PROBLEMS OF LOCAL SELF-GOVERNMENT INSTITUTIONALIZATION IN THE RUSSIAN FEDERATION
Studying world experience shows that the local self-government does not only ensure the democratic basis of the power and government, but also appears to be one of the factors of the national economy transition to the innovative way of development. The illustration is the inclusion of the municipal sector in the law on strategic planning in the Russian Federation. Fastening the local government authority to form long-term priorities of social and economic development, the law enlarges the opportunities of municipalities in conducting independent economic and social policy. At the same time, one significant point, the importance of which is proved by foreign experience, is missing in the given law. This experience shows that the efficiency of the municipal (local) social and economic development programs is mostly occurred due to the involvement of the representatives of business, civil society organizations and population. It seems necessary to ensure alignment of the position of the law, on the one hand, and the existing budget process - on the other one. A lot of has been told about the inter-municipal forms of local self-government. However, today it mostly concerns associative forms of cooperation. A serious factor, restraining potential involvement of this institution, is the fact that in accordance with Russian legislation, inter-municipal associations could not be empowered with local governments' official powers. This prohibition hinders the effective institutionalization of local self-government.