Economic Differentiation of Municipalities of the Russian Arctic and their Receptivity to Federal Preferential Treatment

Authors

DOI:

https://doi.org/10.17059/ekon.reg.2024-2-8

Keywords:

Arctic, municipalities, population, taxable income, social benefits, federal spatial policy, preferential treatment

Abstract

The modern Arctic policy of Russia focuses on the Arctic Zone of the Russian Federation (AZRF) as a single macroregion. However, since the Russian Arctic is internally heterogeneous, a common Arctic policy can either increase or decrease the differentiation of municipalities. Therefore, to improve federal spatial policy, it is necessary to assess the differentiation of Arctic municipalities and their receptivity to federal support measures for investors. To this end, the study proposes a new indicator, namely, the share of social and other benefits to the population in the sum of social benefits and taxable income of individuals and individual entrepreneurs. Unlike traditional wage indicators, the proposed indicator adequately reflects the income of the population and is not distorted by territorial price differences. This indicator for the AZRF varies from 5 % in municipalities with accelerated gas production to more than 50 % in peripheral areas. A reduced share of social benefits is typical for agglomerations of regional capitals, industrially developed municipalities or important seaports. The receptivity of municipalities to federal preferential treatment is analysed based on the author’s processing of resident registers (distribution of residents by Arctic municipalities). According to the results, investors are primarily attracted to the largest urban agglomerations of the European Russian Arctic (about half of residents of the Russian Arctic are in Arkhangelsk and Murmansk agglomerations), while the impact of preferential treatment on peripheral municipalities is minimal or non-existent (there were no residents of the Russian Arctic in approximately 20 percent of municipalities in three years). Such a situation will increase the imbalance in economic development of Arctic municipalities, therefore, state policy should provide various measures to support different municipalities, which should be substantiated in further research.

Author Biography

Olga V. Kuznetsova , Institute of Economic Forecasting of RAS

Dr. Sci. (Econ.), Professor, Professor of RAS, Chief Research Associate, Institute of Economic Forecasting of RAS; http://orcid.org/0000-0003-4341-0934; Scopus Author ID: 57204369406 (47, Nakhimovsky Ave., Moscow, 117418, Russian Federation; e-mail: kouznetsova_olga@mail.ru).

References

Druzhinin, A., & Lialina, A. (2020). The Russian coastal municipalities: conceptualization, identification, classification. Geopolitika i ekogeodinamika regionov [Geopolitics and ecogeodynamics of regions], 6 (2), 20-35. (In Russ.)

Dushkova, D. O., Tikunov, V. S., & Chereshnya, O. Yu. (2019). Methodology for assessment of public health at the municipalities level (a case study of Arkhangelsk oblast). Geografiya i prirodnye resursy [Geography and Natural Resources], (1), 127-136.

Fauzer, V. V., Lytkina, T. S., & Fauzer, G. N. (2016). Features of population settlement in the Arctic zone of Russia. Arktika: ekologiya i ekonomika [Arctic: ecology and economy], (2), 40-50. (In Russ.)

Fauzer, V. V., Lytkina, T. S., & Smirnov, A. V. (2017). Arctic territories differentiation by density of population and economic development. Arktika: ekologiya i ekonomika [Arctic: ecology and economy], (4), 18-29. https://doi.org/10.25283/2223–4594-2017-4-18-31 (In Russ.)

Fauzer, V. V., Smirnov, A. V., Lytkina, T. S., & Fauzer, G. N. (2022). Rossiyskaya i Mirovaya Arktika: naselenie, ekonomika, rasselenie [Russian and World Arctic: population, economy, settlement]. Moscow: Politicheskaya Entsiklopediya. (In Russ.)

Garcilazo, J. E., & Martins, J. O. (2020). New trends in regional policy: place-based component and structural policies. In: M. M. Fischer, P. Nijkamp (Eds.), Handbook of Regional Science (pp. 1-22). Springer. https://doi.org/10.1007/978-3-642-36203-3_139-1

Goncharov, R. V., Dankin, M. A., Zamiatina, N. Y., & Molodtsova, V. A. (2021). Cathedrals the desert or strongholds? The typology of the settlements in the Russian Arctic by their interconnections with the surrounding territory. Gorodskie issledovaniya i praktiki [Urban studies and practices], 5 (1), 33-56. https://doi.org/10.17323/usp51202033-56 (In Russ.)

