The Russian economy: Between European challenges and the concept of self-development
Russia and the European Union are currently experiencing profound political, economic, and social transformations. The scale of their mutual economic inter-dependence precludes simple ways of overcoming current political risk factors. While it is possible to achieve Russia’s goal of reindustrialization in the framework of national economy, this goal is nevertheless difficult in a closed economic space structure. Aim. This study identifies the problems of economic development common between Russia and the European Union (EU); explores their mutual influence and consequences during the current economic crisis; and analyzes the importance of the human resources for reindustrialization and development of the manufacturing sector in the context of import substitution. Results. The author suggests that the concept of self-development needs to be understood in terms of creating a technological reserve in key industrial sectors, with industries relying on their own development and acquired technology. Developmental changes in the Russian North-West led this macro region to perform the functions of an external economic operator. This resulted in a pronounced decrease in the share of manufacturing industries in the GRP of the Russian Federation’s Northwestern Federal District. Development of import substitution manufacturing faces financial constraints, the necessity to update fixed assets, and human resource problems.