Directions of modernization of the system of state strategic planning in Ukraine

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Directions of modernization of the system of state strategic planning in Ukraine

Sergii O. Kravchenko, Olena L. Yevmieshkina, Volodymyr I. Hornyk, Department of Public Administration and Economy V.I. Vernadsky Taurida National University; Valentyna V. Karlova, Department of Public Policy and Political Analytics National Academy for Public Administration under the President of Ukraine; Kseniia O. Velykykh, Department of Management and Public Administration O.M. Beketov National University of Urban Economy in Kharkiv

Анотація

Напрями модернізації системи державного стратегічного планування в Україні

Сергій Олександрович Кравченко, Олена Леонідівна Євмєшкіна, Володимир Ігнатович Горник, Кафедра публічного управління та економіки Таврійський національний університет імені В.І. Вернадського; Валентина Володимирівна Карлова, Кафедра публічної політики та політичної аналітики Національна академія державного управління при Президентові України; Ксенія Олександрівна Великих, Кафедра менеджменту і публічного адміністрування Харківський національний університет міського господарства імені О.М. Бекетова

Системно організоване державне стратегічне планування є вирішальним чинником ефективного державного управління. Проте основними проблемами такого планування в Україні можна назвати відсутність системного прогнозування та довгострокового стратегічного планування, невизначеність зв 'язків та механізмів узгодження між стратегічними документами, відсутність чітких та уніфікованих стандартів, процедур та розподілу функцій між суб'єктами процес планування. Тому метою даного дослідження є визначення напрямів модернізації державного стратегічного планування в Україні шляхом формування інтегрованої системи планування. У цьому дослідженні пропонується визначення поняття «державне стратегічне планування» з використанням порівняльного аналізу різних підходів і точок зору щодо стратегічного управління та стратегічного планування. Запропоноване визначення та проблемний аналіз існуючих організаційних структур і процедур планування в Україні покладено за основу рекомендованих напрямів модернізації для формування Системи державного стратегічного планування в Україні.

Запропоновано відповідну систему документів стратегічного планування в Україні на національному, регіональному та галузевому рівнях з використанням ієрархічного аналізу на цих рівнях та аналізу поточного набору затверджених українськими документів у відповідній сфері. Особлива увага приділяється національному рівню, оскільки національні стратегічні напрями та цілі становлять загальну основу для стратегічних документів інших рівнів. У дослідженні узагальнено методологічні засади, розроблено інституційний механізм формування та реалізації згаданої Стратегії, запропоновано розподіл функцій між державними та іншими акторами, задіяними в цьому механізмі

Ключові слова: довгострокова стратегія розвитку України, розподіл функцій

Abstract

The systematically organized state strategic planning is the crucial factor of effective public governance. However, main problems of such planning in Ukraine may be noted as absence of the systematic forecasting and longterm strategic planning, undetermined links and mechanisms of coordination between strategic documents, lack of clear and unified standards, procedures and functions' distribution between actors in planning process. Therefore, the aim of this study consists in determination of modernization directions of the state strategic planning in Ukraine by means of the integrated planning system formation.

The definition of 'state strategic planning ' is proposed in this study with using comparative analysis of various approaches and viewpoints concerning strategic management and strategic planning. The proposed definition and problem analysis of current organization structures and procedures ofplanning in Ukraine assume as a basis of recommended modernization directions to form the System of State Strategic Planning in Ukraine. The appropriate system of strategic planning documents in Ukraine at national, regional and sectoral levels is suggested with using hierarchy analysis across these levels and analysis of the current set of Ukrainian approved documents in proper field. Special attention is given to national level because national strategic directions and goals constitute general framework for strategic documents at other levels. The 10-years Development Strategy of Ukraine is proposed as the main strategic document of national level. The study generalizes methodological principles, and develops institutional mechanism for making and executing mentioned Strategy, proposes the functions' distribution between governmental and other actors involved in this mechanism.

Keywords: the long-term Development Strategy of Ukraine, functions' distribution.

