Adaptive models and mechanisms of project financing, which are becoming critical for ensuring the sustainability of entrepreneurial activity in Ukraine in conditions of unprecedented military uncertainty were explored and analyzed in the article. Particular attention was paid to the need to integrate risk-sharing instruments between the public and private sectors. The study focused on transforming traditional approaches to assessing investments that have proven to be unviable in conditions of systematic military risk and mass destruction of capital assets, and to identify factors that minimize fiscal pressure and facilitate the attraction of private capital to critical recovery sectors. The methodology was based on the analysis of empirical cases (the «5-7-9%» program, grant mechanisms) and their critical comparative analysis using the real options theory (ROT) as a strategic framework for assessing managerial flexibility (relocation, expansion options). Global regulatory requirements (IFRS, RDNA4) and institutional risk transfer mechanisms (MIGA and DFC) were also systematized. The hypothesis of a direct proportional dependence of financing efficiency on the synergy between state compensation for systemic risk and the ability of enterprises to quickly adapt was substantiated. The results confirm that business sustainability was achieved through a two-vector mechanism: centralized risk absorption (MIGA/DFC) provides an «external anchor», and decentralized flexibility mechanisms allow the implementation of managerial options at the enterprise level. Empirical analysis showed the effectiveness of state credit risk subsidy programs and identified key challenges, which allowed formulating recommendations for the transition to mechanisms for subsidizing the cost of insurance premiums. The scientific value of the article lies in the substantiation of an adaptive project financing model that integrates ROT and institutional de-risking, as well as in the systematization of requirements for investors and forecasting possible consequences of modern financing models in Ukraine.
Abstract This chapter discusses the Albanian model for the equalization of financial disparities between urban and rural municipalities, especially after the 2014 Territorial and Administrative Reform (TAR). This reform reduced the number of local governments, merging 373 rural and urban entities into 61 larger municipalities. It aimed to streamline and harmonize service provision across regions and municipalities, but challenges persist due to the limited financial resources of local governments. The chapter explores the country’s intergovernmental financial framework, including recent reforms, which enhanced municipal responsibilities and financing. Despite reforms Albanian municipalities are heavily reliant on intergovernmental transfers, with unconditional grants playing a crucial role in equalizing financial resources. While the stability and allocation of the unconditional grants has improved since 2017, rural municipalities still struggle due to higher service costs and lower fiscal capacity compared to urban centers. There are also major differences between larger urban areas and the capital, Tirana. The chapter concludes that while Albania has made strides in decentralization, further reforms are necessary to address the ongoing fiscal inequalities between urban and rural local governments, underscoring the need for more robust equalization and financing mechanisms to bridge the gap between urban and rural municipalities.
Lyudmyla Alekseyenko, Marta Dmytryshyn, Mykhailo Novitskyi
The article examines decentralization, a complex process of institutionalization that aims to transform public economic management by transferring authority from central authorities to territorial communities. It is proven that economic power is the dispositive capacity to make decisions that influence the distribution of resources and the vectors of regional development. The sustainability of decentralization requires the simultaneous strengthening of formal (legislative) and informal (public control, transparency, anti-corruption monitoring) institutions. It is argued that, under conditions of global financial transformations, economic power and its institutions require the introduction of a two-tier model of intergovernmental fiscal relations (State – Community) to eliminate financial imbalances, enhance transparency, and maximize the approximation of public services to the population. The study reveals a disbalance between the revenue and expenditure powers of local self-government authorities and the institutional inadequacy of the horizontal financial equalization mechanism. The primary forms of transferring authoritative powers – deconcentration, decentralization, and devolution – are explored, with an emphasis on fiscal decentralization as the central institutional mechanism for transmitting economic power. Two key aspects characterize the dual function of budgetary decentralization: it enhances the efficiency of service provision by adapting to local needs, and it creates incentives for communities to expand their revenue base and attract investment. It is determined that without sufficient fiscal powers, other forms of decentralization remain merely declarative. The highest level of institutionalization is achieved by granting territorial communities the right to independently establish the rates for local taxes and fees, ensuring a direct link between political decisions and fiscal responsibility. The principles of ecological security are revealed as competition among communities encourages them to integrate environmental standards into investment-attracting strategies, develop green technological hubs, and reallocate resources in favor of ecologically oriented projects. In the context of global financial transformations, prospective directions for further research – to ensure the transition from formal autonomy to the genuine financial self-sufficiency of communities – are identified as: enhancing the financial self-sufficiency of territorial communities, digitalization of monitoring and management processes, and developing managerial competencies about the principles of ecological security and inclusivity. Keywords: institutionalization; fiscal decentralization; local self-government authorities; finance; effects of decentralization; project financing; state credit programs; ecological security.
