The North Caucasus and Caspian Regions: A Methodological Approach to Development Evaluation and Interregional Comparison

Abstract

The North Caucasus and Caspian region of Russia (NCCR) is a distinctive macroregion with rich cultural heritage, complex ethnic composition, favourable geographic location, and relatively developed infrastructure. However, its production systems lag behind national averages, and long-standing ethno-confessional and socio-economic features continue to constrain development. This study examines the economic conditions of 11 NCCR regions using Rosstat’s methodology for calculating indicators of regional production systems. The indicators are grouped into three categories: population characteristics; the state and development of production capacity; and organizational performance. Some indicators are used in their original form, while others are normalized to ensure comparability. The analysis suggests that the low performance of the economic system in the NCCR macroregion stems not from resource scarcity but from institutional constraints that limit the effectiveness of federal development programs. Although the region’s overall lag behind national averages does not extend to agriculture, the sector’s high share in gross regional product typically reflects underdevelopment in other parts of the economy. The lowest official economic indicators are concentrated in areas with predominantly indigenous ethnic populations. A large informal economy further distorts official statistics, obscuring actual household incomes and business activity, which complicates assessment of both regional economic conditions and the effectiveness of state support measures. The findings may be useful for designing regional socio-economic development programs and for developing baseline methodologies to evaluate their effectiveness.