Economic Shocks and Economic Resilience in Russian Single-industry Towns

Authors: Ilsur SULEYMANOV*, Cardiff University
Topics: Economic Geography, East Europe, Russia
Keywords: economic resilience, monotowns, single-industry towns, Russia, economic shocks, crisis, recovery, old industrial clusters
Session Type: Paper
Day: 4/5/2019
Start / End Time: 8:00 AM / 9:40 AM
Room: Roosevelt 4.5, Marriott, Exhibition Level
Presentation File: No File Uploaded


During the economic crisis in Russia in 2008-2009, single-industry towns suddenly became a topic of concern by the Russian government and society. As a result, researchers have observed the government’s subsidies, both explicit and hidden, that seek to maintain employment and avoid social conflict, but that preserve inefficiencies in the country’s post-Soviet industrial landscape. The Russian economy is declining, and is in dire need of modernization. The main problem single-industry towns have faced is how to survive in changed economic and political environment. The transition towards a market economy broke the existing linkages that provided functioning of the dominant companies and revealed their weaknesses. Enterprises, which operate in the metallurgical, mechanical engineering, shipbuilding, coal mining, wood processing, glass production, textile, and mining industries, were not able to face the tough open-economy rivalry due to the uncompetitive production, obsolete facilities and infrastructure, the state non-participation and improper management. Some single-industry towns have other severe problems such as the demand slump, drop in oil prices and production decline, the rising unemployment and salaries cut, increase in crime rate and social instability. The aim of this research is to describe the resistance of urban economies to economic shocks and identify main development strategies for Russian single-industry towns.

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