DEVELOPMENT OF BUSINESS IN A MONOTOWN ON THE EXAMPLE OF GUBKIN CITY REGION, BELGOROD OBLAST

P. O. Oblakov () and E. A. Karpov

Russian Journal of Industrial Economics, 2015, issue 2

Abstract: The problem of monotowns in Russia is actual and its solution presents the task for the highest administration level. In many monotowns we observe an unfavourable development of the social –economic situation and negative forecasts, when employees lose their jobs. One can study the specificity of the economy on the example of town of Gubkin, Belgorod region, where the metallurgical enterprise dictates the economy of the city. The principal social-economic problem of a monotown is the disproportion in the influence impact of different economic sectors. The large city-building enterprises are very influential while rare small and middle business lack any influence. The article proposes a model of social system as combination of elements which can vary their state in certain boundaries and accordingly suggests to stimulate small and middle business through strengthening of factors which help the town-dwellers to organize their own business. When financial and material resources lack, it will be helpful to introduce information and education programs to compensate the lacking competence of certain town-dwellers. To duly introduce such training programs it is expedient to separate certain intermediate stages, to coordinate the sequence of the stages and to envisage the final result as a series of simpler intermediate results. The people can be trained on the territory of the monotown, the authors submit an appropriate project and present its typical structure.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:218

DOI: 10.17073/2072-1633-2014-2-100-108

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