Modern Financial Instruments for Community Development: Moving away from budgetary paternalism by Anna Munko examines the possibility and facts of using modern financial instruments for the gradual development of communities in Ukraine. The article focuses on the transition of local communities from a paternalistic (budgetary) approach to financing local development to more sustainable, flexible and, accordingly, independent financial strategies.
The article identifies the urgency of the need for local governments to start actively implementing all possible financial instruments to implement urgent community projects, while gradually moving away from significant dependence on financial support from the central budget.
Current challenges include understanding and effective use of such instruments, despite their relative complexity compared to traditional subventions and grants.
The paper examines in detail the various types of financial instruments (municipal bonds, loan guarantees, venture capital and possible technical assistance programs) that can be effectively combined to actively support the socio-economic development of communities and significantly reduce the corresponding costs. The article emphasizes the need for a comprehensive combination of various financial instruments in order to maximize their effectiveness through a cumulative effect and simultaneous reduction of the risks associated with it.
As a result, it can be noted that financial activities are crucial for the entire mechanism of managing sustainable community development, and the competitive advantage of each individual community lies in its use of unique resources specific to it and the introduction of effective and public management to further maintain and improve its existing competitive position.
Link to the document: https://journals.academ.vinnica.ua/index.php/eco-pa/article/download/53/50/50