Approaches to Interstate Interaction of Circumpolar Countries in the Development of the Arctic

Purpose: is to suggest recommendations on the problems of cooperation of circumpolar countries in the Arctic based on the analysis and accumulates the existing economic concepts of interstate interaction.

Methods: the work used the methods of classification, induction and deduction, generalization, structuring, statistical and logical analysis, system analysis, algorithmization. The research is based on the using the elements of empirical and theoretical methods for economic reality research.

Results: the study presents the development of theoretical approaches to issues of interstate interaction in existing economic schools. The authors studied the experience of interstate cooperation in sphere of Arctic territory exploration and development. Based on basic theories, the existing theoretical and practical approaches of interstate interaction of circumpolar countries are summarized. Taking into account the dynamics of foreign trade turnover of circumpolar countries, the authors suggested the model of interstate interaction.

Conclusions and Relevance: the development of conceptual provisions for interstate interaction for Arctic development allows us to take into account the main arising risks of the development process. It should be noted, that the main basic conceptual point of interstate interaction of countries in sphere of the Arctic development is the factor of "economic person" behavior within the neoclassical theory. This approach allows us to take into account the possibilities of interstate interaction, both from the point of view of openness of economic systems, and from the point of view of conflicts of interests of participants and the consequences of climate change. The suggested dynamic model of circumpolar countries interaction is based on the factors of multi-sided cooperation of various stakeholders as the main institution for the development of Arctic policy of circumpolar countries. It allows to consider the main risks arising during the of Arctic territories development. 

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