Geographical Problems in the Iron and Steel Industry of the USSR

Technological advances in the Soviet iron and steel industry are producing changes in the locational pattern of the industry. The increasing concentration of production in large iron and steel plants requires the use of large iron-mining establishments of the order of 30 million tons of crude ore. Iron and steel plants were once viewed in the Soviet Union as oriented toward the market of a particular economic region. But the growing plant capacity and a trend toward specialization in particular types of finished products tend to expand the marketing zone of individual plants far beyond the boundaries of single economic regions. Future planning of the industry is in terms of five basic iron and steel zones: Central Russia, Urals, South, Siberia and Kazakhstan, of which the Urals and the South are fully integrated and the three others are in varying stages of formation. The declining share of coke in the blast-furnace charge tends to shift the locational pattern increasingly toward iron-ore sources, and this accounts to a certain extend for the gradual shift of iron and steel capacity toward Central Russia, with its ore reserves of the Kursk Magnetic Anomaly.     

The Transformation of Labor Relations in Russian Industry: The Influence of Regional Factors in the Iron and Steel Industry

The author examines the role played by the economic geography of the former Soviet Union in the evolution of labor relations in Russian industry, using the iron and steel industry as a case study. More specifically, three regional factors are analyzed as they affect enterprise economic strategies, organization, and management-labor relations: (1) the inherited industrial structure; (2) the degree of product specialization at the regional level; and (3) the level and sophistication of regional political and labor structures combined with the presence (or lack of same) of a “regional agenda.” These factors are examined within the context of a model predicting several possible variants of post-communist labor relations at the enterprise level. 36 references.     

FIRM ENTRY AND EXIT: CAUSALITY TESTS AND ECONOMIC-BASE LINKAGES*

ABSTRACT One of the foundations of applied regional economics down through the years has been economic base theory (EBT). EBT presumes that economic activity within the basic sector unidirectionally causes economic activity in nonbasic sectors. In recent years, however, increasing attention has been given to the possibility that traditionally nonbasic activities (e.g., services) may be quite important in determining a region's total economic activity. In this paper, we examine the nature and direction of causality of economic activity within a regional economy. Using novel data on entry and exit of firms, the empirical analysis provides new insights into the strengths and weaknesses of traditional economic base theory.     

On the Comparative Effectiveness of the Economic Structure of Regions

An important problem in insuring optimal operation of the centrally planned and state-controlled economy of the Soviet Union is to measure the efficacy of the industrial structure and productive specialization of republics and economic regions. Several measures of the efficacy of regional economies have been proposed, involving various relationships between labor productivity, the value of capital plant and equipment and the value of output. All these measures are unsatisfactory, in the author's view, and an alternate approach is suggested, using the net concept of national income produced by regions. This approach has been made possible by the recent calculation of input-output tables for republics and economic regions. The idea of using national income as a measure of regional economic efficacy was first proposed in the Soviet literature by A. Ye. Probst, whose comments appear elsewhere in the issue of Soviet Geography.     

A Typology of Regional Production Complexes

Soviet regional production complexes at the level of major economic regions are classified on the basis of a combination of two criteria: (a) regional specialization in terms of the energy-and-industry cycles proposed by N. N. Kolosovskiy (coke-based metallurgy, energy-intensive industries, etc.); (b) the developmental stage of the regional economy, in terms of five developmental phases (pioneering, the formation of industrial nodes, the formation of industrial cycles, a reconstruction phase, and achievement of a complex structure). The typological classification is viewed as a possible basis for more detailed breakdowns below the level of major economic regions.     

The Kursk Magnetic Anomaly—A Promising Iron-Ore Base for the Iron and Steel Industry of the Urals (based on a territorial model of the Soviet economy)

Following a previous article prepared together with N.M. Budtolayev and Yu. G. Saushkin (see Soviet Geography, November, 1965), the author develops the theory of a territorial model of the Soviet economy in general, and proposes a section of the model relating to the future ore sources of the Soviet iron and steel industry. It is argued that the Kursk Magnetic Anomaly would provide a more economical ore source for the iron and steel mills of the Urals than the nearby iron deposits of Rudnyy, in northwest Kazakhstan, or the small, scattered, and remote iron deposits of Siberia. The cost of economic development in the east and the availability of a heavy eastbound traffic of empty freight cars are cited as factors.     

Scientific Principles for a General Long-Range Scheme of Location of the Productive Forces of the USSR

The general long-range scheme of economic location, evidently being worked out by the Council for Study of Productive Forces, Gosplan USSR, involves three aspects: a regional aspect, designed to determine the regional specialization and the prospects of an integrated regional economy on a given resource base; an analysis of economic sectors, evaluating locational factors in specific industries, types of farming, and transportation; and a “synthetic” analysis of major national development problems, such as manpower redistribution, utilization of the underemployed population of small towns, rational use of energy and water resources, etc.).     

