JEL classification: R12
Introduction. Reforming the political-administrative system on the basis of decentralization significantly expands the range of subjects of policy making and decision-making, as the regional and local levels of the political process are strengthened. This makes it possible to involve citizens more widely in political decision-making. However, in this context there is a threat of forming separate regional and local “clusters”. They will arbitrarily interpret the rules set by the central government. The institutional basis for the exclusivity of regional development regulation should be understood as a set of institutions, formal and informal rules of administrative and economic behavior of management and economic entities in the regions of the state, which impede access of all actors to economic development.
The Purpose of this article is identifying the institutional factors of exclusive development of the regions of the state and substantiating the recommendations for improving the efficiency of regulatory processes on the basis of an inclusive model of regional development.
Results. In the article the development peculiarities of the formation processes of the exclusion of the regional development regulation are analyzed. Problems related to the functioning of the institution of the administrative market are outlined. Recommendations for improving the efficiency of the regional governance system are substantiated and the prospects for its development in the context of the introduction of an inclusive model are identified.
Conclusion. It is noted that the efficiency and reliability of the regional development regulation system depends on a number of institutional factors that should act in the direction of overcoming political and economic exclusion and the formation of inclusive governance institutions in the regions of Ukraine. This process requires the development of an overall strategy, the formation of which is greatly complicated by the transfer of some political processes to the regional and local levels.
Keywords: institutional development, system with open and limited access, regional development regulation, exclusive and inclusive development, administrative market, administrative reform, decentralization, region, Ukraine.
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The article was received 25.01.2020