Abstract

The article provides a study of the financial provision of local communities to respond the COVID-19. The main purpose of the research is to analyze the role of alternative sources of funding for local communities in strengthening their financial capacity and supporting the health care system during the pandemic. The analysis was carried out on the basis of a study of world trends, a comparative analysis of the financial support of Eastern and Western European countries at the expense of international organizations and government institutions; as well as the study of contributions of charitable funds, public organizations and corporate entities in supporting the health care system (the case of Ukraine). The research empirically confirms and theoretically proves that the pandemic had long-lasting effects on the global economy and created a demand for financial support from citizens and businesses, local and central governments. In order to cover the expenses related to the provision of health care in the conditions of the pandemic, as well as aimed at minimizing the consequences of COVID-19 for the economy and society, various sources of funding were involved, which included funds from the state and local budgets, as well as external funding, such as financial activities, programs and grants of international organizations and other donors, charitable contributions from foundations and corporations. The study proved the existence of inter-country and inter-regional differences in the structure of sources of financing, as well as in the focus areas of funding. The analysis of funding activities of major international organizations, unions and government structures, such as the World Bank, the International Monetary Fund, the European Investment Bank, the European Union, the United States Agency for International Development and others, for the period 2020-2021 confirmed that most of the funding initiatives have an economic orientation, but only some of them are directly aimed at financial support of local communities. On the other hand, alternative sources of funding, such as funds from charitable foundations and donations from the corporate sector, were directly aimed at supporting medical institutions and patients in local communities. That makes them important both for the economy and for saving lives, despite of the lower values of funding compared to international or state programs. The results of the research can be useful for scientists, state and local self-government bodies in managing the financial capacity of local communities and their resilience to health threats.

Keywords: charitable contributions, covid-19, covid fund, international funding, local community, medical provision, pandemic.

JEL Classification: H51, H75, I18, D64.

Cite as: Pakhnenko, O., Brychko, M., and Shalda, A. (2022). Financial Support of Communities During the Covid-19 Pandemic. Financial Markets, Institutions and Risks, 6(3), 83-92. https://doi.org/10.21272/fmir.6(3).83-92.2022

This work is licensed under a Creative Commons Attribution 4.0 International License

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