The Methodology of Indicative Assessment of the Effectiveness of Managing Region’s Development in the Conditions of the Digital Economy

Abstract

Purpose: The purpose of this study is to develop a method of indicative evaluation of the effectiveness of public management of the development of a region in the digital economy and its testing on the example of the regions of the North Caucasus Federal District of the Russian Federation. Design/Methodology/Approach: The author’s method of indicative evaluation of the efficiency of management of the region’s development in the conditions of digital economy has been developed. The indicators of efficiency of management of regional development in the conditions of digital economy are the use of digital economy possibilities for maximization of incomes and minimization of regional state budget expenses. Findings: It has been stated that, due to the digital economy, the income of state budgets of the regions of the North Caucasus Federal District of the Russian Federation in 2018 is 6.19 times higher (as compared to income without the use of digital technologies). At the same time, the potential for minimizing expenditures of their budgets has been rarely realized. The digital economy allows reducing state budget expenditures of the regions of the North Caucasus Federal District of the Russian Federation by 480.64 times. Originality/Value: The calculations showed that state management of the development of the regions of the North Caucasus Federal District of the Russian Federation in 2018 is effective (revenues exceed expenditures). However, the opportunities of the digital economy have been practically neglected. As the digital economy develops in the regions under consideration, the efficiency of government economic management should be expected to improve. It is recommended that the digital modernization of the economy of these regions should be stimulated in order to increase the efficiency of public management.