Tsalan M. Organizational and economic mechanism of forestry development in the region

The dissertation summarizes the theoretical principles of the forestry study in the region. The directions for improving the organizational and economic mechanism of its development have been suggested in the thesis as well. The object of the study is the processes of forestry development at the regional level. The subject of the analysis is theoretical aspects and applied principles used for improving the organizational and economic mechanism of forestry development in the region. The first chapter of the study considers the essence, specifics and features of such basic concepts as "economic activity" and "entrepreneurial activity". The comparison of their principles has been done and the role of state enterprise in the economic system of the country was outlined as well. This is preconditioned by the new trends in national and international economic environment and the formation of a new paradigm of competitive development in a globalized environment. It has been scientifically proved that in present situation forestry activity of the region is a commercial economic activity, requiring both the reconsideration of the principles of forest management and its orientation towards the competitive development. The dissertation summarizes the factors being formed at the state and regional levels and influencing the implementation of forestry activities. The concept and the components of the organizational and economic mechanism of forestry development in the region providing its qualitative changes in terms of balancing the social, economic and ecological interests of the region both in the present situation and in the future have been defined. The second chapter of the thesis explores the features of forestry development in the Transcarpathian region and its role in the regional economy. The analysis of the industry's contribution to the creation of the GRP area points to the need of stimulating the development of forestry activities in the region. It has been determined that the forestry of the region is one of the sources of the revenue part of the local budget. Insufficient usage of the potential of the sphere of secondary use in the area is evident. To determine the factors hampering the development of forestry activities in the region and necessary supporting measures, the assessment of the forestry development by means of surveying the managers has been carried out. Among these factors the following should be isolated, and namely: insufficient consumer demand, high level of taxation, lack of financial support from the authorities, poor material and technical base, staff turnover and the lack of skilled labor resources, the problem of infrastructure maintenance of forestry activities, frequent changes in legislation. Supporting means are represented by the promotion of equipment leasing, the support of innovation activity, the promotion of foreign economic activity. Forestry rating was calculated according to the complex indicator by the method of distance to the ethalon. The results of the calculation of this indicator and the distribution of forest holdings into groups showed that their positions in the rating have changed, their number in groups was not constant. The distribution of forest holdings in accordance with their location in the natural and economic zones of the Transcarpathian region has shown that this factor is not determinative in their development. The third chapter of the thesis suggests the directions for improving the forestry activities based on activation, optimization, and diversification of forestry activities. The cluster model of forest management organization has been proposed. It should become the platform for cooperation between business entities, regional authorities, representatives of education, science and the public to ensure their competitive development. The results of the study have pointed to the need of the development of a regional forestry development program in the Transcarpathian region. It should take into account regional specificity and be oriented towards the development of forestry business in the region. This can be achieved by means of the development of recreation and tourism in the forest, the usage of the potential of the region for the development of the forest subfields. Activation of forestry activities creates the need of forestry farms in informational and consulting services, which can be provided through the establishment of information and consultation center.