Distributional Growth Paradigm in the Strategies of Sustainable Regional Development

Foresight and STI Governance. 2023. Vol. 4. No. 17. P. 54–67.

Vasilyeva R., Sohag K., Hammoudeh S.

The issue of bringing outsider regions closer to leaders in conditions of unequal distribution of assets in order to establish sustainable development is a big task, both on the part of the government and of the companies as well. The authors of the article raise the question of the choice of distribution mechanisms and their connection with the development of an optimal strategy for sustainable development. There are no universal tools in this regard, which means it is necessary to develop a complex combination of strategic decisions that takes into account the capabilities of the regions and the companies based there. Corporate strategies could significantly augment government action. This task is especially relevant for a country with a heterogeneous distribution of natural resources, among which Russia, making the emphasis is on fiscal decentralization as an equalization tool. Assessing its impact on the economy of Russian regions, the authors state that, despite its effectiveness in other countries, it is not workable for Russia. The solution seems to be the search for unique market mechanisms, the possible attraction of dynamic companies to the region and the selection of other mechanisms that trigger sustainable development.

Keywords: региональное развитие, стратегии развития, устойчивое развитие, regional development, ресурсный потенциал, фискальная децентрализация, региональное неравенство, sustainable development, regional inequality, development strategies, Fiscal decentralization, resource capabilities