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Regional development corporation in Russia - the problem of functioning
 
Код статьиS221979310013949-6-1
DOI10.37490/S221979310013949-6
Тип публикации Статья
Статус публикации Опубликовано
Авторы
Кузин Вадим  
Должность: Executive Secretary series of "Arctic of the XXI Century"
Аффилиация: M.K. Ammosov North-Eastern Federal University
Адрес: Russian Federation, Yakutsk
Название журналаПсковский регионологический журнал
ВыпускВыпуск 2 (46)
Страницы3-13
Аннотация

The transition to a market economy for the Russian regions has complicated the old problems of regional development and created new ones. As a result, there was an imbalance in regional development. Some regions received additional incentives for their development, while many regions experienced stagnation. Regional policy measures are required to correct this imbalance. This becomes possible with the use of special mechanisms for regional development. These include Development Corporations. Such corporations were created in the 1960s and 70s and operate in the United States, Colombia, Brazil, Belgium, and other countries. Development corporations have now been established in many Russian regions. According to the organizational and legal structure, most of them are joint — stock companies. Their founders and main shareholders are almost always the regional governments. The main goal of these corporations is to develop the regions by attracting investments for the implementation of various projects. The main task of the functioning of development corporations is the implementation of the mechanism of public-private partnership. However, the effectiveness of this mechanism of regional development for the vast majority of regions is low due to a number of three groups of factors — institutional, exogenous, and endogenous. The result of their combined action is the low efficiency of regional development corporations. The analysis of the reasons for low efficiency allows us to use the potential of development corporations, taking into account the world experience and Russian specifics. This question is currently insufficiently sanctified and this article is intended to eliminate this as far as possible.

 

Ключевые словаregion, regional development, development corporation, investment, regional development institute, regional policy
Источник финансирования-
Получено27.06.2021
Дата публикации28.06.2021
Кол-во символов21653
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1 Introduction. The market development of Russia has not only created new opportunities, but also sharpens the old problems of its regional development. While the Soviet policy of regional development was completely destroyed, a new one, already Russian, was just being created. In many ways, this development occurred spontaneously and was “compressed” in a historically short period of time. The result of this situation was an increased regional inequality in various regions of the country due to the increased concentration of the economically active population, infrastructure facilities, investments, as well as ill-considered decisions of the authorities of the socio-economic plan [19]. This situation requires a corrective policy in the regional sphere. For this purpose, a number of mechanisms have been created, whose tasks are to produce regional development. Among them, such structures as Development Corporations deserve attention.
2 The purpose of the study is to identify the features of functioning Development corporations in Russia and determine the reasons for their lack of effectiveness.
3 The results of the study. Development corporations — definition and world experience of functioning. Development institutions play an important role in the socio-economic development of territories in a market economy [14]. However, more often the development is produced by specially organized structures for this purpose. Despite the wide range of their names, and these can be development agencies, special funds, special zones, etc., their goal is to accelerate the socio-economic development of any territory with the help of a special set of measures and preferences.
4 They may include providing simplified access for investors and businessmen, creating an “investment-oriented climate”, and ensuring the interaction of project stakeholders.
5 Despite the problems of the post-Soviet period, various development mechanisms exist in a number of Russian regions. Among such structures, such organizations as Development Corporations (hereinafter referred to as the DC) are widely represented.
6 The exact definition of this term has not yet developed, but if a corporation is a set of persons who unite to carry out joint activities and achieve common goals [5], then the DC of a region is an association that sets goals for regional development while attracting investment becomes the main factor of this development [13]. In addition, the investment attractiveness of the region is increased due to the interaction of government authorities and businesses.
7 It is worth mentioning right away that the DC is not a Russian invention, and some experience has been gained abroad in this area. In this regard, we will conduct a brief overview of the world experience of the functioning of credit institutions.
8

In the United States, there are structures with the name of the Economic Development Administration, which are DC essentially. They belong to the jurisdiction of the Ministry of Commerce. They were created under the Regional Development Act of 1975. Their main task is to stimulate the innovation activity of depressed territories by creating special clusters, technology parks, and business zones. As a result, such activities should improve the quality of life, the competitiveness of the region on a national scale. The mechanism for implementing this task is the system of state grants, technical assistance, and the creation of special state programs. This work is carried out throughout the United States and includes a three-level system of development plans — for the reconstructed areas (of which about 2 thousand), for the districts of economic development (116 of them), for multi-state regions (9 of them).
9 In addition, the authorities at the local level have the right to create local economic development corporations. They are designed to accelerate economic development in a particular territory through credit mechanisms and state support. They are credited by private construction companies working in the reconstructed areas on preferential terms with a term of interest payments for 25-30 years. In turn, local authorities allocate land, with reduced rents, for new construction [15].
10 Latin American countries have largely adopted the mechanisms of regional cooperation development in the United States. Thus, the Cauca River Valley Development Corporation was established in Colombia. The purpose of its creation was utilitarian-the production of hydroelectric power and the management of hydroelectric power plants. Only later did this organization become a full-fledged development agent.
11 In Brazil, the Northeast Development Agency was established in 1959. Its creation was an attempt by the Brazilian government to smooth over the problems of the northeast of the country caused by its lag in terms of social and economic development. The main task of the established agency was to attract investment to this territory. This was ensured with the help of tax preferences. Later, in Brazil, other analogs of the DC have been created: the Agency for the Development of the Amazon (1966) and the Agency for the Development of the Central-Western Region (1967) [15].

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