Challenges of the Modern Economy: Digital Technologies, Problems, and Focus Areas of the Sustainable Development of Country and Regions 3031293630, 9783031293634

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Advances in Science, Technology & Innovation IEREK Interdisciplinary Series for Sustainable Development

Yakhya G. Buchaev · Arsen S. Abdulkadyrov · Julia V. Ragulina · Arutyun A. Khachaturyan · Elena G. Popkova Editors

Challenges of the Modern Economy Digital Technologies, Problems, and Focus Areas of the Sustainable Development of Country and Regions

Advances in Science, Technology & Innovation IEREK Interdisciplinary Series for Sustainable Development Editorial Board Anna Laura Pisello, Department of Engineering, University of Perugia, Italy Dean Hawkes, University of Cambridge, Cambridge, UK Hocine Bougdah, University for the Creative Arts, Farnham, UK Federica Rosso, Sapienza University of Rome, Rome, Italy Hassan Abdalla, University of East London, London, UK Sofia-Natalia Boemi, Aristotle University of Thessaloniki, Greece Nabil Mohareb, Faculty of Architecture—Design and Built Environment, Beirut Arab University, Beirut, Lebanon Saleh Mesbah Elkaffas, Arab Academy for Science, Technology and Maritime Transport, Cairo, Egypt Emmanuel Bozonnet, University of La Rochelle, La Rochelle, France Gloria Pignatta, University of Perugia, Italy Yasser Mahgoub, Qatar University, Qatar Luciano De Bonis, University of Molise, Italy Stella Kostopoulou, Regional and Tourism Development, University of Thessaloniki, Thessaloniki, Greece Biswajeet Pradhan, Faculty of Engineering and IT, University of Technology Sydney, Sydney, Australia Md. Abdul Mannan, Universiti Malaysia Sarawak, Malaysia Chaham Alalouch, Sultan Qaboos University, Muscat, Oman Iman O. Gawad, Helwan University, Egypt Anand Nayyar

, Graduate School, Duy Tan University, Da Nang, Vietnam

Series Editor Mourad Amer, International Experts for Research Enrichment and Knowledge Exchange (IEREK), Cairo, Egypt

Advances in Science, Technology & Innovation (ASTI) is a series of peer-reviewed books based on important emerging research that redefines the current disciplinary boundaries in science, technology and innovation (STI) in order to develop integrated concepts for sustainable development. It not only discusses the progress made towards securing more resources, allocating smarter solutions, and rebalancing the relationship between nature and people, but also provides in-depth insights from comprehensive research that addresses the 17 sustainable development goals (SDGs) as set out by the UN for 2030. The series draws on the best research papers from various IEREK and other international conferences to promote the creation and development of viable solutions for a sustainable future and a positive societal transformation with the help of integrated and innovative science-based approaches. Including interdisciplinary contributions, it presents innovative approaches and highlights how they can best support both economic and sustainable development, through better use of data, more effective institutions, and global, local and individual action, for the welfare of all societies. The series particularly features conceptual and empirical contributions from various interrelated fields of science, technology and innovation, with an emphasis on digital transformation, that focus on providing practical solutions to ensure food, water and energy security to achieve the SDGs. It also presents new case studies offering concrete examples of how to resolve sustainable urbanization and environmental issues in different regions of the world. The series is intended for professionals in research and teaching, consultancies and industry, and government and international organizations. Published in collaboration with IEREK, the Springer ASTI series will acquaint readers with essential new studies in STI for sustainable development. ASTI series has now been accepted for Scopus (September 2020). All content published in this series will start appearing on the Scopus site in early 2021.

