Ukraine is going through one of the most important stages of its recent history – the transformation of the public administration system through decentralization of power. This process is especially important in the context of war and preparation for integration into the European Union. These changes are based on the principle of subsidiarity, an idea that has become a cornerstone of the European model of local government, especially in countries with strong Christian democratic traditions.
Subsidiarity, often considered an “invention” of Christian democracy, is based on the postulates of “private above public” and “small above large.” This principle implies that decision-making should take place at the level closest to citizens, and that higher authorities should intervene only when lower levels fail to effectively solve a problem. In fact, this means that the state authorities should not interfere in the affairs of local communities without asking for such assistance.
The experience of European countries, in particular Germany, demonstrates how the consistent implementation of the principle of subsidiarity forms an effective system of local self-government. The German federal model provides for a clear division of powers between the national, regional and local levels. Local communities (Gemeinden) have broad autonomy in addressing issues of local importance, including the management of public utilities, local infrastructure, social services, and cultural development. An important feature of the German model is the financial autonomy of communities guaranteed by the Constitution, which ensures their ability to fulfill their tasks.
Since its independence, Ukraine has gone through a difficult path from the Soviet hyper-centralized model to attempts to introduce true local self-government. However, it was only after the Revolution of Dignity that the decentralization reform became systemic. Key milestones included the adoption of laws on voluntary amalgamation of territorial communities, on cooperation of territorial communities, and amendments to the Budget Code that expanded the financial base of local self-government.
Between 2015 and 2020, Ukraine underwent a process of voluntary community amalgamation that culminated in administrative and territorial reform. As a result, 1469 amalgamated territorial communities were created instead of more than 11,000 small and mostly insolvent village, town and city councils. This transformation laid the spatial foundation for the implementation of the principle of subsidiarity.
In parallel with the spatial reformatting, functional decentralization was also taking place, i.e. the transfer of powers and resources to the local level. Local budgets grew from UAH 68.6 billion in 2014 to UAH 275 billion in 2019, which significantly expanded the capacity of communities to develop infrastructure and provide services. Communities have been empowered in the areas of education, healthcare (at the primary level), social protection, landscaping, territory planning, etc.
However, the decentralization reform in Ukraine remains incomplete. The absence of constitutional amendments to enshrine the new administrative-territorial structure and guarantee the irreversibility of decentralization poses a risk to the sustainability of the reform. The system of state supervision over the legality of local government decisions is still not properly implemented. In addition, there are significant disproportions in the financial capacity of communities, which calls into question the possibility of ensuring equal access to public services for citizens regardless of their place of residence.
The full-scale war launched by Russia in 2022 posed a particular challenge to the Ukrainian model of self-government. In many cases, it was the capable communities that proved to be most effective in organizing resistance, evacuating the population, and providing basic needs. Local self-government has demonstrated the ability to act autonomously even in the face of disrupted vertical ties. At the same time, the war has exacerbated the problems of underfunding local budgets, and the occupation of large areas and internal migration have put additional strain on communities in relatively safe regions.
To further develop local self-government in Ukraine on the basis of subsidiarity, a number of strategic steps need to be taken. The primary task is to constitutionally enshrine the principles of local self-government and decentralization to ensure their irreversibility. This should include a clear delineation of powers between different levels of government and the establishment of limits for state intervention in community affairs.
The completion of sectoral decentralization implies further transfer of powers to local governments in the areas of healthcare, education, social protection, and land management with appropriate financial support. It is critically important to establish an effective system of state supervision over the legality of local government decisions without excessive interference with self-governing powers.
Financial autonomy of communities is a key condition for the implementation of the principle of subsidiarity. This requires reforming the system of local taxes and fees, expanding the tax base of local governments, and giving communities more autonomy in determining local tax rates. It is also necessary to improve the system of intergovernmental transfers by developing transparent and fair formulas for the distribution of state subventions to equalize fiscal imbalances between communities.
The success of decentralization depends not only on institutional and financial reforms, but also on the development of human capital and a culture of governance at the local level. It is necessary to create an effective system of professional development for local government officials, develop local democracy and public participation, support local leaders and initiatives, and disseminate best practices of local government.
An important element of effective self-governance is the ability of communities to cooperate and coordinate efforts to solve common problems. It is necessary to stimulate inter-municipal cooperation, develop functional regions and agglomerations, as well as cross-border cooperation between Ukrainian communities and communities of neighboring EU countries.
The post-war reconstruction of Ukraine offers a unique opportunity to strengthen local governance. It is important that the reconstruction does not take place from the top down, but takes into account the needs and priorities of each community. It is necessary to create special mechanisms for financing the reconstruction of communities, restore critical infrastructure with a view to long-term needs, and implement the principles of sustainable development and “smart cities” in the reconstruction of settlements.
Ukraine’s European integration creates additional opportunities for the development of local self-government. The principle of subsidiarity is one of the basic principles of the European Union, enshrined in the Treaty on European Union. Ukraine has the opportunity to use European support instruments to strengthen the capacity of communities, develop local democracy, and improve the quality of services.
The experience of Poland, which implemented a successful local government reform in preparation for EU accession, demonstrates that decentralization can be a powerful driver of a country’s modernization. The Polish model of the gmina, the basic unit of self-government, has proven to be effective in attracting European funds, developing local infrastructure, and improving the quality of life of citizens.
Ukraine has the potential to develop its own model of self-government that combines European principles with national peculiarities. The principle of subsidiarity, which originates from the Christian democratic tradition but has become a universal value of modern democratic governance, can serve as the basis for such a model. This will not only improve the efficiency of public administration, but also strengthen democracy, enhance national unity and create conditions for sustainable development of all regions of Ukraine.
The decentralization reform is not just a technical redistribution of powers – it is a fundamental change in the philosophy of public administration, a shift from a paternalistic model to a model of shared responsibility of the state, communities and citizens. In this sense, the principle of subsidiarity reflects a profound transformation of Ukrainian society, which seeks to build an effective, democratic and fair state where the government serves the people, not the other way around.
The introduction of the principle of subsidiarity in Ukraine is not only about borrowing from the European experience, but also about reviving our own traditions of self-government, which have deep roots in Ukrainian history. From rural communities and city government under Magdeburg law to Cossack self-government, these traditions have shaped a civic culture that values freedom, responsibility, and mutual assistance. Today, by combining these traditions with modern management approaches, Ukraine has a chance to create an effective model of local self-government that will become the basis for the prosperity of communities and regions.
