Industrial recovery and regional development impossible without decentralization

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Industrial recovery and regional development impossible without decentralization

Decentralization is one of the key components of industrial recovery and the economy in the regions as a whole, as local authorities now lack the power to take important decisions and fall short of appropriate funding to develop their respective territory.

This is the conclusion reached at an expanded meeting of the Anti-Crisis Council of Non-Governmental Organizations of Ukraine and the Board of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) entitled: "Strategic Priorities of the Investment Potential of Kirovograd Region," which took place in the city of Kirovohrad.

"It is extremely important to build a strong, modern and transparent system of state power in a country amid global risks. A key point in this issue is personnel policy, which should be based solely on high professional and moral qualities and the ability of a human being, an official and a manager. After a huge death toll and losses during the Revolution of Dignity and military operations in the east, our citizens will not any longer tolerate the imitation of reform or illusion of improvements created by the authorities. Definite steps must be taken. It's the best time now to introduce positive, nationwide changes while a new, patriotic society that wants to live in line with high standards in a country where laws are respected and people can realize their potential is now being formed, ULIE President and head of the Anti-Crisis Council of Ukraine's NGOs Anatoliy Kinakh said. He stressed that it is the responsibility of officials, their patriotism and commitment to serving the state and the people that lay the groundwork for the successful implementation of decentralization reforms.

"The government in Ukraine is too centralized; this does not allow the regions to develop. It will be a great achievement for Ukraine if real powers and responsibilities are transferred to communities and local governments in the end. For example, there are extremely strong mining enterprises in Kirovohrad, which account for 80% of Ukraine's total uranium production. But the local community doesn't earn anything from the activity of such giants, as all royalties from the production of mineral resources and land rent are transferred to the center," Kirovohrad Regional Governor Oleksandr Chornoivanenko said. In his view, this situation leads to a gradual extinction of towns and villages, as the decline in the economic well-being of the residents is followed by social and cultural deterioration.

The absence of real tools to manage the economic situation does not allow the regions to attract investment, and even land-related issues are resolved through consultations with the central authorities. Local officials pledge they have enough human capacity to implement decentralization in the regions.

"Decentralization should be filled with real content and supported by resources and powers of local authorities and communities. And now this reform is facing certain resistance, particularly from representatives of middle-ranking officials. They still go to Kyiv, schedule meetings with [central executive] officials, asking either for grants or subsidies. But such circumstances are conducive to corruption and the lack of transparency. This system should be drastically changed," the ULIE president said.

Participants in the meeting particularly stressed the need to strengthen the accountability of officials for all their decisions and insisted on prompt and decisive reforms.