SUMMARY
This article presents the status and the main objectives of the decentralisation process and local self-government development in Ukraine. Decentralisation is analyzed as an integrated part of wider public administration reform. A well-functioning public administration is necessary for democratic governance. It also directly impacts upon governments’ ability to provide public (administrative and municipal) services and to foster competitiveness and growth. Public administration reform should lead to enhanced transparency, accountability and effectiveness and ensure a greater focus on the needs of citizens and business. On the basis the analysis of the Ukrainian legislation, the best national and international practices, the proposals and the recommendations concerning possible ways of further local self-government development, in particular in the framework of the European integration policy implementation, are highlighted.