Management and functional approaches to local economic development of communities

Abstract

Local economies are key factors for ensuring the sustainable development of regional economies and countries in general, so there is a need to use effective approaches to managing local economies. The purpose of the article was to analyse the use of managerial and functional approaches to manage local economies in Ukraine, Germany, the USA, Poland and China, and to make recommendations for improving the local economy in Ukraine based on this information. The research was carried out using the methods of analysis, synthesis, specification, comparison and generalisation. It was found that the use of a joint management and functional approach to determine the key functions of the local economy and create strategies for their development is the most effective approach. The importance of understanding the peculiarities of the local economy and accounting for local resources, infrastructure and potential for the development of effective development strategies was highlighted. The need to involve local communities and stakeholders in the process of developing and implementing such strategies was emphasised. It was determined that the following things will help improve the economic climate of communities: ensuring sustainable and long-term financing of local economic development programs and projects, active participation and support of local communities and business representatives, development of public-private partnership mechanisms, increasing the level of competence and qualifications local personnel, application of innovative technologies and approaches, development of the system of monitoring and evaluation of results, strengthening of international cooperation. The results of this study can be useful for participants of the local economy, and can also be the basis for future research in the field of local economic development.