Regional development corporation in Russia - the problem of functioning

Abstract

The transition to a market economy for the Russian regions has complicated the old problems of regional development and created new ones. As a result, there was an imbalance in regional development. Some regions received additional incentives for their development, while many regions experienced stagnation. Regional policy measures are required to correct this imbalance. This becomes possible with the use of special mechanisms for regional development. These include Development Corporations. Such corporations were created in the 1960s and 70s and operate in the United States, Colombia, Brazil, Belgium, and other countries. Development corporations have now been established in many Russian regions. According to the organizational and legal structure, most of them are joint — stock companies. Their founders and main shareholders are almost always the regional governments. The main goal of these corporations is to develop the regions by attracting investments for the implementation of various projects. The main task of the functioning of development corporations is the implementation of the mechanism of public-private partnership. However, the effectiveness of this mechanism of regional development for the vast majority of regions is low due to a number of three groups of factors — institutional, exogenous, and endogenous. The result of their combined action is the low efficiency of regional development corporations. The analysis of the reasons for low efficiency allows us to use the potential of development corporations, taking into account the world experience and Russian specifics. This question is currently insufficiently sanctified and this article is intended to eliminate this as far as possible.