Yakhya G. Buchaev • Arsen S. Abdulkadyrov • Julia V. Ragulina • Arutyun A. Khachaturyan • Elena G. Popkova Editors

Challenges of the Modern Economy Digital Technologies, Problems, and Focus Areas of the Sustainable Development of Country and Regions

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Editors Yakhya G. Buchaev Dagestan State University of National Economy Makhachkala (Republic of Dagestan), Russia Julia V. Ragulina RUDN University Moscow, Russia

Arsen S. Abdulkadyrov Dagestan State Technical University Makhachkala (Republic of Dagestan), Russia Arutyun A. Khachaturyan Institute of Market Issues of the Russian Academy of Sciences Moscow, Russia

Elena G. Popkova RUDN University Moscow, Russia

ISSN 2522-8714 ISSN 2522-8722 (electronic) Advances in Science, Technology & Innovation IEREK Interdisciplinary Series for Sustainable Development ISBN 978-3-031-29363-4 ISBN 978-3-031-29364-1 (eBook) https://doi.org/10.1007/978-3-031-29364-1 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Introduction: Challenges to Global Sustainable Development and Response Mechanisms in Support of the SDGs at Different Levels of Economics and Governance

Today’s economy faces several challenges to sustainability. One of the current global challenges is the COVID-19 pandemic. The unexplored viral threat that poses a high risk to humankind has significantly increased the level of social tension. The situation is complicated by the fact that the traditional mechanism of social cohesion in the face of an external threat is not available because strict quarantine measures involving social distancing have been imposed to contain the disease. Another global challenge of our time is related to the global financial and economic crisis, which arose in the pandemic and is called the COVID-19 crisis. Social restrictions caused a decline in business activity and slowed the rate of economic growth. Business losses were superimposed on the negative balance of national budgets, which reduced the opportunities for government support to “revive” the economy. Significant increases in demand are also unaffordable against the backdrop of rising inflation and unemployment. The third global challenge is world economic disintegration. International economic ties, which have been built and strengthened for decades, have shown unexpected fragility in the face of instability because they have not had a sufficiently solid foundation in the form of shared political interests and global cultural ties. The world is approaching a new Pareto-optimal balance of free trading and protectionism. This calls for an overhaul of international partnerships and a renewal of global value chains. These challenges have created unfavorable conditions in the global economy. Despite the commonality of these conditions for all economic systems and economic entities, adaptation to them and their management is based on different mechanisms (economic, legal, and technological) at each level of the economy. At the national level, it is necessary to revise strategies for sustainable socio-economic development of economic systems (implementation of the 17 SDGs proclaimed by the UN) considering the new realities. There are two critical milestones in the foreseeable future: • 2025—completion of the planned programs of digital modernization of the economies of the advanced countries of the world; • 2030—completion of the “Decade of Action.” The legal field also needs to be updated—it must create institutional opportunities to trigger macroeconomic trends of adaptation to the changing global environment. At this level, it is critical to support scientific and technological progress, so that the economic system is not “left behind” the Fourth Industrial Revolution. This requires the development of a “knowledge economy”: support for science and education, encouraging the mass development of digital competencies, the dissemination of advanced technologies, and support for the innovative development of entrepreneurship. At the regional level, greater flexibility in the public administration of the economy is required to consider its territorial characteristics. In this case, we also face the task of updating the regulatory framework, taking into account the macroeconomic development course chosen at the national level and economic practices applied in the region. This book considers a region v

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Introduction: Challenges to Global Sustainable Development and Response Mechanisms …

