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Life Science Journal 2014;11(12S) Http Life Science Journal 2014;11(12s) http://www.lifesciencesite.com The replacement strategy for monotowns in Russia: From industry branches towards tourism on the example of Baikalsk Ekaterina Alexandrovna Vetrova1, Marija Anatol'evna Atamanova1, Tatiana Vladimirovna Kulakova2,3 1Russian State University of Tourism and Service, Glavnaya str., 99, Cherkisovo settlement, 141221, Pushkinsky district, Moscow Region, Russia 2High School of Economics, Myasnitskaya str., 20, Moscow, 101000, Russia 3Financial Research Institute of the Ministry of Finance of the Russian Federations, Nastasyinsky Lane, 3, p. 2, Moscow, 127006, Russia Abstract. At the present time the problem of sustainable socio-economic development of monotowns refers to one of the priorities of the state policy. Modern tendencies of the economy development are characterized by a predominance of service industry that is why the industry replacement strategy aimed at refocusing on the service sector (tourism, telecommunications, education, logistics services, etc.). The foreign and Russian experience of monoterritories economic diversification were analyzed, the hypothesis which stands that one of the most perspective direction is the reorientation of the economy through the development of tourism and hospitality industry, as well as the service sector was approved. [Vetrova E.A., Atamanova M.A., Kulakova T.V. The replacement strategy for monotowns in Russia: From industry branches towards tourism on the example of Baikalsk. Life Sci J 2014;11(12s):929-933] (ISSN:1097- 8135). http://www.lifesciencesite.com. 202. Keywords: monotowns, monoterritories, socio-economic development of monotowns, the problems of socio- economic development of monotowns, the service sector, tourism and hospitality industry, replacement strategy, diversification Introduction enterprises to municipalities, some of the objects lost In the last few years escalated by the their social functions and were sold to businesses as financial crisis problems in the socio-economic real estate. For example, some kindergartens, development of monoprofile cities became the object stadiums, swimming pools, sports grounds were of the public attention. closed. Other objects changed activity profile, Monotowns are known as municipality, cinemas have been converted into commercial where a decisive role in the development plays a markets, and summer camps - in corporate recreation township-forming enterprise complex. centers; Township-forming enterprise complex wear factor of engineering and represents one or more enterprises of similar or related social infrastructure increased due to a shortage of industries, bound by a single technological chain, local budgets; which together produce more than 50% of the gross opportunities for the development of city product or which employs at least 25% of the small and medium businesses in the towns dropped economically active population of the city.[1] because of declining in demand for domestic services Currently, monotowns in Russia can be due to a decrease living standards; divided into three groups: stable and unstable Outflow of young people and the operating township-forming enterprises, closed most active part of the working population to another township-forming enterprises.[2] larger and polystructural towns took place, also sex But even survived forming enterprises tend to and age structure of the population changed for the have reduced the number of employees and worse. production capacity. While modernization of In general, according to the Expert Institute, production almost did not happen, except for a financially distressed enterprises amounted to 83.2% number of woodworking industries, acquired by of the total number of all town-forming enterprises. foreign companies.[3] Number of businesses with funds for their own The situation the economy of many development and the development of their municipalities Russia end up in became the result of monotowns, does not exceed 17%. [5] problems accumulation: [4] The main problem of monotowns social Level of provision of social development in Russia is that the living standards of infrastructure decreased, because not all social their population are directly dependent on the facilities were transferred from the industrial financial and economic situation of the core http://www.lifesciencesite.com 929 [email protected] Life Science Journal 2014;11(12s) http://www.lifesciencesite.com enterprise. In case of problems with the financial good practices, to increase employment, wages, and in position of the enterprise a reduction in funding social the end result, socio-economic status of the monotown programs begins, spending on the social infrastructure population generally. reduces, increases the wage arrears. During the In the U.S., France, Japan and some other economic crisis standard of living falls sharply due to countries at different periods a long-term program for lack of work, wage cuts, increased utility bills, the the development of the most backward areas were prices for goods and services, the need to make developed and implemented. These programs payments on the loans, etc. envisaged activities, in particular the establishment of In monotowns small business in industrial production and social infrastructure to ensure production and providing services of a social nature favorable conditions for the subsequent placement of poorly developed, there is a high dependence of local modern industries into them. Economic stimulation of industry and small businesses on the state of the core the development of small and medium-sized cities enterprises, there is a shortage of personnel who know should turn them from the backward and depressed the basics of entrepreneurship and business areas in the active centers of economic growth. management, new information and communication One of the most common mechanisms of technologies are used insufficient, which significantly support and rehabilitation of monotowns workforce in constraining potential of small and medium-sized the West is restructuring the exhausted functionality businesses. [6] of the city. While the economic restructuring of Solution of demographic problems of monotown can be carried in two ways:[9] monotowns is worsening by the large difference in the 1. Diversification of the economy: socio-economic situation and climatic conditions. The through the development of new areas and sectors of environmental situation is also important. All these the economy, including technology-intensive factors affect the overall deterioration of moral and industries and services what comply with the general psychological climate of the population, are reflected trend of increasing the proportion and the role of the in the mortality and morbidity of the population, leads tertiary sector in the global economy; to a dramatic reduction in life expectancy, and 2. Restructuring of the monotown eventually reduces the quality and quantity of labor economy through the modernization of "old" resources of monotowns. One of the main problems is industries. the gap between male and female mortality. Negative As the foreign practice shows, a major role in socio-economic conditions inhibit the formation of the restructuring plays the creation of a certain highly skilled manpower.[7] institutional environment, which increases the Defining trend of demographic situation conversion efficiency. development of monotowns is natural decline in As international experience shows, the population (depopulation) and its aging. Difficult task formation of monotowns development institutions under such a sex-age structure of the population is to accompanied by a set of state and municipal social combine the creation of new jobs ensuring events, among which are the following: competitiveness on the labor market. 1. Professional retraining of population, for To solve the problems identified there is need this purpose in monotowns often new universities are to attract investment. However, investment created, expanding the list of specialties and generally attractiveness of monotowns depends on enumerated increasing educational and scientific potential of the factors: favorable position, well-developed population. infrastructure, developed labor market, active 2. Social assistance to the population - the employment policies. introduction of long paid vacations, benefits (for Currently, the development of monotowns in example, preferential loans for housing); facilitation Russia is a complex task in which social issues are for the creating of new jobs for redundant workers; inseparable from issues of economic, legal, political organization of public works for temporary and environmental. To solve this problem it is employment; granting the right to early retirement, necessary to bring together all levels of government etc. (federal, regional and municipal), the involvement of 3. Support of small business development public organizations, trade unions, as well as the with state funds, local budgets and public funds. direct interest of the monotowns population.[8] 4. Assistance with resettlement of people The problems of monotowns considered from unpromising monotowns. This tool of support typical not only for Russia. In world practice enough the monotowns resettlement was most widely spread examples of their solutions is already accumulated, in the United States because of the high mobility of both successful and not very much. Studying the the population. foreign monotowns is needed to identify and
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