Russian Arctic Frontier: Paradoxes of Development
Russian North and Arctic in the Context of Global Challenges of the XXI century
The article discusses contradictions and paradoxes of the development of the Russian polar territories consequent on the transformation of the Arctic from a global periphery to a global frontier. The first paradox is a strong contrast between the extremes of poverty and wealth, despite the fact that Russia dominates Arctic production in terms of GRP. Among other contradictions are the following: large-scale import of oil and lubricants into the Arctic with simultaneous export of energy resources; while proclaiming the need for new management strategies for the region, this priority is not reflected in the grant-making policies of major research foundations; although the Arctic is the largest resource region, there are little search efforts for innovation in environmental management and no textbooks on resource economics; Russia's Arctic zone in Asia is becoming a pioneer in onshore and offshore exploration, but it has almost no trained and equipped outposts in coastal towns to perform the needed functions. Lists of Arctic land territories in federal laws contain numerous discrepancies and inconsistencies. Around the world, the Arctic has become a testing ground for innovations in state and municipal management, environmental management on polycentric principles and ecosystem management, co-management and others. For this end, other countries actively involve implicit knowledge of indigenous peoples, as well as unformalized knowledge of old residents and local experts. On the contrary, Russia, which has the longest Arctic territory, invests the least effort. In the short term, the major concern associated with the development of the region will be to ensure that large and small entities of Arctic economy are socially embedded. It will push the authorities at various levels to work on the problem together with the local community, and require corporations to behave responsibly.
Key words: Russian Arctic, global frontier, comparison of Arcti˝ development in Europe, Asia and America, paradoxes and contradictions of the Russian Arctic
N.I. Suslov (email@example.com), A.B. Khutoretskii(firstname.lastname@example.org)
Efficiency Evaluation of Large-Scale Railway Projects Using the Model of Russian Economy
Economic Issues of Regional Development
In this article, we modify the well-known inter-regional inter-sectoral optimization model (╬╠╠╠), which makes it possible to incorporate a large-scale railway investment project. If the development of the national economy is deterministic, the model estimates the possible impact of the project on households' consumptive use. This helps to evaluate the macroeconomic efficiency of the project in the given development scenario. The uncertainty of economic development can be reflected in a representative set of scenarios. We consider the comparison of competing projects under the scenario uncertainty as a game against nature. We argue that Wald's criterion is appropriate for investors, whereas managers would possibly prefer Savage's criterion. If the projects use public funds, the interests of society and the government employees selecting projects for implementation may differ significantly due to inconsistency between the criteria.
Key words: investment project, rail transport, macroeconomic efficiency, method of evaluation, inter-regional inter-sectoral optimization model, scenario uncertainty
Spatial Features of Social Infrastructure Development in Siberian Regions
Social infrastructure is considered in the context of quality of life as a key living condition. The article shows that the problems of social development for the Siberian Federal District are severe and that the methods of government support are in need of modernization. We define basic theoretical positions and methodological prerequisites to study social infrastructure as a category of the regional economy. A traditional analysis of indicators in selected sectors of social infrastructure is augmented by a research of a new investment aspect of its development. We present how the spatial factor affects settlement systems and the territorial organization of local self-government in Siberian regions of Russia, as well as assess the related structural particularities of regional infrastructural objects (using the example of the education sector). We provide the quantitative characteristics of spatial living conditions and study region-specific features that the territorial organization of local self-government has, as exemplified by municipal areas and rural settlements. The article gives a comparative analysis of structural characteristics of regional infrastructural systems in the education sector. The results suggest that average capacities of preschool and comprehensive educational establishments in Siberian regions under examination are significantly lower than those in the southern regions. Our research has determined a degree of regional differentiation for investment expenditures on social sector development in Russia. Then we evaluate the performance of the Siberian Federal District against other regions. The calculations demonstrate that Siberia receives substantially less investment per capita to develop social sphere than the country at large. We draw a conclusion that the detected features of regional settlement systems increase the price of guaranteed social services for the population and complicate their delivery; they decrease the quality of the said services or abolish them. In order to find a solution, the current specific spatial conditions need to be adequately considered in regional policy making and intergovernmental fiscal relations.
