The 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 rational distribution of various industries and markets for the sale of their products. You will learn more about the regional economy from our article.
Essence and purpose
The regional economy is one of the sectors of the national economy that studies the organization of production with an emphasis on the territorial features of each region. The subject of its study are processes and phenomena that are associated with the development of the market in various fields and with the unification of the economic systems of the regions into a single whole. In addition, the regional economy is a research system whose purpose is to identify common and distinctive features inherent in various regions of the country, as well as to determine the specifics of each of them.
Based on the data obtained, individual programs are created taking into account specific features in individual territorial units. Two main approaches to the systematization and analysis of this type of economy can be distinguished: each area is considered as part of the world economy or part of the state. Within the framework of the first type, the region’s economy is perceived using the world economic (G8 countries) and geopolitical (neighboring countries) approaches. In the framework of the second type, the economy of the regions is studied using the territorial-reproductive approach.
The regional economy is a combination of several approaches. If world economic and geopolitical are used directly when studying the situation with local development, then the territorial reproduction method of studying is more relevant in the national economy. In the conditions of the administrative distribution system, where the main priority belongs to sectoral management, the regional economy was the least developed. The proof is the fragmentation in the development of various areas of our country and the variety of methods of the regional economy.
Theory of Regional Reproduction
At present, a multistructured economy, radically new economic relations, and also 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. Creating new mechanisms is impossible 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. The reproductive approach to the process of managing social and economic systems in them is impossible without studying the interconnections 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
The 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, a region, etc. All of them have different semantic meanings. 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 realize the enormous responsibility in dividing the territory into entities. Within the framework of the European Economic Community, a common concept for the region has been developed. A sign of a territorial association as an independent unit is the community 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 particular region should be associated with the general pace of development of the country, which are determined on the basis of common economic, social and natural factors.
The region can also be considered as a certain part of the country's production and economy, which is characterized by the unity and community of the reproduction process. One can relate the concepts of “region” and “territory” in the same way as the concepts of “part” and “whole”. The concepts of "district" and "region", which designate part of a certain territory, can be called synonyms, which designate a limited part of space.
The territorial system of Russia
The regional level of the economy is a few officially recognized territorial devices:
- The structure, the basis for the creation of which is the territorial division of labor. The territories included in its composition are distinguished by a predetermined specialization. Each part of this device is in a 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 fundamentally important forms and patterns of organization of economic entities.
- The structure, which is responsible for the criteria of the national-state structure and determining the rights and freedoms of the entities, taking into account the unconditional reliance on the Constitution of the Russian Federation.
- The structure of the regions, which reflects the territorial and administrative structure of all regions of the country. Its prerogative is the features of the resettlement of people and the competent management of social and economic phenomena throughout the state.
- One of the structures at the regional level of the economy is the study of areas of implementation of various programs. Their embodiment in reality is the reason for huge shifts in the deployment of territories and the concentration of productive forces.
Three main principles
The goal and object of studying the regional economy and management is the implementation of actions for the implementation of high quality and living standards of people. The regional economy is often based on three main principles:
- Thorough consideration of the needs of residents of each region, the dynamics and condition of markets, state and business interests.
- Creation of 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, the fragmentation and synonymy of the concepts of “region”, “district” and “territory”, various classifications are objects of study of the regional economy and management. All areas have important differences. Among them are developed and developing, peripheral and central, with population growth and decline. Young people tend to leave some of them as soon as possible, and move to others. The subject of the regional economy is various territorial units that differ in terms of productivity, the structure of society, the base of raw materials and minerals, and proximity to the capital.
Districts can be classified according to the industries and professions developed in them: with developed agriculture, with a diverse industry, marine, fishing, gas and many others. You can also classify them according to the following criteria: the rate of economic development, territorial structure, density and population growth, the nature and coefficient of production specialization.
Currently, 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. The more detailed it is, the stronger the cooperative ties between various enterprises and types of activities of any territory.
Basically, the subject of the regional economy is the classification of individual areas. Approaches to it are improved every year due to various innovations. In the mills 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 pace of development (stagnant).
- Pioneer regions of new development, basically, they are always the most promising.
- Primary economic areas (microregions).
- Areas that form the regional macro-division schemes of the country (general).
- Those for which the priority is targeted programs (planned).
- Differing in the presence of sufficiently large construction sites or a low level of development (design and problem).
