ENSURING LOCAL ECONOMIC DEVELOPMENT OF COMMUNITIES

Abstract

The relevance of the study is determined by the critical need for scientific justification of ways to increase the economic capacity of territorial communities (TCs) in the context of a systemic crisis caused by military aggression.

The loss of key production facilities, disruption of logistics and mass migration of the population require a revision of traditional approaches to local economic development.

The aim of the article is to theoretically generalize approaches to ensuring local economic development of territorial communities, as well as to identify the main tools and mechanisms for increasing the economic capacity of communities through a comprehensive comparative analysis of theoretical concepts with practical empirical data.

 The study is based on a comparison of two key theoretical planes. On the one hand, the concept of L. Pronko defines TCs as fundamental links of the national economy, emphasizing the need to implement seven key mechanisms of sustainable development, among which the dominant role is assigned to attracting investment, stimulating SMEs and generating innovations.

On the other hand, the concept of G. Dzheghur and A. Still systematizes crisis challenges that are universal for all communities in conditions of military conflict: The research methodology is based on a comparative analysis and synthesis of theoretical provisions with empirical data on the example of the Kharkiv region and the city of Kharkiv. The analyzed data include: financial dynamics (structure and volumes of financing of programs of the Kharkiv region Development Strategy); empirical indicators (dynamics of the recovery of the consumer market of the city of Kharkiv); institutional aspect (analysis of the mechanism for developing the Strategy Implementation Plan with the involvement of a wide range of stakeholders).

Analysis of the financing of the Kharkiv Region Development Strategy revealed the critical dependence of the region on centralized budget support. Empirical indicators of the functioning of the consumer market of Kharkiv demonstrated the exceptional viability of the business and the ability to quickly recover: The scientific novelty of the article lies in the comprehensive comparison of normative-theoretical strategic priorities with real financial-empirical indicators of the front-line TG activity.