Importance The article addresses the issues of complicacy in the development of small towns in conditions of transformation of the territorial structure of productive forces distribution. Objectives The paper aims to identify the application areas of managerial interference of the municipal authorities to intensify the socio-economic development of small towns. Methods For the study, we used a combination of systems analysis, scientific observation and logic modelling, examining various works by domestic and foreign specialists on development of small towns. Results On the basis of our analysis of the current state of small towns of the Republic of Karelia, we identified the problems and benefits for population compared to larger settlements, and propose certain recommendations to enhance the socio-economic development. As well, we offer a synthesized list of areas for targeted action by municipal authorities to overcome the marginalization of small towns and optimistic development trajectory. Conclusions and Relevance We conclude that the economic development of small towns in the Republic is feasible on the basis of harmonization of the efforts of different actors in the market and through enhanced public initiatives and entrepreneurship. The application of these measures would provide a good potential to maintain and develop the small towns of the Republic. These measures can be used when designing and implementing economic and social policies at the municipal level, including other regions of the country.
Keywords: socio-economic development, region, small town, population, welfare
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