality of the objective evaluation of the authority body activities is essential and publications concerning this issue are constantly published1”.

Under certain conditions, there are several approaches that include a simplified solution to the effective management subject matter:

firstly, attempts are made to rebalance the results of the quantitative factors of economic development or economic activity management (output, national income, productivity of the workplace, etc.);

secondly, the management expenses are identified with the expenses of the authority bodies support, which allows calculating the costs on one administrative act, a legal document, a resolution, a decision, etc. drawing up.

At the same time those simplifications do not make it possible to scientifically justify the share of the administrative effect in the general effect of the management object operation. In this regard, the authors propose to form effective methods for managing the city's economic development in the context of the city-system. That is, in order to assess the government's decision effectiveness, it is necessary to recognize all essential connections and to establish their influence, taking into account these interrelations, on the functioning behavior of the whole system but not only its part.

The systematic approach to the study of the city economic development management allows comprehending it as a function of several complex systems. among which there are:

administrative system – a category that determines the management subject essence;

management system – society as a whole and its components as management objects;

interaction system – various institutions that implement communications (direct and reverse. vertical and horizontal. subordinate and supporting).

Therefore, with regard to the aesthetic-territorial formation the subject-object connection will strengthen the essential characteristics of 1 Mamonova V. Theoretical and Methodological Principles of Management of Territorial Development [Text]: Manuscript for Doctor of Science in Public Management, specialty 25.00.04 "Local Self-Government" / V. Mamonova. – National Academy of Public Administration under the President of Ukraine. – Kyiv, 2006. – 114 p.

87

the governance system by the city economic development. The system of economic development contributes to the interaction content that manifests itself as a dialectical combination of needs and interests of society and the opportunities of the region. The subject produces the administrative information, and the object provides feedback information.

The management system of the city economic development has to create conditions for the effective use of all existing resources in society: intellectual, financial, informational, demographic and others. Adoption of supervisory decisions may be based on an increasingly comprehensive and consistent application of the systemic approach. It is observed in the consideration of individual municipal objects of any administration level as special systems, interdependently linked and actively interacting with other systems in the context of the nationally-owned complex, in identifying the role of each of them in the general process of economy functioning.

In the systemic approach of the region's economy, individual cities are considered as a system that consists of functionally and structurally separated subsystems that form a series of stable, hierarchical levels of control for achieving the ultimate goal. The consequence of hierarchical organization of the city is the presence of vertical and horizontal connections. Vertical bonds mediate the interaction of subsystems of different levels of territorial formation, horizontally – one level. It has to be perceived that the management of the city economic development cannot be reduced to the realization of only its general functions. It represents a complex system, which consists of not only the geographically distributed structure, but also includes the process, goals and methods. As a matter of fact, the system has to be effectively coordinated.

A. Kozbenenko stated concerning this issue that: "The system of state governance, as well as any socially organized one, is composed of functionally united connections of subsystems (elements) that have specific characteristics, and therefore they acquire their place in the organization structure. The organizational-functional structure of government administration represents the definitely defined, functionally interconnected structure of system-constitutive elements (structural components): state and institutions that ensure the management system, their vertical and horizontal dependence, organizational interaction and accountability. It is characterized by factors of organizational-functional

88

stability: subsystems of goals and principles; separation of competence, division of functions and powers between subjects and objects of control; subsystems of applied management forms, methods, means and resources".

When tackling the cities’ economic development matters it is important to proceed from a qualitative assessment of internally local ties and relations. Hence, the necessity of studying, defining and justifying the directions and trends of economic development of cities in the relation between two main levels of governance: the micro level (level of enterprises and organizations, cities and regions) and the meso-level (the level of the subject of the state) are essential1.

The fulfillment of the task was possible only on the basis of the comprehensive application of the principled provisions of the systemic approach. The approach precedes the need to study a complex of comprehensive structures of objects and processes in order to identify the essential ties and relations that take place both inside the analyzed structure, as well as its dependence from the external environment. At the same time, the system is considered as the set of interrelated and interconnected elements that create a single, integral whole that possesses integrable features2.

Each city is a complex economic system where the system of formation, functioning and development of a comprehensive perspective of relationships and connections between organizations, enterprises, institutions, settlements, social groups, and organizations of governance is functioning and is being developed. The positive tendencies of certain regional socio-economic processes fundamentally depend on these relations, connections and interaction development3.

In the conditions of certain social and economic transformations, the city acts as the most important object of governance, since this level of the national complex has a high degree of ownership over all the main features

1 Vetrov G. Methodological materials on the project implementation of cities economic development / G. Vetrov, I. Pulman // Fund "Institute of Urban Economics". The "Economic development of cities" project. – 97 p. 2 Bugai S. On the Directions of Improvement of Territorial Organization of Local Self-Government / S. Bugai, Ya. Zhovnirchik / Economics. – 2009 – No. 7 – 8 p. 3 Berdanova O. Strategic Planning for Urban Development [Electronic resource] / O. Berdanova // Economic Journal-XXI. – 2006. – No. 9-10. URL: http://www.soskin.info/ea/2006/9-10/20060918.html.

89

of the system: first of all, the union, integrity, and consistency of all the constitutions of a certain territorial space. The system approach to socio-economic complexes, which is a city, has to be considered as a methodological basis for the appropriate exact actions formation aimed at positive attitudes to all relevant transformations. The systematic approach is physically based on the basic principles of regulation, control, reorganization, restructuring, reforming, development, improvement of economic systems, associated with the achievement of target directions. At the same time, the main benefit of the systematic approach is the formation of the necessary conditions for systematically organizing the social and economic environment with the consideration of the external environment for the certain activities in specific areas implementation and the targeted programs realization1.

Systemic urban development provides for substantiated and clear organizational changes, for example: achievement of structural compatibility; creating missing gaps (items, elements), their dissociation and re-grouping, liquidation of the new ones and (or) alleviation of the gap; eliminating the destructiveness of individual elements; stimulation within oblast and interregional relations; implementation of integration processes; achievement of multiplicative effect; social orientation of transformations. In the study of urban problems and the justification of possible ways of city development, it has to be noted that the Ukrainian state, which represents the interconnected elements in the national economic system, nevertheless, clearly differ from each other. These differences lie in the geographic distribution, the size of the territory, the natural and climatic conditions, the economic potential, the industry levels and the rural territories development, the levels of production and social infrastructure, the number of enterprises and organizations, the number of population and its employability, the inflexibility structure, the taxation potentials, scientific and practical basis, structures of legislative and executing authorities and others. In this regard, there is a certain specificity of the structure, functioning and development of specific cities.

These objectively existing differences, and some of the results of the transformations that are occurring in the country, have led to a rapid

1 Boyko-Boychuk O. Category "city": essence, definition / O. Boyko-Boychuk // Management of a modern city. – 2005 – No. 3-4 / 7-12 (19-20). – P. 47-60.

90

growth of interregional imbalances. The comparative analysis of the socio-economic development of cities indicates trends in the differentiation growth. It is basically in connection with the heterogeneity of the Ukrainian government's space, hence, with different possibilities of adaptation to market conditions.1 Currently, the beneficial positions belong to cities-exporters of products that use stable external demand for oil, gas, colored metals and aluminum, as well as large trade and intermediary centers and centers of banking capital. For a lot of other oblasts, the transition to market domination is connected with great difficulties, which is confirmed by the daily practice of present survival, functioning and adaptation of cities to changed conditions.

As a result, the several groups of cities and regions with a qualitatively different level of economy and social sphere have formed in Ukraine. One group consists of well-developed regions and cities with a fairly high level of production and people's well-being.

Another larger group consists of regions and cities with average economic potential and the level of well-being of the population. Consequently, the group has the so-called "problem" cities with a low level of economic development, among which there are depressive and deprived ones. At the same time, depressive regions have to be classified as those which are in the deep economic crisis that expresses in the production decline, including the traditional industries and specializations, as well as in the long-term economic stagnation, and are at the stage of radical structural adjustment, renewal and diversification of production. A depressed city is characterized by chronic signs of internal imbalances of government, high unemployment, the presence of unseized capacities, the absence or weak industries which are unable to ensure future progress.

As a result of the ongoing analysis of the economic development strategic planning of territories in Ukraine, the following features have been identified in the methodological approaches development. However, in the authors’ opinion, the formulation of the goal, objectives, the main directions in the socio-economic development strategies at the regional and local levels are influenced by the presence of certain features in the socio-economic development of the territories. 1 Bratuta O. General Characteristics and Assessment of the Regulatory Framework for the Regional Development Regulation in Ukraine / O. Brututaa // Regional Economics. – 2005. – No. 1. – P. 7-13.

91

Defining the particularity in the socio-economic development, it is possible to distinguish the Ukrainian territories that are located in problem oblasts.

Under the problematic oblast, authors mean a region in the development of which there are a number of unfavorable conditions of a permanent or temporary character: the economic crisis, socio-political and ethnic conflicts, man-made technological disasters or natural phenomena, etc. According to the apparent clustering, among the problem regions there are:

1) underdeveloped oblasts – territories that have traditionally low (in comparison with other oblasts in the country) level of economic development and the population well-being;

2) depressive oblasts that differ from developed by the fact that they, as usual, were better developed, but in the conditions of scientific and technological progress they began to stand back in their development.

The authors’ view is that the settlements that are situated in problem oblasts are the most vulnerable in accumulating potential threats and dangers. In the course of the research, the hypothesis as for the presence of specific features of the development of localities, which need to be taken into account in the strategic planning of economic development has been checked.

The choice for the study of large cities is connected with the great contribution that these populated places make to the regional economy (Table 1). All cities belong to the category of cities with a low level of socio-economic development.

It is necessary to carry out the general characterization of the features of the small cities of Donetsk oblast.

1. Activities of enterprises (Table 2) It is possible to propose description of the development features of

industrial regions territories. 1. Characteristics of Urbanization Processes Donetsk region is the most urbanized region of Ukraine. By January

1st, 2014, there were 52 cities, including 28 of regional importance, 18 rayons, 131 urban-type settlements and 1118 rural settlements, in which

92

4343.9 thousand people lived. The urban population was 3937.700 people and 406.200 people were rural ones.1

During the analysis of the socio-economic development of the small cities of Donetsk oblast, the following has been defined:

2. Economic features of small cities of Donetsk region development 2.1. Small cities of Donetsk oblast are characterized by a high volume

of industrial products realization (Table 3). Table 1

The main indicators of the socio-economic development of the Donetsk oblast in January-February 2018

factual in January-

May, 2018

Growth rate (decrease).% May, 2018 until January-

May, 2018 to

January-May 2017

January-May, 2017 to

January-May 2016

April, 2018

May, 2017

Volume of sold industrial products (goods and services), mln.

57611.8 - - - -

Industrial production index 3 - 96.0 98.8 107.2 49.6 Index of agricultural production - - - 94.1 65.5 Capital investments, UAH million 1954.4 - - 120.9 29.1 Volume of executed construction works, ths. UAH. 725022 - - - -

Construction products index - - - 98.3 24.0 Freight turnover, mln tkm. 232.6 103.9 97.1 72.9 - Passenger turnover, million pass. km. 643.7 114.1 68.9 69.7 -

Exports of goods, mln. USA 861.5 - - 68.8 38.5 Imports of goods, mln. USA 308.2 - - 78.8 47.2 Net balance 553.3 - - - - Turnover of retail trade, UAH million 16233.2 - - 98.1 28.3

The average monthly wage of one employee

nominal price, UAH 5656 100.5 121.4 125.8 116.2 actual wage, % - 97.9 101.6 92.1 83.2 Debt Payroll, UAH million. 321.1 98.6 85.1 - - The number of registered unemployed at the end of the period, ths. persons

20.1 98.3 85.6 - -

Consumer price index - 99.9 111.5 103.6 136.5

1. Statistical Yearbook of Donetsk Oblast for 2016. – Bakhmut: Main Department of Statistics in Donetsk Oblast, 2016 – 496 pp.

93

Table 2 Activities of non-financial services companies in Q1

of 2016-2017

City/town

Volume of implemented services (in market prices,

ths. UAH) in 2016

Volume of implemented services (in market prices,

ths. UAH) in 2017

The share of services

implemented to population

in total,% total including population total including

population Donetsk Oblast 3881704.5 1254550.6 3162222.9 1087697.6 34.4 Bahmut 50044.8 21904.7 44695.9 21527.0 48.2 Vuhledar 12677.8 12677.8 12389.0 978.1 7.9 Dobropol'ia 14414.3 7234.9 20613.6 8612.9 41.8 Druzhkivka 19360.6 4052.4 20278.8 5610.4 27.7 Kostiantynivka 18410.6 7654.2 16104.5 8084.3 50.2 Kramatorsk 454997.6 278504.3 180071.7 50835.1 28.2 Leman 4133.4 2803.3 6844.9 5071.0 74.1 Mariupol 775495.7 165341.9 654937.1 215088.0 32.8 Mirnograd 36442.9 5040.5 30892.9 5307.8 17.2 Novogrodovka 161.4 128.6 169.0 140.0 82.8 Pokrovsk 83836.9 8750.9 76732.7 7861.8 10.2 Selydove 5602.8 3382.0 6491.0 3907.8 60.2 Slov'iansk 78349.4 27597.2 78698.2 32567.3 41.4

Table 3

Volume of industrial production realization in 2017

City/town у Volume of sold industrial products (goods, services)

without VAT and excise thousand UAH in% to all sold products

Donetsk Oblast 186076960.8 100.0 Bahmut 244144.2 1.3 Vuhledar 622680.9 0.3 Dobropol'ia 2343156.0 1.3 Druzhkivka 3858732.6 2.1 Kostiantynivka 4515329.4 2.4 Kramatorsk 18473376.8 9.9 Leman 140975.8 0.1 Mariupol 67397360.8 36.2 Mirnograd 2339598.2 1.3 Novogrodovka 4399975.9 2.4 Pokrovsk 429383.6 0.2 Selydove 1409635.8 0.8

The considerable contribution of small cities to the gross regional

product of Donetsk oblast (Table 4) was observed. Donetsk, Luhansk, Dnipropetrovsk and Zaporizhzhya oblasts companies accounted for 29.6%

94

of the total gross product in Ukraine. It has to be noted that over the past ten years the number of Dnipropetrovsk oblast companies has increased significantly in the bulk product. Donetsk oblast is at the second-place with the contribution to the country GDP, and Dnipropetrovsk oblast is the third among the oblasts in Ukraine.

Table 4 The region's share in the gross domestic product of Ukraine (in%)

Oblasts 2004 year 2013 year 2017 year Dnipropetrovsk Oblast 8.7 10.1 11.1 Donetsk Oblast 13.2 11.7 7.6 Luhansk Oblast 4.3 4.0 2.0 Zaporizhzhya Oblast 4.4 3.8 4.2

It ought to be noted that the majority of small cities are characterized

by a mono-profile economy, where such industries as coal industry, metallurgy and mechanical engineering is strongly developed. The structure of industrial production in Donetsk oblast can be illustrated with the data (Table 5).

Most of the settlements in the Old industrial appeared and developed on the basis of industrial enterprises oriented to local raw materials, and transport-oriented industrial enterprises.

Table 5 The Structure of industrial production by main types of activities

in the Donetsk oblast, %

Indicators 2005 year

2011 year

2012 year

2017 year

Industry 100.0 100.0 100.0 100.0 Including: - extractive industry 14.3 14.0 12.8 11.7 - processing industry 82.4 83.0 80.2 75.0 Proportion of certain industries: - food processing industry 5.3 5.1 6.6 6.7 - light industry 0.2 0.2 0.2 0.3 - production of charred coal 8.5 8.4 6.8 5.2 - metallurgy 44.8 42.1 35.1 45.1 - chemical and petrochemical industry 4.3 4.1 5.2 4.4 - mechanical engineering 9.7 10.2 11.2 12.2 - production of mineral products 1.9 1.9 2.0 2.6 (construction materials. glass) 7.7 11.0 13.1 10.5

95

The author's team under the guidance of B. Müller outlines three factual factors for the industrial regions development:

- the sensitivity to changes in external conditions (i.e. mono-profile of the economic basis);

- the integrity of the economy in order to adapt to changes; - the integrity of the political and administrative system to support

structural adjustment.1 Among the economic peculiarities of the city development it is

necessary to name the following: a) the impact of external factors such as economic and technological

shocks (e.g. energy crisis); b) issues of a mono-profile economic structure that arise with the

completion of the life cycle of the main product (reducing the competitiveness of products. low innovation activity);

c) the deformation of the structure of industrial production with a significant shift to the heavy industry.2

The result of the new economic conditions, which caused a crisis of a number of industries, one-profile cities and settlements, which are represented by coal mining and metallurgical enterprises, are in a very difficult economical situation currently.

d) the outdated transport and logistics infrastructures, which does not meet the flexible production requirements;

e) the closed market structure, which is manifested: - in the formation of oligopolistic structures among mono-industrial

producers, which increases the barriers of market entry and reduces the effect of agglomerations for new firms;

- in the absence of flexibility (inelastic supply) in the markets of production factors, which reduces the enterprise efficiency;

e) functional blocking (interconnection and vertical integration of enterprises), which burdens the innovation technologies introduction.

As there are evident and potential internal deficiencies in the settlements development it is necessary to point out:

1 Tarnarutsky A. Implementation of social contracts (compacts) practice URL: http://crps.sumynews.com/policy-development/implementing-practice-social contract/item/6-vprovadzhennya-praktyky-suspilnyx-dogovoriv-kompaktiv.html. 2 Tarshina O. Formation of State Social-Economic Policy in Ukraine / O. Tarshina // Economy and the state. – 2006. – No. 3. – P. 63-65.

96

- high level of fixed assets depreciation; - dependence of export-oriented enterprises on the world market

situation; - high material, energy and assets capacity of goods production. It ought to be noted that due to the military conflict in Donbas, there

was a significant breakdown of industry. There were about twenty thousand enterprises closed, which comprised 70% of the total number. Out of 95 state-owned mines in 2014, there were only 24 in Donbas. The production at promising mines as "Sverdlovantratsit", "Rovenkiantracit", "Zhovtnevyi rudnik" was stopped; the entire mine colliery groups such as "Lisichanskugol", "Luganskugol", "DVEC", "Makiivugol" were closed.

2.2. For some cities of Donetsk oblast there is a noticeable decrease in the amount of housing taken into exploitation (Table 6). Construction activity should be considered as the most important one for the economic and social development of the regions.

Table 6 Acceptance of housing exploitation in the cities of Donetsk oblast

during 2015-2017

City/town

2017 year 2016 year 2015 year m2

of gross area

% until 2016

m2 of gross

area

% until 2015

m2 of gross

area

% until 2014

Donetsk Oblast 57621 132.6 43454 22.8 190706 45.9 Bahmut 4064 248.0 1639 106.7 1536 25.9 Vuhledar - - 791 374.9 211 65.9 Dobropol'ia 181 39.1 463 102.0 454 227.0 Druzhkivka 867 373.7 232 34.4 675 24.0 Kostiantynivka 116 11.2 1032 560.9 184 10.5 Kramatorsk 4473 81.8 5467 125.7 4349 22.2 Leman 3569 72.5 1408 26.6 5297 92.7 Mariupol 8769 158.1 5546 42.9 12931 36.0 Mirnograd 801 – – − 598 47.8 Novogrodovka – – − − − − Pokrovsk 2019 41.4 4877 211.6 2305 74.4 Selydove 1105 682.1 162 − − − Slov'iansk 7273 776.2 937 15.1 6205 69.8

2.3. For the settlements of the Donetsk oblast there is an invariable

growth of investments and innovations, territorial differentiation at their level in the territory of the oblast (Table 7).

97

Table 7 The capital investment (in actual prices, ths. UAH)

City/town Assimilated (used) capital investments

2015 year 2016 year Jan-Mar of 2017 year

Donetsk Oblast ths. UAH

% to total sum

ths. UAH % to total sum

ths. UAH % to total sum

Bahmut 12875670 100.0 6640736 100.0 1954355 100.0 Vuhledar 245671 1.9 102003 1.4 22335 1.1 Dobropol'ia 11380 0.1 11057 0.1 9815 0.5 Druzhkivka 428949 3.3 171908 1.6 81231 4.2 Kostiantynivka 145224 1.1 176123 3.1 50044 2.6 Kramatorsk 58098 0.5 26824 0.3 125974 6.4 Leman 783672 6.1 549146 9.8 235552 12.1 Mariupol 26096 0.2 17762 0.2 8134 0.4 Mirnograd 2000756 15.5 1876236 19.8 645872 33.0 Novogrodovka 41421 0.3 3533 0.1 1573 0.1 Pokrovsk 640767 5.0 313072 1.6 194700 10.0 Selydove 90621 0.7 31251 0.5 14945 0.8 Slov'iansk 36394 0.3 75647 0.6 26735 1.4

Less than 50 percent of investments in the main capital were

concentrated only in the oblast centres and adjoining regions. in the largest cities. During the last years there was a significant decrease in the size of capital investments. including % to the total volume. The factors of low investment attractiveness of the populated places of Donetsk oblast include the following:

- remoteness from the centre, mass markets for sales and services; - a low degree of diversification of the economy, a mono-characteristic

of specialization; - outdated funds of industrial enterprises; - shortcomings in social infrastructure; - risks connected with the conduct of the ATO in the territory of

Donetsk and Luhansk Oblasts, etc. 2.4. Notwithstanding the high scientific and technical potential, old

industrial region is characterized by an unprofitable level of industrial innovations realization, which manifests itself both in an infinite number of enterprises that initiate innovation activity, as well as in an inaccurate part of innovation products in the total volume of products, active

98

transformation of scientific ideas in technology and products. Only the cities of Mariupol and Slavyansk during recent years have initiated scientific-technical activities (the total volume of scientific and scientific-technical works performed by the own forces of the city is 20569.9 thousand UAH and 18168.2 thousand UAH, respectively).

3. The social peculiarities of the small towns in Donetsk oblast development include the following:

3.1. Despite the military conflict, there is a high level of average monthly salary (Table 8). Although the salary in the cities of Donetsk oblast increases by an average of 6-10% in comparison with the previous year, in value terms a substantial increase is not visible.

Table 8 The Average monthly salary of employees

City/town

2015 year 2016 year 2017 year

UAH % to the

previous year

UAH % to the previous year UAH % to the

previous year

Donetsk Oblast 3858 102.7 4980 129.1 5495 110.3 Bahmuth 3665 107.2 4012 109.5 4204 104.7 Vuhledar 5572 102.7 5668 101.7 6506 114.8 Dobropil'ia 4801 102.4 5082 105.9 5960 117.3 Druzhkivka 3073 104.8 3953 128.6 3978 100.6 Kostiantynivka 2885 107.7 3276 113.6 3497 106.7 Kramatorsk 3603 108.9 4504 125.0 4939 109.7 Leman 3205 105.6 3047 95.1 3952 129.7 Mariupol 3924 107.0 4802 112.4 5029 104.7 Mirnograd 4136 105.2 4672 113 4752 101.7 Novogrodivka 5735 94.9 6415 111.9 7239 112.8 Pokrovsk 4818 90.8 5804 120.5 6499 111.9 Selydove 3815 99.4 4218 110.6 4740 112.4 Slov'iansk 3140 103.5 3732 118.9 4516 121.0

3.3. There is an unsatisfactory level of competitiveness of cities from

the pioneers of "education", "culture" and "health care". The number of schools of education, culture and health does not correspond to the number of settlements in cities, there is a tendency to decrease their amount.

3.4. Due to ATO 20 libraries, 200 schools in Donbas are not working, 17 more are destroyed or seriously damaged.

99

3.5. High unemployment, especially among young people. The total number of registered with the State Employment Service for unemployed persons at the end of August, 2014, was 32.2 thousand people in Donetsk oblast which is 5% less than at the end of July, 2014, and 5.6% less than at the end of August, 2013. In 2016, 14.6 thousand unemployed were registered (not including the territory of the anti-terrorist operation).1

4. Characteristics of ecological factors for the old industrial regions development

The negligent concentration of industrial production, transport infrastructure and the high density of population created a huge impression on the biosphere of the industrial regions – the highest in Ukraine and in Europe. The concentration of industry in the industrial regions has led to the emergence of scientific ecological and social problems. Thus, the density of emissions from stationary sources of pollution from discharges to one quarter kilometer of the territory of the Donetsk Oblast amounts to 61.8 tons of harmful substances and 352.7 kg per capita which is respectively 8.4 and 3.7 times higher than the average level within the country. In 2013, Donetsk oblast accounted for 24.1% of all revenues of contaminants in atmospheric air.2

The main amount of emissions of harmful substances (95%) is the result of the work of the metallurgical, power and coal industry. Air pollution is released from the high concentrations of mercury in the soils of the Donbas, solid burning waste coal mines. The populated areas of Donetsk Oblast took the first place in Ukraine in terms of pollution levels.

During the military conflict, the environmental damage has increased. Nine mines were flooded and were not subject to restoration. It caused poisoning of drinking water, soil, flora and fauna of these territories. Because of the hostilities, the land of Donbas was contaminated by explosive ammunition, the emissions of chemical enterprises and other enterprises. Thus, one of the obligatory sources of strategic planning has to

1 Strategic Planning as an Instrument for the Regional Governance Implementation / Yu. Ivashkov // Scientific Intelligence from State and Municipal Management. – 2014. – Issue 2. – pp. 242-249. 2 Stechko D. Formation of mechanisms of regional management of socio-economic processes / D. Stechko // Bulletin of the Khmelnitsky Institute of Rational Governance and Law. – No. 3. – P. 240-244.

100

be the establishment of contradictions between the territories stable functioning issues and regions development.

During the last few years, the issues have arisen in various spheres of society. The presence of a number of issues is characteristic for certain territories that are known to be specific. This is due to the uneven placement of productive forces across the territories of the country, a fairly large differentiation of various cities at the level of socio-economic development, their financial and budget security and so on.

The main goal is to create an advanced management system for managing the city economy that has to be carried out in two directions:

vertical – between state, regional and local levels of government; horizontal – between the cities. It is a complex but necessary and possible way. Its result may be the

economic forecast development for 3-5 years as a whole in the city, as well as in each of its local territories. As a result the social control system will take a complete form.

The improvement of the city's administration has to be carried out not episodically, but on a permanent basis. It is evident that in the structures of the system of social control, permanent units (departments for the social control improvement) ought to be created. The main directions of such units have to be the preparation and realization of measures in order to improve the existing management system.

The main task of the successful development of such practical management methods is the refinement and the completion of the concept of staff vocational training, the fulfillment of the requirements that the current practice of administration entails to the supervisor.

Therefore, in the long run, there are the necessary theoretical and scientific and practical prerequisites for a broad expansion of tasks in order to enhance the urban economic development management and the relevant plans and programs realization, which promotes not only the efforts of the city leadership but also support from state organizations.

101

2.2. NAFTOGAZ V GAZPROM: RUSSIA’S WEAPONIZATION OF ENERGY1

I. Executive Summary In February 2018, an arbitral tribunal in Stockholm, Sweden issued its

final award in an epic, four-year legal battle between Ukraine’s Naftogaz and Russia’s Gazprom. The Russian energy giant had asserted $81.4 billion in total claims against Ukraine’s state-owned energy company, amounting to about 75% of the developing nation’s gross domestic product. In a stunning legal victory for Ukraine, the tribunal instead ordered Gazprom to pay Naftogaz $2.56 billion.

The arbitration handed Ukraine a significant win, but it didn’t end this David and Goliath fight. Within 24 hours of issuance of the final award, Gazprom cut off essential gas deliveries to Ukraine for the seventh time.2 This retaliatory action was consistent with Russia’s long history of using its vast energy resources to carry out a sanctions and incentives regime against Ukraine, granting steep price discounts and generous credit terms to administrations it considers cooperative and punishing administrations that pursue more nationalistic policies. Since 2014, Russia’s energy sanctions have been combined with military operations to directly threaten the political independence and territorial integrity of Ukraine.

With its most recent supply cut-off, Gazprom seems to have abandoned all pretense that its contract administration decisions will be based on reasonable commercial considerations or the rule of law. Given that the European Union (EU) relies upon Russia for close to 40% of the gas it consumes,3 the broader implications are sobering. Like Ukraine, the EU and its member states should take bold steps to develop competitive 1 The authors of subsection: Kamensky Dmitro, PhD in Law, associate professor, head of law department at Berdyansk State Pedagogical University, Berdyansk, Ukraine; Sullivan Julia, practicing attorney and energy law expert, Annapolis, MD, USA 2 Naftogaz press release, Gazprom refusal to supply gas violates Stockholm Tribunal ruling (1 March 2018) (available at http://www.naftogaz.com/www/3/nakweben.nsf-/0/72AFCEDE314F365EC225824300465063?OpenDocument&year=2018&month=03&nt=News&) (site last visited March 1, 2018). 3 Henry Foy, Russia’s gas exports to Europe rise to record high, Financial Times (January 3, 2018) (available at https://www.ft.com/content/7b86f4be-f08e-11e7-b220-857e26d1aca4) (site last visited March 22, 2018).

102

supply options to mitigate Russia’s growing economic and political leverage.

II. Arbitration Proceeding Prior to 2009, Gazprom and Naftogaz rejected suggestions to resolve

their disputes under the legal umbrella of international commercial arbitration, relying instead on bilateral negotiations between the two governments.1 Fortunately for Ukraine, the currently-effective contract, negotiated by the Russian and Ukrainian prime ministers and signed by the parties in January 2009, includes an agreement to submit disputes to binding arbitration under the rules of the Arbitration Institute of the Stockholm Chamber of Commerce (SCC). In 2015, both parties commenced arbitration.

A. How do arbitration proceedings work? International arbitration is a widely-preferred method of resolving

commercial disputes involving cross-border transactions.2 It arose as an alternative to traditional litigation in national courts, which is generally viewed as more expensive, more time-consuming, and potentially biased against foreign parties.3

International arbitration has several defining characteristics. First, it is consensual. In most cases, each party must agree to

arbitration. Second, arbitrators are non-governmental decision-makers. They do

not act as agents for any party or any government, but are private persons ordinarily selected for their subject-matter expertise. The parties usually

1 Andrei V. Belyi & Ulrich G. Klaus, Russia Gas Exports and Transit Dispute Resolution under the ECT: Missed Opportunities for Gazprom or False Hopes in Europe, 25 J Energy Nat Resources L 205 at 205 (2007) (available at http://www.tandfonline.com/doi/abs-/10.1080/02646811.2007.11433460) (site last visited February 19, 2018). 2 Queen Mary University of London, 2015 International Arbitration Survey: Improvements and Innovations in International Arbitration (2015) (available at http://www.arbitration.qmul.ac.uk/docs/164761.pdf) (site last visited January 23, 2018) (90% of respondents indicate that international arbitration is their preferred dispute resolution mechanism, either as a stand-alone method (56%) or together with other forms of alternative dispute resolution (34%)). 3 Cf, Loewen Group, Inc. v. United States, ICSID Case No. ARB[AF]/98/3 (Mississippi jury trial amounted to a denial of procedural and substantive justice contrary to the minimum standard of treatment under NAFTA and international law).

103

seek arbitrators “detached from the courts, governmental institutions, and cultural biases of either party.”1

Third, arbitration is flexible. In addition to selecting the arbitrators, the parties can select specific procedures to suit their particular needs. The arbitration agreement ordinarily stipulates that the proceeding will occur pursuant to the procedural rules of an internationally neutral institution. Here, Gazprom and Naftogaz chose the SCC, which was recognized in the 1970s by the US and the Soviet Union as a neutral center for the resolution of East-West trade disputes.2 The parties agreed that the language of the arbitration would be Russian.3

Fourth, the parties can choose the applicable law, and can choose different sources of law to govern procedural and substantive matters. This is important because it prevents either party from seeking to influence the outcome of the case by changing its own national law. Procedural issues are decided under the law of the place selected by the parties as the seat of the arbitration, which in this case is Sweden. Substantive issues are decided under the law selected by the parties or, if no selection was made, under the law selected by the arbitrators. In this case, the parties chose the substantive law of Sweden.

Fifth, the parties can, and usually do, choose to make the proceedings confidential. Here, Naftogaz and Gazprom publicly acknowledged that they have agreed to arbitration in Sweden under the rules of the SCC. They also have made (sometimes conflicting) public statements about the progress of the proceedings. However, the awards themselves remain confidential.4 The SCC does not publish or comment on its rulings, leaving it up to parties involved to make the outcome public if they wish.

Finally, arbitration produces a binding award which is capable of being enforced. The United Nations Convention on the Recognition and 1 Gary Born, International Commercial Arbitration at p.2 (Transnational Publishers, Inc. and Kluwer Law International 2001). 2 Arbitration Institute of the Stockholm Chamber of Commerce website (available at http://www.sccinstitute.com/about-the-scc/) (site last visited February 20, 2018). 3 2009 gas supply contract, supra note 39 at Article 8.2. 4 See Rule 3 of the Rules of the Stockholm Chamber of Commerce (“Unless otherwise agreed by the parties, the SCC, the Arbitral Tribunal and any administrative secretary of the Arbitral Tribunal shall maintain the confidentiality of the arbitration and the award”) (available at http://sccinstitute.com/dispute-resolution/rules/) (site last visited 20 February 2018).

104

Enforcement of Foreign Arbitral Awards (New York Convention) has been ratified by 157 nations, including Russia and Ukraine, and obliges member states to recognize and enforce foreign arbitral awards with very limited exceptions.1

B. The Arbitral Tribunal’s decision The arbitral tribunal issued separate orders on the gas supply contract

and the gas transit agreement in December 2017 and February 2018, respectively. Although the awards are confidential, a broad outline has emerged from the public statements of the parties.

The December 2017 award on the gas supply contract was a victory for Ukraine. The arbitral tribunal ordered Gazprom to (1) adjust the price of gas sold to Ukraine from April 2014; (2) drop a demand for payment, under a “take-or-pay” clause, for gas Ukraine failed to lift for the period 2012-2016; and (3) eliminate a provision that prohibited the re-export of Russian sourced gas. For its part, Naftogaz was ordered to pay more than $2 billion for gas supply arrears, and to buy 5 bcm of gas annually from Gazprom in 2018 and 2019, but at prices lower than it was then paying its EU suppliers.2

The February 2018 award on the gas transit contract also was a victory for Ukraine. The arbitral tribunal ordered Gazprom to pay Ukraine $4.63 billion for failure to tender the agreed volume of gas for transit and for paying too little for what it did send through the Naftogaz pipelines.

Together, the two awards require Gazprom to make a net payment to Naftogaz of $2.56 billion. Naftogaz’s chief executive has stated that proceeds from the legal victory will be used to further diversify away from Russian supplies by increasing domestic production and improving energy efficiency.3

Meanwhile, the Antimonopoly Committee of Ukraine (AMC) found that Gazprom abused its position as the dominant purchaser of Ukrainian

1 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (available at http://www.newyorkconvention.org/new+york+convention+texts) (site last visited 20 February 2018). 2 Mazneva, supra note 65. 3 Roman Olearchyk, Ukraine’s Naftogaz claims $2.56 bn legal victory over Russia’s Gazprom, Financial Times (February 29, 2018) (available at https://www.ft.com/content/-b933b8bc-1cd3-11e8-aaca-4574d7dabfb6) (site last visited March 1, 2018).

105

transit capacity and imposed a €6.8 billion fine.1 “Gazprom has never won a case against it in a Ukrainian court” and refuses to pay.2

C. What explains Ukraine’s recent success? Since 2015, Ukraine has taken important steps to reduce its

vulnerability to Russia’s energy weapon. Ukraine has invested in energy efficiency and renewable energy and established important commercial relationships with alternative suppliers of natural gas. Equally important, Ukraine abandoned its previous strategy of bilateral negotiations with Russia and invoked a rules-based dispute resolution process.

During the 2006 crisis, Russia “clearly rejected any idea of an international arbitration,” preferring instead to “exert political and economic pressure on Ukraine in order to achieve better economic (tariffs increase) and political (political regime change) influence in Ukraine.”3 During the 2009 crisis, there is evidence that Ukrainian President Yushchenko hoped to avoid bilateral negotiations by enlisting the support of the EU – a “tripartite summit” – but Prime Minister Tymoshenko defied him.

Power-based bilateral negotiations, representing a “realpolitik” approach, generally favored Russia.4 Professor Newnham explained:

Since the classic study by Hirschman (1945), theorists of economic influence have pointed to several factors which enable a state to successfully use its economic power against others (see, for example, D’Anieri, 1999: 48–56). First, it is very helpful for the initiating state to have a larger economy than the target state. This enables it to better survive any economic conflict. By this basic measure, Russia clearly has an advantage over its neighbors in the former Soviet Union and Eastern

1 Sergiy Glushchenko (Asters), A €6 Billion Unpaid Fine: The Ukrainian Antitrust Case Against Gazprom, 8 Journal of European Competition Law & Practice 510 (Sept 1, 2017) (available at https://doi.org/10.1093/jeclap/lpx064) (site last visited Feb 7, 2018); Kenneth Rapoza, Ukraine Court Whacks Russia’s Gazprom With Mega Lawsuit, Forbes (December 5, 2016) (available at https://www.forbes.com/sites/kenrapoza/2016-/12/05/ukraine-russias-gazprom-lawsuit/#1b512e68520f) (site last visited February 7, 2018). 2 Id. 3 Andrei V. Belyi & Ulrich G. Klaus, Russia Gas Exports and Transit Dispute Resolution under the ECT: Missed Opportunities for Gazprom or False Hopes in Europe, 25 J. Energy Nat. Resources L. 205, 215 (2007). 4 Andrei V. Belyi & Ulrich G. Klaus, supra note 124 at p.217.

106

Europe. Second, it is helpful if the initiating state has a lower percentage of its trade with the target than the target does with it. For example, Germany has historically had only about 2% of its trade with Poland, yet this has often accounted for 30–40% of Poland’s trade volume (Newnham, 2006:7). Clearly, Germany could easily impose a painful trade boycott on Poland, at very little cost to itself. Here again, Russia is in a similar position with most of its smaller, economically weak neighbors. Both of these conditions force the target state into what Keohane and Nye (1989) called “asymmetrical interdependence,” or more simply, dependence.1

In 2009, Ukraine’s economy was in shambles, making it difficult to secure credit from alternative suppliers. When Russia cut off Ukraine’s supply in January 2009, in the dead of winter, the people required immediate relief, something multilateral summits and multi-year arbitration proceedings could not offer.

But in 2015, Ukraine achieved a break-through. It was able to move its economy to market-priced gas, ending decades of dependence on Russian subsidies. It also established trading relationships with European suppliers who proved far more reliable than Gazprom. All of this gave Ukraine the space it needed to invoke a rules-based dispute resolution process.

D. Gazprom’s Appeal to the Swedish Courts Gazprom filed a petition to annul the December 20172 and February

20183 awards. Petitions for annulment rarely succeed in the Swedish courts. For the period 2003 through 2016, parties challenging arbitral awards succeeded in the Swedish Supreme Court in 3 out of 20 cases – 15% of the time. For the period 2014 to 2017, the lower Swedish courts granted relief in 6 of 30 cases – 20% of the time – but all of those cases involved obvious procedural errors such as lack of jurisdiction, lack of notice, and default.

