Poverty, Inequality, National Wealth: Empirical Analysis and Policy Implications

DOI: https://doi.org/10.33917/es-4.184.2022.70-81

The article is devoted to the study of poverty and inequality in the economic growth of the most developed countries, with a general focus on the formation of social policy consistent with the growth policy. The purpose of the study is to conduct a macroeconomic analysis of poverty, inequality and wealth in the G7 countries, China and Russia, with the ensuing substantiation of a social development strategy for the Russian economy. The methodology is made up of empirical analysis, as well as regression modeling, which make it possible to identify in a comparative way the connectivity of the dynamics of relevant indicators of social development  — the level of national poverty and wealth, the Gini coefficient and general inequality, growth rate, human development index. The result of the study is a precisely confirmed empirical relationship between the level of poverty and inequality for the countries considered, that is, a high value of one parameter corresponds to a high value of another. Consequently, poverty reduction may imply a reduction in inequality, and not only relative, but also absolute. In addition, it was found that for developed countries, high levels of poverty and inequality mean low values of the human development index. Social policy aimed at human development requires that its instruments be harmonized, including the necessary alignment with the current macroeconomic policies to stimulate growth. The magnitude of national wealth does not guarantee high growth rates, as well as low levels of inequality and poverty. A high level of inequality can accompany economic growth, having a positive effect on the growth rate, as for the Russian economy. In this regard, the current policy needs a reasonable selection of measures to stimulate growth and, at the same time, measures to reduce inequality, which can and should not be limited only to tax changes that require special confirmation of influence, but to institutional changes that regulate the creation and appropriation of income.

Источники:

1. Aganbegyan A.G. Kak preodolet’ stagnatsiyu i novyi krizis, obespechiv sotsial’no-ekonomicheskii rost [How to Overcome Stagnation and New Crisis, Providing Socio-Economic Growth]. Ekonomicheskie strategii, 2020, vol. 22, no 5, pp. 34–45, DOI: 10.33917/es-5.171.2020.34-45; no 6, pp. 6–19, DOI: 10.33917/es-6.172.2020.6-19.

2. Adzhimoglu D., Robinson Dzh.A. Pochemu odni strany bogatye, a drugie bednye. Proiskhozhdenie vlasti, protsvetaniya i nishchety [Why Some Countries are Rich and Others are Poor. The Origin of Power, Prosperity and Poverty]. Moscow, AST, 2016, 693 p.

3. Livshits V.N. Bednost’ i neravenstvo dokhodov naseleniya v Rossii i za rubezhom [Poverty and Inequality of the Population Incomes in Russia and Abroad]. Moscow, IE RAN, 2017, 52 p.

4. Stiglits Dzh. Tsena neravenstva. Chem rassloenie obshchestva grozit nashemu budushchemu? [The Cost of Inequality. How does Social Stratification Threaten Our Future?]. Moscow, Eksmo, 2015, 512 p.

The Dollar Collapse: Projecting Russia’s Actions in the Face of Global Economic Collapse

DOI: https://doi.org/10.33917/es-4.184.2022.56-69

The world has been scared by the collapse of the dollar many times. So far, fears of a global economic collapse, associated with the fate of the dollar, have been greatly exaggerated. However, there are no significant guarantees that this will not happen under certain conditions. Variants of the Atlantic-planned collapse of the dollar with its replacement by a synthetic financial instrument o r digital currency, somehow similar to bitcoin, are possible. COVID-19 has further revealed this problem. Russia needs to abandon its illusions and to be ready to ensure the economic stability of political regime in a special period as manifestation of the world monetary and economic war of all against all at a certain stage of the catastrophe, while waiting for the main actors to agree on joint actions. At the same time, among our geopolitical competing partners, there are a lot of those who want by all means to solve their economic and other problems at the expense of Russia. Therefore,  macroeconomic measures that Russia will have to take in case of a global dollar collapse are very likely to be more severe than the scenario that the authors formulated in this article.

