Harmonization of the Development of a Resource Region (Based on the Kuzbass)

Abstract

The article considers the problems related to harmonizing the development of a resource area (a region). Modern scientific literature generally presents resource areas as regions producing oil and natural gas. In the context of the article, Kemerovo Region – Kuzbass is selected as the object of this study, where neither oil nor natural gas are produced, and where the fundamental industry is coal mining. We point out that, in the absence of consensus between authorities and business concerning the prospective development of the region, its economy may decay even despite obvious success in coal extraction and processing. It is strategically important for the Kuzbass to create an efficient infrastructure for transforming the development of the coal industry into the economy-wide development of the region. Taking into account the best international harmonization practices, we propose a conceptual system of mechanisms aimed at coordinating the interests of commoditydriven business and resource area. It is built on defining, assessing and launching the mechanisms for harmonizing ‘common grounds’ shared by coal industry and Kemerovo Region. These mechanisms are as follows: first, moving the decision-making center concerned with mineral resources development into the region imminently close to coal-mining areas; second, effective tax administration; third, increasing localization; fourth, regional infrastructure development; fifth, a new environmental standard for the region; and sixth, a fair social standard in the region. The concept in question relies on the need to introduce business models to the industry management that would harmonize with the interests of the territory. At the same time, the territory should start to build a new economy by creating new standards that would establish requirements for doing business.