R-ECONOMY

Relevance The growing importance of creative industries in Russia’s economy underscores the need for effective management strategies to support the reindustrialization of second-tier cities, with a focus on socio-economic growth and the preservation of local identity. Research Objective The article aims to identify key factors that influence the development and implementation of creative reindustrialization strategies in second-tier cities. Data and Methods Using econometric modeling, the study analyzed data from 50 industrial cities in Sverdlovsk and Chelyabinsk regions (2010-2024), sourced from the Federal State Statistics Service, the Ministry of Construction, Housing and Utilities, and the Presidential Grant Foundation. Results. The study identified key factors contributing to the growth of creative industries, including the expansion of creative sector companies, proximity to regional centers, increased grant applications, the presence of manufacturing enterprises, growth in local government revenue, and the development of new housing. A comprehensive set of government support measures was proposed, encompassing infrastructure development, financial assistance, educational initiatives, informational resources, and regulatory improvements. Conclusions Essential government support to creative industries should include infrastructure development, simplified administrative procedures, tax incentives, institutional and legislative backing, and export promotion. Other support measures can be tailored to the chosen management strategy and regional needs, resulting in the creation of a flexible system centered around local identity.

Relevance. Corruption remains a persistent issue in many countries, including Kazakhstan. By exploring the relationship between the socio-economic characteristics of specific regions and corruption, this research can provide a foundation for informed policy-making and targeted anti-corruption efforts and thus help mitigate its negative impact on regional development. Research Objective. The research aims to assess the impact of corruption on regional socio-economic development in Kazakhstan through the creation and application of a multifactor corruption index. Data and Methods. The study uses official statistical data on corruption offenses and regional socio-economic indicators, including industrial production, fixed asset investments, household expenditures, unemployment rates, and foreign trade volumes. A multifactor index methodology was employed, using Pearson correlation coefficients to calculate averaged absolute values of sub-indices for each indicator. Results. The study found strong correlations between corruption and socio-economic indicators in regions like East Kazakhstan, Abay, Akmola, and Kostanay. The economic structure of these regions plays a key role: East Kazakhstan and Akmola, with dominant mining industries, are more vulnerable to corruption due to public contracts and licensing. Kostanay’s agricultural sector, central to its economy, is prone to corruption in land allocation, subsidies, and procurement. The economic importance of these sectors amplifies the impact of corruption on development, strengthening the correlation. Conversely, regions with lower index values show weaker correlations in the analysis, likely due to economic diversity, incomplete data, or less effective governance mechanisms. Conclusions. The regional specificity of the interrelation between corruption and socio-economic development in Kazakhstan necessitates tailored approaches that consider the unique conditions of each region. These findings can be of interest to policymakers and other stakeholders. The proposed methodology allows for a more precise assessment of both hidden and visible corruption risks, highlighting critical areas for implementing effective anti-corruption measures.

Relevance. Technological sovereignty in the national economy cannot be achieved without a clear understanding of the state of regional industries, particularly their level of technological maturity. This crucial factor drives investment decisions and shapes regional development strategies. However, existing methods for assessing technological development often fail to account for industries’ reliance on foreign technologies and services. Research Objective. The study explores the concept of technological maturity in the context of managing regional industrial development, focusing on the case of regional industries in Russia. Data and Methods. To evaluate the technological maturity of regional industries, we propose an index derived from normalizing key indicators that capture the critical aspects of technological maturity. The normalized indicators are aggregated using the arithmetic mean. Correlation analysis was employed to identify factors influencing technological development. The study is based on official statistics from the Federal State Statistics Service (Rosstat) for 2022. Results. Technological maturity indices are calculated for Russian regions, identifying both strengths and weaknesses. Only nine regions have achieved a medium level of technological maturity, while most remain at low levels. Additionally, many regions leading in terms of technology are highly reliant on imported technologies and services, with minimal exports of domestically developed technologies. These results highlight the need for policy measures tailored to regions’ varying needs and levels of technological maturity. Conclusions The concept of technological maturity provides a strategic framework for regional industrial development that can enhance national economic competitiveness through both embracing modern technologies and ensuring technological independence. The technological maturity index provides a valuable tool for tracking key indicators of technological sovereignty in domestic industries and identifying investment priorities to strengthen it.