as an economic subsystem within the country (territory). Cooperative mechanisms of adaptation to the changing global environment are of particular importance at the regional level of governance. The priorities for developing the “knowledge economy” formulated at the national level are implemented by the regions with the support of universities as local centers of knowledge and technology and sources of creation and dissemination of innovation. At the regional level, it is especially important to mobilize domestic resources to unlock the potential for economic growth and sustainable development of territories. Digital technologies are used to stimulate business activity and ensure transparency and full coverage of public administration (in the e-government system). Human resources play a leading role at the corporate level: attracting and retaining the best personnel, developing the corporate knowledge system, and generating know-how when using digital technology are all critical to achieving the efficiency and competitiveness of entrepreneurship. Business networking can also take place, but, in most cases, it is put in a narrow framework dictated by global challenges. At this level, digital technology takes on the most applied meaning and is used to optimize business processes. Support for sustainability has long ceased to be a superficial market trend and is deeply rooted in corporate strategies. Despite external challenges, support for the SDGs must be continuous because only then will the planned sustainable development results be successfully achieved. It is also necessary to consider the peculiarities of each industry and, when considering them, to activate corporate mechanisms of change management. Thus, each level of economic activity needs to be studied in detail in its own right and reconsidered from the perspective of the new conditions in the global economy. Although the mechanisms of adaptation and management to changes in the external environment are well known (outlined above), the specifics of their application in relation to the current set of contemporary global challenges of sustainable development and the prospects for improving these mechanisms need in-depth scientific study. In this regard, this book aims to systematically study the challenges of today’s economy and the related problems and areas of sustainable development of countries, regions, and businesses, with particular attention to the new prospects offered by the spread of digital technology. The originality of this book lies in the multi-level study of SDGs' support in the economy in unity, considering the specifics of country, regional, corporate, and sectoral practices. The novelty of the book is associated with the disclosure of a new view of digital technologies. This view, for the first time, shows digital technology as a tool to achieve strategic benchmarks in the field of sustainable development. The advantage of the new view of digital technology formed in the book is that it clearly prioritizes digitalization (secondary) and sustainable development (primary), demonstrates their interconnectedness, and integrates digital technology into SDGs practices, thereby accelerating their achievement. The book is logically structured into six parts. Part One systematizes and explores the current challenges of the economy as barriers to sustainable development in perspective up to 2025 and 2030. Part Two identifies promising areas for sustainable development of countries and reviews international experience, in particular, the experience of New Zealand, Russia, and the EU (with special attention to Germany and France). The characteristics of developed and developing countries are also considered. Part Three is devoted to the problems and prospects of sustainable development of regions: both southern and northern (the Arctic region). Part Four focuses on the best practices for sustainable development and support of SDGs in business (both commercial and non-profit, formal and informal), considering the characteristics of the sectors of the economy. Part Five reflects economic and legal foundations and cooperative mechanisms of sustainable development (international trade, customs unions, consumer cooperation, clustering, and integration of universities among themselves and with business). Part Six reveals advanced digital technologies and their contribution to sustainable

Introduction: Challenges to Global Sustainable Development and Response Mechanisms …

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development: “green” technologies, Industry 4.0 technologies (Big Data, AI, and robots), and the digital competencies required for their absorption and highly efficient use. The book is intended for scholars studying sustainable economic development. In the book, they will find a systemic view on the global challenges of sustainable development and scientific and methodological recommendations for providing an effective response to these challenges at every level of the economy: country, regional, and cooperative. The book is additionally of interest to practicing experts. For them, the book reveals in detail the best international practices and offers applied recommendations to support sustainable economic development and implementation of the SDGs in the practice of state (national regulation and public administration of the region) and corporate (in various sectors) management. Makhachkala (Republic of Dagestan), Russia Makhachkala (Republic of Dagestan), Russia Moscow, Russia Moscow, Russia Moscow, Russia

Yakhya G. Buchaev Arsen S. Abdulkadyrov Julia V. Ragulina Arutyun A. Khachaturyan Elena G. Popkova

Contents

Challenges of the Modern Economy as Barriers to Sustainable Development Statistic Indicators for Assessing the Measuring Efficiency to Counter Economic Sanctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nina V. Shirkunova, Elena V. Roditelskaya, Svetlana N. Bludova, Gulpari O. Vafodorova, and Irina M. Turlanova The Innovative and Sustainable Development of Energetics Under the Conditions of the Post-pandemic Recovery of the Economy . . . . . . . . . . . . . . Arsen S. Abdulkadyrov, Irina Yu. Eremina, Alena V. Chuprova, Irina Yu. Chuprova, and Naida A. Amadzieva

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Scenario Analysis of the Development of the Russian Digital Economy Until 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Anatoly M. Filipchenko, Natalia A. Denisova, and Mikhail A. Kovnerev

