Modern approaches to community involvement in the process of local economic development planning

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Vinnitsa national agrarian university

Modern approaches to community involvement in the process of local economic development planning

Samborska Oksana PhD, associate professor

of the department of administrative management

and alternative energy sources,

Vinnitsa., Ukraine

Summary

People are their ideas, knowledges, intellect, their desire and ability to cooperate, collectively to settle the existent problems of society and operate in the direction of development of different spheres of society - is the important factor of competitive edges in the modern terms of development, it is a social capital of association.

A social capital is developed closely related to economic development of society: researches confirm, that the active economy growing takes place exactly in those countries, where the different forms of collaboration develop, where the general participating of society is in making decision and decision of local or public problems, the networks of public associations work, there is a corporate culture of the collective planning, adjusted collaboration of power, business and society.

Modern society develops and perfects methods and mechanisms which stimulate people to mass selforganization and bring over them to the processes of planning of development, instrumental in establishment between them interpersonally and between group connections and relations, based on a mutual trust and trust to power. It helps to find a way to harmonization of political, social, economic interests, to improve possibilities them rational expression at the level of society, country and society. From point of stability, efficiency of planning of actions and economic development, the presence of collaboration in society appears the major factor of development, then any other (physical, economic or human) resources.

Key words: society, management, local development, planning, public.

Today, the issue of public participation in the process of planning and management decisions takes first place in the order of renewal of power. The growing demands of society for greater transparency and accountability of government, a greater role of the community in decision-making - is the answer to the question "how to make government effective." Democracy begins at the home of every citizen and is not limited to periodic visits to polling stations. Ways to involve citizens in planning and decision-making at all levels can be the subject of discussion and are being actively studied by scientists, politicians and public figures.

However, it is safe to say that the unconditional long-term current trend is to increase the role of the public in decision-making processes. Management classics argue that "the key success of a strategy depends on identifying the goals of the participants and

the goals of the community." In order to develop an effective local development strategy, it is necessary to involve as many stakeholders as possible (government, business and the population) in these processes. Openness of the process and involvement of stakeholders is the main condition for the formation of favorable conditions for development. Public involvement is the process by which local people, as stakeholder representatives, are involved in public affairs or local issues. A stakeholder is any person, community, group or institution interested in the work of a municipality and its results that is either directly relevant to them or that may be affected in a negative or positive way. Three groups of stakeholders should be distinguished. Key stakeholders: those who can have

Work on the strategy should be set up so that longterm partnerships are established between the participants. Each stakeholder group contributes its own vision of the perspective, specific priorities and necessary resources to the strategy, thus contributing to an effective strategy for local economic development, as well as providing incentives and motivation for all parties to implement their plans. Collective participation of the community will contribute to the creation of an atmosphere of mutual trust (interpersonal and trust in government), the formation of social capital and corporate culture, and in the future - the implementation of projects and strategy activities. With broad community participation, a realistic and relevant local development strategy can be created.

However, in each of the identified stakeholder groups (public sector, private sector, community, society) it is necessary to identify such representatives (individuals or organizations) who may influence development (planning, implementation) or who are primarily affected by local development issues. Of course, business is a key stakeholder, the main driver of economic development of territories, but for Ukraine the main role in the prospects of local economic development is usually played by local government units and agencies created by it. This is due to their significant impact, both direct and indirect, on local economic development. Given the insufficient a significant impact or play an important role in ensuring successful operations. The main (primary) stakeholders are those who are ultimately affected by the results of the action - who will win as a result (as beneficiaries) or lose something. Minor stakeholders: all other persons, communities, groups or institutions concerned by this line of business; they may be interested in it or act as intermediaries. Involvement of stakeholders in the development of local development strategies should be broad, fair, equitable and well- organized in advance. Stakeholders should be represented by three groups: local government (public sector), business (private sector) and non-governmental non-profit organizations - society, table. 1.

Table 1.

List of local development stakeholders

Source:

Work on the strategy should be set up so that longterm partnerships are established between the participants. Each stakeholder group contributes its own vision of the perspective, specific priorities and necessary resources to the strategy, thus contributing to an effective strategy for local economic development, as well as providing incentives and motivation for all parties to implement their plans. Collective participation of the community will contribute to the creation of an atmosphere of mutual trust (interpersonal and trust in government), the formation of social capital and corporate culture, and in the future - the implementation of projects and strategy activities. With broad community participation, a realistic and relevant local development strategy can be created.