The research explores the features of administrative-territorial reform in Ukraine within the context of European integration and active decentralization processes. The author examines the legislative framework for local self-government reform, including the Concept of Local Self-Government Reform and the Implementation Plan, as well as practical measures aimed at territorial consolidation and strengthening the financial capacity of newly established territorial communities. Special attention is given to improving resource management efficiency, developing municipal services, enhancing the organizational and institutional capacity of local government bodies, and ensuring citizen participation in decision-making at the local level, including expanding practices of direct democracy. The research analyzes the dynamics of local budgets, the growth of capital expenditures, and the level of public support for the reform, demonstrating the effectiveness of the implemented measures. The role of international assistance and inter-municipal cooperation in enhancing community capacity is highlighted, along with the importance of professional training and development of local officials. The research emphasizes the relevance of a comprehensive approach to creating financially autonomous and effective territorial communities, including the development of methodological foundations for assessing their capacity to manage local finances and socio-economic development. This research is valuable for scholars, local government practitioners, and international experts interested in decentralization, administrative-territorial reform, and the improvement of municipal financial sustainability.
The article is devoted to the study of the current legal regulation of virtual assets in the Federal Republic of Germany. The author analyses the advantages and disadvantages of the relevant regulatory framework, decisions taken to harmonise legislation in accordance with the new Regulation of the European Parliament and of the Council, as well as the possibility and expediency of implementing the most successful decisions into Ukrainian legislation. Due to the lack of relevant in-depth studies that would combine the main regulatory norms and definitions, as well as provide a general overview of this regulatory system, it became necessary to conduct a detailed study of the current regulatory framework of the Federal Republic of Germany in this area, which is one of the most complex among known jurisdictions in the field of virtual assets. The following list details the responsible regulators, as well as the legally established definition of virtual assets and their classification. The Federal Republic of Germany has developed an original classification system and a hybrid approach to defining asset categories in order to apply the provisions of MiCA. Currently, not all objects created on the basis of blockchain technology are subject to regulation, primarily non-fungible tokens, which is in line with MiCA provisions. The licensing system for service providers in the field of virtual asset circulation, the specifics of the transition period and the new classification of licence classes in accordance with MiCA were also examined. An analysis of the requirements for initial coin offerings (ICOs) in accordance with the regulatory framework of the Federal Republic of Germany and MiCA was conducted. The issues of virtual asset mining regulation and taxation were examined. It is concluded that the Federal Republic of Germany has found a way to regulate many more assets than provided for by MiCA, which gives competitive advantages to the national economy. Ukrainian legislation needs to borrow the approach to building such a regulatory system, which can be harmonised with European Union legislation, while preserving the advantages of its own legislation.
The relevance of the study is determined by the need for in-depth study and systematization of innovative decision-making methods that Web3 technologies offer to the modern business environment. In the context of global digital transformation, traditional approaches to management and finance are proving insufficient to ensure the competitiveness and sustainable development of organizations. The purpose of this article is to analyze Web3 tools, in particular blockchain, asset tokenization, decentralized finance (DeFi), and decentralized autonomous organizations (DAOs), as a basis for forming new, more transparent, secure, and effective methods and models for management decision-making. The paper applies a comprehensive methodology that includes a systematic analysis of the functional capabilities of Web3 technologies and a structural-logical approach to classifying their impact on corporate governance and financial management. The use of case studies has made it possible to illustrate the practical aspects of integrating these tools into the activities of large companies. The results confirm that Web3 is not only a technological trend but also a new paradigm that provides managers with qualitatively different tools. It has been established that blockchain creates a foundation for trust and data security; tokenization and DeFi radically increase the flexibility and liquidity of financial management; and DAOs transform corporate governance into a collective and inclusive process. In addition, the integration of AI agents into routine operations allows managers to effectively refocus their attention on strategic planning. The practical value of the article lies in providing organizations with clear recommendations for implementing Web3 technologies: from the need to start with pilot projects to test systems and processes to the mandatory investment in the development of internal competencies. The materials in the article can serve as a basis for developing innovative strategies that will help business organizations minimize technical and regulatory risks and secure leadership in today's digital market.
