Analyzing all four offered models, it should be noted a clear advantage of the first of them "unitary", the most suitable for the Russian realities. According to the interrogated heads, the unitary model of management provides the solution of wider range of the tasks that are mainly connected with regulation of the general resources of the territory, the best coordination and efficiency of management, an orientation on the solution of strategic tasks. The clear advantage of unitary model of management is traced in possibility of coordination of subjects' interests of territorial relations, flexibility of management, ensuring intermunicipal cooperation and distribution of responsibility.

However this model has also some shortcomings: respondents see the main shortcomings of unitary model in monopolization of management, remoteness of the power from the population, reduction of opportunities of local community to influence decisions of the authorities, loss of independence of municipalities, centralization of resources, forming of a power vertical, bureaucratization of management, decrease in a role of local government.

Studying existing models, I have developed a proposal for the settlement of municipal management in agglomerations.

The alternative to transfer state power to the current level of self-government of the "second level" can be complement the existing list of municipalities with new species of the municipality - "urban agglomeration".

As a special municipal level urban agglomerations can get in his charge additional local issues in a number of areas of activity - industrial, scientific and technical policy, health care, higher and vocational education, road construction, etc. and the associated additional powers. This recommendation is already contained in the draft "Guidelines for the development of mechanisms of local self-government in the medium term," generally supported during the All-Russian Congress of municipalities on November 8, 2013.

Unlike the city district for agglomeration it is expedient to provide possibility of existence of independent municipalities of "local" level to keep local government at the level of the settlements which were its part and to avoid a problem of territorial inaccessibility of local government which is characteristic for a number of the large city districts which don't have rights to incorporate settlements today. Such settlements can be transformed to intra agglomerative municipalities with reference to the European charter of the cities II (it is accepted in 2008). It is recommended that metropolitan areas had intracity municipal unions as another special type of municipalities.

Questions of allocation of such intracity municipalities, their quantity and powers according to the solution of questions of local value could be established by laws of territorial subjects of the Russian Federation individually, taking into account opinion of representative bodies of city agglomerations and proceeding from the principle of ensuring unity of municipal economy. Such an approach would ensure greater participation of the subjects of the Russian Federation in the territorial organization of local self-government at the level of urban agglomerations and would reduce their potential conflicts with the authorities of these cities.

The problem of over-consolidated urban districts, relevant today in the context of the difficulties the feedback between the population and the authorities of local government, after the introduction of "urban agglomerations" as a new type of municipalities seems to lose its sharpness. The remaining urban districts will not be as large in size and area, and for them it is possible to keep norms on inadmissibility of creation in their structure of "local" municipalities.

Creation of city agglomeration as a new type of self-government with intra agglomerative municipalities allows to use one of foreign models of agglomeration management which assumes prevalence of public authorities of the region in management of agglomeration.

In this management model can be solved the problem of transmission of all-round development of urban areas in the state to the municipal level, but without the abolition of "second tier" local self-government as such.In this case, participation of the subject of the Russian Federation in the management of agglomeration can be achieved as follows:

1) In order to ensure the unity of the urban agglomeration economy is created Administration, whose head is appointed by the head of the subject of the Russian Federation, taking into account the views of the representative body of the agglomeration.

2) In this model a representative body of all agglomeration - the City Council - remains, but isn't abolished. However it is expedient to pass to indirect elections of deputies of City Council from structure of deputies of representative bodies of intra agglomerative formations. In such design the population directly elect "their" deputy of the territorial subject of the Russian Federation on the one-mandatory district ("Klishas's law" allows to increase their number) and "their" deputy at "the first level", the closest to inhabitants and clear to them. By results of indirect elections each intra agglomerative territory is presented in City Council by the deputy from the structure having the greatest authority and level of competence.

3) In order to ensure management accountability administration agglomeration population can be fixed rules on annual public reports to the representative bodies and / or the public, as well as the head of administration of the possibility of revocation of representative bodies and / or the population (in their view, for example, after a vote of no confidence) .

4) The competence of the agglomeration administration, the system of its relations with the bodies of local self-government, the terms of their reference are governed by separate laws of the subjects of the Russian Federation, taking into account regional specifics.

