Interaction of Regional Administration and Business in the Process of Regional Resources Utilization

Abstract

The authors state that in the 1990s in the context of absence of adequate sources of financing regional authorities activities, a peculiar mechanism of solving social and economic problems on the regional and municipal levels was formed. The substitution of the budget financial resources by the resources of administrative decisions has occurred. The mechanism of exchanging administrative decisions in favor of a certain businessman for his undertaking an obligation to solve a problem of regional or local development has been established. Under these conditions the state authorities have transformed from the guarantor of the economic agent rights into one of the agents trading in rights.