Relevance. Russia is currently facing sanctions, which have had significant economic and social consequences. These crises have revealed vulnerabilities in the socio-economic system, highlighting the importance of studying them to better address current challenges and mitigate future risks. Objective. The study aims to identify the vulnerabilities in particular aspects of sustainable development across Russia’s regions during the crises of the past 15 years. Data and methods. The study draws on data from the Federal Statistical Service (Rosstat) to calculate a sustainable development index for regions, which tracks the impact of crises on their economic, social, and environmental sustainability. The index is constructed using a classical method, comprising three averaged sub-indices, each representing one of the three components of sustainable development. A higher index value indicates greater sustainability, with the impact of crises varying across regions. Results. During the 2014 crisis, regions specializing in export-oriented industries or those with a significant share of foreign capital in their economies were hit the hardest. Socially, the most vulnerable regions were those along the Chinese border in the Far East, which were impacted by trade restrictions. The 2020 pandemic had economic effects on nearly all regions, with cities of over a million people and their agglomerations suffering the most due to the abrupt suspension of the tertiary sector. The social sphere responds most quickly to crises, while the environmental component is more inert but shows a negative trend despite the crises. Conclusions. For regions with underdeveloped and monocentric economies, support measures should focus on diversifying industries, particularly those aimed at mass consumption. In coal-mining regions, it’s important to develop service sectors related to the industry during stable periods. For the Far Eastern regions, the main support measure is to stimulate industries geared towards meeting Chinese demand.

Relevance. Inter-municipal cooperation is an effective tool for addressing resource deficits faced by municipalities, and its importance has grown in today’s context of socio-economic instability. However, the success of such cooperation largely depends on a careful selection of partners, which raises the question of how the strength of ties between municipalities impacts their ability to collaborate effectively. Research objective. The aim of this study is to explore how the spatial characteristics of interdependence between municipalities influence their interactions and cooperation. Data and methods. The research draws on official statistical data from Russia’s Federal State Statistics Service (Rosstat), as well as information from investment passports and municipal socio-economic development strategies. The study employs spatial correlation methods, cartographic analysis, and general research techniques, including analysis and synthesis. Results. The inter-municipal relationships in Sverdlovsk Region are highly uneven, with significant disparities in the level of involvement across different areas. These relationships are predominantly concentrated around the region’s administrative center and its neighboring municipalities, while the northern and eastern parts exhibit the weakest connectivity. Municipalities in the Ekaterinburg urban agglomeration are the most active participants in joint projects, whereas those in the southwestern part of the region show less involvement. The northern and eastern areas, in particular, demonstrate minimal engagement in forming partnerships with other municipalities, highlighting a stark regional imbalance. Conclusions. The study confirms a strong link between the interdependence of municipalities and the extent of their cooperation. Factors such as territorial and socio-economic proximity play a key role, but additional drivers, such as national or regional policies, also significantly influence inter-municipal collaboration. Interestingly, a lack of resources among potential partners does not appear to impede cooperation.

Relevance. The well-being of citizens is a key focus of national policies worldwide. Kazakhstan, however, is characterized by significant regional disparities in social well-being, which necessitates targeted programs and investments to improve conditions in less developed areas. Research Objective. This study aims to develop a national adaptive social well-being index to evaluate and spatially map the regions of Kazakhstan. Data and Methods. The methodology included identifying indicators through a literature review and regional data, conducting an expert survey to weight them, and creating a social well-being index. A spatial analysis was then used to calculate the index for each region. Results. The social well-being index shows significant disparities across regions. Astana, Almaty, and Atyrau demonstrate strong social welfare, driven by economic growth and advanced social infrastructure. In contrast, Karaganda, Pavlodar, and Shymkent show lower social welfare, highlighting the need for targeted interventions and investments. Conclusion. The findings offer valuable insights for policymakers to design strategies for sustainable socioeconomic growth in Kazakhstan. The proposed index can help national and regional authorities monitor social well-being.

