WAYS TO INCREASE THE EFFICIENCY OF STATE (PUBLIC) INVESTMENT AT THE NATIONAL, REGIONAL AND LOCAL LEVELS OF GOVERNMENT
Abstract
The article addresses the identification of problems in state (public) investment at the national, regional, and local levels of governance, and explores ways to enhance its effectiveness. The research relevance is driven by the fact that Ukraine’s recovery requires large-scale state (public) investment at various levels of governance and ensuring its maximum effectiveness. The effectiveness of state (public) investment will be the primary criterion of success, and it will also contribute to Ukraine’s recovery and the reconstruction of its domestic economy. The theoretical and methodological framework of the study relies on the academic works of foreign and Ukrainian scholars, as well as data from authoritative international organisations, in particular the Organisation for Economic Cooperation and Development (OECD), the International Monetary Fund, and the World Bank. The study of scientific problems related to the peculiarities of state (public) investment and improving its effectiveness was carried out using methods of critical and scientific analysis, scientific generalisation and systematisation, induction, and deduction. The article analyses the problems of public investment at the national, regional, and local levels and identifies factors negating its effectiveness. It is argued that the effectiveness of state (public) investment is closely associated with the quality of governance at the national, regional, and local levels. As a result, more effective state (public) investment is crucial for the recovery and sustainable development of Ukraine’s economy. Problematic aspects in the management of state (public) investments in Ukraine are specified following the Diagnostic Assessment of Public Investment Management conducted by the World Bank in 2021, namely: strategic prioritisation, selection based on criteria, a project database, formalised criteria and project management mechanisms, investment portfolio management, and systematic monitoring of investment projects at each stage of their implementation, a pool of professional managers for large-scale projects in government agencies, and independent expertise. Factors hindering the effectiveness of state (public) investment in Ukraine are considered. The ways of improving the effectiveness of state (public) investment at the national, regional, and local levels are proposed.
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