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"Development programs do not replace statistics on the region"
Anton Tabah Candidate of economic sciences, senior economist of the Institute of Energy and Finance, associate professor of the Higher School of Economics
However, methods that have shown good results in densely populated areas near the borders of the country or the largest megacities are not always suitable for direct borrowing by the regions of the Far East. Sparse population, high transport costs, the lack of close markets for industrial products create obstacles to the "new industrialization" and make it impossible to pay back. At the same time, there is still an urgent need to modernize the economy and improve the quality of the workforce, the federal allocations for development are rather limited, and the integration of Crimea and Sevastopol made them getting for other regions even more difficult. The slowdown of the Russian economy, as well as EU and US sanctions against Russian state-owned banks and most commodity companies, also made it difficult to attract private investment. The development of mass production of conveyor already encountered natural obstacles in the model regions, and the successful copying of such experience at the moment is a direct transfer rather related to the field of fiction.
For the regions of the Far Eastern Federal District, a realistic response to current challenges should be the adaptation of a standard approach to local conditions, with amendments to changes in the Russian and global economic situation, as well as an increase in the cost of borrowing for regions and corporations.
Secondly, the shift in emphasis (and it is already happening) from the raw material sector to the non-material infrastructure, including social and educational infrastructure, provided partnership with the state and adaptation of infrastructure to the requirements of the developed industries. The experience of the development of the northern territories of Canada and the USA, Iceland and (to a lesser extent) Northern Europe shows that the revenues from the raw materials industries can become the basis for the development of high-tech industries and services. Their suppliers do not need industrial parks, but they require high-quality human resources, an educational system and transparent conditions for starting and continuing the activities of strategic investors. The choice of industries as locomotives of growth almost always involves the development of special measures aimed at creating reference points and growth clusters. Different industries require different support measures - for example, intellectual services will likely require investment in education and tax benefits, rather than high expenses for building physical infrastructure. Relatively low debt burden of large regions of the Far Eastern Federal District gives additional opportunities for financial maneuver, but many tax measures will require justification for approval at the federal level.
The Far Eastern regions (and even individual areas) have very different strategic advantages - in the border Khabarovsk and Primorye territories and the Amur region they are one, in Yakutia and the Magadan region they are different. Sakhalin has already achieved very great results in the development and increase of budgetary security in recent years. Developing programs and institutes of advanced development that are adequate to regional conditions will require a strong adaptation of European Russia’s experience to them, a reorientation of the information component to Chinese and Middle Eastern investors and strategic planning with a choice of tools to use the existing advantages and mitigate the effects of factors such as low population Conscious diversification and diversity of development tools, rather than one-size haircut, can create an institutional environment conducive to economic growth.