Page 107 - Azerbaijan State University of Economics

DIRECTIONS OF IMPROVEMENT OF REGIONAL POLICY
OF STATE IN MODERN ENVIRONMENT

The sense of the economic methods is indirect regulation of

economic process with the regions. These methods include taxes,
discounts, loans, subsidies and etc. Indicated methods do not influence

the economic interests of the entities in direct way, however they make
the local authorities the support these interest within the existing legal

framework. Thus economic methods of regulations are based on

responsibilities of the entities – companies and organizations.
The other method of the direct regulation is governmental orders.

According to the current legislation, governmental orders can be made in
respect of acquisition of commodities, materials and services at account

of state or local budgets. The governmental orders are implemented

between governmental and market agencies and considers duties and
responsibilities of all involved sides. The basic principles, rules,

financing and placement of the governmental orders are defined by the
state legislation. The financing of governmental orders is limited and

defined by the approved state/local budgets. Foreign countries and firms
can act as interested parties in this process as well.

4. Behavior of entities of regional management and regional

economic interests
The behavioral pattern of regional management entities can be

identified through examination of their economic interests.
Regional economic interest is an economic interest of any entity

which has property in some particular area. Regional interests have
objectivity as other groups like companies and organizations, and formed

under the influence of activity of population living in the regions, their

habits, motives and preferences. These interests are directed to formation

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