Main tasks and targets
In order to be economically efficient and to develop at a high pace, the government and the regional authorities have to develop the strategy of the economic development basing on the changes they want to make in the regions. This strategy should include the activities in the framework of social economy.
The main tasks should be:
- formation of the strategic direction of the region’s development;
- definition of the place of the region in terms of the labor split;
- choice of the vector of the regional development of the social economy in the framework of the country.
The fulfilment of these tasks will make the usage of the social economy the most effective and it will leverage the competitiveness of the region. The target of the strategy should be the improvement of the well-being of the inhabitants of the region and to increase the capital of the region.
Nowadays the companies, as well as the regions, want to differentiate from each other and occupy the niches on the market with the lowest competition and the highest possibility of good financial results. The correct strategy will ensure a fast development of the region as its resources will be used the most effectively.
Crisis and social economy
The social economy becomes more important in the crisis and post-crisis periods, as in this period of time the quantity of unprotected inhabitants increases, the unemployment growth and special measures should be taken to help the people survive. Thus, in 1934 Great Britain adopted a law aimed at the help for the problematic regions, mostly those with outdated industry, which had suffered a lot from the crisis. At the same time, the USA adopted Tennessee Program, which was the first complex governmental program aimed at the development of the region. The target was to effectively use the resources of the Tennessee Valley to solve vexed social problems of the region. The strategy involved the usage of the effective types of activity in order to improve the well-being and the level of life of the people of the region. The authorities of the region targeted the building and exploitation of the system of waterworks for different purposes, the production and allocation of the electricity, the development of the agricultural sector basing on its electrification, the improvement of the quality of life and the environment as well as of recreational resources, the development of the cities and towns of the region. This strategy turned out to be a success and the region started to gain its economic importance.
So, the strategy of the development of the social economy in the regions is of high importance, especially in the times of crises or after it. There is no use developing the sectors of the economy which are not supported by the resources in the region. It is always more efficient to concentrate on the resources of the region in order to make them a competitive advantage of the region. The authorities should also analyse the social problems of the region and try to find the ways to solve them, which will also have a positive impact on the society.