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ORDER OF THE CABINET OF MINISTERS OF UKRAINE

of April 1, 2014 No. 333-r

About approval of the Concept of reforming of local self-government and the territorial organization of the power in Ukraine

1. Approve the Concept of reforming of local self-government and the territorial organization of the power in Ukraine which is applied.

2. To the Ministry of Regional Development, Construction and Housing together with interested central and local executive bodies with the assistance of local government bodies and their All-Ukrainian associations to develop and to submit to three-months time in accordance with the established procedure to the Cabinet of Ministers of Ukraine the draft of the actions plan on implementation of the Concept approved by this order.

Prime Minister of Ukraine     

A. Yatsenyuk

       

Approved by the Order of the Cabinet of Ministers of Ukraine of April 1, 2014 No. 333-r

The concept of reforming of local self-government and the territorial organization of the power in Ukraine

The problems requiring the solution

In Ukraine the constitutional foundation of local self-government ratified by the European charter of local self-government is laid, number of the basic regulatory legal acts creating legal and financial basis of activities of local government bodies is accepted.

However since adoption of the Constitution of Ukraine and basic regulatory legal acts concerning local self-government development of local self-government it was actually performed at the level of territorial communities of the cities of regional value as the vast majority of territorial communities because of their excessive dissociation and extremely weak material and financial base appeared insolvent to carry out all powers of local government bodies.

The system of local self-government does not satisfy requirement of society for today. Functioning of local government bodies in the majority of territorial communities does not provide creation and maintenance of the favorable vital circle necessary for all-round development of the person, its self-realization, protection of its rights, provisions to the population by the local government bodies created by them organizations and the organizations of high-quality and available administrative, social and other services in the corresponding territories (further - public services).

Since 1991 the number of rural population decreased by 2,5 of one million people, and the number of rural settlements - by 348 units. At the same time the number of village councils increased by 1067 units.

In Ukraine about 12 thousand territorial communities are formed, in more than 6 thousand communities the number of inhabitants constitutes less than 3 thousand people, from them in 4809 communities - less than 1 thousand people, and in 1129 communities - less than 500 people, in most of them executive bodies of the relevant village councils are not created, there are no organizations, the municipal companies, etc. Local government bodies of such communities practically cannot perform the powers conferred to them by the law.

Dependence on subsidies of 5419 budgets of local self-government makes more 70, 483 territorial communities for 90 percent containing at the expense of means of the government budget.

Implementation of continued financial support through district budgets of small territorial communities with use of system of grants of equalization is burdensome for the government budget and constrains development of the small cities and large settlements.

Enhancement is required also by system of the territorial organization of the power for the purpose of increase in effective management of social development in the corresponding territory.

Preserving disproportion of the administrative-territorial device as bases of existence of the irrational territorial organization of the power (lack of the complete territory of administrative and territorial unit of basic level, stay of territorial community of the village, settlement, city as a part of other territorial community or in the territory of other administrative and territorial unit, territorial community of the area in the city) leads to the conflict of competence both between local government bodies, and between local government bodies and local executive bodies.

Carrying out structural reforms will allow to reach steady economic effect on condition of harmonization of priorities and stages of the specified reforms with reform of local self-government and the territorial organization of the power.

Now the effective and bystry solution is required by the following problems:

quality degradation and availability of public services owing to resource insolvency of the vast majority of local government bodies to perform own and delegated powers;

wear of thermal, sewer, water supply systems and housing stock and risk of emergence of technogenic catastrophes in the conditions of limitation of financial resources of local self-government;

difficult demographic situation in the majority of territorial communities (aging of the population, devastation of the rural territories and the monofunctional cities);

inconsistency of local policy on social and economic development with real interests of territorial communities;

backwardness of forms of direct democracy, insolvency of members of communities to the solidary actions directed to protection of the rights and interests in cooperation with local government bodies and local executive bodies and achievements of overall objectives of development of society;

decrease in level of professionalism of officials of local self-government, in particular owing to low competitiveness of local government bodies in the labor market, decrease in level of prestigiousness of positions that leads to low performance of management decisions;

corporatisation of local government bodies, closeness and opacity of their activities, high level of corruption that leads to decrease in efficiency of use of resources, deterioration in investment appeal of the territories, growth of social tension;

excessive centralization of powers of executive bodies and financial material resources;

discharge of local self-government from the solution of questions in the sphere of land relations, strengthening of social tension among rural population owing to lack of ubiquity of local self-government.

The specified problems become complicated because of problems of legal and institutional nature, and also inconsistency of reforms in various spheres with reforming of system of local self-government and the administrative-territorial structure of the state.

Concept purpose

The purpose of the Concept is determination of the directions, mechanisms and terms of forming of effective local self-government and the territorial organization of the power for creation and maintenance of the full-fledged vital circle for citizens, provision of high-quality and available public services, formation of institutes of direct democracy, satisfaction of interests of citizens in all spheres of activity in the corresponding territory, coordination of interests of the state and territorial communities.

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