The Role of Political Institutions in the Economic Development of the South of Russia in the New Reality

Abstract

Introduction. Ineffective resolution of economic problems by political institutions can jeopardize a country’s technological sovereignty in the face of existing geopolitical challenges. The purpose of the article is to identify areas for increasing the efficiency of the functioning of political institutions from the point of view of ensuring the economic security of the southern Russian regions, considering the challenges of socio-economic development that exist for them. Methodology and methods. This study centers on the Southern Federal District, which acts as an administrative entity responsible for implementing regional-level economic policies. The research utilized content analysis of scientific publications and comparative analysis of regional socio-economic indicators of economic development as part of implementing economic policy. The method for analyzing the influence of political institutions on economic development was based on the principle of balancing the combination of tactical and strategic decisions in assessing the effectiveness of implemented measures and was based on the basic principles of the theory of factors of production. Analysis. An analysis of the results of the economic policy pursued in the southern Russian regions showed that a relatively high level of resistance to sanctions challenges is ensured mainly by the export capabilities of agricultural products. However, the continued high level of import dependence on production increases the risk of conflict over the use of production factors between exportoriented companies and companies oriented to the domestic market, which creates significant threats to the implementation of national growth models. The turn of state economic policy towards the global East and South poses the tasks of the authorities of the southern Russian regions to develop transport infrastructure, as well as state support for companies participating in the construction of new production and supply chains. At the same time, increasing migration flows from border areas requires solving the problem of ensuring the socio-economic well-being of both the people moving and the host community. Results. It was found that the existing political risks to the economic development of southern Russian regions are associated with a lack of balance between the political decisions made and the strategic objectives of achieving technological sovereignty. It is concluded that the conditions of modern economic reality require economic and political mobilization to achieve value consensus and consolidation in society in order to solve the problems of economic development, implemented through the responsibility and patriotic position of political and economic elites at all levels of government. Authors’ contribution. I.V. Mitrofanova: development and justification of the concept; interpretation and synthesis of research results; O.A. Chernova: formation of methodology; development of research design; content analysis; formulation of conclusions.