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The Program ‘Far Eastern Hectar’: Institutional Approach

Author

Listed:
  • Tatiana Nikolaevna Zhuravskaia

    (Economic Research Institute FEB RAS; Far Eastern Federal University, School of Economics and Management)

  • Kseniia Igorevna Feoktistova

    (Far Eastern Federal University, School of Economics and Management)

Abstract

The article presents an analysis of the program ‘Far Eastern hectare’ as an institutional experiment, which can have a significant impact on the land ownership in the Far East, according to the authors. The nebulosity of the declared goals of the program initiators (solving demographic problems, accelerating the economic development of the region, increasing the efficiency of resource use, etc.) creates contradictory incentives and specific practices, which leads to a number of issues with program implementation explained from the perspective of a new institutional economic theory (NIET). Proceeding from the dominant prerequisites of NIET that the institutions direct the behavior of economic agents, the authors consider the incentives and strategies of behavior of project (not)participants, the expectations of economic agents from its realization. The analysis reveals several contradictions and problems. First, there is an internal contradiction in the program, between, on one hand, the maximal scale of land privatization based on social justice and, on the other hand, the development of private property institution based on the principles of market maximization of economic value as a tool of economic growth development. Second, the vague supposition that the development of the region would be financed partially by the population is opposed by the opportunistic behavior of a large segment of applicants. Third, the declared co-financing of land plots by the state through transport and engineering infrastructure construction is aggravated by strict budgetary restrictions federally and regionally. Besides, the mechanisms of such support are not clear, which affects the behavior of current and potential applicants. Fourth, the unreliability of the cadastral information and the opaqueness of the approval procedure lead to attrition of the social justice and equality principle, creating real or perceived advantages of some applicants

Suggested Citation

  • Tatiana Nikolaevna Zhuravskaia & Kseniia Igorevna Feoktistova, 2019. "The Program ‘Far Eastern Hectar’: Institutional Approach," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 2, pages 92-109.
    • Handle: RePEc:far:spaeco:y:2019:i:2:p:92-109
    DOI: 10.14530/se.2019.2.092-109
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    References listed on IDEAS

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    4. Besley, Timothy & Ghatak, Maitreesh, 2010. "Property Rights and Economic Development," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4525-4595, Elsevier.
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    6. Pavel Aleksandrovich Minakir, 2019. "Far Eastern Institutional Novations: Imitation of a New Stage," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 7-17.
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    More about this item

    Keywords

    new institutional economic theory; Far Eastern hectare; property rights; land ownership; Russian Far East;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law

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