Problems in the Economic Regionalization of India

The authors propose a framework of a system of economic regions based on economic production principles. This principle is designed, on the one hand, to promote a regional economic specialization, and, on the other hand, to ensure integrated development of the regional economy. The Soviet geographers find that some major economic regions are already evident, for example, Western India (including West Bengal, Bihar and possibly Orissa), but that large parts of the country, especially in the north, lack sufficiently clear characteristics to make possible an economic regionalization without further detailed study.     

A Preliminary Scheme for the Economic Regionalization of Cuba

The authors propose a scheme of economic regionalization for Cuba, based on Soviet Marxist principles. These include the idea of objective existence of a region, independently of man's will; the need for considering future developmental prospects; energy supply; the prerequisites for integrated development of the regional economy; the presence of a regional specialization; maximum promotion of a geographical division of labor, and the factor of the country's defense capability. The resulting system of six regions in described.     

Regional Specialization and Industrial Concentration Patterns in the Turkish Manufacturing Industry: An Assessment for the 1980–2000 Period1

Previous studies on geographical distribution of economic activity in Turkey demonstrate that firms are localized in major metropolitan areas as well as a set of emerging regions. The aim of the paper is to complement the findings of the studies on regional and industrial concentration in Turkey's manufacturing industry by exploring whether regional specialization and industrial concentration patterns changed during the 1980–2000 period. The paper further aims to explore the driving forces of industrial concentration in Turkey's manufacturing industry, particularly during Turkey's economic integration process that started with trade liberalization after 1980 and further developed with the Customs Union in 1996. Regional specialization and industrial concentration are measured by GINI indices Turkey's NUTS-2 regions at the four-digit level for the years between 1980 and 2000. To investigate which variables determine industry concentration, systematic relation between the characteristics of the industry and industrial concentration is tested. Following the method proposed by Paluzie, Pons and Tirado, a panel regression equation is estimated, where the dependent variable is the Gini concentration index and the independent variables are the variables that represent the characteristics of the sectors that follow the predictions of classical trade theory, new trade theory and new economic geography. The major finding of the study is that during 1980–2000, Turkey's regions became more specialized and industry became more concentrated. Increases in the average values of regional specialization and industrial concentration support the prediction developed by Krugman hypothesis that regions become more specialized and industries become more concentrated with economic integration. In exploring the driving forces of industrial concentration, the findings demonstrate that firms tend to cluster in regions where there are economies of scale.     

珠江三角洲镇域乡镇工业发展及其地方经济影响研究——以顺德市北窑镇为例

本文以珠江三洲为研究区域,以顺德市北窑镇为实例,就乡镇工业发展对一个镇域地方经济产生的影响进行了研究。认为在一些乡镇工业部门的发展过程中,可以作为一个"增长极",通过前后项生产联系有效地带动地方农业和第三产业的增长,从而形成地方的多种经济活动空间集聚体。因此,地方政府在选择其经济增长极时需对其与其它经济部门的前后项生产联系作周密的考察。     

Russia’s Natural Resources in the World Economy: history,review and reassessment

Abstract

Russia’s role in the global economic system today, and the Soviet Union’s in the past, is dominated by the export of natural resources, particularly oil and gas. The rents earned from these exports are both a source of strength and weakness, as they link the fortunes of Russia’s domestic economy to the volatility of global resource markets. This paper returns to a major research project conducted through the offices of the Association of American Geographers that resulted in Soviet Natural Resources in the World Economy, published in 1983. The project was first conceived in the aftermath of the resource crisis in the 1970s and concluded in the early 1980s as the Soviet Union sought to increase resource exports to support a failing domestic economy. This paper examines the origins, evolution, and management of this seminal work and presents a re-reading of the book in a contemporary context. We develop some of the key themes of the original project and conclude that it has contemporary relevance, as a reliance upon the resource sector remains a defining characteristic of Russia’s political economy and continues to shape Russia’s role in the global economy. We find that the regional dimension that was so important in the original project remains critical as Russia seeks to extend the resource frontier into new regions in the Arctic and the East and, at the same time, reduce its reliance on European markets – that are both stagnant and hostile – by developing new markets in Asia.     

