Sustainable development of the region: concept, main approaches and factors. Sustainable development of regions and cities of Russia
The world economy is in search of a new vector of development, taking into account the challenges of the 21st century (population growth and aging, climate change, depletion of non-renewable resources). The response to these challenges was the introduction of the concept of sustainable development and the formation of new “green economy” industries.
Sustainable development in the world
The topic of sustainable development appeared in policy documents and legislation of developed countries, international conventions and territorial planning documents more than 20 years ago and has become one of the main global trends in urban development. Technological breakthroughs of recent decades in resource management, in the information and communication sphere, and in the creation of new materials have laid the foundation for sustainable urban development. Sustainable development implies a balanced approach to economic growth, social progress while maintaining environmental quality. The concept of sustainable development is based on the desire to meet human needs and ensure growth in the well-being of the population, innovation and development of the knowledge economy, energy efficiency, environmental sustainability, as well as changing consumption patterns in general.
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Financial sector companies that implement “responsible financing” practices can play an important role in introducing the principles of sustainable development and building a “green economy” in Russia. In my opinion, initiatives to introduce “green certification”, issue “green bonds”, and create a “green fund” similar to the best practices in the BRICS countries have good prospects in this area. Alexander Bychkov, Chairman of the Board of Directors of the SGM Agency |
Thus, in the countries of Northern Europe, the emphasis is on solving environmental problems; in Western Europe and the USA, projects aimed at improving the urban environment and effective urban management are actively developing; in developing countries (China, India, Southeast Asian countries), much attention was paid to the economic development of cities based on the principles of a low-carbon economy. In countries such as Australia, Canada, the Netherlands, Sweden, projects are being implemented to transfer all buildings to a zero energy balance; in a number of European countries it is planned to abandon cars with gasoline engines in the next 10–15 years (Norway, the Netherlands) and the production of non-renewable energy sources (Denmark).
Note that other EAEU countries already have experience in long-term strategic planning in the field of sustainable development (hereinafter referred to as “SD”). Thus, in Kazakhstan in 2013, the “Concept for the transition of the Republic of Kazakhstan to a green economy” was adopted, designed for the period until 2050. The Republic of Belarus, together with the European Union, began implementing a “green economy” development project in 2016.
The first documents in the field of sustainable development in Russia were adopted following the signing of program documents at the Summit of Heads of State and the UN Conference on Environment and Development in Rio de Janeiro (for more information about Russia’s implementation of international climate agreements, read the article in this issue “Forest or “green” technologies"?). In 1996, the President of the Russian Federation approved the Concept of the Russian Federation's transition to sustainable development.
But Russia still lags behind both the leading developed countries and many developing countries in the process of implementing the principles of sustainable development. There is still no long-term strategy for sustainable development in Russia, but over the past five years, certain principles of sustainable development are increasingly used in legislative acts and government regulations, and regulations have been adopted on many individual aspects of sustainable development. This is especially noticeable in the example of recent initiatives to change legislation, in particular in the field of ecology.
Sustainable development of Russian regions
The principles of sustainable development are taken into account when developing strategic and program documents in some cities and regions. At the same time, the declaration of the principles of sustainable development is often not reflected in the actual regional policy.
The achievement of sustainable development of regions, as well as the country as a whole, is still hampered by the strong differentiation in the level of economic development and the quality of territorial planning between different regions and municipalities within regions. Thus, the results of the SD Rating of Russian Cities, compiled annually by the SGM Agency, show that most of the subjects of the Federation are characterized by a significant imbalance between the development of the largest city (usually a regional center) and other large cities. To construct the rating, the rating experience of PWC, McKinsey, EY, Australian Conservation Foundation, Forum for the Future, and European Green Capital was used.
This trend is most noticeable in the Lipetsk, Vladimir, Sverdlovsk, Orenburg regions, Udmurtia, and Altai Territory.
Positive examples of a relatively high degree of balance in the development of the largest cities in the territory are demonstrated by the Kaluga, Saratov, Ulyanovsk, Vologda, and Tula regions.
The Russian Ministry of Economic Development is developing and implementing an action plan to achieve a reduction in greenhouse gas emissions. In 2009, the President of the Russian Federation approved the Climate Doctrine of Russia. The approval of Federal Law No. 261 “On Energy Saving and Increasing Energy Efficiency” in 2009 stimulated measures to improve energy policy. On certain aspects of sustainable development in Russia, regulations have been adopted that address issues of sustainable development in cities: State Program of the Russian Federation “Energy Saving and Increasing Energy Efficiency for the Period until 2020”, State Program of the Russian Federation “Environmental Protection” for 2012–2020, State program of the Russian Federation “Promoting employment of the population”, amendments to the Law “On production and consumption waste”, Strategy for the development of the construction materials industry, which implies the desire for greater energy efficiency in production.
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If we set ourselves the goal of building a “smart city,” then first of all we need to think about the comprehensive intellectualization of various systems: energy, water supply and sanitation, buildings and structures, transport, government services. To do this, it is necessary to carry out a serious amount of work in the field of equipping the field level with tools for changes and data collection, developing IT and communication infrastructure, introducing intelligent software and hardware systems, and creating centralized city management platforms. Maxim Ageev, Director of the Global Directorate for Services in the Field of Energy and Sustainable Development Schneider Electric in Russia and the CIS |
Sustainable development at the municipal level
The principles of sustainable development at the local level are so far being implemented to one degree or another only in certain Russian cities. Maintaining relatively high levels of economic development in cities often occurs at the expense of the environment and the quality of the urban environment. The position of cities in the SD ranking is primarily determined by their economic development; the environmental factor, on the contrary, has a multidirectional impact: it reduces the position of leading cities and increases the position of outsider cities. Although there are examples of socially responsible large Russian companies. Leading companies with their large corporate projects play an important role in promoting sustainable development in Russian cities.
