Reindustrialization of Old Industrial Regions in the South of Russia: Trends, Potential, Risks

Abstract

In modern conditions, re-industrialization in Russia is aimed at leveling the trend of reducing the share of the manufacturing industry in the GRP of a number of old-industrial regions in recent years due to the implementation of the strategy of restoring the leading role of industry, transition to a new technological structure, the formation of productive forces. The article deals with the problem of modernizing the economy of the old industrial regions of the South of Russia based on the restoration of the industrial sector of the economy on a modern technological basis. It was noted that during the years of market reforms in the South Russian regions (Rostov, Volgograd, Astrakhan regions) almost all mining enterprises were closed, the activities of many enterprises of mechanical engineering, machine-tool construction, instrument engineering, enterprises for the production of bearings, fabrics, footwear were curtailed, which led to the destruction of existing industrial chains and provoked a new liquidation of production in other regions, the loss of its southern industry positions in the structure of the national economy. The main trends in the industrial development of the South Russian regions, which are reflected in a change in the distribution of economic activity and population in space, as well as in a change in the properties of the economic space of the region, are identified. The specific development factors are defined. They include multistructured regional economy and high dependence on economic instability factors in neighboring countries. It was concluded that it is necessary to move from the implementation of point projects to a comprehensive solution of the problems of structural imbalance in the regional economy related to increasing the capitalization level of the industrial modernization potential. The authors concluded that the strategy of re-industrialization should be based on the priority development of industrial production, allowing to enhance synergistic effects through a rational combination of the economic potentials of industrial production in central and peripheral territories of southern Russia.