Inna Kovalchuk, Victoria Melnyk, Tamara Novak, Anna Pakhomova · 5 authors
The article examines innovative approaches to state support for agribusiness through the implementation of virtual asset technologies in the Ukrainian legal field, taking into account international experience. The relevance of the topic is due to the need to modernize the existing mechanisms for financing the agricultural sector in the context of the digital transformation of the economy and the development of the global crypto-asset market. The authors analyzed the current state of legal regulation of virtual assets in Ukraine, in particular in the context of the Law of Ukraine "On Virtual Assets" and its implementation. Also, it was outlined the main problems and obstacles to the introduction of innovative financial instruments in the agricultural sector including: instability of the regulatory framework, insufficient integration of digital solutions into state support programs, as well as low technological readiness of small and medium-sized agricultural producers. The authors studied the international experience of using blockchain technologies to support the agricultural sector in countries such as the USA, Australia, Singapore and the countries of the European Union. In particular, the authors paid attention to the analysis of legal models of tokenization of agricultural assets and the use of smart contracts to optimize the processes of state subsidies. Based on the analysis, the authors proposed a comprehensive model of integration of virtual asset technologies into the mechanisms of state support for agribusiness in Ukraine. The key elements of this model are: the creation of special legal regimes for agricultural tokens and NFTs, the formation of infrastructure for the digital interaction of farmers with state institutions, the implementation of blockchain solutions for the transparent distribution of subsidies, as well as the development of a legal framework for agricultural digital cooperatives. The authors substantiated the need to amend the legislation of Ukraine, in particular the Law of Ukraine "On State Support of Agriculture of Ukraine", the Tax Code and relevant regulations on virtual assets. Also, the authors identified the potential risks and advantages of the proposed innovations for both agricultural producers and the state. The results of the research are of theoretical and practical importance for the formation of state policy in the field of the agro-industrial complex of Ukraine, taking into account the global trends in digitalization and the use of distributed ledger technologies to ensure the efficiency, transparency and accessibility of state support for agribusiness. Keywords: virtual assets, blockchain, smart contracts, state support for agriculture, tokenization of agricultural assets, agricultural sector, digital transformation.
The purpose of this article is to study the peculiarities of the functioning of Ukraine's public finance system under martial law, identify key challenges associated with high levels of economic and social uncertainty, and justify possible ways of adapting budgetary and financial policy to ensure the sustainability, balance, and efficiency of public resource management. The article analyzes the current state of public finances in Ukraine under martial law, describes the main trends in the formation of revenues and expenditures of the state budget, the impact of military actions on the tax system, interbudgetary relations, and financial decentralization. It identifies the main challenges facing the state's financial system, including a sharp increase in military and social spending, a reduction in budget revenues due to a decline in economic activity, a growing budget deficit, and the need for external financing. Particular attention is paid to the role of international financial assistance in maintaining macroeconomic stability, ensuring the solvency of the state, and financing critically important sectors of the economy. The problems of effective public finance management during wartime are highlighted, in particular the issues of transparency of budgetary processes, targeted use of funds, risks of corruption, and restrictions in the area of financial control. Directions for improving public finance management mechanisms in conditions of uncertainty are substantiated, including the digitization of financial processes, strengthening anti-crisis planning, optimizing budget expenditures, improving the effectiveness of financial control, and developing strategic forecasting. Recommendations are proposed to improve the country's financial stability in the medium and long term, which include aligning domestic financial capabilities with external support, improving the efficiency of budget resource use, developing effective public debt management mechanisms, and enhancing financial security as a component of national stability.
Introduction. In the context of Ukraine's European integration course and the state's implementation of the decentralization reform, the importance of local self-government as the basis for the development of territorial communities is increasing. Particularly relevant are the issues of filling local budgets with revenues to ensure that local authorities perform their functions, adequately finance social and economic programs, and create the preconditions for improving the quality of life of the population. Problem Statement. Filling local budgets with funds, creating a financial basis for the development of local self-government. Purpose. Research on changes in local budget revenue formation caused by the implementation of decentralization reforms in Ukraine (with a focus on territorial community budgets), determination of losses incurred by local treasuries and the additional revenues they received in the pre-war (before the start of full-scale war) period of reform (2015–2021), justification of ways to preserve budget revenues in an inflationary economy. Methods. The article uses general scientific methods, namely: descriptive, statistical and economic, monographic, and theoretical generalization. Results. The changes in the formation of local budget revenues (with a focus on the budgets of territorial communities) that took place in Ukraine during the implementation of the decentralization reform in 2015-2021 are described. The amounts of losses and additional revenues received by budgets as a result of the changes implemented are calculated. The methods enshrined in current legislation that allow budget revenues to be protected from inflationary depreciation are described. Conclusions. The implementation of the decentralization reform in Ukraine was accompanied by significant changes in budgetary and tax rules, including the introduction of new/termination of existing mandatory payments, revision of certain elements of taxes and fees, and changes in the proportions of payments distributed among budgets. These changes did not have an unambiguous impact on local government revenues, causing them to increase on the one hand and decrease on the other. The level of real increase in local government budget revenues for the period from 2014 to 2021 (38 %) recorded in the paper indicates that the reform has increased the financial capacity of territorial communities. It is determined that an important role in preserving local budget revenues is played by the relevant ways used by the legislator, including the revision of tax rates, minimum wages and subsistence minimums, and indexation of the monetary value of land plots. The author emphasizes the actual application of a unified approach to the formation of revenues of the budgets of territorial communities (regardless of their status – rural, settlement, city) from 2021. The author identifies the consistently high role of personal income tax and the growing role of local taxes and fees, excise tax and rent in filling local budgets, which has a positive impact on the level of financial support for territorial communities and creates prerequisites for their development.
