Strategizing the Exit from Subsidized Economy in the Kabardino-Balkarian Republic

Abstract

Many Russian regions depend on gratuitous transfers from the federal center. These regions lag behind the average Russian level of economic development and standard of living, which creates uneven prerequisites for economic growth. In addition, such regions attract no investments, and the effectiveness of the use of federal money is often impossible to assess. These conditions lead to inequal economic development, living standards, and welfare in different regions, which creates social tension and hinders the economic growth of the whole country. The research relied on the theory of strategy and methodology of strategizing developed by V.L. Kvint, Foreign Member of the Russian Academy of Sciences and Honored Worker of the Higher School of the Russian Federation, whose projects have been successfully implemented in a number of regional and sectoral strategies. According to the general methodology of strategizing, new opportunities are determined by analyzing global, sectoral, and regional trends. The present research featured the subsidized region of the Kabardino-Balkarian Republic. The proposed term of subsidized economic condition made it possible to take into account the peculiarities of such regions during strategizing. The author developed some tools for assessing the effectiveness of the Kabardino-Balkarian Republic’s exit strategy from subsidized economy. The main strategic priority was to improve the quality of life in the region, as well as to increase the level of its financial independence. Conclusion. The analysis made it possible to identify and substantiate the theoretical features of strategizing the exit from subsidized economy, as well as to develop some tools for assessing the effectiveness of this strategy for the Kabardino-Balkarian Republic.