Journal section "Sectoral economic studies"

The Impact of the New Model of Nuclear Industry Diversification on the Development of the Territories of Presence (Theoretical and Practical Aspects)

Faikov D.Y., Baidarov D.Y.

Volume 14, Issue 3, 2021

Faikov D.Yu., Baidarov D.Yu. The impact of the new model of nuclear industry diversification on the development of the territories of presence (theoretical and practical aspects). Economic and Social Changes: Facts, Trends, Forecast, 2021, vol. 14, no. 3, pp. 135–149. DOI: 10.15838/esc.2021.3.75.8

DOI: 10.15838/esc.2021.3.75.8

Abstract   |   Authors   |   References
The state has set a task to expand the production of high-tech civilian products for the enterprises of the military-industrial complex. Many defense enterprises are located in single-industry towns, which makes it relevant to analyze the mutual influence of the diversification of city-forming enterprises and cities’ development. The purpose of the study is to assess the impact of the new model of diversification on the development of the territories of presence in the context of the nuclear industry. The research methodology is based on the principles of system analysis and institutional economic theory. The authors use the methods of analysis, synthesis, induction, deduction, and logical modeling. The basis is the theory of the social contract. The research proposes a three-level model of the social contract, detailing the interaction of an individual with three levels of public power – federal, regional, and local. The feature of the municipal part of the social contract for single-industry towns is highlighted: its third party is the city-forming enterprise that creates a number of basic benefits. In single-industry towns, where the nuclear industry enterprises are the main city-forming enterprises, the municipal part of the social contract changes: a state corporation becomes one of the contract parties instead of a city-forming enterprise. This is due to the introduction of a new model of diversification of the state corporation's activities. The authors prove that changing the social contract can give the cities of presence new qualified jobs, and state corporations can help to form a personnel reserve, fulfill the goals in the field of defense production diversification and the creation of new high-tech businesses. Testing the modified model of the social contract on the example of closed administrative-territorial entities of the nuclear industry revealed local governments’ and the population’s interest in it, the possibility of cities’ long-term sustainable development, including improving the comfort of living. The results of the study can be used to develop strategic documents for spatial development, programs for single-industry towns development, city-forming enterprises and holdings in various industries


single-industry town, social contract, closed administrative-territorial formation, city-forming enterprise, diversification of the military-industrial complex, State Corporation Rosatom

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