The article examines the legal mechanism for regulating the circulation of virtual assets in Ukraine and the regulatory and legal support for countering illegal activities with various types of cryptocurrencies. The provisions of the Law of Ukraine “On Virtual Assets”, amendments and additions to civil legislation in terms of introducing the concept of “digital thing” are analyzed. It is proven that the provisions of the European Regulation “Markets in Crypto-Assets” (“MiCA”) are essential for the legal regulation of the circulation of virtual assets and countering illegal activities with them. The classification of virtual assets contained in the European Regulation “MiCA” is disclosed in order to understand the essence of various types of cryptocurrencies. The peculiarities of the circulation of such crypto-assets as Bitcoin, Ethereum are disclosed and noted; the concepts of “blockchain”, “validator”, “service token”, “crypto-asset issuer”, etc. are investigated. The role of a number of state bodies in countering the illegal circulation of virtual assets in Ukraine is highlighted. It is argued that the coordination of analytical work and the detection of risky transactions is provided by the State Financial Monitoring Service of Ukraine. It is substantiated that the detection of criminal schemes and ensuring the prosecution of those guilty of offenses with virtual assets is entrusted to the National Police, the Security Service of Ukraine, the State Bureau of Investigation, the Bureau of Economic Security, and the Prosecutor’s Office. Such bodies as the National Bank of Ukraine, the National Securities and Stock Market Commission, and the Ministry of Digital Transformation of Ukraine form a regulatory framework that should prevent the use of crypto-assets for illegal purposes. It is established that countering the illegal circulation of virtual assets in Ukraine is carried out both through preventive measures, analytical work and improvement of the regulatory and legal framework, and through operational-search and criminal-law jurisdiction. This comprehensive model allows responding to the latest challenges, in particular, the use of decentralized finance, anonymous technologies, and cross-border schemes for the illegal circulation of virtual assets.
The article examines the development of local budgets in Ukraine in the context of local government reform and the implementation of budget decentralization. Theoretical approaches to determining the essence and role of local budgets in the public finance system, as key instruments for financing the socio-economic development of territorial communities, are substantiated. The regulatory and legal principles governing the formation and implementation of local budgets are analyzed, their transformation under the influence of decentralization processes is determined, and the main legislative gaps hindering the increase in the financial autonomy of local government bodies are identified. The impact of local government reform on the financial capacity of territorial communities is assessed by examining changes in the revenue and expenditure structure of local budgets, the ratio of own revenues to inter-budgetary transfers, and the expansion of budgetary powers at the local level. It is established that budget decentralization has generally expanded the role of local budgets in financing public services, but its effects are uneven and largely depend on the economic potential of the territories. Key problems and systemic imbalances in the development of local budgets in modern socio-economic conditions have been identified, including structural inequality in the income base of communities, an imbalance between delegated powers and financial resources, persistent transfer dependence, and managerial and demographic constraints. The need to transition from the formal expansion of budget powers to the qualitative strengthening of the financial capacity of territorial communities by improving inter-budgetary equalization mechanisms, stimulating own revenues, and increasing the effectiveness of budgetary resource use has been substantiated. Keywords: local budgets, budget decentralization, local self-government, financial capacity, territorial communities, public finances.
