Key Aspects of the Integration of the Donetsk People’s Republic into the Economic Space of the Russian Federation

Abstract

The article considers the problems of integration of the new region - Donetsk People’s Republic into the economic field of the Russian Federation. The main tasks to be solved in the liberated territories are given. It is suggested to form a state programme aimed at solving these problems. It is revealed that one of the key problems limiting further economic growth, along with the ongoing military operations, is the outflow of able-bodied population. As a strategic goal of socio-economic development of the Republic for the next 10 years, it is proposed to restore infrastructure, modernize industry and structural reform of the economy, increase the population, as well as the quality and duration of life. To achieve this goal, three directions are considered: formation and accumulation of human capital; creation of space for human capital development; creation of appropriate economic environment. The stages for the realization of goals and tasks have been identified. It has been determined that industry should form the basis of the economy of the reviving Donbas. It is necessary to develop manufacturing industries, knowledgeintensive and complex production. It is of fundamental importance to improve the quality of economic growth - to build and move along the supply and value chains from the first links, with a low specific weight of added value in the price of goods, to the next links, with a higher specific weight of added value. Priority sectors of the Republic are identified. It was noted that the activation of economic development cannot be carried out without reforming the existing system of state administration in the Republic. An important task is to transfer the functioning of public authorities to the technology of strategic and programme-target planning and budgeting.