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FUNDING INDUSTRIAL SECTOR – THE APPROACH BASED ON THE EVALUATION OF ATTRACTIVENESS

Anna Plekhanova, K. Kolesov, A. Uzbekova, I. Romashova

Abstract

One of the main tasks of the state is to finance and support sectors of the economy that are important for social development. This task is realized within the framework of state industrial policy. At present, a significant shortcoming of the industrial policy is the lack of a transparent justification for the selection of state support and financing facilities. There is no methodology for establishing functional links between the three basic elements of industrial policy: support objectives, objects (industries) and mechanisms, which leads to inappropriate and inefficient use of public resources. In the opinion of the authors, a scientifically grounded assessment of the status and development of industries in order to efficiently distribute financial resources and state support measures should become a key element of industrial policy. The author's concept is based on the establishment of clear and transparent links between the goals, objects and mechanisms of industrial policy. A distinctive feature of the proposed concept is the methodology for assessing the analyzed funding and support objects (economic sectors) for their compliance with the stated objectives of industrial policy on the one hand and possible support mechanisms on the other. The concept of branches (types of economic activity) managing presupposes a multilevel, systemic approach, according to which industrial policy should be developed at various levels of management. Within the framework of the proposed approach, the choice of state support and financing objects is carried out in accordance with established objectives on the basis of an assessment of the attractiveness of industries. Therefore, in order to achieve different objectives, different indicators of performance should be used. The calculation of indicators of a purely financial and economic nature and the determination on their basis the attractiveness of economic systems is insufficient today to solve the problems of increasing the competitiveness of industries and the economy as a whole. The conceptual core of the approach proposed by the authors is the understanding that assessing the attractiveness of the economy for financing and support should not be limited only to determining the achieved level (current status), as is done practically in all methods currently used. In contrast to these methods, the assessment should reflect the dynamics and opportunities for the development of economic sectors. In order to have an idea of the prospects for the development of industries, the authors propose an approach for determining activity indicators based on a consideration of the growth rates of the values of these indicators in comparison with other sectors included in the assessment. Thus, to evaluate the attractiveness of industries, it is necessary to distinguish two sets of criteria: 1) criteria for assessing the potential (current status) of the economy; 2) criteria for assessing the activity (dynamics of development). The implementation of the proposed approach to financing of industrial sectors will allow: 1) to manage branches more effectively to achieve the objectives of the industrial policy of the region, to increase the efficiency and transparency of state industrial policy; 2) to give enterprises clear criteria for strategic development.

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