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5POSSIBILITIES TO INCREASE EFFICIENCY IN THE UTILIZATION OF INVESTMENT POLICY IN THE SUSTAINABLE DEVELOPMENT OF REGIONS
Guliyeva A.E.
PhD students of the Azerbaijan State Agrarian University
ABSTRACT
Economical and institutional factors are characterized in the article which restrict the opportunities to improve efficiency of usage of investment potential in sustainable development of regions. Possibilities to increase efficiency of investment potential in the regions of the country are evaluated. Currently, new approaches with respect to investment factor in the socio-economic development of regions are increasing. In this respect, matters regarding the formation of investment potential and a new approach to regional mechanism of its utilization and attitude to the institutional environment of economic factors which involves the chances to improve investment activity actualize. Therefore, introduced article has been devoted to the matters related with the improvement of usage efficiency of investment potential in regional development.
Keywords: investment potential, economic and institutional factors, investment attractiveness, efficiency, updating
Economic and institutional factors related with the use of investment potential in regional development. The increase rate and scale of economy of Azerbaijan which has been considered continuously the highest rate of development during approximately last ten-year period have afforded suitable opportunities for dynamic socio-economic improvement of the regions and also balanced regional development has increased economic power of the country. From this point of view, mutual completion effect of national and regional development factor has improved a condition to utilize investment potential in socioeconomic development of the regions. Favorable investment environment which has been created as a result of unanimously accepted successes of realized macroeconomic stability and sustainability policy, provides continuous and guaranteed profits to investors in a number of fields at an acceptable level. Complex measures taken to strengthen relevant standard legal base requires new approach to the regional mechanism of modernization of insurance system and increasing reliability, formation of market infrastructure meeting the demands of balanced regional development, taking serious steps towards creation of effective anti-inflation system for income protection and formation of investment potential and its usage.
Regional development matters should be explored from theoretical and practical points of view. Thus, we will comment on the aspects arising from aimed goal. First of all formation of institutional relationship and effective use of its utilization should be included in its relationship with the environment of economic factors involving improvement of investment activity. In this respect, first of all, institutional factors restricting the opportunities to improve efficiency of utilization of investment potential in socio-economic development of regions and economic factors involving those opportunities should be characterized. Nowadays, because of conservatism in the forming institutional structure, alterations implemented in regional investment systems which are mostly applied postsoviet and partially in post-socialist countries are not happening in a necessary pace. Significant negative effects of delays on the utilization efficiency of investment effectiveness of regions in different countries which are observed on the economic space which is under discussion and in the modernization of institutional structure attract researchers' attention.
From our point of view, studies on institutional factors limiting the opportunities for increasing the efficiency of the investment potential in sustainable socio-economic development of the regions provides a reasonable basis for the following statements:
-in the world of increasing pace of modernization of infrastructure, being in the stage of improvement of institutional support of business activity which meets prime demands of innovation-intensive development;
-non formation of networks of the same and similar entities operating in regional institutional-technological environment which is similar enough with the advantages of vertical integration;
-a number of institutional agricultural links between production, process and service entities of the region with different profiles do not meet some of the main demands of sustainable development.
Economic efficiency of investment operation is generally defined based on classic methods of assessment of efficiency. In other words, effectiveness being the result of useful activity is expressed in the difference between obtained monetary profits and expenditure. Despite the fact that, considerably different methods are used to determine the efficiency of investment utilization, "following four indicators are normally used during analyzing process based on discounting: -net income;
- internal rate of profitability; -discounted coverage of payment; -profitability index.
Listed indicators reflect generalized outcome of comparison of the investment of total income with its amount."(1, s. 254).
Economic factors involving the opportunities to improve efficiency of using investment potential in the socio-economic development of the regions, first of all should include investment attractiveness of the region. As it is known, initial level of regional investment attractiveness depends on production and resource potential, support infrastructure as well as absolute and relative advantages of the region. However, derivative factors involving investment attractiveness of the region in the condition of regulated market relations involve quality parameters of risk management of investment operation in a specific area, formation rate of innovation infrastructure, effectiveness of business support system, level of profits etc.
Quantity and quantitative evaluation of mutual dependence of business activity levels in the region and utilization of ownership potential is appropriate when investment decisions are made. Increasing mutual cooperation between local self-government structures and investors, issues related with establishment of mutually beneficial cooperation between owners and local government structures in identifying promising investment areas should be on agenda when improvement of usage effectiveness
of investment potential in socio-economic improvement of regions is under discussion.
Correlation between utilization level of investment potential and investment attractiveness is quite close with certain reservations.
In its turn, changes in vectors of mutual links of business environment and in-vestment attractiveness of economic region involve characters of risks, their rates and hesitations in the efficiency level of measures taken to decrease them. It can be seen from research and analysis of advanced foreign experience, as sustainability level of regional development increases, noticeable decrease of those hesitations occur.
