Ensuring the development of the national economy as a means of effective implementation public management in Ukraine in conditions of digitization

The development of the national economy in the conditions of digitalization in the implementation of public administration in Ukraine. Improvement of legal, personnel, informational and financial provision of innovative activities in state authorities.

Рубрика Государство и право
Вид статья
Язык английский
Дата добавления 29.09.2023
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Simon Kuznets Kharkiv national university of economics

State governance, public administration and economic policy department

Ensuring the development of the national economy as a means of effective implementation public management in Ukraine in conditions of digitization

Shumska H.M., C. Econ. Sc., ass. professor

Melnyk V.I., C. Econ. Sc., ass. professor

Kharkov

Abstract

The purpose of the article is to substantiate the leading directions of ensuring the development of the national economy in the conditions of digitalization on the basis of the implementation of effective public management in Ukraine, which will make it possible to achieve high social development in the country. In the article the importance of increasing the effectiveness of innovative activities in government bodies to ensure the effectiveness of the public management system in Ukraine in the conditions is revealed digitization. Installed the connection between the process of achieving the development of the national economy and the process of ensuring effective innovative activity by authorities, which is based on the implementation of effective public management. The main obstacles to effective innovation policy in the country have been identified. A comprehensive approach was further developed regarding the provision of effective innovative activity in the authorities on the basis of digitization, which unlike the existing one, focuses on improvement regulatory, institutional, personnel, motivational, scientific-methodical, information-communication and financial support innovative activity in authorities. Using the proposed approach to ensuring effective innovative activity in authorities will allow achieve sustainable development of the national economy in the country. With proposed directions of development of the national economy countries that are based on ensuring effective public management of innovative activities of authorities in Ukraine in the conditions digitization: the implementation of an innovative personnel policy that will allow for the formation of the necessary professional competences of public servants and will reduce resistance to innovations based on the acceleration of their readiness for these innovations; the use of modern information and communication technologies to increase the level of professional mobility of employees during innovative activities; introduction of management innovations by authorities to increase the capacity of communities and reduce the deficit of local budgets; intensification of project activities of authorities; strengthening the institutional support of innovative activity in the authorities to increase the efficiency of the process of coordination and support of this activity and the creation of a favorable innovative environment in the country.

Keywords: national economy, public management, digitization, effective innovative activity in authorities, digital competences of public servants, readiness of public servants for innovations

Анотація

Забезпечення розвитку національної економіки засобом здійснення дієвого публічного управління в Україні в умовах цифровізації

Шумська Г.М., Мельник В.І., к.е.н., доцент кафедри державного управління, публічного адміністрування та економічної політики, Харківський національний економічний університет імені Семена Кузнеця, м. Харків

Метою статті є обґрунтування провідних напрямів забезпечення розвитку національної економіки в умовах цифровізації на основі здійснення дієвого публічного управління в Україні, що дасть змогу досягти високого суспільного розвитку в країні. У статті розкрито значення підвищення дієвості здійснення інноваційної діяльності в органах влади для забезпечення ефективності системи публічного управління в України в умовах цифровізації. Встановлено зв'язок між процесом досягнення розвитку національної економіки та процесом забезпечення результативної інноваційної діяльності органами влади, що ґрунтується на здійсненні дієвого публічного управління. Визначено основні перешкоди проведення ефективної інноваційної політики в країні. Дістав подальший розвиток комплексний підхід щодо забезпечення дієвої інноваційної діяльності в органах влади на засадах цифровізації, який на відміну від існуючого, акцентує увагу на удосконаленні нормативно-правового, інституційного, кадрового, мотиваційного, науково-методичного, інформаційно-комунікаційного та фінансового забезпечення інноваційної діяльності в органах влади. Використання запропонованого підходу до забезпечення дієвої інноваційної діяльності в органах влади дозволить досягти стійкого розвитку національної економіки в країні. Запропоновано напрями розвитку національної економіки країни, які ґрунтуються на забезпеченні дієвого публічного управління інноваційною діяльністю органів влади в Україні в умовах цифровізації: реалізація інноваційної кадрової політики, яка дозволить сформувати необхідні професійні компетентності у публічних службовців і зменшить опір інноваціям на основі прискорення їх готовності до цих інновацій; використання сучасних інформаційно-комунікаційних технологій для підвищення рівня професійної мобільності службовців під час інноваційної діяльності; запровадження управлінських інновацій органами влади для підвищення спроможності громад і зменшення дефіциту місцевих бюджетів; активізація проектної діяльності органів влади; посилення інституційного забезпечення інноваційної діяльності в органах влади для підвищення ефективності процесу координації і підтримки цієї діяльності та створення сприятливого інноваційного середовища в країні.