However, in each of the identified stakeholder groups (public sector, private sector, community, society) it is necessary to identify such representatives (individuals or organizations) who may influence development (planning, implementation) or who are primarily affected by local development issues. Of course, business is a key stakeholder, the main driver of economic development of territories, but for Ukraine the main role in the prospects of local economic development is usually played by local government units and agencies created by it. This is due to their significant impact, both direct and indirect, on local economic development. Given the insufficient development of society and low social activity of business in countries with economies in transition, the main burden of local development problems objectively falls on local authorities and the structures created by them. Local authorities can influence local development both through the strategies they develop and implement, and through certain rules and incentives to support certain development priorities of territories, enterprises or entrepreneurs. By their actions, they can both promote local development and pose a threat. Because the public sector takes care of important community issues, such as infrastructure development (roads, transportation, hospitals, educational institutions, etc.) and coordinates the use of appropriate resources, the government's influence on the environment is significantly greater than that of other stakeholders. However, the activities of the private sector cannot be underestimated. The private sector plays an important role in local development and to ignore its participation in any activity would be a serious mistake.

The same applies to local non-governmental organizations and civil society actors, who have a deep knowledge of the problems and interests of the community. In order to clearly define the range of stakeholders and the conditions under which they will agree to participate in the local development planning process, we recommend using the CLEAR model. The term (acronym) CLEAR is created by the first letters of English words:

С-Can do;

L-Like to;

E-Enabled to;

A-Asked to;

R-Responded to.

Table 2.

Model CLEAR

The number of different groups and stakeholders involved in local development in any society can be very large. Such a large number of participants can make it difficult to involve all stakeholders in the planning process. Experience shows that the larger the number of participants, the costlier, longer and potentially less effective their activities. On the other hand, the smaller the number of participants, the less equal, less transparent and potentially less effective the strategy development and implementation activities will be. Therefore, it is important that stakeholder engagement takes place to ensure that they are sufficiently and representative of the community. Local social, cultural, political and economic characteristics should be considered when determining representation in the groups involved. Because each community has its own unique environment, the number and representation of stakeholders will vary, as will the depth and extent of their participation. Properly planned stakeholder participation will contribute to the preparation of an equitable and comprehensive community development strategy at an early stage and its effective implementation in the future. In practice, different stakeholders are involved at different stages. Some - at the planning stage, others - at the implementation stage, some - during monitoring. Such different forms of participation of subjects will help to avoid duplication of functions. In order to determine the best balance between the number of participants, representation and conditions of involvement, it is necessary to properly plan collective participation. To do this, when planning collective participation should ensure that:

• the organization and functions were properly structured to meet different interests, and based on the reflection of certain interests, rather than on seeking agreement on predetermined and one-sided priorities;

• Competent and well-informed stakeholders have been invited and participated, to agree on a format for identifying and involving competent stakeholders;

• There was a preliminary agreement on how the process would take place.

This is necessary to ensure that collective participation provides a broad discussion and multidimensional analysis of problems, solutions and consensus. Planning and implementation of local development, carried out on the basis of collective participation, create a number of potential benefits:

• develops a sense of community and responsibility for the work of the project;

• provides a better understanding of local development issues and their level of complexity;

• creates a basis for solving priority problems on an intersectoral basis;

• considers a wide range of proposals and ideas to improve planning, development management;

• promotes the empowerment of stakeholders;

• guarantees the successful implementation of strategies and the achievement of consensus of interests.

A well-organized system of ongoing stakeholder involvement, consisting of a range of activities, from surveys, focus groups, forums, etc. to coordination committees, working groups, boards and advisory councils, which include stakeholders. One of the interesting and increasingly popular formats for involving stakeholders in developed economies in order to use local potential for local development is the use of voluntary "action groups", which is especially relevant for rural communities or municipalities with limited resources. This traditional collective model of local economic development deserves special attention given its cost-effectiveness and efficiency.

