The study determines the peculiarities of the development of the cryptocurrency asset market in the conditions of digitalization, their legal recognition and subsequent reflection in the accounting of transactions related to their circulation. The current system of regulatory legal and accounting support for the functioning of cryptocurrency assets in accordance with the requirements of national legislation has been analyzed. A critical assessment was made of draft legislative acts regarding the recognition of cryptocurrencies as an asset of the enterprise and the order of functioning of their market as a medium of exchange. The analysis of the definition of virtual assets and cryptocurrencies from the point of view of the legal aspect of their economic essence and recognition as an asset, as well as the implementation of accounting operations for the reflection and subsequent taxation of income and expenses in the calculation of financial results from operations with them, was carried out. The main trends in the development of the world market of virtual assets and cryptocurrencies in the conditions of digitalization of the economic space have been determined. The article presents different views of scientists regarding the procedure for displaying cryptocurrency assets in accounting, and also defines the main trends of the possibility of using cryptocurrency assets as electronic money when conducting settlement operations between business entities and related warnings from official governments and central financial regulators of the virtual assets market. It is emphasized the need to form a unified approach to the definition of the concepts of a virtual asset in domestic legal acts, as well as cryptocurrency from a legal and accounting point of view, with the application of the current instruction on the application of the Chart of Accounts for the accounting of assets, capital, liabilities and economic operations of enterprises and organizations, which would later meet the requirements of international accounting standards. The main recommendations for accounting transactions with virtual assets and cryptocurrencies are presented in accordance with the requirements of international accounting standards, depending on the purpose of holding such assets.
The purpose of the study is to find a solution to problematic aspects of budget planning by analyzing the system of local finances and identifying opportunities for improving the budget planning mechanism. Because, in modern domestic science, in particular, considerable attention is paid to the issues of highlighting practical problems of the budget process and budget planning of local finances. However, there is no single definition of the concept of budget planning, its economic content, tasks and principles. To achieve the goal, general scientific methods were used: the method of scientific generalization ‒ to confirm the relevance of research in modern conditions; analysis and synthesis ‒ to understand the processes of reforming the territorial organization of power on the basis of decentralization as one of the key directions of systemic social transformations in Ukraine; scientific extrapolation and forecasting ‒ for further understanding that the local budget is gradually turning from a purely financial mechanism into a powerful means of influencing public opinion. The main results of the research, which form its scientific novelty, were: the search for a solution to problematic aspects of budget planning by analyzing the system of local finances and identifying opportunities for improving the budget planning mechanism, identifying the essence of the concept of «budget planning» and substantiating the organizational and legal foundations of budget planning; disclosure of local budgets as a link of the budget system with a presentation of the current state of the budget and budget indicators of the united territorial communities of Ukraine; coverage of the peculiarities of planning local budgets with a presentation of the problems of forming local budgets and ways to solve them. The practical significance of the obtained results is determined by the provisions of scientific novelty and the possibility of using research proposals and recommendations in the field of practical activities of local financial bodies of all levels, executive bodies of local councils, local state administrations, and relevant local councils.
Introduction. Despite the active military actions, a strategy for the further development of the Ukrainian state is being formed today. The strategy requires a specification of an effective mechanism for accumulating and allocating society's financial resources. Representatives of economic science and specialists of state authorities are working to calculate the quantitative parameters of such a financial mechanism. However, the qualitative characteristics of financial foundations for future social organization remain insufficiently transparent and understandable. Among them, the power factor plays a leading role. The purpose of the article is to substantiate the theoretical foundations of the role of finance in the post-war reconstruction of Ukraine through the prism of the functioning of the institution of power. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, theoretical generalization, and abstract-logical method. Results. As a result of the study, the necessity of identifying priorities for the development of Ukrainian society and the national economy from the standpoint of the formation and functioning of the centers of financial power is substantiated. These priorities include civil society, public administration institutions, local self-government bodies, business, as well as public and private, real and financial sectors of the economy. Balancing economic interests and capabilities of the centers of financial power requires purposeful changes in the areas of taxation and use of state financial resources, modernization of the real sector of the national economy on an innovative basis, and development of financially capable civil institutions and business communities. Conclusions. Taking into account the factor of financial power, main directions of the further development of Ukrainian society are democratization of social relations, deregulation and liberalization of economic relationships, decentralization of the process of distribution and redistribution of the GDP value, definancialization and full achievement of the goal of the fiscal decentralization policy.