The article is devoted to the theoretical and methodological justification of the impact of decentralization reform on the financial capacity of rural communities using the example of Zakarpattia Oblast in the context of martial law and profound socio-economic transformations. The content of decentralization as a key element of multi-level public administration is revealed, and its role in redistributing powers, resources, and responsibilities between the central government and local self-government, as well as in the formation of capable territorial communities, is clarified. Based on the Constitution of Ukraine, the fundamental laws on local self-government, and strategic documents of state regional policy, the institutional foundations of financial decentralization and the formation of local budgets’ revenue base are analyzed. A methodological approach to assessing the financial capacity of communities is proposed, based on the use of an integral index and a system of eleven indicators (revenues, expenditures, budget structure, share of transfers, capital investments, etc.), considering data from the ULEAD with Europe program and the specifics of the war period. Based on empirical data from 2023–2024, differences in financial capacity across rural, settlement, and urban communities were revealed. Trends in the share of communities with high, optimal, satisfactory, low, and critical levels of capacity were outlined, including a decrease in the share of critically weak communities and a gradual strengthening of individual rural communities. Specific attention is paid to the analysis of the financial situation in the communities of Zakarpattia Oblast, where both deterioration in indicators for individual territories and positive examples of capacity growth through intermunicipal cooperation, participation in international projects, and the intensification of local economic development have been recorded. The expediency of using an integrated financial capacity index as a tool for monitoring and justifying targeted state and regional policy measures to support rural communities is demonstrated. Keywords: decentralization, capacity, socio-economic development, finance, rural areas, territorial communities, competitiveness.
The full-scale war in Ukraine has exposed critical vulnerabilities in centralized energy grids, driving the urgent need for decentralized renewable energy solutions. This study investigates the economic efficiency of state financial and investment support for the advancement of distributed green energy systems in Ukraine, particularly through concessional financing initiatives such as the "5-7-9" program. The decision-making analysis focuses on small and medium-sized enterprises investing in 10-, 20-, and 30-kW hybrid wind-solar photovoltaic systems accompanied by storage facilities. Financial viability was assessed using key indicators, including Levelized Cost of Energy, Net Present Value, Internal Rate of Return, Profitability Index, and Discounted Payback Period. Results indicate that with preferential financing, the considered projects achieved strong economic performance, while traditional commercial loans offered by commercial banks rendered small-scale decentralized renewable energy solutions financially unfeasible. Based on this, it has been demonstrated that strategic public-private collaboration and effective financial policy frameworks are critical for scaling renewable energy adoption and accelerating Ukraine’s green and digital transition. The article presents developed strategies and a roadmap for integrating decentralized power systems into Ukraine’s digital economy, which, during and after the war, will help strengthen energy resilience, reduce operational risks, and foster the country’s sustainable growth. However, limitations include assumptions of stable macroeconomic conditions and a focus solely on internal energy consumption. Future research should investigate tailored financial mechanisms for different business types and explore the broader socio-economic impacts of investments in decentralized green power systems, as well as the sensitivity of projects’ economic indicators for optimal decision-making.
The article is devoted to the study of the problem of harmonization of Ukrainian legislation in the field of crypto-asset market regulation in the context of the implementation of the provisions of the new European Regulation 2023/1114 of May 31, 2023. Given Ukraine’s status as a candidate for membership in the European Union, the task of unifying legal approaches to the definition and classification of digital assets is becoming increasingly relevant. The article provides a comparative analysis of the evolution of the conceptual and categorical apparatus in the European Union, using the provisions of Directive 2018/843, which focuses mainly on combating money laundering, and Regulation 2023/1114, and examines the transition from the term “virtual currency” to the systematic, expanded, and functionally oriented concept of “crypto-asset,” which includes both digital value and digital rights. Particular attention is also paid to the analysis of Ukrainian legislation and recent legislative initiatives, in particular the Law of Ukraine “On Virtual Assets” No. 2074-IX and draft laws No. 10225 and No. 10225-1. In the context of these documents, a detailed comparison of the definitions of “virtual asset” used is carried out and attempts to gradually adapt the Ukrainian conceptual framework to European standards are revealed, including by referring to the technological criterion (use of distributed ledger technology) and expanding the functional content of assets. Discrepancies between the Ukrainian and European approaches have been identified in both the basic terminology and the classification system for crypto-assets. A comparison of classification models has been carried out: the basic three-level structure enshrined in Regulation 2023/1114, which includes asset- referenced tokens, electronic money tokens, and other tokens, and the options proposed in Ukrainian draft laws, which attempt to adapt European categories to national specifics. Attempts to directly transpose the classification model of Regulation 2023/1114 into the Ukrainian legal system and the challenges associated with adapting certain categories of crypto-assets, taking into account the existing legal regime in Ukraine, are analyzed. Proposals are made on the advisability of revising the terminology and further work on the development of a national classification of crypto assets in line with European Union legislation.
