The strategic directions of modernization of the mechanism for managing the regional economy

• Published in: Modern economics Vol. 23; no. 1; pp. 148 - 154
• Main Author: Nazarova, Liudmyla
• Format: Journal Article
• Language: English
• Published: 27.10.2020
• ISSN: 2521-6392; 2521-6392
• DOI: 10.31521/modecon.V23(2020)-24

Introduction. The article highlights the necessity to develop the main strategic directions of modernization of the mechanism for managing the regional economy. The mechanism aims to provide the relevant evaluation of the social and economic policy efficiency at the local and national levels, as well as the efficiency of the development and implementation of the regional economic tools. The author emphasizes the necessity to not only improve, but also differentiate the mechanism to manage the regional economy in order to differentiate the social and economic development. Considering constantly changing market conditions, the article determines the necessity to review the functions of regional social and economic systems within the system of the economic environment functioning, where the decisions of their stable development take place. Purpose. The purpose of the article is to determine the main strategic directions of modernization of the mechanism for managing the regional economy and the main issues of the managerial regional economic system improvement. Results. The main strategic directions of modernization of the mechanism to manage the regional economy have been researched. The main issues of the managerial regional economic system improvement have been determined. Taking into account the structured process approach, the mechanism for managing the regional economy has been developed. The development of the managerial regional economic system during the USSR period has been assessed, the main issues have been determined. The main factors to transform the regional economic mechanism in current reality have been studied. The enlarged scheme to assess the efficiency of social and economic regional development has been designed. The research findings reveal that the development of key parameters of modernization of the managerial mechanism based on the differentiation approach is important in conditions of independent functioning of territories and their decentralization. Conclusions. The author concludes that the improvement of the managerial regional economic system in conditions of their independence considers its permanent monitoring of the efficiency to manage the development of social and economic regions. The choice of differentiated managerial mechanism relevant for the regional development should be based on the data provided by the monitoring. Such approach will allow to decrease in the differentiation level and foster the increase in responsibility of regional authorities related to functioning of the territories managed.