Источники:

1. Makarov V.L., Bakhtizin A.R., Il’in N.I., Sushko E.D. Natsional’naya bezopasnost’ Rossii [National Security of Russia]. Ekonomicheskie strategii, 2020, no 5, pp. 6–23, available at: DOI: 10.33917/es-5.171.2020.6-23.

2. Ageev A.I., Loginov E.L. Coronavirus superstrategy: mirovaya proektsiya finansovoi modeli catastrophe just-in-time dlya vykhoda iz krizisa na novuyu geoekonomicheskuyu normal’nost’ [Coronavirus Superstrategy: Global Projection of the “Just-in-time Catastrophe’s” Financial Model for Overcoming the Crisis and Entering into a New Geo-Economic Normality]. Ekonomicheskie strategii, 2020, no 4, pp. 6–19, available at: DOI: 10.33917/es-4.170.2020.6-19.

3. Na poroge monetarnoi kul’minatsii [On the Brink of a Monetary Climax]. Livejournal, Spydell, 2021, August, 25, available at: https://spydell.livejournal.com/699002.html.

4. Fiskal’nyi ad [Fiscal Hell]. Livejournal, Spydell, 2021, April, 21, available at: https://spydell.livejournal.com/698446.html.

5. Ageev A.I., Loginov E.L. New Deal – 2008 — “novaya sdacha”. Bludnye ucheniki Franklina Ruzvel’ta [“New Deal” – 2008. Lost Followers of Franklin Roosevelt]. Ekonomicheskie strategii, 2009, no 2, pp. 30–37

6. Ageev A.I., Loginov E.L. Formirovanie novoi modeli valyutno-finansovoi politiki pri upravlenii natsional’nymi zolotovalyutnymi rezervami Rossii [Forming a New Model of Monetary Policy while Managing the National Foreign Exchange Reserves of Russia]. Ekonomicheskie strategii, 2016,

no 3, no 8–15.

7. Ageev A.I., Loginov E.L. Institutsional’nye mekhanizmy snizheniya mul’tifaktornykh riskov dlya valyutno-finansovoi sistemy Rossii i EAES v usloviyakh nelineinoi ekonomicheskoi dinamiki [Institutional Mechanisms for Reducing Multifactor Risks for Monetary-financial System of Russia and the EAEU in the Context of Nonlinear Economic Dynamics]. Monografiya. Moscow, Institut ekonomicheskikh strategii, 2017.

Epic Fail of BigTech Digital Transformation. Where is the Key to Level Up? [Epic Fail of Digital Transformation of Transnational Corporations. Where is the Key to a Level up Management?]

DOI: https://doi.org/10.33917/es-4.184.2022.46-55

World trend of the XXI century — Industry 4.0 and digital platforms. In 2014, General Electric (GE) partnered with Big Tech giants — AT&T, Cisco, IBM and Intel — to take control of the global manufacturing industry created the Industrial Internet Contributors Association (Industry IoT Consortium IIC). By 2021, the IIC included Microsoft, Hewlett-Packard, Accenture, Huawei, Bosch, EMC, SAP, Siemens, SAS and others. GE together with BigTech created the industrial cloud platform Predix, declaring it to be practically an “operating system” for factories, analogous to Android or iOS in the world of machines, the language of the industrial Internet.

However, in 2020 GE and Predix suffered a devastating fiasco.

The article provides an analysis of the root causes and problems, and formulates the requirements for digital platforms of industrial software. The author describes alternative solutions and new principles for implementing digital transformation of Industry 4.0 based on the closing technologies of digital genesis, graph-centric platforms, tools, models and systems of collective conscious scientifically based balanced management (industrial, corporate, social, state). Closing technologies offered by Russia have got an enormous social and political resource.

