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Institutions of forest policy of modern Russia

Vol. 18, Iss. 10, OCTOBER 2019

Received: 8 July 2019

Received in revised form: 22 July 2019

Accepted: 20 August 2019

Available online: 30 October 2019

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: P14, P48, P51, Q23

Pages: 1796–1811

https://doi.org/10.24891/ea.18.10.1796

Kozyreva G.B. Institute of Economics, Karelian Research Center of Russian Academy of Sciences, Petrozavodsk, Russian Federation
kozyrevakrc@gmail.com

https://orcid.org/0000-0001-9303-0361

Subject The article considers the development of the Russian forest policy, including forest management institutions and the system of forest payments.
Objectives The aim is to assess the condition of institutions governing the forest management system and provide the rationale for mechanisms designed to create effective models of forestry development.
Methods The study draws on the concepts of the institutional theory and the theory of rent. The research toolkit includes the institutional analysis of forest management institutions, which enables to streamline methodological approaches to formation and development of the forest policy of modern Russia and substantiate ways to improve it.
Results The institutions of the Russian forest policy are in the process of permanent reform. The three Forestry Codes (1993, 1997 and 2006) failed to create a solid foundation for the formation of an effective forest management system. Formal institutions do not fulfill their functions related to efficient distribution of rights of ownership to forest resources. Informal institutions start performing the functions of formal institutions. They create favorable conditions for underpinning the misappropriation of the right to the distribution of forest income.
Conclusions It is crucial to develop a mechanism to control, distribute, and redistribute forest income and adjust it, if necessary. The rental approach introduction will provide the Russian forestry industry with a decent level of profitability, create a sustainable institutional system of forest relations. This will enable the forestry model that contributes to the transformation of forest resources into a source of economic and social development.

Keywords: forest policy, forest management, forest ownership model, forest rent

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