Areas of Reforming Housing and Utilities Sector in Current Environment on Example of Sakha Republic (Yakutia)

Abstract

The article proves the need for reforming the housing and utilities sector (HUS) on the example of Sakha Republic (Yakutia) aimed at improving its performance as a basis for raising standard of living of the local population and effectiveness of reproduction processes in northern regions of Russia. On the basis of attributive estimation of the current state of HUS of Sakha Republic (Yakutia) the critical state of operation of the sector over the period of 2000-2014 is grounded. It is determined that HUS is characterized by low quality and limited range of housing and utilities services provided to the population, which is due to high wear-out rates of technical infrastructure and weak operational capacities of HUS. It is pointed out that the region’s HUS is unprofitable and operates in the environment of permanent shortage of funds due to unsatisfying payment discipline of the population and its low level, insufficient state funding. Systematic lack of funds is proven to be a key factor, which constrains technical modernization of utilities infrastructure of the region’s HUS and further reduces its profitability. The research proposes a system of measures aimed at improving reproduction functions of HUS of Sakha Republic (Yakutia) as three optimization areas of reforms: expansion of financial potential and improvement of management effectiveness in HUS, reconstruction and technical modernization of the engineering complex of HUS. Practical implementation of the proposed conceptual measures will become a prerequisite for securing financial stability and raising the sector’s competitiveness, which, eventually, will contribute to raising standard of living of the population under critical natural and climatic conditions and boosting economic potential of the northern regions.

DOI: 10.5901/mjss.2015.v6n5s4p473