Work to promote local economic development in the framework of the "action group" model is usually carried out by specially created volunteer groups consisting of people who want to solve a problem or explore a certain opportunity for their community. It is better to solve many problems of economic development on the ground gradually, to approach the solution of large or complex issues (for example, diversification of the local economy) with small but manageable and gradual steps (for example, attracting a certain enterprise or supporting a certain category of entrepreneurs). In practice, an "action group" is created after a particular problem or opportunity has been identified. The task of the "action group" is to explore, outline possible specific measures and solve the problem. Key actors are recruited from the municipality, region, given their skills, knowledge, interests, aspirations and connections needed to accurately identify the problem and implement the decisions made. The work of the group is short-term, but its decisions are focused on perspective and development. After one or more solutions are found, the group is disbanded. The value of this model lies not only in the fact that it allows to involve a wide range of local stakeholders, but also in the fact that it allows to optimize the limited budget resources and efforts of the community to achieve maximum effect.

An enclosed space is when only official decisionmakers and individual invitees are allowed. This means that decisions are made behind closed doors and stakeholders do not know what is happening. Invitation space - local authorities reserve the right to decide who to involve, only individual stakeholders are invited, in most cases the rules are set by the municipality.

Open space - this allows any stakeholders, free access to participation, but does not necessarily mean that all participants must participate directly, directly. For such an approach to be effective, it is necessary to organize representation fairly.

The space created is created by other forces without the participation of officials, it can arise due to the concerns of stakeholders about certain problems, in most cases, it is created by less powerful groups compared to those in power. Such a space arises on the basis of common concern or mobilization around a particular issue or interest. The type of space and the culture of discussions or debates have a great influence on the ability of stakeholders to shape the agenda and raise certain issues. In a "closed space" and in an "invited space" it is usually easy to see prejudice, even when there is no such intention. Participants also tend to support each other, they may refrain from objecting to other views.

Information exchange, one-way flow of information serves to inform citizens to ensure transparency and maintain the legitimacy of local government. Consultations include the exchange of information, feedback, collection of data on the response to certain questions. Participation of this kind creates two-way information flows, but the relationship between local authorities and stakeholders is unbalanced, as their results are not binding on those responsible. A joint decision is usually the result of joint problem solving or planning, where there is joint control over the decisions made. Joint decision-making will be useful when the knowledge, awareness, capabilities, resources or experience of stakeholders are critical to achieving the goals. Delegated decision: it is a mechanism that transfers control over decisionmaking, resources, activities from the city to stakeholders (or individual groups of stakeholders). Delegated decision means that designated stakeholders can independently plan and implement projects and programs based on their own interests and without significant involvement and control by local authorities. The deepest levels of community participation are ensured at the level of delegated decisions.

In any community, there are many opportunities for dialogue and participation in public life, where people can interact, exchange ideas, discuss issues and influence each other's views. These include places for daily communication and public recreation, where informal dialogue can take place, as well as more formal places for meetings and round tables (executive halls, conference halls, agency offices). The "platform" for formal and informal communication between different groups is not isolated, what happens in one of them can affect what can happen in another. The connection between the places of formal and informal communication affects the overall results. There are two crucial aspects, the way groups are formed for dialogue and participation as separate groups - by geographical area (for example, local "neighborhood" committees), by level of influence (village association) or area of interest (environment).

Horizontal and vertical links between platforms: whether such "platforms" are sufficiently interconnected (formally or informally), whether there is communication and synergy between them (for example, between a minority group and certain MPs). To ensure broad participation and ongoing dialogue, officials should plan to link formal and informal platforms, create the conditions for dialogue, and understand the position of each stakeholder.

In any strategic issue or conflict, there is no single point of view around which a dialogue between stakeholders can begin. On the contrary, there are many points of view through which it is possible to influence relations and reformat the boundaries of joint dialogue and action.

Among the new technologies for using the potential of human intelligence, the most common tool for determining priorities and development strategies is foresight - a look into the future, foresight, prudence, foresight, foresight. Translated from English, the word "foresight" means "prediction" and is used in forecasting to mean "look to the future", "vision of the future".

