Transformation of Forestry Management System Based on Decentralization and Authority Separation Principles

In this paper, based on the study of positive experiences of neighbouring post-socialist European countries, a new approach to the transformation of the system of forest management on the principles of decentralization and separation of powers is offered. The main stages of reforming the existing management and development of advanced forms of integration entities are defined. It is proved that the privatization of forestry processing base will raise additional revenues to the state budget and avoid conflicts of interest with woodworking companies. Corporatisation of state forestry enterprises and the creation of an extensive on a regional basis SAC "Forests of Ukraine" will be left in the sectoral structure of corporate business functions only. It is proposed to establish within the State Ecological Inspectorate the specialized unit - the forest inspection - and give it the features that today takes the state forest protection that will concentrate control functions in an independent national regulatory authorities, which would be subordinated to another ministry - the Ministry of Ecology and Natural Resources of Ukraine. It is provided the establishment within the structure of the Ministry of Agrarian Policy of Ukraine the specialized departments of forestry and hunting, which serve as public sector management to facilitate budgetary savings for state apparatus at the national and regional levels. The advantages of creation of regionally integrated structures (forest holdings, clusters and technology parks) that will optimize forest resource, technical, financial, information and labour resources for the successful implementation of innovation projects, taking into account the interests of local communities.