Economic policy of formation and development of regional economic systems

The article considers theoretical and practical aspects of the formation and enhancement of regional economic policy aimed at the development of regional economic systems (hereinafter referred to as RES). Various approaches to defining regional economic policy, its goals, objectives and tools are analysed. Particular attention is paid to the role of the state in regulating economic processes in the regions and stimulating their development. The main areas of regional economic policy are studied, such as stimulating the economic potential of regions, supporting innovation, forming interregional relations and equalising the conditions for socio-economic development. A concept of balanced development of the RES based on the use of local resources, attracting investment and innovation as well as institutional reforms is proposed. The importance of cosidering the economic interests of business entities and the regional administration as well as the interests of the local community, is emphasised. Modern areas of regional economic policy are considered, such as budget federalism, development of new regions, clusterisation, and development of the territorial division of labour. The need to develop and implement an effective regional economic policy aimed at ensuring sustainable and balanced development of regions, increasing their competitiveness and improving the standard of living of the population is substantiated.