Asian Russia – Main Contradictions of Current Development

Abstract

The paper explains why Siberia and the Far East, which are many times superior to the European part of the country in terms of territory and availability of natural resources, since the beginning of market reforms, have changed their development trend to a slower one (relative to the Russia’s average). This trend has led to a drop in the share of the macro-region in the total GRP, population and employment in the economy. The main reasons for such changes in the spatial structure of the economy, which are directly opposite to those that took place in the Soviet period, are shown. These factors do not include climate differences or transportation distances – these factors have existed in the past. The first reason for the trend change is a long and deep economic crisis, which caused a sharp reduction in investment and new construction, which previously provided the accelerated growth of Asian Russia’s economy. The second is a change in the distribution of income from economic activities between direct producers and other participants in this activity. It is noted that the main consequence of these changes is concentration of income in the capital region, and that the European “periphery” has suffered even more than Asian Russia.