Evaluation of the Level of Financial Development of Rural Places

At the meeting of the Nationwide Assignments and Demographic Plan Council the President of the Russian Federation emphasised that “Rural areas have a powerful economic, demographic, natural, historic and cultural opportunity. Our goal is to use it properly for the reward of the total state, in purchase to attain a new top quality of life for millions of our citizens.”

At present, the final decision of issues of the growth of rural locations of the Russian Federation is carried out in the framework of the strategy of very long-term socio-financial development, the meals stability doctrine and the federal plan “Sustainable development of rural spots.”

The success of the progress of territories is characterised by evaluating the effect acquired with the worth of the methods or expenses employed. Resolve of the performance of the improvement of territories is dependent on a comparison of its benefits with the price tag of labour and with the price of successful methods. Development is linked with the thought of financial probable.

The term “likely” usually means prospects, sources, applications, materials, which can be actuated and employed for achievement of certain objectives. Availability of house opportunity because of to the financial balance and environmental disorders is recognized as an financial opportunity. The financial interpretation of “prospective” regards it as the ability of the economic entity to guarantee its very long-time period effectiveness and achievement of strategic aims using the method of obtainable assets.

In this regard, we propose methodology for analysis of the financial potential of rural spots, which enables using into account the results of the sustainable administration of selected spots. We believe that the economic possible of rural regions can be found as the qualitative features and quantitative measurement parameter. To do this it is necessary to define a set of indicators, the composition of which relies upon on the needs of analysis and needs of the assessment topic. Considering the fact that it is complicated to give the priority to any specific requirements, we propose to have out a detailed assessment of the economic opportunity of rural spots, which permits calculating the integral index, which characterizes the municipality and the region as a whole.

The methodology contains an assessment of the financial potential of parts as a score and as a score building with regard to the affect of the parts advancement things. A important benefit is that the analysis can be done centered on the formal studies.

Evaluation of the literature showed that at the moment there are numerous approaches of rating, even so, in our impression, these methodologies vary in the preliminary established of indicators, algorithm for calculating equivalent indicators and ranking building. In this connection, it was resolved to take into account the prior experience, boost and generalize present strengths and acquire this methodology.

Methodology of the evaluation of the financial opportunity of rural areas is made up of the subsequent phases: justification of the parameters and indicators system characterizing the given parameter calculation of comparable indicators calculation of parameters with various strategies (additive convolution approach the system of calculating the length from the benchmark) score building assessment of the final results acquired, the lookup for reserves of boost of the financial opportunity use efficiency. The qualitative characteristic of the financial likely of the place is the extent of its sustainable enhancement. Comparative evaluation tends to make it achievable to get into account all the important parameters of economic improvement which are critical.

We recognized the adhering to aspects in the structure of the financial probable: output possible, employment likely, money probable, investment potential and intake likely. In our feeling, this composition will make it possible for to assess the economic prospective of rural regions objectively. Because rural regions are regions, which key activity is the output of agricultural products and solutions, the composition of the generation opportunity of the territories consists of indicators of the agricultural sector advancement. At the identical time, the agricultural manufacturing has the necessity for manpower, fiscal, investment and other assets which presently are getting utilized or can be used in the sector.

Calculations of an integral indicator of the financial opportunity of rural parts ended up carried out on supplies of 44 municipalities. Through the evaluation the additive convolution of criteria was applied. Calculations by the proposed methodology are fairly time-consuming, in particular for huge dimensions of the focus on populace, consequently it is important to use specialized software package.

A in depth analysis of the output potential enables providing the characteristic of just about every municipality by sectors, pinpointing details, strengths and weaknesses, etcetera., nevertheless, the purpose of this research is to consider the financial possible of rural spots, which is composed of the production, labour, economic, investment decision and consumer probable. Improvement of the productive probable without the need of the advancement of all the other people is extremely hard, so it is also necessary to take into account their degree of improvement.

Labour likely can be analyzed as a source class, reflecting the labour means that can be utilised to resolve any difficulties, to achieve a certain purpose. In this respect, the labour possible can be viewed in relation to the particular person worker, to the business and to the culture as a complete. Getting the chance to use the present or to catch the attention of the further labour to the agricultural sector, which include individuals from other sectors, in the municipality is deemed by us as a factor of economic prospective progress of the agriculture sector.

The values attained by the score of the financial probable of rural locations can be divided into 3 teams. The 1st team contains municipalities with high economic potential, rating of which is 12 or much more. In the second team there are center stage financial possible places, the ranking worth is in the array of 8 to 12. The third team worth is much less than 8.

Consequently, the evaluation of the financial potential of rural locations enables:

– evaluating the real final result with the feasible a person and assessing the prospective of person territories, grouping them in accordance with their level of financial progress

– determining options to strengthen the performance of the use of the financial probable of rural areas, learning the causes of underutilization and on this basis acquiring measures aimed at maximizing of the economic possible of rural spots

– owning viewed as the rural places progress systems, working with the success acquired to figure out the businesses found in the territory with the ideal return on the use of the available materials methods and on this basis carrying out their condition and municipal guidance.