Sustainable Development Of The Territory. Concept Foundation

Abstract

Studying the concept "sustainable development of the territory" is relevant and determined by the current economic and social situation. To make management decisions for minimizing the consequences of self-isolation and quarantine measures in most countries of the world is necessary to consider approaches to the concept “sustainable development of the territory”. Studying the works describing the points of view on this issue allowed to draw the following conclusions: "sustainable development of the territory" should be defined through management approaches, since the sustainable state of the territory is the result of management; the concepts “sustainable growth”, “sustainable development” and “territory security” should be perceived as boundary conditions recommended to achieve as a result of management. In the article the concept of “sustainable development of the territory” is considered from the point of view of four approaches to management: functional, process, system and situational. The reason for this point of view is only one: the sustainable development of the territory is implemented as a result of management and the methods used depend on the chosen approach. A large number of definitions of the concept “sustainability” as stability and immutability, as balance, as well as ability to development and self-development are analyzed. The results of the research allow to derive our own definition of “sustainable development of the territory” as a result of management using a systematic approach in order to maximize the quality of life of the population of the territory without currently visible damage to future generations.

Keywords: Sustainable developmentsustainable growthterritory security

Introduction

Sustainable development of the territory makes it possible to overcome crisis situations in the economy and social sphere. However, the current situation in the world is unique at the moment. In most countries of the world, a COVID-19 quarantine has been declared, and the oil price has collapsed below zero. The COVID-2019 pandemic and the subsequent global crisis, which has been compared to the Great Depression, made it clear that the current model of the world economy is outdated and cannot respond to the challenges of the twenty-first century. Losses from the stagnation of production and commercial activities will be huge, compounded by world markets crisis related to the oil trade. Such shifts will lead to a radical restructuring of production and increased competition. The world will inevitably change and whether it will have enough resources to return to its previous “pre-viral” state is unknown. How long these resources will last is also unknown. Both Russian and international experts agree on one thing: the situation affects globalism, that is, the policy of integrating the economic activities of countries and continents. The disruption of supply chains has brought many businesses to a standstill, and the difficulties of quickly establishing production of important equipment have become apparent. We have to say that the economy is defenseless against a challenge that can happen again at any time. The governments of different countries have accepted that human lives in this situation are more important than the GDP loss. Based on this and the available health resources decisions were made to introduce quarantine and self-isolation of citizens. In Sweden, where the number of artificial ventilation devices is sufficient, quarantine and self–isolation were not declared, while in China, the penalty for entering a public place for a person who knows that he has a coronavirus is the death penalty. And of course, economic measures have been introduced. On the one hand, these are fines for violating the regime of self-isolation, on the other hand, “credit holidays”, non-working paid days for working citizens, exemption from rent, etc. Whether these measures are sufficient, will be clear only at the pandemic end, however, the development of understanding the concept “sustainable development of the territory” will allow to predict development of a situation before making management decisions.

Problem Statement

It should be noted that there is a large number of definitions of the concept “sustainable development of the territory”. We believe that the appropriate definition of the concept allows using the right methods to describe the development of the situation and having a realistic economic and social model of the territory. The result of the management decision will depend on what will be the basis of the concept and its criteria as well as characteristics. We consider the definitions of the concept “sustainable development of the territory” from the point of view of using a particular approach to management. The reason for this point of view is only one: the sustainable development of the territory is implemented as a result of management and the methods used depend on the chosen approach.

Research Questions

The study raised the following question: how scientific approaches to management (functional, process, system and situational ones) result the sustainable development of the territory. Depending on the approach to management, which socio-economic methods are used, this result is obtained, such a model of the territory is produced. This research allows to define the concept “sustainable development of territories” as the result of management using a systematic approach in order to maximize the quality of life of the territory's population without currently visible damage to future generations.

Purpose of the Study

The purpose of this work is to study scientific approaches and theoretical foundations to the concept of “sustainable development of the territory”, which allows using the right methods for describing the development of the situation and having a realistic economic and social model of the territory. To understand the concept "sustainability" as stability and immutability, as balance, as well as ability to development and self-development a large number of definitions were analyzed. Development of understanding the concept “sustainable development of the territory” allows to predict development of a situation before making management decisions. As sustainable development of the territory is implemented as a result of management and the methods used depend on the scientific approach, we consider four approaches to management: functional, process, system and situational.