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The Post-pandemic Analysis of the Specifics of Industrial Economies’ Development from the Positions of Innovativeness and Sustainability . . . . . . . . . . Svetlana V. Ponomareva, Eugeny E. Zhulanov, and Elena S. Lobova

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The Post-pandemic Model of the Sectoral Development of Emerging Economies’ Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yahya G. Buchaev, Ahmed G. Buchaev, Gamid A. Buchaev, Salihbek G. Abdulmanapov, and Zalina M. Abdullaeva Perspective Role of Digitalization in the Well-Balanced Development of the Global Economic System of the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . Karine S. Khachaturyan, Vladimir K. Spilnichenko, and Maxim S. Youmatov The Role of Digital Security for the Stable Development of the Global Economic System of the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aisha A. Gadzhieva, Aida O. Dalgatova, Rustam M. Shakhbanov, and Ramazan M. Kasumov Sustainable Development of the World Economy of the Future on the Basis of Digitalization: The 2030 Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Salia Z. Seidahmatova, Turdubek T. Japarov, and Kometa T. Paytaeva Dialectics of Systems Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga B. Kevbrina, Elena M. Kechaykina, Aleksandr S. Pechatkin, and Aleksandr N. Fedin Problems of Consideration of Environmental Factors in Urban Planning as a Mechanism for Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dauren N. Bekezhanov, Mikhail V. Demidov, Nadezhda V. Semenova, Gulnaz S. Gaynetdinova, and Vera P. Filippova

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Evaluation of the Effectiveness of Agri-Food Policy as a Component of the Economic Security of the Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Natalia A. Asanova, Nadezhda A. Gorkova, Margarita V. Vertiy, Fatima R. Yeshugova, and Irina G. Peshkova Employment of Workers in Green Jobs: Industry, Product and Skill Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena N. Lishchuk, Vera V. Bakaeva, Vladimir V. Saliy, and Nikolay V. Shalanov

Contents

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Problems and Implementation Prospects of Experimental Legal Regimes in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lyudmila A. Abramova, Svetlana B. Vereshchak, and Alexander V. Vereshchak

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Globalization as a Factor of Influence on Russian Federation’s Foreign Economic Activity: Engineering Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maxim O. Kirichek, Oksana A. Moskalenko, and Svetlana V. Zybenko

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Import Substitution: The Main Directions of Import Substitution, the Pros and Cons of the Implemented State Program, Some Success Stories of Import Substitution and Its Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luiza T. Yahina, Venera Z. Minnigaleeva, Konstantin L. Svechnikov, Vasilya Y. Mullina, and Liliya I. Galeeva

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Problems and Prospects for the Development of Import Substitution in the Agro-Industrial Complex of the Russian Federation . . . . . . . . . . . . . . . . . . Natalya V. Baturova, Gulshat Z. Galyautdinova, Tatyana A. Ivanova, Ilhamiya M. Minnehametova, and Rimma V. Khadeeva Cooperation, Humanism, Tolerance: Realities of History and Modernity . . . . . . . Viktor V. Shalin, Taisiya N. Sidorenko, Svetlana G. Boychuk, Nataliya B. Yakusheva, and Olga V. Bershadskaya Features of the Sustainable Development of the Tourism Economy in the Context of the COVID-19 Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena M. Kryukova, Valeriya S. Khetagurova, Lilia V. Matraeva, Ekaterina S. Vasiutina, and Nataliya A. Korolkova Development of the Cooperative Movement in the Republic of Bashkortostan: Problems and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alfira R. Mazhitova, Buranbai R. Yuldybaev, Lyailya G. Khusnutdinova, Ilfat Z. Samsitdinov, and Elena Z. Zulkarnaeva Supervision and Control Over the Investigation of Crimes in the Field of Entrepreneurial Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oxana V. Kravtsova, Irina V. Blinova-Sychkar, Sergey A. Dmitrienko, Vladislav V. Egorov, and Roza V. Chernomorets