5) The actual folding of direct selectivity of heads of intra agglomerative municipalities and transition to their election from structure of representative bodies of local self-government of "the first level" can become the general rule.

Frame federal legal regulation of creation of city agglomerations can be carried out in two ways:

1) Adoption of the frame federal law directed on definition of the status of city agglomerations (Federal Law "About City Agglomerations", Like Federal Law "About the Status of Science Cities", the Act of the Russian Federation "About the closed administrative territorial educations", Federal Law "About the innovative center "Skolkovo") at simultaneous entering of referential norms into No131-Federal Law and updating of its chapter II devoted to the principles of the local self-government territorial organization.

2) Introduction to No131-Federal Law the concept "city agglomeration", which definition will contain criteria of reference of city districts and settlements in structure of agglomeration, and the new article 82.3 "Features of the Organization of Local Government in City Agglomerations". The contents of this article will have something in common partly with contents of Art. 79 "Features of the organization of local government in territorial subjects of the Russian Federation - the cities of federal value Moscow and St. Petersburg", carrying on the level of territorial subjects of the Russian Federation a regulation of the majority of specific questions of the local self-government organization in agglomerations.

Chapter 4. Position of the small cities in the Russian agglomerations on the example of the Rostov-on-Don agglomeration

The situation in most small towns in Russia is now quite deplorable. As shown by the results of the 2010 census for the period since the 2002 census, the population decreased by 2.3 million people (or 1.6%) and amounted to 142.9 million people. The main reason - the natural population decline as a result of the excess of deaths over births (born 12.7 million persons, died 17.4 million persons). At the same time the migration growth was 2.5 million people, able to fill only half of the natural decline in population. The end result can be a migration from small towns, which could be around 15-20 million people, which is comparable to the total number of able-bodied population.

Among the reasons explaining so negative tendencies in a demographic situation of Russia, the special place is taken by a condition of city and rural settlements, lack of the distinct urban policy focused on improvement of quality of the environment of the activity considering the changing requirements of economic and social development. As a result, the population seeks to move there where the favorable environment provides not only comfortable conditions of accommodation, but also allows to realize their potential opportunities both as persons, and as the citizen responsible for the destiny and a worthy public condition of the city. Such approach most meets also the requirements of innovative model of economic development, where the main resource - the human capital with high intellectual potential.

Thus, to minimize negative consequences for the small cities from accession to agglomerations, it is necessary to study carefully possible prospects and threats that can both accelerate process of aglomerations creation, and to slow down it.

All municipalities entering agglomeration get possibility of participation, generally, larger project and receiving the benefits on which can't count one by one.

For consideration of advantages and shortcomings from the introduction into city agglomeration which are peculiar to the small cities, it is offered to consider the Rostov agglomeration as an example of one of the most promptly developing agglomerations with prospect to become third largest in the territory of the Russian Federation after the Moscow and St. Petersburg agglomerations.

The Rostov region differs:

* Unique geopolitical position of a bridge between Europe and Asia;

* Cross-border arrangements in the southwest of Russia;

* Position at the crossroads of maritime and inland waterways;

* Passage through its territory overland Railways - railways and roads of the central to southern parts of the country and the neighboring foreign countries.

The transport infrastructure of the region is an integral part of transport corridors - Crete (No 7, 9) and transcontinental "North-South".

Rostov region intersect: highway "Don", the railway line Moscow - Rostov - Caucasus, shipping route along the river from central Russia to the Black Sea and to the Mediterranean.

The region has five ports:

1. Rostov International River Port,

2. International Taganrog Commercial Sea Port,

3. Azov international seaport,

4. Volgodonsk port

5. The port of Ust-Donetsk

Also in the territory of area there is an international airport Rostov-on-Don.

The Rostov region incorporates 23 cities. 12 of them form city districts: Rostov-on-Don (1048,7 thousand people), Azov (83,1 thousand people), Bataysk (101,2 thousand people), Volgodonsk (169,6 thousand people), Gukovo (68,3 thousand people), Donetsk (50,9 thousand people), Zverevo (25,7 thousand people), Kamensk-Shakhtinsk (94,5 thousand people), Novocherkassk (177 thousand people), Novoshakhtinsk (114,5 thousand people), Taganrog (260,7 thousand people), Shahty (244,4 thousand people).

