Benchmarking in the Economic Development Management System of the Amalgamated Territorial Communities

Abstract

Benchmarking as a tool for the effective management of the economic development of a voluntarily amalgamated territorial community (ATC) is researched. The effective use of “benchmarking” technology (based on creativity and effective use focusing on the best practices for further synergizing results) is an inalienable prerequisite for the successful development of newly territorial systems. The expediency of introducing a benchmarking tool through a change in the public administration model is substantiated. The authors identify the key issues that the territorial entities, as independent market players, face as a result of the reform implementation of the territorial organization of power. The emphasis is on the advisability of the three-sector local economic development (LED) management, based on cooperation between the public sector (government), the economic sector (business) and the non-governmental sector (community) to improve the quality of life and the community’s economic potential. The selection criteria of the LED stakeholders that can become the real change drivers for better are studied. The results obtained by studying the current state of an ATC in comparison with others are summarized in the economic profile of the community. Factors that determine the feasibility of compiling an economic profile are identified and, at the same time, are considered as a kind of incentive for all participants in participative planning to become users of this information. The incentives are grouped according to the LED stakeholders’ groups. Possible LED tool sets are identified. Arguments are presented in favor of such LED tools as creating the agricultural cooperatives, establishing the local development agencies, and developing the territories of business presence. The components of project proposal, as a basis for project evaluation from the standpoint of economic and social utility for the community, are determined.