Ключові слова: національна економіка, публічне управління, цифровізація, дієва інноваційна діяльність в органах влади, цифрові компетентності публічних службовців, готовність публічних службовців до нововведень

Introduction

Effective system of public management in Ukraine is one of the main factors accelerating the rate of development of its national economy, getting out of crisis situations, solving social problems in conditions of shortage of material and financial resources. That is why it is stable development of the national economy in Ukraine, especially in the conditions of martial law, should be based on large-scale, rapid and timely updating of the content of public management through innovative development. Under these conditions, effective implementation innovative activity by public authorities should become the basis for achievement development of the national economy of Ukraine and creation of prerequisites for European integration.

Along with this, modem conditions, characterized by the digitalization of all spheres of the national economy, create prerequisites for a radical revision of the model of public management at the state level and at the level of local self-government in order to ensure the effectiveness and efficiency of the performed functions in accordance with new challenges, ensuring the democracy of procedures and decisions with the use of modern information technologies.

The development of the digital society, the relevance of which is growing at a faster pace in conditions of martial law, exerts a significant influence on the organization of the interaction of the subjects of socio-economic systems, changes the status and composition of the participants in the communicative process, the principles of their interaction based on network communication, promotes openness and market development public services. In such conditions, the digital transformation of public management is a defining condition for ensuring the development of the national economy in the new reality, which depends on the effectiveness of the processes of digital transformation of industries, regions, as well as the competitiveness of the state and its ability to integrate into the global economic environment. This confirms the relevance and timeliness of this study.

Analysis of recent research and publications. Separate theoretical-methodological and practical aspects public management, its reformation and the application of digital technologies were studied in the scientific works of many scientists, in particular: V. Bakumenko, K. Vashchenko, N. Gavkalova, N. Goncharuk, S. Kvitka, V. Kuibida, M. Lakhizha, O. Obolenskyi [1-8] and others.

Theoretical and practical aspectsimplementation of innovative activities in government bodies was studied by many scientists: I. Degtyarova, A. Nikiforov, M. Petryshyna, by E. Rogers, S. Seryogin, Yu. Sharov [9-13] and others. Some theoretical and practical aspects of the development of the national economy were studied by such scientists as V. Geets, M. Kyzym, P. Krush, V. Tarasevich [14-17] and others. At the same time, the main theoretical and applied issues of ensuring effective public management as a guarantee of sustainable development of the national economy in Ukraine in the conditions of digitalization have not yet been fully covered, and issues related to ensuring effective innovative activity of public authorities remain unresolved, which depends on the effectiveness of the processes of digital transformation of the state and its ability to harmoniously integrate into the global economic environment. All of the above justifies the purpose of scientific research.

Setting objectives. The purpose of the research, in view of the above, is to substantiate the leading directions ensuring the development of the national economy in conditions of digitalization on the basis of effective public management in Ukraine, which will make it possible to achieve high social development in the country.

Presenting main material research

At the current stage of development of Ukraine in conditions of digitization for speeding up the pace of development of the national economy are put forward promotion task effectiveness of public management, which can be achieved based on the development and implementation of innovative tools and digital technologies by public authorities. To solve these tasks, it is advisable to focus special attention on the organizational arrangement of innovative activities of public authorities, the implementation of digital technologies in their activities and the rational use of digital potential, the creation of a favorable innovative environment in the system of public authorities. The synergistic potential of social, mobile, cloud technologies, data analysis technologies, and the Internet of Things individually and collectively can lead to transformational changes in the public management system and make it effective, reactive, and valuable.

