BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/48
The stated purpose of this latest development programme is to secure Russia’s national interests in the Far East in an unfavourable international economic and political environment. To try to assure stable economic and social development in the Far East, the plan calls for e.g. supporting small and medium-sized firms and dealing with the region’s poor infrastructure. To increase the population numbers, e.g. social support to families with children will be increased and new residents attracted through distribution of land. A bill proposal has already been submitted to the Duma that would give every Russian citizen the possibility to have up to one hectare of land in the Russian Far East. The programme also brings forth the issue of increasing the competitiveness of regions on the Russian-side relative to the Chinese side, which enjoys clearly higher growth and population number vastly greater than the Russian side. Russia’s limited fiscal capacity to finance the public sector aspects of the programme suggest it may be even harder to implement than earlier.