Far East: development prospects (general characteristic)

The vast territory of the Russian Federation predetermines the emergence of the most ambitious and at the same time promising ideas for the development of the capabilities of certain regions. Among those places where such initiatives can be implemented in large numbers - the Far East. Due to what advantages this region can be dynamically built? What are the prospects for the development of the Far East?

General characteristics of DV

The Far Eastern region of Russia is a territory important both in the military-strategic aspect and in the economic one. The total area of this area is about 36% of the territory of the Russian Federation. Prospects for the development of the Far East are associated with the presence here of a huge amount of natural resources. However, the practice of developing the capabilities of the region is complicated by insufficiently developed infrastructure, as well as by population migration.

Remoteness from Moscow, the political and financial center of the Russian Federation, is also sometimes seen as a deterrent in the development of the Far East. The current concept of Russia's foreign policy presupposes the strengthening of the country's position in the Asia-Pacific region. Successful implementation of this task presupposes the solution of the noted problems characteristic of the Russian Far East, stimulation of economic recovery of the Russian regions located here. Therefore, the state pays special attention to the region.

Competitive advantages of the Far East

Prospects for the development of the Far East are largely related to its competitive advantages over other parts of Russia. These include direct geographical proximity to large markets of the countries of the Asia-Pacific region - China, South Korea, Vietnam. The economy of these countries is growing steadily. The second most important competitive advantage of the Far East (the prospects for the development of this territory are based on it, perhaps to a determining extent) - the presence of a large number of natural resources: coal, oil, gas, iron, non-ferrous metals, timber. The third competitive advantage of the region lies in the diversity of the climate. This predetermines the opportunities for successful use of the Far East for agricultural development purposes.

Factors of successful development of the region

Under what conditions are the prospects for the development of the Russian Far East to be realized? First of all, a significant investment in infrastructure - transport, energy. The next most important area of work is to stimulate business development with the aim of increasing the overall level of capitalization of the regional economic system, increasing the incomes of the population and tax deductions to the budget. The solution of this task adjoins another important aspect of the activities of the state in the development of the possibilities of the Far East - the formation of a powerful market demand in this region.

Another significant direction of the work of the authorities is to increase the comfort of living of citizens in order to stop migration to other parts of the Russian Federation and, conversely, to make the Far East attractive for relocation from other entities.

State toolkit

What are the practical tools that make it possible to realize the prospects for the development of the economy of the Far East, the state has? First of all, researchers include resources that allow creating special economic clusters in the region characterized by a high degree of investment attractiveness - in particular, for foreign partners. The next tool that the authorities have is the possibility of a significant increase in the incomes of a part of the population working in the budgetary sphere, by indexing the corresponding labor compensation. Due to this possibility, the state can stimulate the growth of solvent demand in consumer markets, and also contribute to enhancing the region's attractiveness for migration of citizens from other regions of the Russian Federation.

A significant amount of financial resources, through which the prospects for economic development of the Far East can be realized, is concentrated in the hands of private businesses aimed at constructive interaction with the authorities. At the same time, according to many analysts, the corresponding sentiments are becoming more noticeable due to the sanctions of Western countries against Russia. Entrepreneurs from the Russian Federation who do not have access to foreign markets because of artificial restrictions, somehow reconsider their activities in favor of investing in the country. The Far East can act as an attractive region for them in terms of implementing promising financial investments.

International partnership in the Far East: Russia and China

The interest in promoting the development of the Far East has already been shown by many foreign partners of the Russian Federation. Among the largest - of course, China. So, for example, in 2013 the volume - when there was no Western sanctions - the trade turnover between the Far East and the PRC was more than 12 billion dollars. The corresponding indicators have all chances for rapid growth, firstly, due to natural economic reasons, which include the development of the Far East, and secondly, due to an additional incentive for further growth of turnover between the RF and the PRC due to Western sanctions.

It is expected that by 2020 the trade turnover between China and Russia will reach $ 200 billion. A significant percentage of it is likely to be attributed to Far Eastern projects, to which the famous "Siberia Power" gas pipeline is directly related. The one that will be built on the basis of the agreements between the Russian Federation and the PRC, concluded in 2014. About what prospects for the development of Siberia and the Far East are opened in connection with the signing of the relevant agreement, in a nutshell is impossible to say. But if you try, the most grandiose.

But while we continue about the Far East. What other states express their willingness to cooperate with Russia in this region?

Far East and South Korea

South Korea is also interested in acquiring the opportunities that the Far East provides with Russia. Prospects for the development of cooperation between Russia and South Korea are mainly related to the industrial sphere. The trade turnover between the countries in 2013 was comparable to the figures for the cooperation of the Far East and the PRC and amounted to about $ 5 billion.

It is noteworthy that specialists are also invited from North Korea to implement some projects for work in Russia. Perhaps, this will be an additional factor of rapprochement between the two states, in which one people live.

