Yekaterinburg – Harbin Russian Academy of Sciences Ural Branch of Russian Academy of Sciences Institute of Economics SELF-DEVELOPMENT OF TERRITORIAL SOCIO-ECONOMIC SYSTEMS AS THE REQUIREMENT OF SPATIAL ARRANGEMENT OF OLD-INDUSTRIAL REGIONS IN THE RUSSIAN FEDERATION Tatarkin Alexander Ivanovich Member of the Russian Academy of Sciences Yekaterinburg – Harbin (Russia) – (China) 2013

The definition of “system”- Functioning examples of technical (car), social (family), industrial (enterprise) systems give the basis to consider system as a set of interrelated organizational elements, united by a common aim and a common management: the aim – development; performing state functions; provision of services; industry of goods, etc. Features: It is always a set of elements (autonomous or interdependent); organizational ordered; united 1) common aim; 2) common management; 3) motivated by result.

Territorial self-development economic system autonomous system (subsystem) of the national economic system, which has the ability to provide extended reproduction of GRP due to internal sources in the interest of realization of macro-economic priorities and system objectives (sub-goals, priorities, etc.) within the needs of territorial development. Features: It is always autonomous (individual) part of the system; But it is a such part which has sustainable ability to provide extended reproduction of GRP ; Using own sources (government, business, integration, taxes); In the interest of realization of a) national priorities and b) territorial target settings;

Formation steps of territorial economic systems (TES): 1. Self-organization– the ability of the system to provide internal sustainability … 2. Self-regulation(self-management) – the ability to perform certain functions of a larger system, including its own revenues; 3. Self-sufficiency, the ability to repay costs… 4. Self-development as the highest form of territorial system functioning

Forming reasons of TES: 1. The needs of sustainable, balanced and socio-oriented development require: The exclusion or limitation of growth sources which were exhausted themselves and using new industrial, market, financial, infrastructural, management and other; The connection of new sources and institutes as clusters, initiative, program-project planning and enterprise, responsibility of the federal and regional power branches, etc; 2. The requirement of transition from formal to real federalism involves the expansion of territorial and regional system individuality for spatial arrangement; 3. The market is always on the base of the expansion of “freedom“ and responsible boundaries

Self-development conditions: 1. Internal self-sufficiency of the system: 1.1 Resource self-sufficiency; 1.2. Management and enterprise self-sufficiency is a population and government readiness to identify the mission and aim, priorities and mechanisms, which are designed, on the one hand, to be based on macroeconomic priorities, on the another hand – to account system requirements of TSES; 1.3. Intraterritorial infrastructural self-sufficiency; 1.4. Territorial development institutes; 1.5. HR self-sufficiency of the system.

Self-development conditions: 2. Favourable external (macroeconomic, etc) self-development conditions: 2.1. Public and political, ideological and HR readiness “tops” and “masses” to TSES self-development; 2.2. Constitutional and legislative guarantees; 2.3. Economic, financial and budget mechanisms and institutes of regional self-development; 2.4. Experience of foreign countries: monitoring and scientific support.

Self-development conditions: 3. Public opinions must recognize opportunities of self-development and must be ready to its realization. 3.1. 1991-1993 the readiness was in trying to “separate” (Chechnya, Tatarstan), to raise the status (Ural republic, Autonomous districts) and … “privatize political functions”… 3.2. How is today (February 2012)? Association of the Ural cities – more than 350 members legislative and executive branches –support the idea– 10,3% support with corrections – 56,7% doubt – 21,3% not ready … - 9,4% the idea is real in Russian conditions – 2,3% Association of the Ural cities - < 300 managers (October 2013, Kurgan city): support – 11,7% support with corrections – 49,3% not ready … - 31,2% the idea is real in Russian conditions – 7,8%

Self-development criteria:. 1 Self-development criteria: 1. GRP growth is at the level of average indicates of the Russian Federation for more than 5 years ; 2. GRP growth is provided by individual revenue sources; 3. Balanced regional flows of goods and financial means;