Introduction

Today, no country can do without strategic planning. Modern world trends of the society development influenced by the processes of transformation in Ukraine. Having set itself the ambitious task of being a member of the world community with high standards of living, Ukraine must solve a large number of problems through the implementation of public administration reform [1]. The state strategic planning is the crucial factor of effective public governance for society. The progressive socio-economic development of Ukraine and the achievement of a high standard of living for its citizens depends on its quality [2]. In today's society, saturated with fast-moving changes, state strategic planning is an effective means of forecasting future problems and opportunities, which ensures the creation of a long-term strategic plan, the unity of strategic goals at the state, regional and sectoral levels, and the basis for making policy decisions. The state strategic planning should be carried out constantly to provide a reliable basis for the implementation of other types of management activities. Particularly important is long-term strategic planning, which outlines the general vectors and priorities of the country's development for a long period and in general determines its historical perspective [3; 4].

In Ukraine, it was not possible to build a functionally effective and structurally coordinated system of public governance, the reason for which is the lack of holistic strategic planning at the state level. At present, separate elements of the state strategic planning are existing, in particular, at sectoral, regional and local levels. Among strategic documents, there are the Development Strategy “Ukraine 2020” (optionally adopted without official legal procedure), the Activity Program of the Cabinet of Ministers of Ukraine, the State Strategy of Regional Development, state and regional strategies and programs for separate branches of society. These separate elements are not enough to ensure effective social and economic development of the country. As a result, taking into consideration the influence of external factors, the system of Ukrainian public administration is to perform tasks non-defined fully and sometimes - unrealizable goals formulated by politicians [5].

During the independence of Ukraine, many strategies and government programs aimed at stimulating economic growth and improving the social status of citizens approved. However, most of the stated goals in these programs and strategies not achieved. The reason for this consists in a number of problems in the state strategic planning. The main ones are:

- the long-term strategic planning of the country's development is not institutionalized;

- the systematic forecasting of economic and social development is absent;

- the legislation does not determine links and mechanisms of coordination between strategic documents at national, regional and sectoral levels;

- there are no clear and unified standards and procedures for making, implementation and results evaluation of strategic documents;

- the distribution of functions between actors (governmental, other public, non-governmental) in the state strategic planning process is not clear.

In this regard at the current stage of development of Ukraine, issues of conceptual vision and practical ways regarding the modernization of the state strategic planning in Ukraine are of particular relevance [6].

Therefore, the aim of this study consists in determination of modernization directions of the state strategic planning in Ukraine by means of the integrated planning system formation. A coherent, systematic process of state strategic planning facilitates the efficient use of resources, and promotes economic and social development of the country. We choose the national level as the main subject of analysis because it is most important in mentioned system. At the national level, an interrelated and coordinated set of strategic directions and goals is to be elaborated, covering all spheres of society. This is to be the ground and benchmark for developing strategies at the regional, sectoral and local levels [7-9].

For achieving the aim of this study, the rest of this paper is organized to perform following tasks:

• generalization of the approaches, principles, methods and domestic legal-normative base (empirical ground) for studying current conditions of the state strategic planning in Ukraine and determining its modernization directions (the section “Materials and Methods”);

• collection the literature about general understanding the modernization and the strategic planning (the section “Literature Review”);

• suggestion the definition of 'state strategic planning' for using it to recommend modernization directions of such planning in Ukraine (the section “The Concept of State Strategic Planning”);

• determination of these modernization directions to form the System of State Strategic Planning in Ukraine and appropriate system of strategic planning documents at national, regional and sectoral levels with emphasis on making and executing the long-term Development Strategy of Ukraine (the section “Modernization of the State Strategic Planning in Ukraine: The Main Directions and the Legal Base”);

• short presentation of the main results and recommendations of the study (the section “Conclusions”).

modernization strategic planning national

1. Literature review

In this article, the concept of modernization of the state strategic planning based on the views of the classics [10-13], modern scholars [14-17] and other. P. Shtompka [10] understands the idea of modernization as a synonym for virtually all progressive social changes. In another sense, the notion of “modernization” means the identical movement to “modernity”. In addition, the term “modernization” refers to reforms carried out in underdeveloped or underdeveloped societies in order to catch up with advanced, developed countries. Summarizing approaches to the concept of modernization, O. Danyl'yan [11] believes that the paradigm of modernization based on such important statements: 1) country with a high level of industrialization and informatization, sustainable economic development, high level and quality of life of the population can considered a modern or developed country; 2) society or a country that does not meet these conditions, are either traditional or transitional; 3) standards of development, “modernization” are Western countries, so the theory of modernization is often referred to as the theory of “westernization”; 4) “modernization”, “development”, “modernity” is a complex phenomenon that has technological, economic, political, social and psychological dimensions; 5) the processes of modernization are global, progressive and irreversible, since in the end, painfUl innovations inevitably lead to improvements both in the material and in the socio-cultural side of human existence.

