Economic sciences / 6. Marketing and management

Savkina A.V., Cand.Econ.Sci. Baranova N.A.

A. Baitursynov Kostanay state university, Kazakhstan

INTERRELATION OF THE PUBLIC AND REGIONAL GOVERNMENT ECONOMY

Regional features of social and economic development, originality of transition of economy of regions on a market way of development assume use of the corresponding mechanism of management by regional development.

As domestic practice showed, regional level was the most unprepared for introduction of market mechanisms of managing, owing to lack of accurate differentiation of powers between republican and local governing bodies, and also full delegation of responsibility from higher echelons of power subordinate.

In former times at the state and regional levels territorial bodies of the real rights and the financial security had almost unsoluble problem of differentiation of functions of management because of absence, all management process, both economy, and by other spheres of public life was carried out from the uniform center.

The world practice shows that formation of an optimum ratio between state and regional levels of management of regional reproduction substantially is defined by stability of economy of the state: during the periods of crisis the state role amplifies, and in process of stabilization of an economic situation the right of management passes to local bodies.

Differentiation of functions of management by economy of the region has to proceed from certain principles (Figure 1).

Differentiation of functions of management by economy of the region has to proceed from certain principles: self-government, independence in management of local economy, strengthening of a regulating role of the state in economy.

Considering these principles, it is possible to allocate one their main functions of republican governing bodies by economy – definition of the major strategic directions and priorities of social and economic development, preparation and financing of national programs for global problems for the republic, participation in the international and interstate territorial division of labor.

Figure 6. Principles of differentiation of functions

managements of region economy

Republican governing bodies have to perform the general management of regional development, involving in this process necessary regional factors and reserves [1].

Here it should be noted importance of such element of interaction of levels of management, as decentralization, that is, granting independence to regional public authorities. Always there are functions which are expedient for centralizing, and functions which is admissible to disperse. Decentralization acts as means of increase of efficiency of public administration. The main advantages of decentralization of management are reflected in Figure 2.

Figure 2. Main advantages of decentralization of management

It is obvious that various level of social and economic development of regions, leaves a mark on character of measures carried out by the state. As the main instrument of state regulation of regional development the state regional policy here acts.

The state regional policy - a component of the general policy of the state, directed on effective use of territorial factors of activity and managing for achievement of strategic objectives and problems of sustainable social and economic development of the country.

The purpose of regional policy is creation of rather equal opportunities for activity of the population and effective use of resource and production capacity of each region on the basis of rational territorial division of labor and formation of the principles of development of territorial self-government [2].

When carrying out regional policy the state, реализуя economic targets and tasks, provides social and environmental standards of life support of the population [3].

Relations of production, first of all the enterprise belong to objects of regional economic policy as primary link of public division of labor.

The regional economic policy acts as a component, an element of uniform state strategy of economic development in which implementation are interested, both central, and regional governing bodies.

Literature:

1. Kenzheguzin M.B. Reforming of economy of Kazakhstan: problems and their decision. – Alma-Ata, 1997. – 352 p.

2. The resolution of the government of the Republic of Kazakhstan of December 7, 2001 N 1598 «About the Concept of regional policy of the Republic of Kazakhstan for 2002-2006».

3. Vakhilevich N. V. The priority directions of a sustainable development of economy of the region (on materials of Stavropol Krai). The author's abstract of the dissertation. - Kislovodsk, 2012. - 159 p.