Strategizing and Conceptualizing the Regional Exit from Subsidized Economy

Abstract

The economic development of a federal state depends on each of its subjects: uneven socioeconomic conditions increase the number of lagging regions, which prevents the economic development at the federal level. As a result, the theory of regional economic science needs new strategizing patterns to help some regional economies abandon their subsidized status. The research relied on the theory of strategy and the methodology of strategizing developed by Professor Vladimir Kvint, Foreign Member of the Russian Academy of Sciences and Honored Worker of the Higher School of the Russian Federation, whose studies have been successfully implemented in a number of regional and sectoral strategies. According to the general methodology of strategizing, the analysis of global, sectoral, and regional trends precedes the search for new opportunities for the object of strategizing. The author used the case of the Kabardino-Balkarian Republic to study the development strategies of subsidized regions, as well as designed some tools to assess the quality of life and financial independence in the region. The article provides theoretical foundation for strategizing the exit from subsidized economy and offers a cost-benefit analysis pattern.