Improving the Tools for Strategic Economic Planning at the Regional Level: Main Directions of the Search for New Solutions

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 4, Pages: 1480-1485

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

https://doi.org/10.47277/JETT/1485

Improving the Tools for Strategic Economic Planning

at the Regional Level: Main Directions of the Search

for New Solutions

Petr Iosifovich Burak *, Viktor Grigorievich Rostanets , Aleksey Igorevich Kabalinsky , Irina

Sergeevna Androshina , Elena Viktorovna Shurinova

Institute of Regional Economic Research, Moscow, Russia

Finance University under the Government of the Russian Federation, Moscow, Russia

National Research University "Moscow Power Engineering Institute", Moscow, Russia

Received: 14/07/2020

Accepted: 29/09/2020

Published: 20/12/2020

Abstract

The article deals with the issues of improving the system of strategic planning of the economy in the regions (Russian Federation entities)

in the context of contemporary national problems and world challenges. The authors summarize regional practice of socio-economic planning

and assess the hierarchy and composition of existing strategic planning documents in the regions of the Russian Federation, as well as propose

new types of prearranged documents as the most important planning institutions. The authors consider also the feasibility of forming regional

and interregional coordination structures that perform the strategic planning functions, as well as note the importance and prospects of using

information technologies in regional strategic goal setting, forecasting, and programming.

Keywords: Region, Strategic planning, Institutions, Methods

goal setting not only did not stop but rather intensified noticeably.

Introduction

The regional strategies developing process involves public

representatives – experts, businessmen, and scholars from higher

education institutions. They offer their alternative drafts of long-

range projection documents. For example, members of the North-

Contemporary Russia increasingly manifests the desire of the

authorities of regional entities, who are responsible for socio-

economic development of regions, to have scientifically grounded

elaborations of the long-range projections of the economic

development of the managed areas, as well as implementation

mechanisms of long-term goals, which, first of all, are aimed at

improving the living conditions of the population. Regional

systems of long-range projection documents are being formed in

the Russian Federation entities to ensure scientifically grounded

goal-setting and management activities.

With the adoption in 2014 of federal law “On strategic

planning in the Russian Federation”, a unified system of strategic

planning documents of socio-economic development was formed

at the regional level as part of concepts, strategies, projections,

state programs, and plans. Implementing the statutory

requirements, the regions, as entities of the Russian Federation,

have created in 2014-2020 a huge array of standard and often

quite formal documents for regional long-range projection, which

lack fresh breakthrough ideas and new approaches that are so

necessary for Russia in the current context.

West Cooperation Association have elaborated

a draft

development strategy for the North-West region of the country.

An important document named "Development concept of the

Baikal Region: Basic hypotheses and bids" was elaborated in

2018 by participants of the Baikal Strategies Business Club.

Inherently, this is the view of the business community of the

Irkutsk Region on its future and development paths. A survey

among authorities of the Russian Federation entities concerning

powers in the system of strategic planning, held by the Analytical

Center under the Government of the Russian Federation [2], has

clearly shown a serious demand for modernization of the current

system of regional strategic planning.

Thus, it is clear that the formation of a system of strategic

planning documents at the regional level, as well as institutions

involved in planning in Russian regions, is extremely important

and yet not completed [3].

It is important to note that with the adoption of the federal

law, as well as the Strategy of Spatial Development of the Russian

Federation until 2025 [1], the discussion about the development

trends of Russian regions, the long-range projection mechanisms

of regional development, and a set of documents for long-term

2 Relevance. Literature review

In the period of the 90s of the 20 and early 21 century, the

planning of socio-economic development of the country and

regions was almost beyond the field of interests of the Russian

Corresponding author: Petr Iosifovich Burak, Institute of Regional Economic Research, Moscow, Russia. E-mail: pi.burak@mail.ru

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2020, Volume 8, Issue 4, Pages: 1480-1485

scientific society. The attention of Russian scientists was focused

mainly on the study of issues of intracompany planning in the

context of individual economic entities – enterprises, firms, and

corporations. Planning at the national and regional levels was

seen as a vestige of the command economy system being

dismantled at that time. Suffice it to note that the federal law

defining the basis for strategic planning of Russia’s economy was

adopted only in 2014, i.e. more than 20 years after the beginning

of market transformations.

comprehensive, synthetic analysis of the following issues:

-profile scientific publications of leading Russian scientists -

regionalists;

-assessment of the regulatory framework for planning socio-

economic development, created in the regions of Russia;

- generalization of the experience of practical planning

activities carried out in the regions - the subjects of the Russian

Federation- at the present time.

