Kozyreva G.B.Institute of Economics of Karelian Research Center of RAS, Petrozavodsk, Republic of Karelia, Russian Federation kozyrevakrc@gmail.com
Subject The article considers problems related to the institutional development of forest areas of Russia using a case of the Republic of Karelia. Objectives The aim is to assess the condition of institutions regulating the forest cluster functioning and relations arising in the institutional system; to provide a rationale for mechanisms to create efficient models of forestry development in Russia. Methods The study employs a systems approach based on the institutional and functional analysis of the 'forestry – forest economics' institutional system, a descriptive analysis of problems faced by forestry relations participants. The empirical data of qualitative in-depth interviews of forest business representatives with forest village residents, the findings of Russian and foreign scholars served as the information base of the paper. Results I reviewed the basic institutional conditions prevailing in the forest cluster of Russia over recent 25 years. Based on the in-depth interviews, I analyzed discussions about form of ownership of the forest acceptable for Russia, and justified the areas of the forest cluster development through institutionalization of net return from forest land. The findings may be useful for management decisions in the forestry and forest economics of Russia. Conclusions Subject to enhancing the role of regulatory institutions and weakening that of institutions influencing the sector, it is possible to change the model of woodland management in Russia and convert forests into a source of economic and social development.
Keywords: forest, cluster, regulatory institution, net return from forest land, timber rent
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