The Program ‘Far Eastern Hectar’: Institutional Approach

Tatiana Nikolaevna Zhuravskaia () and Kseniia Igorevna Feoktistova ()
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Tatiana Nikolaevna Zhuravskaia: Economic Research Institute FEB RAS; Far Eastern Federal University, School of Economics and Management
Kseniia Igorevna Feoktistova: Far Eastern Federal University, School of Economics and Management

Spatial Economics=Prostranstvennaya Ekonomika, 2019, issue 2, 92-109

Abstract: The article presents an analysis of the program ‘Far Eastern hectare’ as an institutional experiment, which can have a significant impact on the land ownership in the Far East, according to the authors. The nebulosity of the declared goals of the program initiators (solving demographic problems, accelerating the economic development of the region, increasing the efficiency of resource use, etc.) creates contradictory incentives and specific practices, which leads to a number of issues with program implementation explained from the perspective of a new institutional economic theory (NIET). Proceeding from the dominant prerequisites of NIET that the institutions direct the behavior of economic agents, the authors consider the incentives and strategies of behavior of project (not)participants, the expectations of economic agents from its realization. The analysis reveals several contradictions and problems. First, there is an internal contradiction in the program, between, on one hand, the maximal scale of land privatization based on social justice and, on the other hand, the development of private property institution based on the principles of market maximization of economic value as a tool of economic growth development. Second, the vague supposition that the development of the region would be financed partially by the population is opposed by the opportunistic behavior of a large segment of applicants. Third, the declared co-financing of land plots by the state through transport and engineering infrastructure construction is aggravated by strict budgetary restrictions federally and regionally. Besides, the mechanisms of such support are not clear, which affects the behavior of current and potential applicants. Fourth, the unreliability of the cadastral information and the opaqueness of the approval procedure lead to attrition of the social justice and equality principle, creating real or perceived advantages of some applicants

Keywords: new institutional economic theory; Far Eastern hectare; property rights; land ownership; Russian Far East (search for similar items in EconPapers)
JEL-codes: B15 K11 R14 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:far:spaeco:y:2019:i:2:p:92-109

DOI: 10.14530/se.2019.2.092-109

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