Under Swedish law, an arbitration award cannot be successfully challenged based on a review of the merits of the case.4 Sections 33 and 34 1 Newnham, supra note 16 at p.135. 2 Gazprom appeals against Stockholm tribunal’s interim ruling in dispute with Naftogaz, Interfax (November 14, 2017) (available at http://en.interfax.com.ua/news/economic/-461809.html) (site last visited January 18, 2018) 3 Id. 4 PJSC Ukrnafta v Carpatsky Petroleum Corporation, Case No. T-10470-10 at p.14 (Svea Court of Appeals March 26, 2015) (available at https://www.arbitration.-

107

of the Swedish Arbitration Act1 set forth procedural grounds on which an arbitration award can be nullified. Section 51 the Swedish Arbitration Act2 states that where, as here, neither party is domiciled or has its place of business in Sweden, they may, in a commercial relationship, through an express written agreement, exclude or limit the application of the grounds for setting aside an award as are set forth in section 34. However, Section 51 does not allow the parties to avoid the grounds for annulment set forth in Section 33.

The agreement between Gazprom and Naftogaz states that the decision of the arbitral tribunal “is final, not subject to appeal and has binding force on the Parties.” It is not clear whether a Swedish court would find this language sufficiently specific to effect a waiver of the grounds for annulment set forth in Section 34.3 The grounds for annulment set forth in Section 34 concern procedural issues which we cannot meaningfully address with the limited information available in the public domain. For purposes of this article, we focus on the grounds set forth in Section 33.

Under Section 33, an arbitration award may be set aside, in whole or in part:

1. if the award, or the manner in which the award arose, is clearly incompatible with the basic principles of the Swedish legal system;

2. if the award includes determination of an issue which, in accordance with Swedish law, may not be decided by arbitrators;

sccinstitute.com/views/pages/getfile.ashx?portalId=89&docId=2432599&propId=1578) (site last visited January 19, 2108); see also Nordic Ground Support Equipment AB v MT Management & Technology Partners OY, Case No. T 8851-13 at p.4 (Svea Court of Appeals September 18, 2014) (available at https://www.arbitration.sccinstitute.com/views-/pages/getfile.ashx?portalId=89&docId=2202395&propId=1578) (site last visited January 19, 2018) (refusing to invalidate an award merely because it was incorrect). 1 Available at http://www.sccinstitute.com/media/37089/the-swedish-arbitration-act.pdf (site last visited March 22, 2018). 2 Id. 3 Section 34 allows the court to set aside an arbitration award, in whole or in part, if: (1) the award is not covered by a valid arbitration agreement between the parties; (2) the arbitrators have made the award after the expiration of the period decided on by the parties, or where the arbitrators have otherwise exceeded their mandate; (3) the arbitral proceedings should not have taken place in Sweden; (4) an arbitrator has been appointed contrary to the agreement between the parties or this Act; (5) an arbitrator was unauthorized if, without fault of the party, there otherwise occurred an irregularity in the course of the proceedings which probably influenced the outcome of the case.

108

3. if the award does not fulfil the requirements with regard to the written form and signature.

Of the three grounds for annulment under Section 33, the one that is perhaps the most ambiguous is Section 33(2), which authorizes the court to set aside an award “if the award, or the manner in which the award arose, is clearly incompatible with the basic principles of the Swedish legal system.” This provision applies where “a matter which is, in and of itself, eligible for arbitration has been decided in a manner which violates public policy.”1

Swedish cases indicate that the strict public policy standard could be met where “fundamental” or “elementary” principles have been disregarded.2 It is intended to apply only in “highly objectionable”3 or “highly appalling”4 cases where the violation of public policy is “obvious.”5 Relevant factors include “the nature and importance of the interest,”6 whether the interests of society or a third party are “concretely involved,”7 involved,”7 and the nature of the Swedish interest in the case.8 The

1 Systembolaget Aktiebolag v The Absolut Company Aktiebolag, Case No. T-5767-13 at 12 (Swedish Supreme Court 17 June 2015) (available at https://www.arbitration.-sccinstitute.com/views/pages/getfile.ashx?portalId=89&docId=2476621&propId=1578) (site last visited January 17, 2018); see also PAX-Design LLC v Connyland AG, Case No. T 1417-14 at p.7 (Svea Court of Appeals November 13, 2014) (available at https://www.arbitration.sccinstitute.com/views/pages/getfile.ashx?portalId=89&docId=2235735&propId=1578) (site last visited January 19, 2018). 2 Republic of Kazakhstan v Ascom Group S.A., et al., Case No. T 2675-14 at p.40 (Svea Court of Appeals December 9, 2016) (available at https://www.arbitration.-sccinstitute.com/views/pages/getfile.ashx?portalId=89&docId=2950803&propId=1578) (site last visited January 19, 2018). 3 Republic of Kazakhstan v Ascom Group S.A., et al., Case No. T 2675-14 at p.40 (Svea Court of Appeals December 9, 2016) (available at https://www.arbitration.-sccinstitute.com/views/pages/getfile.ashx?portalId=89&docId=2950803&propId=1578) (site last visited January 19, 2018). 4 PAX-Design LLC v Connyland AG, Case No. T 1417-14 at pp.7-8 (Svea Court of Appeals November 13, 2014) (available at https://www.arbitration.sccinstitute.com-/views/pages/getfile.ashx?portalId=89&docId=2235735&propId=1578) (site last visited January 19, 2018). 5 Systembolaget, supra note 140, at 15. 6 Id. at 12. 7 Moscow City Golf Club v Nordea Bank AB, Case No. T-4982-11 at para 11 (Swedish Supreme Court November 23, 2012) (available at https://www.arbitration.sccinstitute.-com/views/pages/getfile.ashx?portalId=89&docId=1450921&propId=1578) (site last visited January 17, 2018). 8 Id. at 12.

109

economical-political interests of foreign states typically do not affect the validity of arbitral awards under Swedish law.1

The arbitral tribunal’s decision will be upheld so long as it is “reasonably motivated and fall[s] within the scope of what could reasonably be concluded.”2 If the evidence shows that an award clearly violated fundamental principles, a Swedish court will not automatically annul the award. Instead, the court would, “sua sponte, draw the attention of the parties to such fact and afford them an opportunity to present in detail their views on the matter.”3 The challenging party bears the burden of proof.4

Specific examples where the strict public policy standard could be met include “disputes involving agreements which violate established practices, e.g. agreements on bribery,”5 claims “based on gambling or criminal activity (e.g. an obligation to pay an agreed bribe),”6 cases where “the award came about due to a crime, e.g. following a threat against, or the bribing of, an arbitrator,”7 cases “where a party, through an award, has been ordered to carry out performance which is prohibited by law,”8 and cases where “the award has been of such a penal nature that it cannot be deemed acceptable.”9 It is unclear whether awards that are based on false

1 Id. at 13. 2 Systembolaget, supra note 140, at 15. 3 Republic of Kazakhstan v Ascom Group S.A., et al., Case No. T 2675-14 at p.40 (Svea Court of Appeals December 9, 2016) (available at https://www.arbitration.sccinstitute.-com/views/pages/getfile.ashx?portalId=89&docId=2950803&propId=1578) (site last visited January 19, 2018). 4 BTH Bygg Aktiebolag v Surmonte Invest AB, Case No. T 6335-16 at p.7 (Svea Court of Appeal May 30, 2017) (available at https://www.arbitration.sccinstitute.com/views-/pages/getfile.ashx?portalId=89&docId=3130853&propId=1578) (site last visited January 19, 2018). 5 Systembolaget, supra note 140, at 12. 6 Republic of Kazakhstan v Ascom Group S.A., et al., Case No. T 2675-14 at p.40 (Svea Court of Appeals December 9, 2016) (available at https://www.arbitration.sccinstitute.-com/views/pages/getfile.ashx?portalId=89&docId=2950803&propId=1578) (site last visited January 19, 2018). 7 Id. at pp.40-41. 8 Id. at p.40; PAX-Design LLC v Connyland AG, Case No. T 1417-14 at pp.7-8 (Svea Court of Appeals November 13, 2014) (available at https://www.arbitration.sccinstitute.com-/views/pages/getfile.ashx?portalId=89&docId=2235735&propId=1578) (site last visited January 19, 2018). 9 Republic of Kazakhstan, supra note 153 at p.40.

110

evidence1 and/or lead to “unreasonable results” could meet the strict public policy standard.2

We looked at every case from 2010 to 2017, and found no instances where the Swedish courts set aside an award based on public policy.

E. Naftogaz’s Ability to Enforce the Award Article 46 of the SCC Rules states that an award “shall be final and

binding on the parties when rendered. By agreeing to arbitration under these Rules, the parties undertake to carry out any award without delay.”3 In the event of non-performance, the successful litigant can proceed against the assets of the unsuccessful litigant in any jurisdiction where such assets may be found.

Gazprom does not have significant assets in Ukraine. Thus, for example, in 2016, Ukraine’s AMC imposed a €6.8 billion fine for Gazprom’s abuse of its position as the dominant purchaser of Ukrainian transit capacity, but the government has identified and arrested only €3 million in Gazprom assets to satisfy the debt. Ukraine has announced its intention to seize Gazprom’s international assets to satisfy the AMC fine and the arbitral award.4 Another option would be to sell the debt to private investors, transferring the collection risk to them.

The AMC fine will be more difficult to satisfy than the arbitral award. The AMC fine will be subject to local recognition and enforcement rules in the jurisdiction where the assets are located. Under the New York Convention, the arbitral award will not be subject to the same rules. The New York Convention obliges member states to recognize and enforce

1 Id. at p.41. 2 PAX-Design LLC v Connyland AG, Case No. T 1417-14 at pp.7-8 (Svea Court of Appeals November 13, 2014) (available at https://www.arbitration.sccinstitute.com/views/-pages/getfile.ashx?portalId=89&docId=2235735&propId=1578) (site last visited January 19, 2018). 3 Stockholm Chamber of Commerce, 2017 Arbitration Rules (available at http://sccinstitute.com/media/169838/arbitration_rules_eng_17_web.pdf) (site last visited March 10, 2018). 4 Ukraine going to seize Gazprom’s international assets, Unian (March 7, 2018) (available at https://economics.unian.info/10034738-ukraine-going-to-seize-gazprom-s-international-assets.html) (site last visited March 10, 2018).

111

foreign arbitral awards against eligible assets with very limited exceptions.1

Contravention of public policy is one of the few grounds for refusing the recognition or enforcement of a foreign award under the New York Convention.2 This has been applied to awards entered into for the purpose of carrying out a criminal activity, awards that give effect to bribery or other corrupt practices, and awards that violate EU antitrust and competition laws.3 It is very rare for a court to refuse to enforce a foreign arbitral award on grounds of public policy.4

III. The Gas War Continues On March 5, 2018, Gazprom notified Naftogaz that it was filing a new

arbitration complaint seeking termination of the existing gas supply and gas transit contracts.5 Arguably, Ukraine also has a right to terminate the

1 Under Article 5(2) of the New York Convention, recognition and enforcement of an arbitral award may be refused if the competent authority in the country where recognition and enforcement is sought finds that: “(a) The subject matter of the difference is not capable of settlement by arbitration under the law of that country; or (b) The recognition or enforcement of the award would be contrary to the public policy of that country.” Under Article 5(1) of the Convention, recognition and enforcement of the award may be refused if: “(a) The parties to the agreement referred to in article II were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or (b) The party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or (c) The award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognized and enforced; or (d) The composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or (e) The award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made.” 2 New York Convention, supra note 119, at Article V(2)(b). 3 International Bar Association, Report on the Public Policy Exception in the New York Convention at pp.16-17 (2015) (available at https://www.ibanet.org/LPD/Dispute_-Resolution_Section/Arbitration/Default.aspx) (site last visited March 22, 2018). 4 Id. at p.12. 5 Gazprom notifies Naftogaz proceedings to terminate export, transit contracts launched in Stockholm arbitration, Ukraine News Agency (March 5, 2018) (available at http://en.interfax.com.ua/news/economic/489839.html) (site last visited March 10, 2018).

112

supply contract, based on Gazprom’s failure to deliver pre-paid gas in March 2018.

The gas supply contract is governed by Swedish law, which is in line with the UNIDROIT Principles of International Contracts.1 UNIDROIT principles recognize a right to terminate where one party fails to perform a fundamental obligation. In determining whether a failure to perform an obligation amounts to a fundamental non-performance, relevant factors include:

whether (a) the non-performance substantially deprives the aggrieved party of what it was entitled to expect under the contract unless the other party did not foresee and could not reasonably have foreseen such result; (b) strict compliance with the obligation which has not been performed is of essence under the contract; (c) the non-performance is intentional or reckless; (d) the non-performance gives the aggrieved party reason to believe that it cannot rely on the other party’s future performance; (e) the non-performing party will suffer disproportionate loss as a result of the preparation or performance if the contract is terminated.2

UNIDROIT principles also imply a duty of good faith and fair dealing, which prohibits “abuse of rights” characterized by a party’s “malicious behavior.” An example of malicious behavior is when a party exercises its rights “merely to damage the other party.”3

Under Swedish law, the remedies for breach of contract include the right to terminate the contract for cause and claim damages.4 Damages “should be an amount that puts the non-breaching party in the same economic position it would have been in had the breach not occurred, i.e. as if the contract had been duly performed. The burden of proving the breach, the damage and the causal relationship between the two falls on the party claiming damages.”5

1 Stockholm Chamber of Commerce, Swedish Law and Arbitration at p 4, ¶ 1.3.1 (2017) (available at http://www.sccinstitute.com/media/171471/yas_initiative_2017.pdf) (site last visited March 10, 2018). 2 UNIDROIT Article 7.3.1 (available at UNIDROIT https://www.unidroit.org/instruments/-commercial-contracts/unidroit-principles-2016) (site last visited March 10, 2018). 3 Id. at Article 1.7. 4 Stockholm Chamber of Commerce, supra note 166 at ¶ 1.5.2; UNIDROIT Article 7.3.1, supra note 167. 5 Stockholm Chamber of Commerce, supra note 166, at ¶ 1.5.3.

113

IV. Conclusion Since the collapse of the Soviet Union, Ukraine has become a testing

ground for Russia’s aggressive measures. Before Russia interfered in the US election in 2016,1 it interfered in elections in Ukraine.2 Before Russia hacked into US electric utilities in 2016-2017,3 it hacked into electric utilities in Ukraine.4 Before Russia became the EU’s dominant gas supplier, it sold gas to Ukraine at steep discounts, inducing a relationship of dependency which it has used ever since to political advantage.

Ukraine turned a corner in 2015, when it stopped buying natural gas from Russia and established relationships with alternative suppliers. After an arbitral tribunal ordered Naftogaz to purchase 5 bcm per year from Gazprom in 2018 and 2019. Within two months, Ukraine found itself cut off again in the depths of winter, despite the fact that it had prepaid for deliveries. Three days later, and with typical Ukrainian resilience, Naftogaz secured alternative supplies from the EU, which itself receives up to 40% of its gas from Russia. With litigation continuing, the current situation feels more like stalemate than resolution. It is in this context that the EU and its member states must continue to weigh the benefits of abundant Russian gas with the economic and political risks of its increasing dependence on an unreliable energy supplier.

1 Office of the Director of National Intelligence, Assessing Russian Activities and Intentions in Recent US Elections (January 6, 2017). 2 Lucan Ahmad Way and Adam Casey, Russia has been meddling in foreign elections for decades, Washington Post (January 8, 2018) (available at https://www.washingtonpost.-com/news/monkey-cage/wp/2018/01/05/russia-has-been-meddling-in-foreign-elections-for-decades-has-it-made-a-difference/?utm_term=.3f1f9493423c) (site last visited March 20, 2018) (citing “plausible evidence” that Russian interference was “decisive” in Ukraine’s 1994 election). 3 US Department of Homeland Security, Russian Government Cyber Activity Targeting Energy and Other Critical Infrastructure Sectors (March 15, 2018) (available at https://www.us-cert.gov/ncas/alerts/TA18-074A) (site last visited March 20, 2018). 4 Julia E. Sullivan & Dmitriy Kamensky, How cyber-attacks in Ukraine show the vulnerability of the U.S. power grid, Electricity Journal (April 2017).

114

2.3. WATER RESOURCES INTEGRATED GOVERNANCE IN UKRAINE IN CONDITIONS OF SUSTAINABLE DEVELOPMENT1

Target setting in general terms. Water resources in the system of sustainable development in Ukraine are a strategic and vital natural resource, therefore, at the present stage, there is a need to form and implement effective mechanisms for managing the water resources utilization system. The demand in transferring the water resources utilization system in Ukraine to the sustainable development model is due to the need to decelerate the negative trends in the water resources use and to accelerate the material and technical base of water use innovation renewal. The issue is aggravated by the uneven nature of the water use organizational and technical aspects in various sectors of the national economy, due to the specifics of the technological process and the ineffective provision of drinking water access to the population.

Actual scientific researches and issues analysis. A lot of domestic scholars, public figures and experts are engaged in the sustainable development ecological sphere research, namely, in issues related to the water resources utilization system: M. Khvesik2, M. Romashchenko, M. Yatsyuk, A. Demidenko3, T. Adamenko4, P. Kovalenko5, V. Sorokovskii6. Among the unsolved matters in this area, the researchers emphasize the following: unsatisfactory ecological state of surface and underground sources of drinking water supply; non-compliance with the sanitary protection zones regime at many sources and objects of drinking water

1 The author of subsection: Orlova Nataliia, Doctor of Sciences in Public Administration, Professor of the Department of Public Management and Administration, Kyiv National University of trade and economics, Kyiv, Ukraine 2 M. Khvesik. Paradigmatic view on the concept of sustainable development of Ukraine / M. Khvesik, I. Bistryakov // Economy of Ukraine. – 2012. – № 6. – p. 4-12. – Access mode: http://nbuv.gov.ua/UJRN/EkUk_2012_6_2. 3 Conceptual bases of integrated reform of the water resources utilization system governance of sectoral structure in Ukraine / M. Romashchenko, M. Yatsyuk, A. Demidenko and others. [Electronic resource]: – Access mode: https://www.mama-86.org/images/publications/gwp/GWP_Zasady_ukr_web.pdf 4 Re-thinking of water security for Ukraine / T. Adamenko, A. Demidenko and others. [Electronic resource]: – Access mode: https://mama86.org/images/publications/gwp/ Rethinking_Water_Sequrity_ukr.pdf 5 P. Kovalenko. Actual issues of using water resources and land reclamation at the present stage / P. Kovalenko // Reclamation and water governance. – K.: Agrarian Science, 2011. – Issue 99. – p. 5-16. 6 V. Sorokovsky and others. Rural drinking water supply from idea to implementation / Swiss-Ukrainian project "Support for decentralization in Ukraine" DESPRO. – K., 2016. – 170 p.

115

supply; unsatisfactory technical condition and wear and tear of water supply and sewage systems; insufficient level of drinking water supply and drainage systems of resource and energy saving technologies implementation, water counters and equipment.

Unresolved parts of the general issue. Transferring the water resources utilization system by improving certain mechanisms for regulating these processes to the model of sustainable development is too complicated. Therefore, a strategic direction and a priority future task is the formation of an integrated water resources utilization system in Ukraine that will make it possible to reconcile current water needs with the further ones, to balance the state and corporate interests in household water usage, to skilfully combine market regulatory instruments with administrative ones, to weigh up legal contradictions regarding withdrawal of water rent and reimbursement of losses incurred by water sources, eliminate the deficit of investment and innovation resources in order to build water protection infrastructure.

The purpose of the article is to form the directions of integral water resources utilization system in Ukraine in the conditions of the sustainable development strategy implementation.

The key findings of the study. In September 2015, within the framework of the 70th session of the UN General Assembly in New York, the UN Summit on Sustainable Development was held, which approved new benchmarks for sustainable development beyond 2015. The outcome document of the Summit "Transforming our world: an agenda for sustainable development by 2030", 17 Sustainable Development Goals (CDGs) and 169 goals were approved. The result of the localization of sustainable development goals into the Ukrainian context was the national system of the CDGs implementation (86 enhancement tasks and 172 indicators for monitoring their implementation), which was reflected in the National Report "Sustainable Development Goals: Ukraine"1.

In The National Report "The Objectives of Sustainable Development: Ukraine" the water target is # 6 "Clean water and proper sanitary conditions" which has been reflected in the following tasks:

1 National Report "Sustainable Development Goals: Ukraine" [Electronic resource] // Ministry of Economic Development and Trade of Ukraine. – 2017. – Access mode: http://www.un.org.ua/ua/publikatsii-ta-zvity/un-in-ukraine-publications/4203-2017-natsionalna-dopovid-tsili-staloho-rozvytku-ukraina-iaka-vyznachaie-bazovi-pokaznyky-dlia-dosiahnennia-tsilei-staloho-rozvytku-tssr

116

Task 6.1 is to ensure availability of quality services for the safe drinking water supply, construction and reconstruction of centralized drinking water supply systems with the use of the latest technologies and equipment.

Task 6.2 is to ensure the availability of modern drainage systems, construction and reconstruction of water intake and sewage treatment plants with the use of the latest technologies and equipment.

Task 6.3 is to reduce discharges of untreated sewage, first of all using innovative water purification technologies at the state and individual levels.

Task 6.4 is to increase the efficiency of water use. Task 6.5 is to ensure implementation of Integrated Water Resources

Governance1. One of the main laws regulating water issues is the Water Code of

Ukraine. In accordance with the Water Code, all waters (water objects) on the territory of Ukraine are the national treasures of the Ukrainian people, one of the natural foundations of its economic development and social well-being. It is noted that the Water Code, together with measures of organizational, legal, economic and educational influence, will contribute to the formation of water and ecological law and order and ensure the ecological safety of the population in Ukraine, as well as to more effective, scientifically grounded use of water and its protection against pollution, contamination and exhaustion2.

The State Agency of Water Resources of Ukraine (State Agency of Water Resources) is a central executive body which activities are directed and coordinated by the Cabinet of Ministers of Ukraine through the Minister of Ecology and Natural Resources and which implements state policy in the field of water resources utilization system development and hydrotechnical land reclamation, governance, use and reproduction of surface-water supply3. The ineffectiveness of the existing system of public administration in the field of water protection and rational use of water resources is indicated in the Order of the Cabinet of Ministers of Ukraine 1 National Report "Sustainable Development Goals: Ukraine"… 2 Water Code of Ukraine [Electronic resource]: Law dated from 06.06.1995 № 213/95-ВР: – Access mode: http://zakon3.rada.gov.ua/laws/show/213/95-%D0%B2%D1%80 3 Regulation on the State Agency of Water Resources of Ukraine [Electronic resource]: Resolution on Approval of the Regulation on the State Agency for Water Resources of Ukraine dated August 20th, 2014 № 393: – Access mode: http://zakon3.rada.gov.ua/laws-/show/393-2014-%D0%BF

117

"On Approval of the Medium-Term Plan for Priority Actions of the Government by 2020 and the Plan of Priority Actions of the Government for 2017" No.275-p of April 3rd, 20171.

The existing system does not contribute to the achievement of the goals and objectives of sustainable development and needs to be reformed by moving from the administrative-territorial model of governance to the basin one, where the unit of governance serves as a stream basin but not its part within the administrative unit (integrated resources utilization system according to the basin principle). The integrated principle will ensure the ecologization of all governance activities and measures implemented in the water use process, the mechanism introduction for economic incentives and economic entities environmental activities, effective planning of the water resources state and human pressure reduction over them, accumulation of efforts to prevent and overcome catastrophes associated with water.

The strategy of institutional changes in the field of water use ought to be based on a sufficiently substantiated conceptual framework. It has to be the principle of complementarity and ecosystem approach, which allows considering the water object, its water intake, airspace over it as an integral whole, and the planning, research and rational use of water resources, taking into account the possibility of maintaining a stable state of not only these resources, but also the environment in its entirety. The principle of institutions complementarity means that they complement each other and the desired economic effect is achieved only on the basis of interconnected institutional changes.

At the same time, the ecosystem approach allows combining into a single one the land use and rational consumption of water resources; promotes new developments and approaches engaging all stakeholders; pays special attention to activities aimed at improving the living conditions and quality of the environment. The activities of the control unit must be carried out in conjunction with the general formation of the water resources utilization system, which governance functions are assigned to the basin and territorial structural divisions of the competent public authority. These functions include the accounting, analysis, forecasting the 1 On approval of the medium-term plan of the Government's priority actions by 2020 and the plan of the Government's priority actions for 2017 [Electronic resource]: Order of the Cabinet of Ministers of Ukraine; Plan from 04/03/2017 № 275-р: – Access mode: http://zakon2.rada.gov.ua/laws/show/275-2017-%D1%80

118

development and operation of individual water resources utilization systems and water objects and the industry as a whole1.

Over the past 25 years, the population and production volumes in Ukraine have significantly decreased, which led to a significant reduction in water consumption (from 30 km3 in 1990 to <9.7 km3 in 2015) and sewage discharges by various sectors of the economy (from 18 km3 in the 1990s to 5.3 km3 in 2015). However, there is no corresponding improvement in the ecological status of water resources and access to safe drinking water; on the contrary, there are negative trends of water shortage due to pollution and depletion of water resources, degradation of water ecosystems and the impact of climate change. One of the key reasons for the current situation is the inefficient system of sectoral, disintegrated water resources utilization system that does not meet the existing and emerging adaptation challenges to inevitable and irresistible threats in the water sector.

The existing water resources governance has mainly administrative and territorial orientation and, despite the establishment of basin administrations, is carried out at the level of administrative units: regions, districts or interregional or inter-district interaction of the water governance complex components, without taking into account the main natural factors of the formation and interconnection of water (surface and underground) resources within the stream basin, i.e. the water-collecting area and the need for transition to governance, including planning, at the level of the stream basin2.

The combination of central executive authorities and economic entities functions in the existing organizational structure, parallel to the existence of two organizational structures (basin and administrative-territorial), increases governance inefficiency, functions duplication and improper performance, dispersal of limited resources (personnel, financial, material and technical, etc.), untimely and inadequate response to the complications with previous and the emergence of new governance issues (water distribution, climate change, military conflict)3.

The institutional structure and governance system within stream

1 Conceptual bases of integrated reform of the water resources utilization system governance of sectoral structure in Ukraine… 2 Re-thinking of water security for Ukraine… 3 Conceptual bases of integrated reform of the water resources utilization system governance of sectoral structure in Ukraine…

119

basins require further appropriate and proper organizational and institutional reform on the basin principle and the implementation of the European model of governance and best international practices. The need to reform the governance structure of the water supply complex has additional reasons: the need to take into account the interests of all parties, including the end water consumers; deterioration of the surface and groundwater quality; water ecosystems progressive degradation; progressive climate change; the existing water resources governance and land reclamation system imperfection; the need for the water resources utilization system governance implementation according to the basin principle grounded on the best European norms and practices; the aggravation of the water supply issue with qualitative water in the required quantity to the population, especially during periods of shallow water1.

The reason for the outdated orientation of the environmental impact assessment based only on the criteria which is grounded on the concentrations, but not on the integrated environmental impact, is that Ukrainian ecological and water policy, according to its habit, deals only with the post-factum response to anthropogenic and natural changes in the state of water resources, giving the hope that it will eventually turn back to normal. Although in modern conditions, especially in conditions of relatively slow climate change, transition from reactive to proactive water resources governance is required. A proactive approach to changes, especially to those that are incapable to be copped with, should also include adaptation: forecasting, modelling change, warning and preparedness to them, and ought to be based on risk analysis that take into account both the threat from the existing water resources condition, as well as the predicted effects of this threat2.

The proposed approach involves determining the area of the stream basin district within the established limits, but not a separate part within the administrative territorial unit. Significant steps towards the transition to integrated water resources utilization system governance have already been taken; legislative amendments to the Water Code have been made. Recent changes include concepts such as the stream basin governance plan, the basin council, the water balance, the ecological status of the

1 Ibid. 2 Re-thinking of water security for Ukraine…

120

surface water body (excellent, good, satisfactory, bad or very bad), environmental impact assessment (adopted by the law); it has been determined that the hydrographic unit is the area of the stream basin.

It is advisable to consider the National and Global Tasks implementation related to Water Purpose # 6 in the area of drinking water supply (Table 1.)

Table 1 Tasks and Indicators of the CDGs

Tasks / Goals Indicators National Task 6.1

Ensure availability of quality services for the safe drinking water supply, construction and reconstruction of centralized drinking water supply systems with the use of the latest technologies and equipment

Indicator 6.1.1 share of rural population with access to safe drinking water,% Indicator 6.1.2 share of rural population with access to economically accessible drinking water of guaranteed quality,% Indicator 6.1.3 share of urban population with access to safe drinking water,% Indicator 6.1.4 share of urban population with access to economically accessible drinking water of guaranteed quality,% Indicator 6.1.5 share of rural population with access to centralized water supply,% Indicator 6.1.6 share of urban population with access to centralized water supply,%

Global Goal 6.1 Provide universal and equal access to safe and inexpensive drinking water for all population by 2030

[6.1.1.] share of population using drinking water services provided on the basis of "safe governance" (proportion of population using safe drinking water services)1

In order to assess the compliance of national indicators with respect

to the global indicator, the importance of the global indicator will be proved. The elements of "safe governance" are: accessibility, taking into account the location of the water supply source and the time it takes to get water; availability, estimated supply continuity and quantity required to meet drinking, hygienic and household needs; quality, which means water must be free from pollution2.

Therefore, indicators 6.1.1 and 6.1.3 relate to access to safe drinking water (partially affordability and quality), indicators 6.1.2 and 6.1.4 refer 1 SDG Indicators Global Database. – [Electronic resource]: [site] // United Nations Statistics Division. – Access mode: https://unstats.un.org/sdgs/indicators/database/ 2 Safely managed drinking water – Thematic report on drinking water 2017. Geneva, Switzerland: World Health Organization; 2017. Licence: CC BY-NC-SA 3.0 IGO. (с. 26, 33, 38)

121

to economically available drinking water of assured quality (quality), indicators 6.1.5 and 6.1.6 concern the provision of centralized water supply (availability but not always quality and availability). If to consider the indicator of centralized water supply more closely in terms of availability and quality, one can notice that the standards of drinking water quality for sanitary-chemical and bacteriological indicators in recent years do not correspond to 18.4% and 6.4% respectively, and continuous supply of water provided less than 95%1. Consequently, in the context of reaching global goals, the value of the national indicator for centralized water supply ought to be reduced by an indicator of inconsistency with sanitary-chemical, bacteriological indicators and an indicator of the failure to ensure uninterrupted water supply.

Another indicator that needs additional discussion and is included into national indicator system is the water economic availability. The economic affordability means "affordable", which is interpreted as inexpensive. The UN Development Program presupposes that water costs must not exceed three percent of household income2. The foregoing indicates that the monitoring and evaluation system should be carefully reviewed.

Taking into account the global objective 6.1 "To ensure universal and equal access to safe and inexpensive drinking water for all population by 2030" and national indicators 6.1.1-6.1.6, one can notice that the issue of providing high-quality drinking water to the population living in rural areas is even more problematic. As one of the tools for implementing state and regional policy, it is necessary to consider the role and place of state and regional programs as for their impact on rural drinking water supply.

One of the options for resolving the quality drinking water access issue by the population is to ensure an adequate level of the national program funding "Drinking Water of Ukraine" for the period of 2011-2020. The state customer of the Drinking Water of Ukraine program is the 1 The National Report on the Quality of Drinking Water and the State of Drinking Water Supply in Ukraine in 2016. – [Electronic resource]: [site] // The Ministry of Regional Development. – Access mode: http://www.minregion.gov.ua/napryamki-diyalnosti/-zhkh/teplo-vodopostachannya-ta-vodovidvedennya/natsionalna-dopovid/proekt-natsionalnoyi-dopovidi-pro-yakist-pitnoyi-vodi-ta-stan-pitnogo-vodopostachannya-v-ukrayini-u-2016-rotsi/ 2 Human right to water/ What is...? [Electronic resource]: Water for Life Decade/United Nations: – Access mode: http://www.un.org/waterforlifedecade/human_right_-to_water.shtml

122

Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine.

In Ukraine, there is no unified central executive body, which jurisdiction would be regulation, development, financing of rural drinking water supply. In addition to the Ministry of Regional Development, there are state agencies of the Ministry of Agrarian Policy and the Ministry of Environmental Protection of Ukraine (Table 2), which are state-commissioned programs that have an impact on rural water supply.

Table 2 State programs that have an impact on rural water supply

№ Central bodies of executive power (CBEP)

The name of the program

1 The Ministry of Regional Development

“Drinking Water of Ukraine” for the period of 2011-2020

2 The National Water Committee

National target program for the development of water resources utilization system governance and ecologi-cal improvement of the Dnipro river basin until 2021

3 The Ministry of Agrarian Policy

State target program of Ukrainian village development for the period till 2015

The State Target Program for the Ukrainian village development for

the period till 2015 presupposed the activity “Reforming and Ensuring the Development of the Communal Services in Rural Areas” under the control of Ministry of Agrarian Policy. The above-mentioned measure of the state target program corresponds to the budget program "Reform and development of communal services in rural areas"1. In order to determine the mechanism for using the state budget funds provided under this program, the Resolution of the Cabinet of Ministers of Ukraine dated May 6th, 2005 No. 325 approved the Procedure for using the state budget funds for the reform and development of communal services in rural areas.

If the water supply issue in previous programs is only shown as one of the tasks, then the national target program "Drinking Water of Ukraine" for 2011-2020 aims to ensure the citizens' rights guaranteed by the Constitution of Ukraine to an adequate standard of living and environmental safety by providing drinking water in necessary volumes and in accordance with the established standards2. Moreover, 1 Safely managed drinking water – Thematic report on drinking water 2017… 2 On the National Target Program "Drinking Water of Ukraine" for 2011-2020 [Electronic resource]: Law of Ukraine; Program, Passport, Events from 03.03.2005 № 2455-IV: – Access mode: http://zakon5.rada.gov.ua/laws/show/2455-15

123

improvement of the drinking water quality is identified as one of the main directions of the state policy on national security in Ukraine in the environmental sphere.

During 2011-2017, the financing of the Program from the State Budget was not carried out in full. In 2012-2018 out of the financing sum provided by the Program in the amount of 2,142,100 thousand UAH for its implementation, the sum of 580,000 UAH was approved from the State Budget, which comprised 27%. In addition, if comparing the total amount of funds provided by the Program for 2012-2017 (1,817,000 thousand UAH) with actual receipts (UAH 200,000 thousand) and expenditures for the Program purposes (102682,3 thousand UAH), then the share of income and the spending of funds to the projected volume constitute 11% and 5.9% respectively1. The analysis proves that there are significant problems with the activities funding envisaged by the program, in particular, it is stated in the Accounts Chamber's report on the audit results of the tasks and activities implementation envisaged by the Program. The audit findings give grounds for arguing that there are significant risks of non-implementation of the Program, which are not only due to lack of funding. In particular, the imperfection of normative and legal and organizational support for the Program tasks and activities implementation is emphasized. The Ministry of Regional Development does not carry out an analysis and comprehensive assessment of the results of the Program implementation, the program responsible person has not been appointed, the Interdepartmental Commission and regional commissions have not been functioning, and the Ministry of Regional Development has not reported to the Ministry of Finance on the budgetary funds usage. Normatively defined procedure of interaction and coordination of central and local executive authorities work, local authorities, enterprises, institutions and organizations for the Program implementation has not been applied2.

One of the financing sources of the state regional policy on water resources governance is the international organizations funds, i.e.

1 Report on the audit results of the tasks and measures implementation envisaged by the National Target Program "Drinking Water of Ukraine" for 2011-2020 [Electronic resource]: Accounting Chamber of Ukraine: – Access mode: http://www.ac-rada.gov.ua/doccatalog/document/16748332/zvit_2-1.pdf?subportal=main 2 Ibid.

124

international technical assistance (ITA)1. The ITA creates opportunities for partnership between the government and citizens, which provides the foundation for a healthy, effective, democratic society. The projects of the ITA, carried out in the sectors of regional development, social infrastructure and services, the environment, are given in Table 32.

Table 3 List of the existing ITA projects

Project Title Total Cost Duration Beneficiary PULSE 8,200,000 USD 14.12.2015

13.12.2020 The Ukrainian Cities Association

DOBRE 50,000,000 USD

08.06.2016 07.06.2021

The Ministry of Regional Development, Ministry of Economic Development

Partnership for urban development

19,489,340 CAD

27.03.2015 30.06.2021

The Ministry of Regional Development, Ministry of Economic Development

Ukrainian Social Investment Fund Phase 1 and 2

14,000,000 EUR

01.12.2015 30.11.2018

The Ministry of Social Policy

Support for the decentralization reform in Ukraine

6,000,000 EUR 01.10.2015 30.09.2018

The Ministry of Regional Development

Integrated development of cities in Ukraine

5,850,000 EUR 03.12.2015 31.12.2018

The Ministry of Regional Development

Support for nature reserves in Ukraine

14,000,000 EUR

01.05.2016 30.04.2022

The Ministry of Environmental Protection

Support for Decentralization in Ukraine (DESPRO)

23,285,758 CHF

01.12.2006 30.06.2020

The Ministry of Regional Development

Support for decentralization in Ukraine

38,750,000 SEK

08.09.2014 31.12.2018

The Ministry of Regional Development

U-LEAD with Europe 40,102,600 SEK

01.10.2016 31.12.2017

The Ministry of Regional Development

Development of working documentation for the modernization of Bortnica wastewater treatment plant

1,619,327,160 JPY

01.11.2015 28.12.2017

The Kyiv City State Administration

1 On Creation of a Unified System for the Involvement, Use and Monitoring of International Technical Assistance. [Electronic resource]: Resolution of the Cabinet of Ministers of Ukraine; Order of 15.02.2002 № 153: – Access mode: http://zakon2.rada.gov.-ua/laws/show/153-2002-%D0%BF 2 The Essence and forms of international technical assistance [Electronic resource]: Network of experts in the field of development and governance of European integration projects: – Access mode: http://www.eufunds.in.ua/istoriya-tehnichnoji-dopomohy/sutnist-ta-formy-mizhnarodnoji-tehnichnoji-dopomohy

125

Through the projects instrumentality, regional and local initiatives are

supported for the effective regions internal potential use in order to create and maintain a healthy living environment, improve the people’s quality of life, identify problematic areas in the regions and implement state measures to resolve issues, create an effective environmental protection system by taking into account ecological component in regional development strategies, assessment, alignment and reduction of technogenic and ecological impact on the environment in the regions.

Findings and recommendations for further research. Thus, it can be concluded that the system of public administration in the field of water protection and rational use of water resources in Ukraine needs further reformation. In Ukraine, issues with ensuring access of the population to safe drinking water, ineffectiveness of the governance system in the field of water protection and reproduction, rational use of water resources and development of water governance and land reclamation are intensifying.

Furthermore, the analysis of global and national indicators of sustainable development in the field of water supply and water use revealed issues in the system of their monitoring and evaluation, which may lead to inaccurate and false information when making important governance decisions in this area.

An assessment of the existing state and regional targeted programs implementation has enabled the effective directions formation for the integrated approaches realization in terms of water resources utilization system governance decisions in Ukraine:

organizational structure reform, streamlining and clear distribution of activity areas, main functions and competences between different levels and structures of the water resources governance decision system;

openness and involvement of all major water users and stakeholders in the stream basin water governance: CEBs and local authorities and local self-government bodies, public organizations;

active use of international expert advice in the medium-term programs / strategies development for the water supply system improvement (in some cases including drainage) at the regional and local levels.

126

2.4. SOCIO-ECONOMIC INSTRUMENTS FOR SUSTAINABLE DEVELOPMENT OF TOURISM1

A large number of the “sustainable development” concept

interpretations, which are proposed by researchers from around the world, suggests that at this stage the process of searching for a clear definition of this term is underway. The term is extremely popular not only in science, but also in the business environment, as well as general public members.

