2021 Vol. 13 №4

This article analyses the features, shortcomings, prospects, and limitations of Russia’s national urban policy (NUP) and similar initiatives abroad to formulate proposals for further development of the Russian NUP. To this end, the study examines international (particularly German) documents and publications on NUP and the Russian regulatory framework. The COVID-19 pandemic has drawn attention to the resilience of cities to crises and the development of urban green spaces. Germany’s current NUP, adopted in 2007, stands out for its complexity and congruence with regional policy. The principal NUP document in Russia is the Spatial Development Strategy. However, it overlooks some issues essential for the development of the city system: the federal authorities support only selected types of towns, such as single-industry municipalities, and the NUP is not comprehensive as it pays little attention to the economic dimension. A feeble information framework and largely powerless municipal authorities impede further development of the NUP. A transition to a comprehensive and well-designed NUP in Russia is proposed, which includes counteracting the concentration of population and economic activity in Moscow and establishing Saint Petersburg as a centre of economic growth. There is also an urgent need to understand the economic development prospects of smaller towns.

The first publications on the spatial diffusion of foreign direct investment (FDI) appeared in the 1970s-1990s. Since then, many of their provisions have been repeatedly criticised as outdated and inconsistent with empirical evidence of the current stage of globalisation. Previously, only examples of ‘newcomers’ to internationalisation were used to illustrate distinct phases in the expansion of transnational companies and their effort to first establish themselves in major economic centres, as the factor of gradually growing awareness of potential investors began to play an important role. This article aims to show the persistent character of FDI spatial diffusion patterns and their correlation with the existing hierarchy of cities. In our research, we used the example of Asian companies working in the Baltic states, Finland, Sweden and Denmark, newcomers to internationalisation, not affected by the ‘neighbourhood effect’, and contrasted them with Western European investors. We confirmed the validity of the hierarchical wavelike model of the FDI spatial diffusion with the dominance of metropolitan urban agglomerations. It was also found that mergers and acquisitions are dominant forms of FDI in developed countries. Their ascendancy leads both to a distortion of the geographical pattern of subsidiaries networks of investor companies and to the intention of investors to sell their assets in provinces and move their head offices closer to capital cities. Consequently, there is a simplification of the structure of businesses, which is typical of the earlier stages of the FDI spatial diffusion.