METHODOLOGICAL APPROACHES TO PORTFOLIO MANAGEMENT OF REGIONAL DEVELOPMENT PROJECTS

Abstract

This research is aimed at the improvement of methods and tools in oreder to manage the portfolio of regional development projects and to improve the mechanisms for their financial support. Mechanisms development of programmatic and target management at the regional level is based on the application of the system theory, algorithmic modelling, methods of expert evaluation, decomposition and synthesis. This leads to the fact that regional (local) development strategies are rarely carried out, while implemented programmes and projects often do not directly influence the achievement of strategic or operational objectives of the strategies. As a result, the efficiency of the use of financial resources directed at development projects is low.Mechanisms of programmatic management in Ukraine contain a number of systematic problems, which are inherent at a regional and local level and which we also agree on: - state target programmes have not become effective and efficient tool for solving the most important problems of development of the nation, separate branches of economy or administratively territorial units; they act as a “formal document with a declaration of intention to do something”;- within the framework of planning and use of the national budget funds, the principles of priority of the problem are not fully respected; financial resources are diverted;  - the projected amounts of financial resources of the programme, incl. those of the national budget, are not consistent with the real possibilities of their financing.