There is a trend in which each “user” of the term “sustainable development” seeks to bring its content into it, to delineate the scope of its application, tying the concept exclusively to the sphere of its own interests. Natural scientists emphasize the natural and humanitarian component of sustainable development, including the message it contains about preserving the environment. Representatives of the business community and academics, economists, usually point to the primacy of the economic component – competition freedom, the sustainable technologies introduction in production and personnel management. And more than all others, they pay attention to the need to respect human rights, as the essence of the "sustainable development" concept. An important factor is also the fact that the sustainable development concepts, as a rule, describe the ideal state to which humanity aspires. Sustainable development, like any ideal concept, has no analogues in the real world and this creates a real basis for a variety of interpretations.

The sustainable development concept is universal. Due to this, appearing among many, it does not belong to any scientific discipline, within the framework of which it could be clearly defined. But the main reason for the wide range of opinions on the sustainable development subject is the lack of clear and generally accepted quantitative and qualitative characteristics. There are no indicators to determine the degree of our society particular part sustainability. At present, an attempt is being

1 The authors of subsection: Stoyka Andriy, Doctor of Public Administration, Donetsk State University of Management, Mariupol, Ukraine; Lavreshov Andriy, PhD of Public Administration, Honored Economist of Ukraine, Donetsk State University of Management, Mariupol, Ukraine; Horiunova Kateryna, Senior Lecturer, Donetsk State University of Management, Mariupol, Ukraine.

127

made to single out the criteria and, using the example of various countries, to assess the degree of their progress along the path of sustainable development. The concept of "sustainable development" was given more than one hundred definitions in the time elapsed since the concept formation. At the same time, a single universally accepted definition of this concept has not yet been developed.

The question of the main factors essence and principles of the tourism industry sustainable development is the scientific research subject of V. Gerasimenko, O. Dobrovolskaya, G. Zayachkovskaya, G. Kazach-kovskaya, N. Sviridova, T. Tkachenko and other theorists, as well as practitioners of the tourism sphere. The tourism industry sustainable development problems are becoming increasingly relevant in accordance with the dynamic conditions of the present.

For the first time in an international document, sustainable development is mentioned in the first edition of the World Conservation Strategy (WCS), published in 1980. One of the main WCS tasks was designated: bringing to high circles of the public the idea that nature conservation is one of the integral elements of the social and economic development balanced (sustainable) process1.

“Sustainable development means the totality of a single environment, economic efficiency and the nations well-being”. This is how the term is defined by the International Institute for Sustainable Development (Winnipeg, Canada), founded in 1990.

In 1992, the Council of the Earth (San José, Costa Rica), created to implement the decisions of the UN Conference, immediately after it was held in Rio de Janeiro, gave the following definition: “Sustainability is a simple concept: living under justice our ecological capabilities”2.

There is another definition: “Sustainable development is an emerging doctrine stating that economic growth and development must take place within the strict framework established by the natural needs of the environment in the broadest sense, in the process of human interaction and the results of its activity, the biosphere and the laws of nature that govern it ... According to this doctrine, environmental protection and

1 World Conservation Strategy https://portals.iucn.org/library/sites/library/files-/documents/WCS-004.pdf 2United Nations Conference on Environment and Development (UNCED) https://uia.org/s/or/en/1100022514

128

economic development are complementary, and in no case antagonistic processes.1”

Thus, one can agree with the definition of T. Tkachenko that sustainable (harmonious, balanced) development is a development that provides a certain type of equilibrium, that is, the balance between its socio-economic and natural components.2

In our opinion, the sustainable tourism development essence is one of the main principles proposed by the World Tourism Organization in the Global Ethics Code of Tourism of 1999: (Tourism is a factor for sustainable development).3

It is evident that the same subject of study – sustainable development – has many definitions, in which the very true purpose of research is sometimes lost.

Sustainable development is achieved through such management and use of resources, where the rate of resources consumption does not exceed their reproduction speed, as well as the transition from slowly renewable resources to rapidly renewable ones.

Sustainable development means the harmonious interaction between the biosphere, on the one hand, and humanity or large regions (group of countries, the world) – on the other.

The interrelation and the conditionality of processes occurring in the biosphere, including, first of all, deterioration of the habitat (including noticeable climate change), were expressed in the aggravation of economic and social problems. With the advent of human development in the stage of globalization, which became the result of deepening the economic and other activities internationalization process, the pressure of the latter on the world community has increased significantly. That is why, the task of finding the ways of humanity's emergence from the situation arose for the scientists of the whole world is actual.

The main direction in realization of the above-mentioned task was the formation of the Sustainable Development concept and its practical implementation in life. The concepts of Sustainability and Sustainable Society began to be used in all spheres of human activity. At the same time, the practice of new approaches suggests that not only the search for

1 William D. Ruckelshaus. Toward a Sustainable World. Scientific American, 1989. 2 Ткаченко Т.І. Сталий розвиток туризму: теорія, методологія, реалії бізнесу : монографія. – Вид. 2-ге, [перероб. та доп.]. К. Вид-во КНТЕУ, 2009. 463 с. 3 Глобальный этический кодекс туризма. URL: http://tourlib.net/wto/kodeks.pdf

129

solutions to socioeconomic and other problems facing the world community, but also the new methods of their formulation, introduction into scientific circulation and the economic development practice is coming to the fore.

In developing the problems of sustainable development, scientists often refer to the words of F. Engels: “... At each step, the facts remind us that we do not override nature as the conqueror dominates the strange people, we do not dominate it as someone – either outside of nature – that, on the contrary, we belong to our flesh, blood and brain, and that we are within it, that all our domination over it is that, in contrast to all other beings, we are able to know its laws and correctly their apply”1.

Any negative or positive changes that arise in the action of natural and social laws affect both human society and the environment. Failures in the natural laws work can cause the natural environment destruction.

Sustainability in the development system is achieved through the equilibrium interaction of the economic, social and environmental subsystems (Fig. 2). The coherent and balanced development of these subsystems underlying a viable system. The balanced development of the economic and social subsystems provides a fair distribution and consumption of the material goods received. A balanced interaction of social and environmental components is a habitable and vital activity acceptable to society.

Fig. 2. Sustainable development subsystems interaction

1 Энгельс Ф., Маркс К. Диалектика природы URL: https://www.marxists.org-/russkij/marx/cw/t20.pdf

Sustainable state development

Sustainable economic

growth

Social and political stability of society

Ecological safety, resources preservation for future generations

130

Possible distortions in the subsystems development may be the cause of crises and disasters, both at the national and global level. In order to ensure sustainable development, it is necessary to determine priorities in the interaction of components in a timely manner. Thus, system stability provides an advantage given in economic development to the goals of maintaining the viability of the environment and justice in the social issues solution. And, on the contrary, the priority given to economic goals leads to instability.

The general idea of the sustainable development concept is the harmonious interaction of society, human and nature. On this basis, the following principles of sustainable development can be singled out:

every person has the right to a healthy and resultative life in harmony with nature, living in an ecology friendly environment;

socio-economic development is aimed at improving the people`s life quality;

satisfy the basic life needs of future generations along with the needs of present generations, provided that the natural environment is preserved;

preserving the environment is an integral part of the development process and should not be considered in isolation from it. An important goal is to first fix, and then minimize anthropogenic impact on the biosphere;

the limits of the planet ecosystems life-sustaining ability are not exceeded, measures are taken to preserve and sustain the biosphere, and the possibilities of its subsequent natural evolution;

environmental safety and the stability of development receive a higher priority in progress than indicators of economic success and growth;

the natural resources development is based on the sustainable development principles: renewable resources are used moderately, non-renewable resources are used at minimum volumes, secondary resources are expanded, waste is utilized, neutralized, buried whenever possible, space resources and space resources are being developed, with the development of appropriate technologies for these purposes;

Promotes and implements an optimal demographic strategy, in which the population is brought in line with the fundamental laws of nature and the biosphere stability ensuring possibilities;

131

the “polluter pays” principle applies; poverty is eradicated, inequality in the levels of people's lives is

smoothed out, the consumption pattern of rich people is adjusted to a sustainable lifestyle;

the forms of violence against human, first of all, the war, terror and genocide, are gradually reduced to zero;

all forms of biodiversity and “socio-diversity” are preserved and supported, that is, this term unites indigenous people, ethnoses, nations, etc., their culture, traditions and everyday life;

dense international cooperation is being held to protect and restore the integrity of the global system and to restore the ecosystems that have been affected previously. State laws and international agreements aimed at protecting the natural environment and moving to a sustainable development model are being adopted;

environmental information is in the public domain, countries use unified indicators in sustainable development progress. For this purpose, global databases, national communication systems and other means aimed at solving global problems and the formation of a post-industrial information society are being created;

the consciousness and world outlook of a person is oriented towards the ecology. The focus in shaping the interests of human is shifted to intellectual and spiritual values.

Summing up the foregoing, it can be assert that sustainable development is a concept that equally covers all three of these spheres – economic, sociocultural, and ecological.

Sustainable development of tourism means long-term development on the basis of social, economic, ecological and cultural goals harmonization for present and future generations. With sustainable development, the interests of all parties involved in the tourist activity are taken into account on the basis of the tourist resources rational use and a comprehensive partnership aimed at restoring the physical, spiritual and intellectual powers of the person.

UNWTO defines sustainable tourism as “tourism that meets the needs of existing tourists and tourist communities while protecting and increasing the ability to function in the future”1.

1 UNWTO Annual Report 2017. URL: https://www.e-unwto.org/doi/pdf/10.18111-/9789284419807

132

Tourism uses a fairly wide range of resources, including environmental resources. With the development of tourism, both the volume of consumed resources and discarded waste is increasing. Territories used to create tourist infrastructure are increasing.

An advantageous method of infrastructure development is the one that involves inappropriate territories, reclaimed abandoned industrial or depleted agricultural land. The unfavorable method is the one for which the forests develop under the development of the infrastructure, the meadows and arable land are used, the coastline is changing.

Without proper planning, administration and control, tourism development can lead to socio-economic, environmental problems of varying degrees of complexity.

The modern stage of tourism development is characterized by significant monopolization. Services and profits are concentrated in multinational corporations. Most of the tourist infrastructure belongs to foreign capital. Local residents are the main labor source. However, often local people take a linear position, foreign specialists with a long working experience on corporations international standards are invited to lead positions. In these issues, sustainable development needs a fair balance.

Developing countries have the opportunity to develop tourism successfully, since they are less burdened with industrial production and better preserve their natural environment than developed countries, which have achieved leading positions at the expense of their ecology, of which, in turn, are the main flows of tourists. Thus, developing countries receive an indirect benefit from the industrial production of developed tourists when receiving income from tourists from these countries. It should be noted that developing countries hosting tourists from developed countries also receive a number of problems, usually in the socio-cultural sphere. In host countries, projects that take into account the cultural and other characteristics of the local population, the cultural heritage of the nation should be actively supported. Tourism revenues should be directed to the preservation and maintenance of historical and cultural monuments, customs and traditions of the local population.

For most tourists, when choosing a recreation place, the high priority is given to the territory ecological well-being. At the same time, the standard is the environmental norms and practices adopted in those or

133

other countries which, on arrival, may vary with the accepted standards at the place of rest.

It is necessary to popularize ideas of careful attitude to culture and nature at a place of rest among tourists. Information provided to tourists must include conduct codes, information about customs, taking into account the mentality features, etc., approved at the host state governmental level. It should be noted, that this practice has been increasingly observed recently. Important information about the nature, ecology, culture and everyday life of various parts of the world is located in information directories, so that, based on these data, including tourists, they could make a better idea of the possible options for recreation. The success of environmental projects depends largely on the host government initiatives, as well as companies of all levels and formats involved in the organization and tourist services provision.

The main benefits of tourism activities should be received by local people and the local economy. Available resources should be used carefully and rationally, taking into account the territory specifics. The country's government should play a leading role in the tourism development, both locally and at the state and international levels, acting as a regulator, through laws, taxes, etc. The complex situations and problems faced by tourists, local residents, authorities, in the tourism development, must be addressed in a comprehensive manner. This, in turn, implies the sustainable development transition. In case we use the sustainable development principles, tourism can not only overcome the difficulties, but also act as a locomotive, which will bring other industries on the path to sustainable development.

Strategic sustainability is important for the diversified and harmonious development of the region. It is necessary to ensure the possibility of applying socio-economic tools for sustainable development under various external and internal economic, social and geopolitical conditions. The most important types of economic activity on which the diversification of the region is being built are those that give maximum synergy effect and stimulate the development of the largest number of related industries.

According to UNWTO, tourism development activates the economy branches, creating new jobs, and significantly increasing the total contribution to GDP of the country. Also, the tourist multiplier is

134

considered to be a incomes increasing coefficient in the region`s economy and social sphere, depending on the tourists coming expenses to this area1.

The sustainable tourism development multiplicative effect growth is ensured by the use of a tools set, which provide: an territory`s attractive tourist image; effective marketing strategy; availability of highly attractive, accessible and environmentally friendly tourist resources; developed tourist infrastructure; reasonable pricing policy; high level of security in tourist destinations; effective tourism support in legislative and executive bodies at all levels; the presence of highly skilled frames, etc.

Socio-economic mechanisms – a measures system aimed at transformation and development of social and economic well-being.

According to world experience, tourism sustainable development tools were divided into 3 groups (type): economic, social and environmental (Table 1).

In Ukraine the tourism infrastructure development is carried out mainly in the framework of state targeted development programs.

The Strategies for tourism development and resorts for the period up to 2026 include:

measures set implementation to support the tourism industry development, in particular the creation of an attractive investment climate in the tourism and resorts field;

ensuring an appropriate level of inter-sectoral coordination and interregional cooperation, which will promote the tourism resources rational use and will enable to optimize expenditures from the state and local budgets for the activities implementation in the tourism and resorts field;

combining the efforts of state authorities and local self-government bodies, tourism business representatives, other sectors of the economy and civil society institutions to popularize Ukraine in the world and to form the image of Ukraine as a country attractive to tourism;

national legislation harmonization with the European, adherence to the goals and principles proclaimed by the state development strategic documents.

1 UNWTO World Tourism Barometer (English version). URL: https://www.e-unwto.org/doi/pdf/10.18111/wtobarometereng.2018.16.1.2

135

Table 1 Socio-economic instruments affecting the sustainable development

of tourism

Tool type Tool Tool`s assessing indicators Indicators description

1. Economic

1.1 Public-Private Partnership PPP instruments (clusters, Territorial Recreational Systems (TRS)

The PPPs presence in the region

Displays the tourism organization effectiveness in the region in accordance with the state strategy

1.2 Tourism development program at the regional level

Regional tourism development programs availability; deadlines for their completion; prolongation; amount of funding for the program relative to the regional budget

Displays the interest of regional authorities in the tourism development

1.3 The financial and economic preferences for small, medium and large businesses

Tax incentives and subsidies availability

Characterizes the interest of regional bodies in attracting business for the tourism development in the region

1.4 Investments in tourism

The volume of investment in tourism development program relative to total investment in the region

Describes the business tourism development activity in the region

1.5 Tourist activity marketing

Event calendar, Tourist Information Centers TIC availability, participation in national and international exhibitions

Displays activity promotion and the level of awareness of the region's tourism brand in the tourist market

2. Social

2.1 The availability of tourist services for the region's population

The number placed in accommodation facilities for the year relative to the number of inhabitants of the region

It characterizes the tourist services availability to the population of the region

2.2 Staffing the tourism industry

The presence of educational institutions that train specialists in tourist destinations; the number of educational institutions with respect to the number of tourists visiting the region for the year

It characterizes the conditions for the qualified personnel training in tourism, the hospitality industry and services

136

Continued Table 1

Tool type Tool Tool`s assessing indicators Indicators description

2. Social

2.3 Ensuring the tourists safety and prosperous stay in the territory

Crime level It displays the tourists security presence in the region during their stay

2.4 Tool for providing tourists with accommodation facilities

Number of accommodation facilities relative to the number of inhabitants of the region

It reflects the improvement level and provision of tourist accommodation facilities

2.5 A tool for community involvement in tourism and recreation

Number of employed in hotels and other accommodation facilities and travel agencies to the number of employed in the whole

It reflects the share of tourism and the service sector in total employment

3. Environ-mental

3.1 Definition and regulation of permissible anthropogenic load

The number of tourists per unit area in the region

It characterizes the tourist traffic load

3.2 A tool to ensure the quality of the environment through the creation of a system of specially protected natural areas

The area of specially protected natural areas relative to the area of the region

It characterizes the potential quality of the region's ecological condition

3.3 The Environmental index

Environmental programs formation and implementation in the environmental, industrial and social spheres

It describes the state of the environment

3.4 Industrial and Ecological Index 3.5 Socio-Environmental index

The strategy defines an integrated approach to the formation and

implementation of state policy in the field of tourism and resorts, which involves a combination of the following components:

sectoral (inter-sectoral coordination and systemic development of the tourism sector and resorts components), namely: tourist activity (tour

137

operators, travel agents, excursion service); accommodation services (collective accommodation; individual accommodation); transport (air, rail, road, water: sea and river, urban public); tourist information centers; museums and galleries; theaters, arenas, clubs; congress halls and conference centers; catering establishments; sports arenas; shopping malls, shops, souvenir shops; IT companies; insurance companies; media companies;

territorial (interregional cooperation, achievement of a uniform and balanced development of tourist regions, territories, zones), namely: north, south, east, west, center; area; areas; territorial communities; resorts; tourist areas;

sectoral (creation of a development strategic planning system of tourism types based on their strict classification and identification of priority at the state and regional level), namely: urban tourism; ecological (green); ethnic; rural; cultural-cognitive; eventful; medical, health-improving; gastronomic; religious; mountain, sports, bicycle; adventure and active; scientific and educational; cruise and yacht; shopping and entertaining tourism; other priority tourism1.

However, it is incorrect to assert that these actions are sufficient for the country to enter the international level of tourism development. Ukraine has a significant number of historic cities, whose tourist potential is not used in full. In such cities it is expedient to develop natural and cultural tourist zones, which combine nature and architecture monuments, history and culture, objects providing a full range of services of accommodation, catering, entertainment, information services, etc. These zones will be used locally as tourists, which is uniquely It is important for the social and economic well-being of these cities.

The economic success of projects under the scheme of public-private partnership (PPP) is proved by the modern practice of the world level2. The most developed PPP in the countries of the Anglo-Saxon legal system, which allows the application of this form of cooperation in small and medium-sized projects. Countries where the level of the population 1 The Strategies for tourism development and resorts for the period up to 2026. URL: https://www.kmu.gov.ua/ua/npas/249826501 2 Bebah A. Contribution of Tourism to the Sustainable Development of the Local Community: Case studies of Alanya and Dubrovnik. Bleking Institute of Technology, 2006. 114 p.

138

taxation is relatively low and is endorsed by a personal initiative of citizens and competition, PPP is very popular, since a large number of services, carried out by the business under the supervision of the state. Under the conditions of Ukraine, the PPP tool has already proven its effectiveness for sustainable tourism development in regions that create special economic zones of tourist and recreational type and clusters. This determined the maximum specific gravity of the PPP tool in our research.

It is possible to note the list of factors on which the PPP popularity in the country depends:

the level of the country legislation development and its loyalty to the of the of public-private partnership institution development;

use of interaction forms between the state and business; the level of the population taxation; public opinion. At present, there are a number of problems in implementing PPP in

Ukraine. The main ones are the following: insufficient level of development of the legislative base for

implementation of PPP projects; insufficient transparency in the competitive procedures of access of

market participants to PPP tools; lack of awareness of the benefits and opportunities of PPPs. The creation of the Territorial Recreational Systems (TRS) is

considered as a powerful optimal tool for the territory development with high tourist and recreational potential in combination with a favorable investment climate. To ensure the success of the TRS, effective organizational and economic instruments are needed, together with administrative support. International practice shows that, provided there is a vast territory with an interesting concept and thoughtful positioning, with the state support, the tourist project being implemented can be extremely successful. The optimal scheme for the development of the TRS can be considered the one that begins with the formation of the core. As a core, for example, a mineral water deposit may appear, around which, in consequence, the accompanying tourist-recreational infrastructure begins to form. The region in which the TRS is developing is being developed as a whole. Such projects TRS can serve as a stimulus for the regions socio-economic development.

139

It should be noted that foreign and domestic investors may be guided by various motives when choosing investment objects. Accordingly, investors have various stimulating factors. The priority for a foreign investor may be the task of entering the domestic market, which is not so important for a domestic investor. Also, for a foreign investor the level of tourist infrastructure development is important. Moreover, the guideline in assessing the level of infrastructure development will not be the level of infrastructure development in the country of investment, but in comparison with the level of infrastructure development in one's own country or in other foreign countries. The possibility of duty-free import of goods and services, exemption from taxes and other benefits is more important for the national investor. The presence of a well-developed infrastructure, in turn, is a stimulating factor for domestic investors.

A no less effective type of public-private partnership is the formation of tourist-recreational clusters (TRC). The concept of a tourist-recreational cluster implies a group of geographically neighboring organizations, government bodies, and public organizations that together form and serve tourist flows, using the tourist-recreational potential of the territory for these purposes.

The effectiveness of the TRC is proven by international experience. As an example of countries and regions in whose territory TRC of various scale successfully operate, one can cite the coasts of the Mediterranean and Adriatic seas, the coast of the Caribbean, the UAE, the alpine region with ski clusters, Las Vegas and Hollywood, successfully developing entertainment clusters1.

Distinctive features of the TRC from other forms of organization are: a significant variety of participants; territorially, a cluster can be located both on the territory of one city,

and capture the territory of a country, or even a group of neighboring countries;

cluster efficiency is built largely on the synergistic effect;

1 Bergman M., Charles, D. Innovative Clusters: Drivers of National Innovation Systems / Organization for Economic Cooperation and Development. URL: https://www.nist.gov/sites/default/files/documents/2017/04/28/spi-the-plastics-industry-trade-association-attachment.pdf

140

the internal processes of the dispenser are characterized by flexibility and dynamism;

competing companies are interested in cooperation in order to realize the territory potential, and its competitive advantages, to achieve a synergistic effect, and, consequently, to use the advantages obtained.

The purpose of the TRC is to create a competitive tourist product and maintain its quality at a consistently high level. For the regional economy, TRC can become “points of growth” of the domestic market and a tool for the effective tourism development in destinations.

The goal of creating a TRC will be achieved in case of solving a number of tasks:

the territory cultural, historical and natural potential preservation and revival;

a high-quality tourist product formation and ensuring its effective marketing promotion;

attracting to the tourism sector national and foreign investments in sufficient volume relative to the area of the region in which the project is being implemented;

region`s material and technical base development to a significant level;

PPP tools development in the culture and tourism field; full and high-quality satisfaction of consumer demand for tourist and

recreational services; assisting tourism service providers in improving the competitiveness

of their services; an increase in the tourist flow of tourists will occur due to the

improvement of the quality of the services provided and the effective use of the tourist and recreational potential;

continuous conditions creation for the further development of small and medium-sized businesses in the tourism industry in the region;

products establishing sales manufactured by local manufacturers; an increase in budget revenues due to tax revenues from the

development of tourism; implementation of the tourist and related infrastructure creation. It has been established, that the effective tourism industry

development in Ukraine is possible under the regions organizational and

141

financial support condition from the state through the development and implementation of state programs for tourist recreational activities development. The tourism development at the municipal and intermunicipal level is most efficiently carried out by drawing up and implementing tourism development regional programs and their financing from regional and municipal budgets in combination with investments of small and medium-sized businesses.

The most effective and efficient in the modern tourism industry sustainable development are the public-private partnership tools, implemented through tourist-recreational systems and tourist-recreational clusters.

The study of socio-economic instruments and their regional combinations will create a rating that determines the sustainable tourism development effectiveness. Based on this rating, all regions will be combined into groups from high to low sustainable development levels.

Tourism sustainable development opportunities scenario is a necessary element of the tourism territorial management in the Ukraine`s regions. Options evaluation for sustainable tourism development, based on the study of the spatial interaction of the integrated tourism and recreational potential and the socio-economic tools rating, will make it possible to identify regions aggregates with different scenarios, from extremely favorable to stagnant.

142

SECTION 3

THE SCIENTIFIC, METHODICAL AND EDUCATION SUPPORT FOR PUBLIC

ADMINISTRATION IN CRIATOIN PROCESS OF SUSTAINABLE DEVELOPMENT

CONDITIONS

143

3.1. THE CREATION OF FULL-FLEDGED MANAGEMENT SYSTEMS FOR THE FULL-FLEDGED LIFE-SUSTAINING ACTIVITY

SYSTEM FORMATION IN UKRAINIAN SOCIETY1

The strategic development of modern Ukrainian society, improvement of its welfare and quality of people’s life is impossible without the full-fledged management systems introduction in order to ensure the full-fledged life-sustaining activity in society. The complexity of the life-sustaining activity issue, due to the fact that it is a philosophical and world-view category which, at the level of the highest generalization, expresses the way of Ukrainian society wellbeing in general and each person separately2.

The category of “full-fledged system of society life-sustaining activity” refers to its higher level and therefore requires the application of the most developed that is a fully-fledged system of social governance which is capable of adequately effectively influencing its formation and strategic development.

The urgency of the issue increases in the current conditions of world civilization and, first of all, Ukrainian society ambiguous development when in the main governance spheres, i.e. political, social, economic, and at its main levels, namely, state, regional and local, the destructive processes unfold, and the management crisis intensifies.

Taking it into consideration, there is an urgent need for theoretical and methodological substantiation of the ”full-fledged system of society life-sustaining activity” and “full-fledged management system” categories, which together form a management system, where the subject is a “full-fledged management system” and the object is “full-fledged system of society life-sustaining activity”.

Relevance, scale and complexity of the issue solution cause the research to be carried out in four stages:

The first stage is a theoretical generalization of the "full value" and "full-fledged system" categories and their derivatives. 1 The authors of subsection: Komar Yuriy, Tanchyk Olena, Donetsk State University of Management, Mariupol, Ukraine; Dubas Rostyslav, University "Ukraine", Kyiv, Ukraine. 2 Synergetic Principles of Public Administration in the Conditions of Reform: Monograph. / S. Seryogin, I. Pysmenniy, I. Khozhilot and others; Under general editorship of S. Seryogin – D.: DRIU NADU, 2007. – 194 p.

144

The second stage is the obstruction, the choice of modern scientific approaches and methods for resolving the investigated issue.

The third stage is the study of the system and subsystems completeness of the "management" category on the basis of the modern scientific instruments usage of the attributive method and the method of structural-linguistic quantification.

The fourth stage is a synthesis of the results of the study and the presentation of conclusions on the issue under investigation.

The first stage is a theoretical generalization of the "full value" and "full-fledged system" categories and their derivatives. Given that the category of "full value" is a part of the categories "full-fledged management system" and " full-fledged system of society life-sustaining activity", it is the central element of this study and requires an in-depth analysis.

In order to determine the nature and features of the "high value" category it is necessary to analyze its structure in terms of two components: "full" and "value".

The category "full" is the first part of the complex words, which means: the full extent, the full composition, the maximum quantity required, the exhaustive sufficiency, mentioned in the second part of the word, in the particular case the word "value"1.

Category "value" is the property of a particular subject, phenomenon, system for meeting the needs, desires, interests of the social subject (an individual, a group of people, a society) for which the subject acts, spends time, money, health, etc., devotes life2.

In general, the "full value" category means full value and full compliance with existing requirements, completeness and self-sufficiency of anything (object, subject, process, system, model, etc.) in any system (technical, biological, social) or in any sphere of social management (production, science, art, etc.)3. It is evidenced by a number of full value

1 Full / T. Efremova The new dictionary of the Russian language. Explanatory and word-building dictionary [Electronic resource]. – Access mode: http://www.classes.ru/all-russian/russian-dictionary-Efremova-term-77188.htmhttp 2 Value / T. Efremova The new dictionary of the Russian language. Explanatory and word-building dictionary. [Electronic resource]. – Access mode: http://www.classes.ru/all-russian/russian-dictionary-Efremova-term-117894.htm 3 Full-fledged / T. Efremova The new dictionary of the Russian language. Explanatory and word-building dictionary. [Electronic resource]. – Access mode: http://www.classes.ru-/all-russian/russian-dictionary-Efremova-term-77181.htm

145

definitions in various spheres of vital activity in Ukrainian society: full-fledged life is actions of a living-being that does not contradict the purpose of the existence and manifests itself in harmonious coexistence with the surrounding world; full-fledged human health is a state of complete physical, financial, mental, social and professional well-being of a person; full-fledged meals is the minimum nutrient required for maintaining the health of the body; a full family is a complete family, in which the father and mother and children are all present; full-fledged current coin (German Kurant, Kurantmünze), the name of the mandatory coins required for acceptance in any quantity, the cost of which corresponds to a state-guaranteed denomination; a full-fledged healthy sleep is a sleep with sufficient duration, depth with a well-established time to sleep and awakening; full demand is demand for goods, which fully provides sales of all their release; full-fledged football player is a football team player who acts as a goalkeeper, defender, midfielder and striker at the proper level; full-fledged business is a special type of economic activity, where the main subject is an entrepreneur who manages the production of goods and services rationally, in order to meet the needs of the society and receives business income; full-fledged urban transport system is a system of urban transport, consisting of: tram, trolleybus, bus, taxi, shuttle taxi, metro, funicular, city train, passenger ships, helicopters; full-fledged university professor is a staff member of the university, who has a PhD degree, a professor's degree, trains students at all courses, in particular, gives lectures, conducts practical classes and exams; conducts scientific and pedagogical and educational activities, prepares specialists of higher qualification.

From the above examples of the full-fledged systems definitions of various nature and spheres of human activity, the authors draw three important conclusions: firstly, full-fledged systems cover the main spheres of human life: science, education, leisure, etc., and are components of the fully-fledged system formation of vital activity in Ukrainian society. Secondly, any full system has a comprehensive content and the most possible limits of coexistence with other systems, which allows it to fit into reality in a harmonious way. Thirdly, full-fledged systems are an effective criterion for assessing existing and emerging new social systems for the full-fledged life of Ukrainian society formation.

146

The category "full system" is the first component of a complete system that allows quantifying its value, which is relevant for social systems, which, due to their nature, are difficult to quantify.

The category of "valuable systems" is the second component that allows a social system qualitative assessment as for the social actors’ value needs for which they live.

As a result of the natural combination of two highly effective linguistic entities with positive qualities, the "fully-fledged system" and "valuable system" the third higher level formation has been formed which is a "fully-fledged system", which not only receives positive properties of completeness and value, but occupies new unique properties of full value, not inherent in its two components. It allows achieving a synergistic long-term effect, because the total result of the action of a complete system exceeds the results of the isolated actions of its two components’ effects.

Only certain categories of systems take a higher level than attributive full-fledged systems: a reference system is a system that has a certain number of elements that are in relationships and connected with each other, which forms a certain integrity and provides a quantitative dimension of these elements, reproduction and transferring their size to the lower system links and is used as a sample1.

The ideal system is when the system does not exist, but its functions are performed2.

It should be noted that in scientific and special literature, the following terms are used as criteria for the social systems creation and evaluation: "effective system", "perfect system", "optimal system", "large-scale system", "full-scale system", "rational system", etc. However, because of its nature and unique properties, the very category "full-fledged system" has to take a prime position in the system of criteria for different nature social systems creation and evaluation.

Despite the unique properties of high-grade systems, not enough attention is given to their research; their denominations are absent in philosophical literature, in most editions of scientific, reference and

1 T. Efremova The new dictionary of the Russian language. Explanatory and word-building dictionary. [Electronic resource]. – Access mode: http://www.classes.ru/all-russian/russian-dictionary-Efremova-term-77181.htm 2 Ibid.

147

educational-methodical literature, their practical use is also extremely limited.

Within this framework, there is an urgent need for the introduction into the scientific circle the "full-fledged system of social management" category, its theoretical and methodological substantiation and the definition of the main subsystems based on the modern scientific approaches and research methods usage.

Separate theoretical and methodological concepts of the full value of the system and subsystems of the "management" category study, their manifestation in the main spheres and levels of the social life system became the subject of consideration by leading domestic and foreign researchers: V. Alekhin and others, V. Afanasyev, І. Bazhin, V. Belogurov, S. Bira, R. Blake, V. Burega, V. Voronkov, Yu. Komar, V. Knorring, S. Knyazev, E. Korotkov, V. Muhin, S. Povazhniy, Yu. Surnin, A. Fayyol, etc., R. Falmer, J. Forrester, G. Shchokin, S. Yapga and many others.

While paying tribute to the scientific and practical significance of the domestic scientists and foreign researchers’ works, which discuss separate concepts of this issue, in the modern scientific literature on philosophy, cybernetics, management and governance there is a deficit of fundamental scientific and educational works that analyze the researches’ results of the "full-fledged social management" category in two directions: 1. "the full value of the management structure"; 2. "the full value of managerial influence".

The second stage is the obstruction, the choice of modern scientific approaches and methods for solving the investigated matter.

Relevance, scale and complexity of the issue solution cause the research to be based on the use of modern scientific approaches and methods, in particular the attributive scientific method and the method of structural-linguistic quantification.

Attributive scientific approach is a new way of scientific knowledge and practical activity, the mechanism of its implementation is aimed at the attributive (triple) synthesis of the system and the acquisition of fundamentally new knowledge that has an essential character.

Taking it into account, the authors give the category "attribute" in the quantified form using the three quanta "A – three – bute". Quantum "A" means a certain phenomenon, process, system, etc. Quantum "three"

148

displays the number 3. Quantum "bute" means a shortened version of the philosophical category of "being", "beingness", having a more precise English variant "existence" that is the objective reality that exists outside and independently of human consciousness. That is, in this word there is no a certain number of essential features, but only three of its components (A1, A2 and A3) are reflected.

At the base of the attributes quantitative assessment there are the integral triple formations, which, by order, organization and development, are very close to their nature. In accordance with this, the content of the attributive approach is always triple essential systems that form the foundation of the attributive approach. In view of this, the very formulation of the question of any management object is meaningless without a clear understanding of the "attributive system" category which, in its essence, belongs to the highest hierarchical level of government.

The main purpose of the attributive scientific approach is not just in the analysis or the formation of some multi-element systems with arbitrary number of subsystems, but in the systematic consideration of exclusively triple sets (subsystems) and the relationships between them, which the researchers determine precisely as a system in accordance with the tasks.

It is essential that the attribution in the scientific instrumentarium manifests itself in the form of a process that includes three subsystems: the beginning, the middle and the end, which are its attributes. It is reflected in the procedural (vertical) aspect of attributes. The second aspect is characterized by the fact that in the overwhelming majority the management systems content consists of three attributive subsystems. This reflects the structural (horizontal) aspect of attributes1.

In this regard, the attributive scientific instrumentarium belongs to systems of a higher hierarchical level and its use allows achieving the synergistic type effect.

The systematization of the basic methods of scientific knowledge showed that the structurally-linguistic quantification method plays an important theoretical and methodological role in solving the issue of full-fledged management systems creation, in particular the attributive type. It

1 Philosophical Dictionary / Under general editorship of V. Shinkaruk – 2nd issue, revised edition – K.: Ukrainian Soviet Encyclopedia. 1986. – 800 p.

149

is a modern scientific method, the essence of which is to build qualities to quantity features, based on the linguistic analysis of the statement as an indivisible whole to its internal structure analysis, with the help of special indicators, namely, linguistic quantifiers, which carry information about the quantitative characteristics of logical expression1.

The use of the structural-linguistic quantization method allows conducting systematic analysis of various full-fledged management systems and models types, in particular attributive type; providing an objective assessment of their value degree. The researcher, by structuring the corresponding term, can form attributive (triple) linguistic entities that can firstly analyze the structural and functional construction of full-fledged attributive and decimal management systems, in combination with information systems of society life-sustaining activity.

The third stage is the study of the full value of the system and subsystems of the "management" category on the basis of the modern scientific instruments of the attributive method and the method of structural-linguistic quantification use. In general, a “full-fledged system of social management” is the process of subject self-management in the control system of the second entity, so that it fits into the rules adhered to by the second entity ("hierarchically higher") and in such a way that it does not contradict the rules adhered to by the third entity (“the hierarchically higher than the second one”) etc.

It is difficult to overestimate the importance of the "full value" category in relation to social management, because it is a unique management system of the highest level, which has comprehensive content and the most possible limits of coexistence with other management systems, which allows it to fit in harmoniously into reality. Furthermore, its absence means the loss of a strong (full-fledged) management subject, leading any system of social management to a state of chaos or disintegration.

In order to determine the fullness of the "management" category in the first direction: "the full value of the management structure" it is necessary to present it in the management process form, showing its linguistic structure (Fig. 1)

1 Synergetic Principles of Public Administration in the Conditions of Reform: Monograph…

150

Fig. 1. The full value of the "management" category structure In figure 1 it is shown that the content of the category "management"

is a holistic linguistic, structured in a certain way ten-element structure in the form of ten letters. It creates an information impulse that initiates the movement, direction and amount of management information, according to the number of letters and the order of their location in the "management" category.

At the same time, the number of stages and direction of the management process corresponds to the number of letters and the order of their location in the word "management." On this basis it can be concluded that the content of these administrative categories is a ten-element internal structure that ensures the complete passage of the management process in ten stages, starting from the first letter "M" gradually passing the other stages and ending with the final, the tenth letter, "T".

The characteristics of the full-fledged structure of the "management" category are given in Table 1.

The second direction of fulfilment is the full value of management influence of the "management" category.

The justification of the full value of managerial influence is connected with the notion of "hierarchy", that is, the location of the main elements of influence on the managerial ladder in order from the higher to the lower and vice versa.

It should be taken into account that in the Ukrainian language, unlike most Western European languages, there is a category of neuter noun

TT

MM

AA

NN

MM

EE

NN

АА

GG

EE

The

full

valu

e of

the

man

agem

ent s

truc

ture

1

2

3

4

5

6

7

8

9

10

151

words, with the mandatory presence of three elements: masculine, feminine, and neuter, which are located at the appropriate hierarchical levels.

Table 1 Characteristics of the full-fledged structure

of the "management" category

Justification of the full value Definition of the full value The full value of the "management" category structure in social systems is due to the fact that its internal structure consists of ten levels and corresponds to the number of letters in the word "M-1; A-2; N-3; A-4; G-5; E-6; M-7; E-8; N-9; T-10". The control process begins at the first, hierarchical level, i.e. the letter "M" then agrees with the second higher level – the letter "A" ("hierarchically" higher than the level "M"), which in turn fits into the rules of the third level – the letter "N" ("hierarchically" higher than the level of the letter "A") and thus, without controversy, gradually and consistently implements other managerial levels and the purpose of management is achieved at the highest tenth hierarchical level – the letter "T".

The complete structure of the management category is a universal management component with a ten-element internal structure, the qualitative and quantitative indicators of which determine the ten-element (full) cycle of the management process, its sequence, qualitative and quantitative certainty, and in the complex provide a purposeful and organizing management influence for the set goal achievement in the corresponding social system.

As a result of the neuter words absence in the English language the

"management" category is characterised as a two-elemental gradual implementation of managerial influence according to the scheme: "scientific management" is the first stage and "creative management" is the second stage. Such properties of the "management" category allow Western European and American scientists to create hierarchical two-element systems, which are characterized by a gradual long-term managerial influence implementation under the scheme: initially "management process" and "science of management" forming "scientific management".

The second stage also was fulfilled through a gradual long-term combination of "science of management" and "art of management" forming "creative management". It was reflected in the collective monograph of prominent scholars from Western Europe and the United States, "Management is science and art".1

1 Management is science and art / A. Fayol, G. Emerson, F. Taylor, G.Ford. – M.: Republic, 1992. – 352 p.

152

On the whole, the full cycle of the managerial influence implementation and the purpose of the "management" category achievement within the scheme "scientific management" and "creative management" lasted for about 100 years.