The development of the vast majority of large Russian cities today cannot be called balanced and sustainable. An analysis of the dynamics of the results of the ranking of sustainable development of cities in the Russian Federation over the past three years shows: the more balanced a city is in terms of economic, social and environmental progress, the more stable it develops during periods of economic “turbulence” or economic recession.
The main obstacles to the implementation of the principles of sustainable development in Russian cities: the difficulty of perceiving the topic of sustainable development, lack of experience and expertise and low qualifications of personnel in municipalities, short-term planning horizons. Thus, the Foundation for the Development of Single-Industry Towns highlights the training of municipal management teams as one of the three basic areas of activity for solving the problems of single-industry towns. The first training program for management teams was implemented by the Skolkovo Business School for the Foundation in 2016.
Of particular importance for Russian cities at present are the issues of managing sustainable development, namely the determination of a competent system of priorities and the establishment of effective interaction between various structural divisions of city administrations.
The principles of effective management suggest that in order to successfully manage cities, it is necessary to identify high-quality and measurable performance indicators. Currently, in the Russian Federation there is no generally accepted indicator of the performance of urban development in the field of sustainable development. The above-mentioned rating of sustainable development of Russian cities can become such a comprehensive and high-quality assessment tool.
International standards in the field of sustainable development
In 2014, the International Organization for Standardization developed two new quality standards for municipal management: ISO 18091 and ISO 37120.
Standard ISO 18091:2014 “Quality management systems. Guidelines for the application of ISO 9001:2008 in local self-government" reflects the view of administrative, economic and management activities in cities from the side of the administration. In particular, it allows you to build a system of priorities, identify problem areas, and tasks for the socio-economic development of cities. This standard uses 39 indicators and proposes a system for assessing four main areas of administration activity (management institutions, economic and social spheres and maintaining a high level of the environment).
Analysis of the effectiveness of municipal management according to the ISO 18091 standard also allows us to identify priority areas for the implementation of information technology solutions in various spheres of city life and develop “road maps” for the implementation of specific IT solutions, such as the creation of intelligent transport systems, security systems, tax and financial administration.
The ISO 37120:2014 standard “Sustainable development of human settlements - indicators of the performance of urban services and quality of life” offers a universal system of indicators for assessing the effectiveness and dynamics of the provision of municipal services and the quality of life in the city, consisting of one hundred indicators (main and auxiliary), covering 17 directions. This includes assessing the efficiency of energy, transport systems, communications, drainage, water supply, collection and disposal of solid household waste, etc. This standard provides high-quality tools for comparing the sustainability of development of different cities and assessing the effectiveness of city authorities on the part of all stakeholders (federal and regional authorities, business, population).
The implementation of both standards makes it possible to increase the transparency of the activities of city authorities, the level of trust in them from the population, to establish coordination and interaction between various departments of city administrations and ultimately contributes to the development of informed management decisions and improving the quality of life in cities.
The experience of holding international sporting events and summits encourages city leaders to implement international standards in the field of sustainable development. Thus, cities hosting the 2018 FIFA World Cup must follow the ISO 20121:2012 “Event Sustainability Management System” standard, the ISO 14001 environmental management standard, the national GOST R ISO 14001-2007 standard, as well as national and international standards in the field of “green building” .
"Smart Cities"
Planning and managing the sustainable development of a city now urgently needs not only new theoretical approaches, but also the development of appropriate methodology and the introduction of modern technologies. Over the past two decades, there has been a growing interest in the topic of “smart cities”. It is assumed that a “smart city” should be characterized by a highly efficient economy, management, a high level of quality of life, mobility, respect for the environment and a population that actively participates in the life of the city.
An important element of the functioning of “smart cities” is the active implementation of information technologies, namely, automated intelligent systems for managing and monitoring various aspects of city life: housing and communal services, urban traffic, public transport, tourism, public safety, education systems, healthcare, energy -, water supply and environmental situation in the city management system. The introduction and innovative use of information technologies (smart city intelligent systems) help improve the quality and efficiency of city management, reduce administrative costs and improve the level and quality of life of the population.
Recently, the “smart building” (“smart houses”) format, based on two different approaches, has become widespread in Europe. The first is the construction of a house with zero consumption, that is, a building that can cover its energy supply needs using its own capabilities, for example, using solar or wind power generation or low-grade heat from soil and water. The second approach is “positive” houses, which generate more energy than they need and release it into the grid. One of the striking examples of the “smart building” format is the building of the R&D center in Grenoble of the Schneider Electric company. We have also implemented elements of a “smart building” in the Federation Tower in Moscow City.
At the moment, there are a number of objective obstacles to the implementation of smart city projects in Russia. First of all, this is the high cost of implementing such initiatives. Transforming existing settlements into “smart cities” involves high costs for the complete modernization of engineering and utility systems and solving deep structural problems of the urban economy. For example, just one project to modernize the energy infrastructure in a city with a population of about 100 thousand people is estimated at more than 2 billion rubles, and a project to create an automated vehicle control system for the same city is valued at more than 500 million rubles. The amount of costs for such projects in larger cities can be judged by the fact that in Moscow 3.85 billion rubles were spent on a video surveillance system alone in 2015 alone.
