EUROPEAN EXPERIENCE IN THE FORMATION OF A STRATEGY FOR MANAGING THE REGION’S ECONOMIC DEVELOPMENT

Abstract

In the article, the authors analyzed modern approaches to determining the essence of regional development management. It has been proven that in modern conditions during the European integration of Ukraine into the international community, it is worth paying attention to the peculiarities of the formation of the region's economic development strategy, considering the competitive capabilities of each of them. In particular, the regional economic policy should ensure, on the one hand, security for the population, promote business development, ensure the satisfaction of the population's needs, and on the other hand, form a qualitatively new strategy for post-war recovery. It was revealed that today the strategic direction of institutional changes in the system of regional management in Ukraine is the transformation of the existing model, the continuation of the decentralization process, the implementation of positive foreign experience in ensuring the economic development of the region, the formation of an appropriate strategy that would allow each region regardless of its state of development is relevant to plan its post-war restoration. It is worth taking as an example European regional management models, namely: regional corporation, planned contracts, and joint participation in solving problems, but implement them following domestic features. When producing a regional economic development management strategy, in addition, should be used European experience, a program-target approach, which involves the formation of a hierarchy of goals in the strategic planning of the region’s development, the formation of interrelated programs, the distribution of available resources, and the formation of the special management bodies budget. It is proved that the sustainability of the region’s economic development depends on the available potential, and the degree of its realization: the greater the aggregate potential, the objectively higher the inertia of the region’s development, the probability of indicators of such development in the future, and the weaker the influence of random phenomena. The authors proposed a conceptual approach to the formation of a strategy for managing the region’s economic development. The development of a regional economic development strategy involves determining the purpose of its implementation, relevant strategic goals and objectives, the financial potential of the region, and the need to attract funds from the state, business, and international institutions. Of course, while martial law is in place in Ukraine, the first thing to do is to build a post-war recovery strategy, while considering the existing risks and threats, but we should not forget about the economic component, since the viability of the country's economy must be ensured in any conditions because the level of development and independence of each region depends on this.