Modern scholar N. Obushna [15] understood “Modernization” as a systemic process of various kinds of shifts and transformations of specific institutional areas of society, which ensures the transition of the social order from one conditions of development to another in the direction of its modernization and constant quality improvement. “Modernization is change for progress. This is a special aspect of development of society, which is continuously creative and yet remains stable. It also means a socially differentiated and functionally equipped and industrialized society. Thus, modernization simply connotes creativity, stability, differentiation and industrialization”. In modern conditions, modernization considered as a conscious effort of the state to carry out qualitative transformations in society taking into account the experience of advanced countries in order to modernize the operating system [18-20]. Modernization of the state is most appropriate in such areas as political system, politics, state administration, state ideology and values [14]. Yu. Sumin [21] considers among main directions of modernization of the state forming the system of strategic planning, which envisages the formulation of goals and building programs for the development of society. Given the above, modernization of the state strategic planning in Ukraine is expedient to understand as its qualitative transformation into an effective system of long- and medium-term strategic planning at state, regional and sectoral levels, which can provide a clear vision of Ukraine's future and ways to achieve it. This system has to include the set of institutional, procedural and value components, in particular:

- subjects of state strategic planning;

- officially approved mutually agreed strategic documents;

- the value of the development of these documents;

- normative legal acts and normative-methodical documents, which regulates activities related to state strategic planning.

А. Johnsen [22] explores development strategic management from 1960s, when its academic conception become a diverse field spanning business, non-profit as well as public sector strategy. By the early 1980s, public sector organizations also started to use strategic management concepts and techniques. The author points to policy formulation, planning and budgeting have for a long time been important activities in the public sector. For our study is important about that “Today, strategic management is common in the public sector in many countries and across different tiers of government”.

В. Schultz [23] talks about strategic planning in the federal government. It was mandated with passage of the Government Performance Results Act (GPRA) of 1993. GPRA requires agencies to develop strategic plans, performance plans and conduct gap analyses of projects. Federal agencies also are required to conduct performance management tasks such as setting objectives, measuring results against the objectives, and reporting progress against the overall strategic plan. According to J.M. Bryson, L.H. Edwards [24], strategic planning can be applied to organizations, collaborations, functions (e.g., transportation or health), and to places ranging from local to national to transnational. Effective strategic planning needs to be harmonization with the political level and the public [25].

In developing the directions of modernization, it is important to study effective experience of strategic planning. On the practice in Singapore study the collective formulation of strategic plans for the nation is made possible by concerted yet flexible implementation mechanisms as well as established consultation networks among different stakeholders over the years. Concept plans are implemented through the Master Plan, which is updated every five years by planners, their counterparts in different parts of the government and an engaged public, involving again a lot of negotiations, arguments, compromises and coordination [26].

Useful for our study is an analysis of public management in Norway realized by Age Johnsen. “All central governmental organizations are required by regulation to formulate goals, measure performance, evaluate their outcomes and secure that their decision-making is based on sound evidence. Local authorities are annually required by regulation to report accounts, activities and performance to central government in a mandatory performance management system. There is no formal requirement for local authorities to use management by objectives and benchmarking, but most do” [27-29].

Researchers define the role and place of values in strategic management processes. “Cultural values and beliefs (religious, traditional and rational) are operative at all levels of the strategic decision-making process and thus, they have a strong and deep meaning in strategic management processes as core competences” [30]. Ch. S. Jung, G. Lee [31] characterize the purposeful process of strategic planning: “Goal-setting theory and the planning-performance model provide important theoretical backgrounds for the improvement of organizational performance in government agencies”.