Self-development regions (20 from 83): Central Federal District: Belgorod, Moscow, Orel, Yaroslavl region, Moscow; Northwestern Federal District: the Nenets Autonomous District, Kaliningrad and Leningrad region, St. Petersburg; Southern Federal District: the Krasnodar Territory, Astrakhan Oblast; Volga Federal District: Republic of Mordovia, Orenburg and Saratov regions; The Ural Federal District: Sverdlovsk Oblast, Khanty-Mansi Autonomous Area - Yugra, Yamal-Nenets Autonomous District; The Siberian Federal District: Novosibirsk, Omsk region; Far East Federal District: the Sakhalin region. Accounting of geographic, climate, historical, geo-political and economic conditions makes 40-50 regions to claim to self-development

The structure of revenues and expenditures of the consolidated budget of the Russian Federation (1999-2011)*, % Years Budget levels 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Federal budget Revenues… Expenditures… Consolidate regional budget 2. Regional Revenues... Expenditures….. 3.Municipal revenues………. Including tax revenues grants and subsidies ... another Revenues… 42,8 - 51,8 30,4 21,4 14,9 5,7 0,8 51,5 48,5 32,3 16,2 11,1 4,6 0,5 54,7 45,3 31,6 13,7 8,4 4,7 0,6 57,4 42,6 31,4 11,2 6,0 4,5 57,2 31,2 11,6 4,8 58,8 41,2 31,0 10,2 5,3 4,0 0,9 63,0 37,0 30,0 7,0 2,6 3,7 0,7 62,3 56,6 37,7 31,5 36,1 6,2 1,9 3,6 7,3 61,6 51,7 38,4 31,8 40,1 6,6 2,0 3,8 8,2 59,7 50,8 40,3 33,7 8,0 55,3 44,7 37,3 36,3 7,4 2,2 7,1 56,0 56,8 44,0 36,8 7,2 4,3 59,8 40,2 34,1 38,3 6,1 64,5 57,0 38,5 32,8 5,6 1,6 0,3 6,3 TOTAL 100 *http://www.roskazna.ru/reports/cb.html - The Federal exchequer of Russia (15.08.2012)

The system is sustainable, if Хб = 0,62, а Хм = 0,38 Устойчивые системы: Хц(100%)=Хб+Хм, где Хц – level of stability (integrity) of the economic system, taken as a "1" (100%); Хб – most of the institutions and processes in the system, ensure the stability and integrity of the system; Хм –a minority of institutions and processes that violate the stability and integrity of the system. The system is sustainable, if Хб = 0,62, а Хм = 0,38 Indicates Total Including The federation Territorial systems 1. The Consolidate budget or Russia (2007 ) revenues expenditures 100 65,7 51,4 34,3 48,6 2. Land Fund of the Russian Federation 97,5 2,5 3. Forest Fund of Russia 98,7 1,3 4.The percentage of shares of industrial companies 68,8 31,2

Recommendations of territory politics (general character): It is important to have a serious, regional politics of the Russian Federation based on scientific and public opinions (the Conception). In the Federal subjects – municipal politics… The Federal law “Industrial politics of the Russian federation”. But the law is frame, on the base of which the federal subjects must adopt laws “The realization of FL “Industrial politics of the Russian Federation” in the territory of district (region…) General and Federal Scheme (separated by regions and municipalities) of location and development of productive forces of the Russian Federation is necessary; The program of spatial development of the Russian Federation is necessary… It is important to actively involve market institutions and mechanisms for the spatial development of the Russian Federation (self-development, program-project mechanisms, cluster approaches);

Strategic development plan of Yekaterinburg (was adopted by the City Council 26.10.2010) Chapter 1. Conceptual basics of strategic plan (strategic and plan, definitions, conceptual terms, approaches and ideas); Chapter 2. Socio-economics of Yekaterinburg: Competitive opportunities and features of development (internal potential and external conditions. Traditions and opportunities); Chapter 3. Strategic directions and programs Direction 3.1. Saving and development of human potential (5 programs and 23 projects); Direction 3.2. Yekaterinburg – interregional innovation oriented industrial and financial center (2 programs and 11 projects); Direction 3.3. Development and modernization of Housing and communal sphere of the city (2 programs and 12 projects); Direction 3.4. Development of goods and service market (5 programs and 29 projects); Direction 3.5. Formation of balanced transport system of the city (2 programs and 9 projects)

