Abstract

The objective of the paper is to analyses the development of the service industry in Russian Federation to understand whether the country crossed the threshold of the postindustrial economy. We see that the development of service industry in Russia not stable and shows decline. At the same time, service industry gives new options to rural people and rural territory to broaden economic diversity and make it less damaged by mining activities. The service sector provides new opportunities for rural people in search of a job. The authors revise the average month wages in different economic sectors in the Republic of Karelia. The first objective is to find out the sectors with the highest wages. But the second and the most important objective was to find average wages in services sectors and weather they can attract people to village. Authors revise main problem preventing the development of service sector, notably, info communicational services and proposes some solutions.

Highlights

  • Unemployment in the countryside is the great problem, notably, for Russian Federation due to its large territories

  • We argue that in the era of postindustrial economy and digital economy, agricultural products, but non-importables mentioned by Van der Ploeg et al [3], Ray C. [4] are able to preserve the environment and cultural authenticity

  • We can discuss about health service, but in Russian Federation the health services are free for people so major population use state hospitals

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Summary

Introduction

Unemployment in the countryside is the great problem, notably, for Russian Federation due to its large territories. People leave their native places and migrate to big cities of Russia in search of job. We cannot tell that about the countryside due to the fact that service industry is almost absent there. It should be mentioned that info communications and info communicational services influence on the development of service industry. Digital literacy and Internet coverage makes the core role for individuals to find a job or to sell their services. That is why we can say that the Internet coverage of a territory makes one of the most important roles for territorial development today

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