The innovative development of the regional economy is also the study of various problematic issues of local politics. The long crisis has left its mark on many regions of Russia. In order to stabilize the situation of the regions, it is necessary to follow fundamentally new growth and development strategies.
Due to the huge fragmentation of geographical, natural, economic, and other source data, reproduction 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 frontiers in the standard of living of the population.
The successful functioning of the regional market in the economy is the balanced and wise conduct of business by a person holding a leading position, his ability to take into account the interests of the center and the territories entrusted to it. The speed 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 component of a progressive economic policy.
The main goals, challenges and challenges
The success and competitiveness of the regional economy is a combination of components, among which it is necessary to single out the perception of this particular area as the main subject of economic and political relations. First of all, it is necessary to identify the specifics of the region and the priorities of its activities, taking into account both cultural and historical development, as well as 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 government agencies to manage the political, economic, social and environmental development of each region and country as a whole. It can be actions both at the municipal level and at the state. 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, first of all, are enterprises.
- Social objects. This is a person, family, ethnicity.
- Monetary and financial objects.
The subjects of regional management can be both specific representatives of various power structures, as well as 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 particular region. There are different levels of resource provision, quality of life and economic development, infrastructure equipment, environmental conditions, and the severity of social conflicts, regardless of the level of its 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 standard of living of their citizens.
The goals and problems of the regional economy include:
- Ensuring the fundamental foundations of statehood and stabilizing a single economic space.
- Maintaining the level of development of regions at a consistently high level.
- Priority development of the regional economy of the most strategically important regions of the country.
- Using the features of each area for the benefit of the entire state.
- Careful attitude to the nature of each region.
Federalism and regionalism
The fundamental foundations of a regional economy are the union of federalism and regionalism. What do these specific terms mean?
- Federalism is a system of state powers distributed between the federal, subfederal and local branches of government.
- Regionalism - consideration and solution of economic, social, political and other problems, taking into account the interests of a particular area.
According to experience in world practice, it can be argued that in the crisis era between supporters of federalism and adherents of regionalism, contradictions arise that are expressed in the relationship between the center and the periphery (development "from above") and disagreements and changes on the ground (development "from below").
Locality
Locality in the regional economy is the main part of the territory where one strategically important object is located. An example of locality is a compact settlement, a strategically important enterprise, a communications network. There is a settlement, recreational, transport and industrial locality. Several stable combinations are also noted:
1. Forms of spatial settlement.
2. Forms of spatial organization. This includes:
- Industrial unit - associations of various enterprises that are located on a limited area, built according to one project and having a common social and industrial infrastructure.
- Transport hub - an association of transport communications located near the center where production or the population are concentrated.
- The territorial-production complex (TPK) is a large territory with a group of organizations located on it, which are a combined integrated production chain that uses the proposed natural resources and reduces costs by reducing transportation costs.
Territorial production complexes have a certain specialization in production on a global, national and inter-regional market. Often, with the help of TPK, new territories with a large amount of natural resources are developed.
The interbranch territorial complex is production located on the same territory, which are part of the state system of enterprises and organizations that have a common development program.
Intersectoral industrial complexes cover the mining industry, ore-metallurgical, fuel and energy, engineering, chemical, construction and light.
Agro-industries cover crop and livestock production along with enterprises that process agricultural raw materials.
Research in the regional economy
Among the methods that the regional economy uses, 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 placing a combination of industries. It is also a cognitive scientific approach that allows you to better learn about the relationships between different sectors of the economy.
- Systematization Method. It is associated with the streamlining of various processes and phenomena in the regional economy through the use of typology, concentration and classification.
- Balance method. It can be characterized by compiling regional and sectoral balances.
- The method of economic and geographical research. It has several parts. It:
- The local research method in the regional economy (the study of the development of production in a single city or settlement;
- analysis of the development of industries);
- the regional method (the study of methods for the development and formation of territories, as well as the place and role of production in the development of each region);
- sectoral method (the study of 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 the study of the distribution of various regions.
- The method of economic and mathematical modeling (modeling images and situations). Using models, various studies of economic phenomena and processes in the economy of a territorial unit are carried out. Using modern technologies, this method allows you to process various statistical data and model possible options for economic development of the regions as soon as possible. It also makes it possible to create various situations, to study the causes and consequences in the economic environment.
