Page 87 - Theoretical and Practical Interpretation of Investment Attractiveness

investment programs serve to increase the number of new jobs in the regions. economy and
ensuring social development of society.
Therefore, the government’s economic policy, aimed at ensuring the socio-economic
development of the regions, is based on the main goal - ensuring the economic development
of the entire country and increasing the well-being of the population. Due to the limited
economic resources (territorial wealth) available in the regions, the most effective way to
increase production capacity is the optimal use of resources and the mobilization of
additional capital resources based on high technologies.
Let us explain the concept of national wealth, which shows the socio-economic
potential of the country and serves to reveal the attractiveness of the investment environment.
It is known that national wealth (NW) is an important economic category and indicator
and is used as the main source for assessing the economic development of a state, as well as
for comparing opportunities between countries, for making plans for the future and
establishing long-term goals of society and enabling investors to make decisions.
According to the international standard, national wealth is the totality of tangible and
intangible assets (financial and non-financial), created by the labor of ancestors belonging to
a certain state (country) and the population living there (national treasure), minerals identified
by geological research. Material wealth refers to natural resources , as well as intangible assets
(Fig. 2.4.1).
The amount of national wealth is determined by the total private capital accumulated
by legal entities and individuals in a country, its territories (provinces, districts, cities,
villages, settlements, etc.), industries and sectors - tangible and intangible, financial and non-
financial assets.
National wealth (NW), unlike other macroeconomic indicators, consists of two parts:
the endowment of nature (assets not produced by humans) and the assets accumulated through
human labor. It includes wealth, state and non-state property belonging to individuals and
legal entities located in the economic territory and outside it. In another interpretation, all
economic assets or private capital can be divided into two large groups: financial assets, that
is, divided into seven important types (money and deposits; all securities except shares; shares
and other types of equity capital; insurance reserves, debtors and creditors' other accounts;
gold and currency reserves) and non-financial assets: recurring and non-recurring assets
(Figure 2.4.1).
To calculate the total volume of the MB, you must first estimate its elements. The
following form is widely used in statistical reports . This is the book value (purchase value);
replacement cost (replacement cost) – cost at the end of the analyzed period; market price
(selling price on the market).
According to the method presented in the System of National Accounts (SNA)
(following the 2008 UN System of National Accounts methodology), current assets and all
resources that are statistically measured for all countries are valued at replacement cost. based
on the "price index".

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