Анатолій Карпук, Vasyl A. Holian, Rostyslav A. Butsenko
It is substantiated that the main capital of forestry economy includes the technical-technological, production-economic and natural-resource components, which requires the formation of a modern model of ecological and economic regulation of its reproduction to prevent the processes of exhausting and unbalanced forest use. It is determined that at the present moment the decisive influence on the paces, proportions and scale of reproduction of the main capital of forestry economy is exercised by the processes of European integration, digitalization and decentralization, which to some extent is reflected in the State Strategy for Forest Management of Ukraine until 2035. Studies have shown that in 2013–2021 in the dynamics of most articles of capital expenditures for the purchase of production equipment, cars, devices, machinery and mechanisms, there is an upward trend, owing to both the real growth of capital investments and devaluation-inflationary processes. It is revealed that in 2013–2021 there is a reduction in total capital expenditures for the purchase of road construction equipment, which reduces the ability of permanent forest users to develop a network of forestry roads. It is substantiated that deepening the digital transformation of the forest management system and the movement of forest products requires an increase in capital expenditures in the acquisition of modern software and other information and digital technologies, which will lead to an increase in the share of intangible assets in the structure of main capital of forestry economy. It is found that in recent years certain institutional prerequisites have been formed for diversification of sources of financial and investment support for the reproduction of fixed capital of forestry economy due to an increase in the volume of bank lending and additional attraction of foreign investments. It is proved that a perspective institutional form of diversification of sources of financing for the reproduction of main capital are public-private partnership agreements, which will ensure the consolidation of resources of the public and corporate sectors to accelerate the processes of expanded reproduction and economic development of the forest resource potential of the country.
Implementation of regional problems of socio-economic development of territories depends on the efficiency of local authorities. An important factor in the implementation of these programs is the sufficiency of their own financial resources at their disposal. This problem had to be overcome by the reform of budget decentralization, according to which each local authority should provide a decent level of primary and basic public services for the population. Russian military aggression added even more problems to local communities: causing mass migration and stopping business, the need to solve humanitarian, communal, migration problems, and rebuild destroyed housing. In 2015–2022, the structure of local budget revenues changed: the share of transfers in revenues and the share of subventions in the total amount of transfers decreased. This was influenced by the following factors: changes in the payment of a single tax, personal income tax deductions to local budgets, cancellation of medical and some social subsidies, cancellation of transfer of reverse subsidy. Factors that influenced the structure of the revenue base of local budgets also affected their spending part. The change in the composition of interbudgetary transfers is directly related to the reduction of spending powers of local authorities and the change in the mechanism of financing budget programs in the field of education, health care, social protection and social security. However, the decrease in the share of local budget expenditures on the social sphere occurred at a slower pace than the decrease in the amount of subventions to local budgets for these purposes. This indicates the growing role of local budgets in financing programs of local importance and is a positive result of the budget decentralization reform. The full-scale war of 2022 showed how financially stable local authorities are and whether they are able to withstand any changes in the financing of their powers with dignity. After all, the local government, in addition to continuing to provide public services at a high level, has taken on additional responsibilities: ensuring territorial defense activities, assisting the Armed Forces, supporting relocated businesses, assisting internally displaced persons, preparing shelters, etc. Of course, such opportunities were influenced by the reform of budget decentralization, which enabled local authorities to obtain their own sources of financial resources, which played a key role in facing challenges.
Central banks may shift their international reserve holdings in order to protect themselves ex-ante against the risk of financial sanctions by fiat reserve currency issuers. For example, from 2016 to 2021, countries facing a higher risk of US sanctions increased the gold share of their reserves more than countries facing a lower risk of US sanctions. This paper explores the potential for Bitcoin to serve as an alternative hedging asset. I describe a dynamic Bayesian copula model to simulate the joint returns of Bitcoin and other reserve assets under a wide range of plausible sanctions probabilities, quantifying the extent to which varying levels of sanctions risk increase optimal gold, renminbi, and Bitcoin allocations. I conclude that sanctions risk may diminish the appeal of US Treasuries, propel broader diversification in central bank reserves, and bolster the long-run fundamental value of both cryptocurrency and gold. • The paper simulates the returns of Bitcoin and other reserve assets. • The simulations balance expected return, volatility, and sanctions risk. • In the presence of sanctions, there is no completely safe asset. • The model shows that cryptocurrency can act as a form of insurance. • Sanctions risk may propel broader diversification in central bank reserves.