11 cities form the centers of municipal areas: Belaya Kalitva (45,6 thousand people), Krasnyi Sulin (43 thousand people), Millerovo (37,7 thousand people), Salsk (60,9 thousand people), Aksay (36,9 thousand people), Zernograd (27,9 thousand people), Konstantinovsk (18,6 thousand people), Morozovsk (28,7 thousand people), Proletarsk (19,4 thousand people), Semikarakorsk (23,3 thousand people), Tsimlyansk (14,7 thousand people).

Among the listed cities, seven have population over 100 thousand people: Rostov-on-Don, Taganrog, Shahty, Novocherkassk, Volgodonsk, Novoshakhtinsk, Bataysk.

The bulk of urban population is concentrated in southwest part of the area differing in the highest level of industrial development. There are six of seven largest cities of the Rostov agglomeration. The cities which are most territorially approached to the Don capital entering belts of pendular migrations: Bataysk, Aksay, Azov, Taganrog and Novocherkassk.

Bataysk -- a large railway junction. To the city it is transformed from the working settlement in 1938. The industry of Bataysk is closely connected with an industrial complex of Rostov and in many respects is its addition.

Modern Bataysk one of the largest transport knots of the South of Russia keeping the status of "railway gate of the Caucasus". The city is located on crossing of the major railway and automobile lines of federal and regional value; and also in close proximity to the international seaports of Taganrog and Azov, river port and the airport of Rostov-on-Don. The advantageous geographical position and the developed transport infrastructure create conditions for creation in Bataysk of the large centers of logistics. The industrial complex of Bataysk is presented by a number of the manufacturing enterprises of finished metal products, cars and the equipment. In the city there is largest point of collecting metal scrap in the south of Russia. Also the enterprises of the light and food industry work. In general modern Bataysk represents one of the most actively developing cities of the Rostov region.

Aksay - railway station on the line Moscow-Rostov. In the city there are Aksaykardandetal plants, glass, plastic, combines of construction materials, etc.

Azov - port on Don, in 8 km from its confluence with the Sea of Azov, railway station. Among the large industrial enterprises -- plants of the forge and press equipment, forge and press machine guns, plant on production of the trade equipment. Substantially specialization of the industrial enterprises of the city is connected with its seaside situation.

Taganrog is located to the West from Rostov, on the northeast coast of Taganrog Bay of the Sea of Azov. It is based by Peter I in 1698, as seaport and fortress. It is large industrial, cultural and scientific center, one of the leading seaports in the south of Russia. It is located in southwest part of the Rostov region on the bank of Taganrog Bay of the Sea of Azov, in 50 km from the Russian-Ukrainian border. In Taganrog are organically combined high industrial and scientific potential with the rich historical past. The leading industrial enterprises of Taganrog allow it to take the second place in area after Rostov-on-Don on the volume of the shipped goods of own production. Production of these enterprises is steadily exported to many countries of Europe and Asia. Scientific institutions of Taganrog are engaged in development and deployment of the perspective directions in the sphere of a radio communication and microelectronics, nanotechnologies and robotics.

Novocherkassk is located on the sublime district at merge of two non-navigable small rivers -- Aksay and Tuzlov, railway station on the line Moscow -- Rostov. It is founded in 1805, as an administrative center of Area of Army of Donskoy in connection with transferring of its center from Cherkassk (now the village Starocherkaskaya). Here almost there was no industry. A number of educational institutions let out the military personnel, spiritual and civilians. The proximity to Rostov-on-Don, and also a number of industrial centers of area, the developed transport infrastructure presented by automobile and railway lines of federal value a high level of development of engineering communications promote the active economic growth of the city. Modern Novocherkassk - the largest industrial center, which basis of the economy is formed by the enterprises of power industry, nonferrous metallurgy, mechanical engineering, the chemical, light, food industry. In the city the Novocherkassk state district power station, largest in the region, works. Electric locomotive and electrode plants, plant of synthetic pitches and some other enterprises let out unique production, many years keeping the leading positions in the branches of production. High concentration of educational and scientific institutions allows to call Novocherkassk "the city of students".

