Московский экономический журнал 8/2019 - Московский Экономический Журнал

DOI 10.24411/2413-046Х-2019-18068

A HOLISTIC PROGRAM OF ECONOMIC DEVELOPMENT IN CRISIS CONDITIONS

Заверюха Ярослав Олегович, Финансовый университет при Правительстве РФ, Yaroslav.zaveryukha@yandex.ru

Summary: The concept of sustainable development is driven by the needs of modern
human development and is important, growing with each decade, for the
management of natural and social processes on a global as well as regional and
local scale. It is of particular importance for our country, which is
characterized by a variety of ecological,geographical and socio-economic
conditions of its regions. One of the conditions for achieving sustainable
development is to ensure the economic security of the state, so Ukraine faced
the problem of creating institutions and mechanisms to ensure its economic
security. Based on the fact that the problems of sustainable development have
significant differences and peculiar forms of manifestation in different
regions of the country, there is a need to develop a mechanism to ensure the
sustainable development of its regions and the formation for Ukraine of the
concept of sustainable development, which would be based on the stability and
security of its individual links – regions.

Analysis of
recent research and publications. Analysis of ecological and economic
approaches to sustainable development in the regional covered in the works of
such scientists: Zakharchenko, Shevchenko, Kuzmenko, Topchiev, Volik, etc.

The aim of
the work is to determine the ecological and economic approaches to sustainable
regional development, analysis of its regulatory support and practical measures
and proposals for the implementation of effective regional policy.

Keyword:Social requirements, economic security, sustainable development,
progress, society.

Sustainable
development of society at any level today looks like one of the most important,
urgent and comprehensive problems.

There was no
precise universally accepted definition of sustainable development. In the
early 1990s, there were more than 30 attempts at such definitions. Now they are
much more and they are grouped into a certain system. It is worth emphasizing
that geographers, figuring out the essence of sustainable development, focus on
ensuring environmental and social stability. Regulation of anthropogenic loads
on geoecosystems according to the parameters of the ecological capacity of the
latter, in their opinion, is the key to the realization of the human right to
live in a favorable environment for his health and well-being [2, с. 190]. However, the scientific development of
algorithms to optimize this environment through the implementation of only
environmental measures is of little effect, since the installation is formed in
advance to combat the consequences of destruction and disturbances in the
environmental sphere, and not to prevent them.

Economists
understand the essence of sustainable development somewhat differently, based
on the study of the internal causes of environmental conflicts, the need to
internalize «external effects». Under the latter, Alfred Endres
understands the transformation of the costs of compensation for environmental
damage into costs associated with the prevention of environmental pollution; they
should be included in the cost of production and the price of goods, and the
concept of «internalization» includes a comprehensive analysis and
action against any external effects – environmental pollution, imbalance
geoecosystems like [4].

The most common
definition of «sustainable development» to date has been proposed in
the Brundtland Commission report «Our common future». According to
him, is that sustainable development «meets the needs of the present
without affecting the ability of future generations to meet their own
needs»» It aims to ensure a high quality of life for present and
future generations.

At the world
conference in Rio de Janeiro in 1992. sustainable development
(«sustainable development») is defined as «the creation of a
socially oriented economy based on the reasonable use of resources and
environmental protection, which would not jeopardize the ability of future
generations to meet their needs». That is, it is, in fact, about making
economic policy over the long-term (between several generations) measurement
[6].

Different
authors have repeatedly noted the inaccuracy of the re-treasure of foreign
expression (eng. sustainable development). Indeed, the definition of
«sustainable development» means sustainable, sustained growth. At the
same time, from European languages translation is as follows: sustainable –
supported, development – development, development, creation, development,
construction, event, improvement, growth, expansion, deployment, development,
improvement, evolution.

In this
context, this translation should have a narrower meaning. This is the
development of «continuing» («self-sufficient»), that is,
one that does not contradict the further existence of mankind and its
development in the same direction.

Sustainable
development is a model of resource use aimed at meeting human needs and
preserving the environment, provided that these needs can be met not only for
the present but also for future generations [8, с. 60]. This term is voiced by the Brundtland
Commission. The Brundtland Commission, officially the world Commission on
environment and development (WCED), known by the name of GRU Chairman Harlem
Brundtland, was convened by the UN in 1983.

