Page 101 - Azerbaijan State University of Economics

DIRECTIONS OF IMPROVEMENT OF REGIONAL POLICY
OF STATE IN MODERN ENVIRONMENT

2. Basic elements of regional development potential

The regional development potential consists of following elements:
primary capacity of the region, development willingness of regions’

components, application of technological and managerial innovations, and
level of preparation of internal social economic and democratic subsystems.

The basis contents of regional development potential are its industrial

development, social factors, financial determinants, recourses capacity.
Indexes showing the industrial development of region reflect its

industrial capacity as well. This group of indexes includes the following:
output volume of industrial product, industrial capacity of the region,

investment volumes (capital investments), investment activity and

amortization of fixed assets and etc. Regions can be divided into three
groups according to their industrial development level.

First group includes regions with big cities and developed
industries.

The second group includes the regions with average level of
industrial development. This group includes both developing and

attractive from investment point of view regions and depressive ones.

The third group includes the regions with very low industrial
development level. The majority of regions here are agricultural and

economically low developed. However, there can be high investment
activity and high rates of fixed asset amortization along with high

industrial potential.
The lower development indexes of some particular region the

higher efficiency will be derived from any applied project there. At the

same time in order to improve the quality of technology base within

101