The following was distinguished as the conditions promoting strengthening of process of aglomeration creation in the territory of the Rostov region:

* The gradual expansion of a residential development of the cities, settlements and rural settlements conducting to washing out of borders of settlements, "merge" of them;

* Existence of free lands around cities, former lands of agricultural purpose;

* Gradual transformation of social installations concerning a way of life, change of views on living environments, in particular aspiration of citizens to have the housing in the country because of not really good ecological conditions in the central city;

* Existence of the "hidden urban population" living in cottage settlements in the rural territory;

* Already available objects of infrastructure - roads, electricity, a water supply system, cellular communication, Interenet and others, along thoroughfares, in the garden and country societies and "dying" villages;

* Development of an infrastructure of service along thoroughfares and in recreational zones - cafe, gas stations, campings, shops and another;

* Growth of number of personal vehicles among the population;

* The developed network of highways;

* Organized regular transport connection (bus, railway) between all cities and settlements located round Rostov-on-Don;

* Existence of the common information space created by mobile network operators and pro-weiders of the Internet;

* Existence of uniform space of mass communication: the general television channels for all cities located round Rostov-on-Don, the general printing editions;

The Rostov agglomeration is one of the largest in Russia:

* Positioning in a geopolitical and geoeconomic context,

* Concentration of intellectually capacious kinds of activity,

* Powerful consumer market,

* Mobile labor market,

* Development of sector of services,

* Possibility of placement of large infrastructure objects of new type (hub, science and technology park, business center, etc.)

The existing structure of agglomeration:

* The first belt of agglomeration (transport availability of the downtown doesn't exceed 15-25 minutes): Aksay and Bataysk, the item Chaltyr. Pendular daily migration - about 50 thousand people.

* The second belt of agglomeration (transport availability - 60 min.): Novocherkassk, Azov. Pendular migration - about 30 thousand persons.

* The third belt (2-hour transport availability): Taganrog. Pendular migration - about 16 thousand persons.

The Rostov agglomeration is characterized by: rather high level of professional education of the population; existence of high-tech industries (the enterprises of high-tech industries of economy make 5,5% of all enterprises); existence of innovative infrastructure (3 science and technology parks, center of a transfer of technologies, branch scientific research institutes, 2 innovative and technological centers, etc.); the developed network of the higher and secondary education (87 state and non-state highest and average educational institutions); high level of migratory potential; dynamically emerging market of work.

There are positive and negative moments of development of the Rostov agglomeration. On the one hand, Rostov-on-Don keeps and stimulates development of the nearby cities and adjacent territories in the links of functional structure which are responsible for the industry, agriculture, construction and transport, on the other hand the effect of gravitation created by the Don capital impoverishes functional structure of the cities which are a part of the Rostov agglomeration. It is especially noticeable concerning functions of trade and commercial activity, education, finance, culture and art, science and scientific service which are rather poorly developed in Bataysk, Aksay and Azov. In realization of potential of an aglomeration the level of development in functional structure of the block of the central functions to which it is possible to refer education, management, financial activity, culture, and also science and scientific service is of particular importance.

Rostov-on-Don as the regional capital accumulates existence of the central functions. From the point of view of region development, differentiation of central functions of city districts of the Rostov region is important. It is possible to carry Taganrog, Novocherkassk, Shahty and Volgodonsk to the city districts having rather developed, in area scales, the block of the central functions. Besides the central functions above-mentioned city districts dominate practically on all other links of functional structure of the Rostov region.

Thus, analyzing the situation of small cities (satellite towns), consisting in the Rostov agglomeration, as the positive effects from the process of agglomeration of areas well as negative were marked.