Key words: Siberian regions, living conditions, social infrastructure, settlement system, territorial organization of local self-government, regional budget expenditures
V.V. Kuleshov (email@example.com), V.Ye. Seliverstov(firstname.lastname@example.org)
Program for Reindustrialization of the Economy of Novosibirsk Oblast: Ideology and Main Directions for Its Implementation
The main purpose for the reindustrialization of Russia is to promote its national manufacturing sector so that it joins the group of highly developed industrial countries. It is crucial to mobilize regional growth points of the reindustrialization processes. Novosibirsk Oblast can become one of the top Russian regions leading the reindustrialization by implementing a special management program for that end. The article analyzes the ideology and main directions for the implementation of the Program for Reindustrialization of the Economy of Novosibirsk Oblast till 2020. It also reveals the region's potential for reindustrialization which is one of the strongest in Russia due to an efficient system of RAS institutes and a new system of development institutions (techno-parks, industrial areas, etc.). We come up with program elaboration principles and describe the mechanisms and institutional conditions for reindustrialization. By using eight megaprojects as an example, we show strategic initiatives that depict essential competitive scientific, innovation, engineering and production advantages of Novosibirsk Oblast and unique competencies in a number of directions for innovation. The Program for Reindustrialization of the Economy of Novosibirsk Oblast is a modern element of the regional strategic planning system.
Key words: economy of Novosibirsk Oblast, reindustrialization, program, innovation, engineering, megaprojects, highly-innovative projects, investment projects, strategic initiatives, regional strategic planning
Z.I. Kalugina (email@example.com), O.P. Fadeeva (firstname.lastname@example.org), S.V. Bratyushchenko(email@example.com)
Socio-Economic Polarization of Rural Areas in Russia
Social Issues of Regional Development
The article presents the results following the clustering of Russian rural regions according to socio-demographic and economic criteria by K-average method. We have identified factors for the regional polarization of the agro-food complex. The paper shows that rural areas in Russia are polarized due to climatic, geographic, ethnic, and economic factors that define the potential for rural development. Economic clustering of regions is based on the amount of investment, performance and profitability of agriculture, as well as on the structure by the nature of households. The potential for the development of regions has a substantial socio-economic character. The article demonstrates that the development of human potential and rural development are interrelated and interdependent. The map illustrates how the identified clusters are located in terms of geography. The database of the research comprises statistics and materials of special selected studies carried out by the state statistical agencies of the Russian Federation. The results of our analysis may be of benefit to the executive authorities when designing programs for socio-economic development of rural areas and validating strategies for the reindustrialization of agro-industry.
Key words: socio-economic polarization, clustering of regions, socio-demographic potential, labor potential, prospects for development
L.E. Limonov (firstname.lastname@example.org), M.V. Nesena (email@example.com)
Ethnocultural Diversity: Analysis of Its Features in Russian Regions
The ethnocultural composition of modern Russian society is as follows: about 80% of the population are Russians; the remaining 20% are representatives of more than 180 of other nationalities. Russia has seen processes of ethnic assimilation throughout its history; nonetheless, numerous ethnic groups still maintain their cultural identity. The ethnocultural diversity varies significantly by the Russian regions. The aim of this study is to test a hypothesis that postulates the existence of a link between the ethnic diversity and public goods provision at the regional level, as well as to examine the relationship between ethnic diversity and some important social and economic indicators that describe economic development and social inequality using econometric research methods. The article satisfies the questions whether ethnic diversity is a factor contributing to the provision of public goods at the regional level in Russia and if the budgetary framework is affected by other population and territorial characteristics. The subject of the study is the ethnic composition of Russian regions, indicators of social and economic development, and indicators of regional budgets. One of the main findings of this study is that the more heterogeneous population a region has, the less share of its budget it spends on education. The results will allow regional social and economic policies to be tailored to the ethnic and cultural diversity of the population.
Key words: region, ethnic diversity, public goods, budget expenditures and incomes, social capital, regional economics
R.A. Galin(firstname.lastname@example.org), R.R. Yapparova(email@example.com)
Using the Labor Potential of the Third Age Population in the Republic of Bashkortostan
Based on a survey given, the article discusses social and economic aspects of how the labor potential of the third age population is exploited in the Republic of Bashkortostan. In 2008, the number and proportion of working-age population began declining. The working-age population in Bashkortostan reduced by more than 400 thousand people. Along with this demographic process, another one has started: the elderly population is growing. Such a large decrease in the working-age population demands to make adjustments to the policy of social and labor relations: it is necessary to concentrate on attracting new workforce and increasing the efficiency of manpower. Under the evolving demographic situation, engaging people of retirement age in the economy could be one of the ways to solve the problem in hand. The survey was conducted among working and non-working members of the third age (55-72 years), and employers in the region. The probabilistic random sampling method was chosen. Respondents were selected at the survey site by using screening questions on their age and presence of regular employment. The poll covered a wide range of questions concerning labor and financial position, opportunities to continue working, health and other issues. Employed pensioners answered a series of questions on types of employment and working conditions, and whether their profession and field of employment correlated with their education, experience and qualifications. The article shows which conditions will help to engage the third age population in the economy in order to actually make up for the reduction of the able-bodied population in the region.
