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Strategic priorities in the development of the region

Current trends in the development of the world economic system demand from the Republic of Kazakhstan the creation of effective high-competitive national economic system. Therefore, now the Republic of Kazakhstan has headed for further integration into world economy and likewise focused on the maximum use of competitive advantages and the reduction of negative influence in the international division of labor.

Further economic growth of the Republic of Kazakhstan is defined by the involvement degree of its economy into the world economy. That, in turn, depends on, to what extent and how the industrial enterprises, which acquired the right to an access to foreign markets, participate in the world economic relations. The last assumes the analysis and an assessment of the whole complex of problems connected with the development of foreign economic ties.

Participation of regions in the world economic and interregional commercial relations is proved on the basis of the theories developed for open national economy. The application of theoretical approaches in the sphere of the international economic relations and open regional economy makes it possible for the region to take participation in the international and interregional division of labor.

Strategy of the regional development is a way, a mean of achievement and a target; likewise it is the management form of economic activity and the territorial organization (life) of society.

The right choice of strategy helps to concentrate efforts and resources on the potential realization of economic development and by that to provide the effective development of the region in the market conditions. There are three stages in the course of the strategy progress: firstly, the place, the role and functions of the region in new managing conditions are formed, secondly, the strategic priorities of the region development in the transformable economy are defined and thirdly, economic, financial and organizational mechanisms of the strategy realization are established in the new institutional environment. Furthermore, the strategy development of the separate region has to fit into the strategy development of the country.

At the moment, it is sometimes difficult to define the strategy of the desired regional progress and the development of the social and economic mechanism and the transition toward it. Therefore, it is necessary to consider the divergence of the basic factors in regional development:

  • modern market conjuncture and at the same time the natural and resource capacity of the region preserve the raw stock orientation of economy in the area;
  • geoeconomic situation hinders the preservation of raw stock specialization;
  • ecological factor demands to change the development of economy towards more sparing environmental management mode;
  • human potential of the region, as well as technical and economic level of the manufacture at modern specialization are doomed to

This approach to the structure formation of the regional economy integrates methods of system theory, a process in transformation of the technological approaches and likewise principles of a sustainable development.

The usage of these theories positions, and, first of all system theory, is caused by the change of a paradigm in the orientation of the region development. The requirement of system representation in the region is determined by the increased interrelation of economic, social, ecological and at the same time organizational and administrative aspects at this level.

Research of features in dynamism, flexibility and multicriteriality, is most advanced in relation to the production systems; however it has no small significance for the region and their broader interpretation is possible and necessary. At the same time, the region, as more difficult system, has the features that differ from the production systems. They are self-development and self-government and sustainable development.

The establishment of priorities in structural policy requires the knowledge of objective tendencies of technical and economic development and likewise the results based on the theory of the gradual transformation in the technological approaches.

Technological approach is "a steady self-replicating integrity, a conglomerate of interconnected productions which are united by means of stereotyped technological chains",

Technological approach covers the closed reproduction cycle - from the production of natural resources and manpower development to non-productive consumption. It is characterized by the life cycle, the domination period and a core period. Life cycle of each technological structure covers about a century and includes four phases - a formation, growth, maturity and decline - with two pulsations.

The small pulsation corresponds to a formation phase in adverse conditions of domination during the previous approach. The big pulsation comes after reconstruction of economy and replacement of the dominating approaches; it is characterized by high rates of economic growth. In modern conditions its length makes about two decades and its establishment is followed by public consumption of a new type. The period of domination covers 50 years during where the considered way has the greatest specific weight in economy compared to the other ways.

The core of technological approach is formed by the new most quickly developing branches and productions giving an impulse for the development of the conjugate productions.

General point for applied theories is the consideration of control object as a whole, assuming its evolution. These theories result in the research of objective features and tendencies of long-term technical and economic development in the big social and economical system. Therefore their basic provisions are applicable to the justification of directions in structural economy transformations in the region.

Essentially important fact is the representation of flexible economy in the form of the steady kernel, the development of which is rather stably regardless of randomly uncertain factors. The zone of the flexibility is likewise the essential factor serving as the buffer; it is assuming reaction to actions of the mentioned factors and thus creating prerequisite for the existence of a steady kernel. In an economics area the steady kernel is formed by the large productions of raw and semi-grocery character as they fulfill competitive advantages of the region.

The fact of no small importance is that they are city landmark objects, and for many cities in singular.

For an increase of flexibility in the production structure of area, it is expedient to unite these productions with small and medium-sized enterprises in technological and organizational way. It will be effective as such enterprises have the deeper processing of raw materials, flexible technologies and with more various product ranges. Among them there have to be enterprises which are actively using effective regional resources of interindustry appointment fuel and energy labor. In this sense the major portion of the most mobile engineering plants will not be a part of flexibility zone. Only those machine-building enterprises will be competitive, which release technically modern or low-transportable production.

The stability of market economy, its structural flexibility is provided by institutional merger of major and small companies.