The fact that digitalization is one of the main factors of the growth of the national economy is undeniable. The impact of digitalization on public authorities is reflected not only in the change in the way employees act and their interaction with citizens, but also in the implementation of digital innovative tools in the activities of authorities. Therefore, the digital transformation of the public management system should be based on the implementation of a set of actions aimed at improving and modernizing all its processes, and the introduction of information and communication technologies in order to improve the quality of public services. Under these conditions, public servants must take on new roles and responsibilities, and therefore must be ready to master innovative technologies and acquire digital competencies.

The rapid spread of digital technologies in all spheres of the country and the conditions of martial law in Ukraine require the prompt implementation of innovative processes in the activities of public authorities and the improvement of their effectiveness. In this context, it should be noted that without the introduction of relevant innovations in the public management system, the authorities will not be able to provide quality public services to the population, and it will be impossible to achieve a high level of socio-economic development in the country. So, the innovations will help to build Ukraine with a strong central government and self-governing capable communities, which, in turn, will ensure sustainable development of our country's national economy.

It should be noted that the use of this or that innovative tool, management technology, approach to management, form, method of work of public authorities in practice should be based not only on taking into account accumulated global experience and available financial resources, but also on taking into account the peculiarities of their work, which will ensure the effectiveness and efficiency of the implementation of innovative activities by public authorities. At the same time the innovative activity of public authorities consists in creating favorable conditions for the sustainable development of the national economy in accordance with the strategic goals and objectives of the state with minimal costs for the implementation of this activity by improving the work of public authorities (for example, the use of one or another innovative tool, management technology, management approach, form, method of work of authorities).

According to the annual report "Global Innovation Index 2021", which compared the innovative activity of 132 countries and economies of the world, Switzerland was recognized as the most innovative country in 2021, followed by Sweden, the United States, Great Britain and the Republic of Korea. In 2021, Ukraine took 49th place among 132 countries against 45th place in 2020 and 32nd place among 39 European countries, and in the group of countries with a "below average" income level - 3rd place, with a GDP per capita of 12,710 dollars for PKS. In 2021, 19 economies showed better innovation results (knowledge and technological results, creative results) compared to their innovation resources (infrastructure, institutions, market and business complexity, human capital and research) - these are the so-called countries of innovation achievements. This group also includes Ukraine. The strengths of Ukraine remain: "Knowledge creation" (27th place), "Ratio of the number of patents by country of origin to GDP" (22), "Ratio of useful models by country of origin to GDP" (1), "Expenditure on computer and software provision as a percentage of GDP" (17), "Export of ICT services as a percentage of the total volume of foreign trade" (9). According to the second sub-index of innovative results - "Creativity" - Ukraine moved from 44th place in 2020 to 48th in 2021, in particular according to indicators: "Intangible assets" - 29th place against 23rd, "Online creativity" - 45th against 39th in 2020. Strengths of this sub-index: "Creation of mobile applications by country of origin of the developer in relation to GDP" (17th place) and "Number of applications of residents to obtain intellectual property rights to trademarks and industrial designs by country of origin in relation to GDP" (10th and 15th places) [18]. According to the index of innovative development presented by the Bloomberg agency in 2021 [19], Ukraine ranked 58th (down 2 positions compared to 2020) among the 60 studied countries of the world.

The Strategy for the Development of the Sphere of Innovative Activity for the Period Until 2030 [20] defines the main barriers to the development of innovations in Ukraine, including: imperfection of institutions, in particular the political, regulatory and business environment; poorly developed infrastructure, including innovative ones, as indicators of gross capital accumulation as a percentage of gross domestic product, indicators of environmental sustainability, accessibility and quality of e-government remain at a low level. According to statistical data [21], in Ukraine, the value of the indicator of gross capital accumulation as a percentage of gross domestic product for the period from 2016 to 2021 actually decreased by 9.29%: from 21.72% in 2016 to 12.43% - in 2021. At that time, according to the Report on the Development of Electronic Government in 2022 [22],