Key words: labor potential, labor resources, demographic structure of population, pension age persons, pensioners, employment, labor-market
L.A. Popova (firstname.lastname@example.org), M.A. Shishkina(email@example.com), N.A. Butrim(firstname.lastname@example.org)
Change in Reproductive Behavior in the Komi Republic: Factors and Consequences
The article analyzes the current fertility trends in the Komi Republic, changes in its structure concerning birth order, mother's age and marriageability. Basing on a cohort sociological study, we evaluate the impact of federal and regional demographic policy on the change in reproductive attitudes. The article states that recent public initiatives in this sphere have helped elongate positive fertility trend under a declining age structure, make up for births postponed by previous generations, increase the number of children per family, strengthen the role of the family infertility, as well as assisted in young families' early fertility. Federal and regional measures of demographic policy were the most beneficial for 1960's and 1970's generations who actualized them later in older age groups. Yet, regional measures of demographic policy aimed at encouraging having a third child appeared to be more universal. They did not only contribute to a further increase in fertility and faster rise in the proportion of higher-order births, but also improved reproductive planning, including among the youngest birth cohorts. We conclude that a gradual expansion of pro-family demographic measures can affect both the current fertility situation and its future prospects.
Key words: fertility, age structure, intensity of fertility, demographic policy, maternity capital, reproductive attitudes, the Komi Republic
A.P. Kireyenko(email@example.com), Ye.N. Nevzorova(firstname.lastname@example.org), Ye.N. Orlova(OrlovaEN@isea.ru), D.Yu. Fedotov(email@example.com)
How the Shadow Economy Impacts the Quality of Life in Regions
Regional and Interregional Aspects of Structural and Investment Policy
The article presents the findings of research on how the shadow economy and the quality of life ofpopulation are interrelated. We propose a hypothesis that we can evaluate the shadow economy at the regional level basing on the dynamics of the quality of life indicators. The impact that the shadow economy has on the quality of life is proved by a regression analysis of its indicators and Human Development Index values for countries worldwide. To study the shadow economy at the regional level, we have identified the quality of life indicators that reflect regional differences and are affected by the shadow economy. Having compared the dynamics of the standard of living and quality of life indicators in the Siberian Federal District for the period between 2001 and 2013, we managed to get an insight into the level of the shadow economy. In regions where growth in the standard of living corresponds to growth in the quality of life, the level of the shadow economy is below average; on the contrary, in regions where growth in the standard of living exceeds growth in the quality of life, the level of the shadow economy is above average.
Key words: shadow economy, evaluation of shadow economy, quality of life, Human Development Index, standard of living, regional economy
Tourist and Recreational Complex of Crimea: Problems and Prospects of Development in the Transition Period
The article examines the tourist and recreational complex of Crimea in the transition period. Using the qualitative and quantitative methods to analyze tourist and recreational resources, as well as Internet monitoring of hospitality objects, the author has explored the hospitality and tourism market in the Republic of Crimea. She has identified the problems hindering further development of the tourism industry and main strategies to modernize and improve the regional tourist and recreational complex. The author proposes measures to ameliorate the hospitality and tourism market situation in the Republic of Crimea and recommendations on how to promote an increase in tourism and investment in the studied region. The article reveals the problems of state regulation of the tourism industry in the Republic of Crimea after it was admitted to the Russian Federation. The article compares the legal framework regulating the activity of hospitality companies before and after the Republic of Crimea became a part of the Russian Federation. It reflects upon and justifies the advantages of an obligatory classification system of accommodation facilities. Also, it defines difficulties that need to be overcome
Key words: tourist and recreational complex, Republic of Crimea, transition period, state regulation, additional tourist services, classification of the objects of the tourist industry
Economic Consequences of the 2013 Catastrophic Flood in the Far East
Environmental Issues of Regional Development
The article contemplates a generic algorithm and elements of the assessment of the damage inflicted by natural disasters in terms of macroeconomic impact, studying the direct economic aftermath of the disastrous flood in the Russian Far East in autumn 2013. The findings are verified by comparison with those obtained by employing alternative assessment techniques and contrasted with evaluations of the damage caused by the said disaster provided by international reinsurance companies.
