THE ROLE OF MULTI-LEVEL MANAGEMENT OF PUBLIC INVESTMENTS TO ENSURE THEIR EFFICIENCY
Abstract
The article is devoted to the study of the role of coordination of multi-level management of public investments to ensure their efficiency. The relevance of the topic is due to the need for substantial public investment to restore Ukraine after the destruction caused by the Russian-Ukrainian war, and the fact that their effectiveness will be the main measure of success and will contribute to the process of restoring Ukraine and rebuilding the national economy. The theoretical and methodological basis of the study is a number of materials of the Organisation for Economic Co-operation and Development (OECD), as well as scientific works of foreign and Ukrainian scholars. The paper summarises the experience of OECD member countries (both positive and negative) in the field of multi-level governance. It focuses on the coordination of public investments vertically between levels of government and horizontally between sectors and jurisdictions as a critical aspect for maximising the return on investment for regional development. The study emphasises the importance of the development strategy for the effective implementation of public investment and outlines the specifics of its development. It is noted that the application of the territorial approach in the process of public investment allows to take into account such trends as globalisation, demographic and social changes, urbanisation, digitalisation, resource scarcity, climate change, and to identify and effectively use the opportunities created by them. The publication considers the peculiarities of vertical coordination (between national and subnational levels of government) and its advantages for increasing the efficiency and effectiveness of public investment. It is noted that it helps to overcome the problem of insufficient funding, opportunities and information, which may hinder the effective use of investment resources. The emphasis is placed on the role of subnational actors in identifying local needs and exploring the synergy of investment priorities. The features of horizontal coordination (between neighbouring or otherwise connected subnational governments) are described and it is noted that it is very effective in attracting private financing for investment.
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