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Toolkit to estimate the organizational structure of Arctic industrial complexes

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  • Olga Tarasova

Abstract

Severe climatic conditions, low population density, lack of infrastructure leave as the only possible nodular economic development of Arctic territories of the Russian Federation. In this case, a natural question arises: how to define points of growth, how to delineate those "patches of economic activity"? In today's economic conditions, growth points for Arctic territories will be resource projects. Analysis of the mineral complex projects in terms of minerals markets, as well as alternative approaches of transportation and energy supply stands for the main objective of the study. Necessity of active use of administrative and financial resources of the state, interdependence of projects and other characteristics of the new Arctic industrial complexes allow a methodological analogy with the classical TPC-approach. Proposed by the author earlier the system of arctic aqua territorial production complexes in this paper develops in the direction of the internal structure justification. At the first stage priority projects were highlighted and second stage projects listed. Then different variants of their realization were modeled. The constructed simulation model allows a comparison of costs and effects for business, regions and Russian Federation as a whole. Investment costs certainly will need to be distributed between actors of regional development, as conditions of economic activity require a widescreen public-private partnership in the Arctic. For the convenience of variant evaluation a "situation room" (specific interface of the model) was designed, the calculation results were visualized on the map. For justification of state expenses into Arctic infrastructure serve geostrategic factors. However, share of state participation required in terms of the commercial attractiveness of the projects could be defined in the simulation model framework. In this study effectiveness of various instruments of state support was estimated, the amount of government subsidies for domestic raw material supplies from said objects was calculated. The model includes blocks of individual projects, as well as built relationships within industrial complexes. With its help options of internal structure of the Taimyr-Yakutsk ATPC were evaluated. The priority projects here are Tomtorskoe field of complex niobium and rare earth ores and Popigai field of industrial diamonds. Having a wide range of applications in high-tech industries, those could give rise to the Russia' innovative development. It was determined that the priority transport infrastructure projects should be: ports Uriing-Khaya, Hatanga, Yenisei-NSR system objects, on deposits should be organized decentralized energy supply - separate electric station with diesel fuel. Also found that using the redistribution of effects the competition of neighboring regions for investment resources should be neutralized - the Krasnoyarsk Territory (as the leading party) and the Republic of Sakha (Yakutia). The author recommends the correction of development programs of the Russian Arctic regions based on the above aspects.

Suggested Citation

  • Olga Tarasova, 2014. "Toolkit to estimate the organizational structure of Arctic industrial complexes," ERSA conference papers ersa14p233, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa14p233
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    Keywords

    aqua-territorial production complexes; project evaluation; simulation modeling;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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