Building new “smart cities” from scratch is even more expensive, but more efficient from a management point of view. Currently, only two similar projects are being implemented in Russia, these are the Skolkovo Innograd (Moscow) and Innopolis (Republic of Tatarstan). Several more “smart cities” in Russia are at the design stage, for example: the Smart City microdistrict in Ulyanovsk and Innograd in the satellite city of St. Petersburg “Yuzhny”. The project cost of constructing such cities reaches tens of billions of rubles. It should be noted that the cost of implementing the most famous foreign projects for the construction of “smart cities” from scratch is at least $20 billion.
In a number of Russian cities, attempts are being made - often quite successful - to introduce individual “smart services”. First of all, these are projects in the field of housing and communal services, transport management, the formation of unified city information systems of “electronic government” and “safe city”.
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I believe that sustainable development of cities is impossible without defining goals and priorities, developing investment, innovation and social strategies. Solving the problems facing cities and mitigating threats to their sustainable development requires an integrated approach, which determines the interest in the best international theoretical developments and practical examples in the field of strategic planning for urban development and management. Elena Dolgikh, General Director of SGM Agency |
For example, based on the solutions of the French company Schneider Electric, a base for an intelligent water supply system was built in the cities of Ivanovo and Irkutsk, including automation of facility management, first of all, a central control center from which the operating modes of the system can be remotely controlled. Such systems minimize the human factor and have good energy saving indicators, reducing accidents and losses in water supply networks. It should be noted that smart water supply solutions are always multi-level. The first level includes field level automation. Equipping water supply facilities and networks with all kinds of sensors and control devices. The second level is the data collection level, consisting of communication channels, networks, and server equipment, which collects and archives data received from facilities where the field automation level has been implemented. The third (upper) level is the direct intelligent control system, software for the operational control system of the water supply system in real time, hydraulic modeling systems, and decision support systems.
Unfortunately, in Russia there are still a number of barriers preventing the introduction of “smart technologies” in cities, namely, technological backwardness, low awareness and qualifications of civil servants and industry specialists of city administrations, and insufficient educational level of the population.
Russia does not yet have a universal system for assessing the effectiveness of the implementation of “smart services” and the potential for their further smartization, however, there is experience in individual scientific research in this area. Thus, specialists from the National Research University Higher School of Economics made an attempt to assess the potential of Russian regions on the issue of creating “smart cities” based on a comparison of the economic, innovative, human, technical, investment, budgetary, financial, urban planning and environmental potential of the largest cities.
Most of the cities whose smartization potential was assessed as high based on the study results are also among the leaders in the Rating of Sustainable Development of Russian Cities in recent years, compiled by the SGM Agency. The leaders included: Moscow, Yekaterinburg, some cities of the Moscow region, Khanty-Mansiysk and Yamalo-Nenets Autonomous Okrug.
To maximize the effectiveness of the implementation of “smart systems” in Russian cities, it is necessary to take into account the interests of all stakeholders (government bodies at all levels, the business community, the population, public and non-profit organizations, etc.). This is facilitated by such tools as conducting surveys, conferences and dialogues to discuss urban problems, creating permanent face-to-face or electronic communication platforms, and wide public and expert discussion of the results of each project.
The results of surveys of heads of the largest Russian cities show that on their part there is a high interest in studying the best practices in the field of SD both in Russia and abroad. This is evidenced by discussions at conferences on sustainable urban development, organized by the SGM agency over the past two years in regional centers of the Central Federal District.
Podprugin Maxim Olegovich, applicant for the Department of Economics, Organization and Production Management, East Siberian State University of Technology and Management, Ulan-Ude, Russia
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Annotation:
Sustainable development of the region is ensured, first of all, by a balance between the factors of socio-economic and natural-ecological development. The article discusses the main approaches to this concept within the framework of regional economics, clarifies the concept of sustainable development of the region, and describes the factors that influence the process of its sustainable development.
JEL classification:
Recently, a large number of specialists in the field of regional science, as well as leaders of territories, regions, and republics, agree on one thing - the subjects of the Russian Federation must be considered regions. In this regard, the most reasonable is the concept of “region”, which is introduced by I.V. Arzhenovsky. He defines a region as “a part of the country’s territory that has been allocated in the process of social division of labor, which is characterized by specialization in the production of goods and services, community and specific nature of the reproduction process in relation to other territories; the complexity and integrity of the economy, the presence of management bodies that ensure the solution of the problems facing the region.”
A similar point of view is also shared by B.C. Bilchak and V.F. Zakharov, who defined the region as a socio-economic spatial integrity, characterized by the structure of production of all forms of ownership, the concentration of the population, jobs, and spiritual life of a person per unit of space and time, which has local governing bodies of the territory (region, territory, republic).
Thus, a region is a territory within the administrative boundaries of a subject of the federation, characterized by the following fundamental features: complexity, integrity, specialization and controllability, that is, the presence of political and administrative governing bodies.
The concept of “regional development”
Regional development refers to any progressive change, primarily in the economic sphere. This change can be quantitative, then they talk about economic growth. It can be qualitative, and then they talk about structural changes in the content of development. Along with economic characteristics, social parameters of development are considered. Moreover, social characteristics are full-fledged indicators when assessing the degree of development of a region.
The main goal of regional economic development is to improve the quality of life of the population. The development goals of the region are to increase income, improve education, nutrition and health care, reduce poverty, improve the environment, equal opportunities, expand personal freedom, enrich cultural life, etc.
It should be noted that a number of researchers justify that the implementation of sustainable development should be carried out in the regions, since they are characterized by complexity, integrity, specialization and controllability; are historically the most stable territorial entities formed during the period of existence; have the most optimal structure for positioning in the foreign economic space; have significant experience in combining the practice of stimulating market transformations in territories with the policy of regulating these processes.
