Phenomenon of Megaprojects in Multi-Contour Economy Model

Abstract

The article considers the phenomenon of megaprojects as a type of regional development institutions. It shows that megaprojects complement existing regional development corporations and regional investment forums in Russia and other countries. It is demonstrated that megaprojects are a highly controversial phenomenon, characterised not only by huge amounts of investment but also by severe violations of the planned values of time, financial costs, technical and economic results after the commissioning of the facility. In addition, the current environmental damage from megaprojects is both positive and negative, which makes it impossible to account for its impact in the overall scheme of analysis. The article concludes that megaprojects are informationally closed; therefore, it is almost impossible to collect comprehensive information on them. According to the authors, this is due to the desire of megaproject investors to become "invisible" to statistical and supervisory authorities. Otherwise, many projects may become less attractive with the ensuing risks of conservation of regions in a state of low economic activity. Approaches to assess the target efficiency of megaprojects, as well as their indirect economic efficiency, which is based on the use of the investment multiplier methodology, are proposed. Promising directions for further research on megaprojects are outlined.