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Fostering Resilient Growth in Local Communities via Governance Strategies: Key Challenges and Effective Tools

Yurii Orel1, Oleg Kulinich2, Anna Smahliuk3, Oleksandr Popov4, Roman Rychka5
1Candidate of Sciences (PhD) in Public Administration, Associate Professor, Associate Professor of Personnel Management and Entrepreneurship Department, Education and Research Institute “Institute of Public Administration”, V.N. Karazin Kharkiv National University, Kharkiv, Ukraine.
2Candidate of Science (PhD) in Public Administration, Senior Lecturer of Department of Law, National Security and European Integration, Education and Research Institute “Institute of Public Administration”, V.N. Karazin Kharkiv National University, Kharkiv, Ukraine.
3Candidate of Science (PhD) in Economics, Associate Professor, Associate Professor of Personnel Management and Entrepreneurship Department, Education and Research Institute “Institute of Public Administration”, V.N. Karazin Kharkiv National University, Kharkiv, Ukraine.
4Postgraduate Student, Personnel Management and Entrepreneurship Department, Education and Research Institute “Institute of Public Administration”, V.N. Karazin Kharkiv National University, Kharkiv, Ukraine.
5Specialist in Finance, Economist, Master of Law, Lawyer, Ukraine.

Abstract

Among today’s global trends, processes of transforming the management system across various socio-economic relationships hold a prominent place, necessitating a reformatting towards increasing the role of public access and information availability. An effective local self-governance system is essential for managing regional economic systems and fostering development and social progress. The study aims to comprehensively analyse aspects of implementing the public management mechanism within the concept of sustainable development of territorial communities, identifying the main issues of the management paradigm and variations in ways to resolve them. The work examines aspects of public management based on sustainable development as an essential foundation for implementing internal policies. It considers the main problems, challenges, and achievements of transforming socio-economic processes based on public management. The experience of developed countries regarding public management of societal life processes and its governmental, legal, and organisational aspects of provision are studied. The main directions of strategic planning for developing the public management system based on sustainable development in the context of globalisation are defined. The feasibility and prospects of applying innovative electronic systems and the possibilities of modern means and technologies for optimising the public management system are analysed. The research results have practical value for establishing or improving the contemporary management system based on public access and balanced development, as well as in forming governmental management programs in various fields of socio-economic activity.

1. Introduction

The intensification of globalisation and integration processes has led to new contemporary challenges that require dynamic adaptive changes from national structures and local authorities. The concept of sustainable development, when fully implemented into the public administration system, is positioned as the most socially influential and socially-oriented trend. The objective is to achieve equilibrium across the various developmental spheres of society. It entails the development of a set of organisational foundations, effective implementation methods, and monitoring, collectively aimed at optimising the socio-economic processes of societal life. Such a concept guarantees the protection of the interests of future generations, the optimisation of resource use, and the synergistic development of various spheres of societal life.

Ukrainian and foreign researchers examine the issue of public administration in the context of sustainable development across various scientific disciplines, including political science, sociology, and administrative law. Some contemporary scholars have dedicated their work to studying the functioning of public administration mechanisms under the influence of globalisation and researching practical projects for their implementation. For instance, contemporary Ukrainian researchers [1,2], investigate the concept of public administration from the perspective of its complexity and the intricacies of its issues.

In their analysis of the essence of public administration, scholars [3] identify three key dimensions: purpose, means, and communication among the process participants. Furthermore, these researchers posit that public administration’s full potential and capabilities are revealed only when the three main factors that form the basis of the concept of sustainable development—social, economic, and environmental—are harmonised. [4] incorporates the economic aspect of public administration into her analysis, examining the concept’s peculiarities, significance, and functions within societal communications. Additionally, she considers the prospects for implementing this concept in establishing a market economy.

The general issues of public management in the context of sustainable development have been thoroughly investigated in the works of contemporary scholars [5-7]. The works of researchers Dooranov, and colleagues [8] reflect specific conceptual questions. Some researchers posit that the simplicity of management structures is a fundamental principle for implementing effective regional policy. In this context, a synergetic model of managing economic potential should be based on creating internal conditions conducive to optimising the system in the desired direction.

Despite the scientific value of the published works, many issues in the researched area still need to be solved. The problems associated with analysing the algorithm for successfully implementing modern public management capabilities in global challenges and contemporary crises and using digitalisation opportunities during the process still need to be studied more and require further academic scrutiny.