Among the positive consequences for the small towns that are part of the Rostov agglomeration are the following:

1. Development of vacant land surrounding satellite cities;

2. Transfer of production from the main city of agglomeration to districts of satellite towns;

3. Creation of new workplaces, expansion of opportunities of application of effort for the small cities residents;

4. Expansion of transport infrastructure;

5. Stimulation of new construction in the small cities, reconstruction of shabby housing;

6. Development of social infrastructure;

7. Development of small and medium business in the territory of the small cities;

8. Improvement of quality and variety of household services for the population of the small cities;

9. Increase in availability of the welfare benefits;

10. Increase in availability of education, increase of its quality (construction of colleges, technical schools in the small cities);

11. Increase in availability of the medical benefits and improvement of their quality.

Also in the presence of all these results from process of an aglomeration, the standard of living of the population of the small cities from the point of view of accommodation in ecologically purer residential suburb remains. It should be noted important positive result of acceleration of coherence and speed of administrative decisions adoption on the questions concerning the general with the main city and the neighboring cities problems of the territory, increase of interest of governing bodies in the solution of all territory questions.

Among negative consequences for the small cities from accession to agglomeration it is necessary to call: probability of the interests conflict of the center and periphery agglomeration authorities; probability of problems in the sphere of the taxation; probability of independence loss of municipal authorities of satellite towns. As it is possible to notice, all negative consequences can be reduced in general to one prime cause - to absence of the normative legal acts regulating activity of city agglomerations in the territory of the Russian Federation.

To systematize all positive and negative consequences from inclusion of small cities into agglomeration, SWOT analysis of position of the small cities entering the Rostov agglomeration was made.

Strengths	Weaknesses
· Broader access to scientific and educational base; · Access to quality medical services; · High labor potential; · Thoroughfares and knots; · Building of free lands round the cities; · Development of infrastructure; · Existence of workplaces;	· Population reduction; · Non-uniform level of social and economic development of municipalities; · Possible loss of independence of municipalities;
Opportunities	Threats
· Possibility of expansion of the territory due to existence of not populated lands round the cities; · Possibilities of development due to increase of competitiveness and investment appeal of aglomeration economy; · Effective use of territorial resources; · Possibilities of use of geographical, environmental and territory position advantages; · Possibilities of demographic development (involvement of able-bodied and skilled workers)	· Imperfection of the federal legislation and standard and legal base in the field of intermunicipal interactions; · Considerable distinctions in quality and a way of life of the population of the center and the periphery of agglomeration; · Political instability; · Uncontrollable migration; · Economic crises.

Table 6. SWOT analysis of position of the small cities in Rostov agglomeration.

Due to the concentration of economic activity within an aglomeration the strengthening of territorial differentiation in the Rostov region is still a threat. Against dynamically developing territories (Rostov-on-Don, Taganrog, Azov, Aksaysky and Myasnikovsky areas) rather big circle of depressive territories (Gukovo, Zverevo, Donetsk, Kuibyshev, Soviet, etc. areas and city districts) that have the worst values of a rating of integrated estimates among municipal areas and city districts of the Rostov region remains. Further growth in leading territories will be slowed down owing to restrictions of manpower and territories of building, and degradation of engineering and social infrastructure in depressive municipalities will amplify. Therefore risks of strengthening of territorial disproportions should be estimated as the highest. They will promote increase in social and budgetary tension. The main problems of development of territories now are high degree of wear of engineering infrastructures or their total absence, disproportions in labor market, lack of infrastructure prepared investment platforms, lack of work places that conducts to migratory outflow from the small cities, and also to emergence of "stagnant poverty" (owing to demographic features of territories, specifics of labor market etc.).

Thanks to development of city agglomeration, the consumer market of both the main town, and nearby satellite towns, is characterized by high investment appeal to what continuous growth of number of the trading enterprises testifies: for 2000-2014 their number increased twice. At the beginning of 2014 the consumer market of area was affected by 40 thousand trade objects. At the same time, investment activity is distributed in the Rostov region selectively and is connected with territorial concentration of demand for consumer goods and services and proximity of transport and warehouse infrastructure. In the Rostov region these conditions are available not only within the Rostov agglomeration, but also in large city districts, Taganrog, Novocherkassk, Shahty, and also in the small cities located close.

