ECONOMIC CHALLENGES FOR REGIONAL SECURITY UNDER CONDITIONS OF GREEN TRANSFORMATION OF THE LOCAL ECONOMY (POLISH AND CZECH REPUBLIC EXPERIENCE)

Authors:
Dr. Paweł Dziekański

Jan Kochanowski University of Kielce (Poland)

PhDr. Ing. Markéta Šimková

Vysoká škola DTI (Slovak Republic)

Economic security is a broad concept. It is a state of reality in which it is possible to sustainably develop the economy and ensure an adequate standard of living for citizens through uninterrupted access to raw materials, markets, capital, modern technology, or information [26]. Economic, social, and political realities dictate that security should be treated as an overriding human need understood as the absence of something that is necessary to preserve life, develop, or maintain a social role [24, 11].

Security and development are two fundamental dimensions of the existence of individuals and entire communities. These two dimensions condition each other; without security, one cannot dream of development, while development facilitates the provision of security. The effectiveness and efficiency of security formation depend to a large extent on the rational recognition and use of many variables [13]. Development and security are complex processes that are difficult to assess unambiguously (e.g., due to access to detailed, homogeneous variables for all units under study). They can be characterized on the basis of variables depicting the demographic situation and labor market, social potential, economic structure, technical infrastructure, and the state and protection of the environment. The complexity of phenomena is increasing; their uncertainty is increasing, which makes the quality of human decisions increasingly dependent on the quality of the information they have [12].

As pointed out by P. Churski and his co-authors (2013), M. Stanny and W. Strzelczyk (2015), or P. Dziekańskii and P. Prus (2020), the element that affects development opportunities is financial potential. D. Milczarek (2005) points to the importance of local potential in the development process, i.e., geographical, demographic, economic, social, etc. elements. I. Kiniorska (2014) distinguishes three types of it: demographic, economic, and infrastructural. When looking at the potential and possibilities of the local economy, it is necessary to diagnose the intangible and tangible factors of development. P. Churski and all (2021) point to the need to redefine the factors of local (regional) development in the interpretation of socio-economic development processes. The economic security of a region can be defined as a state of certainty in the functioning of the local economy and economic development and achievement of economic goals.It promotes the creation of conditions for economic stability, socio-economic development, economic growth, high competitiveness and innovation of the economy, development of socio-economic infrastructure, reduction of poverty, and social exclusion. Economic security is often defined in a triad of three components: financial, raw materials, and food [17, 13].

Treating the economic security of the local economy as a balance of development needs and opportunities to meet them, it is expedient to distinguish four areas of functioning of its determinants, i.e., development opportunities and needs, infrastructure, and financial resources. Sources of threats to economic security can be unfavorable proportions in the creation and distribution of gross domestic product, erroneous directions of the country’s financial and economic policies, the resources and structure of the country’s natural wealth, infrastructure [7], the state and structure of natural, property, and human resources, the ability to absorb demographic changes, and the degree of energy security [9, 16]. Energy is a specific resource considered to be of great strategic importance (including in terms of economic security). Energy supply interruptions are extremely disruptive and can cause economic paralysis as well as social and political consequences [3]. An improved state and increased sense of security (including economic security) among the public can also result from an increased quality of life. Economic security is defined as a phenomenon related to the stability of material condition and the ability to provide financing regarding basic expenses [6, 18].

A synthetic measure can be used to compare which risks have the greatest impact on economic security. It is an instrument for monitoring and modeling the performance of local authorities, an indicator of economic evaluation under the dynamics of changes in economic and social phenomena, a decision-making measure, and a measure of the economic situation of the unit. On the basis of the synthetic measures determined, it is also possible to assess the structure of the local economy, the level of development of units, the degree of inter-group differentiation, the quantitative distance in the spatial level of units and separate groups, or the level of economic security. It allows to indicate its specialization and key and peripheral areas [2, 1]. 

The synthetic measure (as an element of monitoring the situation of the studied object) will allow a multidimensional and comprehensive look at the level of the phenomenon in the studied units, conduct comparative analyses, and linearly order the objects, that is, build a ranking in spatial as well as temporal terms [20, 28]. It makes it possible to carry out an assessment using an unlimited number of criteria, the degree of legibility of the results obtained is high, and it allows the results to be presented in numerical form [27, 19]. The quantification of a complex phenomenon with a single numerical value, which facilitates all comparisons and synthesizes partial images about the areas under study, can be considered a benefit in this regard. It can be a helpful tool for local governments assessing the accuracy of past decisions and the effectiveness of past regional management instruments. Its value depends on the number and type of variables adopted for the study [22, 8].

Economic security is determined by the region’s economic potential, its size, the structure of the economy and its competitiveness. The basis of economic security is based on the expectation of changes in the structure of consumption, growth of entrepreneurship and economic activity. The economic security of the countries of Central and Eastern Europe (as well as their regions) is strengthened by the high level of concentration of markets, the numerical and qualitative potential of the population, the aspirations of societies and the political position in the region. Implemented development strategies contribute to the use of endogenous potential and the growth of economic importance of the economies of these countries (as well as regions) [23].

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