Page 97 - Azerbaijan State University of Economics

DIRECTIONS OF IMPROVEMENT OF REGIONAL POLICY
OF STATE IN MODERN ENVIRONMENT

deformation in some regions” [Chaguchshev and Sokolov. 2001: 271].

The basic principles of regional policy in our country is
reconstruction of economy of the regions, creation of market infrastructure

here, use of different forms of administrative and social management.
Mentioned above principles may be realized in following ways:

• Allocation of large scale governmental need on order base;

• Participation of different governmental structures in the various
investment projects. Application of competition and contractual systems

here would increase of optimization and quality of competition
environment. From this point of view the role of the government in

financing of such activities plays the crucial role. The more financial

funds are provided by the government, the larger scale projects are
implemented and more accelerated the projects are.

1. Regulation of economy based on application of clusters.

Application of the clusters in set-up of regional policy will allow
distribution of productive activity among the region in such a way, that

the total employment of capital and natural resources will be provided.
On other hand the industrial overload of developed regions should not be

accepted as normal case. In other words, the main purpose of the
regional policy is stimulation of new industry development in regions

with economic regress.

In Azerbaijan the objective of the state regional policy is an area
divided into economic-political regions. It includes administrative

divisions, local self-regulation authorities and collaboration mechanism
among them. If following tolls are applied in the regional policy, more

efficient outcomes can be obtained as a result:

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