SOCIAL SCIENTIST The region must be represented in the federal governmental institutions, which must include a permanent body to support development and control the region. The state should guarantee to the region stability of administrative system, action of launched economic mechanisms, political status, etc. To fulfil administration functions, the region administrative body should possess a system of powers including rights to use lands, water, minerals, and other natural resources, buildings, infrastructure objects, etc. Thus, the positive trend of development will be provided by implementing strategy "from self-governing to economic self-dependence (completely or mostly self-supporting economy)." Organisation of common administration system and its implementation are complicated by different transport dependence of the North and South Kuril Islands (on Kamchatka peninsula and Sakhalin Island, respectively), which are separated by the great distance (while transport connections between these parts are practically absent). However, there are some hopeful precedents, i.e., the region is represented in the federal legislative body (deputy from the Sakhalin Oblast in the State Duma), Interdepartmental Commission responsible for support of the socio-economic development of the islands exists in the system of executive bodies, Mayor Council of three administrative rayons (sections) of the Kuril Islands has also been established and acts. Demographic policy, human factor. The experience of economic development of a local area (islands in particular) shows that formation of self-supporting and especially self-developing acting economy is impossible without formation of a stable human community (socium) with balanced sex and age structure that is able to reproduce itself and reproduce "critical mass" of manpower. People must feel themselves masters of their land and be interested in its development. They should realise themselves as integrated part of it, understand and share goals of development, favour the achievement by their activities. Along with such kind of "local identity", it is important to intensify "human capital" by raising the level of people's education and making them proficient in new technologies and professions. Specific state policy to increase population of the Kuril Islands should be worked out (including the programme to attract new settlers). The population must be sure that Russian sovereignty will be kept over all the islands. One of the factors to keep active young people on the Kuril Islands and attract them could be exemption