Democratization of governance as the basis of local economic development in Ukraine

The article considers the role of democratic standards of governance, which imply the involvement of wide layers of the population in making administrative decisions to ensure regional and local development. The real transition to the implementation of democratization of power relations in Ukraine began with the decentralization reform. The main function of local governments amid decentralization processes is to improve the territorial socio-economic condition, which is the expanded economic recovery of the territory, using the real benefits of democratization and decentralized governance. This article analyzes the stages of decentralization and illustrates the main legislative and regulatory guarantees of this process. The determination of financial resources available to local governments plays a special role in the economic development of territorial communities. The article also scrutinizes changes in local budget revenues of Ukraine over the past six years. The formation of the participatory budget as a component of government democratization as well as the development of public confidence in government is typified. In conclusion, the importance of continuing the decentralization reform and maintaining the society’s progress towards democratization is determined.