DECENTRALIZATION IN REGIONAL DEVELOPMENT THEORY AS A BASIS FOR FORMING ECONOMIC MECHANISMS FOR MANAGING TRANSFORMATION PROCESSES

Abstract

The purpose of this scientific article is to provide a theoretical justification of the role of decentralization in regional development theory as a conceptual basis for the formation of economic mechanisms for managing transformation processes. The article examines decentralization as a key concept of regional development theory under the conditions of contemporary transformation processes in national economies. It is substantiated that globalization challenges, structural shifts, technological changes, and institutional reforms necessitate a reconsideration of traditional approaches to regional development management and enhance the role of regions as active actors of socio-economic transformations.

Theoretical approaches to interpreting the transformation of economic systems are generalized, and the evolution of scientific views of Ukrainian and foreign scholars on the content and nature of transformation processes, as well as their relationship with decentralization, is presented. It is shown that in modern regional development theories decentralization is considered not only as an administrative and managerial reform, but also as a fundamental institutional and economic mechanism for activating the endogenous potential of territories, increasing their adaptability, and strengthening their capacity for self-development.

The contribution of domestic scholars to the study of financial, institutional, and strategic aspects of decentralization is analyzed, particularly its impact on the formation of effective economic mechanisms for managing regional transformation processes. Emphasis is placed on the importance of multilevel governance, budgetary autonomy, and the development of local institutions in ensuring sustainable regional development. It is concluded that decentralization is a necessary condition for modernizing the regional development management system and for forming a new model of economic policy oriented toward long-term growth and enhanced territorial competitiveness.