Foresight is a process of systematically identifying new strategic directions that will be able to seriously affect economic and social development in the long run. It includes: discussion of possible ways of development and formation on this basis of long-term priorities in various branches and spheres; a set of tools that allow you to actively anticipate the problems of the future and active forecasting, which includes elements of action for the future. The concept of foresight appeared in the scientific literature about 30 years ago, where it was used in the context of forecasting the development of technology and business. According to British professor Ben Martin of the University of Sussex in the UK, who is often quoted as saying, “foresight is a systematic attempt to assess the long-term prospects of science, technology, economics and society to identify strategic research and new technologies -economic benefits. Foresight was used to achieve the following goals:

1. determination of priorities of technological development for 10 years;

2. development of a strategic vision for the development of technology for education and science for 20 years;

3. compiling a classified list of promising technologies for the main sectors of the national economy;

4. formation and development of unique sustainable competitive advantages in industry;

5. development of a selective strategy of economic development;

6. substantiation of the choice of priorities of state funding of science.

In the 1990s, foresight began to be used not only to determine the prospects of science, technology and society, but also for strategy in public administration, regional and local planning. Foresight is not a traditional forecast made by economists using econometric methods and models based primarily on extrapolation or interpolation. The development of strategy by foresight methods is based on the intellectual potential of the system, which plans and shapes its development. In the case of a community, micro-region (sub-region) or region, it is the intellectual potential of the people of the respective territory, which is a set of its educational, scientific, innovative, information-communication and cultural potentials. The foresight methodology combines scientific forecasting considering the interests of the well-known government-business-community triangle by effectively involving so-called “stakeholders” or “stakeholders” in the process of “modeling the future” - those who will be involved in planning and implementation and, most importantly, those who will be most affected by the consequences of this implementation.

Foresight's methodological tools include a wide variety of methods for developing perspectives that exist in various sciences and applied fields, using both traditional methods and new, creative ones. The main methods, which reflect the various functions of the foresight, are grouped into four groups and are called "crystal of foresight methods". It includes: "analysis" (analysis of the current situation); "Examination" (forecasting trends); "Creative methods" (development of new ideas for the future), "interaction" (coordination of views and ensuring interaction). The essence of the foresight methodology is not limited to forecasting the future, but also consists in the coordinated development of decisions about the future in the chosen field. In fact, it helps to solve the problem of reaching consensus in the vision of the future through the coordination of the interests of different social groups and thus stimulates social activity. It is even called the method of socioeconomic coordination. Foresight provides the ability to choose the course of action depending on the "vision" of the future, it is aimed at designing the future and finding ways to achieve it, as well as shows the possible means of adjusting them. Its function is to harmonize and consolidate the views of different participants in socio-economic life in order to develop a common vision of the future, to help establish partnerships between business, government and community. In most European countries, foresight has taken root precisely because of the need to combine intelligence and seek consensus for cooperation between business, government and the community in the process of developing strategies and finding the best ways to develop.

The difference between foresight and traditional planning approaches (classical strategy development process) is obvious and is shown in Table 3.

Table 3.

Comparison of foresight and traditional planning

Back in 1985, J. Coates noted that foresight is not multi-stage method that involves the initial isolated planning as such, but only one of the stages of planning, defining it as "a process that allows to come to a fuller understanding of the forces shaping the long-term future and must be taken into account in formulating prospects policy, planning and decision-making ".

The use of foresight leads to the emergence of new technologies for setting priorities and mechanisms for developing strategies for the development of territorial systems, especially in countries whose development is based on civil society structures, as social capital formed in the process of foresight and the existence of civil society are interdependent.

Foresight is one of the most widely used mechanisms for forecasting socioeconomic development, which is used for the following activities:

ь forecasting and application of critical thinking on long-term developments;

ь shaping the future, especially by influencing state regulatory policy;

ь planning of local budgets;

ь application of innovation policy for the development of depressed areas.

Foresight includes a number of approaches that combine three components:

1. vision of the future (forecasting, prospects, predictions);

2. planning (strategic analysis, prioritization);

3. networks (communication, expert assessment).

As a tool foresight uses the method of "brainstorming", the method of Delphi or others. Brainstorming is a method or process aimed at maximizing new ideas in order to find a solution to a particular problem or to characterize certain situations.