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Countering Aggressive Tax Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Tatyana V. Bodrova, Elvira N. Borisova, Elena V. Zubareva, Elena V. Ivanova, and Natalia B. Morozova Problems of Economic Security of Special Economic Zones . . . . . . . . . . . . . . . . . 107 Elena A. Bessonova, Svetlana A. Orlova, Karina I. Svezhentseva, and Ulyana R. Sergeeva Conceptual Approach to the System of Controlling in the Public Sector . . . . . . . . 113 Elena A. Fedchenko, Lyubov V. Gusarova, and Irina S. Medina

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Sustainable Development Based on Knowledge Sharing: An International Aspect (A Review of the Problem) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Tatyana L. Myagkova, Olga V. Beliaeva, Sergey V. Istomin, Olga B. Mizyakina, and Iuliia V. Panko New Functional Product as a Result of International Interaction . . . . . . . . . . . . . 127 Anna M. Admaeva, Anzhelika I. Rudneva, Alla E. Tarutina, Alexander M. Chuzhaikin, and Yuri O. Golovin Anti-corruption Strategies: Forms and Mechanisms of Participation of Civil Society Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Vera R. Averyanova, Svetlana V. Novikova, Tatiana V. Pilyugina, Svetlana G. Boychuk, and Svetlana V. Pomazan Methods of Acquisition and Termination of Subjective Rights to Immovable Property as an Element of Social Security of Citizens . . . . . . . . . . . . . . . . . . . . . . 139 Viktor A. Ilyin, Vera V. Chizhikova, Andrey A. Smagin, Natalya V. Lutovinova, and Alexey V. Erpelev Problems of Practical Application of Legal Norms Containing Accessory Obligations in the Legislation of the Russian Federation in the Conditions of the COVID-19 Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Ludmila A. Evseeva, Inna N. Skuratova, Vladimir A. Medvedev, Anton K. Kuznetsov, and Chulpan Sh. Kupirova Uncertainty and Risk as Factors in the Development of Insurance . . . . . . . . . . . . 149 Nelya Kh. Fatkhullina, Elena S. Shchigortsova, Alsu V. Vylegzhanina, Alina V. Makhiyanova, and Vladimir R. Volkov School and University Cooperation in the Aspect of Studying Linguistic and Cultural Literacy of Migrant Children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Andrey A. Selyutin, Elizaveta V. Limarova, Larisa I. Tararina, and Ekaterina I. Sokolova Economic and Legal Foundations and Cooperative Mechanisms for Sustainable Development Biosocial Essence of Person and Crime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Vadim A. Chukreev and Tatyana V. Pinkevich Assessing the Institutional Framework for Russia’s Foreign Trade Cooperation with North African Countries: Foreign Trade and Customs Aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Natalya A. Budarina, Svetlana N. Bludova, Irina Yu. Tataeva, Elena V. Khokhlova, and Elena V. Filimonova Modern Marketing Technologies in Promoting Consumer Cooperation Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Angelica A. Nikitina, Alfiya M. Nurlygayanova, Flyuza A. Tukayeva, Irina N. Girfanova, and Ilyusa M. Khanova Actual Issues of the Development of Consumer Cooperation Legislation in Addressing Social Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Vera R. Averyanova, Nellya I. Orfanidi, Tatiana V. Pilyugina, and Tatyana V. Yushkina

