Evaluation of Genuine Savings in the Russia’s far East Regions

• Published in: Regional research of Russia Vol. 11; no. 1; pp. 121 - 128
• Main Authors: Pyzheva, Yu. I., Lapo, E. V., Syrtsova, E. A., Pyzhev, A. I.
• Format: Journal Article
• Language: English
• Published: Moscow Pleiades Publishing 2021; Springer Nature B.V
• Subjects: Economic development; Economics; Economics and Finance; Human capital; Natural resources; Regional Development; Regional/Spatial Science; Slavic studies; Sustainability; Sustainable development; Trends; Russia; Far East of Russia; genuine savings; economic growth; sustainability indicators; sustainability of regional development
• ISSN: 2079-9705; 2079-9713
• DOI: 10.1134/S2079970521010111

— One of the most widely used indicators of the sustainability of economic development is the genuine savings indicator. To obtain more accurate estimates for the sustainability of development of the Russia’s Far East regions, a modification of the methodology for assessing genuine savings recommended by the World Bank was used, taking into account the characteristics of regions and a detailed set of publicly available statistics. The results of the study revealed unsustainable trends in the development of the largest resource regions of the Far East: Sakhalin and Magadan oblasts, Kamchatka krai, Chukotka Autonomous Okrug, and the Sakha Republic (Yakutia). To a large extent, these results are due to intensification of mining operations over the considered period. At the same time, some of the considered regions (Primorsky and Khabarovsk krais, Amur oblast, and the Jewish Autonomous Oblast), in one way or another possess trends toward sustainable development and are characterized by positive genuine savings values. The transition to sustainable development in the Far East as a whole is possible only if sustainable development of all its regions is ensured; i.e. the territories will be used not only as a resource base for filling the federal budget and generating profits for companies—natural resource users, but also as an actual strategic center for the country’s development, oriented primarily toward outstripping growth of investment in human capital.