Abstract
The article comprehensively examines the institutional capacity of decentralized communities as a decisive factor in ensuring effective socio-economic rehabilitation in post-war Ukraine. Particular attention is paid to the interrelation between local adaptation mechanisms and global challenges that communities inevitably face in the modern interconnected world. These challenges include economic instability, the need for sustainable social development, environmental pressures, and the growing role of digital transformation. The study emphasizes that institutional capacity should not be limited only to the availability of financial resources but must also integrate administrative efficiency, human capital development, participatory governance, and the ability to foster trust between authorities and citizens.The methodological framework is grounded in an interdisciplinary approach that combines institutional analysis, socio-economic modeling, and detailed case studies of specific territorial communities. Such a multidimensional methodology enables a holistic assessment of the resilience of local institutions and their readiness to act under conditions of uncertainty and multiple external shocks. The findings suggest that the effectiveness of socio-economic rehabilitation depends primarily on the ability of local institutions to combine their own endogenous resources with opportunities for external support, particularly from international donors, non-governmental organizations, and transnational networks.Furthermore, the article systematizes the key factors of institutional resilience, including financial autonomy, administrative flexibility, social cohesion, and the capacity to innovate. By examining successful and problematic cases of community recovery, the study illustrates how different strategies of adaptation may either accelerate or hinder long-term rehabilitation. The practical recommendations proposed in the article are aimed at strengthening the role of decentralized communities in reconstruction processes by promoting inclusive decision-making, enhancing digital skills, and expanding international cooperation.The conclusions emphasize the urgent need to maintain a balanced approach that reconciles local autonomy with broader global integration. This balance is essential not only for ensuring sustainable economic growth but also for improving the overall quality of life and well-being of the population. In this way, decentralized communities can become active agents of change, capable of overcoming the destructive consequences of war while simultaneously responding to the global challenges of the twenty-first century.