It ought to be noted that over the century, the "management" category development has received proper scientific substantiation and wide spread in a lot of countries all over the world, in companies of different ownership forms and subordination, in particular Ukrainian, operating in a competitive market environment. However, due to the absence of hierarchical attributivity (triple), the "management" category does not meet the conditions of the full value of attributive management influence.

The presence of the neuter nouns in the Ukrainian language creates real opportunities for the complete hierarchical management type formation. The neuter refers to the word "management" consisting of three elements: "process of management" – masculine, "science of management" – the feminine and "art of management" – the neuter. The full value of management influence of the "management" category on the Ukrainian language basis is given in Figure 2.

Fig. 2. The full value of managerial influence of the "management" category on the Ukrainian language basis

As it can be seen from Figure 2, the first major component of a full-

fledged management influence is the "management process" which is a

1

2

3

The art of management

The science of management

The process of management

Scie

ntifi

c m

anag

emen

t Cr

eativ

e m

anag

emen

t

One-time influence

One step

153

management detection form, a set of stages, serving as qualitative characteristics of the management functions practical implementation.

The second component of a full-fledged managerial influence is the "science of management" that is a system of knowledge of the most effective management forms which enable them to achieve maximum results at the lowest cost of power and resources.

The third component is the "art of management" which is the ability of managers to creatively implement organizational goals through the managerial science application in the management practice based on personal life experience and intuition.

Based on the abovementioned study, the full-fledged attributive management in the process of science and art forms a unified, organic integrity in the form of a complete, full-fledged attributive management system which has a universal comprehensive flow and is intended for use in the main spheres of Ukrainian society life-sustaining activity.

In the general classification of the main management types (systemic, traditional, situational, dissipative, program-targeted, participative, creative, etc.), it is the full-fledged attributive management due to its unique nature has to occupy higher levels in the hierarchical state-management ladder and be reliable methodological basis of the full-fledged Ukrainian society life-sustaining activity management formation.

However, until recently the scientific substantiation and practical use of full-fledged attribute management is extremely limited in terms of the monographic study on management issues1 and the textbook on personnel management2.

In figure 2, it is also shown that due to the neuter, the "management" category is characterized by the instantaneous one-step implementation of the hierarchical management influence under the scheme of the process – science – the art of management, and through the organic combination of scientific and creative management the management goal can be achieved in one stage. As a result, the "management" category corresponds to the conditions of the full value of attributive management influence. 1 Yu. Komar. Scientific fundamentals of public administration innovative mechanisms for the students of management specialties training: Monograph. / Yu. Komar. – Donetsk: SPD Kupriyanov, 2008. – 358 p. 2 V. Dorofienko, Yu. Komar, N. Sapelnikova Personnel Management: Educational edition in two volumes. / 1 volume. Textbook / Under general editorship of Doctor of Economics, prof. S. Povazhniy. Donetsk, 2010. – 425 p.

154

Characteristics of the full value attributive management influence of the "management" category are given in Table 2.

Table 2 Characteristics of the full value of managerial influence

of the "management" category

Justification of full value Definition of full value The full value of the management influence of the "management" category in social systems is due to the fact that the first, hierarchical level, starts the management process, then it is consistent with the second level – science ("hierarchically higher than the level of the process"), which in turn fits into the rules of the third level which is art ("hierarchically higher than the level of science"). These hierarchical triple subsystems provide the full effect of the "management" category.

The full management influence of the "management" category is an organic combination of the process, science and art of management in social systems, which together provide a conscious, purposeful and organized influence on the appropriate management system development to regulate, improve its structure and activities, preserve integrity and achieve the goal.

The fourth stage is synthesis of research results and presentation of

conclusions on the issue under investigation. According to the study results, it has been established that the "management" category has all the features of full value in the two selected areas: "the full value of the management structure" and "the full value of management influence".

In order to reach innovative development and formation of a fully-fledged Ukrainian society life-sustaining activity system, it is expedient to deepen and expand the fundamental and applied research on the creation and implementation of full-fledged management systems for the main spheres of society's life: ideological, political, social, economic, legal, scientific and technical, etc. In case of its non-fulfillment, there is a risk to loss the full-fledged management subject and, as a consequence, it can lead to a decrease in the full-fledged degree of Ukrainian society life-sustaining activity system.

Thus, the "management" category because of its nature and unique properties has all the full-fledged features and refers to the fundamental full-fledged management systems that makes it naturally fit into reality. As a result, it has to take a paramount position in the equal management system of the full-fledged life of Ukrainian society formation.

155

3.2. THE SELF-MANAGEMENT THEORETICAL AND METHODICAL FOUNDATIONS OF MANAGEMENT MAJOR STUDENTS’

PROFESSIONAL TRAINING1 Management as a universal philosophical category can be manifested

in the basic management systems: natural, biological and social. Moreover, one of the central places in any management system belongs to "self-management" (SMT) subsystem as the most important component of ensuring the system life sustainable activity, its stability and reproductive processes efficiency.

In the social management system, the role of self-management is determined by the real possibilities and the right of a social organization (person, group, and collectivity) independently, under their own responsibility, to solve important life issues and make managerial decisions for the final results achievement.

A large number of publications that have appeared over the last decades indicate that the self-management issue has become of particular importance in the management system of specialists’ professional training, in particular, state-management personnel.

The relevance of solving the self-management issue in the system of students’ vocational training of management major is also evidenced by the significant number of such students and the fact that their training is based on special approaches and training methods.

However, despite the exceptional importance of the "self-management" subsystem as the basis for effective vocational training of students in state-run institutions of higher education, the issue is still not developed enough.

In this regard, the task of state-management and economic science is to reveal the main components of the "self-management" subsystem, to define the main approaches to its interpretation and the role in the management system of this category students’ professional training.

In order to determine the nature and characteristics of such a complex administrative category as self-management, it is necessary to analyze the "self-management" notion structure in terms of its two components: "self" and "management" (Table 1). 1 Author of the chapter is Komar Viktor, Master in Economics and Management of ITOUR Travel Company, Kyiv, Ukraine

156

Table 1 Structure of the "self-management" term definition

Self is the first part of complex words, which means: the direction of action (mention in the second part of the word) on itself; realization of action without assistance or automatically1. automatically1.

Management is the purposeful programmed or random impact of the subject on the object in order to achieve the ultimate goal through processes when there is interaction with them in the mode of a deterministic or optional programme2.

Self-management is a condition when the management subject and object coincide; such nature of the object processes, which is a conditionally-closed system, where there is no direct control over them and the goal-setting is carried out by the object itself in accordance with its properties, which can be programmed in a certain way when it is created3.

In this case, the concept of "self" reflects the obvious fact that, in

contrast to the actual "management" as a whole, its object and subject are seamlessly interconnected. In the social management system, such combination of object and subject means self-management, which appears as a process of person transformation, a labour collective from the object of management activity in its subject. It is a special variant of management organization when each object (individuals or groups of individuals) solves issues within the limits of own capacities, distribution of resources, performed functions, etc.

A number of publications by leading domestic and foreign scientists and educators, such as V. Andreev, G. Arkhangelskiy, K. Andryushchenko, B. Budzan, K. Varlamov, H. Veltchi, O. Gradinov, M. Doronia, L. Zayvertta, K. Karpichov, V. Kolpakov, Yu. Komar, A. Kredisov, T. Limonchelli, N. Lukashevich, V. Musienko-Repsky, V. Parakhin, V. Peresunko, V. Perov, A. Povaghniy, S. Reznik, L. Skibitskaya, A. Hlorenko, O. Shtepa, I. Shukis, G. Yamaletdinova and many other researchers testify to the study relevance of the "self-study learning" subsystem in students’ professional training system, in particular, of management majors.

While paying tribute to the theoretical and practical significance of works that deal with individual aspects of the self-management issues, in

1 Self / S. Ozhegov Dictionary of the Russian language: 70 000 words / Ed. by I. Swedish – 23rd issue, revised and enlarged edition – M.: Rus. Lan., 1990. – 917 p. 2 Wikipedia is a free encyclopaedia: management [Electronic resource]. – Access mode: uk.wikipedia.org/wiki/ 3 Wikipedia is a free encyclopaedia: self-management [Electronic resource]. – Access mode: uk.wikipedia.org/wiki/

157

particular, the professional training of management major students, it should be noted that in the domestic and foreign literature there is no holistic analysis of the issue under consideration that would combine its theoretical, methodological and practical principles1.

Sharing the general opinion of the aforementioned authors, it has to be noted that this issue requires an in-depth study. In this regard, it is expedient to apply the definition of the “self-management study” essence as conscious, purposeful and organizing influence of the first subject (educator) on the second subject (student) through the motivation processes to learning, its planning, organization, control, in order to achieve the ultimate goal.

In the education management system, such a combination of the first and second subject means self-management, which appears as a process of student’s transformation from the second subject of management activity into its sole subject. This is a special variant of managerial influence, when the student independently solves the educational issues within the limits of personal capabilities, resources distribution, performed functions, etc.

Taking into account the abovementioned, "self-study" is the conscious and purposeful use by the student of rational studying methods and everyday practice for the purposeful and organizing management influence on the self-management learning processes: self-motivation, self-planning, self-organization, self-control, in order to achieve the set studying goals at management higher education establishments.

The "self-management" subsystem is an integral part of the professional training management system, where the student simultaneously acts as a management subject and object. Under these conditions, the student him/herself, within the limits of given authority, has to decide on the resources allocation, management functions, and the managerial decisions adoption regarding the management of independent professional training.

This subsystem plays an important role in the student’s professional training management system, because it is the most important part of this system, which ensures its livelihoods, stability and reproductive processes performance. 1 Yu. Komar, O. Povazhnyi, S. Komar. Basics of student training. In 4 books – Volume 1. Self-management training. Study guide. In 2 volumes. Part 1. Annotated abstract of lectures / under general editorship by doctor of Economics, prof. V. Dorofyenko – 3rd edition, enlarged edition. Donetsk: VIK, 2009. – Р.22.

158

Determining the "self-management" subsystem features and its role in the student’s professional management system of management majors, it is advisable to take into account several important aspects:

the first aspect is connected with the fact that the human personality (the student) is the complex social-biological system and the laws of its functioning and self-organization are insufficiently studied.

Studying the human phenomenon, prominent philosophers and scientists of the main branches of science have not reached a single conclusion on the essence of man yet, and as a consequence, there is no single paradigm of self-management in the human life system. To a certain extent, this complex issue is solved by modern world and domestic management sciences, which have proposed a series of general and specific self-management laws1.

According to leading scholars, the category "human", in the context of the self-management matter, is defined as follows.

It is the most complicated living psychophysical open system that is self-organized and guided by its goals, methods, and capabilities, provides its physical and creative existence. It selects principles, interpersonal and social contacts.

In these conditions, the "self-management" subsystem is the determining factor of self-development, self-improvement, and self-realization of students at the higher management education system.

The second aspect is connected with the fact that in the "self-governance" subsystem (SGE) the subject and object at the same time are performed by the same person – a student.

While giving the correct definition of theoretical and methodological and practical principles of self-management, (I-management), it is advisable to refer to the second main Bible law: "Love your neighbour as yourself"2, where under the “neighbour” other beings can be understood (people, animals, birds, etc.). From this fundamental Holy Scripture there are two important conclusions: 1) everyone must love himself, that is, his "I"; 2) a person can love his neighbour as himself, but not greater than himself. 1 Kolpakov V. Self-management / V. Kolpakov. – K.: Interregional Academy of Personnel Management , 2008. – Р. 63-70. 2 The Bible or the Book of the Holy Writ of the Old and New Testament. Anniversary Edition on the occasion of the Millennium of Christianity. 1523 p.

159

In order to love oneself, personal I, it is essential to know why a person deserves it, therefore the analysis of personal I has to be carried out. In a formalized form, the process can be represented in this way:

analysisIIloveI −→←≤1

where: I is a person; I1 is other creatures.

However, deepen into personal self, conducting the analysis and even more learning to comply with personal self is a difficult task, as repeatedly pointed out by prominent thinkers of the past and prominent scholars of our time.

Therefore self-management is the most complex, from all existing management types the quintessence of which is an expression of an ancient Roman philosopher Seneca: "The strongest is he who has power over himself." This leads to significant difficulties in solving the self-management issues in the students’ professional training system at the state-management higher education institutions.

The third aspect is connected with the domination in the modern vocational education of an objective approach, aimed at studying various objects and phenomena of nature, without the proportionate development of the study subject – the student. As a result, there is an underestimation of the role and significance of the "self-management" subsystem (SMT) in the system of students’ professional training from this category.

The main principle deficiencies of the objective approach are that it focuses on the various objects and nature phenomena study, considering them separately from the subject of learning – the student.

The analysis of characteristics shows that an objective approach is not able to provide students with sufficient knowledge and educate wise, mature citizens who can fully realize their own capabilities and ensure the prosperity of Ukraine. As a result, the students, in particular, of the managerial specialties, are not sufficiently motivated to study, consider it difficult, uninteresting and remain dissatisfied with the knowledge quality, educators lose their enthusiasm, and Ukrainian society receives specialists who do not meet the current requirements.

The exclusive emphasis on the object of cognition in the system of specialists’ training, including the managerial profile, leads to minimizing the role of the subject of learning in the process of knowledge formation. Such an emphasis without proportional development of the subject of

160

knowledge (student) leads to significant negative consequences: the knowledge that students receive cannot be sufficient, absolutely reliable, complete, and, moreover, does not satisfy the student’s performance in the main spheres of life. In this case, the individual cannot be sure that the knowledge will lead only to positive changes in personal and social life.

The fourth aspect is that, due to the humanitarian nature, the self-management subsystem in the vocational training system of this category of students is very difficult to be quantified, and the state-management profile of higher education establishments still does not pay proper attention to this important issue solution.

The fifth aspect is that the basis of state-management education is an extensive network of universities, affiliates and faculties of managerial profile, which trains more than 100 thousand students (about 6% of their total number), in two directions and 27 management specialties and is an important part of the higher professional education system of Ukraine. In addition, the professional training of this category of students relates to complex types of creative activity. Therefore, the training of students in management majors is based on special approaches and methods to their professional training. It essentially complicates the self-management process1. Thus, the synthesis of modern scientific views on the "self-management" subsystem in the professional training system of students of management specialties allows concluding that its main features relate to complex and insufficiently researched management systems.

In order to determine the condition, trends and prospects of the self-management subsystem development, it is necessary to create a generalized (full-fledged) picture as a form of scientific representation of integrated knowledge in relation to modern theory, self-management methodology and practice and its basic directions.

The informational and analytical picture of self-management (IAPS) of students’ professional training system according to the aim, the main tasks and purposes is a fairly extensive, large-scale information system, the creation of which has been carried out in three stages:

The first stage is an information-retrieval one. At this stage, more than 150 sources of various information sources on self-management aspects, 1 Komar Yu. State and tendencies of higher state-management education development // Science and Economics, Scientific and Practical Journal of Khmelnytskyi Economic University. Issue 1 (37), 2015 p.171.

161

which are highlighted in the scientific-theoretical and methodological literature on public administration, management, economics, pedagogy, and economics, psychology and other fields of knowledge, have been selected by the primary information-search base to determine the outlook on the goals, tasks and methods of creating the IAPS. Then from the general array of information the selection of those resources has been carried out, in which the scientific and educational material has been sufficiently comprehensively reproduced to form the corresponding basic direction of self-management. The analysis of each literature source on such sections as content, abstract, introduction, conclusions, etc. has been conducted.

It allowed formulating conceptual approaches to the IAPS creation, in particular the number of basic areas establishment, their components, with the definition of the each direction nature and its effectiveness implementation.

The matters resolution concerning the conceptual approaches formation to IAPS creation and its basic directions allowed proceeding to the second stage of the study implementation, i.e. the project-oriented. The purpose of that stage has been to design a holistic information and analytical picture and introduce actual information material, in establishing the optimal correlation between the basic directions, their interconnection and structuring.

In order to fulfil it, the basic directions and their components in order to achieve its consistency have been filled in with qualitatively measured percentage indicators, necessary calculations, statistical processing of the received data, individual components correction. The information and factorial base for this stage implementation has been selected from 30 to 120 items of systematized and structured scientific and educational literature on various aspects of self-management of leading domestic and foreign researchers.

The third stage is a generalization. For its execution, the final updating of IAPS has been carried out, a set of measures on its integrity and optimization of its ten basic directions have been conducted, the consistent structure of their components distribution has been determined. The fulfilment of the mentioned stages has made it possible to create IAPS and its basic directions in the students’ vocational training system of management majors (Fig. 1).

162

SGE – self-governance SМТ – self-management

Fig. 1. Information and analytical picture of self-management (IAPS) and its ten basic directions in the students’ professional training system

Number of objects

100

120

120

4. Distribution of SGE in the main areas of activity — 100 %

The basic directions of the SGE, their distribution structure,%

120

30

8. Distribution of SGE within the main hierarchical management levels— 100 %

3. Distribution of the SМТ concepts in educational and scientific literature — 100 %

7. Distribution of SGE at social governance levels — 100 %

6. Distribution of SGE in scientific and educational literature — 100 %

5. Distribution of SGE in the human activity spheres — 100 %

9. The distribution of SМТ discipline study independently or under the teacher guidance — 100 %

10. Distribution of SGE in the information sources of domestic and foreign authors — 100 %

120

120

120

80

120

The main components of the basic SGE, the structure of their distribution, %

4.1. Management

— 50 4.4. Psychology — 5 4.3. Pedagogy — 20

4.2. Governance — 25

1. Frequency of terms SМТ and SGE usage— 100%

2.1. SМТ notion

– 80

2.2. SGE notion

— 20

3.1. Lothar Seiwert concept

— 70

3.3. Other SМТ concepts

— 10

3.2. V. Karpichov

concept — 20

6.1. Scientific literature — 35

6.2.1. Textbooks — 25

6.2.2. Workbooks — 40

6.2. Educational literature 70%

7.1. At the individual level — 70

7.2. At the collective

level — 30

9.1. Independently

– 55

9.2. Under the teacher guidance — 45

10.1Domestic authors — 45

10.2.1. Non-CIS countries — 40 40%

2. Distribution of scientific approaches to the SМТ and terms

interpretation - 100%

1.1. Resource approach — 65

1.2. Functional approach — 30

1.3. General approach — 5

8.1. Lower level — 45

8.3. Higher level — 25

8.2. Middle level — 30

10.2.2. CIS countries — 15

10.2. Foreign authors — 55

5.1. Scientific — 25

5.3. Labor

— 30

5.2. Educational

— 45

163

Thus, an informational and analytical picture of self-management (IAPS) has been created in the students’ professional training system of state-management majors as a generalized form of scientific representation of integrated and systematized knowledge in relation to modern theory, methodology and practice of self-management and its ten basic directions, the basis of its formation has been substantiated with reliable array of systematic scientific and educational literature of leading domestic and foreign authors.

The analysis of IAPS shows that its first three directions reflect the laws, regularities, theory and methodology of the SGE that is, it relates to the theoretical aspects of self-management. The other seven IAPS directions reflect its various practical aspects.

In order to justify the trends and prospects for the "self-management" subsystem development, analysis of each of the ten IAPS core areas, which is presented below, is important.

The first direction of IAPS. According to the results of the 100 items of information sources analysis, it has been found that the frequency ratio of the terms "self-management" SMT and "self-governance" SGE usage is 4 to 1, which does not fully correspond to the students’ vocational training system of this category. Although these terms are similar in a lot of features, they are not identical due to the fact that they have different potential, scope and spheres of application.

The second direction of IAPS. According to the results of 80 items of information sources analysis it has been revealed that the frequency ratio of the three scientific approaches in the SGE term interpretation in their overall structure is: resource – 65%, functional – 35% and general – 5%.

The systematization of these scientific approaches has shown that the lower (basic) level is a resource approach, the middle level is a functional approach and the highest level is a general approach.

The third direction of IAPS. It concerns the definition of the distribution structure of the six SМТ concepts, which are described in the special literature1. These include: 1. The concept of own time economy – the German researcher Lothar J. Seiwert; 2. The concept of an interdisciplinary model of management itself – V. Karpichev and

1 Gradinova O. Research of prerequisites for the modern self-management system use at tourism industry enterprises // Bulletin of DUTB. Donetsk: DUTB, 2011. № 15. P. 68-76.

164

V. Varlamov. 3. Concept of own restrictions overcoming – M. Woodcock and D. Francis; 4. Concept of personality self-development – V. Andreev; 5. The concept of the personal culture of business life improving – A. Hrolenka; 6. The concept of achieving personal business success – Berbel and Heinz Schwalbe.

According to the results of the analysis, 30 items of information sources have revealed that in the theoretical concepts distribution structure of SМТ L. Zoyvert’s concept of own time economy is the most widespread – 70%, the second place belongs to the interdisciplinary concept of SМТ by V. Karpichov and V. Varlamov – 20%. The other four theoretical SМТ concepts take only 10%.

The concept of L. Zewert is used by Western European authors when creating a large number of practical manuals, which deal with individual aspects of the time management issue. The results of the study have showed that due to the theoretical errors in the self-management system over the overwhelming majority, some researchers misuse the term "time management" and it is expedient to replace it with the term "self-management of the process".

The fourth direction of IAPS. According to the results of the analysis, 120 items of information sources have revealed that the SGE distribution structure in the main sectors of the economy is: management – 50%, governance – 25%, pedagogy – 20% and psychology – 5%. Such a division shows that there is a positive tendency for the SGE predominant distribution in management and governance (75%), which focuses on solving self-management issues for managers and executives.

The fifth direction of IAPS. According to the analysis results of the 120 items of information sources, it has been found that the structure of the SGE distribution in the main areas of human activity is: educational – 45%, labour – 30%, scientific – 25%. Such distribution indicates the non-rational structure of the SGE coverage in the information sources, part of the scientific support of complex subsystem, which is the SGE in the students’ vocational training system of management majors.

The sixth direction of IAPS. According to the results of 120 items of information sources analysis, it has been found that the structure of the SGE distribution in these two types of literature is: academic – 65%, of which 45% are practical manuals, 25% textbooks, scientific – 35% respectively.

165

The distribution indicates a negative tendency associated with excessive illumination of SGE in the academic literature – 65%, with a low level of the SGE provision in scientific literature (monographs, dissertations, scientific articles, etc.). An example of unsatisfactory scientific support for SGE is the fact that only one monographic research on pedagogy is devoted to this issue1.

In addition, in the list of information sources of the foreign authors, there is no scientific literature at all, and practical manuals prevail over the educational literature.

The seventh direction of IAPS. According to the analysis results of 120 items of information sources it has been revealed that the structure of the SGE distribution in the main social levels is: at the individual level – 70%, at the collective level – 30%, such a division can be considered positive, since two thirds of the information sources deal with the SGE issue at individual levels, that is, dedicated to a person, first and foremost, to a student.

The eighth direction of IAPS. According to the analysis results of 120 items of information sources it has been found that the structure of the SGE distribution in the main hierarchical levels of management is: the low – 45%, the middle – 30%, the high – 25%. Such structure can be considered rational, since almost half of it consists of the low level managers, which include future civil servants and managers – students.

The ninth direction of IAPS. According to the analysis results of 80 items of information sources it has been revealed that the study of the SGE and SМТ discipline independently is – 55%, and under the guidance of a teacher – 45%. Such structure of distribution cannot be considered optimal, since more than half of textbooks and manuals, in the vast majority of non-CIS authors, offer to study this important discipline independently. The approach does not involve the educational programmes development for specialist training, collective study and discussion of the main aspects of the SGE which cannot be recognized as a progressive trend.

The tenth direction of IAPS. According to the analysis results of 120 items of information sources on various SGE aspects, it has been found 1 Yamaletdinova G. Self-management of educational and cognitive activity of students in the physical culture sphere: a monograph / G. Yamaletdinova, under general editorship of L. Rapoport. – Yekaterinburg: Humanitarian University, 2008. – 136 p.

166

that 45% are works of domestic authors and 55% of foreign authors, of which 40% are authors of non-CIS countries and 15% are CIS countries. The division shows the rational balance of works with SGE of domestic and foreign authors.

The formation of IAPS involves a number of basic scientific principles: relevance, completeness, procedurality, goal-setting, integrity, manageability, consistency, flexibility, and scientific ones.

Thus, the creation of an information and analytical picture of self-management (IAPS), which consists of ten main areas, allowed conducting a comprehensive analysis of their state and development trends, to determine the role and place of the "self-management" subsystem in the students’ professional training system of this category.

Due to its nature and unique properties, IAPS allows laying the foundations for a comprehensive evaluation of the self-management subsystem, identifying the main scientific and methodological and practical principles, and making sound conclusions about the perspective development of the students’ professional training system of state-management majors on an innovative basis.

Taking into account the abovementioned, in order to substantiate the main areas of "self-management" subsystem improvement in the students’ professional training system of state-management majors, it is advisable to put an informational and analytical picture of self-management (IAPS) in combination with a modern scientific instrumentarium.

The necessity of such an approach is due to the fact that IAPS and its basic directions are the generalized form of scientific representation of integrated and systematized knowledge in relation to modern theory, methodology and practice of self-management, the basis of which is the solid foundation of systematic scientific and educational literature of leading domestic and foreign researchers. In order to do this, it is necessary to reveal the basic directions of the IAPS, which are listed below.

The first direction: substantiation of expediency of the predominant use of the SGE in the students’ professional training system of management majors.

According to the results of the logical and content analysis, the terms SGE and SМТ, although having a lot of features in common, are not identical due to the fact that they have different potential, scope and spheres of usage. Given this, the term, "self-management" is appropriate to

167

use in a fierce market environment, as a key technology in the labour management. The term SGE has to be used as an independent scientific direction in the teaching management system of students from state-management majors, which relates to complex types of creative activity and requires special methods and approaches to their professional training.

The second direction: determining the expediency of using the main scientific approaches to the SGE and SМТ in the vocational training system of students of state-management majors.

The realization of this direction, which is associated with the systematization of basic scientific approaches, has shown that the bottom (basic) level is a resource approach, the middle level is a functional approach and the highest level is the general approach; it is self-management in the management system of students’ professional training system of state-management majors on the basis of the process, the science and the art of management for the student's self-improvement.

It is proved that the most effective is a general approach characterized by universality, completeness of scientific instrumentarium and huge potential.

It allows concluding that in determining the term SGE, all three scientific approaches: resource, functional and general can be applied and are valid. However, significant advantages in the complex tractation, multifunctional and multidimensional management subsystem as "self-management" has a general approach that is characterized by universality, completeness of scientific instrumentarium and big potential.

The third direction: determining the expediency of using the six SМТ (concepts for the students’ professional training system of state-management majors1.

Among the six concepts the most widespread is L. Zoyvert's one – 70%, the essence of which is to manage time, i.e. "time management". It is well-known that life has many values, but time is the most valuable resource of life, it cannot be stopped, multiplied, accumulated in reserve, slowed down or accelerated. The IAPS analysis shows that its first three directions reflect laws, regularities, theory and methodology of the SGE,

1 Gradinova O. Research of prerequisites for the modern self-management system use at tourism industry enterprises…

168

that is, refers to theoretical aspects of self-management. The other seven IAPS directions reflect its various practical aspects1.

It is known that the basis of self-management is always its basic component – the process. It is defined as a form of manifestation of self-management in a set of stages, serving as qualitative characteristics of the practical realization of self-management functions.

On the other hand, all processes of self-management occur in time. That is, the solution of the issue lies in the area of specification of the self-government process: "self-management of students’ professional training", "self-management of the labour process", "self-management of the educational process", "self-management of the motivation process," etc.

In order to eliminate this theoretical error, it is advisable to replace the term "time management" with the term "self-management by the process", the definition of which happens in time and is an important condition for the management personnel of the new formation professional training.

The fourth direction: understanding the structure supply of the self-management with educational and scientific literature in the students’ professional training system of state-management majors.

The realization of this direction is connected with the intensification of theoretical and applied research, which involves the set of measures of both strategic and tactical nature implementation regarding the students’ self-management by their independent professional training within the main management functions (self-planning, self-organization, self-motivation, self-control) and the main types of innovations: educational, scientific, managerial, organizational, etc.

The fifth direction: determine the expediency of studying the SGE and SМТ disciplines independently or under the teacher guidance in the system of professional training of this category of students.

The realization of this direction is connected with the gradual transition from independent study of SGE and SМТ disciplines complex to studying them under the teacher guidance. This approach is quite effective, because, firstly, it involves the curricula development for each SGE discipline, and secondly, teaching these disciplines for student groups, 1 Personnel Management: a textbook / V. Danyuk, A. Kolot, G. Sokov and others; under general editorship of PhD in Economics, prof. V. Danyuk – K.: KNEU; Kramatorsk NKMZ, 2013. – Р.490.

169

their collective (and not independent) study and practice, taking examinations and credits by students from the main SGE aspects in the system of students’ professional training system of management majors, significantly improves the self-management of this category of students1.

The sixth direction: introduction into the students’ training program the management specialties and the "I-disciplines" complex.

The practical realization of this direction is connected with the wide introduction of "I-disciplines" complex into the educational process of students’ professional training system of management majors which are directly aimed at the student's personality development. These include: "Self-management of the student's education," "Self-management of the future manager performance", "Self-management of the student's health," "Self-management of student's educational information," "Self-management of student motivation," "Self-management of student knowledge formation," "Self-preparation of master's thesis", "Self-management in PhD studies and preparation of dissertation thesis", etc.

The significant advantage of "I-disciplines" from other management cycle disciplines is that besides the cognitive function, which is aimed at knowledge acquisition, these disciplines perform two more functions, namely2:

Motivational function

⇒ helps student to answer the question: "Why do I need to have solid knowledge, skills and abilities?" and thus develops aspiration for learning, which is one of the most important conditions for the educational process implementation in higher education institutions of the state-management profile

Self-development

function

⇒ is based on the study and use the system of managing independent educational activities by the student and answers the question: "How do I study effectively?"

1 Batchenko L., Gamayunov VG. Povazhny S. Management in education (pedagogical aspect): Educational and methodological textbook. – Kharkiv: Basis, 1998. – P. 142. 2 Komar V. On the question of the expediency of the "time management" term application in the system of students’ professional training system of management majors, p. 141-143. / Thesis collection of the 2nd International Scientific and Practical Conference – Khmelnytsky, KhUML, 2015. – 346 p.

170

The seventh direction: creation of a system of attributive creative systems and conceptual models, information technology programs, computerization and distance learning for this category of students.

The realization of this direction is connected with the information technologies development and computerization of training on the basis of modern scientific instrumentarium, which allows radically changing the self-planning, self-organization and self-control methods of professional self-training system, to reduce its labour intensity while increasing the role of academician’s managerial function at higher educational institutions of managerial profile.

The eighth direction: creation of a system of decimal creative models SGE in the professional training system of this category of students.

Realization of this direction is connected with the fundamental model creation of social processes creative management, based on the scientific method of structural-linguistic quantification1.

Taking into account the unique properties and potential features of the fundamental model of creative management in its format, the author has created a set of variable decimal models of creative self-management for students’ professional training system of management majors, in particular the model of creative self-management by the process of students’ professional training of state-management majors (Figure 2).

As shown in Figure 2, the first component of the conceptual model is the term "management", which has been chosen as the self-governance process subject for students’ professional training and consists of 10 letters; the object is the process of managing the self-governance system of student professional training. Moreover, each of the 10 letters means a certain administrative influence on the corresponding structural element of the process of self-governance preparation, and the last, tenth letter of the word "management" ends the self-management process.

The second component is a model of the life-sustaining activity of the management process of professional training, which includes three stages: "beginning", "middle" and "ending" and consists of 10 structural elements.

1 Komar Yu., Mokhortov Yu., Komar V. Theoretical and methodological concepts of management of the vocational training system of management personnel of a new formation // Management Leadership: Monograph / Ed. V. Tolkovanova. – Khmelnitsky: SE Melnik A.A., 2013. – p.75-107.

171

Fig. 2. Conceptual model of creative self-governance process of management major students’ professional training, author's development

The third component is an optimized self-governance process of the

professional training system, which is appropriately distributed to 10 structural elements, with the allocation of 3 stages: Initial stage – 4 elements: 1 – setting training goals; 2 – setting priorities in the selection of training objectives; 3 – the choice of training objectives; 4 – planning of training; middle stage – self-organization: 4 elements: 5 – self-organization at lecture classes; 6 – self-organization in practical classes; 7 – organization of student’s independent work; 8 – self-organization of student activity with educational information; the final stage – self-control: two elements: 9 – current self-control of student’s preparation, 10 – final self-control of student's training.

The necessity of forming the self-governance models class for the students’ professional training system is due to the fact that the self-governance subsystem is the most complex and least studied object of research; on the other hand, when it is formed, there are significant limitations in the experiments or other types of models application (artificial, mathematical, linguistic, etc.) because they are not able to

1– setting preparation goals

2 – setting priorities in choosing training goals

3 – selection of training goals

4 – preparation of training plans

5 – self-organization during lecture classes

6 – self-organization during practical classes

7- organization of student’s independent work

8 - self-organization of the student's work with information

9 – current self-control of student's training

10 – final self-control of student's training

3. Optimized self-management process of student training 2. Model of life sustenance

3

MM 11

АА 44

EE 66

GG 55

NN 33

MM 77

EE 88

NN 99

TT 1100

AA 22

End

- sel

f-co

ntro

l

1. The term "management"

1

2 2

3

4

5

6

7

8

10

9

Mid

dle

- sel

f-or

gani

zatio

n Be

ginn

ing

- se

lf-pl

anni

ng

172

reproduce the training processes at higher management education, which relate to the creative management of information learning1.

It is known that the process is an integral attribute of management, without which it can neither exist nor presuppose. Each management process is associated with prediction (that is, with the future), is characterized by motion and ends when a set of ordered time-related interconnected management stages is passed. In this case, the management purpose can be achieved if consistently overcome a clearly defined number of elements, i.e. 10.

If the management process takes place with the number of elements less than 10, the management goal can be achieved partially or not achieved at all. However, it cannot include more than 10 items, because it will be different management of another phenomenon, system, or object. It allows an interpretation of the definition of "manage – means to predict" as an ability of the management subject to see in advance (predict) its results.

In addition to the management process, the elements of management science are involved in the conceptual model of creative self-management by professional training, as evidenced by the use of a number of basic scientific principles: procedurality, consistency, scientificness, systemicity, goal-setting, combination of abstract symbols (letters and numbers) with the management process, vitality, attributivity, manageability, feedback.

An important advantage of the conceptual model of creative self-management is the logical combination of the process and the science of self-management, which provides scientific self-management. At the same time, according to the denotation, the basis of the conceptual model is a creative approach that spontaneously provides the "art of self-management" category implementation in the process of its use. It indicates the optimal combination in the conceptual model of the three managerial categories: "process", "science" and "art" of self-management in the education field.

The graphic representation of the creative self-management in the conceptual model combination of the three categories is given in Figure 3.

It is fundamentally important that all conceptual models of creative self-management of the educational process always form the 1 Methodology of Public Administration: dictionary-reference book / for colleges. Ed. by V. Lugovoi, V. Knyazev – K .: NAPA Publishing house, 2004 – 196 p.

173

methodological basis for constructing this process, since it is based on the general laws of its functioning and determine the root cause. The subject of the study is considered as a whole, abstracting from the subjects and objects of the management system, its nature, features, principles, methods and technologies of student training, as well as specific higher education institutions of the management profile, where the training of this category of students is carried out.

Fig. 3. Graphical representation of the combination of the three administrative categories "process", "science" and "art" of self-

management professional training in the creative self-management conceptual model, author's development

Conceptual models of creative self-management of students’

professional training of state-management majors are characterized by such unique features and characteristics:

¾ the essence of the model is a process approach, which, in combination with modern scientific instruments, provides the achievement of a high level of self-management information.

The conceptual model of creative self-management provides the optimal combination of "process", "science" and "art" of self-management categories

of students’ professional training

The self-management process of student’s preparation is a set of steps, stages, elements, which are qualitative characteristics of the practical implementation of self-management functions of the student in the education field

The self-management science of the student's training is a system of knowledge of the most effective principles, forms, methods of self-management, which enable them to achieve maximum results at the lowest inputs and resources in the education field

Scie

ntifi

c sel

f-man

agem

ent

Crea

tive

appr

oach

usa

ge in

conc

eptu

al m

odel

The art of self-management is the student's creative use of the whole system of scientific knowledge in the self-management practice, taking into account the specific conditions and circumstances of preparation.

It sp

onta

neou

sly

ensu

res t

he “a

rt o

f sel

f-m

anag

emen

t” ca

tego

ry

174

¾ the basis of the model are the systems of the highest level of perfection – attributive, which form integral, integrated, completed creative systems of self-management by students’ professional training;

¾ the model uses 3 most important attribute systems that cover the entire self-management system of students’ professional training;

¾ the model is a theoretical and methodological model for constructing similar creative models;

¾ the model implements full-cycle management and information processes, ensuring not only effective mobilization of the student's intellectual potential, but also aimed at solving the most important tasks of the self-management system of professional training;

¾ using the conceptual model of creative self-management allows achieving a synergistic long-term effect, since the total result of the model exceeds the results of the isolated effects of its subsystems.

It is the ground for the purposeful and effective informational-energy exchange in the process of professional training, the whole potential of knowledge, skills and abilities of the educational process participants is accumulated; this potential is transformed into information resource in the form of educational concepts, programs, algorithms, projects, etc.

It ought to be noted that the creation of this model class is connected with the person’s (student’s) creativity that is, the active use of imagination, vision, own abilities, intelligence, intuition for a sophisticated understanding of the essence and features of model construction.

The basis of any creative self-management model of professional training is a highly qualified lecturer of higher education of a management profile, who, based on a creative approach, builds a perfect system model, and the student's task is to use it effectively.

Having such powerful scientific instrumentaruim as a set of creative self-management models by professional training, the student has the opportunity not only to knowingly influence the processes of managing information, but also optimally combine them with the science and art of self-management of professional training, thus achieving the highest level of systemic self-management.

Taking into account the unique properties of the conceptual model of creative self-management of professional training, the author has

175

distinguished a series of similar creative models for the preparation of this category of students, namely:

¾ the model of creative self-management to process the lecture materials;

¾ the model of creative self-management of the student's training while preparing and conducting seminars;

¾ the model of creative self-management for student's education motivation;

¾ the model of creative self-formation of the student's system thinking development.

The indicated ten models of creative self-management training have been tested and used in the educational process for the students’ professional training in leading universities of management profile.

Creation and introduction into the educational process this model class is an important condition for the professional training of the new management personnel generation. It allows developing the system of self-management of students’ professional training at higher education establishments of the management profile, faculties and specialties on an innovative basis and achieving a high level of management informatization in this educational sphere.

