THE ROLE AND PLACE OF FINANCIAL RESOURCES FOR THE DEVELOPMENT OF REGIONS

• Main Author: Kateryna Indus
• Format: Article
• Language: English
• Published: Izdevnieciba “Baltija Publishing” 2018-06-01
• Series: Baltic Journal of Economic Studies
• Subjects: financial potential; formation of financial resources of regions; financial provision; conceptual approaches; competitive development
• Online Access: http://www.baltijapublishing.lv/index.php/issue/article/view/429/pdf

The subject of the study. Financial support for the competitive development of the country’s economy is gaining important meaning nowadays. There is determined the necessity of adapting the country’s financial system to the European integration priorities of the development and solving the problem issues in the field of attracting financial resources by combining sources of their inflow to improve the efficiency of financial potential management of the country and its regions. The differentiation of regional development is the basis for monitoring the components of sustainable development, including the financial component, in order to further take into account territorial features in the process of the formation of financial resources of the regions. Methodology. In the course of the research, based on the synthesis of scientific approaches, an actual vision of the treatment of financial potential is formulated, determined by the aggregate of resource support, in particular, the real and potentially available financial resources, as well as the capabilities of the country, including organizational, managerial, functional, infrastructural, and adaptive for the accumulation of financial resources, their transformation into productive financial capital, its redistribution between economic entities and its use of capital to provide the sustainable development of the country and its regions. Aim. It is to explore the structure of the financial potential of the country and its regions, under the influence of transformational changes in the economy, where new elements appear. To generalize the development of foreign economic activity, which makes it possible to include in the composition of possible financial resources of the state and its separate regions a whole group of financial resources that are of external origin, in particular, loans from the International Monetary Fund, the European Bank for Reconstruction and Development, investments in free economic zones and territories priority development, borrowing from international financial markets, technical assistance from foreign non-government financial institutions. Conclusions of the study. It should be noted that nowadays, when the financial potential of the regions of the country is formed not only at the expense of budgetary funds, together with the state both the private sector and the population appear as business entities. It is emphasized that the priority in determining the sources that form the financial potential is their territorial membership, within which there are cash accumulation of incomes, economic entities and the population as a result of their production and economic activity, and attracted funds from the side that are concentrated in the respective funds for ensuring the continuity of extended reproduction and satisfying other social needs. A prerequisite for ensuring balanced development of the country and its regions is the sufficiency of financial resources in order to fulfil the functions entrusted to state authorities and local self-government bodies. At the same time, the management of the economic development of the country will take a qualitatively new innovative level, where each member of the territorial community will become a full and active participant in economic relations based on the principles of participation and solidarity in the region, as well as in the country as a whole.