This methodological approach made it possible to ensure the

combination of existing theoretical developments on the topic

with the results of practical planning activities in the regions of

the country. For this, the authors carried out a content analysis of

the regional regulatory framework on planning for the period

2015-2020 (for 85 constituent entities of the Russian Federation),

studied the practice of forming strategic planning documents

(concepts, strategies, programs, plans) in the city of Moscow, the

Moscow region, Irkutsk region, Republic of Khakassia, Kaluga

region. In addition, this article summarizes the personal

experience of the authors who were directly involved in the

development of regional strategic planning documents - the

Investment Strategy of the Irkutsk Region for the period up to

2030 and the Complex of strategic investment initiatives of the

Irkutsk Region for the period up to 2030.

In that period, a positive exception was the study of the theory

and methods of long-range strategic planning and projection at

the level of macroregions of the country, conducted by specialists

of the Council for the Study of the Natural Productive Forces of

the Russian Academy of Sciences in 2000-2005. Large-scale

comprehensive research on the development of Russian

macroregions in a market economy was carried out under the

leadership of Academician A.G. Granberg, as well as the practical

development of several strategic documents (concepts, programs)

for the country's macroregions. The studies of this research team

made it possible to update, develop, and expand the traditional

concepts of territorial development that were formed during the

period of a directive planned economy [4-6]. The preparation and

adoption of the federal law “On Strategic Planning in the Russian

Federation” in 2014 initiated the growth of scientific interest to

the problem of economic planning, both at the national and

regional levels. However, most of the published works and

research (including broad-scale and high-quality studies) concern

the development of long-term strategic indicative documents,

such as concepts and strategies that liberal economic thought

considers quite acceptable and useful in a market economy as a

tool that ensures the relationship of national tasks with the

practice of everyday economic activity. As an example, one

should note an interesting study conducted by specialists of the

Institute for Public Finance Reform under the leadership of V.V.

Klimanov [7], and dealing with the problem of analyzing and

evaluating the effectiveness of state programs for the

microregions’ development, elaborated in Russia in the first

Results

Analyzing the process of implementing the law on strategic

planning, Russian researchers pay attention to the limitations in

the content of the documents established by the law, their

insufficient relationship and hierarchy, and the appearance of new

strategic documents that are not provided for by the law [12-14].

In particular, there is an essential gap between the strategies of

socio-economic development of regions and regional target

programs intended for implementing strategies. The development

of strategic documents for several important structural elements

of the territorial organization of the country’s economy, i.e. urban

agglomerations, regions of the Russian Federation highly

integrated economically (Moscow, the Moscow Region, Saint-

Petersburg, the Leningrad Region, Sevastopol, and the Republic

of Crimea), is not provided. Also, the country's 14 macroregions

are practically not covered by strategic planning.

A survey conducted in 2019 by the Analytical Center under

the Government of the Russian Federation among the

administrations of the Russian Federation entities has illustrated

in detail the need to improve the system of strategic planning in

the regions. According to the survey outcomes, the main

regulatory, methodological and organizational problems of

strategic planning processes were identified by experts as the lack

of unity and interconnectedness of strategic planning documents,

the inconsistency of their goals, tasks, deadlines and target

indicators, insufficient powers of regional state authorities (noted

by 10% of the Russian Federation entities) and municipalities,

suboptimal, and sometimes excessive composition of strategic

planning documents, low financial and human resource

capacities, as well as insufficient statistics at the local level.

More than a third of the surveyed entities of the Russian

Federation do not consider the composition and hierarchy of

strategic planning documents developed at the regional level to

be optimal. It is proposed to supplement them by industry

documents of strategic planning of the region, documents of

strategic planning of urban agglomeration, regional projects of the

Russian Federation entity, as well as the spatial development

decade of the 21 century. At the same time, issues of medium-

term planning at the regional level, improvement of its forms and

methods, related to the new realities of the innovation and

information economy as well as foreign economic challenges

facing Russia in the 21^s^tcentury, are not sufficiently studied.

