Regional economy - what is it? The concept, methods, development and problems of the regional economy

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

Regional economy is the economic activity of society, structurally related to mesoeconomic science. Its main difficulty lies in the variety of forms. In general, she is studying the basics of the rational distribution of various industries and markets for the sale of their products. Read more about the regional economy in our article.

Essence and purpose

Regional economy is one of the branches of the national economy that studies the organization of production with an emphasis on the territorial characteristics of each region. The subject of its study are the processes and phenomena that are associated with the development of the market in various areas and with the unification of the economic systems of the regions into a single whole. In addition, the regional economy is a system of research, the purpose of which is to determine the common and distinctive features inherent in various regions of the country, as well as to determine the specifics of each of them.

Based on received dataindividual programs are created taking into account the specific features in individual territorial units. There are two main approaches to the systematization and analysis of this type of economy: each area is considered as part of the world economy or part of the state. Within the framework of the first type, the economy of the region is perceived with the help of the world economic (G8 countries) and geopolitical (countries of neighboring states) approaches. Within the framework of the second type, the regional economy is studied using the territorial reproduction approach.

Regional economy is a combination of several approaches. If the world economic and geopolitical are used directly in the study of the situation with development on the ground, then in the national economy the territorial-reproductive method of study is more relevant. Under the conditions of the system of administrative distribution, where the main priority belongs to sectoral management, it was the regional economy that was the least developed. The evidence is the fragmentation in the development of various regions of our country and the diversity of methods of the regional economy.

Theory of regional reproduction

Currently, a diversified economy, radically new economic relations, as well as a new management system are being actively formed. Since the regional economy is the economy of the regions, there is an urgent need for a new system for managing the socio-economic development of territories. Creation of new mechanismsimpossible without the theory of regional reproduction, as well as without studying the laws of social reproduction and their subtleties at the level of each region. A reproductive approach to the process of managing social and economic systems in them is impossible without studying the relationships and dependencies between the various elements of production in all territorial areas that ensure the qualitative development of the country's economic condition.

Territorial division

Regional economy is the economy of regions, the definition of which needs to be discussed in more detail. In various literature, such related concepts are used: the system of territories, the economy of regions, the district, etc. All of them have a different semantic coloring. In an economy where the main object of management decisions is the territory, and decisions can be made at the federal, regional, municipal levels, it is necessary to be aware of the enormous responsibility in dividing the territory into subjects. Within the framework of the European Economic Community, a single concept of the region has been developed for all. A sign of a territorial association as an independent unit is the commonality of economic processes in this area and in the country as a whole. In another way, we can say that the economic processes of a single region should be associated with the overall pace of development of the country, which are determined on the basis of the commonality of economic, social and natural factors.

The region can also be considered as a certain part of the production and economy of the country, which is characterized by unity andgenerality of the reproductive process. It is possible to correlate the concepts of "region" and "territory" in the same way as the concepts of "part" and "whole". The concepts "district" and "region", which denote a part of a certain territory, can be called synonyms, which denote a limited part of the space.

Territorial system of Russia

The regional level of the economy is a few officially recognized territorial units:

Structure, the basis for the creation of which is the territorial division of labor. Its constituent territories are distinguished by a predetermined specialization. Each part of this device is in the structured action of social reproduction and has its own individual characteristics. The territorial division of labor is a process of specialization of production, differentiation of economic entities, development of logistics between regions, exchange of services and products. This structure lays down fundamentally important forms and patterns of organization of economic entities.
The structure that is responsible for the criteria of the national state structure and determines the rights and freedoms of subjects, taking into account the unconditional reliance on the Constitution of the Russian Federation.
The structure of regions, which reflects the territorial and administrative structure of all regions of the country. Its prerogative is the peculiarities of the settlement of people and the competent management of social and economic phenomena throughout the territory.state.
One of the structures of the regional level of the economy is the study of areas for the implementation of various programs. Their implementation into reality is the cause of huge shifts in the dislocation of territories and the concentration of productive forces.

Three main principles

The purpose and object of studying the regional economy and management is the implementation of actions to achieve a high quality and standard of living for people. The regional economy is often based on three main principles:

A thorough consideration of the needs of the inhabitants of each region, the dynamics and state of markets, government and business interests.
Creating conditions for the most organic adaptation of the economic structure of each territorial unit to various environmental factors.
Active implementation of the interests of various regions.

