Analysis of Foreign Experience in the Financial Regulation of the Arctic Territories Development and Its Application in the Northern Regions of the Russian Federation

Annotation

The article examines foreign experience in implementing regional financial policy in relation to the Arctic territories. It assesses the experience of such sub-arctic countries as Canada, Finland, Denmark, Norway, Sweden, and the USA. The paper identifies two groups of financial instruments of territorial development: within the framework of general regional policy (instruments of fiscal capacity equalization, taxation instruments, instruments to increase investment attractiveness) and within the framework of special policy for the development of Arctic territories (program-targeted instruments, special development funds, direct allocation of funds for current expenses and development). It is concluded that the Arctic countries apply different approaches and tools to the development of the regions located in the Arctic zone, the choice of which is determined by the type of state structure, the degree of financial independence of the regions in the sphere of financial regulation, the level of development of the northernmost subjects compared to the rest of the country. In the conditions of Russia, it is possible to use the best foreign experience in the sphere of financial regulation of development of the regions located in the Arctic zone. In particular, it is possible to use the experience of applying program-targeted development tools, the formation of special development funds, which are based on revenues from the use of natural resources of the Arctic, as well as the experience of creating favourable conditions to attract investors for the implementation of economically attractive projects.

About authors

Roman V. BADYLEVICH, Ph.D. of Economic Sciences, Senior Researcher 
Luzin Institute for Economic Studies — Subdivision of the Federal Research Centre “Kola Science Centre of the Russian Academy of Sciences”, Apatity, Russia

Keywords

financial regulation, regional policy, Arctic territories, foreign experience, Canada, Finland, Sweden, Norway, Denmark, USA

DOI

10.37482/issn2221-2698.2021.44.5

UDC

332.146.2(470.1/.2)(045)