Currently, the works of specialists, such as B.A. Reisberg [8, 9],

A.R. Leibkind [10], L.S. Pekarsky [8] and O.M. Yun [11],

relating to the period of the 80s of the 20^t^hcentury, still remain

the methodological and theoretical basis for medium-term

planning in Russia including program-oriented projecting.

In these conditions, where the imperatives of the

contemporary Russian regional economy, such as the need to

ensure an innovative leap, develop import substitution, and

intensify interregional ties, require increasing the level of

conformity to plan, covering new economic objects

(

macroregions, commodity centers, priority development areas,

science towns, and technopolises) with comprehensive regional

planning, applying new planning methods and tools, conducting

deep and comprehensive research to improve the planning of

socio-economic development at the regional level seems to be

very important.

Methodology

The research methodology of the problem posed includes a

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2020, Volume 8, Issue 4, Pages: 1480-1485

strategy of the region, and the forecast of the labor resources

balance. At that, according to the respondents, the mid-term

projection of socio-economic development and the long-term

budget projection should be excluded from the list of strategic

documents. Also, respondents call the action plan for

implementing the socio-economic development strategy of the

Russian Federation a superfluous document [2].

Region, its place in the top-down structure of concept – strategy

– state regional program, it can be stated that it occupies an

intermediate place between the strategy and programs. The Set of

Strategic Initiatives concretizes the socio-economic development

strategy of the region and ensures its practical expression. In turn,

regional programs and plans should be considered as a tool for

implementing individual strategic investment initiatives.

Currently, the regions of the Russian Federation are

intensively searching for new forms of planning for socio-

economic development, improving and advancing the system of

regional planning documents. Several interesting innovations in

the field of planning were implemented in the Irkutsk Region. In

In the course of the formation of a Set of Strategic Initiatives

in the Irkutsk Region, in 2018, selecting and justifying strategic

investment projects (initiatives) up to 2030 were implemented in

2018. An expert group, specially created under the leadership of

academician S. Glazyev, has selected 20 major investment

projects for various sectors of the region's economy based on

analytical research in cooperation with interested economic

entities (major Russian corporations, enterprises, banks, and

investment funds) and the economic bloc of the government of

the Irkutsk Region. Of these, twelve initiatives relate to

production (industry, transport, agriculture, energy), two

initiatives concern the information economy, four initiatives refer

to the services and housing and community amenities, and two

initiatives refer to regional finance and budget.

How to assess the feasibility of developing such a document

within the general logic of strategic planning, regulated by the

federal law "On Strategic Planning in the Russian Federation"? It

seems that the appearance in the hierarchy of strategic planning

documents of an item that occupies an intermediate position

between strategies and programs is largely justified and

methodically useful. The gap in terms of the content between the

highly aggregated content of socio-economic development

strategies of the country and regions, and the specific content of

state target programs, as noted above, is obvious. At the same

time, if a set of investment initiatives is recognized as a full-

fledged element of the system of strategic planning documents at

the regional level, it would be necessary to thoroughly study the

methodology for its development, the frequency of release and the

planning horizon, as well as determine and form the composition

of indicators.

Another innovation in the regional planning system in the

Irkutsk Region is the development of a five-year State Plan for

Socio-Economic Development for 2019-2023. The regional

leadership considers it a central element of the goal-setting and

strategic planning system of the Irkutsk Region. The plan aims at

effective coordination of the work of state authorities, local

governments, the business community, as well as rational and

maximum efficient use of all the resources of the Irkutsk Region

to ensure sustainable economic growth and welfare. The plan was

developed using program-target planning and project design

methods. All branch and functional divisions of the government

of the Irkutsk Region took part in the preparation of the document,

while the work was coordinated by a specially created body,

namely, the Committee for Planning the Socio-Economic

Development of the Irkutsk Region. The preparation of a five-

year plan for the socio-economic development of the Irkutsk

Region was carried out in the second half of 2018. The plan was

approved by the order of the Governor of the Irkutsk Region and

came into force on January 01, 2019 [15, 16].

017-2019, the Irkutsk Region implemented a model of regional

development that involved strengthening the planning process

and required further improvement of all elements of the planning

system. This refers to increasing the horizon of planning

procedures, expanding the range of entities covered by planning,

increasing the scientific level and validity of planning decisions,

and creating new planning documents, and planning authorities.

