Reindustrialization of the Rural Economy in Zabaikalskii Krai: Pitfalls and Possibilities

Abstract

The article considers the settings, features, and possibilities of reindustrialization (new industrialization) of the rural economy in Zabaikalskii krai. It analyzes the consequences of the collapse of the Soviet agrarian development model in remote regions of Russia, resulting, in particular, in a decline of its agroindustrial complex and chronic losses for local agricultural producers. The paper further describes the pitfalls on the way to a sustainable rural development due to the absence of effective mechanisms necessary to overcome regularly occurring environmental and climatic phenomena, stimulate investment activity, and create competitive advantage. Based on sociological survey data, a range of agribusiness community opinions is presented with respect to the existing problems in the agricultural sector, vital trends and ways of its modernization, and a redesign of its institutional and financial environment, which can boost the development of agribusiness in Zabaikalskii krai. Two approaches are reviewed in the context of reindustrialization of the agroindustrial complex in Zabaikalskii krai. The first presupposes emphasis on attracting large producers capable, at their own expense and with government support, of carrying out industrialization-type investment projects, which will make it possible to reduce dependence on unfavorable weather conditions. The second approach relies on the advantages of a mixed economy, which necessitates the creation of mechanisms for integrating agroindustrial complex enterprises of various levels (small, medium, and large) into the economic external and internal space.