Interaction of the Government and Business in Solving Environmental

and Socio-Economic Problems of Russian Regions

OKSANA

MOMOTOVA

North Caucasus

Federal University

Stavropol

RUSSIA

GALINA

Stavropol

Federal University

Stavropol

RUSSIA

VALENTINA

PARAKHINA

North Caucasus

Federal University

Stavropol

RUSSIA

tools. To do this, the team of authors had to revise the methodological approach to the formation of an integral

indicator that characterizes the interaction level between government and business from the standpoint of

updating its tools, implementing the tripartite interaction aspect considering the growing role of society.

Additionally, to introduce an environmental interaction component in the format of a national environmental

rating. The quality of interaction between government and business in the partner model, in authors’ opinion,

could be characterized through the development level of relevant interaction tools. Based on the identification

of modern trends in the interaction between government and business, the authors substantiate the expediency

of adjusting the methodological approach to assessing the level of interaction between government and

business: emergence and growth of the role of the third party of interaction – society; strengthening the effect

of interaction through the complex use of tools; considering environmental factors as an integral part in

geometric mean, which allows to update a set of significant interaction tools constantly depending on the real

situation with interaction in the country and regions.

Key-Words: government, business; interaction tools; interaction assessment; environmental rating; region.

Received: August 12, 2021. Revised: March 13, 2022. Accepted: April 15, 2022. Published: May 6, 2022.

1 Introduction

The interaction between government and business

covers all new areas and areas, while developing

the integral indices, which also defines which areas

of interaction will develop rapidly, since the

assessment always performs control and regulatory

functions.

Previous studies by the team of authors

demonstrate that the partnership model is the main

interaction model between government and

business in modern practice. In the course of the

study, the team of authors identified forms (tools)

of interaction between government and business

non-profit organizations (NPO), and corporate

social responsibility of business (CSR). It should be

noted that CSR has an implicit interaction nature

between government and business to a greater

function is related to the involvement of the

population in the interaction between government

and business as a third party and an active

participant: joint setting of development priorities,

selection of projects for financing, projects' co-

financing, participation at the stage of its

implementation as an executor, project monitoring.

Of particular relevance is the interaction between

government and business in environmental matters,

which led to the need to take this aspect of

Russian regions. According to the authors, the

problem can be solved by recognizing the

importance of tracking the dynamics and constantly

updating the composition of the interaction tools.

Methodological substantiation of this problem is

seen by the authors in the use of a modified integral

index. Today, for example, the interaction subject

questionnaire method in terms of its quality is

widely used, which, in our opinion, is not of a

systemic nature. The project approach to assessing

between government and business within its life

cycle. As an alternative to using an integral index,

it is possible to consider construction of a factorial

model of interaction. But, according to the team of

authors, this tool is more complex than expert

assessments and extrapolation of trends, which

have been used in the process of work with the

integral index. Probably, the use of factor analysis

will be the next step in the study of the stated topic.

and tools for interaction between authorities and

business structures. A great contribution to the

government and business [7], [10], [20], etc.

Methodological approaches to the issues of

assessing the interaction between government and

business structures were considered in the works of

many domestic researchers [3], [13], [15], [21], [9]

and others.

