Scientific Journal SPATIAL ECONOMICS - Special Administrative Districts: A New Institute of Development or an Anti-Sanction Tool?

In the section	Review, Discussion, Criticism
Title of the article	Special Administrative Districts: A New Institute of Development or an Anti-Sanction Tool?
Pages	172-182
Author	Albina Anatolyevna Tovgazova Postgraduate Russian Presidential Academy of National Economy and Public Administration 82/1, pr. Vernadskogo, Moscow, Russia, 119571 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0001-5681-6808
Abstract	The paper studies the opportunities that can be offered by creating a system of special economic districts to accelerate the socio-economic development of certain regions and compensate for limitations of international sanctions imposed on the Russian economy. The author analyses the interdependence of political imperatives of acceleration of economic growth and market economy laws. There is a mismatch between the goal indicators of socio-economic development and the tools used to achieve them. There is a possible substitution of market economy with directive state regulation, there is a growth of bureaucratic monopoly and oligopoly that rely on ineffective institutes. Presently, it can be expected that special administrative districts and institutions created for its maintenance won’t be able to use their potential. It is unlikely that two special districts can ensure Russia’s entrance into 5 largest economies of the world. Considering that all previous institutes of growth that relied on tax breaks and investment preferences had weak effect on the socio-economic development of the country, it is obvious that the creation of a new institute will not significantly change the matters. The activity of said growth institutes doesn’t compare to the scale and nature of negative effect of international economic sanctions. If previous institutes mostly show the inadequate usage of potential, then the new special administrative districts will most likely continue the trend. At best they will become ‘safe’ financial harbor for the brave ones but won’t become the generators of new investments
Code	339+332
JEL	E02, F55, O43
DOI	10.14530/se.2018.4.172-182
Keywords	stimulating investments ♦ international sanctions ♦ concessions ♦ free economic zones ♦ territories of advanced development ♦ special administrative districts ♦ Russia
Download	SE.2018.4.172-182.Tovgazova.pdf
For citation	Tovgazova A.A. Special Administrative Districts: A New Institute of Development or an Anti-Sanction Tool? Prostranstvennaya Ekonomika = Spatial Economics, 2018, no. 4, pp. 172-182. DOI: 10.14530/se.2018.4.172-182. (In Russian).
References	1. Alternatives to Offshore Companies in Russia will Appear at Autumn. Biznes Zhurnal [Business Magazine], 2018, 10 July. Available at: http://business-magazine.online/fn_25314.html (accessed September 2018). (In Russian). 2. The First Resident is Registered in Offshore on the Island of Russian. Rossiya Segodnya [Russia Today], 2018, 13 September. Available at: https://ria.ru/economy/20180913/1528445364.html (accessed October 2018). (In Russian). 3. The Impact of Foreign Direct Investment on the Socio-Economic Development of the Far East of Russia. Centre for Economic and Financial Research (CEFIR). Moscow, 2014. Available at: http://www.cefir.ru/index.php?l=rus&id=426 (accessed October 2018). (In Russian). 4. Glazev S.Yu. Russia: Main Aspects of Mobilization Project. Glazev.ru, 2018, 6 June. Available at: http://www.glazev.ru/articles/6-jekonomika/59411-rossija-glavnye-aspekty-mobilizatsionnogo-proekta (accessed September 2018). (In Russian). 5. Godovannik E.D. Economic Sanctions: A Historical Aspect. Molodoy Ucheniy [Young Scientist], 2015, no. 20, pp. 232–234. (In Russian). 6. Goncharenko I., Zakharov A. Special Purpose Islands: Does Russia Need State Offshores? RBK = RBC, 2018, 14 June. Available at: https://www.rbc.ru/opinions/economics/14/06/2018/5b2252d59a7947533ae5010b (accessed November 2018). (In Russian). 7. Medvedev Supported the Idea of Creating Offshore Companies in Russia. Izvestiya [News], 2018, 16 May. Available at: https://iz.ru/744211/2018-05-16/medvedev-podderzhal-ideiu-sozdaniia-ofshorov-v-rossii (accessed October 2018). (In Russian). 8. SEZ Mechanism is still Ineffective for the Russian Economy. Accounts Chamber of the Russian Federation. 2018, 22 October. Available at: http://audit.gov.ru/press_center/news/34870 (accessed October 2018). (In Russian). 9. Ministry of Economy: The Volume of Budget Support for Business in 2016 Reached 30 Billion Rubles. Government of the Kaliningrad Region. 2017, 26 May. Available at: https://gov39.ru/news/101/114922/ (accessed October 2018). (In Russian). 10. Report Against the Legislative Assembly 30.05.2018 by Acting Governor of Primorye Tarasenko (Transcript). Administration of Primorsky Krai. Available at: http://www.primorsky.ru/news/145233/ (accessed October 2018). (In Russian). 11. The Russian Far East: On the Way to Future. Edited by P.A. Minakir. Khabarovsk: Economic Research Institute FEB RAS, 2017, 395 p. (In Russian). 12. Hand over Your Currency: Why Russia Needs Offshore. Rambler, 2018, 29 July. Available at: https://finance.rambler.ru/economics/40438490-sdavayte-valyutu-zachem-rossii-ponadobilis-ofshory/ (accessed November 2018). (In Russian). 13. USA Imposed New Sanctions Against Russian Officials, Businessmen and Companies. Oil.Ekspert [Oil.Expert], 2018, 7 April. Available at: http://www.oilexp.ru/news/politika/ssha-vveli-novye-sankcii-protiv-rossijskikh-chinovnikov-biznesmenov-i-kompanij/145661/ (accessed October 2018). (In Russian). 14. What do Experts Think about the New Law on Offshore Zones in Russia. 2018, 27 June. Available at: https://vc.ru/finance/40819-chto-dumayut-eksperty-pro-novyy-zakon-ob-ofshornyh-zonah-v-rossii (accessed October 2018). (In Russian). 15. The Effectiveness of the Russian Alternative to Foreign Offshore Zones Will Show Practice. Rossiya Segodnya [Russia Today], 2018, 10 July. Available at: https://1prime.ru/state_regulation/20180710/829015469.html (accessed September 2018). (In Russian). 16. Offshore a la Russe: Special Administrative Areas. Zakon.ru, 2018, 30 July. Available at: https://zakon.ru/blog/2018/07/30/offshore__la_russe_specialnye_administrativnye_rajony (accessed October 2018). (In Russian).