The concept of “sustainable development of the region”
The paradigm of sustainable development, which presupposes a dynamic process of consistent positive changes that ensure a balance of economic, social and environmental aspects, should underlie the formation of approaches to resolving the problems of territorial entities. This is especially true today, when the center of gravity of economic reforms is shifting to the regional level and their role is strengthening in the implementation of the state’s economic policy.
The priority approach in implementing reforms at the regional level should be the conviction that one should abandon the identification of the development of a territory with its economic development. A region cannot be considered sustainably developing only on the basis of improved economic indicators. Sustainable development should be aimed at achieving a high quality of life for the population, with positive dynamics of a set of indicators.
P.M. Ivanov understands the sustainability of the region’s development as the viability of the system. In this case, the viability of a system is defined as the ability to live and develop, that is, a territory that has the property of sustainability is capable of survival and development in a specific environment. The sustainability of regional development determines the ability of the region to maintain and develop the values of the necessary parameters of the quality of life of the population within the safety threshold or above it in the event of fluctuations in external and internal influences (socio-political, socio-economic, man-made, natural-climatic and other nature) that threaten a decline in quality life of the population.
When classifying regions in Russia according to the level and pace of development, they usually distinguish: developing, problematic and depressed.
The sustainability of regional economic development as a specific quality is achieved as a result of overcoming many obstacles and is not a given for a long period of time. In a crisis situation, sustainability is survival and subsequent achievement of a progressive process in the main areas of life. So, O.K. Tsapievak considers the main forms of stability of the regional system:
− unsustainable development;
− hyperstability;
− global sustainability;
− sustainable development of the regional system is approaching;
− stable system.
The peculiarities of Russia (large scale, regional diversity, state of transition economy) require more active, compared with usual world practice, government activity to eliminate imbalances in the economic space, solve complex regional problems, and create conditions for sustainable development of regions.
The transition to a new economic system required a deep reform of state regulation of regional development. The main directions of reform are determined by such processes as replacing administrative-command management with market mechanisms, changing the ownership structure, as well as improving the federal system and expanding the economic rights of regions.
In Fig. the main factors influencing the formation of sustainable development of the region in modern conditions are presented.
Main factors of sustainable development of the region
The figure shows that the main factors can be divided into 7 main blocks:
1) environmental factors:
− natural and climatic conditions;
− technogenic pollution. Man-made pollution should include not only pollution in the region, but also transboundary pollution (air, water, etc.), and this applies not only to other states, but also to other regions of the country. For example, the Baikal pulp and paper mill is located in the Irkutsk region, but it pollutes the waters of Lake Baikal, which also belongs to Buryatia;
2) financial and economic factors:
− stability of the region’s budget, independence from subsidies and transfers from the federal budget;
− participation of the region in federal target programs, priority national projects, development strategies of macroregions;
− activities of credit institutions, insurance companies, etc.;
− impact of economic instability;
3) industrial production factors:
− presence of a powerful production base;
− presence of mineral resources in the region;
− dependence of the region on monopolies (oil, gas monopolies, electric and heat power enterprises, railways, telecommunications companies, etc.);
4) presence of developed infrastructure in the region:
− presence and condition of the region’s road network, railways, airfields, river and sea ports;
− communications, telecommunications, Internet accessibility;
− market infrastructure;
5) food security of the region:
− state of agriculture in the region;
− state of the trading network;
− presence and development of processing enterprises;
− activities of vertically integrated complexes in the agro-industrial complex;
6) regional marketing:
− recognition of the region in the federal media;
− brands of the region;
− national, regional holidays, celebrations;
7) social sphere, culture, social activities:
− developed social sphere;
− scientific, educational institutions;
− availability of qualified labor resources and jobs;
− cultural and art institutions, events, etc.;
− activities of public organizations (non-profit, environmental, student, trade unions, etc.);
− interethnic, interreligious relations.
The priority direction of the new stage of economic changes is the innovative modernization of the economies of Russian regions. In achieving this goal, regional authorities have an important role to play; in this regard, the priorities of their activities must change. At the previous stage, their main task was to create conditions for the development of entrepreneurial activity in order to attract investment. Conditions are changing, and today the problems of focusing on creating conditions for sustainable development of the region, intensifying innovation activities, improving the structure of the region’s economy, and increasing the competitiveness of products and services are coming to the fore.
Conclusion
Thus, the sustainable development of the region is a complex process leading to solving the problems of the population at the regional level, to improving the living conditions of the region’s residents by achieving a balance of socio-economic and environmental development, carried out on the basis of the rational use of the entire resource potential of the region, including the geographical features of the region , as well as the characteristics of the economy, infrastructure, industry and potential opportunities of individual cities belonging to this region. 3. Golubetskaya N.P. Indicative approaches to determining the priority of investments in entrepreneurial activity in the North-West region of Russia / N.P. Golubetskaya, O.N. Makarov, V.I. Bovkun // Economy of the North-West: problems and development prospects. – 2005. – No. 4 (26). – P. 53−65.
4. Maiburov I. Sustainable development as a co-evolutionary process // Society and Economics. – 2004. – No. 4. – P. 124−143.
5. Pchelintsev O.S. Regulation of the reproductive potential of the territory as the basis of regional policy / O.S. Pchelintsev, V.Ya. Lyubovny, A.B. Voyakina // Problems of forecasting. – 2000. – No. 5. – P. 62−68.
6. Tatarkin A.I. Modeling sustainable development as a condition for increasing the economic security of the territory / A.I. Tatarkin, D.S. Lvov, A.A. Kuklin and others - Ekaterinburg: Ural Publishing House. University, 1999. – 276 p.
