On the other hand, the financial mechanism turns capital into income and return
on capital; it is an integral part of the economic mechanism. Financial decisions should
be made by an analysis of the sequence of economic phenomena that arise through the
actions of financial leverage and instruments.
Consequently, in today's conditions, at all levels of management, a financial
mechanism that can not be considered personally without a specific target orientation,
respectively, of the long-term development strategy and the prediction of chain
responses to its action, becomes of particular importance.
The general mechanism of public regulation of the economy is a system of
mechanisms that interact with each other. In this system, for a regional level, it is
expedient to allocate a financial and economic mechanism, which is a set of methods
of forecasting, strategic planning and formation of commercial relations, which will
promote the improvement of competitive positions of the region, implementation of
the strategy of ensuring its sustainable development. This mechanism should be
flexible, a system of tools and the levers that operate specific methods need to be
adjusted in line with the changes in the strategic objectives and the state of the
environment. His interaction with other components is presented in Fig. 1.
Figure 1. The interconnection between the components of the general
mechanism of public administration for the development of the region (PADR)
Mechanism of public administration of territory development
Public
administration
Organizational
mechanism
Financial and
economic
mechanism
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