Relevance. The global imperative for adopting a low-carbon economy resonates worldwide, yet comprehensive assessments specific to the Russian economy remain scant. This is especially important considering the significant differences in the level of transition to sustainable development among Russian regions. Research Objective. This study aims to introduce a robust methodology for evaluating and analyzing the international trade of low-carbon goods (LCGs) across various Russian regions and assessing its effects on fuel combustion emissions. Data and Methods. Data on LCGs trade were obtained from the Federal Customs Service of Russia. In conjunction, datasets from Rosstat and the Central Bank of Russia were incorporated for comprehensive econometric modeling. The analytical framework employed Tobit and quantile regressions. Results. The study uncovers significant disparities among Russian regions regarding the intensity of low-carbon goods exports and imports. This variation highlights the diverse competencies in LCGs production, as well as differing ecological agendas and consumption patterns across regions. Additionally, the research demonstrates that, although the widespread adoption of advanced production technologies is positively correlated with increased fuel combustion emissions, a U-shaped relationship exists where higher LCGs exports are associated with reductions in fuel combustion emissions across Russian regions to a certain degree. Conclusions. This research highlights important implications for both federal and regional industrial and environmental policies. It advocates for the development of targeted incentives that encourage the adoption of low-carbon goods (LCGs) and advanced technologies. By doing so, policymakers can effectively promote sustainable development tailored to the unique needs and conditions of various regions, thereby fostering ecological resilience and economic growth across diverse regional landscapes.

Relevance. The study of inclusive economic growth remains highly relevant as the concept of growth continues to evolve. Measuring and analysing its determinants offers opportunities to foster inclusive growth at both regional and national levels. Research Objective. This study analyses inclusive economic growth in East Java’s districts and cities from 2018-2022 by comparing two measurement models: the Social Mobility Curve (SMC), which focuses on income distribution and economic growth, and the Poverty Equivalent Growth Rate (PEGR), which incorporates poverty, inequality, and unemployment. Data and Method. Using data from Statistics Indonesia (BPS), the National Labour Force Survey (SAKERNAS), and the National Socioeconomic Survey (SUSENAS) for 2018-2022, this study applies the SMC and PEGR models and conducts panel data regression to analyse inclusive growth and its determinants. Results. The findings reveal that economic growth in East Java lacks inclusivity. Income distribution inequality persists across districts and cities, as shown by the SMC results. The PEGR model also indicates ongoing challenges in reducing poverty and unemployment inclusively. Key factors such as the share of manufacturing in GRDP and employment opportunities significantly impact inclusive growth. Conclusions. Encouraging investment growth can create a favourable business climate across all districts/cities, supporting a more equitable contribution to GRDP. As employment opportunities play a significant role in inclusive growth, boosting employment through investment can improve access to education and healthcare, while addressing unemployment. To combat inequality and poverty, the government must refine its data collection on the poor to better target beneficiaries.

Relevance. External shocks can disrupt stable industrial development and technological modernization, especially in open single-industry regions that are highly vulnerable to global market fluctuations. The dominance of a single sector results in structural inertia, making it difficult for these regions to shift their economic trajectory. This path dependence amplifies the risks posed by economic turbulence, highlighting the need for changes in the economic structure and strategic guidelines for regional industrial policies. Objective. This study aims to describe the current, strategic, and future development paths for single-industry regions amid economic turbulence. It focuses on changes in the industrial profiles of metallurgical regions in Russia, including Lipetsk, Vologda, Murmansk, Sverdlovsk, Chelyabinsk, and Krasnoyarsk. Data and methods. The research uses publicly available statistics from 2008 to 2021, grounded in regional development theory. Methodologically, the study relies on coefficient analysis, positional-dynamic analysis, and assessment of technological connections between sectors. Results. The study has detected significant differences in regional adaptation: Lipetsk and Chelyabinsk are shifting towards low-tech sectors, Sverdlovsk maintains its metallurgical focus, Vologda is balancing metallurgy and a medium-high-tech chemical industry, while Murmansk and Krasnoyarsk are transforming with a focus on low-tech mineral extraction. Promising specializations include machine engineering in Sverdlovsk and Vologda, as well as machine engineering and electrical equipment production in Lipetsk and Chelyabinsk. However, we found discrepancies between the declared strategic goals and actual priorities in Lipetsk and Chelyabinsk. Conclusions. The findings offer valuable insights for policymakers and authorities, helping to update strategies for fostering the growth of promising industrial sectors.