As an analysis subject income levels deserves attention among indicators of investment attractiveness of the region. The dynamics of the ratio of revenues to the amount of investment resources is an important information source in terms of evolution of usage efficiency of investment in socio-economic development of regions. Naturally, regional differences should not only be assessed with the income level, but also a wide range of indicators should be involved in to assess improvement opportunities of investment potential in socio-economic development of the regions.
'As goals of socio-economic development of the region indicators of increase of incomes, improvement of education, nutrition and health, decrease of poverty level, improvement of environment, equality of opportunities, expansion of personal freedoms, enrichment of cultural life are applied. Although some of those goals are identical, they differ considerably in different environments. For instance, limited funds can be directed towards development of health or protection of environment.' (2, s.3)
Generally, it is impossible to propose a comprehensive attitude on utilization of investment potential in socio-economic development of regions without evaluating its actual level. Thus, formation of information resources of the region and its usage should be characterized comprehensively. Information resources of the region should enable assessment of usage level of investment potential to improve investment demands for interregional production activity at first approach in a specific area (the region, potentially partner regions with it, permanent partners in interregional relations). Coverage of issues related to utilization of investment potential in industrial and commercial activities might be considered in the following stages of formation of information resources of the region.
Then government creates an environment for effective usage of investment potential by establishing equal and adequate condition for investment activity of all agencies without depending on their organizational and legal structures and forms of property. Stimulating activities should be considered and adequate system of concessions including tax should be created for entities which direct their investments to improvement.
Justifying the rate of investment policy is a decisive factor in terms of realization of improvement of usage effectiveness of investment potential in socio-economic development of regions. As it is known, complexity is a decisive condition justifying investment policy. Thus, necessary level can only be achieved in scientific justification of investment with the help of complex approach. Directing investments towards social problem solving is another noteworthy point in terms of increasing usage effectiveness of investment potential in socio-economic development of regions. From this point of view, improvement of activity structure and increase of its level, issues related with
providing service adequacy for innovative improvement should be underlined. Utilization effectiveness of investment potential of the region depends on renewal of resources and technical level, and improvement of that level is considered one of the prime targets of investment policy. Thus, 'Investment policy is a component of economic policy im-plemented by enterprises and the government by taking the necessity to update prime assets and to increase technical level into consideration in the form of determining scales, structure, directions and sources of investment.' (3, s.181)
The factors which limit effective usage of investment potential in socio-economic development of regions can be considered undesirably rapid increase of migration processes, concentration of infrastructure facilities in big cities, economic and institutional difficulties in opening new workplaces in remote areas. From sustainable development point of view, management of impacts of these factors is taken into account to some extent in the conception of balanced development of regions.
The opportunities to improve usage efficiency of investment potential in socio-economic development of regions decisively related with the nature of relationship to human factor in in regional policy. Considering this and other points, the reality of development opportunities of utilization efficiency of investment potential should be evaluated.
Accuracy in the quantitative assessment of discussed opportunities directly depends on precision of quantitative characters of formation and utilization process of investment potential. Important measures are taken towards composition of investment map on various fields of regional economy in Azerbaijan by attracting electronic resources.
Regional investment projects which are considered to be beneficial to finance in economic regions of the country are shown in the electronic investment map. Regularly updated appropriate database is expanded according to main components. Links between collecting information and their estates are provided.
As it can be seen from the practice, attracting alternative financial resources (credit organizations which are not banks, funds, international financial organizations etc.) for development of the region influences positively to regional investment environment. In terms of sharing risks, using resources which are attracted by different financial sources is one of main factors of this influence involving creation of optimal mechanism.
Development of usage efficiency of investment potential: Regional aspect. Development of usage efficiency of investment potential in socio-economic improvement of regions is a component of financial strategy and should base on realization principle of economic, social and innovative efficiency of this or another project. Thus, projects which enable efficient utilization of resources, getting maximum benefit with minimum expenses, supporting liquidity of investment whereas serious changes are happening in the environment of foreign investment and market, benefit from state protection, decreasing risks minimum are given preference.
Opportunities to improve usage efficiency of investment potential in socio-economic development of regions are revealed due to comparative analysis of alternatives. For instance, in practice determining the benefits of modern construction or investment of technical arming is needed.
For this purpose, let's characterize positive and negative sides of investment in construction and technical re-arming. First of all, it should be mentioned that investment of new
construction enables development of everything such as raw material, material, technology, technique. Thus, as it is known much more financial resources and period are demanded in this form of investment.
