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Finance and Credit
 

Reindustrialization of Russia: a realistic objective of the current decade or an unsupported declaration

Vol. 20, Iss. 47, DECEMBER 2014

Available online: 11 December 2014

Subject Heading: ISSUES ON ECONOMICS

JEL Classification: 

Pages: 56-64

Lutikov K.V. Tula Institute of Economics and Informatics, Tula, Russian Federation
LutikovK@mail.ru

The article states that in 2013 our country's top leadership for the first time voiced ambitious targets on reindustrialization of the Russian economy and creation of 25 million highly effective workplaces in the industry by 2020. In this context, the author has analyzed the condition of key resource spheres of the Russian economy (manpower, means of production, loan capital markets) from the perspective of implementing such ambitious plans and identified the problems related to practically all major factors of production. The author emphasizes that in the labor force sphere the country's high price level and competition from the so-called sphere of non-productive services provide a slim possibility to create competitive workplaces (as compared with the countries of Southeast Asia). Russia has practically no internal manufacture of hi-tech modern means of production; its machine-tool industry is in dilapidated condition due to decades of reforms. There is little hope for import within restricted financing and the current political situation as the main production of machinery is concentrated in Germany and Japan that support the USA in respect of sanctions against the Russian Federation. The author concludes that the financial sphere of the country has very small chances to attract long-term resources, which are required for economy modernization. The Russian banks are unable to issue large loans; the Russian securities market is extremely undiversified and is characterized by negative dynamics of share indexes. Under current conditions, there is a hope only for considerable reserves accumulated by the State while implementing the announced programs.

Keywords: volatility, market, public debt, staff deficit, diversification, long-term, resources, financing, State corporations, wear, fixed assets, investment, capitalization, reserve funds, reindustrialization, connected credits, insurance export agencies, structure, employment, technological companies

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