Selection of Regional Sustainable Development Project Using the Method of Multiple-criteria Optimization

The purpose of this article is to reveal the method of multiple-criteria optimization for the selection of regional sustainable development projects. Projects for regional sustainable development in the strategic planning are currently considered as an important instrument sustaining competitiveness and productive capabilities of the European economy and supporting developing areas, as an aim of the Europe 2020 strategy. Methodology. European countries implement national strategies by using the broad methodology of project management for reaching strategic aims. In such a context, it becomes necessary to provide a generalized method of projects' evaluation and their selection by the corresponding committees, proceeding from the best international practices and effective policy guidelines. Thus, the aim of this paper is to provide multiple-criteria method for the selection of the optimal regional development project out of the number of competing alternatives. Results. This paper reveals the decision-making process behind the expert selection of the most competitive project, based on a set of following criteria: social, economic, ecological and budgetary efficiency. Our method is as follows: we are considering all the available components of efficiency through the lens of integral factor. For each component we propose a set of local indicators that describe its degree of efficiency in comparable values. The projects of Dnipropetrovsk regional state administration of Ukraine are considered as main case of this study. To analyze them we use the methodology of multiple-criteria evaluation of regional sustainable development projects. As a result of this process it becomes possible to choose the optimal project for regional development out of wide array of projects being filed by the applicants. Value/originality. Value and originality of the multiple-criteria optimization method is the capability to provide the selection of regional sustainable development project on the base of clear criteria which precludes the possibility of corruption and unfounded decisions being taken by the authorities during the process of the planning the economic activities. As current method of decision-making is based on quantitative assessments of projects' value, government and local government representatives are guided by a common vision and subjective impressions on the application. The advantages of the proposed method are methodological simplicity, flexibility and universality, which are crucial in the multiple-criteria decision-making in public administration. One of the advantages of this method is that it allows providing a justification for the results and conclusions of the selection process.