Introduction. Under the modern conditions of the Ukrainian society democratization and the reform of financial decentralization, the problems associated with increasing the effectiveness of the interaction of civil society and public authorities, primarily in the context of the modernization of public finance management in Ukraine, have been significantly updated. Therefore, the development of the methodological foundations of research in the field of public finance with the help of the latest approaches is highly demanded in the current domestic realities. One of such approaches is the application of the main principles and effects of the theory of behavioural finance in justification and interpretation of financial processes and phenomena occurring in the public sector of the national economy, since behaviour of all subjects of the public finance sphere is in the coordinates of political science, psychology, ethics, political science, etc., which is most clearly manifested primarily in the budget process. However, in Ukraine, the specified direction of scientific research needs active development, which determines the relevance of the scientific research topic. The purpose of the article is to substantiate the methodological foundations of research in the field of public finance in Ukraine through the prism of the concept of behavioural finance. Results. The article considers the main aspects of the functioning public finance in Ukraine from the standpoint of behavioural approach. Based on the study of existing points of view, theoretical approach to interpretation of the essence of public finance was formed, the main problems of interaction between citizens and public authorities in the context of public finance management were identified, and directions for their solution were proposed, taking into account the developments of the behavioural finance theory. Conclusions. The identification of key features and the most important problems of public finance functioning in Ukraine, as well as the analysis of the impact of the main effects of behavioural finance (in particular, the “framing effect”, “social influence effect”, “pushing effect”, “conservatism effect”, “trap effect”) made it possible substantiation of vectors for improving public finance management in the context of strengthening interaction between civil society and public authorities in Ukraine.
B a c k g r o u n d . Strengthening the financial basis of local self-government takes on archival importance, considering the economic circumstances of the wartime and post-war reconstruction of the territories of Ukraine. In this regard there is a need to improve the local finance management system and develop its institutional support in conditions of financial decentralization. Theoretical and practical aspects of management in the field of local finances, inter-budgetary relations, financial relations of local self-government bodies in the context of decentralization are considered in the works of domestic scientists: V. Bodrov, V. Vakulenko, I. Volokhova, N. Honcharuk, V. Gornyk, A. Degtyar. The strengthening of the financial basis of local selfgovernment in the process of the post-war recovery of the economy of Ukraine is studied in the works of Z. Varnalij, I. Vertsiuk, Ya. Zhalilo, M. Kosheliuk, I. Ozymok, O. Sokolova, U. Thomann and others. Implementation of financial decentralization, management of local finances is considered by such foreign scientists as: J. Buchanan, A. Wagner, R. Musgrave, W. Oates, P. Samuelson, J. Stiglitz, H. Zimmerman, F. Fukuyama, J. Schumpeter and others. It remains expedient to search for institutional mechanisms for further reforming the financial relations of local self-government bodies, models for managing inter-budgetary relations, sources of financing local budget expenditures, and expanding public control mechanisms in the process of managing local finances under conditions of decentralization. The purpose of the article is the scientific and theoretical justification of the institutional transformations of the local finance system of Ukraine and the development of practical recommendations regarding the mechanisms of its development in the context of the decentralization of state administration. The tasks of the article are to consider the existing problems and outline the prospects for ensuring the processes of financial decentralization, to propose mechanisms for the necessary institutional transformations in the system of local finance of Ukraine and tools for their implementation. M e t h o d s . The article was carried out with the help of modern theoretical and cognitive methods, the dialectics of the processes of public administration and local self-government in the conditions of financial decentralization and reforming of local finances. Methods of system analysis, synthesis and comparisons, historical, logical, deductive methods and modeling were also used. The research used the theory of public choice, public goods and the structural-functional approach to improve the management of budget funds in conditions of decentralization. R e s u l t s . It is claimed that the pre-war experience of active implementation of the decentralization reform in Ukraine gave positive results, from which it is necessary to move on, and further develop and improve this vector. It was determined that institutional transformations should take place within the framework of financial support system structural elements of local self-government – budgets of different levels. The mechanisms of the necessary institutional transformations in the local finances system in Ukraine and the tools for their implementation are proposed. In particular, such a method of improving the local finances system as budget cooperation is proposed. The Law of Ukraine norms "On Cooperation of Territorial Communities" have been analyzed and proposals have been made to expand the regulatory influence of the specified law regarding budget cooperation procedures. Attention was focused on the importance of training modern personnel of local self-government bodies that implement policies in the sphere of budget, finance and prices. The importance of the development of the institution of civil society is also emphasized. Emphasis is placed on the expansion of models and forms of self-organization bodies cooperation of the population in the processes of control and supervision of the local self-government bodies activities in the local finances field in Ukraine. C o n c l u s i o n s . Therefore, the goal of institutional transformations of the local finance system of Ukraine in the context of decentralization is to significantly expand the capabilities of local self-government bodies to independently manage all socio-economic processes at the level of territorial communities and to establish connections between regions, the symbiosis of which can bring the desired effect for the economy of the entire country. Such changes should be synchronized with the changes envisaged by the plan for Ukraine to acquire the status of an EU member state. Our proposals are designed to improve the quality of local self-government and encourage further scientific research in the field of local finance management in Ukraine.
