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SWOT Analysis on the Export-oriented Development Strategy of Russian Far East

Irina Korgun 1,  Kim Min Soo 2

1한국외국어대학교 러시아연구소
2한국외국어대학교

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ABSTRACT

This paper highlights the situation with Far East development which rose to the most important issue on the Russian government agenda. The paper is structured according to the logic of SWOT analysis. Russian Far East represents a very big territory where economic activity is unevenly dispersed and cannot be balanced in principal. Regions vary in type of resources they have, climatic conditions and geographical positions. Unfortunately, transport infrastructure does not facilitate trade not to mention development. It is needless to say that state of industry in the Far East has deteriorated during transition years. Despite all the revenues from export of resources all the regions rely heavily on state subsidies for their everyday life. Lack of funds, on one hand, restricts freedom of regional governments to undertake development programs and on the other hand induces unproductive competition between the regions for state financing. There are numerous threat for development in the international environment as well. Asian region where Russian Far East is located is highly competitive. It is true both for manufacturers as well as for resource producers. Although Russia does possess a lot of resources, not everybody is ready to buy them. Those export relations that they have are heavily concentrated on neighboring China and Korea, to a lesser degree on Japan. In order to overcome existing obstacles, it is necessary to develop such a program that would allow some flexibility and divergence from the national development model; some room for domestic consumption. Also integration into Asia region should proceed not only in the economic sphere but also in culture, science. As an alternative, government should adjust plans for lesser number of population concentrating on industries with higher value-added. It is also important that these policies would not be abandoned after some time as it was the case many times before.

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* References for papers published after 2023 are currently being built.

This paper was written with support from the National Research Foundation of Korea.
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