7. Uskova T.V. Sustainable development of the region: from conceptual foundations to practical results. / T.V. Uskova, S.S. Kopasova. // Economic and social changes in the region: facts, trends, forecast / All-Russian Scientific Center CEMI RAS. –2008. – Vol. 43. – pp. 21−31.
8. Ivanov P.M. Algebraic modeling of complex systems. – M.: Nauka, 1996. – 185 p.
9. Tsapieva O.K. Economic problems of regions and industry complexes // Problems of modern economics. – 2010. – No. 2 (34). – P. 46−49.
10. Granberg A.G. Fundamentals of regional economics: a textbook for universities. – M.: Higher School of Economics, 2007. – 495 p.
11. Sysoeva V.N. Sustainable development of the region based on the formation of innovation clusters. – Author's abstract... cand. econ. Sci. – Tambov, 2007. – 24 p.
Currently, the world economy is going through a complex process - globalization. It has already resulted in enormous transformations. They affected almost all sectors of the national economies of most countries. Moreover, the ongoing changes are in many cases spontaneous, difficult to predict in advance. This sometimes has a negative impact on entire individual countries, ultimately causing irreparable losses. In this regard, scientists from many countries have been tasked with studying the internal processes of globalization, which directly depend on the development of each subject of the world market.
Globalization process
The modern general movement cannot be placed within the framework of pre-existing theoretical schemes based on historical events that have already occurred. The systems previously used were based on the theory of the unlimited development of humanity by time and space. Globalization and its basic laws have clearly shown the fallacy of this statement: sustainable development and functioning of the world economy is limited by finite resources and life processes of humanity. As a result, a new concept of global development emerged, consisting of a variety of strategies, with limited conditions aimed at solving global problems. The fight against poverty and the achievement of general welfare of the planet's population are some of the most important tasks of globalization, which can only be achieved if the income of the population grows and the overall productivity of labor increases in each individual state. At the same time, in the process of achieving set goals, a huge role is played by the totality of all external and internal factors, such as the state of the environment and relationships in human society. Only with the correct interaction of people in society and society with the environment will it be possible to significantly increase the parameters of overall development in quantitative and qualitative indicators.
Russia in the modern economic system
With the collapse of the USSR and the transition to market relations, the Russian economy experienced a huge shock, from which it has not fully recovered to this day. Today, it is faced with the task of choosing a strategy for a long-term period of time, depending on which its future place in the world will be determined. It is very important to give a correct assessment of all the country’s capabilities and determine the starting position from which to start. At the same time, the role and place of Russia should be assessed from the point of view of the sustainability of its economy, which in turn should strive to minimize costs based on the irreplaceability of some natural resources and their replacement with renewable or less rare ones. An important factor in this regard is to preserve the environment in an unchanged condition. In modern conditions, when in most industries production equipment has long been obsolete, a general change in the domestic economy is only possible with the introduction of innovative technologies. The use of new methods and schemes will improve the qualitative and quantitative indicators of manufactured products. This will ultimately lead to an increase in the competitive ability of the state. This condition is one of the principles determining the sustainable development of Russian regions in the process of world globalization. Therefore, all changes that occur require constant careful study, on the basis of which their further adjustments will be made. The social fund for regional development is of great importance in this matter. In addition to the tasks of improving the economic activity of the territories, the activity of the association is aimed at maintaining the proper level of public protection of citizens. The Social Fund for Regional Development places among the issues of paramount importance the equal distribution of government power and care throughout all territories of the country.
Globalization in modern literature
Modern economic theory has devoted a huge amount of work. However, in the scientific world there is still no clear concept of globalization; each of the authors dealing with this topic brings something of their own, investing their own understanding of this process. At the same time, most scientists identify several systems included in the process of globalization. These include, in particular, the financial sector, the production system and the information technology market. Researchers also recognize the impact that the globalization process has on the whole. Thus, due to the computerization of society, the boundaries of financial markets are erased, it becomes easier to move capital, and the economic division of states becomes conditional.
Problems of globalization
To characterize the process of globalization more fully, it is necessary to study all the forms in which it manifests itself. To do this, at the first stage it is necessary to classify general problems, that is, to distribute specific problems into separate groups, which will later form a complex system - a regional development program. With this approach to classification, the task of theoretical understanding and finding solutions is easier to solve. However, dividing problems into groups is not the ultimate goal. This is just one of the most important parts in a comprehensive approach to problem solving. This method allows us to identify the relevance of tasks, highlight the main connections, establish ways of interaction and identify global issues that should be studied first. In addition, by classifying problems and taking into account mutual influence, a final sequence of practical actions is formed to solve the problems. A correctly carried out classification breaks the general problem into stages, as a result of which the studies of each stage become more detailed and correct. This way the factors of development of the region become more clearly visible.
Modern literature also does not provide unambiguous recommendations for structuring the overall set of problems into groups. There are many different techniques that describe this process. As a result, the assignment of any problem to a specific group is quite conditional. In this regard, this method of dividing into groups is considered not as the only correct one, but as one of the few, the results of which are worth paying close attention to. It helps to better understand the nature of global problems and establish their internal relationships with each other. This need to break the general into subgroups is due primarily to the limitations of human capabilities, due to which people are not able to immediately cope with an entire universal task.
Subjects of the economic system
Sustainability is primarily characterized by the relationship between production and capital. At the same time, a feature of management is the expansion of its influence on more and more new entities every year. In this regard, there is a constant increase in trade relations between market entities in the field of commodity relations and services. The structure of the region's economy includes several aspects. These, in particular, include:
Strengthening interaction between market entities, significantly outpacing the increase in production;
Creation of international corporations;
Constant migration of capital from the economy of one entity to the economy of another with currency conversion;
Redistribution of commodity and financial flows between participants in market relations.