Introduction. The functioning of decentralized autonomous organizations (DAOs) is based on the principles of blockchain technology and smart contracts. The functioning of the DAO is based on the understanding and compliance of smart contracts, the activity and participation of participants, as well as the development and resolution of emerging challenges in this experimental field. The purpose of the presented work is to determine the main features of the functioning of decentralized autonomous organizations and to present a conceptual approach to the development of the presented organizations. Materials and methods. The main information base of the research is the works of leading scientists in the field of digital economy, the implementation of digital technologies, the problems of the management decentralization system at its various levels, and the use of modern management and digital tools to ensure the optimization of management decisions. The main methods of research are methods of analysis, synthesis, comparison, induction, deduction and a graphic method for visual display of the presented research results. Results and discussion. The essence of decentralized autonomous organizations is to create an ecosystem in which management and decision-making is carried out on the basis of blockchain technology and smart contracts. The basic idea is that DAOs have no centralized governing body or leadership. Decisions are made collectively by members of the organization. The main mechanism of management and interaction in the DAO is smart contracts, which are software codes on the blockchain. They automate the execution of agreements and define the rules of the organization. Cryptocurrency and tokens are used for funding and participation in DAOs. Members can purchase tokens that give them the right to vote and participate in the organization's decisions. All transactions and decisions are recorded in the blockchain, which guarantees transparency and irreversibility of actions. Information is open to all participants. Conclusions. Decentralized autonomous organizations are a paradigm of a new approach to organizational management and interaction of participants, aimed at increasing transparency, democratization and autonomy in resource management and decision-making. Success largely depends on the ability to understand risks and resolve technical and legal issues, as well as community support and participation of qualified professionals in the development and evolution of the DAO concept.
The processes of digitization and rapid development of information technologies have a direct impact on the transformation of modernity. The sphere of finance did not bypass these processes. A few dozen years ago, it became impossible to pay for services and goods without having a physical monetary unit with you, but now cashless transactions are being given more and more advantages. But today requires consideration of the issue of the functioning of a new type of currency, "cryptocurrencies", which have appeared very recently and began to develop rapidly. Such innovations need to be sensibly and legislated correctly, based on the prevailing principles of law. The article examines essential issues that clearly demonstrate the main problems that need to be resolved by legislators in order to legalize the cryptocurrencies. When studying the problem, attention was paid to the history of the creation of the first cryptocurrency and its development, others see cryptocurrency and their differences among themselves, the principles of operation and the advantages of using such currencies. At the current stage, there are already more than two thousand types of cryptocurrencies, but this is not the final number of such currencies, because the progress of growing interest in the topic of digital money attracts the attention of more and more Internet users every day. Since development processes don’t stand still and the trend of digital money acquires new manifestations, the exceptional need to regulate such phenomena challenges the many rights systems of different countries, as well as their budgets, to properly achieve legal value and stability for the state and society as a whole. Although domestic and foreign regulation of cryptocurrencies circulation is insufficiently resolved, the analysis of information and positions of scientists and law owners gave a fairly broad identification of the growth of the cryptocurrencies circulation market and interests among citizens of both Ukraine and foreign countries. With proper research, development, and compliance with legal regulations, cryptocurrencies can gradually take a significant place in people's full lives.
Yuriy Ivanov, Olga Ivanova, O. Y. Poliakova, Viktoriia Shlykova · 5 authors
The article is devoted to solving the urgent problem of the spatial development of territorial communities on the basis of self-sufficiency and self-financing. The purpose of the article is to develop a methodology for substantiating the directions of development of territorial communities based on the ability of territories to self-development, taking into account resource availability, management capacity, financial capacity, and types of territorial community in the context of fiscal decentralization. The objectives of the study are to substantiate the priority directions of territorial communities' development; substantiation of the criteria for choosing the directions of territorial communities' development depending on their types; determination of directions depending on the components of self-development of territorial communities: self-government, self-sufficiency and self-financing on the basis of fiscal decentralization.A methodological approach to determining the priority directions of stimulating the development of territorial communities has been developed. It provides for the consistent development of methodological approaches to the analysis of resource endowment of the territory, identification of problems of development of territorial communities; modeling of the development of territorial communities based on the method of fuzzy sets; substantiation of the directions of the spatial development of territorial communities by the method of hierarchy analysis.It has been established that the spatial development of territorial communities foresees: the availability of natural, labor, production, environmental and other resources, the effective use of which leads to the formation of new and strengthening of existing advantages of the community; the formation of community development zones is impossible without the presence of effective organizational and management mechanisms in the community; the availability of a resource base for development and effective management mechanisms does not ensure the development of the territory without financial support. It is important to form own financial resources through development projects or through the cooperation of territorial communities. It is proved that self-sufficiency, self-government, and self-financing are the main components and at the same time conditions for the spatial development of territorial communities. The resource base of the territorial community is a sufficient condition for development, but the inefficiency of its management leads to a decrease in the self-sufficiency of the territory and reduces the financial capacity of the community.