Among the main obstacles implementation of an effective innovation policy in Ukraine can be highlighted [1-17; 23; 24]: instability of the political and operational sphere; imperfect regulatory framework in the sphere of innovation stimulation and support; ineffective institutional support of innovative activity in government bodies; insufficiently effective HR policy to reduce staff resistance to innovations in government bodies; insufficient level of motivation of the personnel of the authorities regarding the acquisition and application of new competencies (e.g. digital competences). So, we can note some improvements (reduction of barriers) for the development of innovations in Ukraine, but for the full implementation of public management in conditions of digitization org authorities require the use of an integrated approach regarding the provision of effective innovative activity, which will allow not only to increase the performance of the system public management in general, but achieve high development of the national economy.

Today, Ukrainian realities show the need to improve certain aspects of ensuring effective innovative activities of government bodies in the country, which will allow improve system performance public management and administration in terms martial law, among which it is appropriate to single out the following: ensuring the effective implementation of mechanisms of public-private partnership, development of scientific and innovative cooperation of the state and non-state sectors of science, higher education institutions with the real sector of the economy on the basis of harmonization of regulatory and legal support in the country; implementation of an innovative personnel policy by the authorities aimed at strengthening professional orientation (compulsory training digital competencies) and activation of the work of potential innovators; creation of innovation activity offices within government bodies to strengthen institutional support for innovation activity in government bodies; introduction of innovative culture in government bodies to achieve openness and readiness of personnel for innovations; the use of the mechanism of e-governance in government bodies and modern information and communication technologies during the implementation of their innovative activities; introduction of project management methodology to increase the financial capacity of authorities.

Based on the above and taking into account relevant scientific developments [3; 23; 24], it should be noted that in order to increase the quality and effectiveness of innovative activity in authorities needs proper support (regulatory, institutional, personnel, motivational, scientific-methodical, financial, informational and communication). This can be achieved by:

1) harmonization of regulatory and legal support in the country on the basis of ensuring effective implementation of mechanisms of public-private partnership, development of scientific and innovative cooperation of the state and non-state sectors of science, institutions of higher education, scientific institutions with the real sector of the economy;

2) improvement of institutional support for innovative activities in public authorities based on the creation of virtual effective divisions in their organizational management structures, in particular, offices of innovative activity [supplemented on the basis of [23]];

3) implementation of a full-fledged innovative personnel policy in the authorities, which will be aimed not only at strengthening the professional orientation and intensifying the work of potential innovators, but also at creating a motivational environment for the activation of the implementation of innovations, which directly depends on the socio-economic development of the national economy, and as well as the competitiveness of the country as a whole;

4) increasing the motivation of innovators in the authorities, which will allow to achieve significant social and economic effects during the implementation of the state economic policy in Ukraine. In addition to the sphere of motivation for the creative activity of public officials of authorities, innovative changes should also touch on the benchmarks and indicators of the performance of duties by public officials and managers, issues of corporate culture with the formation of a new ethics of public service;

5) strengthening of scientific and methodological support for innovative activities in public authorities based on the introduction of innovative culture in authorities to achieve openness and readiness of personnel for innovations;

6) improvement of information and communication provision of innovative activities in government bodies based on the large-scale introduction of modern information and communication technologies, because e-governance and e-democracy are important public sector reforms management, where the emphasis is on embodiment principles of transparency, openness and public education. This will allow accelerate the transition to a full-fledged "e-government" and increase the level of professional mobility of employees during innovative activities;

7) improvement of financial support of innovative activity in the authorities based on the active implementation of the methodology of the project approach to increasing the financial capacity of government bodies (development and implementation of regional development projects, grant writing, etc.). This, in turn, will help reduce the financial burden on the state budget (reduction in the amount of subsidies to local budgets and budgets of united territorial communities from the state) and will contribute to greater state support for the real sector economy [supplemented based on [24]].

Based on the above, between the process of achieving sustainable development of the national economy and the process of ensuring effective innovative activity of authorities, a connection is defined, which is based on the implementation of effective public management (effective innovative processes in the system of public management ensure the achievement of sustainable development national economy).

