ABOUT INNOVATIVE CORPORATE GOVERNANCE IN MUNICIPAL FORMATION

Abstract

In modern conditions, Russian citizens live only in municipalities, so the closest level of power for the population is municipal. Most of the issues of local importance, the subjects of conduct come from the life-supporting group of functions of local authorities, and these are the cases that every resident of the municipality needs. The practice of functioning of the municipal economic complex is complicated by a number of circumstances. Over the past decade, the number of devolved powers from the Federal and regional levels to the municipal level has increased by about one third. At the same time, the principle of subsidiarity is often not fulfilled, namely, that the transferred powers, which have become issues of local self-government and the objects of responsibility of the municipality, do not receive appropriate funding from the budget or extra-budgetary funds of the higher level of power. In addition, the presence of municipal institutions (e.g., health care, social protection) does not release the local authorities from responsibility for their functioning. With a significant increase in the number of issues of local importance and, at the same time, the lack of own income, the problem of effective use of the potential of development of the municipality. It is no coincidence that the decree Of the Government of the Russian Federation dated December 17, 2012 №1317 «On measures for the implementation of the decree of the President of the Russian Federation» dated April 28, 2008 №607 «On the evaluation of the effectiveness of local governments of urban districts and municipal areas» and paragraph 2 of the decree of the President of the Russian Federation dated May 7, 2012 №601 «On the main directions of improving the system of public administration» defines a list of indicators for assessing the effectiveness of local governments of urban districts and municipal areas, including indicators of the Russian Federation, necessary for the calculation of inefficient local budget expenditures. The first section of these indicators is economic development. Implementation of new approaches to local governance remains insufficient. In most municipalities, the organizational and management potential is not fully used, there are significant reserves for improving the efficiency of local development management. Many municipalities do not have strategic planning technologies. In existing development plans and programmes, targets often do not meet the real needs of the local population. Individual development plans and programmes developed by local organizations do not contain a well-developed implementation mechanism, which leads to contradictions in the system of objectives and insufficient resources in the development management process. In the context of a significant increase in the number of municipalities, reduction of local taxes and fees, reducing the revenue of local budgets, the problem of effective use of their own development potential becomes particularly relevant. In this regard, a number of new theoretical developments and concepts of integration processes on the basis of corporate mechanisms of development of the municipality.