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The Elite Consensus and Regional Economic Development: The Experience of the Republic of Tatarstan
[Элитный Консенсус И Экономическое Развитие Региона: Опыт Республики Татарстан]

Author

Listed:
  • Yakovlev, Andrey A. (Яковлев, Андрей А.)

    (National Research University Higher School of Economics)

  • Freinkman, Lev M. (Фрейнкман, Лев М.)

    (National Research University Higher School of Economics)

  • Makarov, Sergey A. (Макаров, Сергей А.)

    (National Research University Higher School of Economics)

  • Pogodaev, Victor S. (Погодаев, Виктор С.)

    (National Research University Higher School of Economics)

Abstract

In the context of Russia’s need to make a transition towards a new developmental model and in light of the international experience suggesting that advanced regions within large economies could become the primary drivers of national growth, this article analyzes the developmental model that has been shaping up in the Republic of Tatarstan (the RT). In Russia, since the mid?2000s, this model has been considered as an example of best practice. We identify the main characteristics and stages in the evolution of the RT developmental model, as well as highlight its strengths and limitations using the SWOT-analysis technique. It is noted that a ”special” investment climate has formed in the region, featuring predictable government policies, lower costs and risks of doing business, and informal guarantees for entrepreneurs willing to invest in the RT’s priority projects. The article points out that consolidation of interests of major regional elite groups, their consensus regarding the priorities for regional development and the associated policy instruments have been important comparative advantages of Tatarstan. The prospects for formation in the RT of a catching-up developmental model similar to ones in the successful countries of Southeast Asia will depend upon the extent to which the current Tatarstan’s elite could find a consolidated response to the new challenges confronting the RT recently, as well as the degree of soundness of the federal policy with respect to the more developed regions. The main obstacles to development include the current closed ownership structure of core assets, limiting possibilities of market entry for new players, and lower average wages prejudging the outflow of skilled personnel from the RT. In the environment of tightening regional competition for federal resources Tatarstan would have to make additional efforts in order to strengthen its competitive position in the eyes of the Federal Government. In this regard, expanding cooperation with the neighboring regions looks like an attractive policy option for the RT.

Suggested Citation

  • Yakovlev, Andrey A. (Яковлев, Андрей А.) & Freinkman, Lev M. (Фрейнкман, Лев М.) & Makarov, Sergey A. (Макаров, Сергей А.) & Pogodaev, Victor S. (Погодаев, Виктор С.), 2018. "The Elite Consensus and Regional Economic Development: The Experience of the Republic of Tatarstan [Элитный Консенсус И Экономическое Развитие Региона: Опыт Республики Татарстан]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 180-217, February.
    • Handle: RePEc:rnp:ecopol:ep1807
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    Cited by:

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    2. Yakovlev, A. & Freinkman, L. & Ivanov, D., 2018. "New Opportunities and Instruments of Regional Structural Policy," Journal of the New Economic Association, New Economic Association, vol. 39(3), pages 162-170.
    3. Polterovich, Victor, 2020. "Реформа Государственной Системы Проектной Деятельности, 2018-2019 Годы [Reform of the project activity state system, 2018-2019]," MPRA Paper 99133, University Library of Munich, Germany.

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    More about this item

    Keywords

    elite consolidation; regional development; catching-up developmental model; Tatarstan; Russia.;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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