Importance As forecasts and projections of Russia's labor capacity show, it is necessary to search for internal supply of labor. Currently, the convicted represent one of reserves that meet low demand. In the meantime, the current state of social and labor relations in the imprisoned economy gives zero opportunities for using the existing workforce effectively. Objectives The specific historical approach to this issue indicates the need to transform the Soviet model of integrating the prison into the national economy. The research aims at formulating specific schemes for establishing the cooperation between correctional institutions and industrial enterprises while integrating the convict labor into the region's economy. Methods Using a systems analysis, I investigate conditions and target indicators of organizing integrated structures at the regional level. Results The conceptual idea of integrating the workforce of correctional institutions into the region's economic and educational environment is embodied through the production center model, which will contribute to forming and developing harmonious social and labor relations. I especially focus on social aspects of partnership, which allow generating public benefits of resocializing the convicted, in addition to private economic benefits. Conclusions and Relevance If the proposed integration model is implemented in the format of production centers, it will have the comprehensive socio-economic effect on each party of this process, i.e. correctional institutions, industrial enterprises, the State. Considering adverse internal and external challenges, if more attention is paid to involvement of the convicted, it will help increase aggregate supply of labor and become one of the factors encouraging positive socio-economic trends.
Keywords: penal system, convict labor, social and labor relations, integration, production center
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