Targeting ESG Initiatives in the Formation of Financial Mechanisms for the Development of Bordering Territories of Kyrgyzstan

Abstract

This research focuses on the formation of financial mechanisms for the development of regions, in particular, border areas. Due to the current conditions associated with the strengthening of integration processes, the problems of socio-economic development of border territories are of particular interest to researchers-economists, where special attention is paid to the issues of regional labor resources as a significant factor in the sustainable economic development of any country. In the industrial economy, the volume of factors involved in the production was measured by the amount of production means, labor objects, and labor itself. In turn, nowadays, the measures are the mechanisms that regulate labor relations, considering the protection of workers’ rights, and aim to ensure the financial and economic stability of regions. Due to the existing imbalance between the production and technological parameters of jobs and the existing structure of labor resources, it seems important to develop policy directions that would help achieve consistency between the area of employment in the context of sectors of the economy and in the context of regions. The socio-economic transformations occurring in Kyrgyzstan, particularly in its border areas, are closely related to the pace of migration processes, which show a relatively high activity compared to the more prosperous areas close to the country center. Therefore, targeted scientific research that examines issues related to reproduction, formation, and rational use of the able-bodied population, the labor market, especially in depressed areas, and their interaction with appropriate financial policies and financial and credit mechanisms and instruments are undoubtedly relevant and timely. The authors attempted to recommend ESG initiatives (approximate model) for the formation of financial mechanisms for the development of border territories of Kyrgyzstan, designed for 10–15 years, the efficiency of which determines the sustainable development of the national economy and the country.