Key words: natural disasters, floods, Far Eastern Federal District, direct economic damage, total economic damage
V.M. Nikitin(firstname.lastname@example.org) V.A. Saveliev(email@example.com), T.V. Berezhnykh(firstname.lastname@example.org), N.V. Abasov(email@example.com)
Problems in Hydropower Development of Lake Baikal: the Past and the Present
The article discusses the relationship of the hydropower industry with the socio-economic sphere and natural environment in the Baikal region under different hydrological conditions and water management in Russia. The lake has been used as a reservoir for the Irkutsk Hydroelectric Power Station (HPS) since a hydroelectric dam blocked the Angara River. When the Angara Hydroelectric Power Chain started work, the Irkutsk Reservoir became the main one, which has defined the importance of Lake Baikal for the Siberian Interconnected Power System and Angarsk multipurpose water-resources scheme. Depending on hydrological conditions during the operation of the Angara Hydroelectric Power Chain, we can distinguish several stages of lake-level fluctuations. In 1983-1995, the level of the Irkutsk Reservoir repeatedly exceeded the normal design level. In 2014, a catastrophic water shortage in the catchment basin of Lake Baikal exacerbated negative effect on the socio-economic sphere and natural environment on the eastern shore of the lake. When Baikal became a World Natural Heritage site, legislative amendments of 2001 limited the threshold levels of the lake within one-meter range. This restriction substantially affected hydroelectric regimes in terms of social and economic security in the downstream of the Irkutsk HPS within the boundaries of Irkutsk and on the shore of Lake Baikal under the new Russian economic conditions that result from market transformations and the renovation of the Water Code. The article examines the role that the Irkutsk HPS and Lake Baikal, as the primary part of the Irkutsk Reservoir, play in the development of the Baikal region. We also consider the problems related to the use of Lake Baikal under low-water and high-water conditions. The article determines hydrological hazards and threats to the security of the population and the economy in the downstream of the Irkutsk HPS and on the eastern shore of Lake Baikal in the case of high water inflows. We propose priority measures to overcome these threats and settle the interregional relations in the catchment basin of Lake Baikal. The measures include ensuring economic entities and lands within areas of periodic flooding and redistributing the hydroelectricity rent received by the owners of the Angara HPS between the regions. The aim is to manage the functioning and development of natural, technical, economic and social systems of the entire basin of Lake Baikal and the Angara River.
Key words: Baikal, Angara, hydroelectric power chain on the Angara River, Siberian Interconnected Power System, socio-economic and environmental consequences and threats, Baikal region, interregional environmental and energy relations
Development of Intercompany Cooperation Models in Russian Industrial Markets: Case of Innovative Business
The paper discusses intercompany cooperation, with particular attention to the innovative business. Initially partnerships are understood as an element of company's relational resources. External relations are selected from the whole set of partnerships; we analyze their influence on the competitiveness of a firm. Various forms of partnerships could be found within industrial markets, and generally they are very flexible. Besides traditionally defined market and hierarchical mechanisms, there are some hybrid schemes. The article shows that these hybrid schemes act as a form of so-called źquasi-integration╗ between companies, which enables them to obtain certain advantages of integrated structures and retain their legal entity status. According to our hypothesis, cooperation model choice is dictated by several factors, including company's characteristics, market structure, and the specificity of assets. Also, we analyze partnership relations of businesses that are included in the national rating źTechUspech╗, as well as the cooperation between a few small and medium-size innovative companies in Siberia. The study results have revealed that firms related to the knowledge economy and those dealing with oil and gas sector use complex hybrid schemes of quasi-integrative cooperation with a wide range of partners being involved. Despite the widely acknowledged importance of partnership for innovative companies, in most cases, this kind of relations develops spontaneously. Regular partner relationship management does not exist yet. Many innovative companies consider large domestic and foreign corporations as reliable main partners; therefore, these agents play a significant role in the innovative economy.
Key words: models of partnership, quasi-integration, market power, hybrid schemes
M., von. Hauff(firstname.lastname@example.org)
Requirements for the Sustainable Development of Industrial Areas
Foreign Experience of Regional Science, Regional Policy and Spatial Development
The article deals with a new phenomenon of a sustainable industrial area. Within the paradigm of sustainable development, some companies have already used the corporate social responsibility concept. As far as the whole industrial areas are concerned, there existed no similar concepts. The article outlines theoretical foundations for the concept of a sustainable industrial area. In particular, we are referring to the three dimensions of sustainable development. This approach offers great opportunities for mutually-beneficial cooperation between enterprises, especially for small and medium-sized ones. As part of this concept, together they can make a significant contribution to sustainable development, which they could not make individually. A case study of Germany shows approaches to designing a sustainable industrial area. We also present a new concept of the stability triangle that allows approaching this issue in a consistent manner.
Key words: Germany, industrial area, aspects of sustainable development, eco-industrial park, cooperation, enterprises
A Method for the Early Assessment of GRP and its Test Results
Regions of Russia: Figures and Facts
The article suggests a method for the early assessment of gross regional product (GRP) based on operational statistics, which allows obtaining this indicator one or two years before it is publicly released. It presents the results of test calculations and estimates of the precision of the proposed method for the assessment of GRP.
Key words: gross regional product, operational statistics, leading indicators, assessment of GRP