Problems Related to Development of the Kaliningrad Region As an Exclave Territory of the Russian Federation

Publication date
Sunday, 29.12.2002

V. Zhdanov, O. Kuznetsova, V. Mau, V. Plyukhin, S. Prikhodko, M. Wojciechowski, A. Hecht


Attitudes towards the geopolitical situation of the Kaliningrad Region of the Russian Federation have dramatically changed of late, both in Russia and abroad. While retaining its traditional significance in Russia's defense doctrine, that region has come to be seen as a golden opportunity for establishment of closer mutually advantageous cooperation between Russia and the European Union. There is a growing understanding of the fact that thanks to its geographic situation that region can be used as one of the Russian territories to undergo priority integration into Europe's Common Economic Area. In the present study, the possible scenarios of development of that region are examined from the point of view of such integration with advantages and disadvantages of each of those sce-narios discussed, as well as such problems as may arise in their implementation.


Introduction 5
Specifics of the Kaliningrad Region 5
1. Specifics of the Kaliningrad Region's Development in Modern Russia 8
1.1. History of Establishment and Specifics of the Kaliningrad Region Free/Special Economic Zone 12
1.2 Outputs of Operation of a Free/Special Economic Zone in the Kaliningrad Region 19
2. The Current Socioeconomic Situation 26
2.1. Level of Socioeconomic Development 26
2.2. Assessment of the Current Structure of Kaliningrad Region's Economy 32
2.3. Development of Infrastructure Branches of the Region's Economy 36
2.4. Factors Impeding Development of the Region 57
3. Main Guidelines of Development of the Kaliningrad Region in the Period Ending in 2010 64
3.1. The Strategy for Development of the Kaliningrad Region: a Strategy for Harmonization of Interests 64
3.2. Objective and Components of the Socioeconomic Policy 66
3.3. Development of the Kaliningrad Region of Russia in the 21st Century 71
4. The Kaliningrad Region's Role in Changing Europe 73
4.1. The Kaliningrad Region as a Region of Cooperation between Russia and the EU 73
4.2. Russia's Contact Territory in Central and Eastern Europe 76
4.3. Efficient Use of the Region's Potential in International Division of Labor 81
4.4. Ensuring of Russia's Military-Strategic Interests 83
5. Principal Lines in the Kaliningrad Region's Development 88
5.1. Restructuring of the Region's Economy in Accordance with the New Conditions of the Region's Development 88
5.2. Development of Infrastructure 88
5.3. The Agrarian Sector 94
5.4. The Industrial Sector 96
5.5. Transformation of the Special Economic Zone Regime 98
5.6. The Public Sector of the Region's Economy 105
5.7. Financial Institutions 107
6. The Required Mechanisms and Institutional Reforms 109
6.1. Federal Goal-Oriented Program 109
6.2. Amendment of Federal Legislation on the Special Economic Zone 111
6.3. Perfection of the Regional Legislation 113
6.4. International Agreements 114
6.5. Support by the European Union and the International Community 116
6.6. Public Consensus (Non-Governmental Organizations in the Region) 120
6.7. Strategic Planning and Indicative Plans 120
6.8. Inter-Regional Cooperation 122
7. Local Economic Development Strategies for Kaliningrad Oblast: Lessons from Northern Ontario Initiatives 123
7.1 Introduction 123
7.2 Outline & Methodology 124
7.3 Canada's Economic Development Strategies: An Evolutionary Perspective 125
7.4. Socio-Economic Trends: Northern Ontario vs. Kaliningrad Oblast 135
7.5. Potential Lessons for Kaliningrad 142
7.6 Final Remarks 145
Appendix 146


Problems Related to Development of the Kaliningrad Region As an Exclave Territory of the Russian Federation
Moscow 2002
Authors: V. Zhdanov, O. Kuznetsova, V. Mau, V. Plyukhin, S. Prikhodko, M. J. Wojciechowski and A. Hecht.
Editor: N. Glavatskaya
Page setting: V. Yudichev

ISBN 5-93255-080-5

The research and the publication were undertaken in the framework of CEPRA (Consortium for Economic Policy, Research and Advice) project funded by the Canadian Agency for International Development (CIDA).

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