FINANCIAL FOCUSING ON ECONOMIC DEVELOPMENT SUSTAINABILITY

Abstract

The contemporary state intervention in the form of so-called monitoring economy (Siegel) implies a complementary response of the public sector to the economic actions of the private sector taken through supporting the development of the propulsive sectors, technical progress incentives, infrastructure financing, fiscal benefits, subsidies, and so on. In this context, modern states pay special attention to the economic development of underdeveloped areas aimed at harmonizing global, structural, sectoral, regional, inter-regional, sub-regional and local development. To accelerate the development of underdeveloped regions in developed industrial countries numerous mechanisms are used: subsidies, grants, lower interest rates loans, fiscal incentives and benefits, industry-targeted sales of land and buildings in undeveloped areas at affordable prices, providing benefits to the industry in purchase of scarce raw materials, determining preferential tariffs for public service obligations of state-owned enterprises to invest in undeveloped areas, administrative ban on new investments in highly developed and urban overcrowded regions, providing government subsidies in various forms (premiums for the purchase of capital equipment, premiums for hiring new workers, co-financing research). The paper hereof analyses the experiences of European countries that can serve the creators of the economic policies of the neighboring developing countries in order to promote regional economic development and equality.