Introduction. In the context of global crises, military aggression, and decentralization reforms, the transformation of budgetary policy has become a key factor in ensuring the sustainable development of territorial communities in Ukraine. Particular importance is attached to enhancing the adaptability, transparency, and strategic orientation of public finance systems under security and climate challenges. The purpose of the paper is to substantiate the conceptual foundations of budgetary policy transformation, taking into account fiscal decentralization, digitalization, green economy priorities, and the need for financial resilience of territorial communities. Results. The paper systematizes theoretical approaches to understanding the essence and structure of budgetary policy based on classical and modern financial theories. A conceptual model of budget policy is developed, including key structural components: methodological basis, principles, institutional architecture, information infrastructure, and implementation tools. The authors highlight six modernization vectors: institutional-regulatory, financial, managerial, socio-economic, environmental, and security-oriented. Particular attention is paid to digital solutions, open financial data, participatory budgeting, and the integration of environmental indicators into local budget planning. Conclusions. A comprehensive transformation of budgetary policy at the local level, aligned with strategic priorities of sustainable development, will strengthen fiscal autonomy, improve financial governance, and enhance the long-term resilience of territorial communities.
ABSTRACT This study innovatively constructs a global regulatory framework of smart contract technology and environmental, social, and governance (ESG) investment standard in the decentralized finance (DeFi) market based on the analysis of capital inflow/outflow rate, technological innovation index, and financial market openness on DeFi market volatility, liquidity risk, and market stability. The paper establishes a “smart ESG” framework to guide market compliance and sustainable development. The framework stresses the significance of corporate social responsibility (CSR) practice and environmental management in the guidance of financial decision‐making in the DeFi space to promote sustainable development and achieve the win‐win situation of financial activities to society and the environment. Furthermore, based on the BART model (Blockchain Automated Regulatory Tool), the dynamic predictive regulatory (DPR) framework and incentive dynamic governance index (IDGI) model, this study constructs a multi‐level regulatory system to cope with the complex and dynamic DeFi market. The empirical analysis is based on the top 10 economies in the world, and the feasibility of the framework in different market conditions is verified. This study not only enriches the theoretical framework of combining DeFi and ESG but also provides policymakers with feasible regulatory strategies for incorporating CSR and environmental management into the regulatory system to promote the stability and sustainable development of global financial markets.
This article explores the innovation management strategies employed by Ukrainian IT companies during the ongoing war and global instability. In response to unpredictable circumstances, such as infrastructure destruction, cyberattacks, labor migration, and economic uncertainty, Ukrainian IT firms have exhibited extraordinary flexibility and innovation capacity. The study investigates structural transformations in organizational models, including the shift to decentralized management, the formation of autonomous R&D teams across different time zones, and the utilization of virtual collaboration hubs. The adoption of agile frameworks and remote-first policies has enabled rapid adaptation and continuity in development cycles despite adverse conditions. Particular attention is paid to the role of emerging technologies—such as artificial intelligence (AI), machine learning, generative models, and low-code/no-code platforms—in maintaining operational efficiency and fostering product innovation. These tools have become essential for automating customer service, enhancing cybersecurity, and optimizing internal logistics, especially in the context of humanitarian initiatives. The research also analyzes sociological surveys, including those conducted by DOU and Lviv IT Cluster, indicating a rise in R&D investment and innovation engagement across the sector. Case studies of MacPaw, Reface, and Ajax Systems exemplify successful adaptation strategies, from geographic relocation and contingency infrastructure to participation in global digital resilience initiatives. The findings emphasize the importance of integrating innovation with strategic foresight, psychological resilience, and legal frameworks such as Diia.City. Key recommendations include fostering mental health support, increasing R&D funding through public-private partnerships, deepening EU digital integration, and expanding innovation-focused regulation. The conclusions provide actionable insights for developing crisis-resilient innovation strategies, particularly relevant for digital industries operating under prolonged stress. This research highlights how the Ukrainian IT sector, despite extraordinary hardship, can become a global model for innovation-led recovery and sustainable transformation.