176

3.3. STATE ADMINISTRATION: ISSUES OF THEORY AND PRACTICE ORGANIZATION OF THE SCIENTIFIC AND METHODICAL SUPPORT FOR THE IMPLEMENTATION OF "THE NEW UKRAINIAN SCHOOL CONCEPT" AT THE LEVEL OF THE MANAGEMENT OF ACTIVITIES

OF GENERAL SECONDARY EDUCATION INSTITUTIONS1 Primary school reform is just the first link of the changes in education,

which will start on September 1, 2018. And from September 2022 the new standard for high school will come into force. 2027 – the year of innovations and changes in the high school2. The New Ukrainian School Concept establishes democratic (partnership, parity, dialogue) tasks. This means that it is necessary to draw attention on the interaction of all participants in the educational process. Management activity of the institution of general secondary education is only half built on rational technologies, the other half of it – art, which is constantly needed to improve, to seek new forms and methods of management. The scientific reasoning of the long-awaited, democratic changes in the implementation of the managerial and pedagogical processes in the formation of the New Ukrainian School on this problem is considered in the works on the democratization of various components of the educational system (O. Vishnevsky, L. Gaevskaya, N. Derevyankina, E. Kurkin, and others), from the standpoint of civil partnership (M. Guritsk, V. Davydenko, S. Zhdagnenko, G. Nazarenko), as a model for the democratization of school life (G. Elnikova, V. Kremen, etc.), or an innovative model of school leadership (T. Babenko, L. Byrman, Yuri Belyaev and others).

The establishment of an educational institution according to new changes related to the New Ukrainian School Concept requires from the chiefs to develop the fundamentally new model of the management system, to transform a modern institution of general secondary education into an

1 The authors of subsection: Marusina Larisa, Post-graduate Student of the Public Service and Educational Management Department of the Central Institute of Postgraduate Pedagogical Education State Higher Educational Institution “University of Educational Management” National Academy of Educational Sciences of Ukraine, Kyiv, Ukraine; Loginov Andriy, Leading Specialist at the Department of Education in the Zolotonosha District State Administration, Cherkassy region, Ukraine 2 The New Ukrainian School Concept [Electronic resource]. – Access mode / http:/mongovua/activityeducation/zagalna–seredney/ua–sch–2016/

177

open system of education and upbringing, activities at the level of an innovative management model, where there is a support school and its branches, and the role of the teacher is not as a single mentor and source of knowledge, but as coach, facilitator, tutor, moderator in the individual educational path of the child. The purpose of the study is to reveal the content of the organization of scientific and methodological support at the management level in accordance with the requirements of the New Ukrainian School Concept. The task of our article becomes quite understandable, where it is important to characterize the head of the institution and the teacher of the new Ukrainian school and the ways of his professional development, personally oriented style of management activity, ways of transition from administrative-team to public-state (democratic) character.

In contemporary literature, the subject of management science is determined (by B.A. Gaevsky) as knowledge that enables the carrying out of any object in accordance with the needs, the laws of functioning and development of its own potential, as a theoretical description of objective and subjective mechanisms of organization of management of these objects. Organization of object management is perhaps the most important factor in achieving success1. From our point of view, the task of scientific and methodological support for the implementation of the New Ukrainian school Concept is advisable to direct the following tasks:

1. The consolidation of law (in the Charter of the school) to participate in the management of the institution of general secondary education of students and parents communities as the main consumers of educational services.

2. Ensuring the rights and freedoms of teachers, students and their parents to participate in the democratic management of the institution of general secondary education where the decisions of pedagogical, student and parental self-governance bodies will predominate over the role of administrative decisions of the educational institution administration.

3. To form the motivational, theoretical and practical readiness of pedagogical workers to modernize the content and form of the educational process in an educational institution. 1 Starchenko K., Litvinenko G. Scientific-methodical work as an object of management / K. Starchenko, G. Litvinenko // Open Lesson. Pleiades. – 2009. – No. 3-4 – P.8-9.

178

4. To create conditions for the transparent functioning of self-governing bodies of the general secondary education institution, access to information about their decisions and actions, periodic reporting to other subjects of the educational process.

5. Fulfilling of needs for self-education and self-development, self-knowledge and self-improvement of teachers, interests of participants in the educational process.

6. Use and implementation of leading pedagogical experience. The scientific and methodological support is provided by the legal and

regulatory framework: the New Ukrainian School Concept, the Law of Ukraine "On Education", the change of educational programs, the Law of Ukraine "On Innovation Activity", the national-patriotic education for children and youth concept, "Regulation on a general educational institution", approved by the Decree of the Cabinet of Ministers of Ukraine No. 778 of 27.08.2010, "Regulations on the Board of Trustees of a General Educational Institution", approved by the Decree of the Ministry of Education and Science No. 45 of 05.02.2001, "Parenting Regulations on Parent Committees (Councils) of General Education Institutions", approved on 02.06.2004. Decree No. 440 of the Ministry of Education and Science of Ukraine, available at each educational institution "Regulations on the Parental Council".

There is no doubt that the requirement for the teacher of a new school to have flexible system of conscious and purposeful mental and practical actions, which allow to perform teaching and educational functions in ever-changing conditions with success. It is quite understandable and relevant to require from a teacher to master and implement the pedagogy of partnership between a student, a teacher and parents, the base of which is communication, interaction and cooperation between all equal participants in the educational process, which are united by common goals and aspirations, and are responsible for the result. To this end, the teacher must widely apply teaching methods based on cooperation (games, projects, group tasks, research activities, etc.), must organize a common interaction that will promote socialization and successful mustering of social experience on the basis of respect for human rights, democracy, sympathetic and positive attitude, supporting good ideas, nurturing national and own dignity of all partnership members.

179

The ways of solving these problems can be different. Among them is the activation of activities on the introduction of democratic principles for the management of both school administration and self-governing bodies for the management of general secondary education institutions: 1) for the general secondary education institution; 2) the board of trustees; 3) pedagogical council; 4) Parental Council; 5) organs of student self-government; 6) school subject methodical associations (departments)1.

To ensure the teacher's professional development within the institution of general secondary education, it is necessary:

carry out an analysis of the work of each pedagogical worker; to understand his motives and aspirations; fairly evaluate and mark the successes and achievements of the

teacher; warn and prevent conflicts in the team; to build business relationships with colleagues, administration and

parents in accordance to their individual characteristics and situation. It is important that teachers will have more freedom: to work on their

own curriculum and on the approved state program, focusing on the pace and success of their class.

Professional development of the teacher is a long and diverse process. Scientific and methodological support should provide motivation for staff for personal and professional growth. The teacher must learn how to develop authorial curriculum, choose the appropriate methods, ways and means of teaching, actively express, present and promote their own professional opinion.

A modern teacher strives to master perfectly information and communication technologies and actively use them in their own professional activities, to be able to study educational problems using modern means, to work with large amounts of data, to make and present conclusions, to collaborate online in educational, social and scientific projects. He must fully use the electronic platform (electronic textbooks,

1 Regulation on a general educational institution [Electronic resource]. – Access mode: http://zakon2rada.gov.otherthan/laws/show/778-2010-%Do% BF

180

training courses, encyclopedias, multimedia, interactive on-line resources), and also develop their own methodological and didactic materials1.

The scientific and methodological support at the level of the general secondary education institution, concerning the implementation of the New Ukrainian School Concept draws attention to the introduction of innovative experience of other colleagues, the ability to develop and implement their own innovations, to carry out research and experimental activities, to generalize, present and popularize their own pedagogical experience. It requires the systematic activity of the teacher in terms of professional and personal self-development.

The partnership of the general secondary education institution requirs renewal. It lies in maximum use of power and community. In the conditions of decentralization, we specify the tasks, should be taken into account in the activity of an educational institution, namely:

Involvement of community resources for the development of the school, its social self-organization and self-governance.

Increase of the economic independence of an educational institution, attraction of investments, sponsorship opportunities.

Aiming the partnership at the developing the cooperation and interaction in the development and implementation of pedagogical innovations, in particular, copmlex programs of different levels.

Development of international partnership. Creating an atmosphere of cooperation between parents and teachers

for the purpose of educational influence on the development of the child's personality2.

Self-knowledge and self-improvement is an extremely expressive problem of the modern educational process. To understand the essence of self-knowledge and self-improvement is first of all to take full responsibility for everything you do, say and think, to consciously form a steady aspiration for the knowledge of your individual resource of forces and to steadily implement the principles for achieving the created ideal.

1 Nazarenko G.A. The New teacher of a new Ukrainian school / G. A. Nazarenko // Pedagogical Bulletin. – 2017. – No. 1. – p. 4. 2 Zamulko O. I. The role of methodical services in creating the space of pedagogical culture for participants in the educational process / O. I. Zamulko // Pedagogical Bulletin. Special issue. – 2015. – No. 3. – P. 37.

181

Self-knowledge activity is conditionally differentiated into several stages:

1st stage – realizing the main motivating reasons for personal and professional self-improvement: the quality of the acquired knowledge, professional achievements, and the level of communicative culture depends to a greater extent, on system work on yourself.

2nd stage – the forming of a stable striving for self-improvement: it is important not to lose their own achievements, to learn to compare oneself with oneself: what kind was yesterday, a month, a year ago on the quality of peacefulness, truthfulness, gratitude, and responsibility.

3d stage – implementing acquired knowledge, in particular about yourself: the observance of clear and firm self-control based on the results of accepted decisions, which promote the further development of independence, self-discipline, initiative.

4th stage – the clarification of the teacher as a subject and his understanding of the cognitive activity of nature "evil in good" and "good in evil".

5th stage – creating the conditions for the development of positive, logical, constructive, project thinking, achieving a level of unified self-analysis of wishes, emotions, thoughts and objectification of self-evaluation of actions.

Organization of self-knowledge activities is carried out in the form of special methods of teacher’s work over himself:

The method of doubt overcoming, the core of which is that in a particular situation it is necessary to find convincing arguments with the help of which we can find out the expediency of the committed act.

The method of fear overcoming is used to create fortitude to difficulties, incertitude in one's own forces, and hesitation.

The method of narcisism overcoming. It is necessary to avoid hypocrisy and cunning, because such features as vanity, arrogance, self-forgiveness, narcisism can be formed.

The method of self-pitying, which effectively works in the case of confusion, despair in one’s own power. The key formula "And this will pass" will allow you to return to your favorite business.

The method of objective self-evaluation, which has a crucial role in self-knowledge. It involves the ability to analyze own actions, words,

182

wishes, emotions, thoughts, aspirations and feelings and objectively evaluate them.

The stages of self-improvement include the following methods: The method of the "ideal of morality", which lies down in developing

its own moral codex, which should be strictly adhered to. The method of "planning", which involves making a plan of self-

commitments for a week, month, year, depending on the consciously formulated goals and tasks, and also the clarification of the work’s scope on specific obligations, determining the time of it’s implementation.

The method of "mirror reflection", in the base of which lies the ability to self-observation and self-affirmation in the words and actions of another person.

The method of "adequacy of own forces and capabilities", which involves the daily planning of the next day's activities. Planned activities should be by your forces and expedient to prevent disappointment.

The method of "magnetic gravity". It implies an objective attitude to each other, sincerity and frankness in relationships and a special demand for objectification of self-evaluation.

The method of "the matching of the ideal creation" lies in the absence of images as destructive power in the relationship1.

Systemic self-knowledge, based on the principles of humanism, honor, justice, lays the foundation of conscious personal and professional self-improvement of the subject of pedagogical activity.

The task of the head of the general secondary education institution is to organize activities in the staff and help to understand the complex and controversial facts. In the conditions of position selection and reforming of education. The new Ukrainian language concept sets the task of learning to manage staff not by ordering methods. It's about a high level of intelligence, a general culture of the head, so the others can trust and respect him.

The culture of communication requires goodwill, smiles to the head. If the head is gloomy, unfriendly, never smiles, then such a person can hardly hold on the position for a long time. For example, in the certain American

1 Cherkashina T.V. Personally-professional self-improvement of the subject of pedagogical activity on the basis of self-knowledge / T. Cherkashina // Pedagogical Bulletin. – 2017. – № 2. – P. 6-7.

183

companies it is prohibited to make remarks in the first half of the day, in order not to spoil the mood of the employees.

The culture of communication is also impossible without a high culture of the leader’s perfect knowledge of the Ukrainian language.

An essential element of the managerial culture of the head is the clear mode of work of the school administration, a high culture of visitor’s, conducting different conferencies, reception and meetings, review of letters and spoken applications from the parents, telephone conversations and a number of other events that determine its complex and multifaceted life. The new Ukrainian school requires from the to conduct internal school management, and move the emphasis of management from educational processes to the development of human potential, to create a kind of staff policy. The primary importance has the formation of internal culture: the seeing of own mission, awareness of goals, creating the system of values, which has a social value, providing high motivation of administrative actions, etc.1.

For realization of personally oriented management, to the determined qualities of a modern head, the scientists include: humanocentrism oriented personality and professional thinking of the head; observation directed to the complex study of a human (a kind of personally oriented professional vision); the ability to see the functional forms, processes and normative life of the institution as personally developing; readiness of the head to provide acmeological content to the managerial decision and influence (humaneness); the ability to optimistic projecting approach to the work with staff, based on belief in human, in its power2.

The professional development of teachers plays an important role in the implementation of the New Ukrainian School Concept. Methodological work should act as a system of interconnected events, actions aimed at improving the qualification and professional skills of each teacher, at developing and enhancing the creative potential of teaching staff. Therefore, the priority tasks of methodological work in the general secondary education institution are:

1 Samoiluk O.V, Psychological support of professional growth of the head / О. V. Samoiluk // School Management. – 2013. – No. 28-30 (400-402). – P. 45. 2 Bogoslovets G.I. Innovative models of management of educational institution / G.I. Bogoslovets // Pedagogical Bulletin. Special issue. – 2015. – No. 3. – P. 13.

184

- development of general and mental culture of pedagogical workers; - professional improvement; - activization of creative activity; - enrichment of the methodical stock of modern educational

technologies; - training of teachers for innovation activity; - avoidance of formalism; - the creation of conditions for innovation activity in educational

institutions1. The new State Standard suggests to leave the constant school

statement "knowledge for knowledge". In order to implement it, the teachers and children should be taught to use their knowledge in real life. The general secondary education institution should always communicate with the local community. This requires from the head of the institution to be open.

The Council of the general secondary education institution consists of the elected in the equal proportions the representatives of the teaching staff, students and the parents. The work of the Council consists in coordination the joint efforts to ensure the right of students for the quality education, in identification the directions for joint interaction in this aspect, and in listening to the reports about the work of not only all other self-governing bodies of the educational institution, but also the school administration. All this gets qualitative changes.

The introduction of democratic approaches in the general secondary education institution faces pedagogical, methodological, and the board of trustees.

The pedagogical council is a creative laboratory that investigates and collegially solves the actual issues of school life, aims teaching staff to improve the quality and effectiveness of the educational process, stimulates the development of creative potential, the growth of professional skills of teachers.

The methodical council of the general secondary education institution purposefully studies and analyzes the requests and needs of teachers in the implementation of scientific and methodological problems. The 1 Zamulko O. I. The role of methodical services in creating the space of pedagogical culture for participants in the educational process… – Р.15.

185

methodical council directs self-educational, self-recognizing, innovative, creative activity of teachers in accordance with the methodical problem, provides real effective help to teachers in the process of development of their skills. Democratic approaches to their work are the implementation of a collegial drafting of the council plan, the formation of working groups for the preparation to consider separate issues, working on the solution's projects on each issue, the compilation of a list of recommended literature for the preparation of teachers for discussion of issues and problems, the organization of intermediate forms of control and mutual control over the course of solutions' implementation1.

"Regulations on the board of trustees of a general educational institution", approved by order of the Ministry of Education and Science No. 45 of 05.02.2001, emphasizes that this self-governing body is forming from representatives of executive bodies and local self-government bodies, institutions, organizations, enterprises, and individual citizens in order to involve the public in solving education problems and ensuring favorable conditions for effective work of the general secondary education institution. The subject of captious attention of the board of trustees should be the set-uping of effective cooperation with executive authorities, organizations, enterprises, institutions, and other educational institutions aimed at improving the conditions for education and upbrining of students in the general secondary education institutions; assistance to the social and legal protection of participants in the educational process.

The board of trustees has the right to take the suggestions for improving the material, technical, educational, scientific, cultural, sport, correctional and restorative, medical and recreational bases, into consideration of the school administration, general meetings (conferences) of the general secondary education institution; interact with state authorities and local self-government bodies on important issues of improving the quality of education; to cooperate with benefactor and charity organizations in order to attract additional sources of financing of

1 Chirkova S.I, Pastukh T.V. Development of professional skills of a modern teacher as one of the conditions of the self-improvement process/ S. I. Chirkova, T. V. Pastukh // Pedagogical Bulletin. – 2017 – No. 2 – P. 17.

186

educational activities; consider the appeal of the local community on issues related to the work of the general secondary education institutions, etc.1.

In our opinion, this will increase the level of activity of teachers in the management of the general secondary education institution.

Parents' councils in an educational institution work in accordance with the "Model Regulations on Parent Committees (Councils) of General Education Institutions", approved on 02.06.2004. by order number 440 of the Ministry of Education and Science of Ukraine. Among the principles of democratic governance we distinguish the following: the right to submit for consideration to the school administration, as well as the pedagogical council and the board of trustees of the educational institution, its status, improvement of the conditions of the organization of the educational process, organizational and economic issues, which should be considered by the heads of the educational institution within a month and announce the result of consideration to the parents; the right to apply to the head, class teacher, board of trustees, pedagogical and board of the general educational institution regarding the clarification of the state and prospects of the work of the educational institution and certain issues, which worry parents; the right to control the rational use of the funds of general compulsory education, and in case of misunderstandings – to apply to the relevant education management bodies, bodies of public self-government, as well as to effectively protect the rights and interests of children, the right to form associations and other voluntary associations; and finally, the parents' council must have extensive authorities, he is given the opportunity to participate in the meetings of the pedagogical council with the right of advisory vote, to get acquainted with the organization, conduct and results of the assessment of academic achievements and attestation of students, and also to be a member of the attestation commission for the certification of pedagogical employees of the institution2.

1 Regulations on the Board of Trustees of the General Educational Institution [Electronic resource]. – Access mode: http://zakon4.rada.govua/laws/show/zo146-01 2 Parenting Regulations on Parent Committees (Councils) of General Education Institutions [Electronic resource]. – Access mode: http//golovbukhua/regulationns/1521/8456/-8457/469017/

187

The role of student self-government is increasing under the democratic and public management of the general secondary education institution.

Student self-government should cooperate with parents' committees, educational board, board of trustees of the educational institution; create conditions for active social action, development of life competence and responsibility of senior students; intensify cooperation of student self-government bodies with the media for the support and development of school media; provide facilitation of the student's planning and organization of work on the implementation of the decisions taken by the senior students themselves, as well as their analysis of the results of their activities1.

Nowadays, there is a reform of local self-government and territorial organization of power in Ukraine. That is why it is extremely important to ensure a unified approach to the model of the management of voluntary association of territorial communities (TC) and general secondary education institutions, located on their territory. Since the united TC can create its own educational manegement body or common with a couple of others united TC, or delegate the respective powers to one of the subjects of cooperation, so the duplication of functions should be avoided. We consider it will be appropriate to leave to the local educational authorities of the united TC, the following powers:

• Register founding documents of educational institutions. • Ensure the development of educational institutions network,

strengthening their's material base, economic services. • Create conditions for citizens to receive pre-school, general,

secondary, vocational, extra-curricular education. • Organization of teaching and methodological support for general

secondary education institutions. • To conduct fair and transparent elections of the new head of general

secondary education institution. • Take measures for placement of students in the other general

secondary education institutions in case of liquidation in the established order of a subordinated united TC of the educational institution. 1 Nazarenko G. Democratic principles of formation of the New Ukrainian school / G. Nazarenko // Native school. – 2017 – No. 7-8 (1051 – 1052). – P. 15.

188

• Determination of the requirements for a state contract and the formation of orders for the training of teaching staff, the entering into contracts for their training.

• Organize the children's registration of preschool and school age, and monitor the implementation of the requirements for the education of children in general secondary education.

• Provide social protection for educational workers, psychologists, librarians, other specialists, children, students for their education, upbringing, work in accordance with the standards of material, technical and financial provision.

• Resolve in the established order issues related to the care of minors who are left without the care of parents, orphan children, the protection of their rights, the provision of material assistance and other assistance.

• Establishing different types of moral stimulation and material encouragement for students and pedagogical workers at the expense of the local budget.

• Monitor the keeping of the order of giving to the graduates the education documents of the state standart.

• Establishment of the staff lists of subordinate educational institutions.

• Coordination of actions of pedagogical groups, families, community TC on educational and upbringing the children issues.

• Compliance with a general secondary education institution of the particular area of service.

In our opinion, only through the development of relations with the local community, united TC, we can create effective management of the educational institution, a positive image of the head of general secondary education institution, social partnership.

Our vision of management in the light of comprehension of the New Ukrainian School Concept – is the creation of such an educational environment in which the child can implement his own abilities and talents and achieve some success. Of course, this is a territory where freedom of thought, trust, innovation and positive change, partnership and dialogue, choice and responsibility are dominated.

Modeling a management structure in conditions of united TC involves the delegation of powers, both for the educational bodies of the united TC,

189

that we have listed above and for the general secondary education institution. Monitoring of the effectiveness of communications and interaction at the same time is very necessary, because they will provide to the organization the management of scientific and methodological support to prevent administrative duplication, move from operating mode to the development mode, ensure the fullness of management activities with specific content.

The basis of the organization of scientific and methodological work in the general secondary education institution in the conditions of the new Ukrainian school implementation is the planning function, which transforms into a target for the final result, into concreteness and balance. It is important that the management takes into account such indicators as goal, objects, subjects, with organizational, diagnostic, modeling, forecasting, informative, developmental, project, monitoring, marketing, investment functions. Following the democratic style, the head of the educational institution carries out consultations on solving certain methodological problems, actively communicates with pedagogical workers, encourages constructive remarks and criticism, and others. The realization of a specific function of the general secondary education institution must provide scientifically grounded and personally oriented approach to management.

The requirements of the new Ukrainian school offer the head of the general secondary education institution to delegate part of his authorities within the frames of the management of the parents council, student self-government, board of trustees, methodological and pedagogical councils. The concept of institution development is an important product of their joint activity and controversial discussion.

Implementation of democratic forms of management in the general secondary education institution under the conditions of the New Ukrainian School Concept creates conditions for the awareness of all participants in the educational process of the peculiarities of the power and responsibility division at the governance level.

190

3.4. MANAGING INNOVATIVE ACTIVITIES OF EDUCATIONALISTS AS A SUSTAINABLE DEVELOPMENT FACTOR1

In the context of European integration processes in the educational

environment of Ukraine, the innovative pedagogical technologies mainstreaming, the competent approach implementation to the regular labor force training, the continuous vocational education functions are expanding and becoming more complicated. Due to the changes in the content and the nature of a modern skilled worker performance, the transition to international standards at enterprises is essential for the proper organization of the labor-capable workers training on the labor market who can influence country’s sustainable development. That is why society requirements for a modern educator who is ready for innovation activity are changing. The important direction in the postgraduate education system is the pedagogical staff training with an innovative way of thinking, capable of modeling the groundbreaking pedagogical process.

Different aspects of the studied issue have been considered by both domestic and foreign scientists as: A. Aleksyuk, N. Kuzmina, N. Nichkalo, V. Rybalko (methodological principles of specialist’s professional training); R. Gurevich, I. Zyazyun, S. Lisova, A. Moskalenko, L. Khomich (professional training of pedagogical workers); I. Gavrish, I. Dichkivskaya, V. Dokuchaev, N. Klokar, T. Demidenko, A. Kozlova, R. Melenkova, V. Slastonin, I. Pidlasiy, O. Shapran and others (preparing educators to innovation performance).

The term "readiness" has been studied in many contexts by a lot of scholars. Readiness for professional activity was considered by N. Klokar, K. Makogon, A. Lysenko, D. Mazukha, A. Kobernik. From the point of the psychological aspects of readiness for innovative pedagogical activity development the following scientists as G. Ball, V. Dorokhin, L. Karamushka, V. Molyako have concentrated their attention2.

1 The author of subsection: Kharahirlo Vira, Head of the Department of Pedagogy, Psychology and Management of Bilotserkivskyi Institute of Continuous Education, Bila Tserkva, Ukraine 2 Balan O. Dydaktychna vzaiemodiia vykladacha i studenta yak faktor optymizatsii protsesu navchannia: avtoref. dys.na zdobuttia nauk. stupenia. kand. ped. nauk:spets. 13.00.01 / [Didactic interaction of the teacher and the student as a factor in optimizing the learning process: abstract from dissertation for the degree of a candidate of pedagogical sciences: specialty 13.00.01] / O. Balan. – K., 1994. – 22 p.; Kremen V. Problemy yakosti

191

In general, the definition of "readiness" with its structural content component has been interesting for scientists from various aspects of an educator’s professional activities. Considerable attention has been paid to components of readiness for innovation activity by: G. Borin, O. Gon-charova, L. Radzihovska, L. Kondratova, S. Kalaur, E. Bubnov, Z. Zali-bovskaya-Ilnitskaya, A. Gerasimova, I. Kazanzhi, S. Parshuk, O. Soroka, I. Glazkova, M. Paikush, M. Lukyanova, S. Brizgalova and others.

The analysis of scientific researches and generalization of psychological and pedagogical factors of a lecturer’s (teacher’s) readiness for innovation activity allows determining the presence of such contradictions:

1) the need to implement the innovations caused by integration processes in Ukraine and the modernization of educational standards, and the insufficient possession of modern methods of innovation activity by educators;

2) between traditional methods in the highly skilled specialists training and the urgent need to develop innovative approaches to the organization of educational process in vocational (professional) education institutions, in terms of training labour personnel as an important factor in sustainable development;

3) between the paramount importance for educators’ innovative activity readiness and the lack of an effective model of its implementation in the continuous vocational education system.

Therefore, the management of innovative activities of lecturers (teachers), the definition of the essence and structure of readiness for the innovations introduction in the educational process is relevant.

The eagerness for innovative pedagogical activity is a logical result of special training, self-determination, education and self-education. It is a psychic, active-action state of the personality, complexity of quality, system of integrated capabilities of an educator. It regulates innovative pedagogical activities, ensures their effectiveness.

Pedagogical innovations, as well as any other innovations, give rise to

ukrainskoi osvity v konteksti suchasnykh tsyvilizatsiinykh zmin [Problems of the quality of the Ukrainian education in the context of modern civilizational changes] // Profesiino-tekhnichna osvita [Vocational education], 2014. – № 14. – p. 5 – 8.

192

issues related to the need to combine innovative programs with state programs of education and training, the coexistence of different pedagogical concepts. They require fundamentally new methodological developments, a new quality of pedagogical creativity. Another acute matter is the matter of innovations adaptation to the educator’s professional activity. It is common that they are caused by attempts to adapt pedagogical technologies, elements of the education content, which have shown their effectiveness in other fields, to the specific conditions. This mechanical application of methods leads to the content and the deep essence of innovation loss, which often results in its discredit, the disappointment by many involved in the educational process, generates a new wave of conservatism1.

The success of innovative activity implies that the educator realizes the practical significance of various innovations in the educational process, not only at the professional but also at the personal level. However, the inclusion of an educator in the innovation process often occurs spontaneously, without taking into account their professional and personal readiness for innovation.

Readiness for innovative pedagogical activity is a special personal condition, which involves the presence of motivational and value relation to professional activity, possession of effective ways and means of achieving pedagogical goals, the ability to creativity and reflection.

It is the basis of the active social and professional-pedagogical position of the subject, which prompts innovation and contributes to its productivity. A lot of challenges faced by educators working in an innovative direction are also associated with a low innovation competence.

The innovative competence of a lecturer (teacher) is a system of motives, knowledge, skills, personal qualities which provides the efficiency of using innovative pedagogical technologies while working with students.

The components of an educator's innovative competence are awareness of innovative pedagogical technologies, proper possession of their content and methodology, a high culture of the use of innovations in

1 Lysenko A.F. Hotovnist maibutnoho vchytelia do pedahohichnoi diialnosti / [Readiness of the future teacher for pedagogical activity [Text] A.F. Lysenko // Pedahohika i psykholohiia [Pedagogy and psychology]. – 1995. – №1. – p. 125-132.

193

the educational process, personal conviction of the need for innovative pedagogical technologies1.

The readiness for innovation is an internal force that forms the educator's innovative position. As for the structure, it is a complex integrative entity, which covers a variety of qualities, properties, knowledge, personality skills. As one of the important components of professional readiness, it is a prerequisite for the effective work of the lecturer (teacher), the maximum realization of their capabilities, and the disclosure of creative potential. Sources of readiness for innovation are the matters of personal development, professional orientation, professional education and self-education, professional self-determination of the educator.

Taking into account all the analyzed scientific and pedagogical sources, taking into consideration the nature and structure of vocational education institutions pedagogues’ readiness, the authors will define the following components of readiness: motivational, cognitive, activity, reflexive. It is necessary to consider in greater detail each component of vocational education establishment educators’ readiness to innovate.

The motivational component is considered as the key one, because without proper motivation it is impossible to successfully develop and implement innovations in pedagogical practice. Motivation is viewed as the combination of psychological processes that direct human behaviour2. In fact, motivation serves as an awareness of a lecturer’s (teacher’s) needs to perform certain activities and transform them into a motive. In the structure of readiness for innovation, the motivational component is defined as a set of motives, which reflect the values of self-actualization, humanistic orientation, focus on professional self-development and self-improvement3.

1 Bendas, T. V. Uroven organizovannosti gruppy i problema liderstva. Dis. kand. psikhol. nauk. [The level of organization of the group and the problem of leadership. Dissertation of the candidate of psychological sciences]. – L.: LGU, 1981. – p. 72. 2 Kremen V. Problemy yakosti ukrainskoi osvity v konteksti suchasnykh tsyvilizatsiinykh zmin [Problems of the quality of the Ukrainian education in the context of modern civilizational changes] // Profesiino-tekhnichna osvita [Vocational education], 2014. – № 14. – p. 5 – 8. 3 Ibid…

194

All motives according to the content and methods of applying innovations in the educational process can be divided into two groups1:

1) internal motives, which are manifested in the interest in professional innovation in the conditions of social transformations, a sense of satisfaction with the results of their own activities;

2) external motivations that encourage educators to innovate in a changing environment due to reasons beyond the process and associated with prestigious motivation, broad social motives.

Equally important component of a pedagogue’s readiness structure for innovation is psychological and pedagogical competence, i.e. knowledge, skills and abilities (cognitive component).

The cognitive component stands in close connection with the motivational component of a vocational education institution educator’s readiness to innovate. It is difficult to overestimate the significance of this component, since only a person with the necessary moral and volitional qualities possesses the knowledge that is the theoretical basis for innovation, understands the essence and objectives of the educational process in a renewed paradigm that provides the personality development of a specialist capable to innovate. The cognitive component of the pedagogical staff’s readiness to innovate includes the ability to construct an educational process using innovative pedagogical technologies in their meaningful selection, analysis and evaluation. An important prerequisite for the innovation readiness development is the formation of psychological and pedagogical skills, the presence of analytical, prognostic-constructive, projective, and reflexive skills. Analytical skills include analysis of the pedagogical phenomenon, comprehension of the role of each innovation element in the structure of the educational process, complex diagnostics of the pedagogical phenomenon, the ability to optimally solve pedagogical matters.

The active component of the vocational education institutions teaching staff’s readiness to innovate is characterized by a professional

1 Ball H.O. Pro psykholohichni zasady formuvannia hotovnosti do profesiinoi pratsi [Tekst] [On the psychological bases of formation of readiness for professional work ] [Text] / H.O. Ball // Psykholoho-pedahohichni problemy profesiinoi osvity: nauk.- metod. zb. / red. I.P.Ziaziun. [Psycho-pedagogical problems of professional education: scientific – methodical collection edited by I.P.Ziaziun]. – K., 1994. – p. 9.

195

skills combination (gnostic, communicative, organizational, projective, didactic, technological, managerial); qualities that determine the effectiveness of designing an innovative educational process. This component includes certain subgroups of professional competence: methodological competence (involves knowledge of principles, methods, forms of problem-solving, ability to innovate, integrates the entire system of psychological and pedagogical knowledge and skills on the design of innovative educational process); operational-activity (involves the formation of knowledge and skills for the innovative professional activities implementation); information and communication (includes theoretical knowledge about the basic concepts and methods of lecture’s (teacher's) innovation activity; knowledge of information technologies); communicative (involves the formation of appropriate skills and qualities of an educator that promote effective interaction with the subjects of the educational process and the ability to solve productive tasks in the process of communication and interpersonal interaction, finding an adequate style and tone of communication); managerial (involves the formation of knowledge on the basics of the innovative processes management theory; the ability to design own innovation activities); technological (involves the motivation to master knowledge and skills of the innovative pedagogical technologies use in the educational process).

It is essential to consider the reflexive component of a vocational education institution teacher’s readiness to innovate. It involves understanding and awareness of the results of their own innovation activities or, if necessary, the activities of their colleagues, comparing the achievements with previously planned, processing the fixed errors and identifying ways to overcome them. Taken as a whole, the components identified by the authors are closely interrelated and complement each other to a holistic system.

The readiness structure of an educator of vocational technical training institution for innovation activity structure is presented in Figure 1.

In order to measure the level of readiness structure of an educator of vocational technical training institution for innovation activity, the authors conducted an experimental study. The questionnaire for determining the readiness for innovative pedagogical activity, which consists of seven blocks of questions, has been offered to the students of advanced training

196

courses. This questionnaire provides an opportunity to identify factors that impede the introduction of innovation into the work experience. The analysis of the results showed that 72% of respondents are interested in innovations in pedagogical activity. However, among the main reasons that burden the implementation of the innovative pedagogical technologies into teaching practice the following have been distinguished (Figure 2):

- weak financing of the innovation activities, absence of financial incentives – 16%;

- lack of information on innovative technologies – 13%; - lack of time and effort to create and apply pedagogical innovations –

16%; - conservative habit: less time and forces are required to work in the

ordinary way – 24%; - fear of failure in applying the new one – 11%; - lack of support from the management side – 7%; - no need to be engaged in new activities, as the traditional technique

yields quite effective results – 24%.

Motivational component:

- desire for self-development; - formation of a positive image; - high level of professional competence

Readiness for innovative activity in the system of continuous vocational education

Cognitive component:

- general high personality culture of an educator; - critical thinking ability; - ability to find innovative forms and methods of organizing the educational process

Activity component:

- a set of skills and habits of applying innovative pedagogical technologies; - the ability to design own professional activities, taking into account the national qualification framework

Reflexive component:

- ability to self-assessment and self-analysis of own innovative pedagogical activity

Fig. 1. The readiness structure of an educator of vocational technical training institution for innovation activity.

197

Fig. 2. Factors hindering the innovative pedagogical technologies

implementation.

Educationalists also identified internal contradictions that arise when applying innovative technologies (Fig. 3):

• inevitable failures, errors, which is unpleasant – 42%; • there is no certainty that the new approach will bring practical

benefits – 27%; • inevitable time consumption while working in a new way, no

compensation for innovative efforts – 31%. The following answers have been obtained to the question "According

to your opinion why can innovative activity be interesting?" (Fig. 4): • interest in education and upbringing increases – 35%; • the authority of parents and students strengthens – 25%; • the support of the administration, equal relations with it – 15%; • educator can get a new status among colleagues, respect for

innovation – 15% • self-esteem increases, a new look at oneself is formed – 17%.

198

Fig. 3. Psychological barriers to innovation

Fig. 4. Factors contributing to the innovation implementation

199

Therefore, the authors have found out that the development of educator's readiness for innovation depends on the psycho-pedagogical competence. Thus, the Department of Pedagogy, Psychology and Management of the Bila Tserkva Institute of Continuing Professional Education has developed new educational professional programs for the pedagogical staff qualifications improvement, taking into account the National Qualification Framework requirements, in which considerable attention is paid to the content modules that reveal a pedagogue’s innovative activity essence, the forms and methods of introducing innovations in educational process at professional (vocational) education institutions1.

An essential role for sustainable development lies in the importance of managing the innovative activities by educators, because in the framework of the renewed education paradigm, a person is the subject of society sustainable development. Individual has to take an active part in the processes that form the living environment, express own opinion regarding events occurring in the public sphere, communicating with the authorities, as well as the ability to influence the decisions of state authorities. With this objective in view, it is necessary to develop the leadership qualities of a pedagogical worker.

Achieving the goals of sustainable development in education based on innovative ground is the prerogative, in the authors’ opinion, for state sustainable development.

After analyzing domestic and foreign studies on the structure of teachers' professional readiness for innovation, we consider that the readiness of specialists to work is a condition that has a complex dynamic structure and is an expression of the totality of intellectual, emotional, motivational and volitional peculiarities of the human psyche regarding compliance with external conditions of activity and future tasks. In our opinion, the structure of readiness are the following properties, features and manifestations: a positive attitude to innovation; leadership skills of the personality of a teacher; professional abilities, temperament, motivation for innovations; necessary knowledge, skills and abilities; 1 Kolesnikova V.I. Tvorcheskaya individualnost v strukture lichnosti sovremennogo pedagoga // Vestnik TGPU. – 2007. – Vyp.7(70). – Seriya: Pedagogika. [Creative individuality in the structure of personality of a modern teacher // Bulletin of TSPU. – 2007. – Issue 7 (70). – Series: Pedagogy. – p. 46-51.

200

persistent, professionally important features of perception, attention, thinking, emotional and volitional processes.

Based on the ideas of I.A. Kolesnikova, Yu.N. Kulyutkin, V.A. Petrovsky, N.K. Sergeev and others, we can distinguish the main essential characteristics of a pedagogue of the vocational school as a leader capable of professional development and ready for innovation activity1: focus on continuous self-development, creativity in thinking, professional behavior, constant search; high adaptability to changes in pedagogical reality, mobility and success in the use of innovative programs and technologies; an adequate solution to professional and personal problems (both own and pupils’), the possibility of conscious correction of professional pedagogical activity and behavior; openness to innovative experience, professional activity, creative individuality, readiness to solve innovative tasks of pedagogical activity, rejection of stereotypes, stamps, freedom and originality in the use of pedagogical means, forms, positions in interaction with students and colleagues; self-criticism, responsibility, expediency; constant increase of the level of psycho-pedagogical and communicative competence.

Now associate the highlighted qualities of a pedagogue of the vocational school with the essential characteristics of leadership. Based on the views of T.V. Bendas, O.V. Yevtikhov, O.E. Klimenko, A.P. Kuzyakin,

1 Kolesnikova V.I. Tvorcheskaya individualnost v strukture lichnosti sovremennogo pedagoga… p. 46-51. ; Kolesnikova I.A. Tvorchestvo kak predmet issledovaniya v russkoy psikhologicheskoy nauke (konets 19 nachalo 20 veka): avtoref….kand.psikhol.nauk. [Creativity as a subject of the research in the Russian psychological science (late 19th early 20th century): abstract of the candidate of psychological sciences. – M., 1997. – 26 p.; Kulyutkin Yu.N. Izmenyayushchiysya mir i problema razvitiya tvorcheskogo potentsiala lichnosti. [The changing world and the problem of developing the creative potential of a person.] SPb.: SPb GUMPM, 2002. – 83 p.; Kuzyakin, A.P. Chto takoe lider i liderstvo? / A.P. Kuzyakin // Obrazovanie. [What is leader and leadership? / A.P. Kuzyakin // Education.] – 2000. – № 4. – p. 89– 99; Pervitskaya, A. M. Formirovanie liderskoy deyatelnosti v yunosheskom vozraste: avtoreferat dis. ... kandidata psikhologicheskikh nauk: 19.00.07 [Formation of leadership activity in adolescence: abstract from the dissertation of candidate of psychological sciences: 19.00.07] / A. M Pervitskaya.; Ur. gos. un-t im. A.M. Gorkogo. – Yekaterinburg, 2007. – 27p.; Petrovskiy, A.V. Lichnost. Deyatelnost. Kollektiv. [Personality. Activity. Collective.] – M.: Nauka, 1982. – 113 p.; Petrovskiy, V.A., Uchimsya obshchatsya s rebenkom: Rukovodstvo dlya vospitatelya detskogo sada. [Learning to communicate with the child: a guide for the kindergarten teacher.] // Petrovskiy V.A., A.M. Vinogradova, L.M. Klarina, L.N. Strelkova / M. Prosveshchenie, 1993. – 191p.; Petrovskiy V.A. Lichnost: fenomen subektnosti. [Personality: the phenomenon of subjectivity.] Rostov-na-Donu, 1993. – 67 p.

