The socio-economic problems of balanced regional development of RA

The region is becoming the main subject of economic and political relations. In this situation it is very important to determine the specificity and priorities for implementation of regional policy, taking into account the comparative advantages, the particularities of historical and cultural developmentof a given region. Regional (socio-economic) policy is a sphere of state activity for managing political, economic, social and environmental development of the country in the spatial, regional aspects, which reflect both the relationship between the state and the regions, and regions with each other.The aim of the study is to explain the reasons of disproportionate socio-economic development of the regions of Armenia, the assessment of its impact, the study of the institutional framework of regional management, level of decentralization, development of practical proposals for mitigation or neutralization of existing disbalances and disparities, as well as the development of a „Regional Development Model of RA“. For the implementation of mentioned objectives in this study it has been identified the problems of balanced regional development andhas been explored the potential of socio-economic development of RA. On the basis of thirteen socio-economic indicators a rating classification of regions has been done, the analysis of which made it possible to reveal the problems of the economic strategy of our country at this stage. For the qualitative analysize of regional development of public life we have also counted anIndex of Territorial Development. It has also been carried out an empirical study of regional proportionality and decentralization. The obtained results provide sufficient evidence to state that in order to mitigate the territorial disbalances and gaps between communities, as well as to stimulate the economic growth the state has to give the communities some degree of autonomy and go by the way of decentralization. In the same time during the financial equlizationthe state must take into acount the added value formed in the community.Through a sociological survey it has been studied the business environment of the region and operating conditions of farms.It has also been developed the "Regional Development Model of RA," in which major cities of each region should become centers of economic growth.

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