Theoretical principles of determining the financial resilience of territorial communities of Ukraine

Abstract

The topic of financial resilience of territorial communities has gained significant relevance in the context of full-scale war, which has substantially affected public finances in Ukraine. The decentralization process granted new financial autonomy and decision-making possibilities to local powers. However, ongoing military actions have led to decreasing of financial flows, destruction of infrastructure and population displacement, which negatively influenced the financial sustainability of communities. This article aims to explore theoretical approaches to defining financial resilience of territorial communities, analyzing its key determinants and formulating an author's approach. The research identifies that financial resilience is a multidimensional concept incorporating self-financing capacity, effective resource management, debt burden control and adaptability to economic shocks. Additionally, resilience extends beyond financial stability to include proactive risk mitigation strategies that enhance the long-term sustainability of local powers. The morphological and functional analysis of the term "financial resilience" reveals its critical role in ensuring balanced economic and social development, particularly in crisis conditions. Key determinants influencing financial resilience include resource potential, financial inclusion, financial literacy, social capital, and strategic budget planning. Empirical observations suggest that communities with diversified income sources, sound financial planning, and efficient financial control mechanisms demonstrate higher levels of resilience. Moreover, interactions with external support systems, including governmental assistance and international funding, play an important role in maintaining financial stability. The study emphasizes that financial resilience is not solely dependent on internal financial management but also on broader socio-economic factors and governance efficiency. In the context of post-war recovery, financial resilience will serve as a foundation for rebuilding and strengthening local economies. Future research should focus on refining financial resilience assessment models and developing targeted policies to support communities in navigating economic uncertainties and structural changes.