Economic autonomy of regions in the new reality

Vladimir S. Bochko

Abstract


The article expands on the concept of new reality (new normal) for Russia, which includes the increased role of individuals and larger economic autonomy of territories in their interaction with the federal center. The rationale is based on the hypothesis that, in the new reality, the improved wellbeing of people and elimination of economic disparities between the territories can be ensured by expanding their economic autonomy, because it leads to the increase in their intellectual, industrial and technological capacity. In this study, the author used the basic provisions of the classical economic theory, the theory of behavioral economics, interdisciplinary approach, and the method of statistical groupings. The article presents the trends in the economic autonomy of the territories, which include a decrease in the number of donor regions and differentiation of territories in terms of their socio-economic indicators. It substantiates the assumption that the differentiation of territories puts constrains on their socio-economic development and may lead to the emergence of a «regional peripheral economy,» the attribute of which is the dependence of the periphery from the center, reduced local initiative, and slowdown of technological development. The article identi es the need to use the mindset of people, their psychological attitudes in the economic development, the «second invisible hand of the market» and «soft power» in order to move beyond the «regional peripheral economy.»

The conducted study demonstrates that the expansion of economic autonomy of the territories is not the increased self-isolation of regions and municipal entities, but consists in the need to retain a signi cant part of the income from the production of goods and services created by local people, so that it could be autonomously used by regional and municipal authorities and directed to improving the wellbeing of territory’s residents.The author proposes to prepare a regulatory and legal document in order to ensure and strengthen the economic autonomy of the territories, and makes speci c proposals on the principles of its content and structure.


Keywords


new reality (new normal); economic autonomy of regions; municipal entity; federal center; wellbeing of people; consolidated budget; socio-economic di erentiation of territories; «regional peripheral economy»; psychological attitudes for economic developme

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References


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DOI: https://doi.org/10.15826/recon.2016.2.2.016

Copyright (c) 2018 Vladimir S. Bochko