Far East and North Korea

Actually, direct cooperation between Russia and the DPRK is also actively developing. At the end of 2014, trade between the countries showed modest figures - about $ 30 million. But this, along with that, is 70% higher than in 2013. About 25 representative offices of companies from the DPRK are present in the Far East. The North Korean state significantly simplified the visa criteria for Russian entrepreneurs.

The Far East and Japan

Japan has traditionally been a major trading partner of the Russian Federation. Due to the geographical factor, the number of key regions where the respective communications are being realized is the Far East. Prospects for the development of the Russian-Japanese trade partnership have great potential. True, now their practical implementation is likely to be greatly hampered by the fact that Japan has joined the Western sanctions. At the same time, experts believe that there is a chance for normalization of cooperation between the two countries, and they are not bad.

What other countries are actively cooperating with the Far East? Prospects for the development of partnership, in particular with Vietnam and Singapore are assessed by experts as very positive. Thus, the trade turnover with both countries in 2013 totaled about 300 million dollars. By the way, none of them shows a public interest in following the line of the West towards the Russian Federation. Therefore, there is every chance for further growth of cooperation between Russia, Vietnam and Singapore in the Far East. In the long term, it is possible to establish partnership between the Russian Federation and a number of other states in the region - India, Latin America, South Africa.

The Far East and the USA

The world's largest economy is considered one of the leading initiators of sanctions against the Russian Federation, but before the relations between Russia and Western countries on the foreign policy arena deteriorated, the prospects for cooperation between Russia and the US in the Far East were seen by many experts as quite obvious. So, there was an interest of Americans in the construction of industrial enterprises, infrastructure facilities, apartment houses, and investing in agriculture. It is difficult to say how possible the resumption of cooperation between Russia and the United States in this region again. But many researchers believe that private American corporations - unlike, perhaps, the US government, continue to view the Russian Federation as a quite reliable partner, including in the aspect of implementing promising initiatives in the Far East.

The Far East and the Unified Energy System

Among the most significant and positive factors that can affect the development of the Far East - the integration of the economies of the Russian Federation and the EEA countries: Belarus, Kazakhstan, Kyrgyzstan, Armenia.

The corresponding area of partnership of states may involve the initiation of projects in the most diverse regions of the common economic space - including the Far East, despite the considerable geographic remoteness of this part of the Russian Federation from the allies. Entrepreneurs from the EEA states, as the researchers believe, can very well make the most significant contribution to the development of the economic system of this Russian region.

Government program

Problems and prospects for the development of the Far East are being studied at the state level. As a result of many years of work, the authorities developed a strategy for socio-economic development of the Far East, as well as the Baikal region. This initiative was approved in December 2009. It must be implemented before 2025. Having studied the problems and prospects for the development of the Far East, the state set the task of creating a socio-economic system in the region capable of ensuring a high standard of living for citizens residing in it.

The total volume of investments, which is supposed to be allocated for the implementation of the program, is about 411 billion rubles. As a result of its completion, it is calculated to create 69.9 thousand jobs in the region and to increase the volume of GDP in the relevant part of the Russian Federation by 2.6 times, the volume of shipped goods - 2.3 times, the total amount of investments - 3.5 times, the number Citizens, belonging to the category of economically active population - 1.1 times.

Current tasks

What are the tasks facing the federal and local authorities in the socio-economic development of the Far East right now?

Among them are:

- improving the comfort of the population;

- stimulating the increase in the share of the middle class in the social structure of the population of the constituent entities of the Russian Federation in the Far Eastern Federal District and the Baikal Region (the income of a working person must be at least 6 subsistence minimums);

- assistance in development of personnel, introduction of new educational concepts;

- Increasing the level of investment attractiveness of the region;

- modernization of the energy system;

- development of transport infrastructure;

- modernization of communication systems;

- stimulating entrepreneurial initiatives by reducing bureaucracy and removing various restrictions;

- assistance in increasing the effectiveness of law-making processes;

- Improvement of ecology.

Of course, within the framework of current activities the state faces the task of further developing partnerships with Russian businesses, foreign states and enterprises.

So, we have examined the main problems and prospects for the development of the Far East. This region has a huge natural-resource and climate potential, it has an optimal geopolitical position in many aspects. There are prospects for the development of transport in the Far East, social infrastructure, production, agriculture and many other sectors of the economy. Interest in cooperation with the enterprises of the region is expressed by the largest economies neighboring it - the PRC, South Korea, Vietnam, Singapore.

Problems and prospects for the economic development of the Far East are being actively studied by Russian and foreign researchers. Continuing work is being done to further optimize the strategy for mastering the region's unique capabilities. At the same time, interest in a constructive partnership based on the opening opportunities of the Far East is shown by both private and state organizations - both Russian and foreign. The scale of companies wishing to be present in the region is also very different - it can be either large businesses or small and medium-sized enterprises.