PROBLEMS OF THE IMPLEMENTATION OFINVESTMENT POLICY IN THE REGION SYSTEM OF SOCIO-ECONOMIC DEVELOPMENT

Abstract

The Russian economy development is possible only if investment activity increases and a significant investment flow is made. Investment policy has a huge impact on the dynamics and structure of private and public investment in the country. It is it that forms the investment climate. The COVID-19 pandemic has led to sharp and dramatic changes that have led to a slowdown in economic growth. Unemployment and underemployment caused by the coronavirus crisis could lead to a significant deterioration in the situation of approximately 1.6 bln workers in the informal economy – half of the world’s labour force. Due to low purchasing power, there are no incentives for investment, it is due to limited savings and lack of investment, that a vicious circle of poverty arises.Investment policy in each region has its own characteristics due to economic and social regional policy.An adequate choice of investment policy makes it possible to concentrate activities and resources on the implementing investment potential and the effective region development in a market environment. Economic and social indicators of the Novgorod region development indicate the need for an active socio-economic policy, including investment aimed at increase in the pace of economic growth and improving its sustainability in order to ensure the region economic security. The study has made it possible to characterize the main elements, components, stages of Novgorod region investment policy development; analysis of the GRP dynamics, the investment volume and the unemployment level – to identify the key problems in implementing the region investment policy: a decrease in investment and investment per capita, which leads to a decrease in the physical volume of GRP and an increase in unemployment (the largest reduction in investment spending occurred by the “construction” type of economic activities); high debt load of investment spending and its growth in dynamics with a decrease in attracting budget funds to finance investments.

Keywords

unemployment, GRP, investment policy, investment spending, Novgorod region, vicious circle of poverty, regional economy, sustainable development

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About the Authors

AleksandraV. Lebedeva – Chief Specialist-Expert, Non-Production Financing Department; Ministry of Finance of  the Novgorod Region, Veliky Novgorod, Russia; Student in theMaster’s programme, Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russia. E-mail: Alexandra.Lebedeva@novsu.ru . SPIN РИНЦ  4130-3876. ORCID 0000-0002-6086-9360
Galina V. Lebedeva – PhD in Economics, Docent; Lecturer, Polytechnic College, Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russia. E-mail: Galina.Lebedeva@novsu.ru. SPIN РИНЦ 2473-5870. ORCID 0000-0002-6394-9083

For citation

Lebedeva A.V., and Lebedeva G.V. Problems of theImplementation ofInvestment Policy in the Region System of Socio-Economic Development // BENEFICIUM. 2021. Vol. 3(40). Pp. 11-20. (In Russ.). DOI: 10.34680/BENEFICIUM.2021.3(40).11-20