UDC 332.146:330.332:330.322.5(477); JEL G18, H54, O18, R53
Nestor, O. Yu. (2025). Shlyakhy pokrashchennya bahatorivnevoyi koordynatsiyi upravlinnya derzhavnymy investytsiyamy v Ukrayini dlya zabezpechennya yikhn'oyi efektyvnosti [Ways to improve the multi-level coordination of public investment management in Ukraine to ensure its effectiveness]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 171 (1) (pp. 39-45). DOI: https://doi.org/10.36818/2071-4653-2025-1-5 [in Ukrainian].
Sources: 8

Authors



Nestor Olha Yuriyivna

Ph.D. of Economics

Researcher of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: olhanestor@gmail.com, (+38098)543-2885

Webpages:

Resume

This article is dedicated to the study of multi-level coordination in public investment management, the analysis of experiences from OECD member countries, and the identification of ways to improve the multi-level coordination of public investment management in Ukraine, ensuring its effectiveness. It is emphasized that coordination is one of the three systemic challenges to multi-level public investment management that hinder the achievement of optimal outcomes. The complexity lies in the practical provision of intersectoral, interjurisdictional, and intergovernmental coordination, as well as in aligning the interests of the numerous stakeholders involved in public investments. The need to consider the context of decentralization for multi-level coordination is underscored, as it represents a challenge that involves delegating responsibilities, decision-making, and financial powers to lower levels of government. Three main dimensions of multi-level coordination are distinguished: institutional, territorial, and public governance. Two primary types of coordination are identified: vertical (coordination of decisions between national and subnational authorities) and horizontal (coordination between authorities within the same level of governance, whether national or subnational). It is concluded that vertical coordination is essential for aligning goals between central and lower levels of governance and is critical for improving the effectiveness and outcomes of public investments. The experiences of Canada, Greece, Austria, Australia, Italy, and the Netherlands in ensuring vertical coordination between levels of governance are outlined. The article also concludes that horizontal coordination is necessary to meet investment needs at the appropriate scale and avoid fragmentation, as infrastructure needs and projects, for example, often span jurisdictional boundaries. It is noted that significant administrative, financial, and political costs, as well as the absence of a joint investment strategy with neighboring cities/regions and incentives for cooperation between different jurisdictions, pose obstacles to effective horizontal coordination of public investment management at the local level. The experiences of Spain, the United Kingdom, Poland, and Iceland in ensuring horizontal coordination are analyzed. The article outlines the problematic aspects of multi-level coordination in public investment management and the risks to the effectiveness of multi-level coordination in Ukraine’s public investment management. Based on the experiences of OECD member countries in improving multi-level coordination of public investment management, a number of measures are recommended for adoption in Ukraine to enhance this coordination.

Keywords:

investments, public investments, effectiveness, coordination, improvement

References


1. OECD (2019). Effective Multi-level Public Investment: OECD Principles in Action. OECD Multi-level Governance Studies. Paris: OECD Publishing. DOI: https://doi.org/10.1787/c3bc625b-en
2. OECD (2025). Recommendation of the Council on Effective Public Investment Across Levels of Government. OECD/LEGAL/0402. Paris: OECD Publishing. Retrieved from https://legalinstruments.oecd.org/public/doc/302/302.en.pdf
3. OECD (2017). Multi-level Governance Reforms: Overview of OECD Country Experiences. OECD Multi-level Governance Studies. Paris: OECD Publishing. DOI: http://dx.doi.org/10.1787/9789264272866-en
4. OECD (2020). The Future of Regional Development and Public Investment in Wales, United Kingdom. OECD Multi-level Governance Studies. Paris: OECD Publishing. DOI: https://doi.org/10.1787/e6f5201d-en
5. Nestor, O. Yu. (2023). Ukrayina v konteksti implementatsiyi rekomendatsiyi OESR shchodo efektyvnoho derzhavnoho investuvannya na vsikh rivnyakh vryaduvannya [Ukraine in the context of implementing the OECD recommendation on effective public investment across levels of government]. In Sotsial’no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 160(2) (pp. 14-21). DOI: https://doi.org/10.36818/2071-4653-2023-2-2 [in Ukrainian].
6. Dorozhnya karta reformuvannya systemy upravlinnya publichnymy investytsiyamy [Roadmap for reforming the public investment management system] (2024). Ministry of Finance of Ukraine: Website. Retrieved from https://www.mof.gov.ua/storage/files/%D0%94%D0%BE%D1%80%D0%BE%D0%B6%D0%BD%D1%8F_%D0%BA%D0%B0%D1%80%D1%82%D0%B0_%D0%A3%D0%9F%D0%86.pdf [in Ukrainian].
7. Dabla-Norris, E., Brumby, J., Kyobe, A., Mills, Z., & Papageorgiou, C. (2011). Investing in Public Investment: An Index of Public Investment Efficiency. IMF Working Paper. Vol. 37. DOI: https://doi.org/10.5089/9781455217892.001
8. Making Decentralisation Work: A Handbook for Policy-Makers (2019). Paris: OECD Publishing. DOI: https://doi.org/10.1787/g2g9faa7-en