Building the capacity of territorial communities by revealing their latent potential

Decentralization is a common component of public finance development and reform strategies through efficiency, better governance accountability. It has become particularly important for the local governments to recognize test policies practices that promote building capacity communities by revealing their latent potential. The aim article was identify describe current state decentralization process in Ukraine EU, problems achievements communities. Observation comparison were leading methodological tools. research found effective territorial requires further implementation relevant regional strategic planning European Union. appropriateness prospects LEADER/CLLD approach form cooperation partnership between urban rural areas established. Fiscal as basic factor on way improving level determined comparative analysis factors positive dynamics EU Ukraine. A practice countries projects context potential promising vector research.