A single economic world system has a direct impact on the number of groups within one region, each of which has its own impact on global GDP. Ultimately, most of the world's trade occurs in the provision of services and the exchange of products (raw materials) between industries. A clear example of this is the connections between particularly developed market entities, which account for over 60% of all global trade turnover. Moreover, the population of these subjects constitutes less than 20% of the total population of the Earth. A prominent representative is the EU, in which up to 70% of all trade turnover is accounted for by trade between members of the union.
Corporations and credit organizations
The main direction of the modern economy is the general globalization of capital. Under these conditions, each state participating in the global economic system has to work with transnational corporations, which in most cases act as equal partners. In this case, enterprises are able to have a significant impact on the global economy as a whole. In this regard, national governments at the highest level are forced to enter into various economic agreements with them. In the current situation, capital received a powerful impetus for development. The need began to arise to create special trading platforms where creditor banks located in one country and working in the money of that country could issue loans or deposits not in national currency. Moreover, such operations no longer take place within the framework of national legislation. The following situation arises in the lending market: not limited by national laws, such markets acquire due to the unregulated level of interest rates. This ultimately led to a significant increase in the credit resources of the world economy and significantly simplified access to them by the end consumer. This, in turn, had a significant impact on social development.
Innovative development of the region
In our country, as noted above, the main priority for improving economic activity is the introduction of new developments in all areas of activity of the population. However, this cannot be achieved by direct instructions from above. In this regard, one of the main roles in solving this problem is assigned to local authorities, who in turn must set appropriate priorities in their immediate activities. At the first stage, the region’s development strategy includes creating favorable conditions in the territories under their control for the development of production and business activities, and providing comfortable conditions for investment. It is important to respond to ongoing general changes in a timely manner. It is also necessary to regularly edit the assigned tasks aimed at the sustainable development of the region, ways and methods of achieving them. The natural features of the territory play an important role in the process. They are taken into account by researchers assessing Russia's development prospects. For better use of the territory’s potential, the state is involved in the process, and legislative acts are established at the state level. Participation in this case is carried out by attracting own capital and human resources to the most interesting projects from an economic point of view. When considering Russia's development prospects, it is important to find ways to support knowledge-intensive and high-tech production. The solution to these issues is considered one of the most important in the modern world. Only through an integrated approach to management on the part of the state and local authorities is high-quality and competitive economic development of Russia possible. At the same time, it is necessary to introduce new advanced approaches both to already functioning industries and to new ones being introduced on the territory of the subject. In most cases, the competitiveness and sustainable development of the region depends on the ability to quickly implement modern technologies.
Associations of market participants within a subject
When a technological leap is achieved in each individual market entity, the ability to unite and teamwork of all organizations and enterprises located in the region takes center stage. Only if all branches of production are combined into a single technological process is it possible to create a high-quality competitive product. At the same time, such an association must be legally recognized by regional (state) authorities. One type of this recognition is a regional development fund approved at the state level. It includes the interests of all participants: authorities, financial organizations, industrial enterprises and other market participants of the subject. In this case, the efficiency of final production will directly depend on the competitiveness of products on a high-tech trading platform, the participants of which will not be individual enterprises, but entire scientific complexes and associations. In this case, all conditions will be created for the development and introduction of new products: financial support and production base, which will ultimately lead to strengthening the position of a particular territory and improve the economic development of Russia as a whole. The participants of the association are connected with each other in various ways. They assume a number of obligations, jointly coordinate their actions in the financial sector, in the field of investment marketing and a number of other areas of business. The region does not go unnoticed either. Participation in this union is voluntary, the main task of each participant is to obtain maximum profit. The creation and functioning of such associations within a business entity allows the region to painlessly move to a model that involves the sustainable development of the region, based on innovations introduced into various types of processes.
Market competition
Competition is one of the key concepts when describing market relations. Only in conditions of free trade competition can the system develop painlessly. Competition is a universal tool in determining the number of market participants, supply volumes and prices. The main goal of any enterprise is to obtain maximum profit. To do this, in conditions of open competition, each individual manufacturer needs to surpass its rivals in some way. In this case, “competition” is a key element of the market mechanism; it ensures the most beneficial interaction in the producer-consumer sphere, as well as in the process of using trading capital. In competitive production, every entrepreneur cares not only about reducing costs, but also about expanding and improving the quality of product output. All this is aimed at improving the characteristics of the product, reducing its price, and therefore gaining advantages over other manufacturers. In this case, competition acts as a motivating element in economic progress. As a result, new technologies are being introduced, the range of goods and services is expanding, prices are falling and quality is improving.
Functions of competition
The main functions of competition are:
The focus of each manufacturer on the needs of the end consumer (in the case when the enterprise becomes uncompetitive, its goods do not find the final buyer and production activities stop);
Natural selection among producers (in this case, a company with more expensive or low-quality products leaves the market);
Impact on production and increase in its efficiency;
Influence on the redistribution of initial resources;
Regulation of price levels in the market of goods and services.
Not the least role in competition in every industrial sector is played by the time during which the process of establishing production takes place. Conventionally, it can be divided into four stages:
1. Introduction of new products. At this stage, there are small volumes of goods sold and a relatively high price compared to analogues (if any).
2. Growth stage. There is an increase in production volumes due to increased demand, while the high price level remains.
3. Maturity stage. The volume of production reaches its peak; subsequently, a drop in demand occurs due to an oversupply of goods on the market; as a result of competition, prices fall.