This research aims to analyse contemporary public management models in sustainable development and the dynamics of conceptual priorities in the current crisis context. This study aims to provide a comprehensive analysis of the aspects of implementing the public administration mechanism in the sustainable development of territorial communities, identify the main issues of the management paradigm, and suggest variations in ways to solve them.

A. Literature review

Researchers whose work focuses on implementing principles of public administration under conditions of sustainable development, transforming societal processes in this direction, and finding solutions have established the scientific and methodological foundation in the research area.

Numerous publications on the theme studied in this work are present in scientific professional journals. Specific elements of public administration mechanisms under conditions of sustainable development are examined in the studies of contemporary scholars [9,10]. Among the array of results of scientific inquiries, it is necessary to highlight the works of [11-13], which fundamentally justify the principles of effective implementation of public administration under the conditions of contemporary global challenges of a sustainable economy. Meanwhile, scholars [14] draw attention to the complexity of implementing specific elements of public administration in contemporary society. Researchers [15] have formulated the main conceptual foundations of an effective public administration system, and in the works of [16], the need for active implementation of digitalisation tools and electronic documentation in most areas of socio-economic life is emphasised.

The works of several contemporary scholars, notably [17], describe the features of developing strategies for the formation and optimisation of the capability of territorial communities. [18] offers a critical analysis of existing approaches to financial support for the sustainable development of regions. Researchers posit that strategic, crisis management, corporate, and regional management constitute a unified system for developing the capabilities of Ukraine’s territorial communities. Significant contributions to optimising the paradigm of regional development from the perspective of strategic advancement in capability have been made by individual representatives of modern scientific schools [19,20], who have thoroughly described algorithms and tools for synergising contemporary models of regional policy and economic development.

It is evident that, despite the significance of researchers’ scientific and practical achievements on the studied issues, there is a clear need for further development of scientific research in the outlined aspects. It aims to ensure the sustainable nature of positive dynamics and a preventive response to new challenges in public administration under conditions of sustainable development.

2. Materials and Methods

During the scientific research, a set of general scientific methods of cognition was applied, including abstract-logical and comparative analysis, abstraction, induction and deduction, as well as methods of concretisation and formalisation. The work’s theoretical and methodological basis was formed per the priority principles of conducting comprehensive studies based on a systemic approach. The complexity principle permitted the analysis of the object and subject of study as a system with a corresponding set of interconnections.

The research employed analytical and synthetic methods to identify the factors and stages of development of the object under study and its defining elements. The induction method was applied to forecast the prospective development of the object of study. The method of scientific abstraction was used to form theoretical generalisations, refine the conceptual apparatus, highlight the principal concepts and categories, and formulate research conclusions. The concept of formalisation was employed to structure the principles, functions, tasks and priorities of public management in the sustainable development of territorial communities. The method of concretisation was used to ascertain the efficacy and suitability of enhancing the role of public management in identifying optimal solutions and conditions for optimising the regional management system.

3. Result and Discussion

Contemporary models of public management posit that coordinating activities across various levels of government is a fundamental prerequisite for the effective implementation of policies. This framework considers consensus among public management entities regarding socio-economic processes a pivotal objective.

Currently, a systemic approach to this subject is widely accepted, and three main directions of public management are identified from a sustainable development perspective. These are financial-economic development, social transformation, and guarantees of ecological safety. Forming a new management system necessitates considering existing potential and focusing on guaranteeing decent living conditions for society. It must be achieved in a manner that accounts for changes, adaptability, and prospective growth [21]. Furthermore, aligning national priorities and local community interests regarding development goals and means is essential.

It is worth noting that the term “public management” has gained significant currency relatively recently. This concept encompasses the collaboration of state and local government bodies, the private sector, and society in the identification and implementation of management decisions of public significance within the powers and functions defined by law. In essence, public management encompasses the stages of planning, organising, and controlling the implementation of management decisions. It involves the capabilities of modern information systems, digitalisation tools, and regular effectiveness monitoring.

Implementing an effective public management system presents several critical opportunities for modern society. These include depoliticising public services, prioritising the interests of service consumers, establishing a systematic quality monitoring framework, and pursuing continuous improvement [22]. It is crucial to emphasise the partnership approach, a fundamental aspect of the public management system. This approach recognises the equality of the state and citizens in their relations.

By analysing international experience on the researched issue, it is possible to draw certain conclusions about each approach’s advantages, risks, and challenges. Generally, public management systems in countries that prioritise the principles of sustainable development are characterised by a consumer orientation and a solidarity-corporate approach to management across various socio-economic sectors. In essence, these principles are exemplified by decentralisation, democracy, and adaptability to societal needs (Table 1).