Introduction. In the current context of the digital transformation of society, there is a growing need to rethink the role of public finance as a tool not only for fiscal regulation but also for strategic development. Traditional models of budget administration are proving insufficient to ensure transparency, accountability and efficiency in the management of public resources. At the same time, the rapid development of digital technologies, such as blockchain, big data, and artificial intelligence, opens up new opportunities for modernizing the financial system. In this context, the study of the digital transformation of public finance is extremely relevant, as it meets the challenges of the innovation economy and the need to increase trust in public administration. Methods. The methodological basis of the study is a combination of systemic and structural-functional approaches, typological analysis, case method and visualization methods. The empirical basis is based on examples of the implementation of digital platforms in public finance in Ukraine, Georgia, the Baltic States, and Canada. The chronological scope of the study covers 2015-2024. The source base is formed on the basis of data from open budget portals, regulations and international reports (IMF, World Bank, OECD). Results. The article presents a classification of digital solutions into four generations: from open data portals to blockchain platforms with smart contracts. A comparative analysis of the functionality, legal integration and scalability of the OpenBudget, ProZorro and GovChain platforms is carried out. Discussion. The results obtained can be used as an analytical and methodological basis for further research in the field of digital design of budget ecosystems, as well as for the development of regulatory approaches to the integration of decentralized technologies into public financial management. Keywords: public finance, digital transformation, blockchain, smart contracts, ProZorro, OpenBudget, GovChain.
Ministry of Youth and Sports of Ukraine, Alina Hrushyna
The main mechanisms of targeted financing in Ukraine are revealed, and their role in ensuring socio-economic development under martial law is defined. The article analyzes the effectiveness of the implementation of active state targeted programs up to 2023, particularly in terms of the fulfillment of planned funding from both the state and local budgets, as well as the achievement of performance indicators. The key shortcomings in the system of program design, financing, and effectiveness evaluation are identified. The paper proposes ways to improve the effectiveness of program implementation, including through decentralization, enhanced monitoring, and independent auditing. Particular emphasis is placed on the importance of adapting programs to the challenges of war and national recovery, as well as the expediency of long-term programs in periods of limited public financial resources.
The article studies the theoretical and methodological foundations of the functioning of cryptocurrency as an innovative financial instrument in the system of economic potential of an enterprise. The essence of cryptocurrency is revealed from the point of view of its role in the formation of financial resources, ensuring solvency and increasing the competitiveness of business entities. The author's definition of the term "cryptocurrency" is provided. The criteria for classifying cryptocurrencies have been expanded. The expediency of using cryptocurrencies in entrepreneurial activities in the context of digitalization of the economy has been substantiated. The analysis of the advantages and risks of integrating cryptocurrencies into the financial strategy of the enterprise is carried out, as well as methodological approaches to assessing their impact on the overall economic potential are proposed. The authors offer practical recommendations for effective management of cryptocurrency assets, taking into account the current regulatory framework and technological changes.
The article is devoted to the development of a methodological approach to managing the scientific component of the budget process at the municipal level under the conditions of power decentralization in Ukraine. Given the increasing complexity of the socio-economic environment, the need for balanced local finances, and the focus on sustainable development of territorial communities, the author emphasizes the significance of scientific and analytical support in the budget process. The aim of the study is to develop a methodological approach to managing the scientific component of the municipal budget process, taking into account modern challenges, institutional specifics, and international experience. The research methods include systems analysis, structural-functional approach, institutional-comparative analysis, as well as logical and formalized modeling methods in the field of scientific support of the budget process. The article explores the theoretical foundations of scientific support for the budget process, analyzes the current state, and identifies key issues in managing the scientific component within Ukrainian municipalities. It reveals the essence and functions of the scientific component in budget management – from research planning and analytical database formation to the evaluation of decision effectiveness and forecasting the influence of external factors. The key principles of effective management are defined: scientific validity, interdisciplinarity, adaptability, openness, and institutional interaction. The opportunities for integrating scientific institutions, independent analytical centers, and digital tools into municipal budget management are systematized. Results. A conceptual model for managing the scientific component is proposed, encompassing the following stages: strategic planning of scientific and analytical support, coordination of stakeholder actions, organization of institutional cooperation, provision of resource support, and implementation of control and evaluation mechanisms. It is argued that systematic management of the scientific component improves the quality of managerial decisions, ensures transparency in the budget process, and strengthens citizens’ trust in local self-government authorities. The research findings can be applied in the development of municipal development strategies, the design of institutional cooperation mechanisms with scientific institutions, and the digitalization of public finance management at the local level.
