Establishment of Priority Development Areas in Transbaikalia: Problems and Prospects

Abstract

The problem of advanced socio-cultural development of Zabaikalye Territory is considered in the context of its entering into entity composition of the Far Eastern Federal District. The need of searching the mechanisms to advance the region’s development is preconditioned by considerable lagging of Zabaikalye in the socio-economic development indicators from the FEFD entities. Establishment of the priority development areas is considered as one of such mechanisms. The possibility of their establishment is assessed in terms of the historical experience that Zabaikalye has in establishing territories and zones beneficial terms and preferences. The article makes assessment of this experience, analyses the factors that determines the results of using the mechanisms provided. It demonstrates that establishment of the territories with beneficial business terms did not exert a considerable impact on the rates of economic growth and results of social development in Zabaikalye Territory during all stages. In the capacity of competitive advantages the region had to create special economic zones, free economic zones and priority development areas, the Territory used the mineral resources endowment, the geographical position at the border with PRC. In order to assess the prospects of establishing the priority development areas in Zabaikalye, the article presents the well-known theoretical approaches of P. Krugaman and N.V. Zubarevich, shows that the competitive advantages of natural character do not provide a sustainable socio-economic growth. It substantiates that acceleration of developing the territories and levelling out the socio-economic differences can be made possible on the basis of developing the human potential and the sector of social services. The authors voice concerns that in the existing terms of Zabaikalye Territory’s degradation Establishment of the priority development areas is problematic. Prospective use of the benefits and preferences claimed for in the Project of Establishment of PDA «Zabaikalye» require priority development of the social sector, provision of the social levelling-out. The need to activate the social processes and to form the regional development program that meets the complexity of the socio-economic situation is determined by the growing completion level between the microregion’s entities for attracting investment resources. In this situation, the Zabaikalye Territory’s odds to permanently take a hold on the periphery of the FEFD socio-economic development are rather high.