Arhive: #2 2011

On the modernization of public production in Russian Federation

The paper identifies a number of key areas of economic modernization - modernization of property, modernization of financial system, modernization of regional governance and modernization of social sphere. The problems that arise in these areas and their solutions are noted. Disclosure of modernization of the real sector of the economy is made. Mechanisms of technological renovation and restructuring, the sources of the rapid modernization of public production are defined. Modernization of property includes: mass privatization of state property, aimed at its commercial use and creation of favorable economic environment for small business development. Modernization of the financial system must follow the path of reducing the tax burden on business and increasing the role of banks (assets of the banks should not be less than 150% of GDP). Technological upgrade in the real sector will allow raising productivity by 2-3 times in the next 7-10 years, to halve energy intensity of GDP, to create material conditions for manufacturing of innovative products. The restructuring will help diversify the economic structure and exports, create competitive advantages for taking leading position in the field of aerospace engineering, production and export of electricity and electric machine manufacturing products, production of finished goods made from synthetic materials of forest products over time to become the world's leader. A prerequisite condition of rapid modernization are doubling investment rate on the basis of large-scale privatization, redemption of government bonds, formation of the Russian market funds of "long" money (funded pensions, insurance, mutual funds and development of banking system).