Institutional imperatives for sustainable socio-ecological and economic development

Abstract

The sustainable growth of the modern economy is based on socio-ecological and economic development. One of the key development trends on a global scale is the formation of an innovative type of economy, and, as a consequence, in the process of economic development of most countries, including Russia, the need to create an institutional environment corresponding to a new type of economic growth comes to the fore. Accordingly, the need to create an adequate, adaptive to regional characteristics, assessment of the institutional environment of the region, to create mechanisms for its measurement, to establish indicators of efficiency increases. Firstly, indicators of the effectiveness of institutions will make it possible to visualize the process of development of the region and thereby increase its investment attractiveness. These indicators will stimulate the interest of business representatives and, first of all, those who are ready to invest their funds and are looking for territories that satisfy them according to all the criteria necessary for successful commercial activity and profit in the future. Secondly, measuring the effectiveness of regional institutions allows federal authorities, the public, and even various international financial organizations and aid funds that provide loans and multifaceted support, including admission to clubs in the developed world, to adequately assess the activities of local power structures, for which the growth of institutional indicators in the region is one of the key intentions contributing to the increase of their authority and the attractiveness of the territory as a whole. Thirdly, the assessment of the institutional environment allows specialists, on the basis of available indicators, to determine both the advantages and advantageous competitive positions of the economic system as a whole and its vulnerabilities, make sound economic forecasts for the near future and analyze the impact of such factors as the state politics, social structure, traditions, moral norms, history, geography, and natural resources on the state of the institutional environment.