Methodological problems of formation of a new system of regional governance

Abstract

The competitiveness of any social and production structure is provided by resources and efficient practices of their management. This article deals with the improvement in the management of regional development. The present process of establishing a new system of regional governance is going on in the absence of a clear understanding of the model of management. Thus, the earlier principles, which can be defined as “the state has no place in the economy” and “every person is the architect of his or her own happiness” have not provided a breakthrough in the economy and have exacerbated social problems. These principles do not seem conclusive, and they were replaced by new ones, such as the principle of public-private partnership, principle of priority of investments in human capital and the strategic direction of the development of the economy (innovation projects, health care, and education).

The specificity of the control over a region is that economic and social processes in its territory are determined by governmental decisions at different levels—the government, enterprise, region, and the resident population. In the generalized form, the governance functions at the regional level can be defined as a system to ensure the effective use of its resource potential and competitive advantages in the interests of all parties involved in the support of its reproduction.

The basic directions in building a new system of regional management are the following:

• Improving planning and forecasting as a basis for management decisions

• Budgetary planning oriented to results; -Monitoring the implementation of planning and forecasting documents

• Development of indicators to assess the effectiveness of management decisions.

The paper provides a critical analysis of the methods for the assessment of the efficiency of federal subjects’ executive bodies developed in accordance with the corresponding ordinance of the government.