of the population to preserve the environment that meets the requirements of
sustainable development. To do this, you need to implement a corporate approach to
managing a country, a region as the only business system.
Specialists recognise that the necessary condition for the implementation of the
concept of sustainable development (especially for developing countries) is to provide
sufficient financial resources [19, p. 82].
With the corporate approach to managing the region, it is expedient to use the
communication between the competitive position of the corporation and the value cycle
of capital turnover already proved by specialists [20, p. 154].
The competitive position of the region characterises its place among other areas
in the country. It depends on the structure of the economy of the region, the
competitiveness of the goods of the enterprises of the region and their services, the
ratio of prices and costs for the production of products, the possibility of financing the
development of scientific and research activities, the formation of intellectual capital
of the region, its positive image.
The competitive position also affects the financial results of economic entities of
regions, their cash flows. The growth of profits and internal cash flows of enterprises
and organisations will increase dividends, increase the market value of their securities,
and fill the region's budget. The increase in the cost of securities expands the
possibilities of access to financial market funds, that is, the additional issue of shares
and bonds, loans. This situation allows us to form together with the undistributed
profits of enterprises and their depreciation funds necessary for the further
development of investment funds. With the help of investment funds, programs are
implemented that promote the strengthening or improvement of a competitive position.
Insufficient financial resources or ineffective use of them can lead to a
deterioration of the competitive position of the region.
First of all, public regulation of financial aspects of regional development is of
particular importance. Therefore, it is worth emphasising the financial component of
the general mechanism of public regulation of economic development. Formation of
the state budget and expenditures belongs to the sphere of fiscal regulation. But it
should be aimed at the realisation of the tasks of sustainable development of the
country, regions, which are defined by strategic plans. In turn, the reality of strategic
plans and the possibility of their implementation depends on the financial provision of
strategic management. Therefore, the financial and economic mechanism must be
formed and used in a coordinated manner, which will provide a synergistic effect of
their use.
According to David Guyman's definition of public finances, this is "an economic
sector that studies government activities and alternative means of financing
government expenditures" [20, p. 14].
- 604 -