Oorfene Deuce’s Mistake, or Some Remarks on Country Image

DOI: https://doi.org/10.33917/es-4.184.2022.28-35

In the proposed material, the author draws attention to the fact that in the conditions of recent forced reputational losses for Russia, the problem of forming an attractive national image becomes extremely relevant. The author examines the position of Russia in the field of national image in comparison with a number of foreign states. Based on the approaches of the theoretical founder and leader of country branding, S. Anholt, the author reviews the state of affairs in various spheres of Russian life, and concludes that the most promising areas for the formation of a new positive image of Russia are the sphere of culture and the tourism industry.

Источники:

1. Nye J. Bound to Lead: The Changing Nature of American Power. New York, Basic Books, 1990.

2. Nye J. Soft Power: The Means to Success in World Politics. New York, Public Affairs Group, 2004.

3. Russkie v Amerike. Kniga sudeb [Russians in America. Book of Fates].Comp. V. Levin. Minsk, Smolensk, 1996, p. 190.

4. Kotler Ph., Haider D.H., Rein I.J. Marketing Places: Attracting Investment, Industry, and Tourism to Cities, States and Nations. Free Press, 1993.

5. Ward S.V., Ward S. Selling Places: The Marketing and Promotion of Towns and Cities. 1850–2000. Taylor & Francis, 1998.

6. Anholt S. Places: Identity, Image and Reputation. London, Palgrave Macmillan, 2009.

7. Germany maintains top “nation brand” ranking, Canada and Japan overtake the UK to round out the top three. Ipsos, available at: https://www.ipsos.com/en/nation-brands-index-2021.

8. The Good Country Index, available at: https://index.goodcountry.org/

9. The Good Country Equation: How We Can Repair the World in One Generation. Berrett-Koehler, 2020.

10. Saimon Ankhol’t: Problema Rossii v tom, chto ee schitayut obuzoi [Simon Anholt: Russia’s Problem is That it is Considered a Burden]. SNOB, available at: https://snob.ru/selected/entry/56182/

11. Otchet o rezul’tatakh ekspertno-analiticheskogo meropriyatiya “Opredelenie osnovnykh prichin, sderzhivayushchikh nauchnoe razvitie v Rossiiskoi Federatsii: otsenka nauchnoi infrastruktury, dostatochnost’ motivatsionnykh mer, obespechenie privlekatel’nosti raboty vedushchikh uchenykh” [Report on Results of the Expert-analytical Event “Identification of the Main Reasons Hindering Scientific Development in the Russian Federation: Assessment of the Scientific Infrastructure, Sufficiency of Motivational Measures, Provision of Attractiveness of the Leading Scientists’ Work”]. FGOSVO, available at:  https://fgosvo.ru/uploadfiles/Work_materials_disscusion/sp.pdf.

12. Muzychuk V.Yu. Finansirovanie kul’tury v Rossii: shag vpered i dva nazad [Financing Culture in Russia: One Step Forward and Two Steps Back]. Zhurnal NEA, 2019, no 1(41), pp. 208–215.

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14. Reiting turisticheskikh stran [Rating of Tourist Countries]. TouristicLog, available at: http://www.alexeytour.ru/strany_mira_tour-rating.html.

On Sanctions and the Exchange Rate

DOI: https://doi.org/10.33917/es-4.184.2022.17-21

The article emphasizes that freezing of Russian gold and foreign exchange reserves was previously accurately predicted by Russian experts. Attention is drawn to the fact that weakening of the ruble was one of the goals of the sanctions impact on the Russian economy that Western countries were bearing in mind. It is obvious that the exact opposite — preventing its depreciation and turning the ruble into a stable strong currency — is an anti-sanction measure. With high dependence of the Russian economy on imports, as well as in the situation when it is necessary to find alternative ways for imports (primarily for investment), which will lead to their higher prices with corresponding consequences, an excessive exchange rate depreciation may adversely affect economic development, especially in a long term. In addition, extremely important is ensuring stability of the exchange rate. It is concluded that stable and non-depreciating ruble will form the basis for consistent development of business and expand the possibilities for using the ruble in foreign trade settlements as well. It is particularly relevant in the context of restrictions on the use of leading currencies in foreign trade.

