M. Makarenko. The economic potential of the region as the basis for its development.

Abstract

The article proves that the study of the problems of development of economic potential of individual regions at the present stage is of particular importance. This is due to the fact that it becomes a prerequisite for ensuring the effective implementation of socio-economic reforms in the country. The situation is aggravated by the strengthening of integration processes in all spheres of public life, therefore the possibility of acquiring a certain competitive advantage in the region through the development of its economic potential requires research. It is emphasized that in most cases economic potential is considered as the aggregate capacity of the economy and its branches, enterprises, farms to carry out production and economic activities, to produce products, goods and services, to meet the needs of the population, social needs, to ensure the development and needs of the consumer. On the basis of studying literary sources and practice of functioning of regions in Ukraine, as well as taking into account the results of their own studies, it was possible to identify the main elements of the economic potential of the region. The components of the economic potential of the region are considered. It is established that the main task of improving the management of development and the use of economic potential as the basis of the mechanism for managing the formation of competitive advantages of the region is to evaluate and identify the main objects and directions, to make changes to these elements, and to modernize them in accordance with those strategic tasks that are set before the region. For a real assessment of the economic potential of the region, we consider it expedient to include certain indicators in this complex concept and highlight specific priorities. In the article the essence of the concept of economic potential is investigated, methods of economic potential management are proposed, which are based on the use of heuristic methods. It is suggested in the management to use the definition of the strength of the relationship between components of economic potential.