External Conditions, Internal Economic and Social Environment of a Subsidized Region: Strategic Analysis

Abstract

Aim. The presented study aims to analyze the external and internal environment of the Kabardino-Balkar Republic, identifying opportunities and threats to the region’s economic and social development.Tasks. The author examines the methodology for analyzing the external and internal environment of the region; analyzes global opportunities and threats to the development of the Kabardino-Balkar Republic, as well as strengths and weaknesses of a subsidized region according to basic limiting economic factors.Methods. The author conducts an assessment of the region based on the basic factors of the external and internal environment. Strategic trends are summarized and inferred from statistical observations. The study also uses analytical and synthetic methods.Results. The Kabardino-Balkar Republic, a region with a continuously low level of economic and social development, is chosen as the subject of the study. It is established that this region’s natural resources can serve as a driver of economic growth. However, the region’s low investment attractiveness and the large amount of investment required make it impossible to seize this strategic opportunity. Due to the low level of economic development in the Republic, there is an outflow of the working-age population, which is an obvious strategic threat. The level of development of production facilities and infrastructure is below the national average. The region’s main specialization includes the agro-industrial complex (AIC), wholesale and retail trade. There is a lack of capital for the implementation of the development strategy in the Kabardino-Balkar Republic, the subnational budget largely depending on gratuitous contributions from the center.Conclusions. The conducted analysis of the external and internal environment makes it possible to identify opportunities and threats and determine strategic priorities supported by competitive advantages.