Supplementary Reproduction Technologies as a Demographic and Social Development Tool for Russia

The aim of the work is to undertake an economic analysis of practicability of supplementary reproduction technologies regarding human reproduction in Russia and, as a result, improving its long-term competitiveness. The authors consider the impact of reproduction technologies from a narrow economic perspective and intentionally do not involve speculating philosophical, legal, ethical, psychological and spiritual and moral aspects of their implementation. The study undertaken proves material incentives and supplementary reproduction technologies including surrogacy are the most relevant among efficient interventions aimed to improve the birth rate. The authors show surrogacy may become a real way to resolve the reproduction crisis in future. Investments in surrogacy are paid off from 3 to10 years by labour of the adult person starting from their entry into work and about 25 years longer starting from the moment of the investing at the discount rate of r = 4−8%. By the end of conventional labour period, the return on total investment in a person outweighs the investment by 7.2 over 25 years from the moment of investing at r = 4% and amount of investment Z_HC = 25% of GDP per capita at PPP. The sources of investments in demographic development of Russia, additionally to the state budget, may reasonably include regional budgets especially of regions of high per capita GDP and low birth rate as well as charitable donations from most wealthy citizens. The results of the work are applicable to strategic planning of forms, methods and mechanisms of government regulation including demographic development of various countries and primarily Russia.