201

A.V. Markova, N.N. Maslyanov, A.L. Umansky and others, it can be argued, that leadership skills are a combination of psychological qualities, abilities and peculiarities of a leader's interaction with a group that ensures successful implementation of specific leadership functions. On the basis of analysis of researches of foreign scientists on the problems of leadership in education, we can define the following leadership qualities of a teacher: advanced intellectual abilities; domination or predominance over others; self-confidence; activity and energetic nature; knowledge of the problem (R. Stogdill); physiological; psychological (emotional); intellectual; personal (business) (U. Bennis); sociability; orientation to others; propensity to cooperate; empathy; tact; patience; emotional stability; flexibility in assimilating new roles; artistry; high intellectual flexibility; criticality and speed of thinking; ability to improvise; self-criticism; independence; initiative (Ye.V. Andriyenko); self-confidence; the presence of convincing representations about the desired state of affairs and the ability to report them to others in a simple and understandable language; a sufficient supply of optimism and faith in people to inspire them; energy; conscientiousness; compliance; emotional stability (D. Myers); assertiveness, energetic activity; emotional stability, self-confidence; consciousness (organization, responsibility, reliability, persistence); benevolence, propensity to cooperate, non-egoistic, kindness (Pervin, John, R. Hogan)1.

A comparative analysis of personal qualities of a pedagogue of vocational school, who is ready for innovation activity, and of leadership skills of a person has allowed highlighting the leadership qualities of a

1 Bendas, T. V. Uroven organizovannosti gruppy i problema liderstva. … 214 p.; Tkach, D.A. Professionalnaya karera sovremennoy molodezhi: avtoref. diss….kand. sots. nauk [Professional career of modern youth: abstract from the dissertation of candidate of sociological sciences] / D.A.Tkach. – Saratov, 2004. – 22 p.; Umanskiy, A.L. Pedagogicheskoe soprovozhdenie detskogo liderstva: Dis. ... d-ra ped. nauk: 13.00.01 [Pedagogical support of a child's leadership: dissertation of the doctor of pedagogical sciences] / A.L.Umanskiy. – Kostroma, 2004. – 318 p.; Umanskiy, L.I. Lichnost. Organizatorskaya deyatelnost. Kollektiv. / Izbrannye trudy. [Personality. Organizational activity. Collective. / Selected Works.] – Kostroma: KGU im. N.A. Nekrasova, 2001. – 208 p.; Umanskiy, L.I. Lichnost. Organizatorskaya deyatelnost. Kollektiv. / Izbrannye trudy. [Personality. Organizational activity. Collective. / Selected Works.] – Kostroma: KGU, 2001; Yevtikhov, O.V. Liderskiy potentsial rukovoditelya: spetsifika, soderzhanie i vozmozhnosti razvitiya: monografiya [Leader potential of the manager: specifics, content and possibilities of the development: monograph ] / O.V. Yevtikhov. – Krasnoyarsk: SibYuI MVD Rossii, 2011. – 288 p.

202

modern teacher of vocational school, who is ready for innovation. This structure includes: perspective vision and strategic goal-setting; creativity and sensitivity to change; purposefulness and ability to study throughout life; decisiveness and organizational insight; initiative and social proactivity; charisma and propensity to cooperate.

And now we describe their essence. Perspective vision and strategic goal-setting: this quality allows to create an image of a new, not yet realized future and to represent it to the followers. Sensitivity to change and creativity provide an opportunity for each situation to pick up the best solution and involves a reasonable risk, readiness to overcome obstacles, internal motivation, tolerance to uncertainty and readiness to resist the opinions of others. Purposefulness and lifelong learning involves focusing on the result, the ability to choose different routes to achieve it. It allows, constantly keeping the goals in sight, to choose different routes to achieve it. Charisma and propensity to cooperate: this quality of a teacher as a leader assumes a clear awareness of his own goals, the courage of desires, the openness of self-expression, the ability to influence not only the group, but also the masses, an incredible charge of energy that extends to others and the ability to influence the others. Decisiveness and organizational insight are the ability to predict and properly manage events, to plan and thoroughly contemplate all future activities; to bring the work process to perfection and organize it so that it becomes as productive as possible with a minimum of dedicating efforts. Thus, a comparative analysis of different approaches, concepts of leadership and peculiarities of pedagogical staff of the vocational school has allowed to reveal the essence of the concept of "a teacher as a leader of continuous vocational education", which is aimed at the innovative pedagogical activities. The leading characteristic of this is the social and leadership competence (knowledge and skills that allow a person to manage the future, make changes and inspire the others that meet specific conditions and opportunities provided by society), which determines the level of mastering them with a combination of active social and psychological knowledge, moral and ethical evaluative judgments and the ability to actively act in the social environment of a student and a vocational school. Leadership skills of a teacher could be formed during the process of professional development aimed at developing his leadership qualities and readiness for innovative pedagogical activities.

The high efficiency of raising the level of qualification of pedagogical

203

workers and maintaining it at the proper level is achievable only when it is based on the knowledge of problems of professional culture and the real needs of a teacher, and when he, guided by persistent internal motives, reveals his personal interest in obtaining the necessary scientific and methodical assistance concerning the study and implementation of innovative pedagogical technologies1.

Bilotserkivskyi Institute of Continuous Education of Education Management University is the leading educational institution for postgraduate education of the teachers of vocational schools, which actively explores and tests in practice educational innovations in the field of continuous education of the teaching staff of the vocational education and training system.

Systematic review of this problem from the standpoint of its practical implementation requires the development of educational project, which base has become a basic structural and functional model of innovative activity of a pedagogue of the vocational school (Pic. 1).

Pic. 1. Structural and functional model of innovative activity of a

pedagogue of the vocational school.

1 Balan O. Dydaktychna vzaiemodiia vykladacha i studenta yak faktor optymizatsii protsesu navchannia… – p. 15

204

The model determines the learning process in the following sequence: pre-course self-education; course qualification training, during which students receive a psychological and pedagogical focus on the introduction of innovations in the educational process; a system of teaching and methodological work in the intercourse period; work with the regional educational-methodical centers of vocational education and training and vocational schools that create an innovative environment, work on the methodical orientation of the pedagogues for the implementation of innovations. In the intercourse period, our institute, together with regional educational-methodical centers of vocational education and training and vocational schools, conducts scientific and practical seminars, Internet conferences, round tables, master classes, trainings for the exchange of pedagogical experience, and development of psychological and pedagogical competence of students.

An important place in improving the qualification of pedagogical staff at the vocational schools should take practical mastery of innovative pedagogical technologies of education and upbringing, both in the course and in intercourse periods.

The basis of the model development was a modular-competent approach, which allows to clearly define goals and content at all stages of the educational process and the corresponding forms and methods of professional development, to stimulate the innovative and creative activity of the students, to promote self-realization of the personality of teachers and masters of industrial training and to their develop leadership skills.

The result of training in the system of postgraduate pedagogical education is the dynamics of professional competence, which is expressed in the growth of knowledge, abilities, and skills, as well as of experience of self-development, creative activity, emotional-value relations and ideological-value orientation. The ability to learn means that the teacher himself determines the purpose of the activity, shows interest, organizes his work to achieve the result, selects the necessary knowledge, realizes his activity and strives to improve it and has the skills of self-control and self-esteem.

The experience of the Institute convinces us that the definition of readiness for innovation should be considered as a component of psychological and pedagogical competence, which combines motivational,

205

cognitive, operational and reflexive components that are significant for implementing innovations.

However, experience shows that it is impossible to provide the students with a large amount of material concerning innovative pedagogical technologies, as well as to promote the development of leadership skills of the teacher within one course. Therefore, we offer to the teachers of vocational schools to participate in the work of scientific and practical conferences, seminars, trainings, master classes, etc. both in the course and in the intercourse periods. These measures promote the development of the teacher's leadership skills and readiness for innovation.

Thus, as the prospects of further research work we see analysis of the conditions of development of the readiness of pedagogues of vocational schools for the innovative activity.

Conclusions. Among the main results of the study it is proposed to determine the following:

- the problem of readiness for innovative activity of a pedagogue of a vocational educational institution as a background for the development of his leadership skills was analyzed;

- the analysis of scientific researches and modern requirements to the level of professionalism of a pedagogue of the vocational school was carried out;

- the main essential characteristics of a pedagogue of the vocational school as a leader capable of professional development and ready for innovative activity are identified;

- the structure of qualities of a modern pedagogue of the vocational school, who is ready for innovative activity, is considered;

- a comparative analysis of personal qualities of a pedagogue of the vocational school, who is ready for innovative activity, and of the leadership skills of a person was conducted, which has allowed to highlight the leadership qualities of a modern teacher of the vocational school, who is ready for innovative activity;

- the structural-functional model of professional development of a master of industrial training in the system of continuous vocational education was presented.

206

3.5. PUBLIC ADMINISTRATION INCLUSIVE DEVELOPMENT OF ATC: SUPPORTING TOOLS UNDER THE CONDITIONS OF

SUSTAINABLE DEVELOPMENT1 The current system of public administration in Ukraine remains

generally ineffective. Therefore, the purpose of the administrative reform consists in a comprehensive reorganization of the existing system of public administration in Ukraine in all spheres of public life and in the development of some institutions of public administration, which Ukraine has not yet created as a sovereign state. In the latest conditions of economic development in the region a new subject arises, which changes the traditional economic landscape due to the transformation of agent-object relationship of the localities economy and the region as a whole, the growth of authority and responsibility regarding the use of economic potential of the territory.

This subject is determined by the formation and establishment of the amalgamations of territorial communities (ATC) as the key figure of public management and administration, the growth of their organizational and economic potential, marketing power and the emergence of a new type of local government, based on the community governance as an institution of public administration. There are 698 amalgamations of territorial communities in Ukraine, and as of January 2018, more than 6.0 million Ukrainians live there and more than 29% of the country's territory is covered by ATC. Over the 2017 year, the own revenues of 366 ATCs increased by 85% – up to UAH 7.5 billion2.

The purpose of the investigation is to identify the tools of public inclusive development at the level of the amalgamation of territorial communities under the conditions of sustainable development.

1 The authors of subsection: Gudz Petro, Doctor of Economics, Professor, Director of the Economics and Humanities Institute, Zaporozhye National Technical University, Zaporozhye, Ukraine; Pulina Tetyana, Doctor of Economics, Professor Head of the Management Department, Zaporozhye National Technical University, Zaporozhye, Ukraine 2 Офіційний сайт Урядовий портал. [Електронний ресурс]. – Режим доступу: https://www.kmu.gov.ua/ua/news/premyer-ministr-proponuye-likviduvati-dublyuvannya-funkcij-miscevih-rad-ta-administracij-i-onoviti-normativnu-bazu-iz-adminteritorialnogo-ustroyu.

207

The Institute of Public Administration, which is currently developing, is controversial both in essence of its theoretical concepts, and in content, i.e. the forms and methods of functioning. Despite the numerous scientific views on the conceptual-categorical apparatus with regard to public administration, we must proceed from the fundamental principles. Thus, the founder of the public administration theory Woodrow Wilson referred the division of administrative and political issues to the main principles of public administration, which considered as the practice of detailed and systematic application of law1.

The Management Process School of Henri Faiola is well-known from the history of management and is represented in the work “The Administrative Theory”, with the accentuation of fourteen basic administrating principles, by which he divided the administration into six groups of management operations: administrative, technical and technological, financial, commercial, accounting and security.

In the literature, public administration is presented as "actions by individuals with authority intended to increase prosperity, independence and security of both the population as a whole and an individual organization" and the six stages of the development of public administration have been distinguished until the appearance of global public administration features, which is the identification of the influencing factors and conceptual fundamental principles of public administration2. It is considered, that the modern model of public administration includes mechanisms for improving internal coordination, management of human, financial and material resources and communication and information systems, as well as management related to the provision of public (state and municipal) services3.

Foreign researchers, in particular, L. Keller distinguishes the following characteristics of the "new" public management: the transfer of authority powers and flexibility provision; guaranteed performance, monitoring and reporting relationship; the development of a business struggle, application 1 Вільсон В. Вивчення адміністрації / Вільсон В. // Американська політологія щоквартально. – 1887. – № 2 (2). – С. 212. 2 Остриков А.И. Методологические основы публичного управления / Остриков А.И. // Теория и практика современной науки. – 2016. – №5 (11). – С. 9-11. 3 Понкин И.В. Общая теория публичного управления: Правовые основы, цели, принципы, инструменты, модели и концепты публичного управления: Лекционный курс / Понкин И.В. – М.: Буки Веди, 2016. – С. 11.

208

of market mechanisms; the provision of necessary services to consumers, client centricity; the improvement of human resources management; the optimization of information technologies; the improvement of the legal regulation quality; application of management styles from the business sector range (large private corporations)1.

The problem of terminological discourse is particularly topical in the domestic literature. We agree, that the understanding of a new social purpose of public administration comes slowly and not always gradually, because it is not easy for public administration specialists, which have been developing the concepts of public administration and state policy for decades, to change to a reappraisal of the state role and place in the social relations system and the authority organization2. After all, as Adam Smith wrote, "When in the middle of a paradigm, it is difficult to imagine any other"3.

To our opinion, a general scientific approach that separates the essence and content of social phenomena and processes will help to avoid the misunderstandings of an essential nature. The essence of phenomena and processes is always manifested in dealings, relationships, interrelations. The content is manifested through the form, function and purpose. Based upon this concept, the essence of public administration is presented as a combination of relations between the authorities over the management of providing administrative, social and public services to citizens. The content of public administration is thought of as a process, executed by the key figures of public administration, that consists in managing the planning functions, organization, delegation, regulation, coordination and control in order to meet the needs of consumers.

Without claiming the completeness of this approach, we would like to note that the authorities in the system of public administration are the bodies of state power of all levels and bodies of local self-government of all levels, including newly formed entities – amalgamated territorial communities and their authorities together with the headmen, as well as 1 Келлер Л.Ф. Державне управління як менеджмент. Енциклопедія державного управління та державної політики. Друга редакція / Ред. Е. М. Берман, Я. Рабін. – Бока-Ратон (Флорида, США): Тейлор і Франсіс Груп, – 2008. – С. 1591. 2 Аврутин Ю.Е. Преодолимы ли парадоксы парадигм публичного управления в теории государственного управления и в административном праве / Аврутин Ю.Е. // Административное право и процесс. – 2016. – № 8. – С. 10. 3 Смит А. Сила ума / Смит А. // Random House. – 1975. – Р. 20.

209

those public organizations that, according to the statutory powers, direct their activities to the development and implementation of civil competencies, in particular, such communities as Chambers of Commerce and Industry, the Association of Industrialists and Entrepreneurs, Regional Development Agencies, civil social and environmental organizations, self-governing authorities, that solve the specific local problems of the area within short timeframes.

Professor I.V. Ponkin is among the supporters of the three-subjectivity of public administration, who also relates the concept of “public administration” with the implementation of public administration by non-state and non-municipal entities (“operators”), to which the state (state body) or local self-government body deliberately and limitedly delegates separate public authority on the established grounds and in the the established procedure1. It turns out to be that the forms of delegation of state and local self-government functions and powers to newly formed self-governing bodies of the grass-roots administration will be diversified together with the ATC Institute.

The interpretation of the notion of public administration key figures is close, but not identical to the subjects of authority, since for the implementation of functions of public administration at the stage of realization of strategies, programs, plans of spatial development, voluntary business structures can be involved, for example, for the landscape improvement, revitalization of industrial zones and buildings, participation in the development of communal infrastructure, etc. At the same time, we would like to mention that a certain discrepancy between subjectivity in the system of public administration, both in theory, law and practice, is solved, for example, in the form of a public-private partnership, which is a connecting link between the authorities and the participants in the development of the community.

The feature of the modern agenda is that, on the one hand, the world entered into an era of chaos and uncertainty, and on the other hand, the crisis is a coincident factor in the birth and the formation of a new one. The new public administration must be united with a new economy that must receive a sign of sustainability. In economic literature, the studies of a

1 Понкин И.В. Общая теория публичного управления: Правовые основы, цели, принципы, инструменты, модели и концепты публичного управления... – С. 12.

210

sustainable economy are presented mostly in the context of the implementation of the social, ecological and economic paradigm. We will take this as read, but we would like to draw attention to the original concepts of this theory.

The economic system is not self-sufficient. It is limited and, actually, is a subsystem of a more powerful system – the Earth ecology, which has a limited character both in terms of the resource potential and the ability of nature to self-reproduction of the resources used, and the economic pressure on natural systems and the range of human life, flora and fauna. This limitation determines the entropy of economic development.

Human with his thirst for profit growth forgets the legitimate needs and the natural right of other living beings to their own living space. Therefore, the problem of transition to a sustainable economy means the transition to such an arrangement of economic activity, in which economic growth is achieved through qualitative development factors – competencies, technologies, innovations, rather than by attracting new resources that are limited by natural ecosystems, which is the primary to the economic subsystem. Of course, business will not volunteer to take care of the solution to this problem. This is the task of public administration at different levels and administration, civil activists and action groups.

The report of the Club of Rome for 2017 refers to one of the scenarios for building a better world through a change in economic ideology: a reduction in the share of material production and the growth of the value of new economic activity types, such as environmental protection, resource efficiency, research, culture, care services1. Such a mechanism provides the basis for expanding the borders of inclusion, the diversification of the engagement forms of various social strata into active social and economic activity.

So, public administration is transformed by sustainable development at the local and regional levels of management in order to attract all interested groups of citizens to the development of an environmental life, which, unlike the exclusive character, should acquire inclusive characteristics. 1 Макстон. У пошуках добробуту. Керування економічним розвитком для зменшення безробіття, нерівності та змін клімату / Грем, Рандерс, Йорген. // К.: Пабулум, – 2017. – С. 150.

211

Nowadays, inclusion requires proper theoretical justification. This is a multidimensional problem, which covers several large-scale sections, layers. The very first problem is a philosophical, worldview, moral and ethical problem. Which economy did we create? It was discussed at the economic forum in Davos in January 2018 that this is a global economy that serves 1% of the population of the earth.

The report of Oxfam International refers to the fact that in 2016, 61 people had a total wealth equal to the wealth of half of the world's population – 3.6 billion, and by the beginning of 2018, 42 people had a total wealth, as half of humanity, which indicates the accelerated growth of inequality of wealth, its concentration, which may become an economic and financial basis for the absolute power of a small number of people over political and social systems of power, over all humanity1.

It is difficult to solve this problem only due to economic efforts, such as the use of economic potential. The administration of the incomes and wealth, because at the current level of inequality, the global economy should increase by 175 times before each person can earn $ 5 a day, which is irrealistic. These processes are generated not only globally and macroregionally, but also at the micro level, in the context of individual corporations. So, executives of large companies in America today earn 271 times more than a regular employee2.

The inclusive development was introduced in the economic circulation in 1998 and its current state is not optimistic in the national and regional dimensions. As a comparison, according to the index of inclusive development, Poland takes the 35th place in the following indicators among the 130 countries: growth and development; inclusion; equality between generations – sustainable management of natural and financial resources, when Ukraine takes the 79th place3. According to the World Economic Forum in Davos, over the last five years, despite the 1 The Inclusive Development Index 2018 Summary and Data Highlights. [Електронний ресурс]. – Режим доступу: http://www3.weforum.org/docs/WEF_Forum_IncGrwth-_2018.pdf; Нагородити роботу, а не багатство Oxfam International / січень 2018 р. 76 с. [Електронний ресурс]. – Режим доступу: https://www.oxfam.org/sites/-www.oxfam.org/files/file_attachments/bp-reward-work-not-wealth-220118en.pdf?cid=-aff_affwd_donate_id78888&awc5991_0a84322c20ef396277dc8ed070020d3e. 2 7 найпопулярніших запитань щодо нового звіту про нерівність Oxfam. [Електронний ресурс]. – Режим доступу: https://blogs.oxfam.org/en/blogs/18-01-23-top-7-questions-you-asked-about-new-oxfam-inequality-report. 3 The Inclusive Development Index 2018 Summary and Data Highlights…

212

growth of the global economy, the social inclusion level has shrunk to 20 out of 29 developed economies, and intergenerational equity has fallen to 56 out of 74 developing economies; over the same period, less than half of developed economies have succeeded in reducing poverty, and only eight have achieved a reduction in income inequalities1.

In the ordinary way, inclusiveness (from English Inclusive – Involved) is the modern interpretation of contemporary development, which essence lays in the need to increase the involvement of all segments of the population in addressing the problems of development, as well as the growth of involvement in the development of all territories2.

There is a serious interest in the subject of inclusive research in the foreign economic literature. Thus, N.I. Bogdan, S. Vahurst consider the content of economic growth on an inclusive basis in the context of process and outcome3, A.I. Novikov and I.K. Vitkina focus on political-economic and institutional aspects4, and I.E. Kalabikhina, A.E. Kalabikhina expand the subject of the study of the inclusive economy in the area of inclusive policy, inclusive practice and inclusive culture5. Such a divergent view of the inclusive economy suggests the formation of the methodological apparatus of research and the problems of the practical implementation of inclusiveness in the regional economic environment.

Outstanding economist Jeffrey Sachs believes that the violation of the equilibrium of extreme wealth and extreme poverty should be promoted by social justice in the direction of income and wealth inequality, which is

1 Ibid. 2 Федулова Л.І. Інклюзивні інновації в системі соціально-економічного розвитку / Федулова Л.І. // Економіка: реалії часу. Науковий журнал. – 2016. № 3 (25). – С. 57. 3 Богдан Н.И. Инновации для инклюзивного развития регионов Беларуси / Богдан Н.И., Вархурст С. // Економічний вісник університету. Збірник наукових праць вчених і аспірантів Переяслав-Хмельницького державного педагогічного університету ім. Григорія Сковорода. – 2014. – № 22/1. –С.15. 4 Новиков А.И. Инклюзивная экономика и социальная ответственность в регионах мира: дилемма или общественное согласие / Новиков А.И., Виткина И.К. // [Електронний ресурс]. – Режим доступу: https://eee-region.ru/article/5401. 5 Региональные аспекты развития инклюзивного образования в деятельности организаций – участников Национальной коалиции «Образование – право для всех» Ежегодный отчёт 2011-2012 гг. под ред. проф. Калабихиной И.Е., Калабихиной А.Е. М.: РООИ «Перспектива» – 2013. [Електронний ресурс]. – Режим доступу: http://www.kspu.ru/upload/documents/2015/09/28/a0344088092090-c269a9e607bd0c8fe4/otchet2011-2012aspekty-razvitiia-io-v-deiatelnosti-natcionalnoi-koalitciicopy.pdf

213

partly reflected in the "Agenda for Sustainable Development" 2030 Sustainable Development Goals of the UN 2030 Agenda1.

Analysts of the International Monetary Fund conclude that inclusive development should be achieved through the elementary increase in wages for poor and middle class workers through the redistribution of their own profits: yes, an increase in the share of poor and middle class incomes actually increases the growth, while the growing share of incomes in the rich is 20% will lead to a decline in growth, i.e. when the rich become richer, the benefits are not exhausted2.

Other researchers believe that tools for sustainable development through inclusiveness include the development of regulatory measures by the world community to regulate poverty and wealth through a mechanism for placement, distribution and scale based on basic ethical standards3. The problem of inequality is related to the distribution. The administration of fair distribution must be aimed at the level of well-being of all community members, and the degree of inequality should not exceed the size of the limited abundance. The key is the transition from unlimited to limited inequality, the development of the concept of inequality on the basis of the range, and not dispersion. We believe that the limitation of inequality is best facilitated by the establishment of maximum and minimum income levels4, since a person can not dine twice a day, and being an investor, must remember the Buddhist hypothesis: “Cut down the forest of your greed before cutting real trees”.

Modern scholars suggest turning to the Bible, finding answers to questions about the regulation of inequality, which is objective. First, in the ancient Israel the regulation of inequality was established through a fair initial distribution of property, rights, land in the amount of wealth and the time of its accumulation – no more than 50 years, when the fiftieth year of 1 The 2030 Agenda for Sustainable Development. [Електронний ресурс]. – Режим доступу: https://unstats.un.org/sdgs/-files/report/2018/TheSustainableDevelopment-GoalsReport2018.pdf. 2 Ера Дабла-Норріс, Калпана Кохар, Франтишек Річка, Нужин Супхапіхат та Евридикі Цонна (з доповідями Прейи Шарми та Вероніки Салінс). Причини та наслідки нерівності доходів: глобальна перспектива. Міжнародний Валютний Фонд. Червень 2015 рр. 38 р. 3 Дейлі, Герман. Поза зростанням. Економічна теорія сталого розвитку. [Пер. з англ. Дейлі, Герман] / Дейлі, Герман. Інститут сталого розвитку. – К.:Інтелсфера, 2002. – С. 265-267. 4 Ibid. – Р.252.

214

activity was the time to return to the initial distribution, i.e. all the fortunes and the ranks of people were reset. Secondly, there were accepted the conditions for observance of the basic laws – conscientiousness, the zero interest rate, the maintenance of land for couples every seven years, the observance of the minimum rights of the poor, the payment of church tithing, etc.1.

The inclusion in the economy of formally reduced to the involvement of all segments of the population, including the disabled with a desire and ability to keep themselves on the criterion of self-sufficiency, and to receipiency of their own income – this is a state of full employment economy.

In the domestic economic literature, the tools of inclusive development are mostly reduced to the access of community members, which do not possess full rights, to the educational services. Although the most important areas of inclusive development are all human life spheres, as Dnipropetrovsk oblast state administration demonstrated: economy, leisure and recreation, sports development, manifested in the creation of a modern sports and entertainment ground for children with physical disabilities and musculoskeletal disorders with educational, economic, sports, creative platforms, etc.2.

The problem of transition to local inclusive development requires the decision of the quality of public and local administration. It is considered that in the Ukrainian realities, as the competences, powers and responsibilities of the united territorial communities (UTC) increase, their role as an initiator and coordinator of local economic development and the social resources and capital attraction to integrated economic development will grow. It is associated with content of the inclusive economy among the vast majority of researchers. For example, a modern biotechnological vocational school Radovel has been built in the village of Radovel, Olevsky district of Zhytomyr region thanks to the private investments of Mykhailo Veselsky and the initiatives of local residents. It is a completely new educational space for students, parents, teachers and the

1 Ibid. – Р.245. 2 Перший в Україні інклюзивний парк. 27.06.2018. 27 червня 2018 р. [Електронний ресурс]. – Режим доступу: https://adm.dp.gov.ua/ua/projects/pershij-v-ukrayini-inklyuzivnij-park

215

community as a whole on the principles of comfort, safety, energy efficiency and modern motivational design.

Studying is seamlessly connected with modern realities. The building has teaching classes and workshops are equipped with modern technology and information means, multifunctional assembly hall, conditions for disabled people, modern standards of energy efficiency and municipal engineering infrastructure of the school's autonomous activity.

There is a complete thermal sensation (replacement of the roof, windows and doors to save energy), heating (each floor is separately heated), ventilation, insulation of the foundation (by facing stones), electricity network replacement, sanitary facilities and quipped shower cabins and major overhaul of all school premises. All classes, a sports hall, an assembly hall, a workshop, a pottery workshop, a class of dancing and wrestling are equipped with modern furniture from Germany.

Most classrooms are equipped with computers and interactive panels. Also there were constructed treatment facilities and carried out an accomplishment of 4,805 square meters’ territory. The accommodation for teachers who will work in the vocational school, ambulance, sports infrastructure, etc., has already been built in Radovel1.

Investigating inclusive development in domestic conditions, L. Fedulova as the most well-known form of directions of inclusive innovation determines the Centres of Collective Internet Access with trainings for improving computer knowledge and language skills; support for mass-scale small business and innovative entrepreneurship, developing non-technological innovations (in particular, microfinancing); effective assistance to unemployed citizens in finding workplace with the help of information and communications technologies (including small innovative enterprises); increasing the availability of public services (including for vulnerable groups of citizens); subsidizing mobile communications and broadband Internet in depressed regions and so on2.

The applied aspect of the research requires searching for answers to the essence of the inclusive economy. Internal content is the achievement 1 Офіційний сайт Урядовий портал. Геннадій Зубко відкрив інноваційний Біотехнологічний ліцей «Радовель». [Електронний ресурс]. – Режим доступу: https://www.kmu.gov.ua/ua/news/gennadij-zubko-vidkriv-innovacijnij-biotehnologichnij-licej-radovel 20 2 Федулова Л.І. Інклюзивні інновації в системі соціально-економічного розвитку... – С. 58.

216

of a state of a full employment economy, when all segments of the community are attracted to the local and household economy. That is, not only employable, but also schoolchildren (for the summer vacations period), pensioners, disabled people in environments with an architectural, transport (infrastructure), social benefits, aimed not to economic growing, but to improving the quality of life. The internal content of inclusiveness lies in the involvement of all territories, conditions and resources (space) of the community and region in the production and affording services. The external content of the inclusive economy implies the usage of environment factors, which in general is identified with the components of economic growth.

Local economic development, activation of business activity and revival of the local market, institutional and integration support will act as objects of local administrations influence (Fig. 1). The new role of public administration and administration in the economic dimension of the united territorial community is aimed at creating a new configuration of productive forces and industrial relations, an optimal combination of local resources, and the coherence of economic interests of the subjects of local economic development.

Fig. 1. Influence of public administration on economic development of

united territorial community

217

The following specific tools for administering local economic development within the authority of the UTC officials can be distinguished as:

development of local economic space, resources and growth factors; the restoration of traditional craftsmanship and the establishment of

new manufactures, development of local producers’ proposals from local raw materials, establishing of investment platforms for attracting business to the

implementation of priority areas for the community business activities, microbanking of strategic and socially important types of small and

medium-sized businesses for the community. For example, for the development of a rural economic space, the

European Commission proposes a comprehensive approach to rural development using tools and influence mechanisms through diversification of employment, infrastructure development, and the social capital development through new knowledge and skills1.

It is the financial resource that is the most important criterion for ensuring the sustainable development of territorial communities and a positive impact on the formation of an economic regional space. The national rating is not only an integrated indicator of economic development of the communities but can also be used by investors, regional business, as well as a united territorial community for making decisions on the unification of the communities of the UTC in the near future, as the process of becoming viable and capable communities will continue even after the full coverage of all the village and settlement councils of the country and the region with this movement of decentralization (Table 1).

Under the analysis of the data in Table 1, it is clear that low financial sufficiency indicators of UTCs are predominantly characteristic of small communities, with the exception of communities with large industrial enterprises or budget-making enterprises. For example, the Botiivska wind power plant, which is a part of the top 5 largest wind power stations in

1 Ткачук А. Нові підходи розвитку сільських територій в умовах децентралізації та змін у державній регіональній політиці / Ткачук А. // [Електронний ресурс]. – Режим доступу:https://www.csi.org.ua/articles/novi-pidhody-rozvytku-silskyh-terytorij-v-umovah-detsentralizatsiyi-ta-zmin-u-derzhavnij-regionalnij-politytsi.

218

Central and Eastern Europe, is located at Botiivska united territorial community and has 65 turbines and a capacity of 200 MW.

Table 1 Assessment of financial sufficiency of UTCs in Zaporozhzhia region in

20171

Regi

onal

ratin

g

The name of the UTC

Area

of U

TC (k

m2)

Popu

latio

n at

01.

01.2

016

(tho

usan

d pe

ople

)

Own

reve

nues

per

1

inha

bita

nt (U

AH p

er p

er

head

)

The

leve

l of s

ubsi

dize

d bu

dget

s (th

e pe

rcen

tage

of

bas

ic /

reve

rse

gran

t in

inco

me)

(%)

Capi

tal e

xpen

ditu

res p

er

one

inha

bita

nt (w

ithou

t su

bven

tions

from

the

stat

e bu

dget

) (UA

H p

er

head

) Th

e pe

rcen

tage

of

expe

nditu

res o

n th

e ad

min

istr

ativ

e ap

para

tus

in it

s ow

n re

sour

ces

(with

out t

rans

f.) (%

) N

atio

nal r

atin

g

1 Dolynska 170.0 5.9 4866,1 0,2 3025,6 15,8 17 2 Smyrnovska 317.6 3.4 5092,0 -3,7% 3358,5 19,4 19 3 Berestivska 498.2 4.8 3570,8 4,8 2897,3 22,3 64 4 Kamyshshch-

Zorianska 376.2 6.5 3461,4 2,6 1879,7 22,7 72

5 Botiivska 138.6 2.2 3773,1 3,2 2753,5 28,2 79 6 Osypenkivska 419.6 7.8 3243,3 5,1 1184,9 16,6 98 7 Prymorska 234.0 14.7 3366,0 2,7 818,6 8,9 103 8 Ostrykivska 267.6 2.9 3621,1 8,2 2301,0 26,0 106 9 Hirsivska 271.6 2.1 4680,2 7,2 1804,4 29,8 112

10 Veselivska 438.3 12.9 3160,6 7,2 1227,1 18,3 114 11 Malotokma-

chanska 172.0 3.2 3092,8 5,5 1327,6 22,3 132

12 Bilenkivska 363.0 10.0 2346,3 14,2 3608,7 25,3 157 13 Voskresenska 264.7 5.7 2952,4 6,9 1466,3 28,9 160 14 Tavriiska 184.3 4.5 2276,1 15,0 1461,1 24,5 200 15 Preobrazhenska 367.2 5.7 2914,1 11,3 2028,4 45,9 203 16 Komyshuvaska 393.1 13.2 1859,8 21,8 1051,8 24,3 257

1 Казюк Я. Оцінка фінансової спроможності 366 об’єднаних територіальних громад за 2017 рік / Казюк Я., Венцель В., Демиденко С., Герасимчук І.// [Електронний ресурс]. – Режим доступу: https://decentralization.gov.ua/uploads/library-/file/177/%D0%91%D1%83%D0%BA%D0%BB%D0%B5%D1%82_%D0%A0%D0%B5%D0%B9%D1%82%D0%B8%D0%BD%D0%B3_%D1%84%D1%96%D0%BD._%D1%81%D0%BF%D1%80%D0%BE%D0%BC_366_%D0%9E%D0%A2%D0%93_%D0%B7%D0%B0_2017.pdf.

219

From the analysis it turns out that there is a direct correlation between dependence of indicators on the size of the community and its financial sufficiency. There are higher development of human potential, greater opportunities for local economic development through the involvement of households, family businesses, cooperatives, private firms for business organization, powerful demand for products and services of the local market. In this way, the effect of the scale of production works, which means the production scale effect is triggered, and, therefore, the prerequisites for providing better administrative, public, communal, management services.

The analysis of the financial sufficiency of communities in the Zaporizhzhia region in the Table 1 shows confirms the conclusion that successful communities are those that meet the criteria: the population must be more than 5 thousand; the percentage of the basic grant is not more than 10% of the sum of own revenues; expenses for the maintenance of the administrative apparatus are not more than 20% of the volume of the own resource of the community.

The methods of institutional support for the economic development of UTC are:

development of public organizations and associations of active citizens in the economic sphere (households, inclusive economy);

launch of new public utilities, business institutes in the field of production, distribution, exchange and consumption, advisory associations and consulting agencies, regional expert centers, municipal project promotion, development of credit unions;

Regional and local diversity creates prerequisites for regional investment based on the competitive advantages of natural resources and conditions localization, the quality of the economic environment, infrastructure support, and the mobility of labor. It is true that the researchers state that in modern conditions the harmonious development of regions implies the presence of their inclusive development in the presence of equal access to resources, participation of regions, and participation of local communities1. The role of administration in attracting domestic and external factors of local economic development, including the 1 Крюков В. А. Современный подход к разработке и выбору стратегических альтернатив развития ресурсных регионов. / Крюков В. А., Севастьянова А. Е., Токарев А. Н., Шмат В. В. // Экономика региона. – 2017. Т. 13, вып. 1. – С. 100.

220

professional competencies of the leaders of local government, is growing in the conditions expanding of the powers of territorial communities and providing them with resources for financial sufficiency1.

A similar systemic approach to the development of inclusiveness in the region increases the need for an interconnected set of means and steps in the field of public management and administration. At the same time, the regional level of management must play an important role in the formation and development of innovative processes. Indeed, along with technological innovations, managerial, organizational and marketing innovations are gaining special significance, that is, those methods that are called innovative, since they incorporate the mechanisms of institutional and infrastructural support of the innovations life cycle. So, institutional reforms, political competencies of officials of the united territorial communities and regional authorities come to the forefront. The access to the national and international funds levels with those inclusive projects in the economy and social sphere is a factor in promoting the innovative development of the region.

To solve the problems of inclusive development, regional authorities together with local self-government should promote inclusion development taking into account territorial peculiarities by adoption of local regulations aimed at social and moral treatment of disabled people and providing them with working and recreational conditions, accessibility of administrative and social services. As the Polish scientist rightly points out, «The concept of inclusive development is aimed at creating opportunities for all community residents to find employment, arrange free time, ensure proper social and environmental safety, health care, develop the spiritual sphere of the individual, integrate citizens into the social development of the «small homeland»»2.

The handicap of the deployment of administrative-territorial reform and the development of public administration is the poor quality of managers and apparatus of UTC. The strategic goal of the state personnel 1 Гудзь П.В. Удосконалення адміністрування ОТГ на основі компетентісної складової / Гудзь П.В. // Матеріали X Ювілейної Міжнародної науково-практичної конференції «Європейський вектор модернізації економіки: креативність, прозорість та сталий розвиток». Тези доп. Ч. 3. Харків: ХНУБА, 2018. – С.32-33. 2 Войцех Косидовський. Комплексна концепція розвитку та її впровадження у Центральній та Східній Європі / Косидовський В. // Щорічник Центрального та Східноєвропейського інституту. Рік 14 (2016). – № 5. – С. 78-79.

221

policy is to create human resources as the most important intellectual and professional resource of society. The state demand for retraining and advanced training of UTC leaders is one of the forms of implementation of state policy during the period of decentralization. The relevance of the study is due, firstly, to the new requirements for specialists in the field of public administration, and secondly, the public need for effective approaches to learning.

Researches devoted to the topic of public administration effectiveness in Ukraine are being actively conducted, in connection with the relevance of the topic. In the course of this study, attention was drawn to the work and conclusions of scientists, researchers and scientists, among them: B. D. Gavrilyshyn, J. Garcia, E. A. Kolesnikova, O. L. Moloshna, J. Chandler.

According to Article 38 of the Constitution of Ukraine1, citizens enjoy the equal right of access to the civil service and to service in bodies of local self-government. However, today the general state of staffing of territorial authorities in Ukraine is classified as unsatisfactory2. According to scientists dealing with the problems of personnel provision of local self-government bodies, officials of executive bodies of local self-government do not have a prospect of long-term and sustainable development:

the growth rate of nominal and real wages is significantly behind the growth of inflation;

the dependence of staff turnover on political influences increases, which does not give confidence in gradual growth;

the level of their education, as well as the process of professional development are actually uncontrolled by the state;

professional development is non-systematic and, as a result of staff turnover surges in the years of local elections, does not allow to significantly increase the number of officials who have advanced their qualifications3. 1 Конституція України. – К.: Алерта, 2017. – 80 с. 2 Михалевська Л. Б. Кадровий потенціал органів державної влади як об’єкт наукових досліджень / Михалевська Л. Б. // Теорія та практика державного управління і місцевого самоврядування. – 2015. – № 1. [Електронний ресурс]. – Режим доступу: http://nbuv.gov.ua/UJRN/Ttpdu_2015_1_5. 3 Охріменко, І. М. Проблематика кадрового забезпечення в системі органів державної влади та місцевого самоврядування. /Охріменко, І. М., Лепетуха, Я. В. // Модернізація правових інститутів: вимоги часу: збірник матеріалів Міжнародної юридичної науково-практичної конференції «Актуальна юриспруденція». – К.: Видавничий дім «АртЕк», 2016. – С.88-91.