The financial system of sub-Saharan Africa is heavily dependent on foreign and international capital. The external debt of Sub-Saharan Africa is more than 60% of the total GDP, in some countries, that is about 95%. In the last decades, there has been an expansion of the influence of pan-African financial groups and central/national banks in the monetary policy of African states. Sub-Saharan Africa shows exponential growth in electronic mobile payments and the digital currency of central banks and crypto assets depends on distributed ledger technology. Regional financial centers have emerged, shaping the growth and development of African finance. The structure, specifics and main trends in the development of the financial system of sub-Saharan Africa are described in the context of the challenges facing the global financial system. The need for integration processes for the countries of the continent, the role of central banks and Pan-African financial institutions are substantiated. The possibility of implementing the concept of leapfrogging in the transition of the monetary and credit system of the African continent to national digital currencies and the use of distributed register technology are considered. The author considers the credit and monetary system of Sub-Saharan Africa as a place of financial innovations that can identify the development of the global financial system for decades to come.
Open access
Economic Issues in Ukraine
Economic Development and Digital Transformation
Economic, Social, and Public Health Issues in Russia and Globally
The article analyzes the foundations of Ukraine's state regional policy for digital transformation, including the regulatory framework, strategic documents, and regional informatization programs. It is determined that implementing digital technologies is a key direction of state policy aimed at creating conditions for the development of an information society, integrating modern technologies into public administration, and ensuring the competitiveness of regions. Considering the decentralization of power, conditions are being created to align regional development policies with key areas of digital transformation, including the digitalization of regional governance, the development of the digital economy, the implementation of innovative technologies, process automation, the expansion of e-government, and the formation of e-democracy tools, among others. The study found that the primary tool for ensuring digital transformation at the regional level is regional informatization programs developed by the standard project for such programs approved by the Ministry of Digital Transformation of Ukraine. As of January 1, 2025, 16 regions of Ukraine have adopted these programs, which cover the implementation of e-government, digital infrastructure, cybersecurity, digital literacy, and more. Disparities in financing and levels of digital maturity among regions have been identified, requiring improved coordination mechanisms and ensuring the balanced development of digital infrastructure at the regional level. The study's results emphasize the need to synchronize regional programs with national priorities, integrate European digitalization standards, and implement a monitoring system to assess program effectiveness. These aspects are crucial for the harmonious development of a digital state, ensuring equal access to modern technologies and improving the efficiency of public administration.
The implementation of the decentralization reform in Ukraine and its impact on the development of regions and territorial communities, the formation and implementation of local budgets impact the interests of state and local self-government bodies, business structures, and residents of newly formed communities. Problem Statement. The impact of the decentralization reform introduced in Ukraine on the formation of budget indicators and the distribution of funds between the state and local budgets. Purpose. The study of changes caused by the decentralization reform in the formation of the revenue part of local budgets, the distribution of revenues between levels of the budget system, the state of budgetary decentralization of funds, the significance of intergovernmental transfers and local taxes and fees in filling local budgets and their impact on the level of their financial autonomy. Methods. General scientific methods are used, namely: description, comparison, monographic, theoretical generalization. Results. The transformations of the budget and tax legislation of Ukraine carried out within the framework of the decentralization reform are characterized, and their impact on the formation of budget revenues is determined. Generalizing indicators were studied, which made it possible to assess the state of budget decentralization in Ukraine. The evaluation of changes in the role of interbudgetary transfers and local taxes and fees in filling local budgets, and their impact on indicators of financial autonomy of the latter, is given. Conclusions. The processes of unification of territorial communities as the first step within the framework of the decentralization reform in Ukraine affected the formation and volumes of the revenue part of local budgets, influenced their composition and volumes of expenditure. Budget and tax transformations had an ambiguous impact on local budget revenues, causing additional revenues on the one hand, and losses for various groups of budgets on the other hand. The indicators of budget decentralization calculated in the article unequivocally showed a reduction in the dynamics of the share of local budgets in the consolidated budget of Ukraine both at the stage of the initial allocation of funds and as a result of their final redistribution. At the same time, a significant change in the proportions of the distribution of resources between some groups of local budgets was recorded in the direction of an increase in the share of funds concentrated in the budgets of territorial communities and a decrease in the share directed to regional and district budgets. It has been demonstrated that changes in the absolute and relative indicators of interbudgetary transfers in local budget revenues are due mainly to the adjustment of approaches to the financing of some expenses, rather than to the strengthening of the income autonomy of local budgets. In the conditions of the growing role of local taxes and fees in the formation of local budget revenues, the risks of possible intervention of the central government in the processes of administration of the specified payments, adjustment of the rules for their calculation and payment remain relevant for local authorities. This may negatively affect the financial autonomy of budgets, endanger the proper and timely performance of the tasks assigned to it by the local self-government.