This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

The main branch is the reproduction of man

The basis for the development of the economy of the Far East is determined by the expert of FEFU

On the eve of the Fourth East Economic Forum, EastRussia and the Far Eastern Federal University continue a series of mini-lectures on the most pressing issues on the agenda of the event. The third lecture is given by the associate professor of the Department of Finance and Credit of the School of Economics and Management of the FEFU, Ph.D. in Economics, financial consultant for more 100 projects for SPV and TOR Maxim Krivalevich - which sector of the Far East's economy is the main one.

The main branch is the reproduction of man

Maxim Krivelevich

Associate Professor of the Department of Finance and Credit, School of Economics and Management of the FEFU, Candidate of Economic Sciences
According to state statistics for the Primorsky Territory, in the first seven months of this year, residential buildings with a total area of ​​more than 280 thousand square meters were commissioned in the Territory, which is 1,9 times more than in January-July 2017, of which 120,4 were built by individual developers. , 43 thousand sq. m (1,7% of housing commissioning). Housing construction by the population in comparison with January-July last year increased by XNUMX times. The above figures are significant not by themselves, but as an indicator of an important trend - the consolidation of the population in the south of the Russian Far East and, in general, the expanded reproduction of human capital in the region.

With the implementation of the projects of the Free Port of Vladivostok, territories of advanced socio-economic development, the complication of transport and energy infrastructure, prerequisites are formed for the creation of a triad of expanded reproduction of human potential: high labor productivity, stimulation of entrepreneurial activity, and advanced development of social technologies and social infrastructure. This triad for the south of the Far East, or, as it would be more correct to call our region, was historically characteristic of “Pacific Russia”. The spirit of the “last frontier”, which contributed to the rise of Alaska, is no stranger to the inhabitants of Russia's maritime cities. Self-reliance, fearless readiness for change - all these are generic features of Far Eastern life. The economic and geographical isolation from the center and the absence of paternalism on the part of the state also played a positive role. The Primorsky entrepreneur had a much higher chance of visiting the Toyota Motor Corporation assembly line than the Avtovaz workshop.

However, the post-default growth of the Russian economy in 1999-2007, accompanied by the concentration of all types of resources in the metropolitan regions, significantly reduced the attractiveness of life in the Far Eastern regions. All that forms the basis for the development of human capital has rapidly deteriorated. The productivity of the "white-collar workers" turned out to be much lower than the all-Russian one, scientific schools and cultural institutions migrated to the capital at the same speed with which the threads of management decisions eluded from the region, as the local business was absorbed by vertically integrated companies. The ratio of per capita income to the cost of housing - the most important demographic indicator, able to determine the general direction of migration flows - was simply incompatible with the long-term plans of most households. Volumes of commissioning of new housing hopelessly lagged behind needs, and after the outflow of population, the retreat of the state also began.

Thanks to the per capita principle of financing health care and education, regions with a growing population always receive more favorable social conditions than regions with outflow of population. The process of degradation of the social infrastructure became self-reinforcing, and young people from the Far Eastern cities did not find any prospects for meeting their aesthetic, social, economic, political demands and simply fled to Moscow. Even worse was the feeling of economically active citizens that there was a feeling of lack of rights and the impossibility of solving any issue of the economic life of the enterprise without a trip to Moscow.

Today, the presence of an opera house, an oceanarium, promenades, a federal university and modern medical centers is not just a tick in the development program of the region, but a marker of advanced social development. But the main thing is that the entrepreneurial spirit of the Far East can now be fully realized in the zero-tax rate for profits, property and land for projects implemented within the framework of the Free Port regime in the first five years of implementation. Some regions, such as Sakhalin and Yakutia, have benefited significantly from the devaluation of the ruble, while others, for example, Primorsky and Khabarovsk krai, suffered significantly from the same process, but the surge in business activity associated with administrative and tax liberalization allowed all regions without exception a positive image of the future for its people.

It is important not to lose the pace of social and economic progress, to prevent uncontrolled creation of "development institutions" - bureaucratic sinecures, which begin to invent requirements and conditions instead of performing service functions for the population and entrepreneurs. The next step in raising the level of development of human capital should be a real admission to the region of banks, insurance, financial, educational and medical companies from the advanced countries of the APR without fees, barriers and duplicate licensing. We have the right to live no worse than in Japan or South Korea, if we are ready to work as intensively as our neighbors in the region.  
March 1: current information on coronavirus in the Far East
Digest of regional events and latest statistics