V. Ramanujam, N. Venkatraman, J. Camillus [32] proves influences on effectiveness seem to vary depending on the criterion of effectiveness used, overall, the most important dimensions were system capability, or a system's orientation toward creativity and control; resources provided for planning; and functional coverage. The system of key performance indicators determines strategic efficiency. Key performance indicators, when designed properly, can often still provide management at various levels of the organization with effective feedback and insights to gauge the overall health of the enterprise [26].

2. Materials and methods

Achievement the aim of this study is based, first, on conceptual approaches to the modernization process in modern society and state. These approaches allow general understanding the modernization of state strategic planning in Ukraine. Comparative analysis of various approaches (decision-making, process, activity, target) and viewpoints concerning strategic management and strategic planning, including in public governance, and logical generalization of appropriate concepts are used for suggestion the definition of 'state strategic planning'.

System approach to the state strategic planning, its suggested definition, and problem analysis of current organization structures and procedures of planning in Ukraine assume as a basis of recommended modernization directions to form the System of State Strategic Planning in Ukraine. Existing elements of the state strategic planning in Ukraine are summarized from the Ukrainian Laws “On State Forecasting and Making Programs of Economic and Social Development of Ukraine” [33], “On Principles of Domestic and Foreign Policy” [34], “On Principles of State Regional Policy” [35], “On State Target Programs” [36]; Activity Rules on the Verkhovna Rada of Ukraine and on the Cabinet of Ministers of Ukraine; Typical Activity Rules on the Local State Administration; etc.

The suggested system of documents of the state strategic planning in Ukraine is made with using hierarchy analysis in accordance with governance levels in Ukraine and analysis of the current set of Ukrainian approved documents in proper field, namely, the Development Strategy “Ukraine 2020” [37]; the Activity Program of the Cabinet of Ministers of Ukraine; the State Strategy of Regional Development of Ukraine [38]; state strategies for the development of certain spheres and sectors of society; state target programs; regional strategies and development programs for separate branches of society.

The structure and content of the long-term Development Strategy of Ukraine is proposed to elaborate in line with such methodological principles as orientation to quality of citizens' life, interconnections between development directions, their axiological and functional significance, convergence from abstract to concrete, forecasting, composing the image of country's future. Process approach to the state strategic planning, modelling method and structural-functional analysis are the methodological foundations for appointing all state bodies and other public actors consisting the institutional mechanism of preparation, approval, implementation, and results evaluation of the Development Strategy of Ukraine, and for proposing distribution of functions between these actors. The main legal grounds for suggested institutional composition and actors' functions are the Constitution of Ukraine [39] (articles 85, 106, 116, 119, 143); the Ukrainian Laws “On the Cabinet of Ministers of Ukraine” [40], “On Central Executive Bodies” [41], “On Local State Administrations” [42], “On Local Self-Government” [43]; Resolution of the Cabinet on Ministers of Ukraine “On the Ministry of Economic Development, Trade and Agriculture” [44].

Recommendations on including in procedures of making, realizing and results evaluating strategic documents the modern mechanisms of consultation, partnership, and citizens' control are developed with help of analysis of Ukrainian legal-normative base concerning interaction between the public and authorities, and with considering appropriate foreign experience. The analyzed Ukrainian legal-normative base consists of the Ukrainian Law “On Appeals of Citizens” [45]; Resolution of the Cabinet of Ministers of Ukraine “On ensuring public participation in the formation and implementation of state policy” [46]; Resolution of the Cabinet of Ministers of Ukraine “On Approval of the Procedure for Facilitating Public Examination of the Activities of Executive Bodies” [47]; the set of draft laws in this field etc.

3. Results and discussion

3.1 The concept of state strategic planning

Theoretical analysis of modernization directions of the state strategic planning in Ukraine must be based, first of all, on clear definition of the “state strategic planning” concept. This one originates from the general concept of “strategic planning” as foundation of purposeful organization activity. There are many definitions of strategic planning which mark out different aspects of this very complex and important activity. J.M. Bryson, B.C. Crosby, J.K. Bryson [48] outline this complexity when consider effective strategic planning as “a complex cognitive, behavioral, social and political practice in which thinking, acting, learning, and knowing matter”. Therefore, strategic planning in technological dimension “is not any one thing, but is instead an adaptable set of concepts, procedures, tools, and practices” “that must be applied sensitively and contingently in specific situations” [49].

