DEVELOPMENT OF THE CHARACTERISTICS OF THE INSTITUTIONAL ENVIRONMENT FOR THE MODELING OF SUSTAINABLE DEVELOPMENT OF REGIONS

Objectives. The aim of the study is to develop the characteristics of the institutional environment to ensure the sustainable development of regions.

Methods. Research methods comprise the system analysis, socio- economic modelling and forecasting. The method of graphic images  is used in order to visualise the analytical data and the results.

Results. The relevance of sustainable regional development in the  current economic conditions is substantiated, the necessity of a  complex approach of economic, social and ecological criteria for the  implementation of programmes aimed at transforming the social and economic space of territories, small towns, and municipalities is identified. The role of institutions in the development of territories is revealed and their mechanisms and classifications examined.  Different scientific approaches to the role and significance of the  institutional environment are characterised alongside a discussion of  the need for modernisation and adaptation to present economic conditions. An analysis of the socio-economic  characteristics of the institutional environment is carried out and the  directions for their formation up to a level corresponding to the  development strategy of the territory, small town or municipality are determined. The indicators of the development of the institutional  environment of small towns are characterised on the example of  three subjects of the Russian Federation: Perm Krai, Tula and  Vladimir oblast. Data on three types of institutions – constitutional,  economic and social – are considered together with living standards.  The composition of the institutions of the business environment,  education, culture and sport is analysed. The data on budget  indicators of small towns of the federal subjects under consideration  are reflected and problems concerning local budget deficits in the majority of municipalities are identified.

Conclusion. Based on the identified directions and criteria for the  development of the institutional environment, the directions for modelling the sustainable development of territories are developed.

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