Research Methods

The concept of sustainable development was formulated in 1992 at the UN conference on environment and development in Rio de Janeiro as a way to overcome the main environmental threat to modern civilization, which existed in the form of a theoretically justified danger, recognized by a relatively narrow circle of scientists and politicians and associated with overpopulation, with irreplaceable expenditure of natural resources and environmental pollution. However, some scientists argue that there is not yet such a concept. They said, that there are certain ideas that have received general recognition and are recorded in official political decisions (Begun, 2012), as well as in the reports of economic entities (Sorokina, 2012). The study of the foundations of sustainable development from the perspective of the so-called “green” economy is becoming more and more widespread (Kuznetsova et al., 2017). In addition, the concept of sustainable development of the territory can be differentiated taking into account the forming industry and sphere of activity for the territory. For example, the impact of sustainable development of tourism on the sustainable development of recreational territories (Rubtsova, 2014). It is also necessary to take into account the possible interpretations of the concept under study, depending on scale (Meteleva, 2007) or level of the territory (Mozulev, 2006).

The sustainable development of the territory is possible as a result of extraction, production, distribution and transformation of the territory's resources available to the management subject. We emphasize four approaches to management: functional, process, system, and situational (Ogloblin & Sokolova, 2018). Next, we consider the definitions of the concept “sustainable development of the territory” from the point of view of using one or the other approach to management. The reason for this method is only one: the sustainable development of the territory is implemented as a result of management and the methods used depend on the chosen approach.

Findings

Thus, it can be argued that sustainable development must be determined through the use of management approaches, and sustainable growth and territorial security only add boundary conditions to the approach we propose. Moreover, any boundary conditions can be chosen, and not only those that lead the territory to a state of sustainable growth, development or security. Below we provide exactly such definitions with a list of boundary conditions for the results of territory management.

Menshchikova and Kolesnichenko (2013) gives an extended interpretation of sustainable development of rural areas: stable development of rural communities and ensuring the fulfilment of national economic functions (food production, agricultural raw materials, other goods and services and public goods, preservation of rural lifestyle and rural culture, providing recreational services, social control over the territory, the preservation of historically developed landscapes), and the expanded reproduction of the population, mouth level and improved quality of life; maintaining ecological balance in the biosphere. According to Matyushkina et al. (2013), sustainable development of rural territories should be understood as a purposeful process of transition of the rural community to a qualitatively new level, ensuring expanded reproduction of resource and production potential, achieving competitive advantages, improving the quality and standard of living of the rural population, preserving and increasing natural resources based on strategic factors of development and self-development. Kovalenko (2012) in his works focuses on the continuity of the process of sustainable development in rural areas, in which the overall vector of change is characterized by increasing opportunities to meet the needs of current and future generations of rural residents in the long term while maintaining a balance of interests, harmony between the economic, social and environmental subsystems. Prokhorova and Rubaeva (2013) highlight as the main factors of sustainable development of rural territories a stable increase in the production capacity of enterprises and improvement of socio-cultural, housing and other conditions of development that affect the improvement of living standard of the population of rural territories. Uskova (2009) believes that the concept “sustainable development” characterizes the type of economic development that ensures the reproducibility of limited resources and the quality of economic growth. Finally, we believe that it is impossible to define separate functional areas of "sustainable development of the territory" without defining common goals for managing the territory, as Ulitskaya (2014) does.

Conclusion

From the point of view of land marketing, sustainable development refers to the well-being and prosperity of a society that ensures:

• providing the population with places for comfortable and decent living, expanded reproduction of the population, increasing the synergy of the level and quality of living conditions, preserving the historically established way of life and culture of land use;

• providing the population with the employment opportunities to produce public goods: food, agricultural raw materials, non-agricultural goods and services, etc.;

• providing the population with places for recreation, recreational services, preserving historically developed landscapes, as well as maintaining ecological balance in the biosphere.

The results of the theoretical study allow us to define “sustainable development of the territory” as the result of management using a systematic approach in order to maximize the quality of life of the territory's population without currently visible damage to future generations.