How favorable development of urban agglomeration for the city cores, and for the satellite towns can also be defined in terms of the commissioning of the total area of residential buildings, which is an indicator of construction activity in agglomeration. During the period of 1990-2007 years the proportion of Rostov-on-Don in the metropolitan area and the cities together systematically increased by 27 and 30%, respectively. Analysis of the situation showed the city, characterized by positive dynamics. These include Bataysk, Volgodonsk, Novocherkassk, Taganrog, and to a lesser extent, Azov.

In the course of commissioning of total area of houses per capita superiority remains beyond Rostov (587 sq.m). Bataysk as satellite town practically doesn't concede to the Don capital (527,8 sq.m). On the third place Taganrog (259 sq.m); on the fourth - Azov (254 sq.m). Commissioning of total area of houses of individual housing construction: Rostov-on-Don (210,4 sq.m), Bataysk (259,4 sq.m), Azov (174,4 sq.m). Characteristically that among municipal areas of the Rostov agglomeration on commissioning of total area of houses and houses of individual construction Aksaysky, Azov, Myasnikovsky and Neklinovsky areas are in the lead. There is an interconditionality and interaction of functions of Rostov and nearby territories of agglomeration. Rostov-on-Don initiates and supports high rates of construction in the territory of all city agglomeration, integrity of system functioning of main city and satellite towns thereby is provided.

Indicators of the average monthly added salary of one worker and existence of cars in personal property to 1000 people characterize a standard of living and attractiveness of an urban environment for the population. Against the tendency of average monthly salary increase, that is general for all cities, and existence of cars in personal property it is possible to allocate more or less prosperous cities. Except the city kernel of agglomeration on the level of a salary it is possible to note Volgodonsk, Bataysk, Novocherkassk, Taganrog. By number of cars in personal property superiority belongs to Volgodonsk. Further Rostov-on-Don, Bataysk, Novocherkassk, Azov and Taganrog follow. Here it should be noted the high level of indicators in Bataysk, occupying, respectively the third and second places among the cities of the Rostov region.

Productions in the Rostov agglomeration, in the city yard and in all satellite towns, function as a unit that is one of favorable consequences from a city aglomeration. From the point of view of potential aglomeration realization, the distance between the cities isn't so much important as the complementarity of industries functions.

The most significant positive effects of being inside the metropolitan area, viewed in the following sectors: production and processing of wood (Bataysk); manufacture of rubber and plastic products (Aksai); metallurgical production and production of metal products; production of leather, leather products and footwear; pulp and paper, publishing and printing (Taganrog); manufacture of non-metallic mineral products; production of vehicles and equipment; chemical production (Novocherkassk); manufacture of electrical and optical equipment (Azov).

One of the benefits for the cities that are part of the urban agglomeration - is the ability to use public goods on equal terms with the main city. Thus, in the satellite more colleges, technical schools, educational institutions, which have a direct link with universities in the city nucleus are built. However, the advantage in the field of education is of Rostov-on-Don, as the center of the metropolitan area. In the Rostov agglomeration undisputed leader in the field of of education is Rostov-on-Don. Novocherkassk is historically linked with the education system. Now it is possible to give second, third and fourth place respectively to Taganrog and Shakhty. Secondary special educational institutions have almost all the satellite towns of Rostov agglomeration, as well as the operating subsidiaries of secondary schools.

Medical services, as well as the education sector is developing throughout the metropolitan area more or less uniformly. Analyzing the medical service sector of Rostov-on-Don city and coming down to the Rostov agglomeration, it is impossible to allocate clearly prosperous city with developed function of public health. Rostov-on-Don is best provided by doctors, there is a high concentration of hospitals. As the number of nurses Taganrog is on the first place, and on the security of hospital beds the first one is Gukovo.

For the cities that make up the metropolitan area also enables the financial institutions to facilitate implementation of the economic activities of the population. According to data analysis, in addition to the Rostov-on-Don, the absolute leaders in the number of financial institutions are Taganrog, Novocherkassk, Volgodonsk, and, to a lesser extent, Shahty and Kamensk-Shahtinskiy. These urban districts accumulate financial activity, extending their influence on the surrounding area. Located in the vicinity of Rostov, Bataysk, Aksay, Azov contain a minimum number of financial institutions, and the number of them among these cities decreases with increasing distance from the Don capital. The same effect of gravity financial activity, but less force is around Taganrog, Novocherkassk, Volgodonsk, Shahty and Kamensk-Shahtinskiy. In the south, the center of financial activity is Salsk.

