Issue №2, 2020

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Competitevness and justice in the life of people and enterprises in the northern regions of Russia

 

DOI: 10.34130/2070-4992-2020-2-124-132

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Styrov M. M. – Ph. D. in Economics, senior researcher at the laboratory of financial and economic problems, Institute of Social, Economic and Power Problems of the North of the Komi Scientific Center Federal research center of the Ural Division of the Russian Academy of Sciences, Syktyvkar, Russia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The article deals with the problem of non-compliance of additional social obligations assigned by legislation on the enterprises in the North of Russia with the principles of justice, freedom of competition and unity of the economic space. Empirical data are presented to assess the impact of this dissonance on the natural and financial parameters of economic activity. A study of the situation was conducted using a survey of specialists. It was found that the problem is more significant for small business and less – for medium and large. The ways of adaptation of enterprises to the revealed unfairness are described: including these obligations in their "additional package of social responsibility", avoiding the provision of benefits and guarantees by illegal and pseudo-legal methods, avoiding direct price competition in various ways. The author emphasizes the inferiority of the dominant paradigm of competition as a competition with the survival of the fittest, since it leads to the separation of economic entities from each other. Possible ways of solving the problem by authorities and organizations are outlined and evaluated: further ignoring (the simplest, but undesirable), full compensation for these costs to enterprises (almost unrealistic), compromise cost sharing between the government, business and employees with some improvement of the benefits system (the most preferable in the short term), gradual transformation of the economic system from the principles of competition and personal benefit to cooperation and mutual service (the most difficult, but most desirable in the strategic plan). The results will be useful for civil servants and managers, scientists and teachers, public figures and ordinary citizens. Further research can be aimed at substantiating the role of the spiritual and moral component in increasing the competitiveness of the Northern regions of Russia.

Keywords: competitiveness, the Northern regions of Russia, "the Northern benefits", justice, cooperation, spiritual and moral transformation of the economy.

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For citation: Styrov M. M. Competitevness and justice in the life of people and enterprises in the northern regions of Russia // Corporate Governance and Innovative Economic Development of the North: Bulletin of Research Center of Corporate Law, Management and Venture Investment of Syktyvkar State University. 2020. No. 2. P. 124–132. DOI: 10.34130/2070-4992-2020-2-124-132.