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National Interests: Priorities and Security
 

Industrial policy as a factor of socio-economic development of the Republic of Dagestan

Vol. 10, Iss. 40, OCTOBER 2014

Available online: 25 October 2014

Subject Heading: PROBLEM. RESEARCH. SOLUTION

JEL Classification: 

Pages: 57-64

Idziev G.I. Institute for Social and Economic Research of Dagestan Scientific Center, RAS, Makhachkala, Republic of Dagestan, Russian Federation
textima@mail.ru

One of the problems of the considered regional economy is to determine the patterns of productive forces distribution and their role in the regional development. To study this problem, it is necessary to consider the formation of production sphere. This issue is especially relevant to the problematic regions of Southern Russia and, in particular, the Republic of Dagestan, where, due to the demographic situation, surplus of labor and the associated unemployment have been formed. It can be assumed that the development of the region, to a certain extent, depends on the volume of industrial production. This was evidenced by the share of manufacturing in the total gross regional product in the best Soviet years of economic development: no unemployment. In modern conditions, the economic revival is possible by means of industrial policy that implements the priorities of national importance, but taking into account the capacity of individual regions. On the basis of a systematic approach to the model of formation and implementation of the industrial policy of the Republic of Dagestan, the article formulates the strategic objective, defines a set of objectives and main elements of the mechanism of its implementation. The author concludes that good formation and implementation of industrial policy allows stimulating the economic growth and structural changes in favor of the industries, selected according to the criteria of competitiveness. The set of tools of this industrial policy must correspond to a specific phase of transformation of the real sector of the economy and should change as the phases of crisis, stabilization, recovery, post stabilizing active structural adjustment and economic growth change, as a region is in the processes of internal and inter-country integration.

Keywords: industrial policy, problematic region, modernization, economic development

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