WHAT IS A GOOD PROJECT? REGIONAL DEVELOPMENT

OUTLINE

Multi-level Governance: Age of Experimentation
Challenges for regions
Experimentation as a Way of

MULTI-LEVEL GOVERNANCE

AGE OF EXPERIMENTATION

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ

MULTI-LEVEL GOVERNANCE

Evolving Patterns
Regions, previously ignored, now central to
theorizing
Historical industries and new

DECENTRALIZATION

US and Germany:
Regions acquiring greater authority over programs
Coordination between Federal

ISSUES FOR REGIONS: THE ENVIRONMENT IN THE US
Environmental issues previously resolved

EQUALIZATION OR GROWTH: THE TRADE-OFF IN REGIONAL POLICY

Federal and Regional programs
Some fiscal

BOTH GOALS IMPORTANT

Choices require flexibility
The answer tomorrow may be different from

REGIONAL/FEDERAL PROGRAMS MUST BE COORDINATED

Canada, Austria and Switzerland, among federations, have

MANY FEDERATED STATES ARE RELATIVELY CENTRALIZED
Tax collection almost entirely centralized for

CENTRALIZATION TENDENCIES

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

DIFFERENT COUNTRIES DIVERGE

Canada allocates decision-making downward (except not to municipalities)
The principle

RUSSIAN FEDERALISM: EXPERIMENTATION

Centralized Soviet command economy
Decentralization in the early 1990s
Recentralization

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

RUSSIA’S FAST ADVANCING

WHY MANY COUNTRIES STILL FOLLOW CENTRALIZED MODEL

Regions can be greatly influenced

DISTRIBUTED GOVERNANCE

TRENDS

State (polity=C) has shrunk
Society (society=A) has expanded
New actors link

EXPERIMENTAL GOVERNANCE

Supple public and private organizations
Capable of regularly redistributing responsibility according

CHALLENGES FOR RUSSIA’S REGIONS

KEY ISSUES

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ

REGIONAL GENERAL ISSUES

Water
Electricity
Sewage
Police
Roads
Education
Care: disabled, elderly, unemployed
Emergencies: floods

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ЛЕТНИЙ КАМПУС АКАДЕМИИ

SPECIAL ISSUES
Diversification in energy abundatnt regions
Ecology-Exploration Trade-off in Arctic
Agricultural infrastructure
Drought

EACH SPHERE HAS BUNDLE OF TASKS

For example, Human Resources

July 24, 2012

ЛЕТНИЙ

HUMAN RESOURCES

Must be approached by:
Multi-level government
New technology (digitalization of records)
Training for

DROUGHT IN RUSSIA’S SOUTH

What is the answer?

July 24, 2012

ЛЕТНИЙ КАМПУС АКАДЕМИИ

DROUGHT MANAGEMENT WILL DIFFER

In Rostov, Volgograd, Stavropol and Kalmykia Republic (South)
Saratov,

DROUGHT MANAGEMENT

Caused by combinations of meteorological, hydrological and storage water deficiencies:

FLOODING

Federal , Local and Regional Interaction

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ЛЕТНИЙ КАМПУС АКАДЕМИИ

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

REGIONAL PROJECTS FOR

FLOOD MANAGEMENT: REGIONAL AND LOCAL

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ

EXPERIMENTATION

AS A WAY OF GOVERNING

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ

WHAT SEEMS TO WORK

Ideas from other transition countries
Ideas from the EU
Ideas

ANSWERS EMERGING

Regions as “Investment Machines”
Coordinated policies toward inward investment
Combined efforts by

ANSWERS FROM RUSSIA: LEADERSHIP

In the 1990s, right resources seemed to be

THE KALUGA JOINT SUCCESS

Spilling over with success

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ЛЕТНИЙ КАМПУС АКАДЕМИИ

FEDERAL AND SUBNATIONAL EFFORT

Pro-Investment Strategy
Begins 2006
Results staggering:

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ЛЕТНИЙ КАМПУС АКАДЕМИИ

STARTING POINT: 1998

Location:
Along Moscow–Kiev motorway, backbone of the spatial economic

THEN DECLINE, THEN GROWTH

In 1990s, output shrank by almost 60%
After 2006,

July 24, 2012

ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

WHAT HAPPENED?

“Investment Promotion Machine” as in Central European States
Foreign involvement does

KALUGA PROJECTS (2005-8) WITH FEDERAL SUPPORT

Public funds invested in industrial parks (techno-parks)
Public

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

PUBLIC AND PRIVATE

INDUSTRIAL ZONES

Created four industrial zones (linking Kaluga, Obninsk with businesses)
Public funds

STARTED WITH 4 MAJOR INVESTORS

Volkswagen, PSA joint venture, Samsung Electronics and

SPILLOVERS

Real estate investors (housing construction boom)
Residence and Entertainment Parks
Entry of investors

RESULTS

Regional Industrial Output
Grew by 63% from 2006-2008
Particular in automotive industry
Foreign investment

PARTNERSHIPS

Federal level industrial policy:
High duties on imported cars
Allows foreign automotive

EXPLOITING PROXIMITY TO MOSCOW

Transportation infrastructure allows close communication
As Moscow grows more

PROBLEMS

Corruption continues
There are high costs—construction
Financial crisis struck Kaluga
Debt rises (result of

SUCCESSFUL REGIONAL PROJECT

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012

WHAT IS A SUCCESSFUL PROJECT?

CONCLUSION

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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ

TECHNOLOGICAL AND INVESTMENT ORIENTATION

Technologies that foster economic, social and technological dynamism,

DIFFUSION OF GOVERNANCE CAPACITY

Foundation is the law at the Federal level
But

ADAPTABLE TASK-ORIENTED PROJECTS

Federal level can resolve what would create conflict at

LOOSE AND CONTROLLED GOVERNANCE

Contracts should be transactional or relational
Depending on whether

INDICATORS FOR CONTROLLED PROJECTS

Results or process oriented
Outcomes are important
Demographic, social, economic
Responsibility

INDICATORS FOR LOOSE GOVERNANCE

Improved skills and processes
Improved trust between levels of