In Azerbaijan, preparation of state programs on socioeconomic development of regions and investigation of executive practice have revealed existence of positive aspects resulting from theoretical investigation. Highly likely, investment of new construction is revealed in two cases;
l.Production of principal new product. Although this statement has come out as a result of both theoretical and empirical research, it is not possible to accept it to be adequate. In other words, Issues relate with necessity and efficiency of investment of new buildings should be main subject of continuous and comprehensive researches during examination of investment project. This condition is related with dynamism of external environment which directly influences investment environment, unexpectedness of changes taking place in the character of impacts of external factors which creates that environment.
2.Increasing activity in regions. Importance of human factor in usage of regional investment potential in unique positive consequences resulting from decreasing poverty which is accepted unanimously by the world community. Generally, it should be noted that, considering priorities of social well-being in investment policy plays an important role in achieving quantitatively new level of development of usage system of investment potential in intensive development of regions.
Compared to construction of new buildings investment of technical rearming, even in broader terms achieving progressive technological level in the activity of manufacturing entities, modernization of infrastructure network, particularly, formation process of modern logistic systems require much less funds and time.
In comparison with construction of new buildings there are some shortcomings of investment of technical rearming of entities which belong to regional manufacturing network. Such shortcomings can be seen in the context of innovatively intensive development. While choosing priorities for investment giving preference to technical rearming, comprehensive improvement in all directions of activity in various companies of the region is almost impossible. As it is known to any specialists in construction and reconstruction, fragmentary modernization brings finding compromise options for modernization and obsolescence, alternatives for the benefit of modernization between them. In this case, as it can be seen from research and practice increase of expenses and their being probable in confirmation are not rare conditions.
As it can be seen from practice, resources should be used effectively in all stages (planning, designing, investment and absorbing stages) of investment cycle (from planning investment to absorbing all indicators of project). It is important to implement following measures to provide effectiveness regionally in the stage of investment planning:
-improvement of investment in terms of type, technology and other aspects, generally remanufacturing of structure. Relationship opportunities according to all classification signs of investment should be considered, leading components for creating system for realization of them should be defined;
-complex approach to investment in all mutually related stages of technological process. In this case, major economic technological processes should be considered again in the
context of modernization, the role of links in expected multiplier effect should be assessed. Opportunities of this effect to benefit (allocation effect) from the utilization of optimal ratio of resources should be characterized.
-allocating funds at the same time for main and auxiliary production, social area and solutions for ecological problems. It is not hard to see that a number of methodical and informative difficulties will occur in practical implementation of this offer which is theoretically unquestionable. Evaluation of the efficiency of the projects considering those offers should be a sum of imitation effects which enable multi-objective approach and scenario formation;
-time reduction of designing projects and improving quality of the project. For this purpose, first of all, existing experience in modeling investment processes which is designing should be applied, characteristics of promising directions should be analyzed, after assessing typified operations, they should be involved in circulation. To improve the efficiency of investment projects, criteria should be determined, their characters should be concretized, taking interests of average statistical agent, updating database should be created on qualitative management of projects.
To improve usage efficiency of investment potential in regional economy the time period for renewal of the funds and opportunities to minimize resources should be indicated quantitatively. Thus, construction period of new manufacture purpose (as well as social) factories which are built in regions should be shortened, quality of construction and reconstruction should be increased, cost of construction related installation operations should be decreased. At first sight, scientific and practical value of these considerations which sound quite declaratory depends on ambiguous acceptance of its application mechanism, accessibility of database meeting demands of innovative and intensive development. Conducted researches and analysis of advanced experience show that as significant indicators of competitiveness of executive company shortening construction period of new manufacturing buildings, increasing the quality of construction and reconstruction from technical economic, resource protective and other perspectives, reducing costs of construction and installation operations without decreasing quality should be highlighted. In this case, on the one hand formation process of information estate block for supporting development priorities of technological structures of major funds speeds up, on the other hand favorable environment is formed for achieving allocation effect in the utilization of resources.
Opportunities to improve effectiveness in the stage of absorbing project indicators fully, the project should be based on indicators which characterize level of expenditure (or productivity of work) of manufactured product. Deepening marketing researches and expanding their scopes deserves as much attention as the direction to improve usage efficiency of investment potential in the region has. Studies show that investment activity in different regions depend on the rate of openness of exchange environment to competition, compatibility level of existing regulatory system to core principles of market.
To realize improvement opportunities of usage efficiency of investment potential in regional development, complexity of updating major funds, perfect process regulatory system of price formation from territorial organization perspective between production and service subjects should be created, the process of resource concertation of the organizers of investment projects
should be supported, operations towards reduction of debtors' debts should be speeded.
Besides above mentioned facts, improvement of usage efficiency of investments in practical context requires;
-improvement of resource as well as energy provision in potentially partner regions by taking unique features into consideration;
-development of transportation scheme by considering criteria of minimizing dislocation;
-formation of infrastructure network appropriate to demands of export potential intensification.
