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Liburkina L. M.

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Institutional Adaptation of Local Self-Government Bodies to the Challenges of Economic Uncertainty
Mushnykova S. A., Bobyl V. V., Dobryk L. O., Dron M. A.

Mushnykova, Svitlana A. et al. (2025) “Institutional Adaptation of Local Self-Government Bodies to the Challenges of Economic Uncertainty.” Business Inform 10:39–48.
https://doi.org/10.32983/2222-4459-2025-10-39-48

Section: Economic Theory

Article is written in Ukrainian
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UDC 35.073.52:332.143:005.21

Abstract:
The article explores the conceptual foundations of the institutional adaptation of local self-government bodies (LSGBs) under conditions of economic uncertainty and external challenges arising from crisis processes, military risks, decentralization transformations, and Ukraine’s European integration commitments. The aim of the study is to substantiate the theoretical and methodological approaches to understanding the essence of institutional adaptation of local authorities, identify the key factors that determine it, and develop an integrated model for assessing the adaptive capacity of territorial communities. The methodology is based on systemic, institutional, and comparative approaches, employing methods such as logical-structural modeling, content analysis of regulatory acts, and index and benchmarking analysis. It has been demonstrated that institutional adaptation is a multidimensional process encompassing three interrelated dimensions: organizational-structural, financial-economic, and socio-communicative. Scientific approaches to interpreting this phenomenon have been systematized, including financial-budgetary, capacity-based, legal-organizational, comparative-risk, reform, and post-conflict approaches. A totality of factors affecting the efficiency of adaptive processes has been identified, among which the key ones are the institutional capacity of governing bodies, financial autonomy, stability of the regulatory environment, digital readiness, social trust, and citizen support. An integral indicator of local self-government institutional adaptation has been proposed, which includes five groups of indicators (financial flexibility, personnel-organizational capacity, regulatory-procedural consistency, risk resilience, and socio-communicative interaction) and allows for assessing the level of community adaptability on a scale from 0 to 1. The practical significance of the presented model lies in its applicability in strategic planning processes, monitoring institutional resilience, shaping local policies, and evaluating the success of reforms. The research results are aimed at strengthening local self-government management mechanisms, developing analytical infrastructure, and enhancing the adaptive stability of territorial communities in the context of contemporary socioeconomic transformations.

Keywords: local self-government, institutional adaptation, adaptive capacity, economic uncertainty, decentralization, adaptation index, community resilience.

Fig.: 1. Tabl.: 1. Formulae: 1. Bibl.: 12.

Mushnykova Svitlana A. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Financial Management, Accounting Analytics and Business Monitoring, Educational and Scientific Institute «Dnipro Metallurgical Institute» of the Ukrainian State University of Science and Technology (4 Nauky Ave., Dnipro, 49600, Ukraine)
Email: [email protected]
Bobyl Volodymyr V. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Finance, Accounting and Psychology, Ukrainian State University of Science and Technologies (2 Akademika Lazariana Str., Dnipro, 49010, Ukraine)
Dobryk Liliia O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance, Accounting and Psychology, Ukrainian State University of Science and Technologies (2 Akademika Lazariana Str., Dnipro, 49010, Ukraine)
Dron Maryna A. – PhD, Associate Professor, Department of Financial Management, Accounting Analytics and Business Monitoring, Ukrainian State University of Science and Technologies (2 Akademika Lazariana Str., Dnipro, 49010, Ukraine)

List of references in article

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