Экономические науки/13. Региональная экономика

 

Aleksenko Vadim

Student direction training “State and municipal management”

P'yanov Aleksandr

PhD in Sociology, Assistant Professor

North-Caucasian Federal University, Russia

 

MANAGEMENT ASPECTS OF DEVELOPMENT OF REGIONAL ECONOMY

 

The strategy of economic development of the regions is a complex system of various measures aimed at realizing the long-term objectives of the country's social and economic development, taking into account the rational contribution of the regions to the process of solving these tasks. The rational contribution of the regions is determined by the real prerequisites and limitations of their development. Over time, the regional economic development strategy may change. The reason for this is the socio-economic and political orientation of the state at a certain stage of economic development, which is formed on the basis of a complex system of conditions, as well as factors that influence the target setting of the development of society. The implementation of socio-economic policy includes the relationship of the federal center with the subjects of the state and foreign economic interaction with other states.

The transformation of the entire system of property relations and market reforms did not lead to a more effective management and production growth. Adopted by the “state” model of market reforms, it was simply not able to ensure a stable socio-economic development of the state and its subjects. Many instruments of a market economy are still not fully used in economic practice. Therefore, the search for effective forms and methods of strategic management of social and economic development of Russian regions is still topical.

Today, the Russian economy is strengthening the same trends of modern economic development that are characteristic of emerging economies, namely: globalization, the active development of the service sector, the formation of a post-industrial society and its full informatization, the active development of various network communication forms, etc. All this predetermines the need Search for new ways of regional development [1].

The theory of pre-industrial, industrial and post-industrial (information) development of the society of Raymond Aron [1], Daniel Bell [3], William Rostow [4] and Alvin Toffler [5] can be used to effectively analyze the level of regional development and further develop strategies for the economic development of regions. These concepts suggest that economic development overcomes three stages: agrarian, industrial and post-industrial (information). The concepts of theories of the stages of growth make it possible to assess the background and prospects for the economic development of a city or region. Because, only having analyzed the dominant type, for example, of the city's branches, it is possible to reveal various features of managing its economic development.

So industrial cities have different laws, which are determined by the place of the leading sectors in the economy. In such a city, the leading industry creates jobs, and the rest of the infrastructure is more engaged in servicing the main production. In such conditions, cities with a mono-industry structure are very often formed. Here one or several enterprises belonging to the same industry determine the entire state of the economy, as well as the social sphere of the city.

A completely different situation develops in post-industrial cities or regions, where the level of development of the service sector (urban infrastructure: the degree of development of roads, communications, housing, and entertainment, the level of crime and the city's provision with qualified personnel) is the main sector of the economy, which determines their well-being. . This is what determines the potential for the effective development of a postindustrial city, as well as the ability of the infrastructure to accept completely new types of business, new people, quickly and effectively adapt to new changing conditions [6, p. 41].

In Russia, there are two processes – de-industrialization and the growth of the share of the service sector in the economy. These two processes are the opposite. Deindustrialization assumes a simultaneous decrease in the share of processing industries and the strengthening of extractive industries. This process is partly forced, and it is mostly negative from the point of view of the development of the state economy, therefore the sector of manufacturing industries with a high share of added value is narrowing. “The decline in processing industries reached 2.2 %, and the total output volumes returned to the levels of 5 years ago, almost repeating the lows of the end of last year. And only in the food and chemical industry, producing slightly more than 13 % of the industrial output, the output in July 2016 exceeded the pre-crisis level. In metallurgy, production of vehicles, electrical equipment and building materials, output decline is 14 – 17.5 %, and in other manufactures (including furniture industry) – 25.7 %” [7]. This is an indication that today the main factor of development is not production and rational use of them.

Simultaneously with the process of de-industrialization in Russia, there is an increase in the share of services, trade, and financial institutions. This process is typical for the post-industrial stage of the development of society. The evaluation of postindustrial trends makes it possible to identify the most advantageous factors of the economic development of the regions. These factors include: the level of development of social and leisure infrastructure, the level of professional qualifications of people; Information and management technologies.

The administration of many regions in the process of carrying out its activities, which is aimed at the economic development of the region, begins to master completely new management technologies:

1) Instruments of regional industrial policy, which include a wide range of methods for attracting investments;

2) Methods of strategic planning for the development of the region;

3) Methods of regional marketing and methods of “promotion” of regions and cities;

4) Application of best practices of other regions and cities.

On the basis of all this, it can be argued that the economic well-being of Russia's regions is based not only on the initial advantages, such as geographical position, the presence of a large number of natural resources, but also the qualitative management of their socio-economic development.

