Russia’s war against Ukraine has intensified asymmetries in the socio-economic development of territories, thereby precipitating a radical transformation of the financial foundations underpinning the functioning of Ukraine’s municipalities. This context necessitates the development of differentiated approaches to strengthening municipalities' financial resilience during both wartime and post-war periods. The purpose of this article is to assess the financial resilience of Ukrainian municipalities under conditions of war. The study employs the following research methods: a system-structural approach (to construct an information-analytical model of financial resilience), an integral assessment method (to develop an empirical indicator of municipal financial resilience), and a multiplicative approach (to construct a composite indicator of financial resilience). The information-analytical basis of the study comprises data from all municipalities of Ukraine, classified into four groups, for the period 2021–2025. The findings indicate a weakening in the financial resilience of Ukraine’s municipalities during the full-scale invasion. In rear regions, the dynamics are heterogeneous: municipalities in Lviv Oblast maintained relatively high values, whereas those in Volyn Oblast deteriorated to 0.164 in 2025. Two distinct models of revenue autonomy are clearly observable: (1) a model of regional polarization (in 2023, frontline and occupied municipalities declined to critical levels–Kherson, Luhansk, and Zaporizhzhia Oblasts–while municipalities in Dnipropetrovsk (0.757), Kyiv (0.628), and Poltava (0.558) Oblasts preserved or strengthened their financial resilience potential); and (2) an adaptive model (by 2025, Kyiv (0.771), Poltava (0.760), and Dnipropetrovsk (0.754) Oblasts approached the optimal threshold (0.75), while Lviv (0.654), Cherkasy (0.601), and Kirovohrad (0.594) Oblasts entered the zone of permissible autonomy; municipalities in Luhansk Oblast continue to record zero values). Expenditure autonomy across municipalities in all regions of Ukraine systematically deteriorated throughout the entire period under study. The empirical evidence demonstrates that municipal financial resilience is characterized by internal structural disproportionality. Pronounced fiscal gaps persist, while investment activity remains selective.

The article examines the role and potential of green financing in the post-war reconstruction of Ukrainian communities in the current context. The relevance of the topic is determined by the need to combine rapid infrastructure restoration with long-term goals of sustainable development, decarbonization of the economy, and improvement of financial stability of communities in accordance with the principles of the European Green Deal. Green financing instruments available to local authorities are systematized, divided into non-repayable, repayable, and partnership instruments, and analytically assessed in terms of accessibility, impact on financial stability, and potential for scaling up in wartime and post-war periods. Particular attention is paid to the analysis of energy service contracts (ESCOs) and green bonds as instruments that differ significantly in terms of their application logic, level of institutional requirements, and long-term effect on community development. It is argued that ESCOs are the mostpractical and accessible tool for implementing energy efficiency measures in conditions of limited financial capacity of communities, while their application in Ukraine is characterized by fragmentation and limited strategic planning compared to practicesin EU countries. It has been established that green bonds have significant potential as a tool for financing capital-intensive infrastructure projects in the long term, but their use at the municipal level is hampered by institutional, financial, and regulatory barriers. It has been proven that green financing instruments are not interchangeable, but should be considered as complementary elements of the public investment management system of local communities. The practical significance of the study lies in the formation of scientifically sound approaches to a phased transition from a reactive model of local development financing to a proactive model focused on improving the financial sustainability of communities, achieving climate goals, and ensuring the sustainable socio-economic recovery of Ukraine in the post-war period

Introduction. The Russian-Ukrainian war has provoked unprecedented consequences for the economic development of both Ukraine and its territorial communities. The war in Ukraine has triggered an unprecedented economic, social and humanitarian crisis, which in turn has increased financial instability and reduced the resilience of socio-economic systems at various levels. The purpose of the article is to identify the current problems of violation of the budgetary sustainability of territorial communities and to substantiate the tools for its strengthening in the face of excessive uncertainty. Results. The article discusses the problems of ensuring the budgetary sustainability of territorial communities of Ukraine in the context of a war economy and excessive uncertainty. The author identifies the following: changes in the structure of local budget revenues caused by a decrease in revenues from key taxes and the withdrawal of military personal income tax, which led to financial imbalances and aggravation of socio-economic problems; a decrease in the growth rate of local budget revenues; increased transfer dependence of local budgets on the State budget and a reduction in capital expenditures of local budgets. Given the limited possibilities of forming financial resources of territorial communities in modern conditions, the article emphasizes the importance of the budgetary component of forming the financial potential of communities in conditions of instability. The author proposes the following ways to strengthen the budgetary sustainability of territorial communities: changing the mechanism of horizontal equalization of the tax capacity of local budgets; improving the mechanism of administration of local taxes and fees and strengthening control over their revenues; improving the efficiency of use of assets managed by communities; delimitation of powers between executive authorities and local self-government bodies on the principle of subsidiarity. The author emphasizes the need to return to the principles of fiscal balance and to restore the revenue autonomy of local self-government, as without this, communities will not be able to restore and rebuild their territories.

