Institutional restrictions as a factor of the development of the economy of Bashkortostan

Institutional constraints that affect the socio-economic growth of municipalities lie in the dominance of informal rules over the current regulatory framework. The indicators of statistical reporting are considered as reflecting the final result of the transformations and their effectiveness. It is revealed that the resource-dependent economy in the Republic of Bashkortostan, including the development of shihans for the production of soda ash, gives a strong dependence of the new institutes on the old ones in the Russian economy and is defined as the “gauge effect”. It has been established that the growth potential in agriculture lies in the effective use of agricultural land, therefore, it is necessary to re-examine abandoned land massifs, develop an economic mechanism for returning agricultural land to economic use, and solve the problem of development of funds allocated for reclamation. There is a decrease in real monetary incomes of the population of the Republic of Belarus, which leads to the emergence of an institutional trap when the low solvency of the population leads to a high debt burden to financial institutions. Considered systemic errors in the public health of the republic such as low wages of doctors, the reluctance of young specialists to go to work in monotowns and regional centers, the transfer of all medical institutions from municipal to republican property. High transaction costs in the construction industry were revealed: the costs of collecting and processing information, the costs of conducting negotiations and making decisions, the costs of control, and the costs of legal protection of contract implementation. Experts note that all this leads to a decrease in the activity of construction enterprises and care in the shadow business.