However, interest in assessing the interaction

level between government and business is not

weakening and is becoming especially relevant

with developing approaches to interaction, the

2 Methodology

Based on a preliminary critical discourse analysis

of the opinions of authoritative researchers, the

article justifies expediency of assessing the

interaction level between government and business

based on the breadth of representation and the

formation level of its individual forms (tools). The

team of authors analyzed the statistical reviews

prepared by the Federal State Statistics Service, the

a logical-thinking analysis and based on previous

studies, the team of authors found that a partnership

model of interaction between government and

business structures is inherent for all regions of the

Russian Federation, the differences are due to the

degree of its development. Based on a comparative

analysis of the manifestation level of significant

interaction tools between government and business

structures in the selected regions, the authors drew

conclusions regarding the development degree of

of the didactic multidimensional tools technology,

particularly the formation of a logical-semantic

integral criterion for the subject under study based

on the correlation-regression analysis and the

method of extrapolation of trends. Thus, noting the

interaction between government and business as a

developing phenomenon, the team of authors

diagnosed the emergence of new tools for

interaction and the strengthening of its qualitative

characteristics, as well as the transition to a

tripartite nature of interaction with an increase in

the society's role. Along with an increase in the

In particular, the researchers, using the

correlation and regression analysis methodology,

determined that the exponent acts as an

approximating function for each of the components

in the integral criterion. Using an exponential

approximation to extrapolate the identified trends,

the authors obtained the projected values of

individual indices as part of the integral criterion,

and then calculated the projected value of the

integral criterion using the geometric mean.

mean used in the methodology for calculating the

integral indicator involves the integration of

various interaction forms between government,

business, and the population to derive a single

comprehensive assessment and give weight to the

development and diversification of relevant

instruments. It should be noted that the authors

consider the main purpose of forming ratings as to

give importance to the problem and individual

authors proposed to introduce the assessment of the

interaction between government, business

developed PPP is in the Krasnodar Krai. As it can be

projects' implementation. At the same time, priority

in calculating this factor is given to the regions

implementing long-term projects under concession

agreements and agreements on PPP, MPP with the

largest volume of contracted investments.

Source: Compiled by the authors based on the materials [18].

2019, and dropped to 20th in 2020.

Analyzing the rating's dynamics, it can be said

that in 2020 there was a decline in the IB index in

each region under consideration associated with the

Fig. 3: Competitiveness rating of public procurement of regions of the Russian Federation for 2018-2020

government and business as CSR is being

implemented in the Stavropol Krai. Socially

significant events in the region involve both large

corporations that seek to increase the loyalty of

social entrepreneurship (Figure 4).

Note - Compiled by the authors based on the materials [17].

As it can be seen, the Krasnodar Krai occupies a

The Krasnodar Krai was included in one of the

“Regions with an average level”, and in 2019 it

it can be noted that the NPO support level in the

regions under study has a positive trend in 2020.

Next, the regulatory impact assessment (RIA)

on the territory of the Stavropol Krai will be

analyzed. RIA is considered the core of regulatory

policy [5].

authorized body, which ensures publicity and

transparency of this procedure. Undoubtedly, this is

one of the interaction forms between government

and business structures.

Let's consider the rating position of RIA in the

region in relation to neighboring regions (Table 2).

Source: Compiled by the authors based on the

materials [5].

According to the Methodology of the Ministry

Stavropol Krai has been among the regions with a

good level of RIA receiving from 60 to 79 points

and overtaking such regions as Rostov and Saratov

regions.

Since the relevance of the environmental agenda

is growing every year and all ongoing investment

projects and public initiatives necessarily include

to track the dynamics of the environmental state

and interaction between government and business

structures in environmental protection issues in the

Histograms indicate the positive dynamics of

three years) and the Stavropol Krai (by 12.5% over

three years).

Thus, it was revealed that the main interaction

types between business and government in the

Stavropol Krai are the following: government

programs implementation, PPP, IB, public

procurement, business CSR, RIA and NPO support.

All interaction directions necessarily imply an

level between government and business in the

regions of the Russian Federation by summing up

the places occupied by the regions for each of the

interaction forms for 2020 (Table 3). The regions

considered in this study will be taken as a basis.

practice, which could characterize the total level of

procurement and IB by region is presented in Table

4.

Federation for the reporting year” since this factor

characterizes the results of attracting investors and

implementing PPP projects in the region in the

reporting year. As a result, data for 2020 becomes

incomparable with previous periods and cannot be

between government, business, and the population,

having determined the absolute deviation of the

indicator in question in recent years (Table 5).

Table 5. Rating of regions of the Russian Federation according to the integral interaction indicator between

government, business, and the population in 2017-2020.

Source: Compiled by the authors based on the materials [27, 19]

For clarity, the resulting rating is reflected in the

region for the period of 2017-2020.