BETTER LOCATED MUNICIPALITIES: COMPARING FRONTIER COMMUNITIES IN BRAZIL AND UKRAINE

Abstract

The objective of the present paper is twofold: firstly, to reveal the differences between the economic status of frontier and non-frontier communities; and secondly, to verify the assumption that border municipalities and provinces do have more opportunities and capacities for local development compared to remote and isolated areas. The related tasks are to study frontier communities considering their economic and social status, to compare key items of the budgets, and to differentiate the communities. Methodology. The study has drawn upon a sample of municipalities and provinces in Paraná state, Brazil, and communities (hromadas) in Lviv Oblast, Ukraine. A comprehensive comparison has been undertaken of key financial indicators of municipal budgets and local economies, including revenues, expenditures, funds, subsidies, transfers, taxes, and GDP per capita. The calculation of correlation coefficients was undertaken to facilitate the comparison of values for the border and non-border units. The study has also drawn upon a comprehensive database, which includes detailed profiles of the communities, municipalities and provinces included in the study. Results. The study revealed that border communities typically have superior economic status and greater opportunities for local development compared to non-border communities. This finding is subsequently corroborated by a comparison of key financial indicators on local budgets, GDP and taxes. In the Brazilian context, the frontier communities demonstrate higher GDP, revenues, and local budgets in comparison to the sample mean. In the Ukrainian context, the findings indicate that transit frontier communities exhibit higher levels of revenue, capital expenditure, and subsidisation in comparison to isolated frontier communities. Concurrently, in both instances, the disclosed relations are not sufficiently stringent, and certain remote and non-frontier communities exhibit superior economic status. While the geographical proximity of a community to its bordering location does contribute to its financial capacity, this influence is minimal. Practical implications. The development strategy for a community varies significantly depending on its economic status, financial capacities, and spatial location. The research results identify the key adjustments to the development strategy, thereby facilitating the formulation of local policy. While the study validates that frontier communities (hromadas) possess superior economic resources and capabilities, it does not elucidate the underlying motivations and interrelationships between community localisation and economic efficiency. The necessity to ascertain the dependency in question is best fulfilled by conducting in-depth interviews with representatives of local authorities and public administration personnel. Value / Originality. The research conclusion regarding the correlation between economic efficiency and financial capacity of frontier communities has been substantiated through comprehensive comparisons and an inter-cultural approach.