BENEFITS AND GAPS OF THE MARKET ECONOMY FOR REGIONAL POLICY OF RUSSIA: THE FAR EAST CASE
The influence of a market economy on the regional policy of Russia on the example of the Far East is analyzed. The methodological basis is the theory of the center-periphery relations and the theory of the new political economy on the rent-seeking behavior of political decision-makers. The role of the state in the primary development and further development of the East of Russia has historically been dominant. In the 21st century, the Far East came to the forefront of Russia's regional policy. We believe that the modern market economy decisively affects the ability of the state to manage the development of its territory. The advantages of this influence are that the implementation of development projects is without human sacrifice; regional policy is developed taking into account the cost and future gain; the state shares the risks of new economic projects with private business. The disadvantages are that economic growth and the rate of profit are at the forefront, while social tasks and strengthening national security are fading; permanent central planning institutes become unprofitable, territorial planning switches to outsourcing; infrastructure development is tied to foreign sales markets; corruption in the execution of infrastructure contracts is multiplying; bureaucracy and related regulations are expanding; development projects require more labor costs and are worse provided with personnel. Despite this, the territorial development of post-Soviet Russia has some positive results, therefore, even in market conditions, an active regional policy seems appropriate.