Raw Material-Oriented Regions: Global Challenges Of Nowadays

Typologization of raw material-oriented regions

The territory of the Russian Federation is extended and the regions differ in a significant variety of natural and climatic zones, socio-economic and historical conditions of development. The researchers of the economy (Kotilko & Antonov, 2009), noting the specifics of Russia, point to the presence of regions rich in natural resources of both federal and world significance (raw material-oriented regions, natural resource areas, resource regions), defining them as strategic regions.

In the national economy, regional borders are divided depending on the research object (Mezhevich, 2007). For the regional economy, the most important principle is the separation of the region from the positions of administrative and economic management. The researchers of regional economy consider the region as a territorial and economic complex with homogeneous natural resources, social and industrial infrastructure (Fridman et al., 2008). Naidenov (1995) defines a region as a collection of various industries, which is determined by the industry specifics of the territory and the labor division. In addition, he notes that the region is developing on the basis of the leading specialization of industries, produces products based on the processing of available resources and uses a social infrastructure to achieve the most effective economic development.

For the Russian regions, the availability of significant reserves of raw materials determines their specialization and development. A review of the scientific literature has shown that there are quite a large number of approaches to the typology of regions and the characteristics of region groups with a raw material orientation. The Russian researchers of regional economy development Ilyina (2013), Tolstolesova (2013), Barinova et al. (2015) and the others consider the share of mineral extraction in the GRP structure as a main indicator for determining the regions of raw material orientation. The value of the share of the extractive industry in the GRP structure ranges from 15 to 50%. Also, depending on the study objectives and problems of regions, a variety of indicators (inventory levels, the availability of partial and/or full of minerals processing, the basic specializes, the financial and investment potential of the territory, etc.) is analyzed.

The typologies of classification of raw material-oriented regions of the abovementioned authors differ significantly in the methodology and, accordingly, the obtained results. However, all of them are aimed at identifying the problems of Russian regions with a certain level of natural resource reserves and, in particular, they suggest assessing the level of economic development of the region and the standard of living of the population. In these methods special attention is paid not only to the share of mining in GRP, but also to such factors as geographical distance, infrastructure of the territory, climatic conditions, innovation activity etc. (Krol et al., 2019). At the same time, while socio-economic zoning the country the boundaries of the subjects of the Russian Federation from positions of administrative and economic management are not to be broken.

Currently, there is no generally accepted typology of regions. Any typology is subjective, since it is determined by the choice of criteria. There are two main types of typologies of regions: a complex (building a system for assessing the socio-economic situation and/or dynamics of development based on a combination of criteria) and a specialized one (narrowly focused, developed on the basis of one main criterion) (Violin, 2018).

In this connection, the report of the Analytical center by the Government of the Russian Federation is of interest (Analytical center by the Government of the Russian Federation, 2017). It gives the classification both from the point of view of the official geographical division into federal districts, and using the types of regions of synthetic classification, which combines several basic principles: the current historical level of the region’s development, taking into account the crisis phenomena; the nature of regional institutions (related to the development type); the nature and remoteness of the market for products of leading enterprises of the region (Golyashev & Grigoryev, 2014). According to this classification, raw material export-oriented regions such as the Komi Republic, Tyumen region, Sakha (Yakutia) and Sakhalin region belong to the group of leading regions. In the group of developed regions there are regions that rely on the extractive industry: Belgorod and Murmansk regions, Bashkortostan, Perm region, Krasnoyarsk region, Kemerovo and Tomsk regions. The group of less developed raw material regions includes Transbaikal region, Amur and Magadan regions, and the Chukotka Autonomous district.

Russia is characterized by a high degree of uneven development of territories. The classification of regions taking into account the level of development of industry, institutions, nature of resources, and other factors allows for a more balanced policy of regional development. It should be noted that regional development is a complex socio-economic process and the territory development level is not a static unit, it changes at each time period, taking into account the current challenges of this period. A comprehensive approach to the development of raw material-oriented regions involves focusing not only on the current problems of the region in the market environment of this system, but also determining the points of socio-economic growth of the territory and in the long term, taking into account the factors and circumstances of the production and technological system, global trends in the resource industry.