Источники:

 

1. Ershov M.V. Sanktsii protiv RF: mekhanizmy neitralizatsii [Sanctions Against the Russian Federation: Neutralization Mechanisms]. Ekonomicheskie strategii, 2017, no 7, pp. 46–51.

2. Baiden ogovorilsya, zayaviv, chto dollar stoit 200 rublei [Biden Made a Slip of the Tongue Saying That the Dollar is Worth 200 Rubles]. RIA Novosti, 2022, March, 26, available at: https://ria.ru/20220326/bayden-1780271172.html.

3. Sanktsii SShA protiv TsB i Minfina perekroyut dostup k rezervam dlya podderzhki rublya [US Sanctions Against the Central Bank and the Ministry of Finance will Block Access to Reserves for Supporting the Ruble]. Interfaks, 2022, February, 28, available at: https://www.interfax.ru/business/825191.

4. Bank Rossii. O chem govoryat trendy [Bank of Russia. What are the Trends Saying?]. BCS Express, 2022, April, 22, available at: https://bcs-express.ru/novosti-i-analitika/bank-rossii-o-chem-govoriat-trendy.

5. SMI: EK zayavila, chto ukaz ob oplate gaza v rublyakh narushaet sanktsii ES [Media: EC Said That the Decree on Gas Payments in Rubles Violates EU Sanctions]. RIA Novosti, 2022, April, 14, available at: https://ria.ru/20220414/gaz-1783434893.html.

6. Russia’s ruble is the strongest currency in the world this year. CBS NEWS, 2022, May, 27, available at: https://www.cbsnews.com/news/russia-rublecurrency-2022/

7. Ershov M.V. Valyutnaya politika kak faktor natsional’noi bezopasnosti [Monetary Policy as National Security Factor]. Ekonomicheskie strategii, 2015, no 4, pp. 20–29.

8. Washington Times. 2015, April, 30.

9. Ershov M.V. Ekonomicheskii suverenitet Rossii v global’noi ekonomike [Russia’s Economic Sovereignty in the Global Economy]. Moscow, Ekonomika, 2005, 280 p.

10. BIS. Quarterly Review. International banking and financial market developments. June 2022.

Modeling the Consequences of a Nuclear Strike

DOI: https://doi.org/10.33917/es-4.184.2022.6-16

The risks of increasing international tension have sharply exacerbated the possibility of a nuclear conflict. The main geopolitical players in the international arena have actually recognized the possibility and even expediency of using nuclear weapons. In this context, the need to simulate the consequences of a nuclear strike in order to prepare for emergencies of a critical nature has become extremely urgent. The present article analyzes foreign experience of using digital simulators to this end. The authors outline Russian views on applying agent-based simulation methods for this purpose in the analysis of non-military (civilian) aspects of a nuclear blow effects.

Источники:

 

1. Grabchak E.P., Loginov E.L. Podgotovka sistemy gosudarstvennogo upravleniya Rossii k sverkhkriticheskim situatsiyam prirodnogo i tekhnogennogo kharaktera [Preparing the Public Administration System of Russia for Supercritical Situations of Natural and Man-made Nature]. Problemy upravleniya bezopasnost’yu slozhnykh sistem: Materialy XXIX Mezhdunarodnoi nauchno-prakticheskoi konferentsii. Moskva, 15 dekabrya 2021 g. [Problems of Safety Management of Complex Systems: Proceedings of the XXIX International Scientific-practical Conference. Moscow, December 15, 2021]. Moscow, Institut problem upravleniya im. V.A. Trapeznikova RAN, pp. 99–103.