The article provides a problem-oriented analysis of the functioning and development of territorial communities in Ukraine in wartime, focusing on four types of communities (communities in frontline regions; communities that have suffered destruction and partial occupation and where Ukraine has regained control; communities in support regions; communities in rear regions). Taking into account territorial differentiation based on security factors, new challenges and threats to Ukraine's territorial communities have been identified. It is argued that during the period of Russia's full-scale invasion of Ukraine, the demographic, socio-economic, and public finance management crises have significantly intensified. It has been established that different types of communities show different characteristics of the crisis. For example, in terms of the demographic crisis: frontline communities, being the areas with the highest level of risk to the life and health of the population, are the centres of the highest concentration of IDPs; in communities where control has been restored, we are seeing the return of residents and repeated displacement; in communities in support regions, a specific demographic situation has developed, associated with a sharp increase in the burden on social infrastructure and the labor market; in communities in rear regions, we are seeing a redistribution of labor and educational resources, increased pressure on health care and social services systems, and a transformation of local housing and labor markets. It has been shown that the war has had an uneven impact on economic activity in communities. The need to introduce adaptive, differentiated policies for the restoration and development of territorial communities for different types of communities currently operating in Ukraine was emphasized

The range of problems covered in the monograph is related to the coverage of current trends in the development of the financial system at the micro, meso, and macro levels in the context of unprecedented challenges and threats of the newest state-building stage. The conclusions and recommendations are of significant theoretical importance. They can be used to develop financial policy priorities at all levels of public administration, in the corporate sector and at the household level, and in conducting various forms of research.

The purpose of the article is to study the factors that determine the financial behavior of households in the region in conditions of economic and social instability, as well as to develop recommendations for managing financial resources in conditions of unpredictability and instability. The article aims to highlight the main influencing factors that determine decisions regarding the management of financial resources, in particular, the formation of the level of savings, investment, and consumption. This article examines the main factors shaping the financial behavior of households in the region in the face of modern challenges. Models of the financial behavior of households are formed and the key factors influencing their spending, savings, and financial management are identified. The influence of modern economic and social challenges on consumer behavior is analyzed. The impact of the COVID-19 pandemic on financial behavior is analyzed and financial management strategies in conditions of economic uncertainty are identified. The importance of the response of households to economic instability is emphasized and the main trends in changes in spending and consumer strategies are described. The impact of changes in the population’s income on consumption is analyzed in detail, and practical recommendations for managing finances in the face of modern challenges are formulated. The importance of responding to economic and social changes for the formation of stable financial strategies is indicated. Prospects for further research in the field of financial behavior and the need to improve financial management methods are highlighted. As a result of the research, conclusions are made regarding the key factors of the financial behavior of the population in the conditions of modern challenges, and the importance of understanding and analyzing the financial behavior of households in the modern economic environment is emphasized. The article argues that improving financial management strategies can contribute to more stable economic development and reduce risks for the population in conditions of instability.

The ongoing crises caused by external factors (the Covid-19 pandemic and, since February 2022, Russia’s large-scale invasion of Ukraine) have increased economic instability, exacerbated problems in the system of state and local finance, which, in turn, has negatively affected the financial stability of the regions and, consequently, their economic growth opportunities. Therefore, there is a need to develop new approaches to the formation of state regional policy with a clear set of mechanisms and measures for each type of territory. The purpose of the article is to analyse and evaluate financial changes in the regions of Ukraine in the context of instability and to outline the directions of their further development. The article assesses financial changes in the regions of Ukraine in the context of the intensification of crisis phenomena (pandemic and Russia’s large-scale invasion of Ukraine). The following trends have been identified: a decrease in the share of local budget revenues in consolidated budget revenues; a decrease in the growth rate of local budget revenues in regions where intense hostilities are taking place; a change in the structure of local budget revenues, and hence a decrease in revenues from certain traditional budget-forming taxes; a noticeable increase in expenditures by sector. It is shown that the war in Ukraine has increased the unevenness of the formation of the tax capacity of administrative-territorial units, and the expenditure component of local budgets is characterised by a significant reduction in development expenditures. The author emphasises the need to improve the mechanisms of budgetary equalisation of territories. It is argued that the main vector of the policy of ensuring the financial sustainability of the regions of Ukraine should be balancing the needs of using external financial resources to restore stable growth rates and reduce the external financial dependence of the economic system in the face of macroeconomic shocks.