Some authors understand the essence of strategic planning in short as forming of the organization's future, e.g., “determination of firm's future status depending on external conditions” [50], “formal consideration of an organization's future course” [51], “designing of probable or logical future - generalized scenario - and desired future conditions” [6]. Such future forming requires a set of fundamental and vital decisions aimed at effective organization's functioning in long-term perspective [52]. Thus, it may be marked out the decision-making approach to strategic planning. According to [53], strategic planning is “a deliberative, disciplined effort to produce decisions and actions that shape and guide what an organization or other entity is, what it does, and why it does it”. In other interpretation, strategic planning provides for fundamental choices about an organization's existence (mission, vision, values, resources, target audience etc.) [54].

Making a set of mentioned decisions requires a special sequence of actions therefore the process approach to strategic planning is used in many scientific publications. As shown in [55], strategic planning is a process consisting in determination of long-term organization's perspective, formulation of specific objectives of activity, development of strategy to achieve assigned objectives in given internal and external conditions. Ch.S. Jung and G. Lee [31] consider strategic planning as “analytical, logical, and systematic processes through which organizations develop policy options and specific goals which differ from the status quo through analyzing and assessing the internal and external environment”. According to this approach, strategic planning integrates several kinds of managerial activity, namely, situational analysis, setting goals and objectives, forecasting, estimation and distribution of organizational resources, adaptation to external environment, strategy development, internal coordination, strategy implementation planning etc. [56]. In detail, scientists include to strategic planning process such main activities [53; 57-61]:

- stakeholder analysis;

- determining main elements and timeline of the strategic planning process;

- clarifying organizational legal statutes or mandates;

- establishing or updating mission, vision, and values;

- diagnosing the current situation by assessing external and internal environment;

- identifying strategic issues;

- creating possible strategic alternatives and selecting optimal alternative;

- developing and agreeing strategy;

- elaborating implementation plan.

Forming a system of strategic goals and derived objectives is central point among these activities. For instance, in the Encyclopedia of Public Administration strategic planning is considered as long-term planning on basis of intermediate objectives determined by main purpose and strategic goals. Scholars also emphasize a crucial need of integral vision as basis of strategy development. As B. Schultz [23] claims, all variations and approaches to the strategic planning process should start with the desired end state that all stakeholders share. In A.W. Steiss [52] view, a vision statement is a guiding image of organization's success expressed in terms of social utility in appropriation to mission and consistency with values. Compelling vision is very important because it clearly articulates the future end state and motivates the organization personnel to joint efforts [23; 52].

In public governance, strategic planning is considered as necessary tool that allows governing institutions and territorial communities to effectively use public resources, respond to changes in society and achieve the significant social goals [53]. Various definitions of this strategic planning adapt mentioned general viewpoints and approaches. First, strategic planning in public governance intends to form the future of some social system. V. Bakumenko, P. Nadolishniy, M. Izha and G. Arabadzhy [56] characterize it as scientific supposition of the condition of governed entity, e.g., country, in certain time. In V. Malynovskyi' [62] definition, strategic planning is “a systematic process by means of which state governing bodies forecast and plan their activity on the future”. From decision-making approach, J.M. Bryson [53] considers strategic planning as “a disciplined effort to produce fundamental decisions and actions shaping the nature and direction of an organization's (or other entity's) activities within legal bounds”.

However, scholars mainly use the process approach noting in definitions specific kinds of public bodies' planning activity, such as determining strategic goals and objectives in some social sphere, identification of public stakeholders and theirs demands, analysis of public environment, deciding on acquisition and allocation of public resources, social issues management, creating and selecting policy alternatives of social system development etc. [22; 52]. The Encyclopedia of Public Administration marks out especially goals determination among mentioned activities considering strategic planning in public governance as planning goals of the state development and optimal set of appropriate trajectories with real resource constraints [63]. Moreover, characteristic feature of such strategic planning is operating with large-scale problems [56]. Therefore, it should produce “the big picture” (comprehensive model), i.e., vision of some territorial unit, sphere, region, country at whole [22; 64]. The Draft Law of Ukraine “On State Strategic Planning” [65] defines vision as “intelligent logical design of desired future image, and its forming starts the strategic planning process and gives a possible way to achieve selected alternative of postponed perspective”. In public governance, compelling vision is needed especially since it provides for the only reliable foundation of consolidated activity of all society sectors aimed at accomplishment of great national programs.