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Development of Cooperation Between the European Union and Partner Countries in the Transport Sector in the Context of Increasing Competition in International Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Tatiana S. Malakhova, Alexander A. Voronov, Pavel V. Gorlachev, Tatyana S. Kuzina, and Andrey A. Bukhtayarov Legal Regulation of Management Relations and Overcoming Linguistic Barriers Arising from the Digitalization of Economic Objects . . . . . . . . . . . . . . . . . . . . . . . 187 Saida M. Guziekova, Pavel V. Gorlachev, Svetlana N. Zagnitko, Victoria Y. Pavlovskaya, and Anna V. Dudchenko Cooperative Processes Within the Framework of Co-evolution of Information Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Ljudmila Yu. Alexandrova, Olga N. Gorodnova, Galina V. Kalinina, Olga F. Kireeva, and Felix I. Sharkov Legislation as a Means of State Influence on Cooperation . . . . . . . . . . . . . . . . . . . 199 Maxim Yu. Gofman, Natalia V. Selkina, Anna V. Stadnyuk, Anna Sh. Elyazyan, and Anna V. Lichkovakha Role and Importance of Mediation in Ensuring the Rule of Law and Partnerships for Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Elena F. Usmanova, Pavel V. Malyshkin, and Roman V. Fedoseev Economic and Legal Foundations of Management and Control Over the Development of Nuclear and Thermonuclear Energy at the National and International Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 Damir R. Vakhitov, Elena A. Astrakhantseva, Regina R. Dolotina, Sergey A. Baryshev, and Riashidia N. Zainullina The Legal Nature and Features of a Syndicated Credit (Loan) . . . . . . . . . . . . . . . 213 Maxim A. Sidorenko, Taisiya N. Sidorenko, Andrey A. Zhukov, and Vera R. Averyanova The Cooperative Movement in Russia at the Turn of the XIX–XX Centuries: A Historical Retrospective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Elizaveta M. Mikhailova, Valery V. Andreev, Marina N. Grigorieva, Leonid A. Taimasov, and Elena K. Mineeva Price Factors Determining the Involvement of Farms and Households in the System of Agricultural Consumer Cooperation . . . . . . . . . . . . . . . . . . . . . . 225 Alexander A. Kudryavtsev and Julija V. Karmyshova Socially Responsible Level of Consumer Cooperation: Problems and Prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Ludmila N. Dmitriyeva, Tatyana N. Egorova, Natalia V. Danilova, Svetlana G. Kochergina, and Elena G. Petrova Family Values in the Self-consciousness of Students of Cooperative University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 Elena A. Nikolaeva, Agnia S. Yusupova, Irina G. Musina, Nailya N. Minnullina, and Gulnara A. Mustafina Experience of Cooperation of German Universities in the Field of Sustainable Development in Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Margarita E. Belomestnova and Svetlana V. Dusenko

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Ethnocultural Identity as a Factor of Optimizing Interethnic Relations in Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 Zufar G. Galeev, Ildar G. Gizzatullin, Igor A. Vladimirov, and Radmir A. Iksanov Structuring the Strategic Management System for the Sustainable Development of Cooperative Formations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Ludmila V. Marabaeva, Elena G. Kuznetsova, Tatyana E. Shilkina, and Roman R. Hairov Legal Regulation of Contractual Relations in the Hanafi Madhhab . . . . . . . . . . . 251 Valery V. Andreev, Elena I. Antonova, Tatiana N. Evgrafova, Nikolay I. Petrenko, and Alexander V. Nadezhdin Unifying Transformations as a Condition for the Sustainable Development of Consumer Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 Marina I. Drozdova, Lydia P. Nagovitsina, Zoya A. Kapelyuk, Svetlana A. Gorodkova, and Vera V. Bakaeva Cooperation of Resident Institutional Units as a Segment of Cluster Interaction of Constructive High-Technological Development . . . . . . . . . . . . . . . . 263 Margarita A. Shumilina, Ivan V. Trifonov, Alexey M. Gubernatorov, Lyudmila A. Shmeleva, and Maxim S. Chistyakov The Potential of Cooperation in the Sustainable Development of Rural Areas of the Chuvash Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 Yulia V. Pavlova, Tamara Ya. Silvestrova, and Andrey N. Zaytsev Cluster as a Form of Interaction Between Government, Business, and Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Elvira V. Dubinina, Ekaterina V. Zhilina, Guzel A. Musina, Angelica A. Nikitina, and Zulfiya Z. Sabirova Stereotype and Reputation of Consumer Cooperation . . . . . . . . . . . . . . . . . . . . . . 275 Nadezhda L. Rogaleva and Lyubov E. Venyaminova Spiritual and Moral Foundations of Consumer Cooperation in the Light of Ethnocultural Traditions (Using the Activities of Chuvashpotrebsoyuz as an Example) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Erbina V. Nikitina, Elizaveta M. Mikhailova, Tatiana N. Evgrafova, Kristina V. Fadeeva, and Marina N. Grigorieva Problems of Legal Regulation of Agricultural Cooperation . . . . . . . . . . . . . . . . . . 283 Igor A. Vladimirov, Ravil Kh. Gizzatullin, Radmir A. Iksanov, and Svetlana A. Lartseva Study of Sustainability and Manageability of Economic Objects of the Cooperative Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 Nikolai T. Katanaev, Natalia A. Volkova, Tatyana A. Panteleeva, Liudmila L. Koroleva, and Aleksanr I. Boikov Advanced Digital Technologies and Their Contribution to Sustainable Development Organizational and Institutional Support of Digital Competitiveness for the Sustainable Development of the Green Economy and the Fight Against Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 Nikolay N. Nadezhin

