Identification of the Causes of Population Outflow from the Successful Far Eastern Arctic Region (1990–2020)

• Published in: Ekonomika regiona 2024, Vol.20 (2), p.539-555
• Main Authors: Galtseva, N. V., Favstritskaya, O. S., Sharypova, O. A.
• Format: Article
• Language: eng ; rus
• ISSN: 2072-6414; 2411-1406
• DOI: 10.17059/ekon.reg.2024-2-13

The problem of the Far Eastern macroregion after the transition to a market economy is the population outflow. Since 1990, the Chukotka Autonomous Okrug, the easternmost Arctic region of Russia, has lost the largest share of the population (70 %). The external success of the okrug’s socio-economic development, as evidenced by the primary industry growth and its leading places among the constituent entities of the Russian Federation in a number of key per capita indicators, does not contribute to the influx of labour resources, since this region is one of the smallest in Russia. The 30-year dynamics of socio-economic processes in Chukotka were examined to clarify the reasons for this paradox. To this end, main quantitative and qualitative indicators of the Chukotka Autonomous Okrug in the economic and social sphere were compared in the context of a planned economy (1990), when the region was attractive for living, and market one (2020), characterised by a massive population outflow. To assess living standards, the authors’ methodology was used to compare the purchasing power of income in different economic conditions. Living standards significantly decreased: in a planned economy, they exceeded the national average by 3 times, while in market conditions, there is only a slight excess (22 %). The population outflow from the Chukotka Autonomous Okrug resulted from a combination of two factors: a change in the economic paradigm and specificity of the Arctic region. Accordingly, the population of the northern and Arctic regions can be maintained only by providing a better living standard relative to other constituent entities of the Russian Federation. The findings can be used to improve the socio-economic policy of the Russian North and Arctic.