The article is devoted to the research of the impact of the phenomenon of “corruption” in the state authorities on the functioning of the healthcare system in Ukraine. The article considers not only the impact of corruption on the functioning of the healthcare system in general, but also such issues as state regulation of medical institutions, redistribution of management functions in the healthcare system, granting autonomous status to medical institutions (autonomization), and financing of the healthcare system in general. The article describes the Ukrainian legislative anti-corruption regulators, institutional levers of the Cabinet of Ministers of Ukraine, local administrations and executive authorities. The author presents an organizational and economic mechanism for preventing corruption in the healthcare sector. The mechanism is based on the system of institutional and legislative regulators, and also reveals their subordination and sequence of influence. The main elements of the organizational and economic mechanism for preventing corruption in the healthcare sector are anti-corruption legislation, legalization of the healthcare market, decentralization of the healthcare management system, autonomy of healthcare institutions, openness of financial and economic activities, and transparency of information and communication activities. The presented scheme of the mechanism reflects the elements of regulatory prevention of corruption, as well as the subordination and sequence of activation of elements in healthcare management. the proposed mechanism for preventing corruption in healthcare allows for effective and anti-corruption management of healthcare institutions at all levels of subordination to state and local authorities. The author formulates conclusions regarding the possibility of corruption’s impact on the functioning of the healthcare sector. The author analyses the possibility of creating and implementing a rational organizational and economic mechanism for preventing corruption in public authorities in the context of ensuring effective regulation of the healthcare system.
Ministry of Digital Transformation of Ukraine, Yuliya PARKHOMENKO
Introduction. Сryptocurrency as a component of Ukraine's digital war against Russia. Rapid collection of funds from all over the world to help Ukraine.The USA imposes sanctions on the Russian Federation. Russia is looking for methods to circumvent sanctions. The purpose of the research work is to develop proposals for greater effectiveness of international sanctions and to find new useful methods of using cryptocurrency for Ukraine, which is part of the international financial system. Problems. Sanction packages are applied to various sectors of the economy, and following the implementation results, the following packages of sanctions are produced by the countries, so, according to the results of the implementation of sanctions, certain Russian banking institutions have been circumvented by using crypto market tools and operators that interact with sanctioned Russian banks, companies, and individuals. The use of traditional financial services, financial technologies and alternative payment services is a more effective way of circumventing sanctions in terms of volumes and costs than the use of crypto-assets.Goal. Development of proposals to increase the influence on the implementation and effectiveness of international sanctions, the need to take quick and optimal actions to eliminate the activities of many Russian cryptocurrency tools for circumventing sanctions. Materials and methods. General scientific and research methods are used: analysis, theoretical generalization, synthesis, description, comparison, observation and study of foreign mass media articles. Results. Attention was focused on Ukraine's new positive use of cryptocurrency, which is part of the international financial system, unprecedented use of new digital assets to raise funds to support Ukraine during the war. Conclusions. Crypto assets have become Ukraine's deadly weapon against Russia. Taking into account the advantages of the circulation of cryptocurrencies and virtual assets in general, the private sector in Ukraine organized charitable funds for the accumulation of resources, among which crypto funds took a leading place and were able to quickly cover the needs of defenders of Ukraine, citizens who suffered from Russian military aggression, supported socially vulnerable Ukrainian citizens. At the same time, IT specialists and amateurs organized themselves into an IT army, which was able to completely or for significant periods stop the activity of the infrastructure of the aggressor states, which slowed down the flow of resources for the continuation and escalation of military operations.
The implementation of state regional policy is closely interconnected with the reform of the administrative and territorial system, fiscal decentralization, development and stimulation of the competitive foundations of the economy, strengthening the role of local self-government. The purpose of the study is to justify the implementation of state regional policy to solve the problems of financing regions and territorial communities in conditions of decentralization. The article examines how the mechanism of state support for regions has changed, which led to the need to review approaches and principles of state regional policy formation. It is substantiated that the creation of a new regional support tool – the State Fund for Regional Development (SFRD) should contribute to the development of territorial communities. It has been established that the effective functioning of the DFRD allows financing of regional development projects to be initiated in Ukraine on a competitive basis and in accordance with regional development strategies and action plans for their implementation.
