Home – Home – Jornals – Region: Economics and Sociology 2021 number 2

The article examines methodological problems of managing the social and economic development of municipalities, considers approaches to drafting a new concept of municipal management for socio-economic processes, and analyzes current approaches to studying problems of municipal management based on socio-economic modeling. We make a case for employing a systematic approach in municipal management and modern economic and mathematical tools to improve the efficiency of management decisions. We design methodological foundations and apparatus to model the economic management processes for municipalities as complex institutional systems. The article proposes a balance-optimization model to forecast and manage socio-economic development processes in municipalities. The proposed methods rely on the following assumptions. Municipal management is a complex multidimensional process that implies dealing with strategic and tactical objectives. Allowing for the long-term goals, the need to better balance decisions in municipal management culminates in the need to improve multifunctional tools. Municipal development is exercised over fiscal cycles equal to one calendar year. Each such cycle involves significant managerial decisions that affect how the budget will replenish and where the funds will be allocated in the current year and onward. They also influence the qualitative, non-financial indicators demonstrating the city development. The proposed model predicts municipal development indicators for the long term. We use a positive generalization for the model based on the case studies of two towns, Berdsk (Novosibirsk Oblast) and Kyzyl, to review how it is applied to the largest municipality in the Russian Federation, namely the city of Novosibirsk. The research results have shown that this model can be used to forecast changes in a municipality that follow certain types of managerial actions. Moreover, it is possible to calculate the indicators of municipal development in the process of fiscal cycles, where each contains significant management decisions that affect budget replenishment in a few subsequent years instead of just the following one, as well as influence the social and economic indicators of the city development.