Organizational and Economic Forms of Cross-Border Cooperation of a Region

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Organizational and Economic Forms of Cross-Border Cooperation of a Region International Journal of Civil Engineering and Technology (IJCIET) Volume 10, Issue 02, February 2019, pp. 1395-1407. Article ID: IJCIET_10_02_135 Available online at http://iaeme.com/Home/issue/IJCIET?Volume=10&Issue=2 ISSN Print: 0976-6308 and ISSN Online: 0976-6316 © IAEME Publication Scopus Indexed ORGANIZATIONAL AND ECONOMIC FORMS OF CROSS-BORDER COOPERATION OF A REGION I.N. Sycheva I.I. Polzunov Altai state technical university, Barnaul, Russian Federation N. M. Miheeva Saint-Petersburg State University, North-West Institute of Management — branch of the Russian Presidential Academy of National Economy and Public Administration,S-Petersburg, Russia A.N. Dunets Altai State University, Barnaul, Russia N.E. Ivanova Nosov Magnitogorsk State Technical University, Magnitogorsk, Russia V.N. Nemtsev Nosov Magnitogorsk State Technical University, Magnitogorsk, Russia R.B. Gabdulkhakov Birsk branch of Bashkir State University, Birsk, Russia ABSTRACT The paper is devoted to the development of the Altai Territory (the Russian Federation) as a border region with the involvement of production potential and capabilities of the neighboring region – East Kazakhstan Region (the Republic of Kazakhstan). The authors performed a SWOT analysis of the regions as a "cross- border growth pole". The study also examines the development of a border region in the context of the theory of integration and clustering. The authors suggest an algorithm for creating a local development axis in the territory of a border region. Agricultural engineering is presented as the main branch of cooperation between the Altai Territory and the East Kazakhstan Region. Moreover, the paper examines the form of enterprise management within the local development axis and the effect of these enterprises functioning http://iaeme.com/Home/journal/IJCIET 1395 [email protected] Organizational and Economic Forms of Cross-Border Cooperation of a Region Keywords: border areas; economic integration; the Altai Territory; agricultural engineering. Cite this Article: I.N. Sycheva, N. M. Miheeva, A.N. Dunets, N.E. Ivanova, V.N. Nemtsev and R.B. Gabdulkhakov, Organizational and Economic Forms of Cross- Border Cooperation of a Region, International Journal of Civil Engineering and Technology, 10(2), 2019, pp. 1395-1407. http://iaeme.com/Home/issue/IJCIET?Volume=10&Issue=2 1. INTRODUCTION The Altai Territory, which occupies a significant area of the Eurasian continent in the structure of Russia, creates a special geopolitical position, linking actively integrating Europe with the rapidly developing countries of the Asia-Pacific region. At the same time, neighboring border regions play an important role in its development due to significant natural, material, production, technical, and labor potential and large market opportunities. Being an agro-industrial region, the Altai Territory has traditionally developed engineering and agricultural engineering in particular. However, the region has lost its position in the production of expensive sophisticated technological equipment, such as tractors and combines, while supplying cheaper mounted and trailed equipment on the market. The industry with a wide range of high-tech products mainly develops in the western part of Russia, while the eastern regions, including the agro-industrial Altai Territory, remain on the periphery of progressive development [1-9]. Among the neighboring regions, the East Kazakhstan Region (EKR) is one of the largest trading partners of the Altai Territory. Thus, one-third of the regional turnover accounts for Kazakhstan, and seventy percent of this turnover – for East Kazakhstan Region. This is largely due to the interest of administration in establishing new and strengthening already existing relations with the border regions. Thus, several agreements on trade, economic, scientific, technical and cultural cooperation were signed between the Altai Territory and the East Kazakhstan Region. Cross-border cooperation of the Altai Territory with the East Kazakhstan Region takes place within the framework of the interstate program "Our Common Home – Altai" [10-12]. Six adjacent areas of the Big Altai, including the Altai Territory and the East Kazakhstan Region, decided to build a new model of interstate cross-border cooperation to create optimal conditions for the development of all territories of the Altai region (CIS Convention on Border Cooperation). The developing cooperation between the adjacent territories of Russia, Kazakhstan, China, and Mongolia should be implemented in the field of economy, trade, science and technology [13-19], mining and processing of natural resources [20-27], transportation [28], environment [29], tourism, education [30-31] and culture [32-37]. The prospects for interregional cooperation between Russia and Kazakhstan have all the necessary prerequisites (Socio-economic development of Altai Territory, The strategy of socio-economic development of the Altai Territory until 2025, Customs Union and cross- border cooperation between Kazakhstan and Russia). At the same time, the key feature of the new quality of such cooperation, surely, was the concept of creating a full-fledged common market recognizing special significance of the border regions. However, the analysis has revealed a rather ambiguous dynamics of economic cross-border cooperation of the Altai Territory, which is limited only to an increase in the volume and expansion of product range in trade and services with little or no industrial business forms [38]. To reach a new level of http://iaeme.com/Home/journal/IJCIET 1396 [email protected] I.N. Sycheva, N. M. Miheeva, A.N. Dunets, N.E. Ivanova, V.N. Nemtsev and R.B. Gabdulkhakov integration, it is necessary to develop new science-based projects and comprehensive programs to enhance the region’s industrial potential [39-53]. 2. MATERIALS & EXPERIMENTAL PROCEDURES To assess the strengths and weaknesses of the border region, as well as the influence of various environmental factors on its condition and development, the authors have performed a SWOT analysis of the regions as a "cross-border growth pole" (Table 1). Table 1 SWOT analysis of the border region: the Altai Territory and the EKR Strengths Weaknesses Geographical location - convenient geographical and border remoteness from the main global commodity location; markets and international transit corridors - the center of the Eurasian continent Workforce - relatively skilled and cheap labor; - traditions of professionalism in the field - high level of natural population decline; of typical metalworking and engineering industries in the region; - migration outflow with a predominance of the working age population; - high innovation and educational potential, a developed education system, - imbalance of the labor market: the presence of many sought-after, but "non-prestigious" the presence of a science city (Biysk) and a technology park (Ust-Kamenogorsk); specialties and, as a result, a shortage of specialists in working professions - sufficiently high level of entrepreneurial activity of the population Economy - diverse and rich mineral resources; high - technological lag of industrial enterprises of content of useful components in the ore; certain types of economic activity; - a strong basis for development of the - insufficient funding of exploration; engineering industry; - lack of integrated use of the extracted mineral - unique production facilities in the resources; metallurgical industry; - narrow specialization in the global and regional - dynamic development of the chemical division of labor; industry; - the narrow range of major industrial products, - availability of domestic resources for both for export and for domestic consumption; the construction industry; - raw stock orientation of a significant part of - dynamism and prospects for economic production; development of the food industry; - the low added value of production of the leading - prerequisites for creating clusters; sectoral enterprises; - favorable foreign economic conditions - high depreciation of fixed assets in the industry; for several industries of the real sector of - insufficient investment in fixed assets; the economy; - crisis state of many enterprises in machine - export-oriented enterprises with building; extensive experience in foreign markets operating within regional economic - low share of innovatively active enterprises and insufficient share of innovative products in the entities; volume of shipments; - dynamic development of the real sector of the economy and high positions in the - low products competitiveness; markets of goods; - the investments are mainly directed to the http://iaeme.com/Home/journal/IJCIET 1397 [email protected] Organizational and Economic Forms of Cross-Border Cooperation of a Region Strengths Weaknesses - cultural and historical heritage, creating reproduction of the former economic structure; favorable conditions for tourism - the almost complete absence of industrial development cooperation with foreign partners in the processing industries, where the international division of labor can have the greatest economic effect Agriculture - extensive land resources and diversity of - the existence of factors increasing the risk of natural and climatic features, availability agricultural production; of raw materials for the agro-industrial sector; - high wear of the material and technical resources of agriculture; - a large agro-industrial region with a strong production potential - low level of agricultural productivity
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