• O. Buklemishev — Fiscal Stimulus and Russian Sovereign Funds

• T. Kuznetsova, V. Roud — Competition, Innovation and Strategy: Empirical Evidence from Russian Enterprises
• L. Gitelman, B. Ratnikov — Lessons of the Energy Reform: Illusions, Miscalculations, Prospects
• L. Smirnykh — Agency Work in Russia: To Be or Not To Be? (Experience of Russian Enterprises)
• I. Buzdalov — On Intensification of Russian Agriculture

Abstracts

The standard approach to policy making and advice in economics implicitly or explicitly ignores politics and political economy and maintains that if possible, any market failure should be rapidly removed. This essay explains why this conclusion may be incorrect; because it ignores politics, this approach is oblivious to the impact of the removal of market failures on future political equilibria and economic efficiency, which can be deleterious. We first outline a simple framework for the study of the impact of current economic policies on future political equilibria —and indirectly on future economic outcomes. We then illustrate the mechanisms through which such impacts might operate using a series of examples. The main message is that sound economic policy should be based on a careful analysis of political economy and should factor in its influence on future political equilibria.

JEL classification: A11, D72, E60.
Keywords: economic policy, market failures, rent-seeking, elites, violence, economic development.

The fall of 2013 marked 5 years since Lehman Brothers went broke — the event, which gave rise to the intense phase of the recent financial crisis. The regulators had to use unprecedented measures to support and stabilize their economies. Even today they are forced to do large-scale and long-term, often super-long (for 30—40 years) money creation; they keep interest rates at minimum (often below inflation) and sometimes announce the level of rates in advance. The growth rates, however, remain low, previous problems are not eliminated and new riks become more tangible. Is durable long-term growth possible in such environment?

JEL classification: E44, E51, E58, F34, G21.
Keywords: anti-crisis measures, long money, monetary policy, liquidity.

The article considers various aspects of three areas of American socio-economic life, which are the most important for understanding in today’s world. They are the middle class and social inequality, fixed investments, budget and debt problems. The studies of the American economy and social innovation processes are really important for the world economy. Economic development of the country, whose GDP is a quarter of the planet’s, has a huge direct impact on the economy and policy of the rest of the world. These trends and processes have a significant demonstration effect, they are used as a source of argument in decision-making or policy development in other countries.

JEL classification: I3, O10, E21, E60, E64.
Keywords: USA, socio-economic problems, middle class, social inequality, finance, economy, politics, accumulation, income.

The paper analyzes the current options of fiscal stimulus in the Russian economy. It is asserted that due to economic and institutional factors the increase in public expenditures will not be efficient and the appropriate resource base is limited. The contradictions of the budget policy based on channeling extra oil and gas revenues into the sovereign funds to be invested abroad, are considered. It is concluded that this policy which has been carried out in Russia during the last ten years is experiencing a crisis and needs a revision.

JEL classification: E62, H12, H33, H63.
Keywords: fiscal stimulus, sovereign funds, budget policy, public expenditures.

This paper provides empirical evidence on the relation of innovation and competition, as well as insights on the role of innovation within the competitive strategies of Russian enterprises. The survey of roughly 1000 enterprises (executed as a part of the European Manufacturing Survey) from the manufacturing sector and ICT reveals the marginal role of innovation in the competitive strategies. Companies largely do not consider innovation as a legitimate strategy for business success. The paper outlines specific sectoral patterns and presents the general discussion of the inefficiency of the Russian national innovation system.

JEL classification: D40, D43, L10, L16, L21, L23, O31, O32.
Keywords: innovation, competition, performance, competitive advantages, strategy, Russian innovation system, surveys, manufacturing.

The article looks at the problems of the power sector reform based on the development of market relations in the industry. Factors that influence the effectiveness of the electricity market, the quality of an organizational model and the economic environment are considered within the framework of a methodological­ approach developed by the authors. The article studies discrepancies between ideal concepts that are inherent in the existing market model, and real economic relations that are directly linked to the technological features of the industry. It suggests ideas for alternative models of the electricity market and industry-specific management mechanisms and presents the authors’ concept and specific solutions for its implementation.

JEL classification: O11.
Keywords: energy reform, electricity market, competition, electricity prices.

The paper reviews the development of temporary agency work in Russia using data from Russian companies in 2008—2011. The results indicate that the number of Russian firms with agency workers has increased while the share of agency workers declined in the period analyzed. Using a probit model the author investigates why firms use temporary agency work. The results of our study demonstrate that the use of agency work is characteristic mainly for small firms. Important factors for firms are also their technical state and financial position, investment in the own development, relation to particular sectors and investment in specific human capital.

JEL classification: J23, J41, M12, М55.
Keywords: Russian economy, temporary agency work, employment, labor demand, labor contracts.

In the article, the crisis state of agrarian sector of Russia, its reasons and crucial role in its overcoming of implementing consecutive intensification of agriculture are considered. The lag in scientific development of methodological and applied aspects of intensification is noted. Foreign experience in this area, practice of using factors of intensification during the Soviet and modern periods of development of agriculture are analyzed. A special role of the state in promoting intensification of agricultural production is shown. Measures for increasing the level and economic efficiency of intensification of Russian agriculture are grounded.

JEL classification: Q18, Q14, Q11.
Keywords: agrarian crisis, intensification, modernization, agrarian protectionism, agrarian policy.