Abstract
The effectiveness of the Economic Department's work is a critical factor in ensuring stable development both at the state level and within local governing bodies, particularly in the context of decentralization and subsidiarity. Enhancing performance in the economic sector through the implementation and application of recommendations is a vital aspect of sustainable development for any territorial unit. This, in turn, ensures an adequate standard of living for citizens. The study aims to develop recommendations to improve the efficiency and effectiveness of the Economic Department of the Kryvyi Rih City Council by optimizing the management of the city's key economic sectors, implementing modern approaches, and adapting international practices to local conditions. The object of the study is the management of Kryvyi Rih's economic sectors—industrial, agricultural, investment, and small- and medium-sized enterprises—considering their influence on the region's economic growth. The research is based on a comprehensive approach to analyzing the city's economic processes.
The Department of Economic Management for Cities and Territorial Communities plays a crucial role in ensuring sustainable development and improving the well-being of residents. It leverages expanded powers granted through decentralization and the principle of subsidiarity.
Since the second half of the 2000s, Ukraine has undertaken a decentralization reform aimed at consolidating administrative-territorial units, encouraging voluntary community amalgamation to enhance financial capacity, delegating certain powers to local self-government, fostering intermunicipal cooperation, and increasing financial resources for local budgets through tax redistribution and additional state transfers.
The principle of subsidiarity is the foundation of decentralization, ensuring management efficiency when properly implemented. Financial autonomy of local self-government, in accordance with the European Charter of Local Self-Government, requires sufficient resources to fulfill its responsibilities.
In Kryvyi Rih, one of Ukraine's leading industrial centers, effective management of economic processes is of particular importance. To enhance the performance and efficiency of the City Economic Department, it is necessary to implement modern approaches to managing the city’s economic sectors and to improve the existing mechanisms that underpin the development of various industries.
The «Social, Economic, and Cultural Development Program of the Kryvyi Rih District for 2023–2027» outlines the key areas of economic development managed by the Economic Department of the Executive Committee of the Kryvyi Rih City Council. This program includes four main sectors: industrial, agricultural, investment, and the development of small and medium-sized enterprises.
Based on the data from the real sector of Kryvyi Rih's economy, several recommendations have been developed to improve each sector individually.
As Kryvyi Rih is one of Ukraine’s industrial giants, and the development of industry is a key component of the city's real sector, special attention should be paid to modernizing the industrial capacities of major enterprises like ArcelorMittal Kryvyi Rih and Metinvest. This modernization aims to enhance competitiveness, environmental sustainability, and energy efficiency. These improvements are essential for the sector’s resilience amid constant challenges such as war and regional economic instability.
Agriculture in Kryvyi Rih is another vital sector, ensuring food security for the region and forming the basis for export development. It is recommended to implement advanced agro-technologies in this sector to increase crop yields while preserving soil quality. Additionally, developing organic production can address the growing demand for eco-friendly products. Upgrading agricultural storage and logistics infrastructure will minimize post-harvest losses. These measures are expected to increase the demand for agricultural products not only within Ukraine but also for export to other countries, promoting the supply of environmentally clean goods.
Small and medium-sized enterprises (SMEs) and businesses are also part of the real sector of the economy in the city of Kryvyi Rih. Therefore, implementing recommendations to improve this sector is an important step toward creating a balanced economic environment in the Kryvyi Rih region. This sector requires support through reduced rental rates, expanded grant programs, the development of training initiatives in business planning and digital skills, and the active engagement of young people in entrepreneurship and business development. This can be achieved through various competitions and innovation fairs, where active youth will participate and develop diverse projects in this field.
To stimulate streamlined exports from local enterprises, it is proposed to organize training programs, support product certification, and actively involve businesses in various platforms such as «Diia.Business.»
The investment climate is the foundation for a region's economic development. Attracting capital contributes to the modernization of enterprises, job creation, and increased local government revenue. For Kryvyi Rih, as an industrial center, the formation of a favorable investment environment is a key task. The investment climate in the city can be improved by reducing bureaucratic barriers, simplifying business registration procedures, and introducing transparent mechanisms for interacting with investors. It is also important to provide tax incentives for new projects, which will stimulate capital inflows into the region. The development of an innovation infrastructure, such as startup schools, will create conditions for the introduction of new technologies. Active participation in business forums, exhibitions, and international economic platforms will allow the city to present its potential, attracting external investors. Additionally, it is important to utilize international aid programs and donor funds to implement projects that will contribute to the economic recovery and sustainable development of the region.
To augment the operational efficiency of the Economic Department of the Kryvyi Rih City Council, it is prudent to leverage international best practices, tailored to local specificities. Notable case studies from Poland, Germany, and Sweden exemplify successful approaches to sustainable economic growth, infrastructure modernization, small and medium-sized enterprise (SME) support, innovation, and export promotion.
Poland offers compelling examples of urban infrastructure revitalization, SME support, and foreign direct investment attraction. These can be emulated through the implementation of tax incentives, the development of comprehensive development strategies, and proactive city promotion at international business forums. Germany is renowned for its industrial modernization and innovation support, which can be harnessed to upgrade Kryvyi Rih's production capabilities, with a particular focus on environmentally friendly and energy-efficient technologies. Additionally, fostering technology startups and facilitating collaborations between research centers and large enterprises can stimulate innovation. Sweden excels in exports and sustainable production. For Kryvyi Rih, it is imperative to cultivate the export potential of local businesses, provide training for international market entry, and support product certification. These initiatives will enhance the city's global competitiveness.
Therefore, to enhance the performance of the Kryvyi Rih Economic Department, a comprehensive improvement of all key sectors of the city's economy is necessary. Priorities include modernizing industrial enterprises to increase their environmental friendliness and energy efficiency, implementing modern agricultural technologies, developing small and medium-sized businesses through grant programs, educational initiatives, and reducing bureaucratic barriers. Improving the investment climate, active participation in international economic platforms, and utilizing donor programs will facilitate attracting capital to the region. Adopting best practices from Poland, Germany, and Sweden will enable the adaptation of innovative approaches to infrastructure development, export promotion, and supporting technology startups. All these measures will not only ensure sustainable economic development but also improve the quality of life for residents, strengthen Kryvyi Rih's position as one of Ukraine's leading industrial centers, and increase its international competitiveness.
Keywords
References
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