Some definitions are concerned just the state strategic planning. According to F.V. Saganyuk, M.M. Lobko, O.V. Ustymenko, A.K. Pavlikovskyi [66], it means determination of purpose, objectives, priorities, and measures package within the state policy directed to socio-economic development of the state. The Draft Law of Ukraine “On State Strategic Planning” [65] gives detailed definition of appropriate notion as a function of the state government bodies and other state agencies consisting in determination and achievement of goals, evaluation of alternative models and development directions, selection of priorities with recourse limits, elaboration and execution of related tasks and measures oriented to results attaining, assessment of effectiveness and analysis of differences between goals and results, decision making on review of state policies. Cited definitions are reflect poorly the specificity of strategic planning at the state level, its orientation to the public good and prosperity of society, and crucial need of future vision. Taking into account all observed approaches and viewpoints, we suggest the following definition.

State strategic planning is a sequence of fundamental long-term decisions at the state level with participation of wide range of governmental and non-governmental stakeholders that creates the compelling vision of country's future according to mission of the state and national values, forms the system of national goals, priorities and derived objectives, and elaborates the state strategy, appropriate set of policies and programs for integrated development of country, its regions, spheres of society, and territorial units [67;68].

3.2 Modernization of the state strategic planning in Ukraine: The main directions and the legal base

Based on formulated definition of the state strategic planning, the main modernization directions of such planning in Ukraine should be aimed at form the integrated and effective System of State Strategic Planning. These directions may be recommended as follows:

1. Approval of the institutional foundations of long-term strategic planning, including:

- adoption of the Law of Ukraine “On State Strategic Planning”;

- approval of the long-term Development Strategy of Ukraine;

- legislative consolidation of the development of the Forecast of Economic and Social Development of Ukraine for the long-term period;

- legislative consolidation of the list of basic values that cover the functioning and development of society, satisfaction of material and spiritual needs of people;

- providing participants with state-level strategic planning of long-term forecasting and planning functions, consolidation of control functions for execution of strategic documents and resource provision;

- strengthening the interconnection of strategic planning and state forecasting;

- monitoring and evaluating strategy implementation.

2. Coordination in the System of State Strategic Planning through establishment the suggested system of documents, namely:

- formation a system of mutually agreed on content and time limits of long-term (10 years) and mid-term (5 years) strategic documents at national, regional and sectoral levels as presented in the Table 1;

- legislative definition of links and mechanisms of coordination between these strategic documents;

- application of the proj ect approach in order to increase concentration of efforts to achieve strategic goals, provide organizational, resource and public support for the implementation of the state strategic documents (Table 1).

Table 1. The suggested system of documents of the state strategic planning in Ukraine

Source: compiled by the authors

3. Determination of unified standards, procedures and actors' functions in the state strategic planning process, which provides for definition:

- normative requirements to the form and structure of all strategic documents, first, the Development Strategy of Ukraine and the Activity Program of the Cabinet of Ministers of Ukraine;

- unified system of target indicators of state strategic planning;

- unified criteria for assessing the implementation of strategic documents;

- regulatory requirements for the development of strategic documents, procedures for reporting on implementation of strategies;

- clear delineation and consolidation of the functions of participants in state strategic planning;

- approval of the procedure for preparation and approval of strategic documents.

4. Scientific support of the state strategic planning, namely:

- research of external and internal tendencies of the country's development;

- preparation of conceptual basis on the elaboration of Ukraine's development strategy and medium-term strategies.

The main legal document for state strategic planning should be the Law of Ukraine “On State Strategic Planning”. It must determine the legal, economic and organizational principles for the formation of a comprehensive System of State Strategic Planning of the country's development, and it has to establish the general procedure for the development, approval, implementation, monitoring, evaluation, control of documents of state strategic planning, as well as the powers of participants in such planning. The purpose of the Law is to provide the legal basis for clear and coordinated strategic planning across the national, regional and sectoral levels of public governance in Ukraine with linkage to available resources.

