Viktoriya Denysenko


Introduction. Market transformations in the Ukrainian economy involved radical changes in the system of property relations, which had to create conditions for the establishment and development of the so-called middle class. Economic transformations have changed the social structure of a society with a planned economy. It is about changing the number and share of the middle class in society. However, the middle class has not been formed sufficiently either at the regional level or at the state level. Yet there were social groups that served as the social base for the formation of the middle class, with certain characteristics. The urgency of the topic is due to the need for more full use of the reformed property relations for the formation of the middle class in the regions of Ukraine.

Purpose. Justification for the need to develop a strategy of local authorities on the formation of the middle class at the regional level.

Results. In order to form a middle class, an efficient municipal property management mechanism must be introduced. It should be aimed at obtaining the maximum possible intangible results in the form of: increasing the number of objects that provide quality and quantity for the successful livelihoods of the local community; reduction of expenses by city residents for transportation and utilities; The creation of additional jobs, thereby increasing the income status of households, which in turn can become a reserve for the formation of a regional middle class; creating prerequisites for a favorable investment climate in the local community.

Effective management of property at the local level should become one of the main goals of socio-economic development of the regions. We highlight the main goals of local authorities to support the socio-economic development of the city, including households: creating conditions for normal livelihoods; rise of the region's economy, and increase of the revenue part of the budget; development of regional infrastructure; growth of employment, culture, education and qualifications. The tax mechanism is the most acceptable mechanism for stimulating small business development at the region. An example of such a mechanism could also be the introduction of the concept of "double fiscal benefits", which is intended to provide certain shadowing of existing entities of small and medium enterprises and create favorable conditions for the establishment of new and, accordingly, expansion of the basis of the middle class.

The contents of this concept are disclosed by the relevant programs: profitability incentive program; Program of acceleration of payback.

Conclusion. Thus, the local governments can provide  a real support to newly created entrepreneurs, whose further development will enable them to increase the revenue side of local budgets, which in turn will enable local authorities to support the revenue side of households needed to enter the middle class structure. Today, the actions of individual local governments, aimed at material support of certain groups of social workers – doctors, teachers, employees of preschool institutions, etc. – are very rare.

Ключові слова

middle class; market transformation; property relations; small and medium business; local authorities; socio-economic development of regions.


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