Tofan A.L.

Donetsk national university, Ukraine

MANAGEMENT OF THE REGION DEVELOPMENT: WORLD AND NATIVE EXPERIENCE

There is no “freedom of market” in the countries with advanced market relations. The governments of these countries realize a necessity to take into account the whole gamut of workable factors calling to curtail this freedom. The system of state’s methods of management of economic and social processes is widely used in all countries with the market economy. This is a topical problem for Ukraine in the light of national regionalization. The modern stage of Ukraine development is characterized by the active search of effective ways of an economy management on the different levels. This process can be characterized as a purposeful choice of managing decisions and economic methods of management, which must determine such proportions of public recreation (balance achievement of resources usage in the system), which will be maximally satisfy the requirements of population in a region and advance in living standard.

A problem of the regional development management is a point of considerable interest of leading economists. This problem was researched by М.І. Dolishniy, N.G. Chumachenko, I.I. Lukinov, I.V. Salo, D.M. Stechenko.

The main purpose of the article is a generalization of the historical and world experience of region management and projection of modern world regional development trends on the Ukrainian reality.

The search of the most effective control chart for the national economy was taken place over the time of former Soviet Union (table 1).

The chronology of change in the management approaches shows domination of the departmental system of management. This system was effective in the stage of the national economy industrialization and in the stage of its renewal. It allowed to stick to hard and dynamic departmental technical and economic measurement dates, to carry out a single scientific and technical policy in all sectors. But the result of this was the formation of real socio-economic problems in the country’s regions: demographic, economic, ecological, social. The origin of these problems depends on the industrial enterprises location in cities and districts, which lead to the forming of industrial structure of regions subjected to the branch-wise interests. Exactly the branch organs of management came forward the initiators of the placement of production in certain regions, following the aims of efficiency of branch production increase. The minimization of production and transport charges of this brunch was the basic criterion of effectiveness of placement.

Table 1. - Stages of national economy management charts development

Years	Management chart	Special changes of management charts
Beginning of the 20th years (NEP)	Territorial	Administrative functions are passed to the regions. The center executes the national defense functions and external economic relations, world trade management.
Beginning of the 30th years	Branch-wise	The departmental system of management is actively created and becomes more complicated.
Year 1957	Territorial	Departmental ministries are liquidated. Administrative-economic districts are formed. However, some brunches are under the state administration: electroenergetics, national defense, industry, etc.
Year 1965	Branch-wise	Radnargosps are liquidated. Stormy growth of ministries and departments.
Year 1987	Regional	The course aimed at the regional direction strengthening in national economy management is declared.

However, such approach without accounting of territorial aspects brings to the serious losses.

The advantage of the territorial approach is closely connected with the possibility of the complete and balanced usage of industrial, geographical, labour resources with a glance on the general socio-demographic situation in the region and other factors of the region development. Speaking about obvious advantages of the territorial approach in the management it should be pointed out disadvantages of this approach, namely: appearance and contrasting of the regional socio-economic interests to the national ones, possibility of adoption of new technique and technologies are limited, single scientific and technical policy implementation.

The necessity of tasks decision, which provides a methodical basis for the government control of the region development, supplements the modern problems of search of the effective chart of the region development management.

Conception of regional development contains the ideas of state’s regional policy, formulates the main purpose and priorities of the regional development on the tactical and strategic prospect and also basic problems and algorithm of their solutions. First of all, this is development, introduction and legal substantiation of the mechanism of regions functioning - organizational, legal, economic and financial [2, p.10].

Summarizing world progress trends we can distinguish two tendencies in the regional management: growth of regions political weight and increase of regional initiatives in the economic sphere. The model of regional development of the European Union is based on the strategic partnership between the central government and local authorities, business and public organizations. The importance of the regional component in the future arrangement of the European Union is underlined also thought the instrumentality of the association’s slogan «Europe of regions».

The experience of the developed countries certifies that the management of the region development is impossible without creation and realization of the effective regional policy. First of all, it is necessary to reconstruct the legacy regional policy and to develop mechanisms oriented on the reduction of disproportions of economic and social development between regions proper.

Understanding of differences and disproportions scales within the regional development is very important for forming of effective mechanisms of the region management, which are in need of the special system of factors and levers which will allow to estimate the influence on an improvement or worsening of the region economic indicators and to carry out operative interference in its development. The development of such system of factors must lean on the existent world experience of the state regions administration.

Thus, the management of the region development is a purposeful activity of the state, which is directed on the maintenance of integrity and intercommunication between the components of socio-economic development of the region [8, p.16]. In the conditions of market manage forming of a new model of the region management can not be based only on the various forms and methods of government control of the region economy, which would be instrumental in the common free market zone strengthening, smoothing of socio-economic development of regions, economy growing and steady social development. It is necessary to create the effective mechanism of socio-economic region development management with a glance on the world experience. Such mechanism is determined by the system of leverage using at the state, regional and local level for the purpose of forming of market zone which develops according to the market economy laws. On the one hand, the levers of this mechanism must be instrumental in forming of the market system as the most suitable for economy development, must ensure the production efficiency.