The main long-term document should be the Development Strategy of Ukraine developed for a 10-years period. It has to be based on following scientific principles [69]. The principle of interconnections between development directions (it will allow to consider the systemic influence of individual components of the strategy on the achievement of the ultimate goals). The principle of convergence from abstract to concrete (it contributes to the definition of tactics for achieving a strategic goal). The principles of axiological and functional significance (by which the role and place of certain directions in the common strategy will be determined). While forming the Strategy, a systematic approach, a situational approach, methods of system- structural and comparative analysis, methods of functional analysis, economic and statistical methods should be used [70]. It is crucial that the Strategy must be elaborated proceeding from results of the long-term Forecast of Economic and Social Development of Ukraine. О. Kendyukhov [70] proposes also the very ambitious goal of Strategy as to form one of the world's fastest post-industrial economies in Ukraine with a standard of living, higher than the average in ten leading countries of the world. Key strategic components offered by him are:

- new innovative science and technology policy;

- new education policy;

- new small business policy;

- new monetary policy;

- agricultural innovation policy;

- reform of public administration and lawmaking;

- judicial reform;

- reform of the electoral system;

- new foreign economic policy;

- reform of health care system;

- ensuring a fair distribution of national income between society and the state;

- elimination of corruption

It is worth to mention that existing of the Development Strategy of Ukraine in itself will increase a public confidence in state authorities and government's ability to implement successfully its functions in the problem solving for society development. The objectives of the Strategy are suggested to be specified in detail in the Activity Program of the Cabinet of Ministers of Ukraine, and the latter has to be grounded also on the Forecast of Economic and Social Development of Ukraine developed for the mid-term. The Activity Program should include the directions of the state policy at the sectoral level within five years. For implement the Activity Program, strategies for the development of certain spheres and sectors of society are to be developed. These documents specify the strategic tasks and policies in each area of government activity at the sectoral level. The forecasts of development of separate branches of society have to constitute also the basis of the sectoral strategies. Implementation of these strategies is proposed by means of the mechanism of elaborating and realizing the set of nation-wide and other state target programs for spheres and sectors society development (economic, social, cultural, ecological, scientific etc.).

At the regional level, the State Strategy of Regional Development of Ukraine for 10-years period has to be developed. It should be based also on the Forecast of Economic and Social Development of Ukraine in regional dimension, and in line with objectives of the Development Strategy of Ukraine. According to mentioned Regional Strategy, the plans of economic and social development of regions, regional strategies and development programs for separate branches of society are supposed to elaborate and implement on the mid-term. In general, the logic of strategic planning is considered as a dynamic set of interdependent management processes: characteristic of the initial conditions, the definition of goals, the identification of possible resources, the development of methods for achieving goals, formation of a mechanism for implementation.

The process of strategic planning involves the presence of risks. The main risks of strategic planning are determined by А. Semenchenko [71] as follows:

- replacement of its content by form, bureaucracy of procedures;

- delay in the development of strategic plans that no longer correspond to the changed environment;

- not the application of a systematic approach to strategic activities.

Development and realization the system of strategic documents presented in the Table 1 must include institutional mechanisms for the preparation, approval, implementation, monitoring, and performance evaluation of appropriate documents. First, the clear mechanism is needed for making and executing the Development Strategy of Ukraine. All state and other public actors must participate in this process through performing certain functions. Appropriate propositions are summarized in the Table 2.

Table 2. Proposed distribution of functions between actors for making and executing the Development Strategy of Ukraine

Source: compiled by the authors

Thus, functions of the President of Ukraine must be initiating the definition and approval of long-term strategic priorities in the form of Development Strategy of Ukraine, and political advancing its implementation. The Verkhovna Rada of Ukraine is proposed to perform function on adoption the basic Law on State Strategic Planning and adjusting it timely if needed, and on approval the additional legislation for effective making and executing the Development Strategy of Ukraine. The Cabinet of Ministers of Ukraine should carry out overall organization functions concerning preparation and implementation the Development Strategy of Ukraine, and elaboration and approval forecasts of economic and social development of Ukraine for the long-term and midterm periods, and adoption the Activity Program of the Cabinet of Ministers of Ukraine as concretization the Development Strategy directions on mid-term period.