Rostov-on-Don as the city kernel of the Rostov agglomeration, closely interacts with adjacent municipal areas. There is some kind of interconditionality of functions: the industry, (for example, food) of the kernel city is supported at the high level, thanks to the developed agriculture of adjacent areas of city agglomeration, and at the same time the Don capital provides support and development in them of the functions inherent in city districts.

If to speak about prospects of development of the Rostov agglomeration in figures, experts predict the following changes by 2020.

	2005	2015	2020
Population (millions of people)	4,33	4,14	4,17
Gross regional product (%)	106,9	108,1	108,2
Retail trade turnover (%)	115,4	107,3	106,6
Investments into fixed capital (%)	104,8	110,0	109,0
The real disposed income of the population (%)	107,9	107,2	106,8
Nominal salary on one worker (%)	121,7	130,7	130,9
Share of innovative activity in a gross regional product	2,3	7	12
Level of the registered unemployment (%)	1,7	0,9	0,6
Average security of the population of area with living space (sq.m/person)	20	25	28
Provision (sq.m / person) Retail space Office space	0,175 0,2	0,6 3	1 5

Table 7. Prospects of development of the Rostov agglomeration by 2020. (Strategy of social and economic development of the Rostov region for the period till 2020. Electronic document http://www.gosbook.ru/system/files/documents/2011/07/06/st44_1789.pdf)

Apparently from the forecast of Strategy of social and economic development of the Rostov region for the period till 2020, development of the Rostov city agglomeration will positively be reflected in the size of investments into fixed capital, the nominal salary on one worker will increase, the share of innovative activity will increase considerably. Also very important factor is unemployment rate which by the 2020 will decrease more, than twice and will make instead of 1,7% only 0,6%. Due to the mass continuous building of territories which is one of the main distinctive features of city agglomerations, average security of the population with living space will increase, also security of the population with trading floors will increase almost by 6 times and 25 times more office areas will become.

Considering the prospects for the development of the Rostov agglomeration raises the question of studying methods of improving the socio-economic situation of the city, consisting in the metropolitan area. In connection with this obvious importance of improving the region's competitiveness and enhance the attractiveness of the region for strategic investors.

Under the competitiveness of the region is understood its role and place in the global economic environment, the ability to provide a high standard of living and the ability to realize the existing potential in the region (production, employment, innovation, resource and raw materials, etc.).

Speaking about the Rostov agglomeration and, in the context of this thesis, about the small cities, satellite towns, it is necessary to study the directions of competitiveness increase, to analyse mechanisms of social and economic spheres of population life improvement and increases of living standard in the small cities.

The carried-out analysis of economic and social situation of the cities entering the Rostov agglomeration allowed to reveal not only weak and strengths of the cities, but also allowed to distinguish "growth poles" from the cities of the Rostov agglomeration. From the point of view of national and international positioning of the territory emphasis on five cities is possible: Rostov-on-Don, Taganrog, Novocherkassk, Mines, Volgodonsk. These cities not only dominate practically on all links of functional structure of the Rostov agglomeration, providing more than a half of a regional product, but also are the center of the central functions of agglomeration: cultures and arts, science and scientific service, financial activity and management.

In the socio-economic development of the Rostov agglomeration and enhancing its competitiveness and living standard of the inhabitants, the special role belongs to the city-kernel - Rostov-on-Don. Rostov produces almost 50% of the agglomeration product, thus bears half or more of the load on each element of the functional structure. Rostov-on-Don dominates in the central functions, which include education, government, financial services, culture and art as well as science and scientific services. Being the center of defining the functional structure of the Rostov agglomeration, Rostov-on-Don is responsible for the deficiencies in its development, and hence for the range of offered products and services.

If we talk about the development of the satellite towns territory, the Azov, Bataysk, Aksay, it should be mentionted that they can offer the following advantages: the ability to purchase housing is cheaper than in the agglomeration city-kernel, life safety, environmental friendliness, convenient communications (transport, telecommunications), the proximity to the center of the agglomeration - Rostov-on-Don.