Kazakova, S. M., & Klimanov, V. V. (2022). Transformation of the development goals of the Russian Arctic. Gosudarstvennoe i munitsipalnoe upravlenie. Uchenye zapiski [State and Municipal Management. Scholar Notes], (1), 96-110. (In Russ.)

Korchak, E. A. (2023). Challenges and Opportunities for the Development of Single-Industry Towns in the Russian Arctic. Arktika i Sever [Arctic and North], (50), 23-46. (In Russ.)

Korchak, E. A., & Serova, N. A. (2019). Polar Views on the Arctic: Arctic Policies of Russia and Circumpolar Countries. Kontury globalnykh transformatsiy: politika, ekonomika, pravo [Outlines of Global Transformations: Politics, Economics, Law], 12 (5), 145-159. https://doi.org/10.23932/2542–0240-2019-12-5-145-159. (In Russ.)

Kovaleva, O. M. (2021). Migration trends in the Arctic zone of Russia in 2012–2019. Narodonaselenie [Population], 21 (4), 147-160. (In Russ.)

Kuznetsov, A. V., & Kuznetsova, O. V. (Eds.). (2015). Regionalnaya politika: zarubezhnyy opyt i rossiyskie realii [Regional Policy: Foreign Experience and Russian Realities]. Moscow, 137. (In Russ.)

Kuznetsova, O. V. (2022). Development of municipal issues in the state spatial policy of Russia. Regionalnye issledovaniya [Regional research], (2), 16-24. https://doi.org/10.5922/1994–5280-2022-2-2 (In Russ.)

Lazhentsev, V. N. (2022). Sotsialno-ekonomicheskie problemy Severa Rossii: sbornik avtorskikh statey po severo-arkticheskoy tematike [Socio-economic problems of the North of Russia. Collection of author’s articles on the North Arctic theme]. Syktyvkar: Federal Research Center Komi Scientific Center of the Ural Branch of the Russian Academy of Sciences, 296. (In Russ.)

Leksin, V. N., & Porfiriev, B. N. (2021). State Arctic Policy of Russia. Federalizm [Federalism], 26 (1), 15-43. https://doi.org/10.21686/2073–1051-2021-1-15-43 (In Russ.)

Leksin, V. N., & Porfiriev, B. N. (2021). The uniqueness of the Russian Arctic as an object of public administration. Vestnik Instituta Mirovykh Tsivilizatsiy [Bulletin of the Institute of World Civilizations], 12 (3), 71-80. (In Russ.)

Leksin, V. N., & Porfiriev, B. N. (2022). The other Arctic: Experience in System Diagnostics. Problemy prognozirovaniya [Studies on Russian Economic Development], (1), 34-44. https://doi.org/10.1134/S1075700722010105 (In Russ.)

Leksin, V. N., & Porfiryev, B. N. (2019). Russian Arctic: The Logic and Paradoxes of Changes. Kontury globalnykh transformatsiy: politika, ekonomika, pravo [Outlines of global transformations: politics, economics, law], 12 (5), 69-85. (In Russ.)

Loginov, V. G., Zakharchuk, E. A., Pasynkov, A. F., & Maksimchik, M. A. (2020). Financial aspects of the rotation based work in the Arctic region (on the example of the Yamalo-Nenets Autonomous District). Kreativnaya ekonomika [Creative economy], 14 (12), 3581–3600. (In Russ.)

Pilyasov, A. N. (2018). Arctic diagnostics: bad is not a meter — this is another phenomenon. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the market: forming the economic order], (5) , 35-54. https://doi.org/10.25702/KSC.2220-802X.5.2018.61.35-54 (In Russ.)

Pilyasov, A. N. (2023). Arkticheskaya promyshlennost i promyshlennaya politika: opyt razvitiya v poslednie desyatiletiya [Arctic Industry and Industrial Policy: Development Experience in Recent Decades]. Moscow, Smolensk, Universum, 276. (In Russ.)

Pilyasov, A. N. (Ed.). (2022). Osvoenie Arktiki 2.0: Prodolzhenie traditsiy sovetskikh issledovaniy [Arctic Exploration 2.0: Continuation of the Traditions of Soviet Research]. Moscow: Krasand, 432. (In Russ.)

