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Abstract
<jats:p>In the context of modern socio-political transformations and full-scale war, decentralization of power remains one of the key directions of reforming the public administration system in Ukraine. The transfer of authority and financial resources to the local level helps to enhance the capacity of territorial communities, improve the quality of management decisions, and ensure sustainable development of territories. In this regard, the study of decentralization's impact on the effectiveness of managing territorial communities, identifying existing challenges, and determining promising directions for their further development becomes especially relevant. The aim of the article is to examine the impact of decentralization processes on the governance effectiveness of territorial communities in Ukraine, assess the outcomes of the reform under current conditions, and substantiate directions for improving the managerial, financial, and institutional capacity of communities amid military challenges and post-war recovery. In the course of research, a set of general scientific and specific methods was applied. The method of analysis and synthesis was used to uncover the theoretical foundations of power decentralization and to generalize scientific approaches to assessing the efficiency of territorial community management. The statistical method was utilized to evaluate the performance indicators of territorial communities. The systematic approach enabled the study of decentralization's impact on various aspects of community functioning, and the method of generalization and forecasting was employed to justify practical recommendations for improving the effectiveness of local government in modern conditions. Scientific approaches to assessing the effectiveness of territorial community management have been generalized, and a system of criteria and indicators for its evaluation has been developed. The results of the decentralization reform implementation in Ukraine have been examined, and changes in the financial, organizational, and managerial capacity of territorial communities have been analyzed. The impact of decentralization on the effectiveness of territorial community management has been assessed using socio-economic, financial, and institutional indicators. The key problems and risks of territorial community development that emerge during the implementation of the decentralization reform under current conditions have been identified. The possibilities of utilizing digital technologies and e-governance tools to enhance the effectiveness of local government activities have been analyzed. Scientific and practical recommendations, along with an author's model for improving the effectiveness of territorial community management, have been developed, aimed at strengthening their financial stability, managerial capacity, and digital transformation. The findings indicate that the decentralization of power has significantly improved the efficiency of managing territorial communities by expanding their fiscal autonomy, strengthening managerial capacity, and enhancing the quality of public services.</jats:p>