DEVELOPMENT MANAGEMENT OF TERRITORIAL ECONOMIC SYSTEMS UNDER INTEGRATION AND CONVERGENCE CONDITIONS

• Main Author: Lesya Gazuda
• Format: Article
• Language: English
• Published: Izdevnieciba “Baltija Publishing” 2015-11-01
• Series: Baltic Journal of Economic Studies
• Subjects: managerial approaches; territorial economic systems; state and local executive bodies; integration; convergence; bordering rural territories
• Online Access: http://www.baltijapublishing.lv/index.php/issue/article/view/32/36

The purpose of the paper is to define managerial approaches to activation of development of territorial economic systems under conditions of integration and convergence. Methodology. The study is based on generalisation and substantiation of approaches to the process of development of territorial economic systems under integration and convergence processes. The importance of developing reasonable methods, principles and functions of management, both from the side of central and local administrations, aiming to increase the efficiency of adjustment of territorial economic systems development, improvement of organizational forms in territorial management, including bordering rural territories is underlined. Practical implications. The need to use goal-oriented-program and value-regulatory approaches to manage development of territorial economic systems under integration and convergence is substantiated. Here, the goal-oriented-program approach provides for the use of the system of methods and principles, which will ensure the orientation of managerial activity of respective regulatory bodies at implementation of different programs and achieving the goals of development of the system taking into consideration its quantitative and qualitative changes. The value-regulatory approach will be directed at creating new (positive) values related to managerial activity within the dimension of certain rules and norms given by the respective scale of values in social development. The need in development of managerial tools ultimately basing on planning as a function of management of the territorial system’s development, as well as developing plans and programs for fulfilment of perspective development of the mentioned system is substantiated. The author’s view is expressed concerning the process of development management of territorial economic system, which is considered as the task-oriented process of influence on its strengthening, developing positive qualitative and quantitative changes in it, which will lead to converting such system into a brand new state due to increasing its life-sustaining activity and potential. Value/originality. Developing effective managerial approaches is caused by the necessity to regulate integration and convergence processes of development of territorial economic systems according to existing potential, economic and natural conditions of certain territory that will favor their balanced growth. The efficiency of management in the process of development of territorial economic systems will depend on stage wise development of managerial approaches with the use of effective managerial tools. The stage wise development of managerial approaches is based on historical, current and perspective assessment of the level of development of territorial economic system in terms of its matching to the features of integration and convergence processes, on defining outer functional preconditions and outlining the purposes of development of territorial economic system, developing plans and programs of perspective development, their implementation and managing the results.