Assessment of Self-Development of Russian Regions as a Measure of Sustainability

Abstract

The sustainability of regional development can be approached from multiple perspectives, yet existing methods often provide limited insight into long-term trends. This study aims to analyse the development dynamics of Russian regions using the theory of self-development and to identify the main factors contributing to their sustainability. The hypothesis is that studying the relationship between GRP growth rates and the financial and tax balance can provide key insights into the stability or instability of regional development. Two criteria of self-development were assessed for all Russian regions over the past 23 years: GRP dynamics and the balance of income and expenditure in the public sector (financial and tax balance). Analysis of GRP growth rates showed that only 14 regions experienced significant growth (over 1 %), while 22 regions exhibited declines of less than -1 %. Examination of the financial and tax balance revealed abnormal income withdrawal in 12 regions, whereas 17 regions recorded the opposite pattern.
By combining the dynamics of GRP and financial and tax balances, regions were classified into four subgroups: self-developing (18 regions), developing (19), financially stable (19), and underdeveloped (29). Self-developing regions are primarily located in the Central, Northwestern, and Volga Federal Districts (four regions each), while developing regions are concentrated in the North Caucasus (six regions). Financially stable regions are evenly distributed across the Central, Volga, and Ural Federal Districts, and underdeveloped regions are most prevalent in the Far East. The study considers regional development through the lens of federal districts and draws conclusions regarding the sources and factors of territorial self-development. Ten regions across different federal districts are shown to be exemplars of self-development.