Table 1: Public management principles for sustainable development of territorial communities
No. Principle Definition
1 Democracy The increasing role of public decision-making in the process of public
administration.
2 Adaptability The possibility of dynamic changes in implementing strategic management
under the influence of external and internal factors based on the principles of
sustainable development.
3 Decentralisation Decentralisation of management systems, financial autonomy of economic
processes and investment.
4 Perspective Priority is given to the long-term development of the organisation in the future.
5 Monitoring Regular review of goals based on assessing the effectiveness of public
administration measures and compliance with the principles of sustainable
development.
6 Systematicity Balance between state regulation of the sector and market mechanisms of
financing.

The processes of globalisation, which are characteristic of the present day, entail worldwide economic, cultural, and political integration that encompasses all spheres of societal life, creating a system of interconnections and interdependencies. Consequently, changes in management systems arise, including the decentralisation of management processes and an increased role for the potential of science and intellect. Concurrently, globalisation carries a specific destructive load on society, manifested in the excessive acceleration of urbanisation processes, disruption of natural ecosystems, and increased resource consumption rates. In such conditions, the principles of sustainable development no longer merely serve as recommendations but must become an integral prerequisite for the development of any modern country. The need to transform economic development models and reform economic processes demands the introduction of fundamentally new approaches to global management. The concept of sustainable development implies a transition from a consumption-based economy to one beneficial to the collective, ensuring a balance between meeting needs and maintaining a safe environment for future generations. Collectively, such dynamics will enable the provision of high standards of quality of life and significantly optimise and develop the public management system (Figure 1).

The concept of sustainable development precludes the dominance of any single sphere of life – economic, social, or environmental – and thus, a critical issue in forming public management is ensuring the transparency, reliability, and relevance of informational data. In order to facilitate the simplification and autonomisation of processes, digitalisation represents the optimal communication option within the context of modern public management, acting as a critical factor in optimising management mechanisms. Electronic information systems enable rapid access to reference and statistical information and the collection and consolidation of necessary data. It is important to note that the active implementation of such systems in various countries as a central component of transforming public management of socio-economic processes has highlighted several risks. These include the complexity of standardisation and unification of documentation across different sectors and organisations, staff resistance to innovation, passive public participation in the process, lack of quality software, and data personalisation and transmission security [23]. There is a pressing need to develop a comprehensive digitalisation product to guarantee a more convenient and secure communication format across various societal processes.

Implementing modern practical public management principles will facilitate sustainable development for both individual local territories and communities, as well as the global community, in the context of globalisation. In Ukraine, several reforms are currently being implemented to transition from the concept of state management to that of public management. A defining aspect of this approach is the democratisation of management processes based on forming a broad spectrum of societal self-management. The most optimal approach in this regard is the synergy of management processes with the capacities for societal self-regulation.

The most pressing objective is to identify the most efficacious public management model for sustainable territorial community development. This will entail optimising the efficiency of management processes, reinforcing the environmentalisation of economic processes, and enhancing the role of local development in global transformation.

A revision of budget policy is deemed necessary to ensure the sustainable socio-economic development of regions and reduce disparities in their economic potential. This policy should serve as an effective tool for increasing the share of innovative components to strengthen regional economic potential, encourage local authorities to increase their funding sources and enhance the efficiency of internal financial control at local and regional levels [24].

The fundamental tenet of responsible regionalism, conceived as an expression of the interaction between regional policy and economic development, is the expansion of political-economic functionality at the regional level, accompanied by a proportional increase in responsibility to society [25]. Implementing principles and approaches of public management and exploring new models of economic interrelations and mutual benefits can significantly accelerate the integration process of regional development’s political and economic components.

It is similarly vital to provide financial backing for external projects and programmes that can offer support from other levels of government or international organisations through financial assistance. The effective utilisation of these resources necessitates implementing quality management and strategic planning to achieve sustainable development and enhance the quality of life for the population.

The proposed approach will facilitate the state’s active consolidation and optimal strategic development at regional and national levels. Responsible regionalisation should include resolving regional issues individually and focusing on regional interests.

The realisation of practical activities by economic entities and the growth of their performance indicators requires the optimisation of a complex of aspects regarding innovative development prospects, increased competitiveness, the implementation of cutting-edge, functional management tools, and the development of management approaches that can mitigate the adaptive processes to the conditions of globalisation of market processes.

