Problems of depressed regions in the Russian Federation and possible solutions

Abstract

The subject of the study is the depressed regions of the Russian Federation, the object of the analysis is the characteristics of the depressed regions of Russia. The authors focus on identifying the key problems that hinder or slow down their development. The authors identified three main reasons for the low level of socio-economic development of the regions (the problem of regional disproportion, excessive concentration of resources in the capital of the Russian Federation, the taxation system, and the process of its distribution), and the authors, based on these regulatory documents and statistical sources, presented their description and the reasons for the appearance of such problems. In addition, the authors considered the consequences of the unresolved issue of depressed regions. The scientific novelty of this study lies in the proposal of possible options for reducing the gap in the level of socio-economic development between regions, the formulation of a system of equalization of subjects. According to the authors, this will largely be facilitated by making changes to the tax distribution system, improving the mechanisms for distributing subsidies by region, activating government initiatives, taking into account the practice of foreign countries. The authors considered an example of solving the problem by Germany, also analyzed the experience of Europe's "cohesion policy", according to the authors, such technologies need to be introduced into Russian reality. The authors also concluded that the important role plays the brand of the regions, the regions should use this tool more effectively.