At the heart
of the concept of sustainable development is the human being, because he
himself with his needs is the goal of social activity, and he is the main
factor in achieving the goal. Man (as a resource of development), on the one
hand, is a biological being, on the other – the carrier of intelligence,
Creator and consumer of information (in a broad sense), which is now an
inexhaustible resource of development. Therefore, the utmost importance in a
society that develops on the principles of sustainable development, gain
education, which is formed and built up this resource, and the health care
industry, which ensures the preservation and reproduction of biological media
this resource [10, p. 80]. Man as a special kind of resources is not only
endowed with intelligence, but also able to make choices. The more choices it
has, the greater the level of freedom reigns in society. The tragedy of our
time is that the scientific knowledge of mankind is mainly aimed not at
rationalizing the needs of the population, and the invention of technologies
that allow for the large-scale conquest of natural resources. Consequently,
environmental modernization of society can be a response to the contradictions
between economic growth, social well-being and environmental conservation.

Therefore, in
the modern conditions of national development, sustainable development can be
defined as economic growth, ensuring the improvement of the quality of life of
the population and its environmental safety .

It should be
noted that it is generally accepted that the Concept of sustainable development
encompasses at least 2 important ideas.

The first is
that this development involves solving economic, social and environmental
problems. Development will be sustainable only when a balance is reached
between the various factors that determine the overall standard of living [12,
p. 975].

The second
idea proclaims that the present generation has a duty to future generations to
leave sufficient reserves of social, natural and economic resources so that
they can provide for themselves a level of well-being no lower than what we
have now.

This concept
poses a fundamental challenge to combine dynamic economic development with
equal opportunities for every member of society by improving resource
efficiency and eliminating the link between economic growth and environmental
pollution.

The state
regional policy is one of the important components of the national strategy of
socio-economic development.

In the
Concept of state regional policy and the relevant draft law of 2008, regional
development is interpreted as exclusively positive changes in social, economic,
environmental, humanitarian, ethno-national processes at the regional level in
accordance with the General objectives of the state development strategy.

Sustainable
regional development is a one-time or continuous quantitative and qualitative
transformation in the elements of a regional system and their established or
spontaneously arising complexes from the lowest to the highest level within
such established or conditional boundaries that the regional system remains
controlled and managed or able to reconfigure in time to remain quantitatively
and structurally coherent, according to a previously adopted or transformed
criterion for the functioning of a regional system .[1]

In accordance
with the documents adopted by the UN and the Russian Federation, the
organization of social and economic life requires taking into account the
General principles of sustainable development, namely:

the basic principle of sustainable development determines the establishment that the obligation to protect the environment can not be interpreted as a conflict with the interests of the economy, and is an element of good management;
the principle of taking into account the requirements of the environment in territorial planning;
the principle of legal – must strictly adhere to each of the adopted legal provisions;
the principle of liability of the perpetrator means full responsibility of the polluter for the consequences of environmental degradation;
the principle of greening economic policy: prevention of environmental pollution and elimination of pollution near the sources of their occurrence;
the principle of economization of environmental policy;
the principle of socialization of environmental policy;
the principle of joint solution of regional, European and global environmental problems.

Implementation
of the basic principles of sustainable development at the regional level can
take the following stages:

Stage I.
Elaboration of the Main provisions of the sustainable development strategy of
the region (settlement) and approval of the Main provisions by the local
Council.

Phase II.
Development of a sustainable development Strategy:

assessment of problems of development of the region (settlement);
identification of specific sustainable development goals and policies, as well as selection of priorities;
establishing ways of implementing the individual goals of the sustainable development policy;
establishment of criteria for assessing the effectiveness of sustainable development policies (the degree of implementation of individual goals);
organization of events promoting sustainable development policy;
acquisition of public support (consultation and editing of the strategy text);
adoption of the document «Strategy of sustainable development of the region (settlement)» by the local Council.

phase III.
Elaboration of the Program of implementation of the strategy of sustainable
development of the region (settlement) according to the terms and objectives
defined in the «Strategy of sustainable development of the region
(settlement)».