In the Irkutsk Region, where a standard base of strategic

planning documents has already been created, including a

regional Strategy for socio-economic development until 2030, an

Investment strategy until 2025, state programs, an anti-crisis plan,

and investment messages from the governor, methodological and

organizational work was carried out in 2018 aimed at creating a

new document for strategic long-term planning at the regional

level, namely, a Set of Strategic Investment Initiatives.

This document does not duplicate the regional strategic

planning documents existing in the Irkutsk Region but

complements them by revealing and specifying the directions for

implementing the socio-economic development strategy of the

region. This is achieved by identifying and justifying specific

major projects in the field of management, industrial production

and investment, ecology and environmental protection, social

policy, and interregional cooperation.

In contrast to the Concept and Strategy of socio-economic

development of the region, the set of strategic investment

initiatives includes specific large-scale investment, management,

and social projects with a deep degree of justification and

feasibility study. The goals and objectives of each specific project

are defined, as well as their contribution to the region's economy,

budget revenues, and population’s standard of living. At the same

time, the approximate volume of necessary investments is

estimated, and the circle of potential investors is outlined. The

time horizon of the set of initiatives is 12 years.

The content of the work carried out within the framework of

this new strategic document can be described as a combination of

scientific research, long-term projection, business analytics,

feasibility studies, information support, and expert support of

managerial activities of regional authorities.

The set of strategic investment initiatives is aimed at

extending cooperation and establishing strong ties between the

Irkutsk Region and neighboring regions of the Baikal

macroregion, as well as with the countries of the Eurasian

Economic Union. Its ultimate goal is to ensure sustainable growth

of the region's economy, the region's access to new markets,

improving the population’s standard of living, and boosting the

Irkutsk Region in a leading position in the Siberian Federal

District.

Thus, the Irkutsk region is developing a new system of

regional planning documents for socio-economic development,

which is atypical in its structure for the regions of the Russian

Federation, as part of a long-term strategy, a set of strategic

investment initiatives, a five-year development plan of the region,

Considering the relationship of the new document with other

long-term planning documents implemented in the Irkutsk

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2020, Volume 8, Issue 4, Pages: 1480-1485

and state programs [17, 18].

under the governor of the region. The State Committee, along

with the heads of executive authorities of the Irkutsk Region,

includes executives of joint-stock companies, the staff of higher

educational institutions, nonprofit organizations, scientists, and

experts, including those from other regions of the country.

Decisions of the State Committee are made by a majority vote of

its members and are mandatory for the executive authorities of the

region.

At the moment, it is difficult to talk about the effectiveness of

this new planning institution. However, the lack of permanent

staff of the State Committee provokes doubt concerning the

ability to provide a deep, comprehensive, and thorough study of

economic and social problems in the region, to prepare planning

documents, fundamentally different in their quality than the

existing ones. Eventually, currently, the work on shaping a five-

year plan is carried out by specialists of industry and functional

divisions of the Irkutsk Region’s government.

As already noted by the authors [19], at present, strategic

planning does not cover all the territorial elements of the country's

economy. This is about urban agglomerations and economically

highly integrated regions of the Russian Federation. The authors

believe that strategies and programs for the development of the

urban agglomeration should become a new element of the

hierarchical planning and projecting system within the Russian

regions. In the current context, urban agglomerations play a

leading role in the spatial organization of the economy and

society, serve as resource concentration as well as accelerated

development points, and provide economic growth, primarily due

to new advanced knowledge-intensive industries and

technologies. The Irkutsk Region, for example, incorporates a

large urban agglomeration, namely, Irkutsk, which plays a leading

role in the region's economy. According to 2018, the city of

Irkutsk concentrated 32% of the total number of employees, 60%

of assets, 56% of retail turnover, and 30% of the total area of new

residential buildings being commissioned in the Irkutsk region

Discussion

[20].

The assessment of innovations and creative searches in the

The dominant role of urban agglomerations in the economy

course of strategic planning of the economy in the Russian

regions, and the content of scientific discussions among

scientists-regionalists allow putting forward the following

conceptual proposals aimed at improving the system and tools of

strategic planning at the regional level. The strategic planning

system should include new economic objects that have been

developed within the regions as Russian Federation entities but

have not yet been covered by planning. This concerns urban

agglomerations, large territorial and industrial complexes, single-

industry towns, priority development areas, etc. It is advisable to

strengthen the coordination of strategic planning processes and

mechanisms of regions and municipalities. It is necessary to

continue working on improving the system of strategic planning

documents in the regions, enriching it with new types of planning

documents (for example, a set of strategic investment initiatives).