The article presents an econometric analysis of the impact and elasticity of human resources outflow and remittance with economic growth in Ukraine. It is proved that remittance (1) has a direct relationship with economic activity rate, (2) a cyclical and multiplicative relationship with the inflationary process, and (3) an indirect effect on capital investment. It has been established that migration favorably affects the financial well-being of households and is an effective measure for accumulating investment capital and savings. The trigger for economic growth in the vector of ‘migration – remittance’ is the development of the migration capital market by increasing the investment capacity of remittance’, ensuring the target remittance orientation to the small and medium-sized business sector, guaranteeing market stability (security of remittance) and developing financial inclusion.

The article updates the issues of ensuring financial security and stability of the entities of the small business sector in Ukraine in the conditions of critically acute instability caused by the consequences of the ongoing full-scale war. The purpose of the study is to substantiate the priorities and tools for strengthening the financial security of the small business sector of Ukraine in conditions of instability. The goal of the State policy of strengthening the financial security of the small business sector of Ukraine in the conditions of wartime and instability should be the systematic improvement of the business environment of entrepreneurial activity in the context of minimizing financial challenges and threats, improving the financial and resource provision and the financial and economic condition of small business entities, ensuring the development and capitalization of this sector of the economy. New challenges and threats to the financial security of small business entities of Ukraine in the conditions of wartime have been identified, namely, a decrease in the solvent demand of the population, a narrowing of the capacity of domestic demand for consumer goods and services and a reduction in income, an increase in the cost of resources, an increase in the cost price and a decrease in the level of economic profitability, difficulties with logistics and transportation of goods, etc. It has been proven that the achievement of this goal will be facilitated by the implementation of a system of strategic priorities, namely: improving the financial and credit support of small businesses; formation of a system of investment support for development projects of small business entities; expansion of monetary and lending opportunities; de-shadowing of the capital of small business entities and restructuring of their debt obligations; small business effectivization through the growth of the sector of innovative and technologically active entrepreneurship; implementing the potential of the insurance sector in mitigating the financial risks of small business entities.

Russia’s war against Ukraine has exacerbated challenges and risks to community development. Improving the ability to withstand the shocks of the external and internal environment, adapt to changes in the security environment, respond to threats, maintain sustainable functioning, and recover to the desired equilibrium will contribute to strengthening the resilience of communities. Budgetary instruments are crucial for ensuring the resilience of communities in such conditions. This study aims to identify the impact of budgetary instruments on ensuring the resilience of territorial communities amid the war in Ukraine (the case of Lviv oblast). The methods include a systemic and structural approach (building an information and analytical model of resilience research) and indicative and GAP analysis (identifying the impact of budgetary instruments on community resilience, in particular, local taxes, transfers, and personal income tax (PIT)). The data of 73 communities in Lviv oblast for 2021–2023 were collected. The study shows that the resilience of the territorial communities of Lviv oblast during the study period was at a moderate and above-moderate level; most were in the zones of resistance (resilience indicators ranging from 0.43-0.65) and decreasing resilience (0.42-0.20); the resilience of 8% was at a critically low level (2022–2023). The results estimate that the resilience of 90% communities in 2024 will not change significantly if military PIT is redirected from local to state budgets, except for those communities whose resilience is highly dependent on the amount of military PIT (the decrease in resilience will range from 12.5 to 4.2 percentage points).