Sustainable
development is the economically, socially and environmentally balanced
development of certain territories and urban and rural settlements
(settlements) located on them, aimed at the coordinated formation and
functioning of their economic, social and environmental components on the basis
of the rational use of all types of resources (natural, labor, industrial,
scientific and technical, information, etc.).

The economic
component of sustainable development means the need to constantly increase the
production of social products in order to ensure an increase in the standard of
living of the population. The implementation of the economic component of
sustainable development causes the growth of incomes, the creation of new jobs,
the elimination of poverty as a phenomenon [3, p. 71].

The social
component of sustainable development means improving the living conditions of
the population, primarily through the effective development of social,
industrial, transport, engineering, communication,information and environmental
infrastructure. The implementation of the social component of sustainable
development leads to the formation of a full-fledged living environment for
modern and next generations.

Together, the
social and economic components of sustainable development should lead to a high
quality of life of the population, first of all to ensure the leveling of the
existing differentiation of the population by income and living conditions.

The quality
of life largely depends on the environmental factor, that is, the state of the
natural environment. Therefore, every decision of the state or local
authorities concerning economic and social development must be addressed in
terms of its environmental impact, which is the essence of the environmental
component of sustainable development. Implementation of the environmental
component of sustainable development is also the fact that in the country as a
whole and in each locality should be a policy of greening the economy, in
particular, should be established programs of technical and technological
re-equipment and restructuring of all types of enterprises, regardless of ownership,
to ensure their environmentally safe functioning. If it is impossible to
achieve such a result, regardless of the reasons, environmentally hazardous
enterprises must either be re-profiled, or closed, or moved to areas
(territories) remote from the areas of residence of people in the city and in
suburban areas .

The basic
conditions for sustainable development can be recognized as ensuring:

economic development, supported by a radically modified market system;
natural-ecological stability on the basis of the theory of biotic regulation of the environment;
close international cooperation and cooperation to achieve sustainable development goals;
sustainable social development based on equity;
greening of public consciousness, based on the use of the education system and the media.

Among the
main factors that ensure sustainable development are the following::

ecological – defines the conditions and limits of restoration of ecological systems due to their operation;
economic – involves the formation of an economic system, harmonized with the environmental factor of development;
social – affirms the human right to a high standard of living in conditions of environmental safety and well-being .

Natural
resources and natural conditions are the basis, the material basis of
production and life of the population to solve the problem of environmental
protection, but significant investment costs are required. Therefore, the
ecological substantiation of nature protection measures and their analysis from
the position of market economy is of particular importance.

The economic
subsystem, in turn, using natural and labor resources, tries to maximize the
effect of their use. Thus, it increases the gross product of the country, which
affects the change in the social and environmental situation through state
support of social infrastructure and the introduction of environmental
measures.

The social
sphere, on the one hand, provides the labor market with qualified labor
resources and its level of environmental culture affects the environment. On
the other hand, environmental conditions and the level of production have a
direct impact on the standard of living of the population.

All three
systems (environmental, economic and social) are closely interrelated.
Therefore, to consider these systems together, it is necessary to choose the
level that is specific to each system, and, moreover, is of the greatest
importance from the point of view of sustainable development. Such
characteristics are possessed by regional systems, since, starting from this
level, an integral socio-ecological-economic system (Gourmet) is formed, while
the lower levels of the territorial hierarchy of the three systems are
separate, unrelated systems

Among the
mechanisms and tools of ecological and economic regional development, which are
scientifically justified for implementation, it should be noted such as: the
creation of territorial ecological and economic clusters and consulting firms
in order to harmonize the interests of business entities by finding a dynamic
combination of different forms of ownership of natural and economic resources
of a particular territory; consideration of environmental aspects of the
product life cycle; audit of innovation management through eco-balances;
establishment of the regional Program of greening of investment activity;
preparation of «ecological and economic reports of subjects of innovative
activity»; application of set of financial and economic tools for ensuring
greening of life cycle of goods; ecological budgeting by allocation of
ecological financial flows of the enterprise; definition of «zone of
cyclic maneuvering by financial resources on the basis of change of ecological
costs of production»; the introduction of cross-border mechanisms of joint
environmental management of several States, especially in cases of emergency
environmental situations of the interstate zone of destruction; the formation
of a stable, stimulating environmental management system of taxation and
environmental insurance, etc [5, с. 32].

