SUBNATIONAL POLICY AS A DRIVER OF UKRAINE’S ECONOMIC DEVELOPMENT: ADAPTATION OF THE VISEGRAD GROUP COUNTRIES’ EXPERIENCE

Abstract

The article examines the potential of the subnational level of governance as a significant driver of economic development in Ukraine. The analysis is conducted through a comparative perspective on the practices of the Visegrad Group countries in the fields of decentralization, fiscal autonomy, strategic regional planning, and public-private partnerships. It is determined that the effectiveness of regional development largely depends on the institutional capacity of local self-government bodies, the clear delineation of competences, and the availability of a sustainable resource base. Particular attention is paid to the theory and practice of investment attraction by subnational political actors, the development of small and medium-sized enterprises, and the implementation of participatory governance instruments as factors enhancing the quality of governance and social trust. It is demonstrated that the synthesis of fiscal autonomy with institutional safeguards against excessive centralization creates favorable conditions for the formation of competitive regional economies. The article also addresses the risks associated with the implementation of international experience, particularly in light of the unique challenges faced by Ukraine, such as war and uneven territorial destruction. Emphasis is placed on the necessity of adapting regional policy instruments to the domestic context, taking into account the needs and challenges of reconstruction and the European integration trajectory. The study concludes that the systematic application of the Visegrad Group countries’ experience can enhance the effectiveness of state regional development policy, strengthen the economic self-sufficiency of local communities, and ensure the long-term stability of the national economy