222

The lack of proper staffing of local self-government bodies of the united territorial communities is observed due to the prism of the lack of competence of local government officials for the implementation of new functions. This is the basis for inefficient use of financial resources of territorial communities. The preparation of high-quality investment projects is an insoluble task in the strategic planning and community development program, therefore, the period of receiving state support funds and international aid funds is postponed for the further development of UTC1.

The normative documents on the personnel service determine the scope of requirements for new types of state employees, in particular, adherence to principles, determination and demanding compliance with the current legislation of Ukraine; initiative, personal courtesy, tact, endurance, etc.2. Typical professional qualifications of local government officials are one of the basic standards of the executive bodies service system in local self-government and, in particular, the personnel management system.

The analysis of literature suggests that a significant number of territorial communities, although empowered to resolve issues of local importance, but unfortunately, cannot fully realize this right not so much because of the lack of funds and the lack of appropriate infrastructure, but because of the lack of professionalism of local government officials or even due to the lack of necessary qualified personnel.

Such a state of business exists even with the availability of supply of necessary skilled workers of the local self-government agency mechanism in the legal system due to acquirement of new competence by them.

Solution to a question of ATC managers’ learning experience lays at a plane of methodological and consultative assistance on the part of executive branch authorities, where the Nation state acts as a coordinator of the learning activity in a region; guarantees participation in the learning control procedure of customers and learning service members:

Future expert (ATC manager), which is learning; 1 Іванова І. В. Професіоналізація менеджменту / Іванова І. В. // монографія. – К.: НТЕУ, 2006. – С. 68-69. 2 Постанова Кабінету Міністрів України «Про затвердження Положення про систему підготовки, перепідготовки та підвищення кваліфікації державних службовців і посадових осіб місцевого самоврядування» (від 7 лип. 2010 р. № 564). Урядовий кур'єр, 2010. № 30, 4 серпня.

223

educational institution that realizes training program; local self-government agency that is interested in the acquirement of a

qualified, competent specialist what increases efficiency of this system. Therefore, it will provide a background for creation of new formula:

education is a new quality of a civil servant of the local self-goverment. Another E-platform appliance in the learning procedure enables to

mark it as a powerful outsourcing asset, which may be used successfully in order to develop the competence of civil servants of the local self-government, public employees and civil society institution members. In 2015, the practice of regional E-courses (with support from CSPC) was launched with an extremely successful and effective E-course with regard to creation procedures of ARCs. The name of this course is “The reforming of the local government and decentralisation of power”. 684 people in Dnipropetrovsk region finished it. The next course was “Projects are instruments for the development of the Dnipropetrovsk Amalgamation of territorial communities”: 127 exponents of newly formed ATCs finished the course successfully and prepared project proposals for its budgeting on the part of the Regional growth government fund. The E-course “The reforming of the local government and decentralisation of power” was implemented for Zaporozhye region either – 276 participants1.

At a plane of the platform Prometeus, which is an on-line base for taking courses today, a training course “Decentralization in Ukraine. The theory and practice” was presented with support from the Swiss-Ukrainian project “Decentralization Support in Ukraine – DESPRO”, funded by the Swiss Agency for Development and Cooperation (SDC). The program is a short and informative product in which the data of study, draft laws in the field of decentralization are systematized.

In an effort to professional development and work improvement, a civil servant is to acquire a list of scientific managing approaches, modern solutions of management decision making, which afford an opportunity to use professional knowledge, taking into account external and internal environment, social needs of public for which she/he caters. Essentially the usage of the competence approach for formation, development and 1 Аналіз ситуації щодо професійної підготовки, перепідготовки та підвищення кваліфікації державних службовців і посадових осіб органів місцевого самоврядування в Україні. Інформаційно-аналітичний звіт. – К.: Проект «Проміс», 2017. – С. 15.

224

improvement of the civil servants’ professionality is intended to the end effect – the modern specialist’s formation, which is able to use personal possibilities for successful professional activities. Therefore I see following ways of solutions of mentioned problems, which are presented in Table 2.

Table 2 Ways to improve the quality management of personnel training in the field

of public administration during the period of decentralization

№ Items The most important competences,

which civil servants have to acquire during these items

1 In-service education of present personnel – civil servants of local government in order to improve their occupational attainment by means of constant development and improvement of relevant in-service education programs by higher educational establishments. These programs are focused on examination of issues that are related to obtained powers by the local government agencies during decentralization and issues in regards to functioning of the ATC local government agencies

Legislative environment of public service provides for demands of the civils’ competences development for public employees and civil servants of the local government, particulary Clauses 4, 5, 8, 9 of Section 4 of Act Of Ukraine “On government service” (10.12.2015) appoint government service foundations: nationality, integrity, political neutrality, trancperency. Professional activities need public spirit for a public employee. This quality is unattainable apart from positive responsibility like achievement of steady balance, rational harmony, national, public personal activities, resist particulative values during public service, reasonably instrumentalizing etical and moral knowledge.

2 participation on vacancies in the local government agencies of youth from united communes with corresponding professional education, which is able to increase efficiency of local government due to introduction in the agency action newest knowledge

3 Work strengthening towards specialist training proximately for the local government agencies, namely development purposeful education for bodies, which will return to the appropriate commune acquiring adequate educational experience and will be attracted to service in local government agencies.

In order to improve the quality management of personnel training in

the field of public administration in the ATC system in Zaporozhye region during decentralization stage it may be suggested an instrument for advanced training due to extension of the ATC civil servants’ competence.

Amalgamation of territorial communities act controls legal arrangement, which arises in the course of free-will association of communities, villages, small towns, cities as well as free-will amalgamation

225

with territorial communities. A dilemma of incompetence of the competent level of ATC leaders and their increasing power, responsibility, task complexity of their chiefs has emerged1.

For instance, for increasing financial assurance of territorial communes Government worked a mechanism of cession of ATC lands beyond the boundaries of population centers: procedure of lands cession has to end up in 2018 with a plan of cession of 50-70 ATC lands monthly, that requires the newest competence2.

Another example. ATC of Vesele in Zaporozhye region is a leader of successful administrative-territorial reforming. It has worked more than 60 international projects since last two years, attracting more than 3 million euros for community development, working with almost two dozens of exponents of international supplier that keep up to date the need of new competence and vacancies – particular Minister of Foreign Affairs or Chancellor for External Relations.

The main component of the efficiency of state and municipal management is staff assistance, which is prepared mechanism of the personnel development system and focused on in-service education of public employees and civil servants of local government. Therefore, it is expedient to emanate from distinct foundations and provisions of effective, scientifically-reasoned, municipal, personnel policy for organization of target preparation of future local government chiefs and specialists. After all, incompetent personnel solutions have a negative impact on the whole social state, and first and foremost it leads to distrust in government by population.

One of the way of solving these problems of commune activity and promotion of their elimination is a capacity building mechanism of ATC managerial personnel, particulary with the help of Institution of Further Training, Institution of Advanced Training, online learning tools, succession pipeline at places for newly-formed ATCs.

1 Громадянські компетентності у професійній освіті державних службовців та посадових осіб місцевого самоврядування: Збірник методичних матеріалів для системи підготовки, перепідготовки та підвищення кваліфікації державних службовців і посадових осіб місцевого самоврядування / [за заг. ред. Н. Г. Протасової, Ю. О. Молчанової]. – К. : НАДУ, 2016. – С.148-162. 2 Уряд передав землю поза межами населених пунктів ще шести об’єднаним громадам. [Електронний ресурс]. – Режим доступу: http://decentralization.gov.ua/-news/8537.

226

Nowadays it is observed a wide gap between university educational product and amenities in regards to qualified and competent specialists. Thus, in the system of public managing and administration there is an urgent need to create a system of training for local self-government. However, in order to be the head of a community it is not enough to be a good person, you need to have the proper education, qualification, special knowledge and skills, since such an official never managed, but, in accordance with the Law on Local Self-Government, he is the highest official of local self-government, besides, he performs a part of the functions delegated by the state and is vertically subordinate to the state administration.

Therefore, there is a positive experience of the Donetsk National University in cooperation with the Vinnytsia Regional State Administration and international funds that developed and implemented a three-month program of filling vacancies in state authorities at the regional level by creating a "School of a Young Official", the peculiarities of which are the following concepts:

1. The purpose is to create a personnel reserve among the youth and specialists of the city for work in public administration and local government.

2. Items – university personnel and material, technical, information, resourses.

3. Program – out of the total volume of training courses 80% proposed by officials, 20% proposed by the university.

4. Techniques are conventional and play, based on the materials and tasks of the relevant subsections of the relevant authorities.

5. Organization of training and practice – weekly one day in the audience, two days of probation in the subsections of public authorities.

6. Entry – competitive selection according to the results of testing and interviewing people with higher education

7. Funds are taken partly from the budget of the region, partly at the expense of the grant.

8. Duration is 3 months. 9. When enrolling in competitive positions graduates are given an

advantage. It is obvious that a similar format of short-term training of specialists

in the lower and middle level is productive, competitive, since it allows

227

combining theory and practice and prepares a full-fledged municipal employee-offical.

To implement ways of improving the quality management of personnel training in the field of public administration in the period of decentralization, it is necessary to use the mechanisms of legal regulation for the development of staff assistance for putting in place the reform and the further functioning of local self-government agencies, which are presented in Table. 3.

Table 3 Mechanisms of legal regulation for the development of staff assistance

№ Mechanisms of regulation Purpose 1 Pass the act «On Service in local self-

government agencies» taking into account suggestions of President of Ukraine.

Determination of legal status of civil servants, conditions and procedures for citizens to exercise their right to serve in local self-government agencies.

2 Addressing the issue of legislative regulation harsher punishment of local self-government agencies and civil servants for adoption and implementation of managerial decisions

Local development and correspondence of these decisions with the legislation of Ukraine, as well as high-quality delivery of administrative services to the population.

3 Introduction of training programs at the state level for civil servants.

Local counselors government in particular, on issues of effective governance, strengthening of the material and financial basis.

4 Introduce mechanisms for involving the public in making important management decisions with local self-government agencies

To determine the strategy of development of the territorial community, approval of territorial communities status, urban design documentation etc.

On the basis of all the above-stated I suppose, that the implementation

of the proposed ways and mechanisms of providing the united territorial communities with the necessary highly skilled specialists will contribute to the formation of self-sufficient and powerful communities that can effectively tackle local issues through the use of the human resources potential of self-government as a resource of the territorial community.

Therewith it is worth noting that, a slowdown of economy inclusive development on local and regional levels is weakness and insufficiency of the statutory and regulatory legislation component, lack of regional financial and tax policy – peculiar signals, significant financial mechanisms for attracting deficient residents of communities to the economic activity, appropriate stimulation of employers for the employment of temporarily

228

incapable of work people and disabled, creation of conditions for training and recreation of citizens with special needs

Conclusions. Summarizing the research, it is worth to note, that the essence of public administration is presented as a set of relations between the subjects of authoritative powers with regards to the management of the process of providing administrative, social and public services to citizens. The content of public administration is understood as a process by actors of public administration of the functions of planning, organization, delegation, regulation, coordination and control to meet the needs of consumers. The reasonable three-subjectivity of public administration is state authorities, local self-government agencies, public organizations based on community development.

It has been proved that by influencing the development of an inclusive economy in the local and regional environment, public administration is able to build centers of the fair economy based on local resources, human potential and attracted investments. It has been established that the inclusive economy is a system based on a large number of sovereign and full fledged members, which are united in a greater degree by partnerships and conscious participation, rather than hierarchy and subordination, as it happens to be in the business environment. Local inclusive development within ATC means not only involvement in the formation and achievement of the result of all members of the community, but also a sense of responsibility for this result. It appears from this that the focus of the modern understanding of inclusive development lays in the slow rate of economic growth, and more investment in the human welfare, including future generations, in the public management of ecosystem services, which affects the living standards.

The tools of public management by means of inclusive development at the level of the united territorial communities in the conditions of sustainable growth are defined, namely: administrative – through the mechanism of arrangement, distribution and scale of community’s total income in terms of on basic ethical standards; economical – support for massive small business and innovative ventures, employment diversification, infrastructure development, social capital development, social – increasing access to public services; educational – development of the professional competencies of the local government leaders, access to a dual education system, informational support of services, etc.

229

SECTION 4

INTERNATIONAL EXPERIENCE AND COOPERATION PROSPECTS

FOR SUSTAINABLE DEVELOPMENT

230

4.1. THE INTRODUCTION OF PUBLIC ADMINISTRATION TOOLS IN THE COUNTRIES OF THE EUROPEAN UNION AND

THEIR IMPLEMENTATION IN UKRAINE1 The transition of Ukraine to sustainable socio-economic development,

its integration into the European and world community requires the introduction of modern practices of interaction of the state and society, which would allow to strengthen the mutual responsibility of all participants in public life, create conditions for further stable development of the country, based on the widest possible range of interests.

The issue of improving the system of local public authorities in Ukraine has long been at the center of attention of both local government and public authorities, as well as academics and experts.

Without reforms of the local self-government bodies, the implementation of the processes of financial decentralization is impossible for the sustainable development of Ukrainian society.

The stated problems are at the center of attention of Ukrainian scholars such as: O. Baatanov, T. Baranovska, P. Bilchuk, V. Bordenyuk, A. Buchinskaya, V. Yevdokimenko, M. Zgurovsky, T. Mamatova, D. Oliynyk, O. Olshansky, S. Romanyuk, D. Sukchenko, A. Tkachuk, A. Chechel and others.

European integration is a complex process that affects almost all spheres of public life and the national economy. For Ukraine, European integration is primarily due to internal reforms: adaptation of Ukrainian legislation to EU legislation, implementation of European values, reformation of institutions, transition to European standards, norms and procedures.

The European Union has always focussed on institutional development, for example, the establishment of the European Institute of Public Administration (EIPA) in 1981; their support for the establishing of a European Public Administration Network (EPAN), which is an informal association of civil servants from all EU Member States, launched with the aim of enabling professionals from public administration to share experiences and knowledge; establishing and maintaining in 2003 the

1 The author of subsection: Nykolaieva Valentyna, PhD in Pedagogical Sciences, Associate Professor of the Department of Sociology Management, Donetsk State University of Management, Mariupol, Ukraine

231

EUPAN website to enhance the cooperation of the EPAN network and set up its internal and external communications1.

Therefore, with the expansion of spheres of European integration and deepening of the processes, there was an increase of cooperation in the field of public administration: exchange of experiences, search for new mechanisms and tools of public administration, synthesis of management practices, form standards of public administration and civil service.

Issues of institutional development in the late 1990s and early 2000s were given particular attention due to the preparations for the 2004 enlargement. For the EU authorities, all member states needed to learn to work in the new conditions of the enlarged EU without losing the intensity of cooperation.

In addition, it turned out that the candidate countries from Central Europe were so different from the EU member states that preparation to EU membership required special measures and programs. For the first time in the history of the European Union's existence for the countries that were seeking to join the EU membership have been formulated the criteria, known as the Copenhagen and Madrid criteria, which included, inter alia, the creation and development of institutions necessary for the existence of effective democracy and building up their administrative capacities.

Reforming the public administration system has become a component of preparation for European integration. This is evidenced by the experience of the countries of Central and Eastern Europe that joined the EU during the last enlargement. Their preparation for accession to the EU was accompanied by a special focus on institutional development and administrative capacity, as evidenced, for example, by the introduction of the SIGMA Programme and the number of publications prepared within it2. The action plan for the preparation of candidate countries for EU membership necessarily included a Plan for reforming the system of public administration and its institutional development.

Thus, today the European Union has accumulated extensive experience in reforming and improving public administration and civil service. Acquisitions in the field of public administration and public services are predominantly "soft" standards – White Papers and 1 European Public Administration Network. URL: http://www.eupan.org/ 2 Support for Improvement in Governance and Management by The Organization for Economic Cooperation and Development and European Union. URL: www.sigmaweb.org

232

Communications of the European Commission, recommendations of conferences of ministers responsible for public administration and / or heads of departments of public services; it is generalised in the form of principles and requirements for the organisation of public administration in numerous publications and studies that appeared on the eve of enlargement. Among the most important developments: the definition of European principles of public administration and the principles of European administrative law; introduction and definition of "European administrative space." The concept of European governance is becoming universally accepted in the European Union – a multi-tiered management system, consisting of European institutions and national authorities, covers local government and civil society, involving decision-making processes of international experts and lobbyists. The term "Europeanisation” which in relation to public administration means the borrowing of experience and the introduction of better management practices of EU or other Member States in national systems of public administration, adaptation of national procedures, norms and rules of the EU.

This domain must be used and implemented by a country that intends to integrate into the European Union, regardless of whether it is a full EU membership or an enhanced / deepened cooperation, since Europeanisation is mandatory for any country that chooses the path of European integration. Accordingly, for Ukraine, the Europeanisation of its public administration system, preparation for joining the European administrative space should also become mandatory. Europeanisation should be preceded by a study and synthesis of the EU's experience of institutional development and administrative capacity building, which is provided by this research.

The administrative reforms that have taken place in each central and eastern European country in the process of preparing for EU membership have been aimed at improving the three key interdependent components of the public administration system:

1) Institutions; 2) The rules and procedures governing their internal work, and the

processes and mechanisms for coordinating their cooperation; 3) Personnel provision (preparation of civil servants with the

appropriate level of qualification, and an increase of their administrative capacity).

233

Procedures and processes do not exist separately from institutions, and the capacity efficiency of a public administration system in general depend on staffing – the implementation of rules and procedures, process coordinators, their capacity for advanced training, and administrative capacity building. To be successful, the reform of the public administration system in Ukraine should cover all three components.

For the European community, dimensions of democracy, efficiency, and measurement of effectiveness in assessing the level of public administration have always been important. The measure of democracy is determined on the basis of the generally accepted features of democracy in the West: the separation of powers and the observance of fundamental rights (civil, political, economic, social, cultural, as well as minority rights).

The measurement of effectiveness relates to how effectively functions are allocated and the responsibilities of different branches of government, and in particular executive agencies, are outlined; or rationally distributed responsibilities between the central, regional and local levels; Whether there is a duplication of functions or, conversely, gaps in their distribution, as a result of which certain functions and services fall out of sight of government agencies; Whether the existing institutional system ensures their horizontal and vertical cooperation and allows them to respond quickly to the needs and challenges of European integration.

Measurement of effectiveness is related to the results of the activities of individual state institutions. The object of the study is implementing programs and government obligations to partners, achieving goals of individual government agencies, public satisfaction and ensure customer needs of the certain government agencies.

The introduction of the concept of the European administrative space is closely linked to the preparation of Central and Eastern Europe countries for the EU membership, namely the lack of appropriate institutions in these countries to ensure compliance with the Copenhagen criteria and / or the low level of institutional and administrative capacity of existing institutions. Thus, candidate countries needed guidance during administrative, political, legal, judicial reform, during the reform of civil service, management systems or management of civil service.

These are, for example, the European principles of public administration:

234

- openness and transparency; - active participation of citizens; - accountability; - performance; - consistency; Unified standards and procedures: - guarantee of access to government documents; - mandatory public consultations on the eve of a government decision; - uniform requirements for organisation of budget process and

financial reporting; - the only requirements for internal and external audit; - the only regulatory framework for public procurement. The common values of the European community were summarised in

Article 2 of the Treaty establishing a Constitution for Europe; They include: respect for human dignity, freedom, democracy, equality, the rule of law, respect for human rights, as well as pluralism, tolerance, solidarity and non-discrimination1. Separately for the civil service, the SIGMA program identified common values that should be guided by civil servants working in the public authorities of the Member States and in the EU institutions:

- impartiality and integrity of civil servants; - independence of civil servants from political leadership; - a civil servant serves the people, not the leadership2. There are several basic tools for regulating business management. One

of them, CAF (The Common Assessment Framework – the only assessment framework for public sector organisations) is an evaluation tool, as well as self-assessment, developed specifically for public sector organisations to improve their performance based on the use of quality management techniques. The first version of the CAF model was presented at the First European Quality Management Conference in May 2000.

The model is based on the assumption: excellent results in the organisation and the satisfaction of customers, society and employees themselves can be achieved under conditions of good leadership, due to planning and strategy. Implementation of plans and strategy is possible 1 Договір про запровадження Конституції для Європи (проект). URL: http://zakon3.rada.gov.ua/laws/show/994_647 2 Support for Improvement in Governance and Management by The Organization for Economic Cooperation and Development and European Union. URL: www.sigmaweb.org

235

because of a competent human resource, reliable and stable partners, sufficient resources, and well-managed processes.

The Open Method of Coordination (OMC) is widely used in the EU as one of the tools for assessing the status of institutional development and the state of affairs in one or another field. With the help of certain indicators, the progress and achievements of Member States in the implementation of common EU policies, which are governed by this method, are assessed and compared. The Open Method of Coordination (OMC) is an evaluation tool, a policy development and implementation tool. As an instrument for developing and coordinating the European policy, the OMC was institutionalised by the European Council in Lisbon (March 2000). The OMC allows to focus on the goals that the EU seeks to achieve and leaves Member States free to choose which and with what speed to move what policy tools to use.

Metcalf Coordination Scale is a tool for measuring the coordination capacity of the public administration and governance system. It reveals the logic of coordination processes within the government and helps to determine the level of coordination of the whole system or its individual sectors, as well as to identify shortcomings in the coordination processes, such as: lack of communication (information exchange); uncoordinated consultation process between different ministries and departments; lack of mechanisms for resolving conflicts, mediation; lack of basic knowledge and experience of negotiation; shortcomings of the administrative culture (lack of uniform standards of behaviour of officials, civil servants); differences in understanding of the government's strategy and priorities, etc.

Twinning – this is a tool of institution building, in which there is cooperation at the level of civil servants similar public authorities of the Member States and Ukraine to implement elements of governance needed to adapt national legislation to EU standards.

The implementation of the Twinning instrument was launched by the European Commission in 1997 in the context of the enlargement of the European Union. This new institutional development tool was created to integrate EU legislation into the legislation of the beneficiary countries. To date, more than two thousand Twinning projects have been implemented.

The Twinning tool in today's reform environment is of particular importance, as Twinning projects are aimed at:

236

- priorities of cooperation between Ukraine and the EU (Partnership and Cooperation Agreement between Ukraine and the European Communities and their member states, EU-Ukraine Association Agreements);

- strategy of development of the relevant branch; - medium-term priorities of the state body where the Twinning

project will be implemented; - approximation to the acquis communitarian (EU law)1. Experience of European public administration tools being

introduced in Ukraine The development of cooperation between states and other actors in

international relations has brought to life a whole system of intergovernmental and non-governmental organisations of global and regional significance. The growth of interdependence of the world, the emergence and aggravation of global problems has greatly increased the objective needs for strengthening multilateral cooperation contributed to the expansion of its spheres. At the same time, no matter how diverse these spheres and directions are, and no matter how great their significance, the political and political cooperation remains the central and most important of them, and the success of which largely depends on solving the problems of interaction in other areas as well. Of particular importance are the issues of political integration. It is closely linked to economic integration, but not limited to it and is not a phenomenon of ‘secondary’ or ‘superstructural’ order.

The European Union for Ukraine is today an important instrument for stimulating socio-economic, political and cultural development of regional cooperation in certain areas of public life, and, most of all, cooperation with the EU promotes the implementation of strategically important tasks of optimising the system of public administration. Today, the important point for Ukraine is not only the accession to the EU itself, but also the preparation for joining it, because in this respect the state must meet

1 Державна служба України з безпеки на транспорті: Інструмент інституційної розбудови TWINNING. URL: http://dsbt.gov.ua/storinka/instrument-instytuciynoyi-rozbudovy-twinning

237

certain standards, and for this purpose it has to carry out a systematic reform of public life.

As the experience of the European Union shows, in institutional terms it is more in line with the principles of social justice. That is why the European Union declares such a social system that can ensure the construction of social system, and therefore it is the guiding principle for which Ukraine must aspire.

Understanding the importance of cooperation with Ukraine, the European Union introduced a special status of "neighbourhood". On April 15, 2002, at a meeting of the Foreign Ministers of the EU member states in Luxembourg, "the special status of the neighbourhood" was announced1.

The National Agency of Ukraine for Civil Service has been designated as the national coordinator for the implementation of such European institutional development instruments as Twinning, TAIEX and CIB programs. Implementation of these instruments in Ukraine takes place in a comprehensive manner, taking into account the priorities of the Program of Economic Reforms for 2010-2014, as well as the existing European programs of technical assistance and budget support programs that are implemented in the relevant sectors of the Ukrainian economy2.

Twinning from Latin is ‘imitation’ – the kind of processes for transferring knowledge and skills related to the functioning of the European Union's political and legal property (acquis communaiturein the field of public service, which is the interaction between the system of this service of the candidate state of the EU (or the EU partner state) and the public service system of one or more EU member states3.

The decision to disseminate the Twinning to Ukraine was adopted by the European Commission in 2005. In particular, the EU-Ukraine Action Plan, approved at the meeting of the EU-Ukraine Cooperation Council on 21.02.2005, stipulates that the European Union will provide Ukraine with assistance to exchange the experience of civil servants, including through 1 План дій «Україна – Європейський Союз»: Європейська політика сусідства. URL: http://zakon5.rada.gov.ua/laws/show/994_693 2 Офіційний сайт Представництва Європейської Комісії в Україні. URL: http://eeas.europa.eu/delegations/ukraine/index_uk.htm 3 Державна служба України з безпеки на транспорті: Інструмент інституційної розбудови TWINNING. URL: http://dsbt.gov.ua/storinka/instrument-instytuciynoyi-rozbudovy-twinning

238

the Twinning mechanism. One of the important measures aimed at harmonisation, approximation and adaptation of the civil service to European standards and requirements is introduction in Ukraine in accordance with the Decree of the President of Ukraine dated October 6, 2005, No. 1424/2005 of the Twinning program. It is a special kind of EU technical assistance and experience exchange programs between civil servants of Ukraine and EU member states. The following principles are the main principles of the operation of Twinning projects in Ukraine:

- meet the national priorities of state development; - correspond the spheres of cooperation envisaged by the Partnership

and Cooperation Agreement between Ukraine and the EU and the priorities of the EU-Ukraine Association Agenda;

- meet the medium-term priorities of the state administration, where the Twinning project will be implemented;

- provide the elements of approximation to the acquis communautaire (EU legislation);

- provide elements of institutional and structural reform. That is, at the end of a project, a new or modified system should be self-sufficient: it must function independently and funded by the beneficiary country1.

Today, 53 projects of Twinning are being implemented in Ukraine at different stages of preparation, including completed projects. Of these, 12 projects in the fields of finance, environmental protection, aviation, justice, municipal, gas, statistics, accreditation, internal affairs, civil service, energy and communications are in the implementation phase. Six projects in the areas of social services, intellectual property, education, phytosanitary measures, transport and finance are at the stage of preparation of Twinning contracts, evaluation and selection.

TAIEX is another European institutional development tool that is being implemented effectively in Ukraine. It should be noted that during 2006-2011, 6839 Ukrainian civil servants participated in 292 events organised under the TAIEX instrument, of which 82 were initiated by the European Commission and 210 by the initiative of Ukraine.

TAIEX activities were carried out in the following areas:

1 Указ Президента України «Питання забезпечення впровадження програми Twinning в Україні» від 06.10.2005 р. № 1424/2005. Урядовий кур'єр. 2005. 11 жовтня. № 192 (3105)

239

- freedom, security and justice (61); - the domestic market (127); - transport, environment and energy (62); - agriculture and food safety (42). The increase as an indicator of the TAIEX number activities carried

out and the number of participants involved in them indicates an increase in awareness of the state authorities of Ukraine regarding the possibilities and benefits of using the TAIEX instrument. First of all, it concerns the development, provision of offers and the quality of the preparation of application forms TAIEX. Thus, during 2006-2011, 406 TAIEX applications were sent to the European Commission for consideration.

Another instrument of cooperation with the European Union is the Comprehensive Institution Building Program (CIB), which forms part of the EU Eastern Partnership Initiative launched on May 7, 2009 at a special EU summit in Prague. The Eastern Partnership countries include 27 EU member states, as well as Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine.

The Eastern Partnership provides for an additional EUR 350 million for 2010 – 2013 for the six countries of the initiative, including the European Neighbourhood Policy. 175 million euro is foreseen for the implementation of the CIB program (EUR 43.37 million for implementation of CIP program in Ukraine). The additional benefits of the CIP program are:

- high political weight, because the European Union pays much attention to the implementation of the Eastern Partnership Initiative and the CIV program, as this is the first program aimed only at the eastern neighbours. For Ukraine, proper implementation of the CIP program will result, firstly, in substantially supporting the implementation of the reform of public administration in Ukraine by the European side, and, second, by increasing the financing of sectoral programs by the European Union;

- receiving irrecoverable funding, because in addition to the funds allocated by the European Union for the implementation of the CIP program, it is possible to involve other donors, in particular EU member states, in its implementation. Implementation of the CIS program focuses on the following sectors: – implementation of sanitary and phytosanitary measures;

- migration;

240

- monitoring and control of state aid; - implementation of the future Association Agreement between

Ukraine and the EU, including an in-depth and comprehensive free trade area. Ukraine needs to develop and approve institutional reform plans (PIPs) in each of the four areas mentioned above in order to receive funding under the CIP.

A new instrument of cooperation in Ukraine is the Comprehensive Institution Building Program, which has already united around a wide range of beneficiary bodies in four areas. In turn, this program is aimed at developing the capacity of a separate body, but of the whole sector, which facilitates the establishment of a joint dialogue between the involved bodies and the search for a joint solution of the problems of particular sectors.

Consequently, Ukraine continues to implement institutional development instruments both in individual beneficiary bodies and in individual sectors. At the same time, it remains the leader among the countries of the European neighbourhood and Partnership Instrument for their use.

At the same time, the National Agency of Ukraine on Civil Service as the national coordinator of institutional development instruments should continue its work on improving their procedures and improving approaches to using the tools to ensure further modernisation of the civil service.

Conclusion European integration of Ukraine has both historical and economic

preconditions. With the development of Ukraine's independence, understanding the need for close interaction with Europe becomes even more obvious. Since integration at any level is impossible without an effective mechanism for its implementation, public administration is the first thing that needs to be addressed in determining the priority areas of state development. It is important not only to improve the national system of public administration, but also to thoroughly analyse and take into account the peculiarities of the state administration of the EU countries, as their experience can outline the strategy for Ukraine, especially if we take into account the experience of the neighbouring countries of Ukraine that have been admitted to the EU.

241

The Government of Ukraine understands the importance of introducing the best EU experience in the field of public administration, with particular attention being paid to the European standards of public administration, modern e-governance technologies, division of functions in the system of public administration, quality of civil service, etc. Accordingly, it improves the investment climate in the country, promotes economic development and interregional ties. In addition, the first steps Ukraine has already made in this direction have become catalysts for signing the Association Agreement. Simplification of the visa regime, implementation of plans of institutional reforms, strengthening of trade and economic ties are important steps for signing the Association Agreement between Ukraine and the European Union. Increasing the efficiency of the system of public authorities in the field of European integration and ensuring the proper fulfilment of Ukraine's obligations under the Association Agreement and bringing Ukraine closer to the European Union.

Civil service reform is an integral part of public administration reform and should be implemented in Ukraine based on law, professionalism, depoliticization and equal opportunities. For Ukraine, the components of this reform include: the development and introduction of new legislation on civil service; the development and modernisation of vocational training systems of civil servants, local self-government officials and local council deputies; Implementation of the Strategy of State Personnel Policy for 2012-2020; formation of the Presidential personnel reserve "New Elite of the Nation" and adaptation of the civil service of Ukraine to the standards of the European Union and the implementation of European institutional development instruments (Twinning, TAIEX, SIGMA, CIV, etc.).

Thus, based on the European experience of reform, modern Ukrainian society will have to implement the most effective adoption and decision-making system, based on significant historical experience and promotes to the spread of pluralism. This is what prompts the concept of sustainable development in Ukraine, through which every member of society, the community becomes an active participant in the process of public administration and can influence the formation of all spheres of life.

242

4.2. THE MECHANISMS IMPROVEMENT OF THE UKRAINIAN STATE MIGRATION SERVICE INTERACTION WITH THE STATE AND LOCAL GOVERNMENT AUTHORITY AGAINST NON-LEGAL MIGRATION AS A NATIONAL SECURITY POTENTIAL THREAT1

The process of formation and implementation of the national security

state policy currently is one of the most acute issue in Ukraine. Modern realities of Ukraine’s existence as an independent state require, within the framework of the national security policy implementation, to take into account the country's request to realize national interests in all spheres of society's life. Nowadays, the country faces intensification of the unregulated (illegal) migration processes and the lack of an effective state regulation system of migration processes, which constitute a direct threat to the country national security, promote the criminalization growth and the organized criminal groups’ formation, and contribute to the social tension exacerbation in society. The bodies of the State Migration Service (SMS) of Ukraine face with an urgent need for a more profound migration perception as a socio-economic phenomenon and an active search for qualitatively new approaches to migration policy formation and control over population territorial movements.

Due to the fact that Ukraine is at the same time a country of origin, destination and transit of migrants, territory of diverse, multidirectional and of different scales migratory flows, ensuring state regulation in the field of migration is a complex task, the solution of which requires an integrated, systematic approach, adequate funding, personnel and scientific support; the tasks and the goals in this area are prioritized, determined and regulated by the Strategy of the State Migration Policy of Ukraine for the period up to 2025.

The bodies of the State Migration Service have to strengthen control over the migration legislation observance and to interact with other bodies

1 The authors of subsection: Tkachova Nataliya, Doctor of Sciences in Public Administration, professor, the Head of the Department of Public Management and Administration, Khmelnytsky University of Management and Law, Khmelnytsky, Ukraine; Martyanova Ruslana., Ph.D. candidate of the Department of Public Management and Administration, Khmelnytsky University of Management and Law, the Head of the Sector for the Illegal Migration, Readmission and Deportation Prevention of the SMS of Ukraine in Khmelnytsky oblast, Khmelnytsky, Ukraine

243

of state power and local self-government in order to ensure national security.

Taking into consideration the socio-economic situation, at the present time, the migration attractiveness of Ukraine is relatively low compared to other countries that host migrants. Due to a number of factors, so far, Ukraine has not become a transit country for migrants who travel to the EU. As a result, the number of migrants arriving in Ukraine has decreased in Donbass area and because of the Crimea annexation. The security reasons and the instability of the economic situation through military actions have prevented the migrant flow to Ukraine.

People who have previously attempted to enter through the territory of Russia via unregulated way, and then through Ukraine get into the EU, today, at least, have very serious obstacles on their way: both because of the conflict in the East and military actions, and because of the fact that the western border of Ukraine in recent years has significantly strengthened. At the same time, the general migration crisis in the European Union countries, the targeted actions of the European Union member states, regarding the migration flows settlement and taking measures to establish restrictions on entry into its territory, including through the border crossing, gives grounds to assert that in the near future Ukraine may face the need to react quickly and flexibly to the growth of the migratory flows intensity.

The aggravation of the socio-political situation in a number of countries in the Middle East, Asia and North Africa and the escalation of conflicts have led to a significant increase in illegal migrants amount who have migrated to the EU. Only in 2015 more than 1.5 million migrants from the countries of the Middle East and North Africa arrived in the European Union.

With the introduction of rigorous response measures by EU countries to the illegal migration facts, the southern and western regions of Ukraine, like Hungary, Macedonia, Serbia, Italy, Croatia and Greece, can become transit points for illegal immigrants on the way to EU developed countries. So far, only 0.2% of illegal migrants come to the EU collectively from the territories of Ukraine and Belarus.

At present, according to expert estimates, 257 thousand migrants are permanently resident in Ukraine. These are people who are offenders in one way or another: they either have a delayed visa, or just an illegal stay

244

in Ukraine, an overdue 90-day period, or a violation of the rules of stay. At the same time, if the belongingness of illegal migrants to the citizenship of one or another country cannot be identified, they are placed in special detention centres for foreigners. Among the countries with the biggest numbers of migration law violators, the former republic of the USSR (Moldova, Russia, Georgia, and Azerbaijan) as well as more distant countries with a low standard of living, such as Vietnam, Afghanistan, and Bangladesh take the leading positions.

According to statistics, about 70% of illegal migrants are men aged 20 to 40 years old. Some of them have a low educational level, a low professional qualification associated with the use of hard physical labour, but most are usually unemployed and persons without certain occupations. A particular danger is caused by the fact that the majority of illegal migrants arrives in Ukraine from countries where various terrorist organizations are active. It leads not only to the criminal situation deterioration, but also to direct political, social complications and causes economic damage to the state, indicating a high degree of social danger.

It ought to be noted that a large group of foreigners illegally staying in Ukraine destabilizes the socio-economic situation. According to expert estimates, each illegal costs the country about 600-800 USD per annum, even if the person lives in cities without receiving any social assistance from the state, because he/she consumes a national product, uses social benefits created by labour and at the expense of taxes paid by the local population, with virtually no reimbursement.

Thus, unregulated foreigners and person destitute of nationality migration through Ukraine has become part of the overall migration process. Beginning in 2015, there has been a tendency for a large number of illegal migrants to be detected within the state and at its borders.

According to the statistics of the State Migration Service of Ukraine in 2016, 6,390 illegal migrants were identified, about 5,729 people made a decision on refoulement from the territory of Ukraine, executed decisions on refoulement from the territory of Ukraine was 2,092 cases; in 2017, there were 9,678 illegal migrants identified, about 9,264 people made a

245

decision on refoulement from the territory of Ukraine, executed decisions on refoulement from the territory of Ukraine was 4,4151.

Modern approaches require not only adequate institutional capacity within the framework of their competence, but also qualitative interagency cooperation, collaboration and coordination.

In accordance with Part 1 of Article 9 of the Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons" foreigners and stateless persons enter Ukraine with a passport as specified by this Law or the international treaty of Ukraine and a visa obtained in the prescribed order, unless otherwise provided by the law or the international treaties of Ukraine. Part 1 of Article 16 of this Law states that registration of foreigners and stateless persons who enter Ukraine is carried out at the crossing points at the state border of Ukraine by the state border protection agencies2.

In accordance with paragraph 2 of the Procedure for calculating the term of temporary stay in Ukraine, foreigners who are citizens of the states with a visa-free regime of entry, approved by the order of the Ministry of Internal Affairs of Ukraine dated July 20th, 2015, № 884, stipulates that upon a foreigner entries the territory Ukraine, the official of the State Border Guard Service at the checkpoint (the control point) through the state border of Ukraine carries out the calculation of the authorized stay. During that period in Ukraine, the calculation of the authorized foreigner's term of stay is carried out by the officials of the State Migration Service3.

According to existing firm views, the migration policy in Ukraine is a system of legal, financial, administrative and organizational measures of the state and non-state institutions on the migration processes regulation from the standpoint of migration priorities, quantitative and qualitative migration flows structure, their social, demographic and economic structure4.