Problems and methods of classification

Different approaches to the analysis of the problems of each region, fragmentation and synonymy of the concepts "region", "district" and "territory", various classifications are the objects of study of regional economics and management. All areas have important differences. Among them there are developed and developing, peripheral and central, with population growth and decline. From some, young people tend to leave as soon as possible, and to others - to move. The subject of the regional economy is various territorial units that differ from each other in the level of productivity, the structure of society, the base of raw materials and usefulfossils, proximity to the capital.

It is possible to classify regions according to their developed trades and professions: with developed agriculture, with a variety of industries, marine, fishing, gas and many others. You can also classify them according to the following criteria: the speed of economic development, territorial structure, population density and growth, the nature and coefficient of specialization of production.

At the moment, due to the rapid entry of regions into the market, one can single out such a classification criterion as market capacity. We can say that recently the subject of the regional economy is also the degree of specialization of social labor, in other words, the division of labor activity. The more detailed it is, the stronger the cooperative ties between various enterprises and activities of any territory.

Basically, the subject of regional economics is the classification of individual areas. Approaches to it are being improved every year due to various innovations. In the countries of the West, districts are classified as follows:

With high rates of development in the past and fading in the present (depressive).
With a zero rate of development (stagnating).
Pioneer regions of new development, basically, they are always the most promising.
Primary economic areas (micro-regions).
Regions that form the regional macro-division schemes of the country (general).
Those for which target programs (planned) are a priority.
Differentthe presence of fairly large construction projects or a low level of development (design and problematic).

Innovative development of the regional economy is also the study of various problematic issues of local policy. The prolonged crisis has left its mark on many regions of Russia. To stabilize the position of the regions, it is necessary to follow fundamentally new strategies for growth and development.

Due to the huge disparity of geographical, natural, economic and other initial data, reproductive processes in the region are unique. An individual approach to the development of each territorial unit is a necessary condition for overcoming the crisis and reaching the forefront in terms of living standards.

Successful functioning of the regional market in the economy is a balanced and wise conduct of business by a person in a leadership position, his ability to take into account the interests of the center and the territories entrusted to it. The rate of development of the region depends not only on the forms of ownership, but also on the methods of economic management, social and economic relations, the rational use of the advantages of this particular area, the search for the best combination of federal and local interests of society and the economy, which will become the fundamental components of a progressive economic policy.

Main goals, challenges and challenges

The success and competitiveness of the regional economy is a set of components, among which it is necessary to single out the perception of this particular area asthe main subject of economic and political relations. First of all, it is necessary to identify the specifics of the region and the priorities for the implementation of its activities, taking into account both cultural and historical development, and specific features. The competitiveness of the regional economy is the ability to take into account both the advantages and disadvantages of a single territorial unit. All these qualities can be used for the benefit of the development of the country's economy.

Regional policy is the various actions of state structures to manage the political, economic, social and environmental development of each region and country as a whole. These can be actions both at the municipal level and at the state level. The development of the regional economy takes place in a spatial aspect and reflects both the interaction of the state and its regions, and the cooperation of territorial units.

Here is what can be attributed to the main objects of the regional economy:

Production facilities are primarily enterprises.
Social objects. This is a person, a family, an ethnic group.
Monetary and financial objects.

The subjects of regional governance can be both specific representatives of various government structures, and entire organizations, enterprises and institutions. The state regional economy directly depends on the development of each territorial unit of the country, and especially on changes in the internal socio-economic structure of a single region. Different levels of resource provision, quality of life and economic development,infrastructure, the state of the environment, the acuteness of social conflicts exist in every country, regardless of its level of influence in the world. The goals, objectives and methods of the regional economy in states can be completely different. However, everyone is striving for one common goal - improving the living standards of their citizens.

Goals and problems of the regional economy include:

Providing the fundamental foundations of statehood and stabilizing the single economic space.
Maintaining the level of development of the regions at a consistently high level.
Priority development of the regional economy of the most strategically important regions of the country.
Using the characteristics of each area for the benefit of the entire state.
Respect for the nature of each region.

Federalism and regionalism

The fundamental foundations of the regional economy is the union of federalism and regionalism. What do these specific terms mean?