4. Obsolescence stage. Demand for products reaches its minimum, production volumes are reduced, the level of competition tends to zero, more functional analogues appear on the market, and the bulk of products are discontinued.
The Ministry of Economy of the Republic of Tatarstan informs about the beginning of the autumn selection stage of the Competition “Annual Public Award “Regions - Sustainable Development”, organized by PJSC Sberbank of Russia, PJSC VTB Bank and JSC Rosselkhozbank with the support of the Government of the Russian Federation.
The competition is a “one-stop shop” model for the selection, preparation for implementation and implementation of investment projects, providing special conditions for lending and investment co-financing.
Organizing Committee of the Competition"Annual public award
Methodological recommendations for the selection and consideration of regional projects of participants in the Competition "Regions - sustainable development"(hereinafter referred to as the Competition)2018
- OBJECTIVES OF THE COMPETITION
- Selection of the best projects in the real sector of the economy, advanced technologies and management solutions;
- Public and state recognition of best practices in the sustainable development of a country, a constituent entity of the Russian Federation, a municipal entity and its subsequent dissemination in the territory of the Russian Federation;
- Development of public-private partnerships;
- Drawing attention to the investment potential of the regions of the Russian Federation;
- Drawing attention to problem areas that are lagging behind in terms of their development;
- Providing objective information to the leadership of the Russian Federation, constituent entities of the Russian Federation, municipalities and industry enterprises about the real situation surrounding the implementation of investment projects;
- Forming a positive image of the housing and communal services, water and waste management sectors, and establishing a strong consciousness among citizens that the situation in these sectors can be changed.
- PURPOSE OF THE COMPETITION
- PROCEDURE FOR SELECTION AND PRESENTATION OF PROJECTS FOR PARTICIPATION IN THE COMPETITION
- Projects that meet the following criteria are eligible to participate in the Competition:
- The project must be implemented on the territory of the Russian Federation and contribute to the achievement of positive social changes in society; The project must be aimed at solving existing economic and social problems; improving the investment climate of the subject; the emergence of long-term, sustainable positive socio-economic changes; improving the quality of life of the region's population. The project must contain a certain degree of novelty in the approach to solving social problems or an innovative component; The project must have the potential to be replicated in other regions of the Russian Federation; The project should be aimed at creating financially sustainable business models that can operate independently upon completion of financing.; the project budget must be provided with at least 10% of the Applicant’s own funds.
- Metallurgy; Chemical complex; Pharmaceutical industry; Timber industry complex; Light industry; Construction complex; Transport complex; Trade and consumer services; Hotels; Agriculture; Industries supplying material resources for agriculture (tractor and agricultural engineering, production of fertilizers and chemicals for agriculture); Industries processing agricultural products (food industry, primary processing of agricultural raw materials for light industry, for example, cotton gin plants); Infrastructure activities serving agriculture (procurement, transportation, storage and trade of agricultural products, etc.). Fuel and energy complex; Recreation and entertainment, culture and sportsand etc.
- carrying out commercial activities of non-profit organizations that are not related to the statutory activities of the organization and do not have a direct social effect; financing the activities of other organizations in terms of replenishing their loan portfolios and creating credit systems and/or other financing of other projects/organizations; conducting scientific research; development of various techniques; grantmaking (providing grants, donations) to other organizations and (or) individuals; writing, publishing manuscripts in a printing house (as the main activity of the project); publishing magazines and newspapers (as the main business idea of the project); carrying out political and religious activities, supporting ethnic groups, etc.; carrying out activities that may lead to discrimination based on gender, race, religion, age and sexual orientation, as well as other activities contrary to the Constitution of the Russian Federation.
- In the period from August 1 to August 15 and from February 1 to February 15 of the current year, the employee of the Administration of the constituent entity of the Russian Federation responsible for interaction with the Organizing Committee of the Competition determines the list of sectoral executive authorities and interested structures formed in the constituent entity of the Russian Federation involved in attracting investments, and is submitted to Organizing Committee of the Competition in Form F-1/K, as well as a list of municipalities of a constituent entity of the Russian Federation in Form F-2/K:
Form F-2/KScertificate of responsible employees of Municipal entities of the Subject of the Russian Federation
Responsible for interaction with the Organizing Committee of the Competition from ________ (subject of the Russian Federation)
Signature_____________________ signature decryption
- The Organizing Committee of the Competition, within a period not exceeding 5 (five) working days from the date of receipt of the certificate submitted in accordance with Form F-1/K and Form F-2/K, defined in paragraph 3.4.1., sends information and reference materials to addresses of performers determined by Form F-1/K and Form F-2/K. The Organizing Committee of the Competition, in cooperation with the employee of the Administration of the subject of the Federation responsible for interaction with the Organizing Committee of the Competition, determines the date, time and topic of the webinar with the performers determined by Form F-1/K and Form F-2/K, taking into account the timing no later than than September 15 for the autumn and March 30 for the spring stages of selection of investment projects. The executors specified in Form F-1/K and Form F-2/K, defined in paragraph 3.4.1., select investment projects and send them in the period from September 1 to October 15 and from March 1 to May 15 of the current year to the responsible for interaction with the Organizing Committee of the Competition, an employee of the Administration of the subject of the federation will submit applications for industry projects with copies of the Participants’ applications attached in the form given in clause 3.5. The executive authority of the subject of the federation forms and sends by e-mail to the Organizing Committee of the Competition during the period from September 15 to October 30 and from March 15 to May 30 of the current year a generalized regional application in the form:
Chairman of the Government of _____________ (subject of the Russian Federation)
Signature ____________________________signature decryption
Attached with copies of the Participants' applications in the following form:
Application for participation in the Competition“Annual public award “Regions – sustainable development” Attention! All fields are requiredcontinuation
***Below you must indicate the name of the property and total area
37. Contact person (for filling out this form)Head of the company _______________________ signature________________
Notes: The applications established by the Competition Regulations and this Application are not sent from the subject of the federation. The application in the original with the applications and documents established by the Competition Regulations is sent to the Organizing Committee of the Competition by the Applicant organization independently within the time limits established by the Competition Regulations.- Within the terms established by the Regulations for consideration of competitive applications, the Organizing Committee of the Competition generates and sends to the address of the subject of the federation a certificate of consideration of regional applications in the following form:
Signature ___________________ transcript
- PROCEDURE FOR REVIEWING DOCUMENTS AT THE STAGE OF DECISION MAKING BY THE BANK IN THE ORDER OF PERFORMING THE FUNCTIONS OF AN EXTERNAL FINANCE EXPERT
- Selection of regional projects that are promising for investment;
- Active participation of the Bank's territorial divisions as an external expert of the Finance Competition in the process of preparation for implementation and as a Lender in the implementation of investment projects;
- Fixing the timing of consideration of applications and documents at the stages of making preliminary and final decisions;
- Close and productive interaction with the working bodies of the Competition;
- Studying the real state of affairs in the application of state support funds within the framework of existing federal targeted programs and regional development programs in the implementation of regional infrastructure projects, active positive influence on the process through participation in the implementation of investment agreements as a Party to the agreement, a member of the coordinating council for the implementation of the investment project.