2. Ageev A.I., Bochkarev O.I., Grabchak E.P., Loginov E.L. Setetsentricheskaya sistema povyshennoi zhivuchesti upravleniya energetikoi Rossii v slozhnoprognoziruemykh kriticheskikh usloviyakh [Net-Centric System of Elevated Survivability of Energy Management in Russia Under Difficult-to-predict Critical Conditions]. Ekonomicheskie strategii, 2021, vol. 23, no 3 (177), pp. 6–17, available at: DOI: https://doi.org/10.33917/es-3.177.2021.6-17.

3. Moiseev N.N., Aleksandrov V.V., Tarko A.M. Chelovek i biosfera: Opyt sistemnogo analiza i eksperimenty s modelyami [Man and the Biosphere: The Experience of System Analysis and Experiments with Models]. Moscow, Nauka, 1985, 271 p.

4. Yadernaya zima i ee komp’yuternoe modelirovanie v 80-kh [Nuclear Winter and Its Computer Simulation in the 80s]. Khabr, 2022, May, 28, available at: https://habr.com/ru/company/ruvds/blog/668256/

5. Turco R.P., Toon O.B., Ackerman T.P., Pollack J.B., Sagan C. Nuclear winter: Global consequences of multiple nuclear explosions, 1984.

6. Kokoshin A.A., Arbatov A.G., Vasil’ev A.A. Yadernoe oruzhie i strategicheskaya stabil’nost’ (stat’ya pervaya) [Nuclear Weapons and Strategic Stability (Article One)]. SShA: Ekonomika, politika, ideologiya, 1987, no 9, p. 3.

7. John M. Gates. The U.S. Army and Irregular Warfare. The College of Wooster Wooster, Ohio, available at: https://discover.wooster.edu/jgates/files/2011/11/fullbook.pdf.

8. Starr S. Deadly Climate Change From Nuclear War: A threat to human existence, available at: https://www.armscontrol.ru/pubs/en/deadly-climate-changefromnuclear-war.pdf.

9. Velikhov E., Kokoshin A. Yadernoe oruzhie i dilemmy mezhdunarodnoi bezopasnosti [Nuclear Weapons and International Security Dilemmas]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 1985, no 4, p. 20.

Investment attractiveness of Saint Petersburg as its competitive advantage

DOI: 10.33917/mic-3.104.2022.94-101

The purpose of the article is determined by the need to identify the types of activities in which investment will provide an intensive path of development of St. Petersburg. The article analyzes the competitive advantages of the investment attractiveness of St. Petersburg. The analysis is based on the provisions of the Strategy of socio-economic development of St. Petersburg for the period up to 2035 and assessments of national ratings of regions. The author’s definition of the investment attractiveness of the region is given, which determine the competitive advantages of the region as an opportunity to invest in activities that provide an intensive path of development of the region.

References:

1. Galiullin I.R. Evaluation of the synergy effect in the study of the competitive market in the service sector on the example of the DIY sector / I.R. Galiullin, I.V. Zhukovskaya. Microeconomics. 2019;2:44-49. (In Russ.).

2. Zhukovskaya I.V. The specifics of the study of the service market on the example of the Republic of Tatarstan. Microeconomics. 2020;5:93-98. (In Russ.).

3. Official information of the Federal Agency for Tourism. URL: tourism.gov.ru

4. Ragimkhanov A.V. Systematization of scientific approaches to the study of the competitiveness of services: from theory to practice. / A.V. Ragimkhanov, I.V. Zhukovskaya. Microeconomics. 2022;1:75-78. (In Russ.).

Synergetic approach in assessing the competitiveness of tourism service producers on the example of the Republic of Tatarstan

DOI: 10.33917/mic-3.104.2022.87-93

The scientific article substantiates the conceptual model of the net present synergy effect from the merger of companies on the example of regional tour operators of the Republic of Tatarstan. It is also proposed to carry out the process of combining travel companies according to the «monoformat» type into the «multiformat» variation, where the main types of tourist services are weekend tours, excursion family tours and youth tours.