The chosen group of people should be able to express their opinions freely. Brainstorming can be conducted by a moderator, whose role is to guide the participants so that they do not deviate from the topic, as well as to record the proposed ideas for further analysis.

During the preparation of SWOT-analysis, brainstorming can be used in the phase of identification of SWOT-analysis elements (strengths and weaknesses, opportunities and threats), and can also be considered as a synthesis of previously prepared analysis of statistics and indicators and analysis of survey results.

The Delphi method is a presentation of their judgments by experts and their subsequent multiple adjustments based on acquaintance of each expert with the judgments of other experts until the value of the scatter of estimates is within a predetermined desired range of estimates.

The reliability of the "Delphi" method is considered high when forecasting for a period of 1 to 3 years, and for a longer period of time. Depending on the purpose of the forecast, 10 to 150 experts may be involved in obtaining expert assessments. strategic economic industry science technology

In some cases, careful study of the various specific elements that determine the situation may be more important than quantifying. It should be noted that the process of foresight began with the formation of priority areas of development, later transformed into a search for mechanisms for their implementation to achieve sustainable economic and technological development, and ended with the search for tools to accelerate response to changes in economic and scientific environment.

One of the first countries to use the foresight mechanism in the development of government programs was the United Kingdom. The Lisbon Strategy, adopted in 2000, proposed that all EU countries make wider use of foresight as an innovative development tool.

A special foresight department has been set up in the European Commission. According to UNIDO, foresight is already involved in the development of national programs in more than 40 countries.

Foresight is one of the main mechanisms for predicting the future in an unstable economy. Foresight is most often used at the national level, but the use of regional and local foresight can have the following advantages:

1. more accurate identification of innovative growth points in the territory;

2. obtaining a synergistic effect from the cooperation of related structures;

3. formation of an integrated strategic development plan for territorial communities, microregion and region;

4. combining the efforts of regional authorities, local governments, business and science to achieve common goals.

Table 4.

Principles and results of using regional and local foresight

Regional or local foresight involves participation in the process of "anticipation" of representatives of government, local science and local government, along with NGOs and businesses.

A regional / local foresight is conducted for a specific territory - a community or a group of communities formed under the influence of common political, social, demographic and economic factors. The European Commission's 2004 Foresight Europe Bulletin presents foresight as "a powerful tool for building and engaging with a community and region in the future."

By bringing together government, science, education, and business, foresight helps to ensure that key regional players are actively involved in the development of a regional strategy and advocate for specific topics (specific materials, technologies, value chains, subregions) that are particularly relevant. interest and complement the overall approach. " In Ukraine, the district authorities are often unable to solve problems that go beyond the administrative- territorial units in their jurisdiction, while for the regional authorities, certain local projects may not be a priority.

The situation is similar with suburban areas located outside cities, outside the jurisdiction of the city government, when district authorities, as is often the case, are unwilling or unable to solve the problems of large cities due to limited resources. Although the boundaries of cities in Ukraine are set, as a rule, along the boundaries of buildings, it is obvious that the economic, environmental and social impact of the city goes far beyond it. Urban infrastructure (such as water supply) sometimes extends more than 100 km from large cities. Thus, problematic issues arise, which, on the one hand, are not solved by the regional authorities, and on the other hand, exceed the scope of powers of the city or district authorities. Often such issues arise at the level of several territorial communities. Joint solution of issues creates a number of additional effects, such as synergetic, agglomeration, etc. Adjacent territorial communities may have a common vector of development, which should be used as a basis for determining competitive advantages. Moreover, such a common direction in development is manifested in both economic and environmental and social spheres. That is why, in order to reconcile the interests of all stakeholders, the strategies of adjacent territorial communities in Ukraine should be developed on the principles of foresight.

Conclusions

Cities are globalizing in world economic processes, but are trying to simultaneously preserve and strengthen their own individuality. They begin to function as special social organisms, seeking to compete with their peers to attract more (in quality and quantity) new residents and businesses.

Today, it is important for cities to create new centers of culture and creativity in their environment, and not just to exist as simple objects that are most guided principles of break-even budgets, simple preservation of certain traditions and principles in urban planning or act to solve some, even very important, urban problems.

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