The other factor for increasing the structural flexibility of economy in the region is the development of infrastructure market and production. Likewise the services sectors create more attractive conditions for life activity. Hereby, during the development of separate elements, the infrastructure may not possess commercial effectiveness. However, the development might be efficient from the position of region, due to the increase in flexibility and reliability of the economy structure.

When planning the strategy of sustainable regional development, it is necessary to take into account the probabilistic course of events and dynamic processes of economic, social and political character, and also shifts in scientific and technical progress and structural policy.

The consideration of probable events and unpredictable tendencies is requirement which always imposed at the planning of the development prospects in the region. Now this is significantly amplified owing to the two factors. Firstly, there is a transition to the new productive and economic relations. Secondly, qualitatively new links and dependences have been forming between administrative regions, on the one hand, and the outside world – on the other.

Today it is very important to assess all probable situations from the position of probabilistic events and tendencies because, only considering them, it is possible to define the preferable and priority directions. Such directions can realize various trajectories of social and economic development with the consequences influencing future conditions of the region.

Based on the theoretical and practical views, the most acceptable approach for the solution of such tasks is the scenario approach which realizes complex economic forecasting. The developed scenarios have to meet certain requirements. Firstly, they have to describe the behavior of the region at realization of certain economic hypotheses.

The economic hypothesis provides several points: directions of development, arrangement of priorities and sequence of implementation of various projects. It also takes into the consideration the appropriate means, methods of realization of the planned directions in social and economic development.

Thus, when developing scenarios all positive and negative phenomena and events should be revealed which can arise if this or that hypothesis is confirmed. Likewise, there is a great influence on long-term development of productive forces. In this case the hypothesis which lies in the basis of the scenario will be possible in the realization of some elements and will facilitate all other probable directions in economy development.

Secondly, scenarios, each of which gives preference to this or that party of the complex economic forecast, have to be interconnected and complemented. After the formulation and assessment of hypotheses the concrete options of their realization are being developed. Hence, the options differ according to resource opportunities, the inter-district and inter-branch relations, planned rate of economic growth and the applied standard device. Each scenario has been experienced the thorough analysis what gives the possibility to select those options which in total will provide complex economic and social development on a reliable and real basis.

Competitive power of the enterprises in the region can be based on various sources: the existence of raw materials and cheap labor, an active inflow of investments and innovations. There are three types of economy in which welfare sources are significantly different.

Economy of the first type - raw materials. Sources of welfare are rich natural resources. Economy of the second type - investment. A source of welfare is ability of the enterprises to perceive, introduce and improve technologies, to make high-quality goods on their basis and to compete in the world market.

It is based on active investment flows, acquisition and adaptation of technologies for production development. Economy of the third type is innovative. The main source of welfare - the social capital, i.e. the people having the most modern knowledge, skills and communications are capable to create, produce and sell world-class production all around the world.

At the first stage, the sources of welfare can be rich natural resources which have to create the conditions for transition to economy of investment type.

The progress in investment economy reveals the creation of potential for innovative economy which should be based on the innovations in different areas.

From the very beginning it is necessary to support the available education system and science, developing the innovative potential necessary for leading in the knowledge-intensive branches.

Thus, for development of the region it is necessary to consistently increase the aggregate capital which contains:

  • production resources (raw materials, fixed assets, labor);
  • financial resources;
  • infrastructure and institutional environment;
  • social capital;

The strategy development has to direct the increase in all forms of financial capital within the region and in the same time to balance its formation. Furthermore the structure of the aggregate capital has to change consistently from domination of a raw component to domination of the social capital and knowledge.

At the present time the economy of Kazakhstan has its advantage over the West that it is much further from border of the production capabilities and, therefore, has significantly bigger choice in the directions of development. Besides, there is a possibility to realize this advantage but only in long-term strategy. It is significant to aim at an anticipatory point rather than repeat a trajectory of the developed countries.

There is a modern theory of regional development confirmed with statistics which gives preference to competitive economy. It is considered that only this type is aimed at the highest standards in the competition in the world market. Such type of economy is chosen among the various types of economic systems which really exist in the world. Without going into details, it should be mentioned here, that the competitive economy provides an active role for the government in the relations with business for search and increase in the most effective industrial complexes of the regional clusters. Therefore it demands long-term strategy of actions. The concept of a sustainable development has to reflect real social, ecological and economic situation in the region.

In the concrete situation, the majority of regions in Kazakhstan measure its sustainable development according to the following factors: firstly, restructuring of economy; secondly, solution of social problem; thirdly, improvement of environmental quality.

 

References

  1. Globalization of the world economy [Тext]: schoolbook/redaction.: М.N.Оsmova, А.В. Boichenko. - М. : ИНФРА - М, 2012. P. -
  2. World Economy [Тext] : book/ redaction. P. Nikolaeva. – 4th ed., processing and addition. - М : UNITI- DАNA, 2012. P. - 399.
  3. V. Pashkovskaya. World economy [Теxt] : book / M.V. Pashkovskaya, Y. P. Gospodarik. – 2th ed., processing and addition. - М. : Маrket DC , 2011. P. - 415.
  • Magazine: NO
  • Year: 2016
  • City: Astana
  • Category: Economy

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