The "Economic Strategies" journal

2017




Building in the Interests of the State

#6. The Charm of Unattainable Peaks
Building in the Interests of the StateBuilding in the Interests of the StateBuilding in the Interests of the State

The need for large-scale modernization of the Russian electric power industry is out of doubt. What is being done in this respect in the Moscow region and what is planned for the nearest future – the chief engineer of JSC “Energocomplex” Alexander Shabash told about this.

Dividend Policy of State Corporations: Agency Conflict

#2. Alliance Great
Dividend Policy of State Corporations: Agency ConflictDividend Policy of State Corporations: Agency ConflictDividend Policy of State Corporations: Agency ConflictDividend Policy of State Corporations: Agency Conflict

The article examines how the dividend policy provokes or smoothes potential or open conflicts of interests of private investors, the state and the state corporations management. The slogan of today — “50% of profit — in dividends” — would not be so terrible for a private investor, if there were no problems with calculating this very profit. Should the profit be counted according to IFRS or RAS? What adjustments should be applied to accounting profit? Should the profit in the group of companies be calculated according to the consolidated reporting or to the reporting of the parent company? How to take into account the investment program: again lobbying or algorithm, mandatory for all? Besides, the article examines other issues of corporate governance: how to attract private investors to participate in the state corporations capital and how to ensure their interests; what should be the participation of private investors in corporate governance; what should be KPI of the dividend policy and dividend policy as a motivation factor for top management.

New State Planning Committee

#2. Alliance Great
New State Planning CommitteeNew State Planning CommitteeNew State Planning CommitteeNew State Planning Committee

In article mistakes of “the generalized government” on an interval of 2008 – 2016 are considered. It is claimed that they have system character owing to gross blunders in a design of an economic mechanism and incompetence of the head of the government. The conclusion is drawn that local measures it is impossible to change negative tendencies. Change of a control system of economy and creation of a new State Planning Committee is necessary. At the same time the market relations and the relations of property shouldn’t be broken. The designs regulating and planning development of the national economy in the economic developed countries exist for a long time and we need to use their experience only. Specially selected group of scientists, but not the government has to be engaged in reform.

Optimism with a Feeling of Growing Concern

#6. The Charm of Unattainable Peaks
Optimism with a Feeling of Growing ConcernOptimism with a Feeling of Growing ConcernOptimism with a Feeling of Growing Concern

Changing of a conjuncture index of “Economic strategy” (CIES) for January – July 2017 is considered. The contribution of indicators of supply and demand in CIES is estimated. The analysis of industrial production is carried out.

What Kind of Program Russia Needs, or a Little About Upcoming Reforms

#6. The Charm of Unattainable Peaks
What Kind of Program Russia Needs, or a Little About Upcoming ReformsWhat Kind of Program Russia Needs, or a Little About Upcoming ReformsWhat Kind of Program Russia Needs, or a Little About Upcoming Reforms

The article analyzes four programs of economic development of Russia, proposed by the Center for Strategic Research (CSR), headed by A.L. Kudrin, Institute of Growth Economics after P.A. Stolypin, created by “Stolypin Club” non-governmental organization of experts and by “Delovaya Rossiya” public organization headed by B.Y. Titov. In addition to these two programs, there is a program of the Ministry of Economic Development of Russia, established under the leadership of Minister M.S. Oreshkin, and the program “Principles of economic development strategy of Russia until 2030” of the Industry Committee under the Chamber of Commerce and Industry (CCI), headed by a well-known industrialist, organizer of the Moscow Economic Forum K.A. Babkin. The programs of the Russian Ministry of Economic Development and the CSR represent position of the liberal part of the country’s economic elite, including the monetary authorities. The program of Babkin’s CCI represents the industrial elite of the country, and the “Growth Program” by Boris Titov — position of the most active part of the population — Russian business. Based on the analysis and consideration of the proposed programs we will try to answer the question: what can the Russian population expect as a result of implementation of this or that program and the perspective they forecast?