Financial documents
A copy of the enterprise's balance sheet for the last 2 annual reporting dates, including balance sheet, profit and loss statement, statement of changes in equity, cash flow statement, statement of intended use of funds, notes to the balance sheet and profit and loss statement, drawn up in accordance with the requirements of the current legislation, with a mark of acceptance by the tax inspectorate or a receipt of acceptance of documents by the tax inspectorate (when submitting reports electronically) (for organizations using the regular taxation system)
4.3.3. A specialized division of the Bank, authorized by the head, registers received documents, distributes them for consideration to regional divisions of the Bank (regional representatives of the External Expert of the Competition) for studying and issuing a preliminary conclusion on projects, and organizes a system for monitoring execution. The personal composition of regional representatives of the External Expert of the Finance Competition is determined by the Bank.4.3.4. The regional representative of the external expert of the Competition in Finance acts on behalf of the external expert of the Competition in Finance, as follows: 4.3.4.1. Comments from the regional representative of the external expert of the Competition in Finance on the completeness and quality of documents submitted for consideration are generated and sent electronically to the Organizing Committee of the Competition at [email protected] within no later than 5 (five) working days from the date of receipt of the documents established by the list of paragraphs. 4.3.2. A copy of the letter with comments is sent to the Specialized Division of the Bank.4.3.4.2. If it is necessary to provide additional information on a regional project, a representative of the external expert of the Competition in Finance requests it from the Organizing Committee of the Competition by sending a written request in electronic form to [email protected] A copy of the request is sent to the Specialized Division of the Bank.4.3.4.3. The period for preparing the expert opinion of the regional representative of the external expert of the Finance Competition is extended by the number of working days spent waiting for documents upon request. 4.3.4.4. The study of the project and the conclusion of the regional representative of the external expert of the Competition on finance and/or the development of proposals for the provision of additional information is carried out within a period of no more than 21 (twenty-one) calendar days. 4.3.4.5. Within the established time frame, the regional representative of the external expert of the Competition in finance sends to the Organizing Committee of the Competition to [email protected], and a copy to the Specialized Division of the Bank, an expert opinion approved by the head of the territorial division of the Bank in the form: Preliminary conditions for financing an investment project with state support / state participation based on a project financing mechanism(Name of the territorial bank) As part of the selection of projects implemented with government support, I considered the possibility of lending to the following project:
Name of the project - "_______________________".
Initiator of the project - "_______________".
Brief information about the project:
*If the cost of the project decreases after an examination of the estimate, the amount of investment of each participant is reduced proportionally. Participation shares remain unchanged.
We suggest considering the following indicative lending conditions.
Positive and negative factors of the project:Based on these risks, we believe that financing of this project is possible if the following conditions are met:
Expert_________________________ /____________________/
"_____"___________20___ 4.3.4.6. In case of a negative conclusion on the project, the regional representative of the external expert of the Competition in finance sends it to the Organizing Committee of the Competition to [email protected], and a copy to the Specialized Division of the Bank, a reasoned refusal agreed upon by the head of the territorial division of the Bank with a detailed indication of the reasons, as well as recommendations to the project applicant for reworking the project in order to obtain the possibility of its implementation using debt financing funds provided for by the Bank’s regulations.- Re-consideration of a project that has received a negative opinion from the regional representative of the external expert of the Competition in Finance is allowed only if it is revised in accordance with the recommendations issued by the regional representative of the external expert of the Competition in Finance. A conclusion upon re-examination of the project is issued in accordance with clause 5.3.4.1. - 5.3.4.6. Decision of the collegial body of the Bank:
- INVESTMENT AGREEMENT
6. ADDRESS OF THE ORGANIZING COMMITTEE OF THE ANNUAL PUBLIC PRIZE
"Regions - sustainable development"
Postal address: Russia, 115114, Moscow, Derbenevskaya embankment, 11 Tel.: 8 - 800 - 775 - 10 - 73 www.infra-konkurs.ru E-mail: [email protected]
Indicative conditions will be determined in accordance with the Decision of the Bank’s body for providing loans and investments “General conditions for financing priority investment projects received from state executive authorities of the Russian Federation for implementation with state support”