For effective development of regions, it is necessary to use all modern methods of regional management: strategic planning, regional marketing, etc. Today the main factor of success in effective management of regional development is the level of qualification of the staff of the regional administration, as well as effective use of the intellectual potential of regional development consultants.

The planning strategy of the region is a set of techniques that enable us to determine the main development goals, analyze the entire development potential of the region, which contains various advantages (features of the region that distinguish it from others). On the basis of all this, a development concept and a plan of concrete actions are developed, which is further analyzed for efficiency and effectiveness. The cyclic algorithm for strategic planning of the development of the region is presented in accordance with Figure 1.

 

Скругленный прямоугольник: Analysis of the features of the region, it’s potential
Скругленный прямоугольник: Definition of goals for the development of the region Скругленный прямоугольник: Use the region's existing advantages or create new ones
 


                                                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Figure 1 – The cyclic algorithm for strategic planning of the development of the region

To date, the strategic planning of the regions is presented in the form of a large number of state programs for the development of the subjects of the Russian Federation. These programs are aimed at overcoming the crisis, improving the well-being of residents, developing education, creating new jobs, updating the entire structure of production, developing the existing ones. For example, the state programs of the Stavropol Territory for 2016 – 2021. Include such areas as: the development of agriculture, the development of the sphere of labor and employment, the development of education, the development of culture and the tourist and recreational complex of the region, the development of health care, and the social protection of citizens.

Regional marketing is one of the most successful concepts of modern management. Most of the methods of marketing today are actively developing and being developed in the framework of regional marketing, which is carried out by state bodies of regional management. Under the notion of “regional marketing” is a system of bringing to the region absolutely new economic agents that contribute to the prosperity of the region as a whole. Regional marketing of the region can be carried out in the form of marketing of land, housing, areas of economic development, investment, tourism marketing, etc. [8, p. 169]. One of the main goals of regional marketing is to communicate information about the region as a place for an efficient and prosperous business. All this is carried out by the regional chambers of commerce and industry of the regions, their tourism ministries, various organizations, etc.

In the role of one of the tools of regional management can be the strategy of branding the territory. Territorial branding is a strategy to increase the competitiveness of cities, regions, states, in order to conquer foreign markets, attract investors, tourists, new residents, skilled migrants, through the formation of a favorable image [9, p. 234]. The object of branding is a specific territory – a city or rural municipality, region, country. The formation of a favorable image of the region today is simply necessary, because it can serve as a lever for attracting “lost” investors, as a result of imposing economic sanctions against Russia. Touching upon the branding problem of the territory, it should also be noted that it can play a key role in economic development, both in individual subjects of the Russian Federation and throughout the country, by increasing the inflow of foreign investments into various spheres of the economy. These investments are able to solve the problem of not mastering the vast expanses of our country, since solving this problem purely by our efforts will take quite a lot of time and money, which also need to be spent on other areas.

Thus, the economic development of the regions is a complex process, with its shortcomings, which is a complex system of various activities, the goal of which is the implementation of long-term objectives of the socio-economic development of the subjects of the state and it’s overall. All this suggests that the process of solving the problems of the economic development of the regions should be carried out taking into account the rational contribution of the forces of the state and the regions themselves, directly. In order to solve this problem, it is necessary to conduct effective diagnostics of the current level of development of the region for making the necessary corrective management decisions in the strategy of its development.

 

References

1. Morozova, T. (2015) Gosudarstvennoye regulirovaniye ekonomiki i sotsial'nyy kompleks [State regulation of the economy and the social complex].  Moskva: Yuniti. 287 p.

2. Aron, R.  (1956) Le développement de la société industrielle et la stratification sociale.  Paris, Centre de Documentation universitaire, 1956. 239 p.

3. Bell, D. (1973) The coming of post-industrial society: A venture of social forecasting. New York: Basic Book. 507 p.

4.  Rostow, W. (1962) The process of economic growth. New York: Norton & Company. 285 p.

5. Toffler, A. (1991) The Third Wave: The Classic Study of Tomorrow. New York: Bantam Books. 780 p.

6. Vizgalov, D. (2010) Marketing goroda [Marketing of the city]. – M.: Fond «Institut ekonomiki goroda», 2010. 110 p.

7. The Higher School of Economics predicted the de-industrialization of Russia. Retrieved from: http: //www.finanz.ru/novosti/aktsii/vshe-predskazala-deindustrializaciyu-rossii- (reference date 10.03.2017)

8. Sachuk, T. (2009) Territorial'nyy marketing [Territorial marketing]. St. Petersburg: Piter. 368 p.

9. Pankrukhin, A. (2010) Marketing territoriy [Territorial Marketing].  St. Petersburg: Piter. 416 p.