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GOOD GOVERNANCE APPROACH TO THE NATURAL RESOURCE MANAGEMENT IN MODERN ECONOMY

Klynovyi Dmytro

Candidate of Economics, Ph.D.

 Associate Professor, Senior Researcher, PI ''IEESD of NASU"

Petrovska Iryna

Candidate of Economics, Ph.D.

Associate Professor, the dean of the Economy and management faculty, KUMR

Kiev

Mykytenko Tetiana

Candidate of Economics, Ph.D.

Associate Professor, Department of Economic Analysis and AuditNational University of Tax Service of Ukraine, Irpen

 

GOOD GOVERNANCE APPROACH TO THE NATURAL RESOURCE MANAGEMENT IN MODERN ECONOMY

 

It is necessary to use modern approaches of natural capital management, which are based on accounting of natural capital wealth and capitalization of natural resources now. Thus, some researchers, such as L. Larush persists on making some essential adjustments to the economic theory of natural capital and take into account the abilities of the natural capital to create the cost without exhibit of the human labor. The Ukrainian representatives of scientific school of physical economy, for example S. Podolynskiy had also specified on this fact. It is also necessary to acknowledge that unlike other types of capital, in particular – financial capital, a natural capital possesses actual, but hidden usefulness which exists in hidden form. However, this fact was not taken into account by both researches. They considered, that any kind of wealth has only actually shown and represented features. As the result of it now the natural constituent is not represented valuably in the system of indexes of value of national wealth. The problem of the account of the cost of the natural capital in all goods and services is very actually in correspondence with the decisions of the world Summit in Rio de Janeiro – 2012 (Natural Capital Declaration). One of the well-known scientists-ecologists – R. Simonetti, Coordinator of the Sustainable Finance Program had noted that social-environmental policy will be one of the key directions of the work of financial structures and a global statement may demonstrate the commitment to work towards integrating natural capital criteria into financial products and services, as it was launched at Rio+20. This question is very actual to our country also. Thereof, it is necessary to take into account actual, but hidden and not shown usefulness, value features and system ecological characteristic in each type of resource - land, water, wood and mineral resources, and in ecological system capital, created by all set of productive force of natural-anthropogenous ecological systems, which comprise all available types of resources. For example, hidden and undervalued characteristics of the natural capital can be presented in virtual water, in the price of the economic wasted lands, in ground protection characteristic of timber plantings, in the risk factor in estimation of the mineral-raw materials capital. It is necessary to take into account the value and the cost of ecological system capital, which creates the conditions for self-reproduction of elements of the natural capital and provides the sustainable development of natural-economic systems. Conceptual innovation approaches of "green" and "blue" economy forms the basis of new management toolbox. It is determined that the modernization of managerial system of natural resources must provide creation of the high effective infrastructure of full-fledged attraction of natural resources in economic process through capitalization of them, including financial component, connected with corporative forms of natural resources management.

There is offered modernization of managerial system of natural resources through introduction of mechanism of the "good governance", conception of corporative social and ecological responsibility and introducing of the system of standards series ISO 14000, including standard of estimation of the ecological-cost-performance of management ISO 14045, with such parameters as an organizing structure and dispersion of responsibility in the system of corporative management, which is based on a mechanism of the public-private partnerships (PPP). Conception of Good Governance include participatory, decentralisation, following the rule of law, effective and efficient, accountable, transparent, responsive, equitable and inclusive models of management. Good governance is a term used in international development literature to describe various normative accounts of how public institutions ought to conduct public affairs and manage public resources. These normative accounts are often justified on the grounds that they are thought to be conducive to economic ends, such as the successful economic development. Different organizations have defined governance and good governance differently to promote different normative ends.

We recommend to introduce the T.O.T.E. cognitive model of Good Governance, which is based on mathematical models, authored by G.A. Miller, E. Galanter, and K.H. Pribram [1] in natural resource management. This model is based on effect of a cognitive process which must include monitoring devices that control the acquisition of the stimulus-response relationship.

The T.O.T.E. model is the self-control mechanisms in management tasking, which are explained in terms of both operations and monitoring processes. In this model each recurring operation would be associated to a monitoring process, to test if the intended control was met or not. Its premise is that a common algorithm for solving non-deterministic problems in a complex natural-economic system, is to test where the system is currently, then perform some operation that makes a change, then retest again, and to repeat this until the answer is satisfactory, at which point the process is complete and ends (or exits). TOTEs are often nested within other TOTEs, since as a means to meet a goal, they are applicable to sub-goals too. The generic TOTE structure is: Test to obtain some representation of the problem state in natural-resource management; Operate - intervene in some way to solve the problem; Test again to see if the desired result has been achieved. If it has not, loop back to operate. If it has: Exit – when problem is solved according to previously obtained format of results by the instrument of project management.

There is considered that basic approaches to modernization of managerial system according to Good Governance management model includes:

  • decentralization and introduction of cluster-corporative form of structural management in natural resources sphere,
  • implementation of the complex economic estimation of natural resources in the system mechanism of management of natural resources,
  • organizing of structure shifts with change of the property categories on municipal and corporative forms of property
  • introduction of the most latest instrument and forms of management – the securitization of natural resources, corporative, cluster, project and other innovation programming and economic methods of management of natural resources etc.

 

References

1. George A. Miller, Eugene Galanter, and Karl H. Pribram, Plans and the structure of behavior. New York: Henry Holt, 1960. - 226 p.

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