THE IMPACT OF THE COVID-19 PANDEMIC ON THE DIGITALIZATION OF THE ECONOMY IN THE ARCTIC REGIONS OF RUSSIA

Abstract

The COVID-19 pandemic has proved the need to digitalize all aspects of society. Digital technologies have made it possible to solve many industrial and household problems under public health restrictions. The experience gained during the pandemic can accelerate the digitalization of various aspects of life. This article aims to identify key trends in the digital transformation of the economy in the Arctic regions during the pandemic. Utilizing government statistics, our study reveals that the anticipated acceleration of digital transformation in the Russian economy and Arctic regions in 2020 and 2021 did not materialize. In 2021, most indicators reflecting the digitalization of economic activity and everyday life remained below pre-pandemic levels. In terms of corporate digitalization, Arctic regions demonstrate a notable lag behind the average Russian level, with the Republic of Karelia being the only relative exception. Particularly pronounced lags in regional economic digitalization are observed in the Komi Republic, Nenets Autonomous District, Krasnoyarsk Krai, and the Republic of Sakha (Yakutia). Also, the Arctic population’s engagement with information and communication technologies generally falls below the national average, excluding the Yamalo-Nenets Autonomous District and the Murmansk Region. In the digitalization of people’s daily lives, the Komi Republic and the Krasnoyarsk Territory exhibit the greatest lag from the average Russian level. We propose the development of regional digitalization programs for Arctic economies, incorporating incentives such as subsidized internet traffic for small and medium-sized businesses, website creation support for economic agents, employee training initiatives, provision of computer equipment for large and low-income families, and the establishment of internet access centers in rural settlements.

Keywords

• pandemic
• digitalization of the economy
• information and communication technologies
• production and management automation
• quality of life
• access to material and social benefits