Governance of the regional development in the conditions of financial decentralization

Abstract

The chapter examines the theoretical foundations of regional development governance in the context of financial decentralization. It reveals the essence of decentralization as a process of transferring powers, resources, and responsibilities from central authorities to local self-government bodies. Particular attention is paid to financial decentralization as an important factor in strengthening the capacity of territorial communities, ensuring the effective use of financial resources, improving the quality of public services, and stimulating the socio-economic development of regions. The study analyzes the main scientific approaches to understanding decentralization, its forms, advantages, and potential risks. It substantiates that financial decentralization contributes to strengthening local autonomy, increasing citizens’ participation in solving local issues, enhancing the responsibility of public authorities, and creating prerequisites for the inclusive development of territories. At the same time, the chapter emphasizes the need for a balanced distribution of powers and financial resources between different levels of governance, the improvement of inter-budgetary relations, and the consideration of regional specificities in the implementation of decentralization reforms. The chapter is of scientific interest to researchers, specialists in public administration, regional economics, local self-government, and public finance, as well as to practitioners involved in the development and implementation of regional development policy.