References:

1. Galiullin I.R. Evaluation of the synergy effect in the study of the competitive market in the service sector on the example of the DIY sector / I.R. Galiullin, I.V. Zhukovskaya. Microeconomics. 2019;2:44-49. (In Russ.).

2. Zhukovskaya I.V. The specifics of the study of the service market on the example of the Republic of Tatarstan. Microeconomics. 2020;5:93-98. (In Russ.).

3. Official information of the Federal Agency for Tourism. URL: tourism.gov.ru

4. Ragimkhanov A.V. Systematization of scientific approaches to the study of the competitiveness of services: from theory to practice. / A.V. Ragimkhanov, I.V. Zhukovskaya. Microeconomics. 2022;1:75-78. (In Russ.).

Regional franchising center is a new model for the development of franchising in regions

DOI: 10.33917/mic-3.104.2022.75-86

Franchising has become popular only in recent decades. This form of entrepreneurship is increasingly used in various sectors of the economy, especially in retail and catering. According to official data, more than 70% of this type of entrepreneurial activity falls on regional franchising. The article analyzes the features of the development of regional franchising, evaluates the initiatives of individual regions to introduce franchising. A unified concept of the creation and functioning of a regional franchising center is proposed, the goals and objectives of its creation are determined, which are mainly aimed at systematizing and synchronizing work on business development in the region.

References:

1.        Abdurakhmonova T.D. Prospects for the development of a franchise agreement in the CIS countries. Journal «Legal Bulletin». 2020;4 (4): 44-48.

2.       Mikhailova L. Prospects for the development of new forms of franchising. WORLD: Modernization. Innovation. Development. 2017;4:585-591.

3.       Ryzhykh A. I., Bocharova V. G. Systematic use of marketing tools in franchising in the context of digitalization. Journal «Economics of Sustainable Development». 2021;4(48):161-164.

4.       Solovova L. Free franchising as an alternative to classical franchising. WORLD: Modernization. Innovation. Development. 2016;7((4 (28)):71-75.

5.       Shakhova M., Mikhailova L. Modern trends in franchising. Scientific Review. 2017;20:119-124.

6.       Yuritsin A.A. Franchising and commercial concession agreement. Results and prospects of legal regulation. Yustitsinform Publishing House, 2018. 264 p.

7.       Alon I., Lattemann C. Tchibo Goes Global: Implementing a Hybrid Franchising Strategy at Germany’s Leading Coffee Retailer. Global Business and Organizational Excellence. 2016;2:18-30.

8.       Fredriks J.W. S. et al. Modeling a technology push by using hybrid franchising // International Journal of Entrepreneurship and Small Business. 2014;1:64-88.

9.       Terry A., Di Lernia C. Quasi-Franchising: A New Model for Strategic Business Cooperation’ in Network Governance: Alliances, Cooperatives and Franchise Chains, ed. Ehrmann T., Windsperger J., Cliquet G., Hendrikse G. Physica-Verlag, Berlin, Germany. 2013. pp. 26-86.

10.    Catering franchises. URL: https://businessmens.ru/franchise/food, https://businessmens.ru/franchise/rating

11.    Green House coffee shop franchise. URL: https://grnhs.biz

12.    Maxim Confectionery Franchise, March 17, 2017. URL: https://maxim-rest.ru/novosti/konditerii-maksim/franshiza-konditerii-maksim

13.    Franchising portal. URL: https://franchiza.ru

14.    Business catalog. URL: https://businessmens.ru/franchise/jumanji-1906

15.    Department of Consumer Market and Tourism of the Tyumen Region, 2013. The Tyumen Region plans to develop regional franchising, April 17, 2013. URL: https://admtyumen.ru/ogv_ru/finance/consumer_market/news/more.htm?id=11021727@egNews