Pilyasov, A. N., & Molodtsova, V. A. (2021). Resilience of Russian Arctic cities: methodological approaches and quantitative assessments. Izvestiya Komi Nauchnogo Tsentra UrO RAN [Proceedings of the Komi Science Centre of the Ural Branch of the Russian Academy of Sciences], (2), 5-26. https://doi.org/10.19110/1994–5655-2021-2-5-26 (In Russ.)

Pilyasov, A. N., & Poturaeva, A. V. (2021). Russia’s Arctic facade: current state, challenges of uneven development and priority public policy measures. Vestnik SPbGU. Nauki o Zemle [Vestnik of Saint Petersburg University. Earth Sciences], 66 (4), 734-758. https://doi.org/10.21638/spbu07.2021.406 (In Russ.)

Pliseckij, E. E., & Malitskaya, E. A. (2017). The features of state and municipal management of the development

of single-industry settlements in the Arctic zone of the Russian Federation. Arktika i Sever [Arctic and North], (26), 85-97. https://doi.org/10.17238/issn2221–2698.2017.26.85 (In Russ.)

Porfiriev, B. N. (Ed.). (2018). Sotsialno-ekonomicheskaya problematika Rossiyskoy Arktiki v issledovaniyakh institutov Rossiyskoy akademii nauk: istoriya, sovremennost, perspektivy [Socio-economic problems of the Russian Arctic in research institutes of the Russian Academy of Sciences: history, modernity, prospects]. Moscow: Scientific Consultant, 802. (In Russ.)

Shakirova, D. F., Badina, S. V., & Pankratov, A. A. (2022). Approaches to the typology of Russian Arctic zone municipalities annotation. InterKarto. InterGIS [InterCarto. InterGIS], 28 (2), 69-85. https://doi.org/10.35595/2414–9179-2022-2-28-69-85 (In Russ.)

Skufina, T. P., & Korchak, E. A. (Eds.). (2021). Sotsialno-ekonomicheskaya dinamika i perspektivy razvitiya rossiyskoy Arktiki s uchetom geopoliticheskikh, makroekonomicheskikh, ekologicheskikh i mineralno-syrevykh faktorov [Socio-economic dynamics and prospects for the development of the Russian Arctic, taking into account geopolitical, macroeconomic, environmental and mineral resource factors]. Apatity: Kola Research Center of the Russian Academy

of Sciences, 209. (In Russ.)

Tatarkin, A. I., Zakharchuk, E. A., & Pasynkov, A. F. (2015). Arkticheskie territorii Rossii: formirovanie statisticheskikh rayonov i obosnovanie vozmozhnostey finansovogo razvitiya [Arctic territories of Russia: formation of statistical areas and justification of financial development opportunities]. Ekaterinburg: Institute of Economics UB RAS, 186. (In Russ.)

Timoshenko, A. I. (2011). The Russian region policy in the Arctic in the XX−ХХI centuries: problems of strategic continuity. Arktika i Sever [Arctic and North], (4), 1-13. (In Russ.)

Tsukerman, V. A. (Ed.). (2022). Innovatsionnoe razvitie promyshlennosti regionov Arktiki: problemy i perspektivy [Innovative development of industry in the Arctic regions: problems and prospects]. Apatity: Kola Research Center of the Russian Academy of Sciences, 138. (In Russ.)

Zakharchuk, E. A. (2019). Spatial structure of the formation of value added in the Arctic territories. Ekonomika Regiona [Economy of Region], 15 (2), 391-408. (In Russ.)

Zakharchuk, E. A., & Trifonova, P. S. (2018). Differentiation of the Arctic territories by the level of financial security. Izvestiya Uralskogo Gosudarstvennogo Gornogo Universiteta [News of the Ural State Mining University], (4), 143-151. (In Russ.)

Published

30.06.2024

How to Cite

Kuznetsova О. В. (2024). Economic Differentiation of Municipalities of the Russian Arctic and their Receptivity to Federal Preferential Treatment. Economy of Regions, 20(2), 462–476. https://doi.org/10.17059/ekon.reg.2024-2-8

Issue

Section

Cities, Agglomerations, Municipal Districts of the Arctic