Shlyakhy udoskonalennya finansovoyi polityky stymulyuvannya diyal'nosti hromads'kykh orhanizatsiy v Ukrayini

• Authors: Yuriy M. Petrushenko

Title variants

EN

Ways to Improve Financial Policy Incentives of Non-Governmental Organizations’ Activities in Ukraine

• Languages of publication: UK

Abstracts

EN

The annual budget of the average non-governmental organization in Eastern Europe (the European Union members) countries is equivalent to 560-670 thousand UAH, with about half of these funds being state funding. The annual budget of a Ukrainian non-governmental organization is an average 50-60 thousand UAH (and only 2.3% of that amount is provided by the government). The lack of a clear state policy of financial incentives to non-governmental organizations’ development hinders the further development of civil society in Ukraine. The analysis of the current Ukrainian legislation concerning the funding of civil society institutions has shown that the Ukrainian current legislative norms mainly correspond to the criteria that are used while providing financial assistance to non-governmental organizations in the European Union. However, there is a significant difference between the theory and the practice of application of the law at the national and local levels. The paper substantiates that further improvements in public funding of non-governmental organizations in Ukraine is impossible without solving systemic problems concerning state and local finances’ functioning (funds’ competitive distribution, improving treasury procedures, etc.). Local authorities save significant part of the social services’ cost to local communities due to non-governmental organizations’ involvement. In average, the state support of non-governmental organizations allows to get a service that costs 4 UAH per every 1 UAH budget money invested. Therefore, the main objective of financial policy incentives for civil society development both at the state and local levels should be the motivation for effective interaction between government, non-governmental organizations and local communities.

Keywords

EN

NON-GOVERNMENTAL ORGANIZATIONS; STATE REGULATION; COMPETITIVE FINANCING; FINANCIAL POLICY

• Publisher: Sumy State University, Business and Management Academy of Ukraine - Sumy regional branch and Publishing Company 'University Book'
• Journal: Mekhanizm Rehuluvannya Economiky
• Year: 2014
• Volume: 1 (63)
• Pages: 110-120

Contributors

author

Yuriy M. Petrushenko

• Department of Economic Theory, Sumy State University, Sumy, Ukraine