Tofan A.L.

Donetsk National University

 

EVALUATION OF EFFECTIVENESS OF REGION MANAGEMENT

 

One of the ways of qualitative building of the own management system is studying the world’s experience and the modern tendencies that exist and which are the guideline for the authoritative experts, forming the programs of the countries’ development. The worldwide development orientation according to the regional principle is the modern conception of the social-economic systems development. But it’s necessary to realize the difference between the meaning of the concept «region», and the main factors which characterize the development of the social-economic system.

The aim of the theses is systematizing of the existing criteria of evaluation of the region management effectiveness and projection of the modern world tendencies in evaluation of regional development upon the Ukrainian reality.

For forming of effective regional management mechanisms it’s necessary to have the system of factors and leverages which allow to value the influence upon the improvement or worsening of the economic indicators of the region and to realize the efficient interference in its development. Creation of such factors system must be founded on the existing world’s experience of state regional management. Territorial development management in the national and world practice concerns the problem (depressed) areas at first, which appear as a result of the regional development peculiarities, regional differences, in particular the inequality and disproportion in the development of the regions, which are caused by different historical-geographical preconditions of economic mastering of eastern and western territories, natural-resort potential, population settling and demographic situation.

The common criterion of depressed area development effectiveness evaluation in Ukraine is gross extra cost per one person, in RF and European Union – production slump in the main branch of economics. For the management effectiveness evaluation on the regional level in Ukraine (regions are classified into regions, industrial regions, rural areas and cities of regional importance) the gross extra cost indicators are used, and also the level of unemployment, the level of the average salary.    

In EU the simplified classification between the regional formations (poorly developed, structurally weak) is used and the management indicators such as GDP (gross domestic product) per one person, unemployment level, quantity of industry workers.

For the regional development effectiveness rise, more effective usage of its natural-resort potential, it’s necessary to improve the existing technologies and apply or adopt the new ones, innovations, methods of evaluation etc.

Table-comparative description of state management experience in regional development.

 

Ukraine

Classification of regions

Regions

Industrial regions

Rural areas

Cities of regional importance

Regional evaluation criteria

Indicators of gross extra cost per one person for 5 years

Unemployment level; part of industry workers; amount of industrial production per one person for the last 3 years

Density of rural population; increase of population; part of agriculture workers for the last 3 years

Unemployment level; level of average salary for the last 3 years.

Instruments of state stimulation

Agreement about regional development

Program of overcoming of depressive territories

Strategy of social-economic development of the territory

Forms of stimulation

Special law regimes for the investment activity (FEZ)

Target state investment into infrastructure development

Programs of support for the development of the small enterprise

Help with employment of population, investment in programs of retraining and professional development

Consultative and deliberative bodies

State commission in depressive territories problems

Agencies of regional development (ARD)

 

European Union

Classification of regions

Poorly developed

Structurally weak: rural territories

urbanized territories

Regional evaluation criteria

·                 GDP per one person (lower than 75% of average size in European Union)

·    Density of population (less than 8 persons per sq.km.)

Regions with these problems are shown separately

·  level of unemployment;

·  part of industrial workers;

dynamics of industry

·  density of population (less than 100 persons per sq.km.);

·  part of agriculture workers;

  level of unemployment

Instruments of state stimulation

Regional development plan, which is founded on the strategy partnership between the central government, local bodies of power, business and social organizations

Forms of stimulation

Program-target approach to regional development management

Consultative and deliberative bodies

Structure funds of EU

   

As the state economics management is based on planned principles, as foundations of certain management form, it, synthesizing with other elements of management, gives it qualitatively new characteristics. Planning occupies a leading place in the management structure because planning gives the opportunity to balance the society influence on the system of the market economy beforehand, which puts its imprint on the management in general. Planning gives the opportunity to connect all the elements of management as the target system. Practice shows that the decisions which are made without taking into consideration the elements of planning, lead to the increase of expenses.

In the conditions of the market economics forming of the new model of regional management can’t be founded only on the different forms and methods of state regulation of regional economics, which could help strengthening of the general economic space, leveling of social-economic regional development, their economic growth and persistent social development. Creation of effective mechanism of regional social-economic development management with taking in consideration the world’s experience is necessary.