As a result, improving the competitiveness of the Rostov agglomeration is achieved by marketing of core competencies within the structure of its small satellite towns based on a combination of competitive advantages of their functional structure and the urban environment quality.

To systematize all the external factors affecting the situation of the small cities in the Rostov agglomeration, the PSET-analysis was held, the results of which are presented in the table below.

Type of factors	Factors promoting development	Factors limiting development
Political factors	· political stability; · improving the legal and institutional environment, favorable conditions for investment; · stable normative framework, expanding the authority and the economic basis of local self-government; · implementation of fiscal policy aimed at increasing the revenue base of local budgets.	· Political actions of the government, violating the political stability; · reduction of financial support.
Economic factors	· economic growth; · availability of external financing; · economic cooperation between agglomerations	· economic crises; · strengthening of the competitive position of the neighboring agglomerations; · outflow of financial resources to other aglomerations.
Technological factors	· implementation of innovative projects on the agglomeration territory ; · stimulating innovation at national and regional levels.	· insufficient attention of the city authorities to the development of science and innovation capacity; · reduction of financing innovative projects; · tightening of laws on environmental protection.
Socio-cultural factors	· migration inflow of qualified personnel; · social stability throughout the aglomerations.	· demographic decline; · low birth rate; · outflow of population; · strengthening of the differences in quality of life between the agglomeration center and periphery

Table 8. PEST-analysis of external factors affecting the Rostov agglomeration socio-economic development.



Conclusion

The modern interest to agglomeration is connected with the fact that the experts recorded a fundamentally new processes of large urban systems development. Most experts say that in order to ensure sustainable high economic growth, Russia must move on to the development based on the so-called new "portfolio of resources" (the human capital, the capacious and dynamic markets, innovations, hi-tech fixed assets and post-industrial type of the production organization).

The optimistical opinion that the territories entering agglomeration will develop increasingly every year is justified. This greatly contributes to the growth, despite the crisis, of the agglomerations centers. In the small and average cities and areas closely located to the capitals of aglomerations the new productions will arise (a transfer of industrial zones from cities to science and technology parks, industrial clusters), the housing will be built, infrastructure objects (warehouses), malls will be under construction. However formation of image and, as a result, a brand of the small and average cities within agglomeration depends both on territorial policy of the authorities, and on federal support of economic development of agglomerations.

During the dissertation research the question of the small cities position in the agglomerations was investigated and the advantages and disadvantages of small city involved into the agglomeration were studied. After a detailed observation of classical researches on city agglomerations and also fresh works, I was able to explore all the features of the Rostov city aglomeration and make a detailed analysis of the small cities position.

During research features of studied Rostov agglomeration were revealed, the detailed analysis of each small city which is a part of agglomeration was carried out. Then advantages and shortcomings, which the small cities involved into structure of the Rostov agglomeration have, were marked out. The made SWOT analysis allowed to systematize the obtained data.

On completion of studying of Rostov agglomeration small cities position, the subject of competitiveness improvement of the Rostov agglomeration and attraction of new investments to it, that could promote raise of social and economic situation in agglomeration and increase living standard of the population, was elaborated. Unfortunately not up to the end it was succeeded to study position of all small settlements of city type in the Rostov agglomeration that is caused by insufficiency of information, the normative documents regulating their activity, absence of own printing editions, the sites. Studying was carried out, based on the data published on the sites and in the documents relating to all Rostov agglomeration, to the city kernel and to satellite towns.

In consideration of the agglomerations as a type of inter-municipal cooperation, after a detailed study of the existing four models of interaction between the municipalities within urban agglomerations, it was proposed a suitable, in my opinion, scheme of inter-municipal cooperation in our country.

After analysing of accomplished work, it is necessary to return to the hypothesis made at the beginning of research that «the small city, included into the city agglomeration, has possibility of intensive social and economic development and improvement of population living standard, thanks to close industrial, cultural and recreational interaction with the core-city of agglomeration» and to draw a conclusion that during the carried-out analysis this hypothesis has been confirmed.



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