CURRENT TRENDS OF TRANSFORMATIONAL CHANGES IN THE MANAGEMENT OF ECONOMIC DEVELOPMENT OF REGIONS IN THE CONDITIONS OF DECENTRALIZATION

Abstract

The article examines current trends in transformational changes in the management of regional economic development under conditions of decentralization. It is substantiated that decentralization reforms significantly transform the institutional architecture of regional governance by redistributing powers, resources, and responsibilities among different levels of government, which directly affects the effectiveness of regional economic policy implementation. Particular attention is paid to the increasing role of regions as active actors of socio-economic development in the context of globalization challenges, structural economic shifts, and intensified territorial competition.

The purpose of the study is to substantiate and develop theoretical and methodological foundations for identifying modern trends in transformational changes in the management of regional economic development in the context of decentralization. The research is based on an institutional approach, the theory of multi-level governance, and the concept of sustainable development, which enables a comprehensive analysis of the relationship between institutional transformations, governance mechanisms, and regional economic outcomes.

The study reveals that the effectiveness of transformational changes largely depends on the institutional capacity of local self-government bodies, the quality of coordination between different levels of governance, and the ability of regions to mobilize their endogenous development potential. Key challenges of the current stage of decentralization are identified, including asymmetry in regional socio-economic development, uneven distribution of financial and resource capacities, and limited managerial competencies at the local level.

It is proven that the formation of effective models for managing regional economic development requires the integration of multi-level governance principles, institutional development, and sustainable development approaches aimed at ensuring long-term economic resilience and competitiveness of regions. The research findings may be used in the development and implementation of regional development strategies under decentralization reforms.