Problem
In the development of one of the backward areas of Bergengocy, the policy was based on the assumptions of the export-base model. As a result, the basic (export) sectors were supported in the region, with the hope that through the local multiplier effect of export revenues and through the input-output relations between exports and local sectors, it will largely improve the regional GDP and long-term unemployment. On the other hand, the experience of applying the policy is that, apart from the export sector, the region is not really stimulated and a strong multiplier effect is not present in the non-basic activities either. What could be the reason for the ineffectiveness of the policy? What alternative policy interventions would you recommend to promote the development of the region?