As in the case with improvement of efficiency of credit mechanism of invest-ments, besides other priorities, diversification of credit portfolio, development of credit management system, expansion of customer network, improvement directions of efficiency by applying information-communication technologies in the relationships among investor, bank, subject of production, and other organizations should be underlined.
Conclusion
To improve usage efficiency of investment potential regionally-by taking complex approach ,reproduction structure of investment should be developed in all stages of technological process; imitation experiments should be applied which enables multi-objective approach in evaluation of efficiency of projects
considering demands of modernization of main and auxiliary production as well as complex solution of social and ecological problems and scenario formation; by taking interest of average statistical agent into consideration, database should be formed which regularly updates over management of quality of project and meets demands of innovatively intensive development. Adequate amortization policy should be implemented meeting requirements of innovative development in reformation of active parts of major banks; excellent system of regulation of price formation process in terms of territorial organization of activity among production and service subjects should be created; resource provision in potentially partner regions should be improved, transportation scheme over criteria for minimizing potential of dislocation should be developed; infrastructure network should be formed according to improvement of export potential.
References
1. Четыркин Е.М. Финансовая математика. Москва, Дело, 2003, 400 с.
2. Huseynova X.M. Regional development: goals, trends and management methods. Azerbaijani agricultural research. №6, Baku, 2008, s.3-5
3. Explanatory dictionary of economic terms. part I. Baku, "Nurlan", 2005, 536 s.
ЗАБЕЗПЕЧЕННЯ ЕКОНОМ1ЧНО1 БЕЗПЕКИ У СФЕР1 ОБОРОНИ У
СУЧАСНИХ РЕАЛ1ЯХ
Аванесова Н.Е.
Харювський нацюнальний утверситет будiвництва та архтектури, професор
ECONOMIC SECURITY IN THE DEFENSE SPHERE IN THE MODERN WORLD Avanesova N.E., Kharkiv national University of construction and architec-ture, professor, Kharkiv, Urraine
АНОТАЦ1Я
Статтю присвячено теоретичному обгрунтуванню забезпечення eKOHOMiuHOi безпеки у сферi оборони у сучасних реалiях. Визначено, що для забезпечення стабшьно! економiчноi безпеки оборонно-промислового комплексу державна полггика першочергово повинна бути спрямована на реалiзацiю двох стратепчних напрямiв: структурну перебудову народного го-сподарства, його модершзацш та розширення внутршнього ринку шляхом забезпечення умов для припливу швестицшно-го кашталу.
ABSTRACT
The article is devoted to theoretical justification of ensuring economic security in the defense sphere in the modern world. Determined that to ensure a stable economic security of the military-industrial complex of the state policy in the first place should be aimed at the implementation of two strategic directions: structural adjustment of the economy, its modernization and the expansion of the internal market by ensuring the conditions for the inflow of investment capital.
Ключовi слова: нацюнальна безпека, економiчна безпека, оборонно-промисловий комплекс, конкурентоспроможнють, iндикатори економiчноi безпеки.
Keywords: national security, economic security, military-industrial complex, competitiveness, indicators of economic security.
Постановка проблеми. Военно-полггачне керiвництво бшьшосп промислово розвинутих крат розглядають обо-ронно-промисловий комплекс як важливу складову стратеги нацюнально! безпеки й оборони крани i придшяють значну увагу захисту важливих i ефективно працюючих пвд-приемств i оргашзацш оборонно! промисловостг В ньому сконцентроваш значш штелектуальш, виробничо-техшчш та квалiфiкованi людсьш ресурси, зберпаеться високий екс-портний потенщал, що забезпечуе надходження до державного бюджету значних кошпв [1, с. 21].
Оборонно-промисловий комплекс як сектор економши, призначений для розроблення i виробництва продукцп оборонного призначення, фактично е фундаментом военно! безпеки та оборони кра!ни. Щдтримання високого рiв-
ня його розвитку для багатьох розвинутих кра!н е одним iз прiоритетних военно-економiчних завдань нацiональноi полiтики.
Аналiз останнiх дослщжень i публiкацiй. Вперше термiн ОПК вжив президент США Дуайт Ейзенхауер в посланш американському народу в ачш 1961 року. Щiзнiше, щоправ-да, з'ясувалося, що термiн запропонував не сам Ейзенхауер, а багаторiчний укладач його промов М. Мосс. Вт i був автором послания, в якому мiстився новий термш.
Дослiдженню сутностi ОПК та наслщшв його функцю-нування та роз-витку було присвячено чимало робгт захвд-них i вiтчизияних економюпв. Суперечки з приводу сутi ОПК розгорнулися серед американських економiстiв в 60^ рр. минулого столiття. Пш цiеi дискусii' припав на початок
