This paper is dedicated to the issues of formation of civil society and democracy in Ukraine, current state and reformation of the system of public administration and local self-government on the basis of democratic principles. This paper is an analysis of different aspects of democratic development in the country, particularly all aspects of democratization of governance on all levels. Key factors and elements of democracy are the basis for this investigation. The main directions of which are: civil society, transparency of power and public participation, local democracy and local self-government, state of citizens’ activity and political situation. This paper investigates: what are the main priorities set to improve the Ukrainian public sector on the basis of democratic principles and norms, and what are the mechanisms used to achieve it?