References

• Abalkin, L. I. (1994). Ekonomicheskaya bezopasnost' Rossii: ugrozy i ikh otrazheniye [Economic security of Russia: threats and their reflection.] Issues of Economics, 12, 4-13. [in Rus]
• Agibalov, A. V., Kleymenov, D. S., & Romanchenko, O. V. (2015). Teoreticheskiye aspekty ustoychivogo razvitiya sela. [Theoretical aspects of sustainable rural development]. Transport Business in Russia, 2, 52-56. [in Rus]
• Begun, T. V. (2012). Sustainable development: definition, concept and factors in the context of single-industry towns. Paper presented at the II Int. Sci. Conf. on Economics, Management, Finance, 2012-December (Perm: Mercury), 158-163. https://moluch.ru/conf/econ/archive/57/3117/
• Blaug, M. (2004). Methodology of Economic Science, or as Economists Explain. OMEGA-L.
• Chaykovskaya, N. V. (2005). Problemy ekonomicheskoy ustoychivosti ekonomicheskoy sistemy regiona. [Problems of economic stability of the economic system of the region.] Regional Economy: Theory and Practice, 6, 33-35. [in Rus]
• Druzhinin, A. I., & Dunaev, O. N. (2007). Financial Stability Management. USTU.
• Gaponenko, A. L. (2005). Strategicheskoye planirovaniye sotsial'no-ekonomicheskogo razvitiya regiona. [Strategic planning of socio-economic development of the region]. Spatial Economics, 4, 40-53. [in Rus]
• Gordienko, D. V. (2010). Perspektivy povysheniya urovnya ekonomicheskoy bezopasnosti v Rossii. [Prospects for increasing the level of economic security in Russia]. National Interests: Priorities and Security, 15, 33-44. [in Rus]
• Ilyasov, S. M. (2001). Stability of the Regional Banking System (the Content and Organization of Management). Makhachkala.
• Kalinchikov, M. Yu. (2005). Teoreticheskiye i metodologicheskiye osnovy kontseptsii ustoychivogo razvitiya regiona. [Theoretical and methodological foundations of the concept of sustainable development of the region.] Regional Economy: Theory and Practice, 9(24), 14-17. [in Rus]
• Kolomiychenko, O. V., & Rokhchin, V. E. (2003). Strategic Planning of Development of Russian Regions: Methodology and Organization. Nauka.
• Kornai, Y. (1996). Sustainable growth as the most important priority (macroeconomic issues and economic policy of the Hungarian government). Economic Issues, 10, 23-38.
• Kovalenko, E. G. (2012). Mechanism of sustainable development of rural territories of the region. Modern Issues of Science and Education, 2, 210-219. http://www.science-education.ru/102-5823
• Krasnova, T. G. (2000). Ekonomicheskaya stabil'nost' regiona: problemy teorii i praktiki. [Economic Stability of the Region: Problems of Theory and Practice.] Irkutsk. https://www.dissercat.com/content/ekonomicheskaya-ustoichivost-regiona-problemy-teorii-i-praktiki [in Rus]
• Lidin, K. L. (2008). Behavioral finance and the economics of emotions. Modern Technologies. System analysis. Modeling, 4(20), 148-153.
• Livshits, A. (1992). The state in the market economy. Russian Economic Journal, 11, 123-125.
• Lopatnikov, L. I. (1990). Economic and Mathematical Dictionary. Znanie.
• Magomedov, I. S. (2011). Improving the Mechanism of Sustainable Development of Rural Territories: on the Example of the Republic of Dagestan (Doctoral dissertation). https://cyberleninka.ru/article/n/sovershenstvovanie-sistemy-sotsialno-ekonomicheskogo-razvitiya-selskih-territoriy-respubliki-dagestan
• Makarova, E. V. (2006). Stabil'nost' ekonomicheskoy sistemy v usloviyakh globalizatsii mirovoy ekonomiki. [Stability of the Economic System in the Conditions of Globalization of the World Economy.] Ulan-Ude. [in Rus]
• Matyushkina, I. A., Mikhaleva, O. M., & Gerasimenkova, S. V. (2013). Programmno-tselevoy podkhod v upravlenii ustoychivym razvitiyem sel'skikh territoriy. [Program-target approach in managing sustainable development of rural territories.] Bulletin of Bryansk State University, 3, 75-78. [in Rus]
• Medkov, A. L. (2012). Formation of a Mechanism for Sustainable Development of Rural Territories. https://cyberleninka.ru/article/n/formirovanie-ekonomicheskogo-mehanizma-ustoychivogo-razvitiya-selskih-territoriy
• Menshchikova, V. I., & Kolesnichenko, E. A. (2013). Gosudarstvennaya politika ustoychivogo razvitiya sel'skikh territoriy: soderzhaniye, otsenka effektivnosti, klyuchevyye napravleniya sovershenstvovaniya. [State policy of sustainable development of rural territories: content, performance assessment, key areas of improvement]. Bulletin of Tambov University, 9(125), 34-43. [in Rus]