Restoring Syrian Economy: Formation of Russian Infrastructural Nucleus in the Middle East Node of the World Strategic Projects

#1. Long-Lasting Choice
Restoring Syrian Economy: Formation of Russian Infrastructural Nucleus in the Middle East Node of the World Strategic ProjectsRestoring Syrian Economy: Formation of Russian Infrastructural Nucleus in the Middle East Node of the World Strategic ProjectsRestoring Syrian Economy: Formation of Russian Infrastructural Nucleus in the Middle East Node of the World Strategic ProjectsRestoring Syrian Economy: Formation of Russian Infrastructural Nucleus in the Middle East Node of the World Strategic Projects

Russian strategy in assisting the legitimate leadership of Syria in their fight against terrorist groups has shown the beginning of a qualitatively new stage: not only the USA, but also Russia can now restore law and order in the most important regions of the world. The next Russia’s step in gaining back its role and recognized status of superpower shall be organization of successful reconstruction of Syria’s economy, destroyed by the terrorist war, in conditions of critical limitations of the Syrian national resources for these purposes. This requires elaboration and implementation of Russia’s equivalent of the Marshall Plan. It is proposed to concentrate Russian economic aid and investments in those sectors of the Syrian infrastructure development, that are the most promising for the Russian and Syrian interests, with the key positioning of objects restored or created with Russian participation. The basic imperative here is adjusting in Syria a new model of the Russian opportunities realization in key sectors (nodes) of the global strategic projects implementation as the new format of the Middle East development.

Economics of Technological Development: Principles, Problems, Prospects

#6. The Charm of Unattainable Peaks
Economics of Technological Development: Principles, Problems, ProspectsEconomics of Technological Development: Principles, Problems, ProspectsEconomics of Technological Development: Principles, Problems, Prospects

The article dwells on the basic principles and problems of technological development that arise from the specifics of certain technologies. The choice of technological capabilities at the individual and firm level cannot comply solely with the investment logic of decision-making, as the technologies life cycle includes unpredictable effects that can significantly improve the return, which cannot be anticipated at the initial point of transition from one technological opportunity to another. Technologies are characterized by special properties, which have a decisive influence on the course of technological development. And these properties are not characteristic for other types of goods, this fact fundamentally distinguishes formation of demand for new technologies and affects the options for their use. Any technology consists of a kind of nucleus and variable periphery, is characterized by various kinds of animation effects and can also be an integral element of the combinatorial effect in the sphere of technologies. Owing to this “frame” that defines the structure of technology, it acts as a kind of a rule that determines the behavior of agents and conditions for developing the service infrastructure. Existing models of economic growth do not fully take into account the microeconomic institutional properties of technology, creating a pseudo-correct image of technologies’ impact on the system’s growth. In this regard, formation of the theory framework for the economic system processability will provide the necessary guidance in describing and investigating technological and institutional changes and economic growth, which are highly dependent on them. The aggregate productivity of factors also becomes to a significant degree a system parameter, dependent on overall technological applicability and institutional changes. The article describes the main characteristics of functioning of the fundamental research sector, which acts as the generator of all subsequent technological changes in a long range of economic development.

Macroeconomic Assessment of the CIS Countries Economic Development Trends

#1. Long-Lasting Choice
Macroeconomic Assessment of the CIS Countries Economic Development TrendsMacroeconomic Assessment of the CIS Countries Economic Development TrendsMacroeconomic Assessment of the CIS Countries Economic Development TrendsMacroeconomic Assessment of the CIS Countries Economic Development Trends

The article presents a macroeconomic analysis of the main trends of the CIS countries’ economic development for the past 25 years, the author carried out a comprehensive comparative analysis in terms of GDP, the level of income and investments, as well as evaluated the structure and sources of economic growth. The paper proposes and substantiates a number of classification criteria, on the basis of which the countries were ranked.

Peculiarities of Economic Policy While Forming an Integral Economic System

#6. The Charm of Unattainable Peaks
Peculiarities of Economic Policy While Forming an Integral Economic SystemPeculiarities of Economic Policy While Forming an Integral Economic SystemPeculiarities of Economic Policy While Forming an Integral Economic System

The authors believe that at present under currently existing structure of the economy and industrial relations forming selfsufficient and self-developing integral economic system (IES) is the main prerequisite for further efficient development of Russia as a sovereign social state. The main sufficient condition is an effective economic policy. Moreover, according to the authors, successful implementation of the economic policy without forming the IES is hardly probable. In this regard, the article considers a more detailed substantiation of the need to reform the economy and to form the IES on the basis of a systemic approach and outlines the main directions of economic policy during formation of an integral economic system with regard to foreign effective economic reforms.