The Ministry of Economic Development and Trade is a key central state executive body responsible for formation and implementation of general state policy for country's economic and social development [72]. The main functions of this Ministry are necessary to cover activities on practical coordinating long-term and medium-term forecasts of country's economic and social development, and on coordinating preparation, implementation and results evaluation of the Development Strategy of Ukraine across central and local public authorities. Ministries, other central state executive bodies, regional state administrations, and local public authorities are suggested to take part in development of the forecasts of economic and social development of Ukraine (long-term and mid-term), to participate in elaboration of the Draft Development Strategy of Ukraine, to implement appropriate sections of this Strategy, and to report on their results.

Scientific and other public institutions are expedient to develop proposition to the Draft Development Strategy of Ukraine, to organize wide public discussion of this Draft for achievement consensus in society about strategic directions, goals and main ways of implementation, to monitor the Strategy implementation, and to evaluate its results concerning society effectiveness. State and non-governmental research organizations may also play a significant role in problem identification of society and forecasting their development. In general, an important element of the state strategic planning is the availability of public participation [73]. The effectiveness of this planning process should ensure the public and authorities interaction. Active participation of the wide public in the formation of state strategy involves the joint development of fundamental decisions by public authorities, local self-government bodies, non-governmental institutions and citizens. Responsibility for these decisions remains with the authorities. This trend is currently underdeveloped in Ukraine but other countries use widely methods of interaction between the public and authorities [74]. Therefore, it is very useful to include in procedures of state strategic planning in Ukraine, especially of the Development Strategy of Ukraine, following mechanisms of interaction between the public and authorities:

- consultation mechanisms such as citizens' panel, online consultations through e-petitions, discussion forums, blogs, and social networks;

- partnership mechanisms, e.g., citizens' jury, dialogue process etc.;

- mechanisms of citizens' control, in particular, public expertise, public monitoring, and public audit.

Conclusions

In this research, the modernization directions of the state strategic planning in Ukraine are proposed. In whole, these directions mean formation of the integrated planning system. For the theoretical viewpoint, development of such system is based on the concept of state strategic planning, and this concept is proposed in this article. At present, separate elements of the state strategic planning are existing, but appropriate effective system is absent. Accordingly, main problems may be noted in this field as absence of the systematic forecasting and long-term strategic planning of the country's development, undetermined links and mechanisms of coordination between strategic documents, lack of clear and unified standards, procedures and distribution of functions between governmental and other actors in the state strategic planning process. Taking mentioned into account, we recommend the following directions to form the integrated and effective System of State Strategic Planning in Ukraine:

- approval of the institutional foundations of long-term strategic planning;

- coordination in the System of State Strategic Planning through establishment the system of documents suggested in this article;

- determination of unified standards, procedures and actors' functions in the state strategic planning process;

- scientific support of the state strategic planning.

The peculiarity of the proposed system is that the forecasting and planning of the socio-economic development of the state for the long-term period should carried out, as well as harmonization of strategic documents across national, regional and sectoral levels should achieve. Among mentioned modernization directions, we choose the national level as the main subject of analysis because national strategic directions and goals constitute general framework for strategic documents at regional and sectoral levels and influence crucially on effectiveness of governance results for society. In this relation, the main document of national level should be the long-term Development Strategy of Ukraine developed for a 10-years period. This will allow to define the main goals and priorities of Ukraine's development over the long-term, and, in general, to compose the image of country's future. Such image is very important for citizens, especially, for the young people to plan their life in Ukraine. Concretization of the Strategy directions is suggested in the Activity Program of the Cabinet of Ministers of Ukraine for 5 year. It is crucial that the Strategy and the Activity Program must be elaborated, accordingly, proceeding from results of the long-term and the mid-term Forecasts of Economic and Social Development of Ukraine.

Effective preparation, approval, implementation, and results evaluation of the Development Strategy of Ukraine requires clear institutional mechanism in which all state bodies and other public actors must participate. There are the President of Ukraine, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, ministries, other central state executive bodies, regional state administrations, local public authorities, research organizations, non-governmental institutions, etc. Each of these institutions has to perform certain functions, and proposed functions' distribution is shown in the article. Effectiveness of the state strategic planning is impossible without interaction between the public and authorities. This trend is currently underdeveloped in Ukraine therefore it may be strongly recommended to include in procedures of making, realizing and results evaluating strategic documents modern mechanisms of consultation, partnership, and citizens' control.