PROSPECTS FOR THE DEVELOPMENT OF THE TRADITIONAL ECONOMY  IN THE CONTEXT OF THE DIGITAL TRANSFORMATION OF THE ARCTIC ECONOMY  

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Elena N. Bogdanova1, Tatiana M. Romanenko2

1Northern (Arctic) Federal University named after M.V. Lomonosov, Arkhangelsk, Russia, bogdanova.en@yandex.ru

2Naryan-Mar Agriculture Research Station, N. Laverov Federal Center for Integrated Arctic Research of the Ural Branch of the Russian Academy of Sciences, Naryan-Mar, Nenets Autonomous Okrug, Russia, nmshos@yandex.ru

Abstract. Technological and digital equity remains an elusive goal for rural areas and agribusinesses operating in the Russian Arctic, where digitalization is still insufficient and progressing at a much slower pace compared to businesses in other regions of the country. At the legislative level, the role of digital technologies and the modernization of traditional farms (e.g., reindeer herding, fishing, etc.) has not yet been adequately assessed. The purpose of this study is to analyze the prospects for developing  the traditional economy of small Indigenous minorities in the North in the context of the digital transformation of the Arctic economy. The scientific novelty of this study lies in examining the current use of digital technologies in northern reindeer husbandry, specifically in the Nenets Autonomous District. It explores factors affecting the digitalization of production processes and identifies promising areas for introducing new digital technologies to preserve and improve the efficiency  of this economic activity. Using non-linear logit regression, the study reveals that the greatest risks to the availability of digital technologies on farms are linked to factors such as digital literacy, access to high-speed Internet, and the quality of equipment, while factors like access to transport and the age distribution of the workforce are less influential. The study also analyzes the digital technologies used by traditional farms, such as the Internet of Things (IoT), satellite communications, and digital platforms.  It identifies promising directions for the digitalization of production management processes, including reducing economic risks associated with agrometeorological assessments, forecasting pasture conditions, automating processes, introducing additive technologies, enhancing communication, and improving the quality of life for workers on traditional farms.

Keywords: Arctic, Nenets Autonomous Okrug, reindeer husbandry, Indigenous Peoples of the North, digitalization, technology, digital technologies, Arctic economy.

Acknowledgments: This study was supported by a grant from the Russian Science Foundation (project No. 24-28-20209 titled “Development of Models for the Adaptation of Rural Territories to Digitalization in the Conditions of Innovative Development  in the Western Sector of the Russian Arctic (Using the Arkhangelsk Region and the Nenets Autonomous Okrug as Case Studies)”.

For citation: Bogdanova E. N., Romanenko T. M. Prospects for the development of the traditional economy in the context  of the digital transformation of the Arctic economy. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North  and the Market: Forming the Economic Order], 2024, no. 4, pp. 53–71. doi:10.37614/2220-802X.4.2024.86.004.

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