Journal of Applied Economic Research
ISSN 2712-7435
Favorable Social Climate as Instrument of State Regional Poli
Gusev A.B.
Abstract
There are a lot of regions in Russia which objectively have no chance to break away from permanent socio-economic backwardness on their own. Such regions need special modes of long-term period development that would ensure their sustained investment appeal. Under the conditions when it is not possible to attract domestic capital to the region with standard methods of fiscal benefits, it is necessary to activate a territorial development model based on the principle "the desire to live in the region creates desire to invest in it". The purpose of this survey is to develop and test a friendly social climate that makes it possible to imrove the social comfort of living in a region and to meet new social standards in a long-term perspective. In a situation of a budget deficit it is necessary to correctly determine the regions that, on the one hand, are in the greatest need of peculiar anti-crisis development, and, on the other hand, have a sufficiently high level of administration to be ready to take on a new challenge and provide a comfortable institutional environment for expected investors. The region's demand is measured by gross regional product per capita, and the region's capability is verified by the National rating of the investment climate by the Agency for Strategic Initiatives. By applying the proposed methodology, two regions were identified that satisfy the indicated conditions the most: Kostroma Oblast and the Chuvash Republic. Considering the varying composition of what constitutes a favorable social climate, two universal instruments of social support for families with children were proposed: higher than the federal standard allowances for children up to 14 years of age in relation to the average wage in the region, and housing subsidies depending on the number of minors in the family. The estimation of required funds proved the necessity to double regional budget expenditures. To successfully maintain a favorable social climate in the region, a set of institutional changes
Keywords
state regional policy; social policy; regional economic development; regional social climate; regional investing climate; strategy of spatial development in Russia.
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About Authors
Gusev Alexander Borisovich – Candidate of Economic Sciences, Head of the Department, Russian Institute for Economy, Policy and Law in Science and Technology, Moscow, Russia (105064, Moscow, Zemlyanoi Val street, 50a, Building 6); e-mail: a_goose@mail.ru.
For citation
Gusev A.B. Favorable Social Climate as Instrument of State Regional Policy. Bulletin of Ural Federal University. Series Economics and Management, 2017, Vol. 16, No. 6, 928-953. DOI: 10.15826/vestnik.2017.16.6.044.
Article info
Received September 15, 2017; Accepted October 16, 2017.
DOI: http://dx.doi.org/10.15826/vestnik.2017.16.6.044.
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