Purpose: The article aims to measure the impact of the voluntary amalgamation approach applied in Ukraine in the course of the decentralization reforms undertaken over a period of five years, and assess how much these reforms have been successful in improving the local government fiscal situation. Ukraine began a long-delayed decentralization process in 2015 through amalgamation based on a voluntary approach, with an emphasis on improving the fiscal resources of the amalgamated units. The decentralization reform was based on three pillars: (1) voluntary amalgamation of the territorial units, (2) enhanced financial resources through own source revenues and infrastructure grants, and (3) utilization of inter-municipal cooperation to support improved service delivery.Methodology: A time series of fiscal data from amalgamated territorial communities in selected regions of Ukraine have been analysed to measure the impact of the amalgamation policy on the amalgamated territorial units.Findings: The fiscal improvements anticipated by the amalgamated territorial units have not been demonstrated by the statistical data analysis and no significant improvement in local government finances appears to have been realized through the application of a voluntary merging approach. There have been significant regional and urban/rural variations based on the population segments and access to financial resources.Academic contribution to the field: While there has been considerable research on the impact of merging or amalgamating local governments, there has been very little, if any, on the voluntary approach to amalgamation.The study seeks to address this problem and present evidence of the advantage of utilizing a voluntary over a mandatory approach to amalgamation.Significance: The study provides a unique opportunity to measure the impact of amalgamation process in Ukraine over a five-year period based on the voluntary approach to amalgamation and determine how much this approach and the accompanying policies have been successful in improving the local government fiscal situation.
The study is based on the example of Ukraine, which in 2014 has implemented decentralization reform and become a follower of globalization basic concept, based on subsidiarity and decentralized financial regional development. The study's main purpose is to identify the positive and negative aspects of the development of local self-regulation in the process of global transformation in Ukraine. To this end, a study was conducted based on the latest published statistics on regional production, population, average income, international trade, and foreign direct investment. As a result, it allowed identifying the main areas that form the potential for economic development based on foreign direct investment activity. It should be noted that the main aspect of regional development quality is financing, so an analysis of the entrepreneurial activity of the regions, an analysis of the funding for the regional development support fund, and the main areas of financing by international funds was conducted. The main problems of quality of economic development related to globalization were also identified, which relate to the uncontrolled activities of Transnational corporations, which reduces the resource potential of Ukraine and reduces the level of economic security.
The article analyzes the results of the activities of territorial communities in 2020-2021, as well as the methodology for determining their capacity, from a socio-geographical perspective. The main advantages of reforming the basic level of the administrative and territorial system are indicated, the main trends and factors of the formation of successful communities are revealed.
 The methodology of the formation of capable territorial communities, defined by the authors of the reform, contains criteria for the size, population, accessibility zones of new administrative centers, as well as the presence of social, educational and household infrastructure. Such communities of villages, towns, and cities are considered capable, which, as a result of voluntary association, are able to independently ensure the appropriate level of services provision in the field of education, culture, health care, social protection, housing and communal services, while taking into account personnel resources, financial support and infrastructure development of the corresponding administrative and territorial unit. At the same time, the financial capacity and infrastructural security of a territorial community depends on many socio-geographical factors: favorable location, effective use of the socio-economic and demographic potential of community centers, development of transport links, etc.
 In particular, it was found that communities of regional centers, large cities, as well as satellite communities of these cities or with a powerful business sector have the best financial indicators. Large enterprises of wealthy communities are the main tax payers and jobs provider for residents, as well as sponsors of the construction of social infrastructure facilities (kindergartens, sports complexes, etc.). An interesting fact is that the rating of the most successful communities in 15 regions of Ukraine is headed by rural communities. A significant number of communities have not benefited from financial decentralization and the level of their subsidy is more than 50%.These are communities in general, with a significant share of the rural population, where there are not enough jobs, the entrepreneurial sector, and, accordingly, tax revenues.These are also large communities of sparsely populated areas with a demographic crisis situation, where there are problems with the transport connection of villages, remoteness from the center of the community. We counted the number of communities by region that at the end of 2021 had a subsidy level of more than 50% and the number of those with a subsidy level higher than the average for Ukraine (14.5%). Thus, the maximum number of subsidized communities is in Chernivtsi, Ivano-Frankivsk and Zakarpattia regions. In the Lviv region, only in Strilkivska and Borynska communities, subsidies amount to more than 50%. In general, in the 16 regions of Ukraine, rural communities are the most subsidized: the 5-8 poorest communities in each region are mostly rural and peripheral, only 1 urban - Vatutinska, the rest ones - townships.
 The question of the capacity of the community is also related to the controversial changes that are taking place regarding the optimization of the network of secondary education institutions. Support institutions are being created in urban and town communities, as well as in the centers of rural communities, which receive a larger amount of funding and better conditions for development. On the other hand, subsidized communities cannot finance small rural schools. Over 2 years in Ukraine, the status of almost 670 schools was lowered, and 918 schools were closed, and this process will continue in the future.