4. Discussion

The overwhelming majority of contemporary scholars view public management of socio-economic processes as the basis for transforming the global community towards sustainable development. In their 2022 study, researchers [8] posit that a practical human resource is a prerequisite for successfully implementing public administration policy for regional development. They argue that the effectiveness of human resource management often determines the entire company’s performance. Thus, training specialists in human resource management is one of the fundamental tasks of education for business as a whole.

Similarly, [5] posits that the principal trend for Ukrainians over the next few decades will be establishing a global economic system, which will give rise to competition in the labour market for the most competitive and better-performing companies for workers. The foundation of successful workers shortly will be global thinking and skills. It is challenging to find fault with the researcher’s conclusions.

Current scholars [26] assert that one of the most effective means for optimising the socio-economic development of territorial formations is the active use of digitalisation in the public administration system. According to these researchers, the main goal of the digital transformation process is the synergy of data arrays for optimal utilisation. This goal can be achieved through various practical algorithms. The authors emphasise that several factors, including time constraints, financial capabilities, and the level of intellectual resources, influence the digital optimisation process. Modern researchers [27] also consider digitalisation the most promising direction for developing the public administration system in sustainable development. The scientists highlight that today, only a few sectors of socio-economic processes are consumers of innovative technological and managerial solutions. As such, insufficient access to modern technologies and a lack of readiness for practical implementation are the most significant factors limiting the potential for digital transformation within the public administration system for the sustainable development of territorial communities.

At the same time, researchers [28] identify specific prerequisites for the formation of an effective public administration system for territorial communities in the context of sustainable development. The main ones are the presence of an appropriate resource base and society’s readiness for dynamic changes.

Scientific inquiries by contemporary scholars [29-30] shape the belief that public administration in the context of sustainable development requires, primarily, ensuring economic development on the principles of rational natural resource usage, as well as enhancing the effectiveness of interaction among various levels of management, society, and business based on the principles of democratic balanced growth. Such an approach will allow for accelerating a quality positive dynamic in the transformation process of society towards a sustainable approach to all spheres of life, will ensure the ecological reproduction of resource potential, and will provide the opportunity to achieve financial stability of socio-economic processes.

The forecast of the increasing significance of sustainable development policy foundations indicates that future sector-specific requirements will increasingly depend on a management decision system where the principle of public access must be a top priority. Based on the conclusions of scholarly research and the results of current studies, it can be asserted that public administration under the conditions of sustainable development has significantly expanded its operational scope, becoming a fundamental component of the system that ensures the realisation of a balance between economic, social, and environmental development. It is worth noting that the effectiveness of implementing balanced development principles based on optimal public administration presupposes phased and effective goal attainment.

The preceding analysis suggests that public administration will play a more significant role in implementing the foundations of sustainable development, which will significantly enhance performance indicators towards economic efficiency and minimisation of environmental impact, mainly through introducing innovative technological solutions and the possibilities of digital optimisation.

5. Conclusion

Public administration occupies a key position in the system of implementing the concept of sustainable development for territorial communities. Only the synergy of a professional approach, a steadfast stance, and stable principles in forming strategic priorities for the transformation of socio-economic processes considering global digitalisation and proper control from the state and society allows for the complete and timely introduction of an effective public administration system in the context of sustainable development.

A practical approach to public administration in the context of sustainable development will ensure society’s successful adaptation to necessary socio-economic transformations. At its core, a development strategy should be implemented based on unimpeded access to information in a convenient format.

Analytical results on the factors shaping and advancing the capability of territorial communities in Ukraine convincingly demonstrate that the decentralisation strategy of regional management is fundamentally positioned by actively implementing the principles of publicity into the management paradigm of territorial development.

The system of sustainable development goals requires further refinement of public administration and its mechanisms. The key to ensuring the necessary transformations is that they should be practical and inclusive public administration systems capable of producing multi-level strategies and mobilising funds for their implementation, creating stable and reliable networks for collaboration. To accomplish this task, it is essential to create new institutional mechanisms to ensure local governance and to conduct multi-level strategic planning and management.

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Citation

Yurii Orel, Oleg Kulinich, Anna Smahliuk, Oleksandr Popov, Roman Rychka. Fostering Resilient Growth in Local Communities via Governance Strategies: Key Challenges and Effective Tools[J], Archives Des Sciences, Volume 74 , Issue 3, 2024. 184-189. DOI: https://doi.org/10.62227/as/74329.