1 Statistics on main activity. State Migration Service of Ukraine. URL: https://dmsu.gov.ua/diyalnist/statistichni-dani/statistika-z-osnovnoj-diyalnosti.html 2 The Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons" / Bulletin of the Verkhovna Rada of Ukraine, 2012, № 19-20, p.179 3 Administrative and legal regulation of migration processes. – Access mode: lawdiss.org.ua/books/213.doc.html. 4 Palagniuk O. Analysis of the mechanisms of state regulation of illegal migration in Ukraine in the modern researchers writings // Public Administration and Local Self-Government, 2014. Issue 1 (20). – Р. 83-92.

246

The leading domestic researcher M. Moiseenko studies migration policy as the state influence on migration processes through their direct regulation1. A. Homra, in turn, gives the following definition: "migration policy is a complex of developments and measures aimed at forming the necessary flows and the required intensity of population migration"2. According to T. Petrova, "migration policy is a system of legal, financial, administrative and organizational measures of the state and non-state institutions on the regulation of migration processes from the standpoint of migration priorities, quantitative and qualitative structure of migration flows, their social, demographic and economic structure"3.

It should be noted that the majority of researchers in the field of migration processes study usually use the term "migration regime", which is understood as the administrative and legal regime, in which the regulation of migration flows and prevention of illegal entry of foreigners into the territory of Ukraine are carried out.

Establishing and maintaining the migration regime effectiveness is ensured through various mechanisms, among which, the most effective mechanism is the counteraction to illegal migration. Thus, it includes the following elements:

1) the system of normative legal acts, which form the basis of the mechanism functioning;

2) organizational and structural mechanism formation; 3) organizational and legal ways of illegal migration counteracting4. As for the definition of the "illegal migration" term most domestic and

foreign scientists do not reach consensus because they interpret the essence of this phenomena in different ways. In authors’ opinions, under illegal migration, it can be understood the illegal entry into the country of a non-permanent place of residence and departure outside its borders; illegal stay in the territory of the state of a non-permanent residence

1 Moiseenko V. Actual Issues of Migration Policy in the USSR / V. Moiseenko // Problems of Demographic Policy in Socialist Society: Thesis. All-Union conf. – M., 1982. – 119 p. 2 Homra A. Population Migration: Theory, Research Methods / A. Homra. – K.: Scientific opinion, 1979. – Р. 112. 3 Petrova T. Conception of the State Migration Policy of Ukraine: Target Orientation and Main Directions / T. Petrova. – K., 1991. – p.2. 4 Serova I. Theoretical and conceptual issues of international legal definition of illegal migration and mechanisms of this phenomenon counteraction / I. Serov // Juridical journal – 2006. – № 3. – p. 16–21.

247

(residence without valid documentary registration for a long time: for a year or more); semi-legal arrival to the country of a non-permanent place.

It is essential that the terms "illegal migration" and "illegitimate migration" in the scientific literature are usually used synonymously. However, there is a difference between them regarding the sphere of use: the term "illegitimate migration" is most often used in official documents, while the notion of "illegal migration" is more characteristic of scientific research and journalistic texts1.

In the official terminology of the United Nations, instead of the term "illegal migration", the term "irregular migration" is predominantly used; instead of the term "illegal migrant" there is an "irregular migrant" or a "foreigner without proper documents" (undocumented migrant or alien)2. This approach reflects the humanistic perception of the illegal migration phenomenon in the modern world, in view of the need to respect human rights and the prohibition of discrimination; it is based on the personal freedom and inviolability principle, freedom of movement, freedom of residence choice, etc.

However, unlike international law, in national legislation, the EU Member States in most cases tend to prioritize the security and economic interests of the state, which is in direct conflict with the human right to freedom of movement and residence, with some degree of discriminatory character. Thus, in the vast majority of the EU legal documents, in particular in the "Common Policy on Counteraction to Illegal Immigration", the term "illegal immigration" is used and is defined as illegal entry and stay of persons in the member countries.

In accordance with this act illegal migration takes place based on the following: a foreigner from one of the EU member states crosses the frontier with falsified (forged) papers or with the absence of an official permit for staying in the country; in case of a delay in the validity of the residence permit after authorized entry; in case when a person works or is engaged in entrepreneurial activity; if it is forbidden by an entry visa or a residence permit3.

1 Romanyuk M. Migration of the Ukrainian population in a transition economy. (Methodology and practice of regulation) / M. Romaniuk. – L.: World, 1999. – p.126. 2 Palagniuk O. Analysis of the mechanisms of state regulation of illegal migration in Ukraine in the modern researchers writings… 3 Ibid.

248

Clause 14 of Article 1 of the Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons" stipulates that irregular immigrant is a foreigner or stateless person who crossed the border outside the border crossing points or using the latter, but avoiding border control and failed to promptly apply for refugee status or asylum in Ukraine, as well as a foreigner or stateless person who arrived legally to Ukraine, but after the prescribed period of stay lost the grounds for further stay and avoided exit from Ukraine1.

It ought to be considered that for the first time in the national scientific thought the study of the mechanism of counteraction to illegal migration from the point of view of administrative law was proposed by O. Kuzmenko, who determined the administrative-legal mechanism of counteraction to illegal migration contains the following elements: a system of legal acts; organizational and structural mechanism formation (that is, actors who carry out counteraction); organizational and legal methods (i.e., types of activities of counteraction actors). V. Kolpakov pays attention to the mechanism of ensuring the legal regime as an integral part of the rule of law adherence, which includes: organizational and structural formations and organizational and legal methods2.

Formation and implementation of migration policy in Ukraine is carried out by a number of state authorities. However, in spite of significant branching up and significant number of subjects of illegal migration, the main burden lies on the State Migration Service of Ukraine subdivision, which exercises the authorities for state control over legislation observance in the migration field (immigration and emigration), including counteraction to illegal (illegitimate) migration, registration of individuals, refugees and other categories of migrants determined by the legislation, in cases provided by law, causes the offenders to be held liable for administrative liability. However, the effectiveness of the activities aimed at preventing illegal (illegitimate) migration is influenced by the inadequate system of interaction between the SMS of Ukraine and other authorities, namely: with the Ministry of Internal Affairs of Ukraine, with the Security Service of Ukraine, with the State Department of Ukraine for

1 The Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons"… 2 Administrative and legal regulation of migration processes…

249

the sentences execution, with the State Border Guard Service in Ukraine and others.

The Resolution of the Cabinet of Ministers of Ukraine dated July 12th, 2017, № 482-p approved the Strategy of the State Migration Policy of Ukraine for the period up to 2025, where one of the goals is to strengthen control over the migration legislation observance within the country. It is also determined that the intensity and types of interventions ought to be proportionate to the risks of illegal migration and the possible threats that lead to such violations.

Therefore, scholars and practitioners recognize that migration management is an integrated branch of state policy, consisting of a series of interconnected components, the responsibility of which lies with the various government bodies.

In Ukraine, the central executive authorities, which are responsible for the state migration policy implementation, are the State Migration Service and the State Border Guard Service whose activities are directed and coordinated by the Cabinet of Ministers and the Ministry of Internal Affairs. Some aspects of migration policy concern the areas of competence of the Ministry of Social Policy, the Ministry of Foreign Affairs, the Ministry of Internal Affairs, Commissioner of the Verkhovna Rada of Ukraine for Human Rights, the State Employment Service. However, the entire spectrum of functions in the migration sphere cannot be covered by the State Tax Inspectorate alone, in connection with which there is a need to organize effective interaction with relevant state authorities, local self-government in coordinating activities aimed at ensuring migration security.

It is generally known that any phenomenon or process is not practical without an active mechanism for their implementation. The interaction of SMS with state authorities is also a mechanism. Moreover, it is a dynamic phenomenon, which depends on the way it functions, i.e. the mechanism of implementation1.

In the scientific literature, the term "management mechanism" is widely used, but its content and structure are interpreted differently by various scholars and practitioners. The most widespread definition is given by B. Bakumenko, V. Knyazev: the mechanisms of state

1 Administrative and legal regulation of migration processes… Р.47.

250

administration are "practical measures, means, and levers, incentives through which public authorities influence society, production, and any social system in order to achieve set goals". The integrated mechanism of public administration is defined as "a system of political, economic, social, organizational and legal means of purposeful influence of public administration". The scheme of the real mechanism of government includes: goals, decisions, influences, actions, result.

In authors’ opinion, the mechanism of interaction of SMS with state authorities and local self-government is a single integrated regulator aimed at preventing illegal migration, transnational crime by coordinating activities and establishing clear interaction between the State Migration Service and public authorities. Since any mechanism is a system with a high degree of organization, and each system has its own structure, one can talk of the mechanism structure of SMS interaction with state authorities in the field of counteracting illegal (illegitimate) migration.

This mechanism includes the organization of interaction and the process of this interaction itself. Y. Galaniuk identifies two components in the structure of this mechanism, i.e. organizational and activity. In order to designate them, it is most expedient to use the "organization of interaction" and "implementation of interaction" categories1. The definition of "organization", in the context of the being investigated issue, can be used in two ways: 1) as one of the most important elements of the SMS interaction mechanism in the counteraction to illegal migration sphere, which is embodied in the influence on the process of this interaction in order to structure it; 2) as the desired end result of such influence, in the form of a qualitatively new level of coherence in activity.

The SMS interaction with public authorities and local self-government is manifested in their joint activity, which is carried out within the framework of the system. In accordance with the Decree of the Cabinet of Ministers of August 20th, 2014, № 360 "On Approval of the Regulation on the State Migration Service of Ukraine", the SMS while carrying out its tasks interacts in accordance with the established procedure, with other state bodies, subsidiary bodies and services established by the President of 1 Galanyuk Ya. Improvement of mechanisms of interaction of the state border service of Ukraine with state authorities and local self-government // Proceedings of Tavria National University after V. Vernadsky. Series: Public Administration, Vol. 29 (68) № 1, 2018, p.47-53.

251

Ukraine, local self-government bodies, public unions, trade unions and employers' organizations, relevant bodies of foreign states and international organizations, as well as enterprises, institutions and organizations. Thus, in the process of organizing this interaction, the SMS subdivisions systematically coordinate and synchronize their activities with the departments of ministries and services, state executive bodies and local self-government bodies.

Regarding the hierarchical structure of the SMS, the indicated interaction is carried out at the levels, which implies the presence of its appropriate organization.

The national level involves the organization and implementation of existing cooperation between relevant state and non-state bodies of Ukraine. As the subjects of interaction there are the SMS and the bodies of state executive power (SSU, National Police, SMS, the patrol and inspection service, etc.). The regional level has its multilevel structure, which is determined by the authority bodies that take organizational decisions and communicate at the regional level, namely: heads of regional departments of the Ministry of Internal Affairs, Ministry of Internal Affairs, State Tax Administration, heads of regional state administrations, local authorities of public authority within their competence.

The main requirements that are put forward to the required level of organization of this interaction are: reliability and rationality of interaction; its effectiveness; saving of forces and means; clarity and promptness (timeliness) of interaction actions; maintaining the interaction of the organizational subject structure within this organization.

The main normative acts regulating the authorities’ interaction with regard to preventing and counteracting illegal migration are:

- procedure for carrying out measures to oversee and control the legislation implementation in the field of migration, approved by Order № 850/536/1226 of 04.09.2013 of the Ministry of Internal Affairs of Ukraine, Ministry of Social Policy of Ukraine and the Ministry of Education and Science of Ukraine; however, this procedure only determines the purpose of the measures and indicates which departments are involved in carrying out preventive measures;

- instruction on compulsory return and forced removal from Ukraine of foreigners and stateless persons, approved by the order number 353/271/150 dated April 23rd, 2012, of the Ministry of Internal Affairs of

252

Ukraine, the Administration of the State Border Guard Service of Ukraine, the Security Service of Ukraine, which approves the procedure of territorial bodies officials, SMS territorial subdivisions, state border guard institutions and the SSU bodies during the decision-making on the forced return and initiation of decisions on the forced removal of foreigners from Ukraine.

However, in the abovementioned instruction, there is no mechanism for cooperation between authorities in countering illegal migration. Therefore, in order to ensure effective protection of the state national interests against counteraction to illegal migration and to work with law enforcement agencies for the purposeful fight against crime in the area of human trafficking and other crimes related to illegal migration on the territory of Ukraine, including foreigners, who were released from places of imprisonment, the approval of the Plan of joint measures of the National Police of Ukraine in the Khmelnytsky oblast and the SMS of Ukraine in the Khmelnytsky oblast in relation to counteract illegal migration in the region has been initiated. Particular attention has to be paid to the legality of the foreigners stay on the territory of Ukraine, who commit criminal offenses, are sentenced to imprisonment, serve a punishment in a correctional colony on the territory of Ukraine and who are released from execution of punishment after the termination of their sentence.

The analysis of the foreign countries experience in combating organized crime shows that in world law enforcement practice, illegal migration is defined as a generally recognized form of organized crime, the opposition of which from the relevant national structures is becoming increasingly relevant.

As a rule, foreigners who are released from prison, do not leave the territory of Ukraine; they are recidivists who are repeatedly convicted and who do not have grounds to legally reside on the territory of Ukraine; they are involved in the illegal migration and crime situation in the country. It is almost impossible to make a decision in court against Forced release of this category of foreigners without prior compulsory return.

Since nowadays there is no definition of this category of foreigners, the normative document that would define the authority to exercise control over the stay of this category of people does not exist. There are no instruction and normative document that would regulate the actions of the officers of the SMS with the bodies of the National Police and the organs

253

and institutions of the State Penal Service for foreigners who are discharged from state penitentiary institutions after serving their terms of punishment and whose stay on the territory of Ukraine destabilizes the criminal situation in the country.

In addition, there is no definition of this category of foreigners in the Criminal Code of Ukraine and the Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons".

However, recently there is a term "criminal immigration" in criminal literature which defines the movement of the population and "criminal migration" that treats foreigners when determining the contingents of foreigners for criminal purposes.

The analysis of official data on persons who committed crimes on the territory of Ukraine in 2017 allowed the following data to be obtained, namely, from 117,947 people who were officially issued with the order in 2017 to hold a decision on suspicion of committing crimes, there was the following picture: foreign citizens – 1,579 people; citizens of the CIS – 1,027; stateless persons – 195; illegal migrants – 41; refugees – 17 people. In total, 2,839 people who were not permanent residents of the country and belonged to one or another group of migrants were detected1.

Therefore, the illegal stay in the territory of a foreign country is a destabilizing factor in the socio-political, as well as socio-economic spheres, which also leads to an increase in criminal types of crimes, which has a very negative effect on the authority of Ukraine in the EU.

The introduction of a continuous monitoring system and exchange of information between the National Police of Ukraine, SMS of Ukraine enabled the introduction of measures for the timely detection of foreigners who were released from places of detention and who did not enter the path of correction while serving their sentence and, after being released from places of imprisonment, intended to continue committing criminal acts, to adhere to criminal "concepts" and "customs" with the purpose of commission of serious and particularly serious crimes, maintain thieves' traditions, which negatively affects operative situation in Khmelnytsky oblast. During the briefing on October 18th, 2017, the First Deputy Head of 1 Babenko A., Smagliy A. The Criminological View of the dependence between Migration and Crime: Countering Illegal Migration and Human Trafficking: II International science-practice conf., March 16-17, 2018, Private University of King Danylo University, CEI Cooperation Fund. Ivano-Frankivsk, 2018. p.14-16.

254

the National Police – the Head of the Criminal Police Vyacheslav Abroskin noted that according to statistics, every fourth crime in the state was committed by foreign citizens.

A significant number of foreigners who are involved in criminal offenses stay legally in Ukraine, that is, they are documented with temporary residence permits and permanent residency certificates in Ukraine; as a rule these are "fake marriages", which became the basis for foreigners’ legalization in terms of the family reunion".

According to clause 7 of the first part of Article 1 of the Law of Ukraine "On the legal status of foreigners and stateless persons", foreigners and stateless persons who, in accordance with the procedure established by law or an international treaty of Ukraine, have entered Ukraine and permanently or temporarily reside on its territory, or are temporarily in Ukraine are considered to be legally residing in Ukraine.

According to Article 3 part 1 of the Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons", foreigners and stateless persons who are legally resident in Ukraine enjoy the same rights and freedoms as well as carry the same duties as citizens of Ukraine, with the exceptions established by the Constitution, laws or international treaties of Ukraine. Thus, the order of the Cabinet of Ministers of Ukraine of July 13th, 2017, № 502-p "On introduction of the implementation of a pilot project on state registration of marriage" the implementation of a state-guaranteed marriage right has been ensured for migrants. For example, in the city of Khmelnytsky in 2017, 395 couples used the indicated service, among which there were residents of not only other cities of Ukraine, but also citizens of Poland, Turkey, Morocco, Georgia, France, Canada, Italy, Germany, Kazakhstan, Tajikistan, Uzbekistan, Syria, Moldova, Estonia, Lithuania, Belarus, Greece, Azerbaijan, Israel, Armenia, the Russian Federation.

In accordance with the Rules for State Registration of Civil Status Acts in Ukraine, approved by the Ministry of Justice of Ukraine on October 18th, 2000, № 52/5 (as amended by the Decree of the Ministry of Justice of Ukraine of 24th December, 2010, № 3307/5), foreigners and stateless persons for state registration of marriage in Ukraine has to only provide a passport document.

Starting since December 16th, 2016, the state registration bodies of civil status registration act verify the legality of a foreigner or stateless

255

person stay on the territory of Ukraine by sending a request to the territorial authority of the State Migration Service of Ukraine on the day the application for state registration of the marriage is submitted. SMS in accordance with the Procedure for calculating the term of temporary stay in Ukraine of foreigners who are citizens of the states with a visa-free travel procedure, approved by the order of the Ministry of Internal Affairs of Ukraine dated July 20th, 2015, № 884, determines the legality and term of stay of a foreigner on the territory of Ukraine.

Thus, foreign citizens who are legally resident in Ukraine and have married Ukrainian citizens, have grounds for obtaining a temporary residence permit in Ukraine by applying to the SMS territorial bodies and providing only a passport document of a foreigner, a receipt for a state duty payment, a petition host party, photos. Therefore, the law does not provide for submission of documents confirming the dissolution of the previous marriage and the absence of conviction in the country of civic affiliation. Consequently, a foreign citizen who is legally on the territory of Ukraine, by filing an application and several documents, officially legalizes temporary stay on the territory of Ukraine. However, no normative legal act of Ukraine contains information on checking the SMS accounts, the Ministry of Internal Affairs, Interpol during the legality verification of a foreigner stay on the territory of Ukraine and after a foreigner marriage registration who marry Ukrainian citizens and apply to the SMS for obtaining a temporary residence permit in Ukraine, which exacerbates the abuse of family reunification right, including through fictitious marriages.

Within this framework, the Polish experience is interesting, which provides for the verification of foreigners who filed applications for marriage registration not only in all available records, but also a complex of actions to determine the circumstances of a foreigner stay, a survey of neighbours, the establishment of a husband's residence or other member of the foreigner’s family, as well as persons with whom the foreigner has a connection. A survey of a foreigner’s family members and the persons with whom they live in a joint household examines the material condition and living conditions of a foreigner. The survey is conducted at the place of a foreigner’s residence, at the place of work, studying. The survey is conducted from 6.00 am to 22.00 pm. If, as a result of the survey, the information submitted by the foreigner was not confirmed or gathered information raised doubts as to its authenticity, Border Guard officials may

256

check the residential premises that the foreigner indicated as the place of residence.

Moreover, most importantly, an examination is carried out regarding the involvement or influence of a foreigner on the state security and public order, and whether the foreigner presents a threat to the state defence capability and security.

In France, in order to avoid fraud and the fight against false marriages, interviews are conducted in the prefecture and consulate, where the spouses' cohabitation, level of the French language proficiency, degree into French society assimilation, behaviour and law-abidingness are verified.

The main task of the US Citizenship and Immigration Services Commission (hereinafter referred to as USCIS) is to establish the honest intentions of the spouses. USCIS employees have determined the cases when US citizens marry a foreigner to obtain cash reward. That is why the immigration officer is empowered to investigate the authenticity of the marriage by interrogating the marriage, detecting any inconsistencies in the documents provided, as well as requiring additional evidence of the existence of marriage relations between spouses.

In accordance with the order of the Ministry of Internal Affairs of Ukraine dated 30th January, 2018, № 66, the National Police of Ukraine, the State Migration Service of Ukraine, the State Border Guard Service of Ukraine, with the participation of the Security Service of Ukraine carry out preventive measures to oversee and monitor the legislation implementation in the field of migration under the conditional name "Migrant". During the mentioned preventive measures at a daily basis law enforcement officers detain foreigners who commit criminal offenses and are involved in crime situations on the territory of the state, the public danger of which is in establishing control over the illegal activities of organized groups for commission of serious and particularly serious crimes in Ukraine; their stay on the territory of the country poses a threat to national security of Ukraine and the protection of public order. Joint efforts have led to a positive result, since 5,515 illegal migrants have been identified, 5,513 illegal migrants have been arrested, about 217 people have been forced to leave Ukraine, 152 foreigners have been placed in

257

temporary stay of foreigners and stateless persons, and 1,089 foreigners have been banned from entering Ukraine1.

Consequently, the Strategy of the State Migration Policy of Ukraine, for the period up to 2025, stipulates that the persons’ identification who may pose a threat to the national security of the state and potential illegal migrants remains an urgent issue as well as functioning of the illegal migrants detection system within the state, cooperation between the relevant authorities in order to control compliance with migration legislation, in particular between the National Police, the State Border Guard Service and the State Customs Service for Combating Organized Forms of Illegal Migration in / through Ukraine2.

Conclusions Therefore, it can be determined that illegal stay of foreigners and

stateless persons on the territory of Ukraine remains one of the factors of the crime spread and the crime situation aggravation in the country as a whole.

The issue of counteracting illegal migration and ensuring state security in the field of migration within the state is mainly entrusted to the bodies of the State Migration Service of Ukraine, whose powers include the carrying out of preventive measures for legislation observance in the field of migration and the application of administrative measures against foreigners, such as "compulsory return" and "forced expulsion".

It is important to take into account the fact that since the year of 2016 the number of detected illegal migrants and criminal offenses committed by them has been increased. The task for SMS employees and state authorities as well as law enforcement agencies (including those with special status) is to develop effective influence on the illegal migration prevention, control over foreigners staying on the territory of Ukraine and the use of the institution of administrative influence i.e. forced expulsion

1 Public report of the Head of the State Migration Service of Ukraine, based on the results of the service for 2017, the State Migration Service of Ukraine. URL: https://dmsu.gov.ua/news/publichnij-zvit-golovi-derzhavnoj-migraczijnoj-sluzhbi-ukrajni.html. 2 The Strategy of the State Migration Policy of Ukraine for the period up to 2025: Order of the Cabinet of Ministers of Ukraine dated July 12, 2017, # 482-p The Verkhovna Rada of Ukraine. Legislation of Ukraine. URL: http://zakon5.rada.gov.ua/laws/show/482-2017-%D1%80.

258

outside Ukraine, as well as foreigners who are released from state penitentiary institutions after the sentence termination.

Improvement of the authorities’ interaction with timely detection of foreigners who are released from the penal institutions of the State Criminal-Enforcement Service of Ukraine for the termination of the sentence requires the creation of an organizational and legal measures complex aimed at stopping violations of migration law.

The application of the administrative and legal measure "forced evictions outside Ukraine" in relation to foreigners who are subject to criminal violations, contributes to reducing the number of criminal acts committed by foreigners, whose stay is a destabilizing factor and affects the operational situation on the territory of the state.

Therefore, taking into consideration international legislation and ensuring state security within the state, the scheme of interaction between the bodies of the State Tax Administration and the authorities in the field of migration has been proposed, in relation to foreigners who are discharged from state penitentiary institutions on the example of the Khmelnytsky oblast, which is an effective measure for leaving the territory of Ukraine by foreign citizens regardless of their desire. Consequently, in order to resolve the problematic issues in the migration law application, the authors have proposed to amend the current legislation of Ukraine regarding detention and expulsion.

The prospect of further research on this issue is to improve the interaction of the SMS bodies with the State Employment Service and the Labour State Service of Ukraine. Furthermore, another measure can be the application of administrative coercion to foreigners, namely, the prohibition of further entry into Ukraine.

In authors’ opinion, in the context of the issue under investigation, it is essential to study European countries experience in ensuring the coordination of the national migration services activities of the EU member states in order to strengthen the control of the migration legislation observance.

According to the results of the study, it has been proposed to create in the structure of the Administration of the Ministry of Education and Science the Coordination Centre of interaction with state authorities and local self-government in the field of illegal migration counteraction (hereinafter – the Coordination Centre). The proposed structure will be

259

able to accumulate all information flows and optimize activities related to the coordination and synchronization of actions of all state authorities, in order to prevent the migration legislation violation.

The main tasks of the Coordination Centre are: to monitor migration flows in conjunction with the SMS, the Ministry of Internal Affairs of Ukraine and to carry out risk analysis on all aspects of integrated management of illegal migration, deportation processes; to assess the external threats and the degree of state structures readiness to respond to economic, criminogenic and social challenges; to coordinate and organize joint operations of state bodies authorities in response to threats that are related to migration legislation violations; to establis technical equipment centres for synchronizing the actions of state authorities in the field of ensuring migration security, implementing operations of rapid response to criminal threats, optimizing the activity of checkpoints and migration control; to develop technical standards for equipment for control and communication at the tactical level as well as technical oversight to ensure prompt response to threats that arise; to organize coordinated actions in the field of combating organized transborder crime and terrorism through interaction with other bodies, the public and local self-government bodies; to develop and operate information systems that allow the rapid and reliable information exchange on new risks of illegal migration and the promotion of the development and functioning of a unified environment for the information exchange between the SMS, the patrol and inspection service, the Ministry of Internal Affairs and public authorities.

Summing up what has been said, the international prestige of Ukraine, as well as any sovereign state, is determined by the ability of state authorities to effectively carry out border guarding, control the foreigners movement through it, and comply with the current immigration legislation requirements, which will be facilitated by the mechanism of the SMS with the public authority and public organizations interaction. The effectiveness of this activity is determined and regulated by the Strategy of the State Migration Policy of Ukraine for the period up to 2025, the strict observance of the priorities chosen by the government, the availability of reliable legal, organizational, material and informational support to measure migration state regulation.

260

4.3. THEORETICAL AND METHODOLOGICAL BACKGROUND FOR SUSTAINABLE TERRITORIAL DEVELOPMENT

(CASE OF HIGHER EDUCATION DRIVERS)1

Sustainable development is based on the intersection of numerous ideas that will be defined as “sustainability”, namely, what is understood as development in the context of permanent relations and processes. It is appropriate to remember what exactly defines development as a state and as a process, and what place the “constancy” parameter takes. It is necessary to recall both the classical definitions of sustainable development (development that does not restrict the possibility of future generations to use the resources and conditions for their own enhancement, and will not be less than the current generation ones) and its contemporary (modern) interpretation. Therefore, prof. A. Sukhorukov defines: “Consistency does not exclude fluctuations; it is precisely because of changes in the system parameters that it can maintain. Thus, “constancy” is a dynamic property of the system, which ensures its adaptation to changing conditions through self-regulation2”. Consequently, sustainable development is a development that is realized despite fluctuations or through fluctuations. In order to assess such fluctuations modern drivers of territorial development can be useful.

Currently, universities are the quintessence of knowledge, technology and innovation aimed at developing entrepreneurial skills. In recent decades, there have also been significant changes in the nature of the relationship between universities and consumers of their products and services. The role of the university as a leader in territorial development is

1 The author of subsection: Michał Śleziak, Master of Economics, University of Economics and Humanities, Bielsko-Biala, Poland 2 Sukhorukov A. Ratios of development and security in socio-economic strategies of the national and regional level / A. Sukhorukov // Sustainable development of XXI century: management, technology, models. Discussions 2016: Collective Monograph / Anderson V., Balgi M., Barkan V. [etc.]; Institute of Telecommunications and Global Information Space of the National Academy of Sciences of Ukraine; NTUU "Kyiv Polytechnic Institute"; Higher economics and humanitarian school / for sciences. prof. Hlobistova Ye. – Cherkassy: publisher Chabanenko Yu., 2016. – 564 pp. – P.60.

261

to change its mission and functions1. It is important to consider the role of the university as a public administration institution.

It ought to be noted that the innovative nature development of the regional economy has to start with regional universities, which are the basis of fundamental science, training, transfer of innovations and entrepreneurship development in the region. Thus, the regional university can be considered as one of the main elements for building a strategy for the regional economy development. In the context of the "triple helix" and the overtaking innovative strategy, regional universities must become an institutional environment for innovative ideas and a new type of relationship with government and business.

University Development Management is a complex activity that is carried out with the help of numerous tools, which results in different legal consequences for the objects of managerial influence. A specific feature of modern public management of universities development can be considered as management unity and self-organization processes. In general, the higher education management system from the point of view of socio-economic system formation is multilevel, namely:

- international (non-state) level of higher education system development in general;

- state level, regional and municipal levels of university development (at these levels, the national system of public administration for universities development provides for forecasts making and implementation, strategies for sustainable socio-economic development, programs and projects for economic and social development with the civil society representatives participation);

- the corporate level of university development (the allocation of this level is due to the need to increase corporate social responsibility for the results of its activities to the public. This provision is in line with the principles advocated by the Global Reporting Initiative (GRI), which recommends the corporate social reporting indicators development for interaction performance with society).

A characteristic feature of public management of universities development is the inclusion of state and corporate governance in its 1 Chatterton P., Goddard J. The Response of Higher Education Institutions to Regional Needs // European Journal of Education. – 2000. – Vol. 35, – № 4. – Р.475–496.

262

structure. At the same time, especially in foreign publications, in particular in the Polish, in the context of a broad understanding of the public administration of university development there is a thesis about the public administration scope and the self-government of internal university life. Thus, through the system of public administration, solidarity is formed between the society and the state as a system of relations aimed at the society values realization, the public policy goals achievement, as well as a competitive state creation, the defining characteristics of which is rule of law and developed legal culture, balanced representative democracy, strong self-government, disciplined and mobile public management, in particular, in higher education. It suggests that public administration of universities development has to be based on the values of civilization and formative development, civil society, ensure maximum involvement of citizens in the society management, the country and the state in order to achieve legally developed and recognized goals of progress, provide for search of compromises or elimination of social, economic and political contradictions in society. Moreover, current realities urgently require solving issues of improving the public administration system of universities development in order to ensure the effectiveness and efficiency of the relevant public functions implementation.

Economic welfare of the community is impossible without the local economy development, stimulating the development factors which are local competitive advantages. A special role among such factors in the context of sustainable development is given to the intellectual, local human resources which stimulate the entrepreneurship development, and hence the local population well-being1.

Universities are the system-creating resource for the regions development, preservation and enhancement of human potential. They act as city-forming enterprises and form a regional activity space. By providing traditional research and development, universities, however, are also key generators of in-field innovation2. The modern environment in which higher education institutions function, is nowadays at the level of marginal 1 Vasylchenko G. Planning of territorial communities’ development. A manual for local self-government officials / G. Vasilchenko, I. Parasyuk, N. Yeremenko / Association of Ukrainian Cities. – K., " VNA ENTERPRISE", 2015 – 256 p. 2 Melekhina V. University as a center of innovation: methodological aspects // Higher education in Russia. – 2017. – №4. – p. 126-130

263

instability and turbulence, which is explained by a number of different factors influenced by the existing education system.

Among the trends in the modern human society development the following are observed: globalization, post-industrialization, transnatio-nalization, software, service, financing, informatization that also influence the system of higher education and the national innovation system, giving quantitative and qualitative influence on the relationship between its main actors – universities, business and the state, and shifting the emphasis of state policy in managing innovation in the direction of interactive processes of cooperation between them and making the study of their interaction specificity actual1.

It is necessary to consider the issue of financing higher education institutions. Most leading foreign universities are funded by business; international companies invest in universities in order to receive qualified specialists in the future2. University marketing and a set of students contribute to the influx of young people from the national and international markets. Since the highest mobility is represented by experienced teaching staff and students’ natural aspiration to explore (by travelling) other cities on what educational opportunities they provide, each commune will experience a youth outflow. However, cities that provide opportunities for higher education are in a favourable position. Small towns which have large universities, benefit from the influx of young people into a city that is far more important to them than for large cities. The introduction of employment programs, the establishment of mentoring and personal relationships, and other similar activities of universities also help to keep young people in the place where they can study. In fact, cities have the opportunity to provide a set of services for a four-year residence of young and educated people.

One of the important functions of "driver" is infrastructure. Universities can often provide the creation and development of infrastructure objects that small towns could hardly afford: sports 1 A. Firsova. Public-Private Partnership as a Mechanism for Attracting Private Capital in the Process of Investing Innovation Activities, Publishing House of Tula State University – Series “Economic and legal sciences”. – 2011. – № 2. – P. 92–96. 2 Firsova A., Narhova A. University as a driver of regional economic development: challenges and prospects // Publishing House of Saratov University. – Series “Economy. Management. Law”. 2013. – Volume 13, – issue 2. – p. 223-226.

264

facilities, videoconferencing equipment, reference libraries, high-speed internet connections. Universities often serve as a catalyst for the projects implementation involving new technologies that presuppose private sector funding. A significant role for universities lies in strengthening human potential and resources. As well as for other enterprises with the participation of talented (highly educated) people, the ability of universities to attract and retain highly skilled personnel is the most important. To succeed, universities must be staffed with skilled researchers and managers. In small and remote towns this process can be very difficult and specialists in economic development are aware about this. Economic development experts must recognize the importance of this activity and identify the areas of assistance they can provide to the university administration through various services and consultations.

The university works in two directions: creating opportunities for academic study and research works. When implementing academic programs, the university's activities in shaping the current and future labour market are important for the economic development of the region. With regard to research, the directions (recommendations) of university partners may lead to commercialization and increased competitiveness.

An economic development specialist who spends his/her time on fully exploring the university's opportunities will contribute to the relationship between the university and the private sector development. Like organizations for economic development, the university must constantly demonstrate the relevance (importance) of its activities, especially in relation to the commune needs in which it is located. For example, the Canadian University of New Brunswick (University of New Brunswick) plays a major role in the social and industrial evolution of the province. Research and training make a significant contribution to the forestry, e-commerce, engineering, geology and other industries development in the coastal zone and beyond. Research and coordination programs within the university can be a valuable source of information and contribution to new technologies in industrial sectors1.

Another important factor in terms of a university's role as a development driver is the generation of active academic collaboration and 1 Zhikharevich B. University as a factor of local economic development // Economics of Education. – 2014. – №3. – pp. 42-46.

265

networking. University campuses are core points for academic and personal networks (interconnections), which are very significant in their scale.

Universities serve as the guide for external business information, sources of analysis and knowledge and industrial information. Universities can create the basis for the various association formations as has been done by the University of Waterloo, on the basis of which the Canadian Association of Economic Development Specialists has been formed. In small cities, the organizational capacity of universities to hold conferences and other business meetings is an opportunity to promote business development.

One of the modern tools for attracting business and investment into the territory is the creation of business incubators. Business incubators are "programs" that are implemented in appropriate premises and in the corresponding areas and are designed to ensure successful start and rapid development of new business through a set of resources and business support services offered by the incubator. Such services and resources are provided both within the business incubator and through a network of advisory services. Incubators vary in terms of service delivery, according to their organizational structure and type of customers they serve. They can be profiled, that is, they are oriented to a certain product or service, for example, innovative incubators, IT-incubators or "green" incubators1.

It is important to consider the economic assessment of the University's influence on the territory development. In the vast majority of statistical studies, the main focus is on determining the economic impact of universities on local development by the following criteria:

1. Income and expenses of universities. The structure of the proceeds to the university is analyzed, in particular, the ratio of funding from public and private sources, and the structure of expenditures. It also examines their share in the country's GDP and the impact of university expenditures on the enterprises development that are part of its supply chains.

2. University as an employer. The number of university students and jobs that exist or are created through the university's activities are estimated, for example, through procurement, promotion of start-ups,

1 Vasylchenko G. Planning of territorial communities development. A manual for local self-government officials / G. Vasilchenko, I. Parasyuk, N. Yeremenko / Association of Ukrainian Cities – K., "VNA ENTERPRISE", 2015 – 256 p. – P.24

266

attracting foreign students, etc. Thus, according to Deloitte, every 10 foreign students create 2.9 jobs. In addition, the level of employment among university graduates is analyzed.

3. University as a driver of innovation. The University's influence is manifested both in the innovative scientific research conduct and the results implementation, and in the innovative ecosystem creation, platforms for the investors and researchers interaction1.

4. University as a factor in the region and the city development. The influence on employment, development of local business, especially small, attraction of students to the region, visitors of events organized by the university, promotion of local community development (for instance, additional training for different groups of the population) is analyzed.

Currently, the importance of the educational services market for the countries and regions economies is increasing, as evidenced by the economic indicators of the educational services market functioning since the end of the last century2. It has to be noted that in most European countries, in the structure of the educational market, income from living expenses exceeds the income from tuition fees. This is especially relevant for countries with free of charge education, such as France, Germany, Czech Republic3. According to approximate estimates, the global educational market (in terms of university services) in the coming years may grow to 90 USD billion4.

In some countries, the export earnings from education are so significant, which is one of the main sources of country income. For

1 Jankowska O. The role of universities in the economic development of cities, regions, countries. Report of the 3rd National Forum "Business and Universities" / O. Yankovsky, A. Zinchenko. – Bublished by. M. Saprykina. – Kyiv, 2015. – p. 11. 2 Etzkowitz H., Leydesdorff L. The triple helix–university–industry–government relations: a laboratory for knowledge-based economic development // EASST Review. – 1995. – № 14 (1). – Р. 14–19. 3 Kutsenko V. Social sphere: the reality and contours of the future (questions of theory and practice): monograph / V. Kutsenko; editor Doctor of Economics, Professor, member of NAS of Ukraine B. Danylyshyna – Nizhyn: Publishing House “Aspect-Polygraph Ltd”, 2008. – 818 p. – P.56. 4 Garashchuk O. Socio-economic aspects of higher education development in Ukraine: diss. ... Candidate of economic Sciences: 08.09.01 / Elena Vasilivna Garaschuk. – NAS of Ukraine; Council for the Study of the Productive Forces of Ukraine. – K., 2007. – 231 p. – P.72.

267

example, higher education in the United States is the fifth largest in terms of services that are exported to the country1.

Exports of educational services by the Organization for Economic Co-operation and Development (OECD) provide $ 30 billion, representing 3% of the total exports of services from participating countries2.

Therefore, universities are a modern powerful development driver that performs an important function of territorial development and forms a powerful potential for innovation stimulation and demonstrate unambiguous features of investment attractiveness. The university development has to be part of strategic territorial planning and strategy. It is important to establish fruitful inter-university co-operation, i.e. between Polish and Ukrainian higher educational institutions, the formation of joint development programs and educational and research policies, especially in cross-border territories. Each year, Ukraine and Poland bring the level of educational cooperation closer to common methodological and regulatory approaches, regulations and requirements. It gives grounds to claim that universities ought to become powerful drivers of not only economic growth, but also socio-cultural cooperation.

1 lbid. – p.57. 2 Voinova O. World Education Market. Electronic Resource / O.Voinova // Sociology of education. – 2008. – №1. – p. 72. – Access mode: http://library.uipa.kharkov.ua/-library/BD/BolonProz/3_Stati_iz_periodicheskih_i_prodolgaugshiesa_izdaniy/soc_obr_sov_soc_prob.htm.