Federalism is a system of state powers distributed among the federal, subfederal and local branches of government.
Regionalism is the consideration and solution of economic, social, political and other problems, taking into account the interests of a particular area.

Based on experience in world practice, it can be argued that in a crisis era, contradictions arise between supporters of federalism and adherents of regionalism, which are expressed in the relationship between the center and the periphery (development "from above") and disagreements and changeson the ground (development from the bottom).

Locality

Locality in the regional economy is the main part of the territory where one strategically important object is located. An example of a locality is a compact settlement, a strategically important enterprise, a communications network. There is a settlement, recreational, transport and industrial locality. Several of their stable combinations are also noted:

1. Forms of spatial settlement.

2. Forms of spatial organization. These include:

Industrial hub - associations of various enterprises that are located on a limited area of the territory, built according to one project and having a common social and industrial infrastructure.
Transport hub - the union of transport communications located near the center, where production or population is concentrated.
Territorial production complex (TPC) - a large area with a group of organizations located on it, which together are an integrated production chain that uses the offered natural resources and reduces costs by reducing transport costs.

Territorial production complexes have a certain specialization in production on the scale of the global, national and interregional markets. Often, with the help of TPK, new territories with a large amount of natural resources are being developed.

Intersectoral territorial complex - these are production facilities located in the same territory, which are part of the state systementerprises and organizations with a common development program.

Intersectoral industrial complexes cover mining, ore and metallurgical, fuel and energy, machine-building, chemical, construction and light industries.

Agro-industrial sectors cover crop and livestock production along with enterprises processing agricultural raw materials.

Research in the regional economy

Among the methods used by the regional economy, there are several main ones:

System analysis. The essence of this method is to follow the sequence of steps. This is the setting of goals and objectives, the formulation of a scientific hypothesis, the study of the features and nuances of the placement of a set of industries. It is also a cognitive scientific approach that allows you to better understand the links between different sectors of the economy.
Systematization method. It is connected with the ordering of various processes and phenomena in the regional economy through the use of typology, concentration and classification.
Balance method. It can be characterized by the compilation of regional and sectoral balances.
Method of economic and geographical research. It has several parts. This is:

- local research method in the regional economy (study of the development of production in a single city or settlement;

- analysis of the development of industries);

- regional method (study of ways of development andformation of territories, as well as the place and role of production in the development of each area);

- sectoral method (studying the development of economic sectors in a geographical aspect, as well as familiarity with the branches of the regional economy and their study).

Cartographic method. It involves studying the features of the location of various regions.
Method of economic and mathematical modeling (modeling of images and situations). With the help of models, various studies of economic phenomena and processes in the economy of a territorial unit are carried out. With the use of modern technologies, this method allows processing various statistical data in the shortest possible time and modeling possible options for the economic development of regions. It also makes it possible to create various situations, to study the causes and consequences in the economic environment.

Nuances of regional policy implementation

The main task of Russian regional policy is to take into account the identity of each individual region in the system of the whole country, transfer all the most important state reforms from the center to the localities, support small businesses and local governments, solve the economic and social problems of the population, consistency and rationalism in the use of natural resources. In one of the decrees of the President of the Russian Federation, the main goal of regional policy is clearly indicated. It consists in securing the status of statehood of the Russian Federation, strengthening the status of the federation, creating conditions forrapid and harmonious development of each region, ensuring the welfare of our country in various ways.

Main tasks to be performed by the regional economy:

Maintaining the domestic market of Russia at a consistently good level.
Unity of all components of the monetary economic system.
Control of imported and exported goods, as well as maintaining partnership commodity-money relations between enterprises;
Maintaining the presence of he althy competition among related industries and enterprises.
Free movement of goods within the country and exported products abroad.
Regular improvement of the welfare of the population of our state.
Eradication of the trend towards social inequality.
Development of inter-regional horizontal ties.
Formation and development of a stable labor market.
Creation of capital markets through the development of a system of joint-stock companies, stock exchanges, commercial banks.
Quality reforms in the economy and overcoming the crisis.
Out of political instability, establishing contact with foreign communities.

It is safe to say that the main goal of the development of the regional economy is the complete eradication of social inequality and the establishment of our country on the path of financial stability. Every citizen of the Russian Federation should have opportunities for self-realization and the choice of ways to financially support themselves and theirfamily.