Importance The article analyzes the tools for development of regions and municipalities of the Russian Federation. Objectives The purpose of the article is to reason the possibility and the need to use a tool such as concession. Methods The theoretical basis of the paper was scientific and research literature and normative documents. Results The paper considers one of the most used methods of business development since the early 1990's, franchise, called the commercial concession in Russian legislation. The paper provides a definition of non-profit concession as a means of organization and development of region management, where the administration of the region passes the administrations of the municipalities the right to provide public services through the management system. In addition, I specify the principles of non-commercial concessions and traditional management systems of regions of the Russian Federation. I have organized the views of scholars and practitioners on the use of concessional instruments in relations between regional and municipal authorities. Conclusions and Relevance I concluded that the most effective development tool, proven to be effective in business, is a non-profit concession. The results of this research can be used to develop the relationship of regional and municipal authorities and the further development of specific methods and mechanisms of such interaction.
Keywords: non-commercial concession, socio-economic development, principles, advantages, regional, municipal, government
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