INFLUENCE OF THE STATE ON THE INCREASE IN THE INTERNATIONAL COMPETITIVENESS OF ITS REGIONS

Abstract

The work revealed a number of deep problems related to the underestimation of regional competitiveness. The first, fundamental circumstance is that the government is usually guided by considerations of a higher ideological order, such as strengthening defense capabilities or increasing the standard of living of citizens, so for politicians, competitiveness is not an end in itself, but a subordinate means, albeit an important one. The government's political goals can be achieved by other means. The second circumstance is related to a whole block of technical difficulties. Competitiveness is a complex phenomenon and therefore difficult not only to direct regulation, but also to formalization. After all, the third circumstance is related to the very order of state functioning. The work also highlights and substantiates three options offered by world practice in resolving contradictions between the spatial organization of the economy and the administrative-political system. The problem of separation of powers “vertically” between central, regional and local authorities was revealed. A list of tasks that must be solved by the central authorities in the field of increasing regional competitiveness is proposed, as well as the options for economic policy that can be implemented by the government in these areas are considered. This led to a more detailed analysis of the influence of the state on the competitiveness of the region, and proposition of an appropriate methodology consisting of six stages. At the first stage, a general assessment of the competitiveness of the country and a specific region is carried out – the areas of specialization, the type of competitive strategy, and the main determinants of competitiveness are established. Further, the goals of the state's regional policy for the entire selected time period are investigated; the main “turning points” are highlighted, when the policy underwent a significant revision. Then, on the basis of the carried out periodization, period by period is studied, and the effectiveness of state policy is evaluated in terms of its impact on regional competitiveness. On the basis of the conducted research and analysis of modern trends in the economy and politics, prospective problems of regional competitiveness and the tasks of the state arising from this are determined. The obtained results are analyzed in terms of the interests of the state and its regions.
 After that, the paper considers and analyzes two approaches to the quantitative assessment of competitiveness. This analysis made it possible to conclude that none of the given indicators, taken separately, describes the completeness of the picture. Therefore, in the analysis, they should be used together, complementing and clarifying each other.