The Directions of Formation of Cooperation of Territorial Communities in the Sphere of Ensuring Local Economic Development

Abstract

The study reveals the relevance of the problem of cooperation between territorial communities in the field of enhancing local economic development. The purpose of the study is to identify problematic aspects, as well as to substantiate recommendations in the part of implementing cooperation between territorial communities to ensure economic development at the local level. On the example of one of the communities of Poltava region an analysis of the state of its economic development was carried out, in particular in terms of the level and structure of entrepreneurial activity, the state of functioning and development of industry, agriculture, and other types of economic activity. Problematic aspects and prospects of local economic development of the community are identified. Promising directions of intermunicipal cooperation of the community, in particular in the areas of hub development in basic activities, are substantiated; industrial clusters and other centers of accumulation of business activity; realization of the tourist potential of the community; support of investment and entrepreneurial projects in the field of creation of enterprises in the sectors of the real sector of the economy with a high level of added value and depth of processing of products; stimulating the entrepreneurial activity of local residents. The scientific novelty of the research results in expanding the instrumentarium of intermunicipal cooperation of communities in the sphere of local economic development. The practical significance of the research results is that a list of instruments that can be implemented by territorial communities to remove obstacles and ensure more effective stimulation of local economic growth is determined. It is displayed that a particularly important aspect in the context of the development of intermunicipal cooperation of territorial communities in the economic sphere is the harmonization of fiscal stimulation policy in terms of local taxes and fees, intermunicipal cooperation in the field of resource-based and organizational support for small businesses (in particular, newly created entities), establishing cooperation between local economic development agencies and the tasks of advising local population and business, helping the population in creation of own business, its support, creation of territorial business incubators.

Keywords

• public administration
• decentralization
• territorial communities
• local self-government