On Economic Sanctions, Okun's Misery Index, Male Premature Mortality, and Possible Directions of Small Enterprise Development in Russia
The article studies the possible measures to increase the sustainability of Russia’ economic development on the background of current hostilities with the West. I argue that the development of small enterprises can assist to overcome the worst consequences of sanctions—the fall in male life expectancy as the analysis demonstrated a strong relationship between the share of small and medium businesses (SMEs) in the national economy and the life expectance of males. Several suggestions on how to increase the share of SMEs in the Russian economy are proposed.
The paper is focused on assessing the risk factors for Russian manufacturing firms posed by sanctions imposed on Russia by the EU, US, and other countries in 2014. While there is an extensive literature assessing the successes and failures of international sanctions on the economies of both those imposing and targeted by sanctions on a macroeconomic level, we are more interested in trying to understand the corporate response – i.e. which firms evaluate the introduction and increasing scale of economic sanctions as a threat to their corporate strategy, and their possible reactions aimed at adjusting to a changing environment due to the geopolitical shock. Our research, based on a recent survey of manufacturing companies, provides evidence that over the last decade Russian manufacturing firms have become much more integrated into the global economy than is commonly assumed, through foreign direct investment, foreign trade (including imports of both technological equipment and raw materials and components), international partnerships, and by extensively supplying foreign companies that operate in Russia. Considering the self-selection effect of the top-performing firms in terms of foreign trade, we can state that sanctions could prove most harmful not only for the targeted firms, but for the entire population of better-performing and globalized firms involved in foreign trade with the EU and Ukraine. Thus, the impact of the sanctions on the prospects of the Russian manufacturing sector may be very strong over the medium-to-long term.
A complex analysis of the social and economic consequences of China, Ukraine, and Russia’s accession to the WTO was used to identify recommendations for the most successful adaptation of Russia to WTO standards. Russia tries to adapt to the WTO standards. The study focuses on the Chinese experience. China’s membership in the WTO is extremely useful for Russia from due to China’s positive influence on the development of its economy , as there has been expansion in the industrial and production sectors of its economy and promotion of goods in world markets, as well as an opportunity to use the WTO’s legal instruments for national domestic market protection.
China’s positive experience as a WTO member somehow contrasts with the described experience of Ukraine. An assessment of Ukraine’s versatile policy and its association with the EU allowed concluded that it is impossible for Ukraine to follow two ways at once: that of Eurasian integration and that of European integration.
Recently, the aggravated trade, economic and political confrontations between Russia and its American and European partners spurred radical changes in Russia’s economic strategy. Areas of such transformations can be determined by understanding both the positive and negative experiences of Russia’s old trade partners, namely China and Ukraine as they joined the world economic environment.
The article contains the analysis of the impact of information and communication technologies as well as mobile technologies for the conduction of small and medium business in the emerging countries. Special approach is suggested for the development of the concept of business-processes management on small and medium enterprises.
Scott L. Newbert, PhD, is associate professor of management, Harry Halloran Emerging Scholar in Social Entrepreneurship, and Anne Quinn Welsh Faculty Fellow in Honors at Villanova University. His research on the socioeconomic impacts of entrepreneurial activity and valuation strategies for small firms has been published in numerous journals, including Strategic Organization, Small Business Economics, and Entrepreneurship Theory and Practice. He received his doctorate in strategic management and entrepreneurship from Rutgers University.
The article summarizes the data from a few tens of in-depth interviews with entrepreneurs – representatives of a small business from six rural districts of the North-East of Kostroma region. The purpose of the interview was to discover expectations and suggestions from entrepreneurs to the local and state government. Interview data reveal the profound contradictions between the business and the government, some of which are hidden from the external observer. These contradictions are based not only on results of the local authority actions, but also on the specific current status of local government that makes it impossible to effectively interact with the business. On the other hand, the development of local businesses has led to a peculiar configuration of the business community, also making it difficult to communicate with the authorities. Particular feature of Middle Russian North business, especially in the highly subsidized Kostroma region, is its total focus on the use of natural resources, almost exclusively forest. Single-industry raw material specialization of the entrepreneurship as well as very narrow and underdeveloped segment of service makes entrepreneurs completely dependent on arbitrariness of local authorities. This, however, does not protect them from the territorial invasions and capture of the market by big outside mining and network companies. As a result of such two-sided attack local business is trying to get protection from the local government that leads to inadmissible merging of business and government and monopolizing of business in almost every rural district. Direct consequences of such a merging are government inefficiency, lack of incentives for business development, and stagnation. Some “evolutionary stable strategy” has been developed, that does not allow winning any of the actors yet saving them from loses in competition with the outside players. Understanding of the inefficiency and dead-end of such an interaction by some entrepreneurs forces them to raise claims to local authority. Interviews analyses resulted in the list of complaints and suggestions on how to optimize an interaction between the local business and local authorities.
The book consists of several units covering various aspects of business organisation. The main economic systems, the role of an enterprise as a basic unit of production, the characteristics of small-scale and large-scale business are considered. Corporation as a form of business organisation with its structure, management and financial aspects of operating is analysed.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.
We address the external effects on public sector efficiency measures acquired using Data Envelopment Analysis. We use the health care system in Russian regions in 2011 to evaluate modern approaches to accounting for external effects. We propose a promising method of correcting DEA efficiency measures. Despite the multiple advantages DEA offers, the usage of this approach carries with it a number of methodological difficulties. Accounting for multiple factors of efficiency calls for more complex methods, among which the most promising are DMU clustering and calculating local production possibility frontiers. Using regression models for estimate correction requires further study due to possible systematic errors during estimation. A mixture of data correction and DMU clustering together with multi-stage DEA seems most promising at the moment. Analyzing several stages of transforming society’s resources into social welfare will allow for picking out the weak points in a state agency’s work.