The modern
paradigm of ecological and economic development of regions is the recognition
of environmental priorities over others, which gives rise to the scientific and
practical task of reducing man-made pressure on the natural environment to the
point where it will be able to self-recovery, and in society there will be a
«socio-natural coevolution» . Thus, the state regional policy should
encourage economic entities to comply with such parameters of the use of the
resource potential of the territory, which, if the maximum economic effect is
achieved, would lead to compliance with the main limitation of sustainable
regional development, which is reduced to the conduct of economic activity in
the region within its actual natural capacity .

To implement
the strategy of sustainable development of regions, it is necessary to have a
mechanism that is based on the internal and external interests of the country
and regions, because the Central driving force of any state is the regions and
only the complexity of development makes it possible to ensure progress in
every link of the economy and human life. The economic strategy of the state
determines the transformation of priorities and mechanisms of state intervention
in the economy of the regions for the implementation of its strategic goals for
the long term.

The functions
of the regional level of management include the following issues:

regulation of the use of local natural resources;
definition of environmental pollution standards (establishment of GDV, VAT and waste disposal standards);
implementation of the economic mechanism of nature management;
monitoring and accounting of objects of nature management and environmental pollution;
state ecological expertise;
implementation of state control over compliance with environmental protection legislation;
development of programs for the implementation of environmental measures, the definition and implementation of investment policy;
informing the public and interested enterprises, institutions and organizations on environmental issues.

In the
context of sustainable development, regional authorities should be responsible
for ensuring the integrated, balanced socio-economic and environmental
development of the region. The environmental component is an integral part of
the economic activity of the region. As emphasize, for example, N. So.
Dolishniy and O. S. Swindler «Regional development is initiated by the
integral influence of a number of factors, the main of which are: consideration
and mandatory use of the advantages and opportunities of the geopolitical
position of the region; rational use of natural resource and
production-economic potential of the region on the basis of intensification of
its constituent parts and growth factors, as well as the advantages of the
processes of market reform of property relations; improvement of conditions and
living environment of the population, especially to address the problem of
employment, overcoming negative demographic trends, preservation of
environmentally safe environment» [7].

Taking into
account the importance of the problem of decentralization of state management
in the Russian Federation, and correlating it with global trends in the
development of local government, scientists proposed a draft Concept of state
regional policy. According to this concept, the main objectives of the state
regional economic policy in the environmental sphere should be::

regulation of the environmental balance of the regions;
prevention of environmental pollution;
elimination of the consequences of this pollution;
efficient use and reproduction of natural resources;
implementation of the economic mechanism of nature management;
preservation of the genetic Fund of wildlife, unique territories and natural objects;
environmentally sound allocation of the productive forces of the regions.

Economic
management of the region is one of the most complex and responsible activities
of state, regional and local authorities, since the infrastructure of the
region includes all spheres of human activity: production, social,
environmental, recreational, ideological [9, p. 597].

In the
theoretical aspect, taking into account the transition of society to the model
of sustainable development, environmental protection is allocated to an
independent sphere of infrastructure in the region, because in its essence it
is mainly a «negative result» of economic activity of enterprises in
the region, if we take into account only the anthropogenic factor of
environmental threats.

The region is
a holistic, relatively isolated, structured social system with a dominant role
of governance institutions, characterized by certain characteristics and
includes political and administrative, economic, legal, environmental, physical
and geographical, ethnic, religious and socio-cultural structural components
with the relevant social institutions .

In modern
conditions, there are several approaches to solving the problem of sustainable
development of the region. These include:

system approach;
functional approach; – integrated approach.

In the study
of the problem of regional development management system approach allows us to
understand it as the functioning of several complex systems, including:

control system-a category that defines the essence of the control object;
management system – society as a whole and its components as objects of management;
the system of interaction – various institutions that implement the relationship: direct and reverse; vertical and horizontal; subordinate and support, and the like.

