Page 102 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

already developed regions huge capital investments are required to be

made into the existing assets.
Continues development and improvement of infrastructure in the

regions should be always in agenda of the government. Thus the
prosperity of population in the regions (market infrastructure,

environmental monitoring, health, science and education, culture, trade,

public catering, public transportation, telecommunications, agriculture,
construction, modern conveniences, household services, industry and

etc.) depends on it level of development. In his book named “Strategic
Management” Russian scientist R.A. Fatkhutdinov expressed the

following opinion: “the higher development level of infrastructure in the

regions, the more efficient outputs are generated by the industry (there
will be not congestions in transportations and markets), the higher level

of professionalism will be gained, the better psychological condition will
be observed within personnel the better health conditions and safety will

be obtained. The higher such activities, the larger amounts will be
withdrawn from business to budget of the region. The last point plays the

curtail role in development of the region” [Fatkhutdinov. 1999: 416].

The extend of social development in region can be measured by ratios
like income per capita, migration turnover, unemployment and other

demographic indexes. Standard of life of population highly depends on
difference money determinants. The less population in the regions the

higher infrastructure provision is in place. Such situation can be observed in
the regions with high migration rates. Increase in migration rates in the

depressive regions depends on reduction of production realms, expenditures

on the social infrastructure, transfer of production to the hour base and etc.
Structural unemployment affects not only the standard of life, but also

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