Relevance: The stability of money demand is essential for effective monetary policy, especially in Sub-Saharan African (SSA) countries that face various economic challenges. These challenges include volatile exchange rates, fluctuating foreign interest rates, and high inflation, all of which can disrupt money demand stability. Understanding how these dynamics interact with different income levels-upper middle, lower middle, and low-is crucial for developing effective regional monetary policies and achieving economic stability. Research Objective: This study aims to evaluate the stability of money demand across different income levels-upper middle, lower middle, and low-in SSA. By applying the cash-in-advance theory, the study seeks to provide insights and actionable policy recommendations on the influence of key economic variables. Data and Method. This study employs the cross-sectional augmented autoregressive distributed lag (CS-ARDL) model to analyze both the short- and longrun influences of real exchange rates, foreign interest rates, real GDP, and inflation on money demand. By doing so, it aims to provide a nuanced understanding of money demand stability, capturing variations often overlooked in existing research. The analysis uses data from the World Bank Indicators and the International Monetary Fund (IMF), allowing for a detailed examination of money demand stability across various income levels in the region. Results. The findings reveal a positive and significant relationship between the real exchange rate, foreign interest rates, real gross domestic product, and real monetary aggregates. However, inflation has a contractionary effect on the real monetary aggregate, destabilizing money demand. Money demand stability is observed in upper-middle and low-income countries, while lower-middle-income countries exhibit variability, indicating differing levels of economic resilience across income categories. Conclusion. The study recommends adopting unified monetary policies and a single currency to enhance stability and stimulate economic growth in the region. Additionally, implementing inflation-targeting policies can further strengthen economic stability and promote sustainable development in SSA.

Relevance. Local governments in both developed and developing countries act as a vital link between central governments and local communities. Central government funding transfers to local governments are often based on performance measures. In Ghana, the District Performance Assessment Tool (DPAT) has been utilized to evaluate local government performance since 2018, with a primary focus on improving service delivery to meet the needs of local residents. Research objective. This paper aims to analyze how the DPAT was conducted for the five selected local governments in the Central Region of Ghana from 2021 to 2022. Data and methods. The study employs a qualitative approach to the analysis of the primary data gathered from ten technical officers and 16 Assembly members, who served as key informants. A document review guide was also used to collect secondary data. Results. While the DPAT indicators aimed at assessing service delivery to communities, many were focused primarily on the internal operations of local governments. Although the DPAT represents an improvement over the District Development Facility’s Functional and Organizational Assessment Tool, the assessors did not interview Assembly members to verify the services delivered in the communities. Conclusions. The findings and methods of this study can inform analyses of local government performance in Ghana. It is recommended that DPAT assessors conduct field visits to interview Assembly members to enhance the assessment process. This study contributes to the understanding of financial resource allocation and service delivery in local governments.

Relevance. Libya has been struggling with fresh water shortages for much of its history. This issue started to be resolved only after significant underground water reserves were discovered in the southern part of the country in the late 1960s. From 1970 to 2010, the country became one of the world leaders in terms of water consumption per capita. Research objective. The study aims to evaluate compliance adopted and proposed solutions for developing the water supply system for urban settlements and agricultural enterprises in Libya, implemented during Muammar Gaddafi’s leadership, align with the canonical theories of Spatial Science. Data and method. Methodologically, the study relies on the principles of the isolated state theory and the central place theory. The transformation of the water supply structure in Libya studies within the evolutionary approach on using the example of agricultural projects and settlement projects in the Kufra region, as well as the “Great Man-Made River” project. Results. Each state farm in Libya represents a quasi “isolated state” which is the first stage in the development of the country’s water supply system. However, it only becomes a system in the proper sense at the second stage, with the emergence of private farms in settlements: central place systems with one (rarely two) levels of hierarchy arise “from” the rural areas. The transition to the third stage-the formation of a full-fledged central place system-was made possible by the “Great Man-Made River” project. Conclusions. The water supply systems for the population and economy of Libya in their current form are characterized by fairly high spatial stability. The government’s decision to merge the previously separate water supply systems of Al-Kufra - Sirt / Benghazi and Hasouna - Sahl Jefara through the “Great Man-Made River” project was quite reasonable. Equally prudent was the choice to maintain the Ghadames - Zwara - Zawia system as an isolated entity. However, the project to extend the water pipeline from Ajdabiya to Tobruk, which is currently less than 1% complete, should be discontinued. Instead, it would be more practical to revisit the previously rejected plan to supply freshwater to the cities along Libya’s eastern coast from the local underground sources.