Decentralization of state power as a guarantee of the effective development of the regional economic cooperation

The article examines the impact of power decentralization to the level of effectiveness of regional economic cooperation. The aim of the article is to study the mechanisms of power decentralization, which is currently used in Ukraine and to determine the effects that they occur to the process of regional economic cooperation. In an unstable situation the state regulation plays a significant role in the functioning of the economic system. Currently state regulation of regional economic cooperation is carried out randomly, proof of which is given in the article by the example of Chernihiv region. Attempts to rationalize the tools of decentralization of power, some aspects of which are thoroughly analyzed in the paper, are not very successful. The central failure of regulation of regional economic cooperation is partial duplication of functions of appropriate authorities, and existence of areas of regional economic cooperation, regulated functions on which aren’t provided by these authorities. The author suggested alternative methods that can improve regional economic cooperation.

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