Internal migration caused by the war of russia against Ukraine (with the active phase starting in February 2022) has increased the socio-economic burden on the host communities welcoming internally displaced population from the frontline and occupied territories. On the other hand, it intensifies behavioral reflections of local residents on the integration of internally displaced persons (IDPs). The study aims to identify opportunities, challenges, and prospects for IDPs’ adaptation in host communities (a case study of Lviv oblast, Ukraine). The paper conducted a sociological survey among 2,500 respondents in November 2022–February 2023. The results show that the lack of housing, lack of permanent employment, language contradictions, and forced limited contact with relatives who remain in the combat zone are existential barriers to the integration of IDPs into host communities. The study identified such opportunities for the integration of IDPs into the host society: reducing the risk of depopulation of territories, reducing imbalances in the local labor market in certain sectors of the economy, strengthening social cohesion, developing small businesses, and improving social infrastructure. The respective challenges include increased social tension, competition for jobs and housing, shortage of places in preschool institutions, and disproportionate distribution of budget funds between the local population and IDPs. Conflicts between IDPs and local residents, as well as IDPs and local authorities, require a proactive position of local authorities to initiate psychological support programs and create communication platforms for the exchange of individual experiences and discussion of psychological and emotional issues.

Introduction. The war in Ukraine has led to a change in behavioral patterns of economic agents (population, business entities, civil society organizations, governing bodies), which can be observed in the mobilization of economic agents to accumulate material and human resources in the process of countering the enemy. In this context, there is a need to apply the scientific foundations of behavioral economics to the peculiarities of the conflict and the adaptation of people's behavior to these extreme conditions, as well as their resilience in such circumstances. The purpose of the article is to identify and justify the changes in behavioral patterns of economic agents in the conditions of war in Ukraine. Methods. The research utilizes dialectical analysis, synthesis, logical generalization, as well as comparison and formalization methods. Results. The model of public behavior in times of war is examined through the theoretical principles of behavioral economics, namely the economics of violent conflicts, which is grounded on the monopoly of state violence, the compromise between utility maximization and physical security in decision-making, and changes in the system of individual preferences. The analysis reveals certain similarities in the behavioral reactions of economic agents in times of war and in times of pandemic, which has ensured a certain level of readiness of the public administration system, business, and civil society to the challenges and threats of war. The following changes in economic behavior are emphasized and thoroughly examined: the change in the level of civil society activity and the role of altruism in the economic progress of the state, changes in consumer behavior, and new trends in employment and education.

The article reveals the theoretical and methodological foundations of the financial policy of development of territorial communities. The author's approach to understanding the essence of this concept is substantiated. It is proved that this concept is an integrated, comprehensive type of policy which generalizes several areas and is revealed by a logical combination of the following components: a) taking into account the interests of local financial policy actors and their role in ensuring economic growth of territorial communities; b) determining the directions of formation and efficient use of financial resources; c) implementation of measures aimed at achieving the strategic goals of local economic development. The principles, functions and tools for implementing such a policy are specified. The strategic and tactical goals of the financial policy of community development are defined. It is argued that the financial policy of ensuring the economic growth of territorial communities in conditions of instability should be adaptive, sustainable and focused on achieving the goals of local economic development, supporting the population, business and critical infrastructure. The measures for implementing financial policy in the context of its structural components (budget, tax, investment) are specified. The study emphasizes that, given the security challenge, financial policy for different types of communities cannot be unified and should take into account: the geographical location of the community, flexibility in the distribution of public funds, cost optimization, support for critical facilities for the livelihood of residents, interaction with international partners, etc.

The financial self-sufficiency of communities determines their ability to create additional jobs, attract investment resources, offer quality social services, and improve the population’s living standards and well-being. The study aims to identify the casual relationships between financial self-sufficiency and local economic development of Ukrainian territorial communities during economic instability. The paper used integrated assessment based on a spatial approach (identifying the level of local economic development), indicative method (calculating empirical values of financial self-sufficiency of communities), VEC model (analyzing the sensitivity of local economic development to changes in financial self-sufficiency), balanced multi-component regression method (modeling the relationship between local economic development and financial self-sufficiency). Data were gathered on all territorial communities of Ukraine in 2021. The results show that the highest level of local economic development was observed in Dnipropetrovsk oblast (empirical coefficient equal to 0.855), high levels in Kharkiv, Zaporizhzhia, Odesa, Kyiv, and Poltava oblasts (0.787; 0.687; 0.684; 0.663 each, respectively), and moderate levels in Zakarpattia (0.448) and Kirovohrad (0.433) oblasts. With increased financial self-sufficiency, local economic development can exceed 2%; a 1% increase in the decentralization of tax revenues and expenditures simultaneously leads to an increase in the attractiveness of the investment climate as an indicator of local economic development (2.3-6.6%). The study proves that the territorial communities of the regions characterized by a low level of local economic development demonstrated higher values of decentralization of interbudgetary revenues than those with higher values of local economic development.

