Institutional support of promising sectors of the Chechen Republic’s economy

Federal State Budgetary Institution of Science Complex Research Institute of the Russian Academy of Sciences named after Kh.I. Ibragimov
Federal State-Owned Publicly-Funded Institution of Higher Education Grozny State Oil Technical University named after acad. M.D. Millionshchikov, 364064, Grozny, Isaeva Ave., 100, Russia
Federal State-Owned Publicly-Funded Institution of Higher Education St. Petersburg State University of Economics, 191023, St. Petersburg, 21 Sadovaya Street, Russia

Abstract

In the context of the digital transformation of the region’s economy, the focus of attention of scientists and practitioners in terms of institutional changes is on rationalizing the economic relations of business entities. Institutions form the organizational-economic and regulatory-legal backbone of support for promising sectors of the economy, uniting not only social institutions, but also the structures that implement them. If laws can be changed quickly enough, informal regulations change gradually. Wherein, it is informal institutions that create the basis for evolutionary changes in legislative and regulatory rules. Nowadays, the set of regulations and means that are designed to provide institutional support to economic entities in the region is supplemented by the theme of sustainable development and the principles of environmental, resource-saving, social and corporate cooperation (ESG, Environmental, Social, Governance). From the point of view of these principles implementation, it is assumed to create and implement the modern sustainable ecologically-oriented ecosystem objects [1]. In our study, we proceed from the fact that the basis of the digitalization of the regional economy and its sustainable development is the institutional support of the economic system. It is the institutions that are provided with the most important role in ensuring the digital transformation of the basic sectors of the region’s economy. In its turn, the digital transformation of economic sectors depends on the market potential of the infrastructure, development of financial, legal and other aspects that implement the integration relations of economic entities. Taken together, these terms determine the competitiveness of the region’s economy. There is an objective need for development of theoretical and methodological provisions for formation of institutional support for the region’s economy in new post-COVID normality. Special attention of the authors was focused on the study of the institutional support of the digital sector of the economy of the Chechen Republic, which is a driving force and a tool for solving a whole range of economic, social, environmental and cultural problems that are urgent in the region. This circumstance determines the relevance of this study, the significance of the tasks set and the recommendations provided.