• Merenkova, I. N., & Pertsev, V. N. (2010). Rural tourism and diversification of the economy of rural territories. Agro-industrial Complex: Economy, Management, 7, 43-46.
• Meteleva, E. R. (2007). Strategic assessment of the role of cities in the context of globalization. News of Irkutsk State Academy of Economics, 5(55), 92-95.
• Mishchenko, I. V. (2011). Theoretical issues of formation of sustainable development of rural settlements. Bulletin of Tomsk State University, 346, 123-125.
• Mozulev, S. N. (2006). Cluster approach as the basis of management of competitiveness of the region. News of Irkutsk State Academy of Economics, 4(49), 26-29.
• Ogloblin, V. A., Malanina, Yu. N., Vikhorev, V. G., & Vikhoreva, M. V. (2019). Prospects for development of small innovative mechanical engineering enterprises on the territories of advanced development. IOP Conference Series: Materials Science and Engineering, 537, 42071. https://doi:10.1088/1757-899X/537/4/042071
• Order of the Government of the Russian Federation “On Approval of the Concept of Sustainable Development of Rural Territories of the Russian Federation for the Period up to 2020” (2010). http://www.mcx.ru/
• Ozina, A. M. (2006). Methodology and methods of evaluation of boundary conditions for sustainable development of the region's economy. Scientific Notes, 6, 304-310.
• Petrikov, A. V. (2001) Sustainable development of rural areas in Russia and directions of scientific research. Agro-industrial Complex: Economy, Management, 6, 3-5.
• Polyak, G. B. (2008). Byudzhetnaya sistema Rossii. [Budget System of Russia]. UNITY-DANA. [in Rus]
• Prokhorova, L. V., & Rubaeva, O. D. (2013). Sustainable Socio-economic Development of the Village of the Chelyabinsk Region in the Conditions of Russia's Accession to the WTO. Chelyabinsk State Agrarian Academy.
• Reimers, N. F. (1990). Upravleniye prirodopol'zovaniyem: slovar' [Nature Management: Dictionary]. Mysl. [in Rus]
• Rubtsova, N. V. (2014). The impact of sustainable development of recreation and tourism on the sustainable development of the region (an empirical study on the example of the regions of the Baikal region). News of Irkutsk State Academy of Economics, 5(97), 47-60.
• Senchagova, V. K. (Ed.) (2005). Ekonomicheskaya bezopasnost' Rossii: obshchiy kurs. [Economic Security of Russia: General Course]. Delo. [in Rus]
• Shelomentsev, A. G., & Kalashnikov, V. D. (2008). Prognozirovaniye effektivnosti sotsial'no-ekonomicheskikh preobrazovaniy v territorial'nykh sistemakh. [Forecasting the Effectiveness of Socio-Economic Transformations in Territorial Systems]. Institute of Economics, Ural Branch of the Russian Academy of Sciences. [in Rus]
• Shumakova, O. V., & Rabkanova, M. A. (2014). Sustainable development of rural territories: concept and essence. Fundamental research, 8, 1643-1646.
• Sokolova, L. G., & Ogloblin, V. A. (2018). Sovershenstvovaniye metodov upravleniya promyshlennymi predpriyatiyami v kontekste upravlencheskikh podkhodov. [Improving the management methods of industrial enterprises in the context of management approaches]. Baikal Research Journal, 9(1). https://doi:10.17150/2411-6262.2018.9(1).8 [in Rus]
• Sorokina, E. M. (2012). Formirovaniye printsipov otchetnosti po pokazatelyam ustoychivogo razvitiya [Formation principles of reporting indicators in sustainable development]. News of Irkutsk State Academy of Economics, 3(83), 19-25. [in Rus]
• Terekhov, L. L. (1983). Cybernetics for Economists. Finance and Statistics.
• Ulitskaya, N. Yu. (2014). Marketing management of land resources in the context of sustainable development of Russian territories. New View. International Scientific Bulletin, 5, 275-284.
• Uskova, T. V. (2009). Management of Sustainable Development of the Region. https://elibrary.ru/item.asp?id=19157570
• Yesekina, B. K., & Sapargali, Sh. (2008). On the issue of assessing the stability of socio-economic systems. Economist, 8, 42–46.
• Zabortseva, T. I., Kuznetsova, A. N., Violin, S. I., & Sysoeva, N. M. (2017). The potential of the “green” economy in the socio-economic development of the Irkutsk region. Geography and Natural Resources, 4, 154-161.