The war, along with the need to strengthen the resilience of communities and support the affected population, has actualized the problem of protecting the rights and guarantees of internally displaced persons and fulfilling the proper obligations of the state in the conditions of intensified hostilities in Ukraine. Therefore, the gaps in the current legislation regarding the support of IDPs’ integration into life in new communities should be analyzed and identified. The article aims to analyze the institutional foundations of the protection of the rights and guarantees of internally displaced persons and to identify the legislative “gaps” in support of the integration of internally displaced persons into new communities in the conditions of war in Ukraine. The institutional principles of protecting the rights and guarantees of internally displaced persons are analyzed. Legislative conflicts/gaps, which slow down the pace of adaptation, and thus the integration of displaced persons into the life of host communities, are identified. The study reveals that the procedure for registration/re-registration of internally displaced persons is not fully standardized; the mechanisms for obtaining financial assistance are imperfect; there is a shortage of affordable housing; it is difficult to ensure unhindered access to medical services; there are problems with the employment of internally displaced persons due to the lack of vacancies and the mismatch of their qualifications with the requirements of the labor market. The Strategy for the Integration of Internally Displaced Persons until 2024 and the plan for its implementation are analyzed. Benefits and risks are emphasized. The article argues that information activities and popularization of entrepreneurship among IDPs by conducting various educational trainings will contribute to the birth of an idea and own businesses, but financing, introduction of benefits and incentives, or material support are more effective factors in the integration of IDPs by increasing their employment. The timely introduction of a tool for monitoring the problems and needs of internally displaced persons was emphasized, given the need to improve the integration of residents into host communities.

Financial resilience is the basis of economic development as it determines the ability of the financial system to efficiently perform its functions and ensure optimal resource allocation and the normal course of economic processes under the impact of macroeconomic shocks and endogenous risks. The article aims to assess financial resilience as a systemic component of ensuring the economic development of Ukrainian regions. The research methods include systemic and structural analysis (building an information and analytical model for studying financial resilience), clustering (grouping regions by the criterion of economic development), and risk theory and analysis of variance (identifying potential zones of financial resilience and its components). Data from the regions (oblasts) of Ukraine for 2015–2021 serve as the information and analytical basis of the study. The article reveals that in 2021 regions with better financial resilience (Zhytomyrska, Dnipropetrovska, Kyivska, Lvivska, Odeska, Kharkivska, Cherkaska, and Volynska oblasts) take leading positions in terms of economic development and more efficient use of exogenous and endogenous financial resources than the regions with low financial resilience (Chernivetska, Vinnytska, Khmelnytska, Donetska, Ternopilska, and Ivano-Frankivska oblasts). The study proves that enhancing financial resilience is a trigger and foundation for ensuring economic growth in the regions, especially amid macroeconomic shocks. Balancing the need to use financial resources to restore the economy (growth of production, consumption, and employment) while reducing the dependence of regional economies on external financial sources should become the main vector of policy to ensure the financial resilience of Ukrainian regions. AcknowledgmentsThe study was conducted within the framework of the “Financial Determinants of Ensuring Economic Growth of Regions and Territorial Communities based on Behavioral Economics” project (No. 2020.02/0215) funded by the National Research Foundation of Ukraine (Competition “Support for Research of Leading and Young Scientists”).

Insecurity, chaotic extensive internal movement, and external migration, growing social vulnerability, and decreasing economic stability of internally displaced persons, characterize the migration crisis caused by the large-scale Russian war against Ukraine. The aim of this paper is to reveal the needs (tangible and intangible), challenges, and opportunities for the social integration of internally displaced persons in the host communities (on the example of the Pidberiztsivska territorial community of Lviv oblast). The paper presents the sociological survey through in-depth interviews based on questionnaires. The sample is based on five strata (four starostyn areas and the administrative center) and amounts to 4% of the statistical population (50 displaced persons). The paper specifies that the host society’s lack of affordable housing (68.6% of respondents) and limited employment opportunities (39.9% of respondents) are the main challenges for internally displaced persons. The survey reveals a low level of integration of internally displaced persons and a lack of desire to assimilate into the host society caused by positive aspirations to emigrate abroad (13.5% of respondents) and intentions to return to their previous (permanent) place of residence (54% of respondents). Mapping the problems and needs of internally displaced persons can constitute the information-analytical basis for ensuring the communities’ economic progress in times of war in terms of accumulation and efficient use of the capacity of internally displaced persons. AcknowledgmentThe study is conducted within the framework of the grant “Instruments for the support of integration of IDPs into life in the Pidberiztsivska territorial community: A pilot project in Lviv oblast” funded by the International Renaissance Foundation (Grant registration number 54766, 2022–2023).