 Therefore, the self-organization of the population and local authorities in communities has become an important factor of self-defense and resistance in the conditions of a full-scale invasion of the Russian aggressor. Thus, after the end of the war, the support and provision of self-government of territorial communities will become an important condition for the reconstruction of the state. At the same time, it will be necessary to improve the mechanism of formation of local budgets, as well as the methodology of determining the capacity of territorial communities
 Consequently, in a special period, it is worth providing exclusively state financing of educational and medical institutions, especially in the front-line regions. Obviously, it will not be possible to avoid another stage of consolidation, primarily to ensure the real capacity of territorial communities in areas with a deep crisis demographic situation. Using the potential of capable communities, developing their infrastructural and industrial base will contribute to strengthening the grassroots link of the administrative and territorial system as well as to ensuring the national security of the state.
 Key words: capable community, decentralization, financial capability, infrastructural capability.
Tomasz Michalski, Yevhen Matviyishyn, Vіktoriia Luhova
raine is one of the last post-communist countries where implementation of administrative reforms has started in practice. The aim of the study is to analyze the local-level results of the main stage of the administrative reform in Ukraine which was carried out in 2014–2020. The analysis concerns Ukrainian local government units equivalent to LAU 1 and LAU 2. When collecting data, the so-called triangulation of sources was applied. The SWOT method was used in the analysis, and Neshkova and Konstadinova’s publication (2012) constitutes the reference point. The decentralization of power and finance has led to the creation of amalgamated territorial communities (ATCs), better able to deliver public services. Thus, in this respect, the effects of the administrative reform in Ukraine so far have been similar to those diagnosed by Neshkova and Konstadinova (2012) in other post-communist countries. Admittedly, corruption in Ukraine has decreased, but only slightly. Therefore, Neshkova and Konstadinova’s (2012) assumption about the positive impact of administrative reforms on reducing corruption in post-communist countries was not confirmed in Ukraine. Referring to the detailed results of the SWOT analysis, the greatest strengths of this reform included the partial success of financial decentralization and the establishment of the State Regional Development Fund (SRDF) to support the development of local governments. The quality of public services has also improved. However, there were also weaknesses in the form of still too small funds received by the new ATCs and irregularities in the functioning of the SRDF. International support for this reform and the intensification of the activities of non-governmental organizations were considered to be the greatest opportunities. The still existing strongest threat of an endogenous nature is (despite its decline) the level of corruption, and the exogenous one is a threat from Russia. In addition, the negative impact of the COVID-19 pandemic can be seen at the end of the implementation of the reform.
The financial support of territorial communities is proposed to be considered as a process of formation, distribution and use of financial resources in order to satisfy the needs and interests of citizens in the sphere of all life activities in the relevant territory. At the same time, the main form of financial support of territorial communities remains budget financing, the quality of which depends on the level of their economic and social development. The state of financial support for the development of territorial communities under conditions of decentralization in Ukraine was analyzed. It was found that during the studied period the number of UTC grew quite quickly and by the beginning of 2022 was 1469 units. It was well founded that the main source of formation of own and fixed incomes of local budgets is precisely tax revenues. However, in the conditions of the war, the budgets of the communities underwent significant transformations, became more dependent on transfers from the central budget. Communities had to cut capital spending and direct it to defense and the reserve fund. The financial decentralization of local self-government helped the communities to withstand the conditions of large-scale Russian aggression. Keywords: decentralization, financial support, territorial communities, development.
Abstract. Introduction. The world today, gets acquainted with a new tool which is cryptocurrencies also known as virtual money. Governments and Central Banks of different countries often dispute about the use of these innovations. Some researches believe that virtual money (cryptocurrencies) is a crime, others believe that we are talking about a true revolution in the world of finances. Some of them share radical views and propose to impose criminal penalties on one who distributes and uses virtual money in view of the possibility of the potential for using them for the money-laundering purposes or for the financing of terrorism; others point out the inevitability of the development and spread. The latter is epitomized by the adoption of cryptocurrency as the official state currency. However, such a decision of governments imposes new questions and problems of cryptocurrencies accounting. Purpose. Deepening the theoretical foundations of the bitcoin accounting as an official currency and, accordingly, a legal instrument of payment. Results. The article deals with the economic essence of cryptocurrency, current situation and prospects for the development of this phenomenon in the world through the analysis of scientific articles of leading scientists and experts. In addition, the paper considers preconditions for cryptocurrency accounting as the official state currency on the example of Bitcoin in El Salvador and The Central African Republic, discusses the reasons of the adoption of cryptocurrency as the official state currency by poor countries. Conclusions. It is found that the use of bitcoin is an important factor in solving the country's current economic and financial problems, which was used by El Salvador and The Central African Republic for today. Among such problems are the investment climate, speed and cost of payments, access of the population to banking services. The possibility of a negative impact of the use of cryptocurrencies on the economy is also allowed. As for accounting, the issues of adoption of bitcoin as an object of accounting, accounting estimate, accounting methods and criteria for its recognition in financial statements remain unresolved. Keywords: cryptocurrency; bitcoin; legal currency; accounting object; cryptocurrency accounting; accounting and financial reporting problems.