In this
approach, the sustainable development of the region is a complex system that
consists not only of a territorially organized structure, but also of a
process, goals and methods; it must be well coordinated.

Considering
the region as a single, indivisible system that is based on certain principles
and relationships, management and development technologies, we can highlight
some of its features:

the presence of many heterogeneous and interrelated subsystems;
differentiation of management structures;
lack of coordination;
instability of individual elements of the system; • striving for high rates of development, and others.

The region,
as a system, will be stable if for any change of the parameters influencing it
there is such management which will provide observance of balance and stability
of structure [11, page 980]. If the input flows in the system are unbalanced in
terms of resources and benefit waiting times, the system is potentially
unsustainable.

The factors
that determine the systemic sustainability of the region include:

the stability of the dynamics of the structure;
institutional environment of the economic system, its development;
structure of the resource base and its dynamics;
information interaction between its elements;
availability of a sound methodological basis for assessing the state of the regional economic system necessary for decision-making.

The whole set
of factors affecting the sustainable development of the region can be divided
into two main groups: quantitative and qualitative.

Considering
the qualitative criteria of stability of the region as a system, we can
distinguish two such approaches:

depending on the balance of social, economic and environmental interests are maintained under external influences, economic systems are divided into balanced and unbalanced;
depending on the nature of the relations between the region and the external environment, economic systems of four types of stability are distinguished: reactive, active, adaptive and preventive.

The effect of
quantitative factors is that the quantitative result of the functioning of the
system in advance exceeds a certain target value of the indicator, and
therefore there is some «margin of safety». The quantitative
indicators include: the dynamics of GRP; the volume of investment in fixed
capital from all sources of financing; the index of physical volume of industrial
production, agricultural production, retail trade, paid services to the
population, real cash incomes.

Improving the
efficiency of functioning and development of the region requires managing the
actions of parts separately, and the interactions between them. Functional
consistency of both managed objects and the subjects of management is a
mandatory element of the process of socio-economic development of the region.
All this makes it necessary to form an organizational and economic mechanism
for sustainable development of the region, which will allow a particular
administrative and territorial unit to effectively use its potential, to fit
into the global processes of social development and ensure the growth of the
quality of life of the population.

Regional development
management issues occupy a key place in the system of regional policy of the
Russian Federation. The priorities of the state socio-economic policy aimed at
creating conditions for the development of regions is the legal regulation of
relations through the adoption of legislative acts and decisions of state and
regional bodies aimed at the implementation of state policy in this area; the
formation of strategies for the development of the state and regions through
the development and implementation of targeted integrated programs;
strengthening the role of local budgets in the financing of regional strategies
and programs.

According to
the Law of the Russian Federation «On stimulation of development of
regions» the purpose of stimulation of development of regions consists in
ensuring their sustainable development in interests of all Russian Federation,
increase of a standard of living of the population, overcoming of poverty and
unemployment, formation of a middle class; effective use of economic, scientific,
labor potential, natural and other resources, and also features for achievement
on this basis of improvement of a standard of living of people; creation of
equal conditions for dynamic, balanced social and economic development of
regions of the Russian Federation.

Insufficient
and inefficient use of resources in the regions is primarily due to inadequate
legislative support of organizational and financial relations regarding the use
of resource and investment potential of the regions, which creates a number of
negative financial consequences associated with the distribution of Finance to
other sectors of the economy and the outflow of capital abroad.

One of the
mechanisms for the implementation of socio-economic policy in the regions is
its regulatory and legal support. An important step in this direction was the
adoption of the Law of the Russian Federation «On stimulating the
development of regions», which defines the legal, economic and
organizational basis for the implementation of state policy to stimulate the
development of regions and overcome the repressiveness of regions. According to
this law, organizational support of the state stimulation of development of
regions is carried out according to bases of the state regional policy, the
state programs of economic and social development of the Russian Federation,
the state programs, other laws and acts of the legislation of the Russian
Federation.

In pursuance
of this Law, the Cabinet of Ministers of the Russian Federation adopted a
Resolution «On approval of the State strategy of regional development for
the period up to 2015», which identified the key problems of regional
development, priorities of state regional policy in terms of national needs and
interests .

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