Economic Growth of Rapidly Changing Economy. Development Strategy

#6. Forecasts and Results
Economic Growth of Rapidly Changing Economy. Development Strategy

The article dwells on the problem of economic growth organization in the world economic system, as well as the question of implementing the catch-up and outstripping development strategies for countries lagging behind in development. The author gives a simple model of the system economic growth and demonstrates the major factors determining the development strategy. The author substantiates an adequate strategy of advanced development in Russia, taking into account global changes, structural changes, technological regimes (trajectories) of development, carries out an empirical analysis of economic growth results from 1961 to 2012 inclusive. The idea of the factor productivity evaluation is fundamental in the framework of modern theories of economic growth. Yet the structural parameters of the economic system, institutions and technological changes, though the latter are reflected in the changing parameters of the production function, practically are not taken into account in the framework of the known approaches. However, the ratio of structural elements, on the one hand, defines the future value of an aggregated factors productivity, and on the other — has a strong effect on the rate of economic growth and on the mode of its innovative dynamics. Introduction of the economic system’s structural parameters into growth models with the possibility to evaluate such regimes in terms of interaction of old and new combinations represents a significant step in evolution of the economic growth (development) theory. It allows to form a policy of stimulating economic growth based on structural relations and ties, identified for this economic system. It is most convenient in obtaining such models to take advantage of logistics functions, representing a resource modification for the old and the new combinations within the economic system. Result of the economy development depends on the initial conditions, as well as on the institutional parameters of changes in the resource borrowing rates in favor of a new combination and creating its proper resource. Resource formalization in a model is carried out through the idea of investing into new and old combinations.

Specific Incentives for Attracting Foreign Direct Investments in Russia

#6. Forecasts and Results
Specific Incentives for Attracting Foreign Direct Investments in Russia

Foreign direct investment is steadily growing in the world, decreasing in the crisis years, but always restoring its flow. In 25-30 years its geography has expanded considerably. The number of countries and territories making investments abroad has doubled since the 1980s. The circle of donor-countries and the countries-recipients of foreign direct investment is expanding. Unlike most countries of the Central and Eastern Europe, such major emerging markets like China, Brazil, India, Russia has not yet created favorable investment climate, which implies stable political and macroeconomic environment, as well as protection of property rights. In addition to basic measures, aimed at creating attractive conditions for foreign direct investment, such as tax holidays, tax incentives, the use of the guarantee system, specific incentives to attract foreign direct investment have been successfully applied in different countries. Specific incentives for attracting foreign direct investment, such as creating areas of advanced development, where special legal regime for entrepreneurial activities is established, promotion of Russian companies in the world markets, export promotion are highly effective tools in enhancing the competitiveness of Russia in the global foreign direct investment market.

Dogmatism and Scientific Revolution in the Economy

#5. To Understand. To Prevent. To Overcome
Dogmatism and Scientific Revolution in the Economy

Economy as an eternally living system does not stabilize at the equilibrium point, but passing through a structural crisis and renewing its technological and institutional framework, enters the new trajectory of growth. That is why, reduction of economic reality to search for equilibrium, applied by market fundamentalists, resembles attempts of medieval physiologists to disclose the mystery of life with the help of pathologic anatomy. Author of the article shows that neoclassical positive analysis, revolving around the doctrine of market equilibrium, is essentially a pseudo-scientific religion, substantiating the sacred right of private property. The conclusion is made that it is necessary to stop paying attention to the market fundamentalist demagogy and to pass to pragmatic economic policy in national interests — to implement a program of growth proposed by Stolypin club.

Reduction of Investments — the Death of the Economy, Investment Growth — its Salvation

#5. To Understand. To Prevent. To Overcome
Reduction of Investments — the Death of the Economy, Investment Growth — its Salvation

The Central Bank’s fight against inflation is doing more harm than good, because its method of reducing liquidity creates difficulties in crediting the economy, increases the key rate, the cost of money, which, of course, pulls down the economy.

Global Economy in a Transitional State

#5. To Understand. To Prevent. To Overcome
Global Economy in a Transitional State

The article draws parallels between the state of the present-day global economy and the Soviet economy in the 1980s. It is assumed that in both cases the diagnosis can be similar and is defined as the socio-economic stagnation. Its main features are: excessive and increasingly growing accumulation of commitments in economic, social, institutional and political spheres as well as lagging and eventually reducing in the course of time possibilities of their implementation. Accordingly, transition to a new model of the global economy may be associated with the same stages, which are known from domestic economic history — crisis, transition period, slow recovery. It is assumed that consumption boom unfolding in Asian countries, which is based on consumer crediting of the population, is becoming a key driver of transition from stagnation to crisis. The author analyses possible consequences for the global economy of a consumer society creation in Asian countries, especially in China. The basic painful consequences of competition between two models of consumer society are defined. The author formulates new global challenges with regard to such consequences and experience of the transition period in our country. It is proposed to take into account these challenges in developing long-term strategies for the development of certain countries or groups of countries, including Russia.