CONCEPT FOR PRESERVING AND RESTORING THE ARAL SEA AND NORMALIZING THE ECOLOGICAL,PUBLIC HEALTH,AND SOCIOECONOMIC SITUATION IN THE ARAL REGION

The government committee charged by the former USSR Supreme Soviet with formulating measures for resolving the Aral Sea crisis presents a list of basic recommendations for ameliorating public health and economic problems in the Aral Region and reversing the decline of the sea. Considerable emphasis is placed on basic structural change in the regional economy and water budget. A staged procedure is outlined for the gradual transformation of the water balance and economic structure while maintaining the Aral Sea as a single (unified) water body.     

Structural Change and Regional Disparities in Xinjiang,China

The paper by a noted American geographer and a specialist based in Germany examines and analyzes recent economic growth and structural change in the strategically significant and resource-rich (including oil and gas deposits) region of Xinjiang. The authors identify regional variation in the trajectory of economic development at the urban and county levels, employing conceptual approaches related to structural shifts in economic sectors and focusing on shifts in employment from agriculture to activities in the secondary and tertiary sectors. They also investigate the role of the tertiary sector using a labor transition model, examining its functioning in the context of the industrial sector's absorption of labor in the transitional economy of China. Calculations are based on the most recent official statistical data released by national and regional governments and available at present (mid-2006). Journal of Economic Literature, Classification Numbers: J21, J24, O18, R11. 9 figures, 4 tables, 45 references.     

NEGATIVE FEEDBACKS IN THE ECONOMY AND INDUSTRIAL LOCATION*

ABSTRACT. Incorporating regional asymmetry and negative feedbacks (congestion) in a model of economic geography and international trade shows that complete specialization of production at one location is unlikely. We identify an agglomerating force: the home market effect, and two spreading forces, competition for demand from immobile sectors of production and congestion. We demonstrate that negative feedbacks can explain the economic viability of small industrial regions observed in the real world. Simulations clarify the basic structure of the model.     

The Economic Geography of the USSR by the Year 2000

A Soviet economic geographer uses a popular science monthly to predict some of the changes that may be expected in the Soviet Union over the next three decades. Urban population will tend to live in middle-size cities rather than gigantic urban complexes or excessively small settlements. Farm yields will be increased through more intensive use of the land. Conventional fuels and hydroelectricity will not be challenged by atomic power except in remote areas lacking other energy sources. Heavy industry will continue a gradual eastward shift beyond the Urals but will not be matched by an equal flow of population, which will remain concentrated in the European part of the country.     

闽台经济发展动能测算比较

福建作为我国海峡西岸经济区的主体,经济发展备受瞩目。闽台隔海相望,在气候、地形等自然背景和经济、文化等人文背景上具有一定的相似性。这使得台湾工业化过程的发展政策和经验能够为福建当前和未来的产业结构发展提供借鉴。本文类比物体动能,对不同工业化时期的闽台经济、三次产业和制造业发展动能进行测算比较,并结合闽台不同时期的政策进行分析,得出结论:(1)福建经济发展动能起点高、增长快。(2)目前福建第二产业明显领先第三产业,产业结构优化升级速度快。(3)闽台在经济发展重点的变化上具有一定程度的相似性且当前重点行业具有一定互补性。福建可利用闽台区域条件互补优势,借鉴台湾发展政策,制定工业化中后期产业发展政策。     

Economic Geography in the USSR on the 50th Anniversary of Soviet Power

Economic geography has, since the inception of the Soviet state, played an important utilitarian role in the planning and development of the national economy. The basic research of economic geographers in the preplanning stage should, however, be distinguished from the actual selection of an industrial site or of a railroad alignment, which must be the province of government design and planning agencies. Two approaches can now be noted in Soviet economic geography. One, closely related to economics, deals with the economic factors of economic location; the other, closely related to physical geography, emphasizes the regional approach to the man-environment system.     

Strategic R&D as an answer to the oil crisis. West and east German investment in coal refinement and the chemical industries, 1970–1990

Abstract

In reaction to the oil‐price shocks of 1973/4 and 1978/9 both of the German states reconsidered coal refinement as a technological answer to economic and political constraints. In the GDR the chemical industry in particular could not do without this technology, but the state did not undertake a major R&D programme, preferring rather to continue with existing plants and processes. The disastrous consequences of this policy were felt when the Soviet Union cut off oil supplies to the GDR in the early 1980s, so damaging irreversibly not only the chemical industry, but the entire East Germany economy too. In the FRG the chemical industry was an active interlocuter with the federal government but notwithstanding the offer of generous subsidies was always prudent about the need for a switch back to coal from oil, and believed that new R&D programmes in the coal refining area were not imperative given Western German leadership in the field. In the event it was sectors of the economy other than the chemical industry which benefitted from the federal government's concerns about the oil price rises in the 1970s.