Importance When social policies are planned and implemented, it unavoidably entails some challenging issues, which could be addressed by evaluating economic causes of the current situation and finding appropriate mechanisms to make the decision-making process more efficient. Russia demonstrates the dominance of paternalistic social policies, which engenders common social challenges in the regions, with an ineffective model for finance of social programs being one of the main issues. I believe that there should be regional social policies that meet competitive requirements. Objectives The research examines the type of regional social policies implemented in the Russian Federation, and multiple social challenges, including finance of the social sector. Methods Drawing upon methods of comparative analysis and organizational and legislative modeling, I reviewed various aspects arising when regional issues of social policies originate and should be tackled. Results The research describes the conceptual framework and economic and organizational principles of contemporary social policies of the regions and closely correlates it with respective social issues. I analyze the mechanism for considering socio-economic specifics of regions by determining types of the latter against a number of factors. After the types were determined, it allowed dividing the regions into several groups, which could be ranked in terms of their respective success. Conclusions and Relevance I conclude that the Russian Federation demonstrates the dominance of paternalistic regional social policies, thus generating the existing system of the social sector finance. The article classifies a set of regional issues of social policies, which are common for this type of relationships, and outlines possible solutions.
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