PUBLIC ADMINISTRATION OF INVESTMENTS IN UKRAINE: CURRENT STATE AND DEVELOPMENT PROSPECTS

Abstract

Abstract. The article examines the public administration of investments in Ukraine: current state and prospects for development. The quality of public investment management was and still remains low, and the shortcomings of the national system of public investment management include: the lack of strategic planning of public investments at the national level, which complicates the determination of priorities and makes the process of selecting investment projects vulnerable to the influence of lobbying attacks and backroom agreements; lack of uniform procedures for consideration and selection of investment projects financed from the state budget, which affects the validity of relevant decisions and the possibility of completion and full functioning of such projects in the future; the absence of a single, detailed methodology for the development of projects regarding their evaluation, which determines the low institutional capacity for conducting the latter and the similar professional level of civil servants in the investment sphere; unsatisfactory monitoring and control of project implementation indicators at the central level, failure to form a single database of investment projects, which reduces the transparency of the investment process and the efficiency of state investments; insufficient resource provision of the state investment management coordination system, lack of personnel reserve of professional managers for the implementation of large-scale projects in the system of authorities, which in most cases causes low quality of preparation of investment projects and complicates their implementation. State investment should be linked to the state’s development strategy, which is based on an assessment of potential opportunities and obstacles for growth and job creation in each region (or locality). Investment strategies must have clearly defined political goals, be based on facts that indicate the region’s ability to effectively use investments and ensure its own competitiveness and sustainable, inclusive development in the context of global trends. The selection of investment projects, for the implementation of which state support is provided, is carried out on a competitive basis based on data from the State Register of Investment Projects and project (investment) proposals, as well as expert opinions based on the results of an expert assessment of their economic efficiency. Public procurement, according to the position of the OECD, is an integral part of public investment, as well as the public activity most vulnerable to waste, fraud and corruption. Problematic procurement systems can undermine the integrity of the investment process, deter investors, and jeopardize the achievement of policy objectives. Therefore, the state must ensure maximum transparency at all stages of the procurement cycle, promote the improvement of the professionalism of purchasers, and create clear mechanisms of accountability and control.