At the same time, a separate place is allocated to the process of implementing an innovative personnel policy, which is based on: managing the professional competence of public servants (using a scale for assessing the level of competence of public servants and adjusting this level), assessing the state of readiness of public servants for innovations (choosing certain assessment criteria) and management resistance to innovations in the authorities.

The main goal of the implementation of the specified innovative personnel policy is to form the ability (set of professional competencies) of public servants to act in modern conditions of social development and to be open to the introduction of relevant innovations. All this will allow to create a favorable innovative environment within the authorities that are responsible for the performance of important social, economic and other functions in Ukraine, and, as a result, to more rationally use the available internal and external resources to achieve high development national economy.

national economy legal digitalization public administration

Conclusion

It is proven in the work, which is an important prerequisite for the stable operation of the public management system in the conditions martial law there is provision effective functioning of the authorities in the country, which can be achieved through the implementation of effective innovative activities on the basis of digitization. Therefore, it is innovative activity on the basis of digitization determines the further development of authorities responsible for the performance of important functions (social, economic, etc.) in Ukraine. In this study revealed the importance of increasing the effectiveness of innovative activities in government bodies for implementation of effective economic policy of the state and achievement high development national economy of Ukraine.

Based on the conducted comparative statistics regarding the rating of Ukraine in the innovation sphere among other countries of the world in recent years, it has been found that Ukraine has the potential for innovative development, but there are still significant obstacles for our country to take first place in international indices in the field of innovation. The study identified the main obstacles to effective innovation policy in Ukraine. In this connection, the author's approach is proposed in the work regarding the provision of effective innovative activity in the authorities on the basis of digitization, which unlike the existing one, focuses on improvement regulatory, institutional, personnel, motivational, scientific-methodical, information-communication and financial support innovative activity in authorities. Using the proposed approach will allow achieve sustainable development of the national economy in the country. And secondly, the connection between the process of achieving the development of the national economy and the process of ensuring effective innovative activity by the authorities in the conditions digitization, which is based on the implementation of effective public management (increasing the innovativeness of the public management system will ensure the achievement of sustainable development of the national economy). At work suggested directions of development of the national economy countries that are based on ensuring effective public management of the innovative activities of authorities, and will make it possible to achieve high social development in Ukraine in the condition's digitization:

1) implementation of an innovative personnel policy that will allow for the formation of the necessary professional competences of public servants and will reduce resistance to innovations based on the acceleration of their readiness for these innovations;

2) the use of modern information and communication technologies, which will accelerate the transition to a full-fledged "e-government" and increase the level of professional mobility of employees during innovative activities;

3) introduction of management innovations by authorities, which will increase the capacity of territorial communities and reduce the deficit of local budgets;

4) intensification of the project activity of authorities through the development and implementation of innovative projects with the involvement of funds from international funds, which will make it possible not only to solve urgent problems of the development of the territories of Ukraine, but also to reduce the financial burden on the country's state budget and stimulate state support for the real sector of the economy;

5) strengthening of the institutional support of innovative activity in government bodies based on the creation of an office of innovative activity, which will increase the efficiency of the process of coordination and support of this activity and create a favorable innovative environment in Ukraine.

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22. Сайт "The United Nations E-Government Development Database" / UNE-Government Survey 2022. [Website of the "The United Nations E-Government Development Database" / UN E-Government Survey 2022].

23. Shumska, H.M. (2018) Konceptualjni zasady zdijsnennja innovacijnoji dijaljnosti orghanamy publichnoji vlady jak osnovy socialjno-ekonomichnogho rozvytku Ukrajiny [Conceptual principles of innovation activity of public authorities as a basis of socio-economic development of Ukraine]. Ekonomika ta suspiljstvo - Economy and society, issue 18, 432-442 [in Ukrainian].

24. Shumska, H.M. (2020) Teoretychni aspekty zabezpechennia diievoi innovatsiinoi diialnosti orhanamy publichnoi vlady yak osnovy rozvytku natsionalnoi ekonomiky [Theoretical aspects of ensuring effective innovative activity by public authorities as a basis for national economy development]. Infrastruktura rynku. - Market infrastructure, issue 43, 94-101 [in Ukrainian].

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