Ethno-Economic Areas: Development in the Context of the Dilemma of “Excess-Shortage” of the State

• Main Author: Nikolay Vladimirovich Gontar
• Format: Article
• Language: Russian
• Published: Volgograd State University 2016-10-01
• Series: Vestnik Volgogradskogo Gosudarstvennogo Universiteta. Seriâ 3, Èkonomika,Èkologiâ
• Subjects: ethnic economy; ethno-economic areas; state regulation; social and economic development; North Caucasus
• Online Access: http://ges.jvolsu.com/index.php/en/component/attachments/download/1036
• ISSN: 1998-992X; 2408-9478

The article is devoted to the problems of development of ethno-economic areas as the socio-economic systems, with a special type of economic practice and social interaction. In many ways, the peripheral status of the territory determines the increased value of the state here. Measures of state regulation in ethno-economic habitats acquire the character of the dichotomy of “excess-shortage (deficit) of the state”. In sum both processes form the cumulative effect of fixing the peripheral status of ethno-economic areas. The mechanisms of this process are the purpose of the study. Through comparative studies of Russian and foreign experience the author analyzes scenarios of “excess state” against ethnoeconomic areas, such as a stepped intervention; bureaucratic rent (where there are two possible strategies – scientific rents, actually bureaucracy and competition rents by bureaucracy); expansion at the intersection of these vectors intervention. The analysis results can be used for the purposes of public resources management optimization within the public sector in ethno-economic habitats. In the context of the optimization problem of the state policy in relation to ethno-economic areas as measures like leveling excess state and compensating the deficit in the areas most important for such areas, the author proposes: the objectification of SMEs’ access to public contracts, creation of conditions for cooperation in the industrial, financial and credit field while eliminating subsidies and distribution practices (that generates a bureaucratic rents and leads to the formation of “excess state”). It is also relevant to examine the effectiveness of control measures on the basis of cost-benefit analysis of consumer demand for such measures. As part of the management of public funds (staff costs, efficiency) the evaluation of management efficiency on the basis of comparative studies on a commercial asset management companies is possible. It is also proposed to use the ethnic characteristics of the collective interaction as a compensation for the current market weakness habitat data.