Methodology for Evaluating Mechanism Effectiveness of State Management of Crisis Processes in Decentralization

Abstract

A significant factor in the transition to a new level of development of both individual regions of the country, and the national economy as a whole is the increase in the level of effectiveness of public administration measures and the implementation of real decentralization processes. The aim of the article is to substantiate the criteria and methodological approaches to assessing the effectiveness of managerial measures in the face of increasing crisis processes in the national economy and justifying ways to optimize them in the context of decentralized management. The methods of historical analysis, comparison and economic modeling have been applied. It has been determined that the development of ideas of decentralization of public administration is based on the negative consequences of excessive state intervention in the processes of regional economic development. The decentralization theory is based on the principles of rationality of collective decisions and Pareto-efficiency. It has been proved that in conditions of intensification of crisis processes, which is typical for the development of the vast majority of Ukrainian regions, the transition to the classical type of decentralization is almost impossible. Therefore, the theoretical basis for the development of the concept of new public administration in Ukraine should be its certain modification - the theory of controlled decentralization. The scientific novelty of the study is to justify the list of indicators for assessing the effectiveness of the reforms and the authors proposed algorithm for assessing the effectiveness of state management of crisis processes. The practical significance of the results is due to the possibility of using the proposed methodology in order to optimize management activities at the regional level. It has been concluded that the introduction of the decentralization process in the activities of public authorities and local self-government, the transition to institutions based on the initiative and responsibility of the individual and society, contributes to an increase in the responsibility of the authorities for the results of managerial activities, and the possibility of control by the company based on the results of these activities. Further research will be directed towards adapting the proposed methodology to the characteristics of the social and economic development of the region

Keywords

• decentralization
• controlled decentralization
• effectiveness
• methodology for assessing the effectiveness of public administration in a controlled decentralization