Constantin Yarovyi, Olena Martynenko, Антонина Шнурко
Abstract. Introduction. Cryptocurrency is a completely new economic and legal phenomenon, different from traditional or electronic money. At the same time, it should be noted that there is no single definition in the world that would reveal its essence, economic and legal nature. Purpose. Taking into account the opinion of other scientists, it is necessary to consider the concept of cryptocurrency, the functions performed by virtual assets, as well as to determine the legal status of cryptocurrency in different countries of the world and the chronology of events that regulate the legal status of cryptocurrency in Ukraine. Results. Cryptocurrency provides a fast and reliable system of payments and money transfers, which is based on the latest technologies and is not under the control of regulatory state institutions. The article provides a brief overview of the term cryptocurrency as used by various sources. The most common cryptocurrency, created back in 2009, Bitcoin is also considered. Questions of its similarity to electronic money are raised. The advantages of cryptocurrency have been identified, some of which can be disadvantages at the same time. The analysis of the opinion of the scientific community allows us to distinguish the functions characteristic of virtual assets and the functions characteristic of fiat money. Positions of foreign central banks and other financial regulators regarding cryptocurrencies and cryptocurrency markets were also presented. The paper considered the chronology of events regulating the legal status of cryptocurrency in Ukraine. It is proposed to carry out further research on issues of cryptocurrency legitimization. Conclusions. The mechanism of state regulation of cryptocurrency in Ukraine requires further refinement, starting with streamlining the terminological base and determining the directions of work with this type of currency.
Бердянський державний педагогічний університет, Ірина Застрожнікова, T. СHEREMISINA, Бердянський державний педагогічний університет
The article considers the main aspects and problems of transforming an educational network in the current context of decentralization. Reference is made to the urgent need of restructuring the responsibilities in education management between the center and regions providing the latter with independence in finances, organization and management at the regional level. It is emphasized that extending powers of the local executional bodies in management of educational institutions is the primary purpose of decentralization process. There was examined a pattern of decentralizing the basic education in Poland, according to which it was recommended to oblige the local self-government bodies to implement the education politics according to the local needs, finding the school administration and continually appraise the quality of education. It has been observed that currently the essential functions of state in education are assigned to the regional state administrations, regional and local educational departments. The local authorities are burdened with responsibilities of financing and providing the social security for children, defining the network of training institutions, maintaining their records and performing control over their activities. The author points out that at present the local and regional authorities duplicate the functions of the Ministry of Education and Science of Ukraine, which is non-effective. The author believes that the local government officials are able to perform political management well up to the officials of educational departments and administrations. However, prior to assignment of new obligations, it is necessary to develop and implement an effective retraining program for personnel and staff of the municipal structures. There have been reviewed the results of the pilot project: «Decentralization: education reforms at the local level», which experts had been analyzed the consistency of educational network. It pointed to the major areas of concern for the education reforms in local communities, namely a significant expense side of budget for education financing, low level of education in rural students according to the data obtained from the independent external assessment, and lack of subject oriented teachers. The author makes a conclusion that the purpose of decentralization in education should be an overall improvement of educational services and be based upon the following basic principles: students’ right to have a free choice of educational institution, equal access to good-quality education services, decent conditions to develop their abilities, improving the quality and efficiency of the educational process, effective use of types of resources. Key words: decentralization, transformation, education, educational system.
ABSTRACT A cryptocurrency is a form of digital asset. There has recently been a growing public interest in trading cryptocurrencies as part of their financial portfolio. However, its identity as an asset class is not clear. In this paper we examine the proximity of cryptocurrencies as an asset class to traditional ones. To estimate the proximity we select five representative assets from each of twenty-eight subcategories of asset classes and compute the corresponding 5×5 correlation matrices of asset returns. Using the fact that these correlation matrices belong to a mathematical structure, called Riemannian manifold, we compute a non-Euclidean distance between the 28 correlation matrices representing the 28 subcategories of asset classes. To visualize relative positions of the 28 subcategories in the 2-dimensional Euclidean space, we use the multi-dimensional scaling. For clustering of the 28 projected points in the 2-dimensional Euclidean space, we use k-means clustering. This clustering illustrates that cryptocurrency acts more like securities than commodities when it comes to price movement. Our study of comparing cryptocurrency with the other asset classes using Riemannian distance provides investors with the information that is useful to construct a well-diversified portfolio. Keywords Commodities, Correlation Matrix, Cryptocurrency, k-Means Clustering, Multi-dimensional Scaling, Non-Euclidean Geometry, Riemannian Distance, Securities