Role of local self-administration in organization of local economy

The article researches the issues of studying the role of local self-administration in the organization of local economy taking into account the forms of management influence to satisfy the needs of administrative and territorial unit. On the base of previous scientific reseach generalization about the definition of local economy the article has summarized all the definitions. It has defined the structure of local economy which includes enterprises, organizations, and establishments of municipal property as well as enterprises, organizations, and establishments of not municipal property which activity is connected mostly with population servicing and can be included into local economies if an owner agrees; and the units established as a result of labour participation of citizens or bought at the expenses of their obtional contributions included into local economies if population and local authorities agree. The article considers normative regulation of local self-administration in Ukraine concerning the elements of its system as the entities which are given the authority to solve social, economic, management and industrial tasks of an administrative and territorial unit. The author views the practice of management by the units of municipal property of territorial societies. To satisfy the needs of society to the fullest the paper grounds the necessity to use the various forms of management influence by local authorities.