Actual directions of socio-economic development of the raw material-oriented regions

The problem of effective functioning of raw material-oriented regions is typical not only for Russia, but also for other countries. Analyzing the issues that are usually considered in connection with the study of raw material-oriented territories Litvintseva et al. (2017) identify the following research areas:

• analysis and study of the natural and resource potential of the territory;

• study, analysis and assessment of approaches and solutions allowing the best use of the resource potential of specific sources and objects, both in the medium and longer period;

• research of problems and issues related to the impact of the economy resource sector on other areas of the territory's economy; the main issue is approaching the trajectory of sustainable socio-economic development;

• consideration and development of various approaches ("resource regimes") ensuring the territory's transition to the trajectory of sustainable socio-economic development.

These research areas are important for the sustainable development of Russian raw material-oriented regions. The development of the region can be represented as a complex process of changes in its environmental, economic, social, spatial, political and spiritual spheres, leading to their qualitative transformations and, ultimately, to changes in the stability of human life (Khudeeva, 2011).

The current stage of the world economy development is characterized by a number of global problems and challenges that directly affect the socio-economic development of raw material-oriented territories. Let's consider the directions of economy modernization of the regions with a raw material orientation, taking into account current trends in the regional economy.

The regions with raw material orientation have certain reserves of mineral resources. The problem of non-renewability of certain types of natural resources requires special attention not only in terms of identifying the location of these resources and the degree/stage of development of these resources, but also the formation of mechanisms, tools for adaptation and transition of the territory's economy to new institutional conditions of functioning. This means the need to change the institutions, forms of interaction of economic units and, ultimately, the organizational structure of the resource sector, not only over time, but also taking into account the stage of development of certain natural resources (Litvintseva, 2015). At the initial stage, we are talking about identifying potentially significant raw material assets of the territory that were not previously in demand due to the high cost and / or labor intensity of extraction, lack of processing technologies, etc.

The global challenge nowadays for the socio-economic development of raw material-oriented regions is the problem of environmental safety of enterprises in this industry, which affects the quality of human life. Thus, according to the Analytical center by the Government of the Russian Federation, the most significant amount of greenhouse gas emissions falls on the fuel and energy sector, more than 80%. Emissions are caused by the extraction, primary processing, transportation and use of natural fuel and its products (Analytical center by the Government of the Russian Federation, 2017). To improve the environmental situation, it is necessary to implement an environmental engineering system. Environmental engineering is a combination of targeted actions creating new production facilities to minimize damage in the field of environmental protection and use of natural resources (Piskorskaya & Malanina, 2019). The introduction of eco-innovations should be considered as one of the tools for the transition to sustainable socio-economic development of raw material-oriented territories.

Digitalization of the economy expands business opportunities allowing to get additional advantages and contributes to increasing the competitiveness of industries. Digitalization changes the shape and structure of the economy of countries and entire regions (Trachuk & Linder, 2017). The current development of projects in the field of digital economy in the regions of Russia is aimed at such areas and industries as state and municipal management, health, education, etc. Only three regions have announced the implementation of significant projects of the digital economy in industry (Analytical center by the Government of the Russian Federation, 2019).

For businesses, the implementation of digital technologies is associated with a number of problems. First, the development and implementation of technologies is expensive taking into account the specifics of the industry. Secondly, training of qualified staff is required. Third, it is necessary to provide timely information support for projects. Accordingly, the main prerequisite for a successful digitalization policy for the raw material-oriented regions is the coordination of actions in the development and implementation of mechanisms for interaction between government authorities, business, scientific and educational communities.

Informational support is an important aspect of economy modernization for the resource areas. Such support helps to establish socio-economic links with the government and business, which in turn are able to react to market changes, to predict the demand for the projects and technologies, to identify the target audience, to conclude new contracts (Piskorskaya et al., 2016).

An integrated approach for the development of regions of raw material orientation involves identifying and studying factors that affect the socio-economic situation of the region in general and the quality of human life. The transition of the resource areas to sustainable development is possible only with implementing innovative investment solutions in the field of technological and communication development in the region.