“To Think strategically and to act together” Strategic development plan of Yekaterinburg Direction 3.6. Formation of comfortable economically favourable city environment (2 programs and 16 projects) Directions 3.7. Development of civil society and local government (5 programs and 21 projects) Direction 3.8. General plan of the city – the city for man (2 programs and 10 projects); Chapter 4. Realization mechanism of strategic plan, the slogan of which became innovation ides – “To Think strategically and to act together”

Strategic development plan of Yekaterinburg Communicative and organization basics: The City Administration and the City Council 2. Public organizations of citizens are among developers 3. Public Chamber of the city of Yekaterinburg 4. Two public Councils of development, discussing and plan realization: 4.1. Coordination Council (headed by A.E.Yakob) of project development choosing and control, its balancing; 4.2. Program Council (headed by E.N. Porunov) of public discussing and adopting of program and projects

Strategic development plan of Yekaterinburg 1.1. Clear air 1. Strategic plan 1.2. Adopting basics: Solution of the City Council; Decree of the Head of the city “About development and realization of strategic projects…” 1.3. Adopted 18.09.2012by Program Council… 1.4. The initiator – the Committee of ecology, city society “Green economics”, Society “For a clean city”, etc. 1.5. Project coordinator – Deputy of the Head of the City Administration E.E. Lipovich 1.6. Project developers – 7 specialists… 1.7. Realization costs – 2121883 thousands rub.; City budget – 249748 th.rub.: Regional budget – 7000 th.rub.; Users of nature resources – 1121883 th.rub.; citizen and business means – 750252 th.rub. 2.1. Project content ( problem definition, members, result) 2.2. The project aim – Saving environment, minimization of health risk…

The main development indicators of Yekaterinburg in comparing with big cities in 2006-2012 гг., numerator – 2012г., denominator – 2006г. cities indicators Yekaterinburg Novosibirsk N. Novgorod Samara Chelyabinsk Ufa Omsk Kazan Rostov Volgograd Perm Krasnoyarsk Moscow St.Petersburg Population to the end of year, th.rub. - Investments to main capital, billion rub. 100,8 36,8 63,2 29,9 71,0 23,5 53,7 30,3 54,3 23,8 43,5 34,0 46,4 24,8 107,7 52,1 29,4 21,3 30,5 14,7 39,86 34,2 Retail trade turnover per capita, thous. 560,9 149,1 286,4 96,0 241,2 90,2 219,0 98,3 259,4 105,4 337,6 130,9 193,1 81,4 301,3 109,3 273,2 118,3 198,6 78,3 270,45 134,5 Putting housing, thousand m2 1050,2 735,3 1029,8 827,9 393,8 443,3 746,5 228,8 752,4 512,3 702,2 521,1 391,1 723,4 942,7 729,6 895,1 707,4 253,6 388,9 406,6 426,1 Average month salary, rubles Quantity of born people, ppm Quantity of dead people, ppm

The main development indicators of Yekaterinburg in comparing with big cities in 2006-2012 гг., numerator – 2012г., denominator – 2006г. cities indicators Yekaterinburg Novosibirsk N. Novgorod Samara Chelyabinsk Ufa Omsk Kazan Rostov Volgograd Perm Krasnoyarsk Moscow St.Petersburg Natural increase (decrease) of population, per 1,000 residents - Fiscal capacity megacities in 2012, ths. per capita 21,8 24,8 20,4 16,2 25,6 17,4 12,8 26,8 22,4 12,0 22,0 28,0 133,8 88,1

Migration of the population in Yekaterinburg 2001-2012 гг. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Arrived 19933 16732 17479 23506 25479 27088 25388 23871 22220 23178 41976 39891 Retired 18121 18280 17692 18248 16552 17090 15018 13369 11234 12522 19256 19670

Using of program-project management of territory allowed to develop result-oriented management model To use the most effective institutes of spatial development, organically coordinating interests of all project members by one document; To receive measure results of realization of every aim, every service and event; To estimate influence of budget changing to one or another side on plan indicator changing; During identifying the aim to account quality and quantity of service and events which will be given to population; To estimate the efficiency of department work of local government on the base of (comparing) results and costs; To determine real cost of every challenge and its achievements, realization tools and responsible for it performing.

Thank you!