Reduction of Investments — the Death of the Economy, Investment Growth — its Salvation

#4. Window of Opportunities
Reduction of Investments — the Death of the Economy, Investment Growth — its Salvation

Particularly hampered is the economic growth without investment in industries with obsolete fixed assets where it is always necessary to replace or overhaul equipment and units, where it is necessary to create new capacities for expanding production and mastering new, best-selling products.

IBM as a Mirror of the Global IT Evolution and Advent of the Second Information Revolution. Hidden Intellectual Springs, Possible Technological and Humanitarian Brakes, Expected Implications

#4. Window of Opportunities
IBM as a Mirror of the Global IT Evolution and Advent of the Second Information Revolution. Hidden Intellectual Springs, Possible Technological and Humanitarian Brakes, Expected Implications

On the example of IBM strategies it is possible to look at the information revolution and to understand what drives the modern IT and what future these technologies are preparing for us. The article identifies relationships and the impact of the latest military developments on the IT development vector. One of the main conclusions: the information society should be seen metaphorically as an iceberg. First of all, we see only the tip of an iceberg, and the submarine part remains outside our focus area. Secondly, isn’t the modern society a sort of “Titanic” rushing toward the iceberg? But not everything is so bad. In principle there are possibilities to control the development movement and to choose the own course in order not to endure catastrophe from a collision with an underwater part of the iceberg. There is one way out, and it is evident in many respects. It is necessary to use the self-preservation and survival instinct. And our actions should be dominated by strategic thinking and foresight. Otherwise, society will get the shackles of the “digital slavery” from information owners of the world. One must not lose mind, sovereignty and the right to think. One should not go on about the puppeteers and deceivers — who will outwit or replay someone. Now decisive became the factor — who will strongly, elastically and with a margin do a great deal of thinking.

Economic Growth of Rapidly Changing Economy. Development Strategy

#4. Window of Opportunities
Economic Growth of Rapidly Changing Economy. Development Strategy

The article dwells on the problem of economic growth organization in the world economic system, as well as the question of implementing the catch-up and outstripping development strategies for countries lagging behind in development. The author gives a simple model of the system economic growth and demonstrates the major factors determining the development strategy. The author substantiates an adequate strategy of advanced development in Russia, taking into account global changes, structural changes, technological regimes (trajectories) of development, carries out an empirical analysis of economic growth results from 1961 to 2012 inclusive. The idea of the factor productivity evaluation is fundamental in the framework of modern theories of economic growth. Yet the structural parameters of the economic system, institutions and technological changes, though the latter are reflected in the changing parameters of the production function, practically are not taken into account in the framework of the known approaches. However, the ratio of structural elements, on the one hand, defines the future value of an aggregated factors productivity, and on the other — has a strong effect on the rate of economic growth and on the mode of its innovative dynamics. Introduction of the economic system’s structural parameters into growth models with the possibility to evaluate such regimes in terms of interaction of old and new combinations represents a significant step in evolution of the economic growth (development) theory. It allows to form a policy of stimulating economic growth based on structural relations and ties, identified for this economic system. It is most convenient in obtaining such models to take advantage of logistics functions, representing a resource modification for the old and the new combinations within the economic system. Result of the economy development depends on the initial conditions, as well as on the institutional parameters of changes in the resource borrowing rates in favor of a new combination and creating its proper resource. Resource formalization in a model is carried out through the idea of investing into new and old combinations.

System Designs of the Global Oil and Oil Products Market

#4. Window of Opportunities
System Designs of the Global Oil and Oil Products Market

The paper examines in detail the system designs of the global oil and oil products market based on accomplishing a series of preconditions for a global competition compliance (for example, by such indicator as the price-quality of oil and oil products), to which the following compliances can be attributed: the existence of the great number of independent oil producer, as well as producers, suppliers and consumers of petroleum products, the possibility of a free trade of the productive forces (logistics) and oil products produced with the help of such forces. The productive forces include the broad paradigm of activities related not only to mining and processing of oil resources, but also to their transportation through pipelines and marine large vessels. It is also necessary to include here the independence of business entities; uniformity, comparability of oil and oil products; availability of access to objective information about the market.

Towards Investments

#4. Window of Opportunities
Towards Investments

One of the pledges for investment attractiveness of any country or region is the accessibility of its electric grid infrastructure. Recognizing this, the Moscow government and the electric grid companies of the capital are working hard to simplify the procedure of technological connection to electric grids. In the ranking Doing Business – 2016 Russia has climbed 11 steps – from 62th to 51st place out of 183 countries. At the same time, in terms of simplifying the procedure of connection to the grid, our country set a record, having dashed directly through 114 steps. About realization of the program for improving accessibility of energy infrastructure in Moscow we talked to a representative of one of the largest power grid companies of the capital – Deputy Director General in sales of JSC “United Energy Company” Irina Silaeva.