It is expedient to adjust and improve indicators for regional

planning documents to allow better reflecting the current goals

and objectives of regional development, i.e. creating innovative

industries, developing interregional economic relations,

implementing import substitution, rising standards of living and

incomes, and ensuring effective environmental management.

Developing strategic planning documents in the regions in the

current context should be carried out using the opportunities

provided by information technology. Electronic exchange of

information, processing of large amounts of data, the interaction

of specialists in electronic networks, management, and control in

real-time mode allow radically expanding the horizons and scope

of planned decisions while maintaining reasonable sufficiency of

the number of planned parameters, the validity of decisions, and

the efficiency of the planning process. It is necessary to form

competent and responsible strategic planning bodies in the

regions of the Russian Federation that can carry out this work at

a new technical and methodological level. In particular, it is

important to create multilateral coordination bodies for strategic

planning for highly economically integrated Russian Federation

entities (Moscow – Moscow Region, Saint Petersburg –

Leningrad Region, Sevastopol – Republic of Crimea). It is

advisable to introduce uniformity in the process of developing and

approving strategic planning documents in the regions, set

deadlines, and responsibility for their compliance. For example,

in the Irkutsk Region, the regional legislature could not approve

and innovative development of the country in general, and its

regions, in particular, is a compelling reason for organizing

targeted strategic planning for the development of

agglomerations, as well as their current management.

Nevertheless, there is practically no systematic and coordinated

practical work on projecting and strategic planning of

agglomerations’ development in the country. This is because of

the lack of an appropriate regulatory and methodological

framework and plenipotentiary governance authorities.

Analysis of long-term planning documents developed to date

for agglomerations has shown that these documents, in their

overwhelming majority, relate to issues of territorial planning,

urban planning, development of engineering infrastructure, and

the formation of unified transport systems. These documents do

not consider the economy of agglomerations, i.e. business

relations of enterprises, cooperation, logistics, use of labor

resources, and investment activities. All these features are typical,

for example, for the Irkutsk Agglomeration Development

Concept, elaborated in 2007 by the Regional Development Fund

of the Irkutsk Region. Meanwhile, it is these issues that should be

the goal-setting and regulation objects in agglomerations'

development strategies. According to the authors, the inclusion

of urban agglomerations’ development strategies and programs in

the regional planning system will raise the economic relations of

enterprises and firms located in agglomerated territories to a

fundamentally new level, increase the pace and scale of

innovation, ensure the rational use of labor, minimize the negative

impact of urban agglomerations on the environment, i.e. turn

them into economic growth centers across the country and

regions.

To prepare and subsequently implement new types of regional

planning documents and, in general, strengthen the planned

impact on the regional economy, it is necessary to form

appropriate planning bodies. For example, to ensure the

implementation of the above-mentioned five-year state plans in

the Irkutsk Region, special management and planning body

named the State Committee for Planning the Socio-Economic

Development of the Irkutsk Region was established in July 2018.

It is noteworthy that according to the regulatory documents, the

State Committee is established in the format of a collegial body

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2020, Volume 8, Issue 4, Pages: 1480-1485

a strategy for the socio-economic development of the region until

Competing interests

The authors declare that there is no conflict of interest that

would prejudice the impartiality of this scientific work.

030 for two years. This situation devalues the developed

documents, reduces their relevance, and discredits the very

planning process.

Authors’ contribution

All authors of this study have a complete contribution for data

collection, data analyses and manuscript writing.

Conclusion

At present, there is an obvious need in Russia to extend the

scope of coordinating economic decisions, and management

activities, as well as to improve long-term goal-setting within the

national economy and economic complexes of the Russian

Federation entities. Improving the level of planned economic

development, implementing strategic plans and programs are a

method that has been tested by many countries when solving

social problems, overcoming economic backwardness, and

achieving an innovative breakthrough. All this is also relevant to

Russia. In contemporary Russia, there is a unique opportunity to

quickly and radically increase the level of planning of the regional

economy, to reorient it towards a social result without shock

therapy, social disasters, and political violence. This can be

achieved based on the following prerequisites:

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