Foreign experience in the use of tools of government regulation to address the imbalances in the development of socio-economic systems at the regional level

Economic growth that is not accompanied by an increase in the availability of public goods for the majority of the population cannot be regarded as a development because it leaves out the majority of the population and at the expense of it. Uneven availability of public goods within the country, especially, within a country with a federal structure leads to a slowdown in recovery and growth of the national economy as well as to a negative impact on investment activity. Existence of non-uniformity at the regional level can be seen as a result of geographical peculiarities and degree of development of productive forces; however, a significant role in this process is played by development of mechanisms, elected governments. The Russian Federation, in the early 1990s faced a problem related to the regulation of regional economies development. As a result of the transformation of the national economy during "pere-stroika", a list of political and socio-economic problems, affected the stability of socio-economic systems, occurred, not only at the regional but also at the state level in the long term. Lack of regulatory and control measures does not allow to use the high potential of regional systems for the purpose of growth in the performance of domestic economy, since the existence of poorly developed social and economic systems at the regional level is a cause of incomplete implementation of public building. In our view, we should turn to foreign experience of state regulation of the 1980s. In most OECD countries the same problem occurred. Globalization, technological change, regulatory and institutional reforms were the main drivers of growth of income inequality. The global economic crisis further exacerbated the uneven, shifting the better part of the burden of the crisis on the unemployed and underemployed. Most of the OECD member countries adopted policies aimed at reducing the gap between income and long-term costs as a factor for economic development. In addition, a financial package was designed to stimulate demand and to mitigate the impact of the crisis on households with lower income. These measures were aimed at addressing income discrepancies through redistribution among the rich and the poor as well as among generations; thus, they provided support for the poorest groups. The study of foreign experience will reveal the most effective tools to stimulate regional development and to assess their applicability to the Russian Federation.

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