The article defines the essence of "crisis" and substantiates the reasons for its occurrence. The types of crises are defined and characterized. Particular attention is paid to financial and economic crises. The peculiarities of the manifestation of crisesfor local economic development are identified. Considerable attention is paid to the crisis aspects caused by the pandemic and the war in Ukraine. The consequences of the crisis for local economic development are determined. It is emphasized that over the past fifteen years, Ukraine has experienced several crisis periods in a row. Russia's large-scale invasion of Ukraine has increased economic instability and exacerbated problems in the system of state and local finance. Russia's war against Ukraine has significantly undermined the progress of communities, exacerbated the problems of multi-level governance, and increased territorial asymmetries. It is argued that dynamic changes in all spheres of life of territorial communitiesrequire immediate strategic and tactical decisions. In this sense, improving budgetary policy instruments will allow local governments to be financially capable of fulfilling their own and delegated powers and ensuring their own progress. It has been proved that the following are appropriate in this sense: changing the mechanism of horizontal equalization of the tax capacity of local budgets; reviewing the mechanisms of property tax administration; creating incentives for economic recovery through, for example, lowering loan rates, which will allow the economy to be flooded with "cheap" money. Mitigating financial instability cannot be achieved through budgetary or fiscal policy measures or instruments alone, but requires coordination and coherenc

Stable economic progress and upward dynamics of economic growth in the regions depend on their level of security and ability to withstand adverse macroeconomic and other shocks, as well as the state of affairs in which risks cannot be transformed into threats and dangers. The study aims to assess the causal nexus and the level of sensitivity of regional economic growth components to changes in financial resilience determinants. The research methods include systemic and structural analyses (building an information and analytical model for studying financial resilience), Granger test (identifying causal relationships between the variables under study), risk theory (studying the nature of fluctuations), and spatial and temporal approach. Data from the regions (oblasts) of Ukraine between 2015 and 2021 form the informational and analytical basis of the study. The paper reveals that the targeted use of transfers for socio-economic progress, increasing investment capacity, and bolstering financial and budgetary autonomy through increasing local budget revenues are the dominant financial determinants of regional economic growth. The results show that the most dominant causal nexus exists between (1) budgetary efficiency, interest rates on consumer/mortgage loans, and SME development, (2) the volume of loans/deposits and labor market efficiency and SME development, and (3) innovation development and foreign economic cooperation. Intensification of investment activity is crucial for ensuring real changes in the economic structure of all regions, particularly outsiders, accelerating transformation processes, mitigating regional economic divergence, and increasing competitiveness. AcknowledgmentsThe study was conducted within the framework of the “Financial Determinants of Ensuring Economic Growth of Regions and Territorial Communities based on Behavioral Economics” project (№ 2020.02/0215) funded by the National Research Foundation of Ukraine (Competition “Support for Research of Leading and Young Scientists”).

The aggravation of the migration crisis in the country against the background of socio-economic instability in conditions of war has triggered the deterioration of the institutional and economic capacity of local governments to ensure further integration of internally displaced persons in the host society. The article aims to identify the resource and economic capacity of local governments in conditions of war to ensure the needs and adaptation of internally displaced persons to new living conditions (using the example of Pidberiztsivska Territorial Community of Lvivska Oblast). The research is based on a questionnaire survey in the form of in-depth interviews with the representatives of local governments. The sample consists of 20 persons; strata are formed in accordance with the staff units of local governments (head of the village council; representatives of the community’s administrative center and starostyn districts; heads of structural units of the village council). The paper emphasizes that local governments face a great challenge in ensuring the adaptation of internally displaced persons in the community, mainly related to the lack of free housing (according to 76.2% of respondents) and the labor surplus in the local market (over 20%). The results show that the majority of internally displaced persons see the community only as a place of “waiting” and seek to return to the former residence place (68.4% of the interviewed representatives of local government), so they shouldn’t be deemed as a potential community asset. Proactive tools for increasing the resource and economic capacity of local governments to ensure further integration of internally displaced persons include interaction with regional authorities, efficient use of the capacity of relocated businesses, cooperation with charitable foundations and NGOs to solve housing problems and create additional high-wage jobs.