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Financial Management of the Digital Economy Development Under Current Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 Natalia V. Kandybko, Vladimir K. Spilnichenko, and Viktor A. Splender Cyclicity of the Digital Economy Development and the Perspectives of Its Counter-Cyclical Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 Elena E. Alenina, Vera V. Ziulina, and Natalia A. Rykhtikova The Impact of the Digital Economy on Healthcare for Sustainable Development—A Post-pandemic Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 Papu M. Alieva, Zumrud K. Buchaeva, and Arsen S. Abdulkadyrov Crisis Management of the Development of the Digital Economy and Its Post-COVID Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Julia F. Anoshina, Valery L. Boyko, and Vladimir Yu. Melnikov The Model of Sustainable Development of Economy Based on Digital Competitiveness Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Ahmed G. Buchaev, Yahya G. Buchaev, Salihbek G. Abdulmanapov, Zalina M. Abdullaeva, and Abakar S. Mudunov The Strategy of Advanced Development of Economy and Its Implementation Based on Digital Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Arsen S. Abdulkadyrov, Gamid A. Buchaev, Svetlana A. Buchaeva, Nurziyat Yu. Kazavatova, and Ahmed G. Buchaev Risk Management of Digital Competitiveness in the Interests of a Sustainable and Advanced Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Nikita A. Lebedev, Galina A. Terskaya, and Svetlana V. Zubkova Financial Support of Digital Competitiveness for Sustainable and Advanced Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Vezirhan K. Giraev, Nazim L. Balamirzoev, and Inara K. Shakhbanova Marketing Mix of the Digital Competitiveness of the Economy as the Basis of Its Sustainable and Advanced Development . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Shamil M. Tagirov, Zalmu K. Omarova, Napisat I. Gazalieva, Zaur Z. Omarov, and Ibragimkhalil C. Askhabaliev Human Resources Management in the Knowledge-Intensive Model of Digital Competitiveness: Advantages for the Sustainable Development of Economy . . . . . 347 Khadizhat M. Khadzhalova, Zaira Z. Abdullaeva, Pirmagomed G. Abdulmanapov, and Lyudmila A. Borisova Comparison of the Approaches to the Provision of the Digital Competitiveness from the Positions of Sustainable and Advanced Development of Economy . . . . . 351 Albina O. Ramazanova, Larisa A. Gadzhimuradova, Muslimat H.-H. Yusupova, Arslan A. Minatullaev, and Nazira I. Magomedova Advanced Development of Economies Based on the Digital Competitiveness: Consequences for the Balance and Financial Sustainability of the World Economic System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 Baktygul B. Esenalieva, Aida K. Karabekova, and Razet S.-A. Makkaeva The Green Economy of the Future and the Prospects for Its Development Based on the Leading Digital Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359 Vladimir K. Spilnichenko, Alexandra V. Gridchina, and Irina V. Avvakumova

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Contribution of Digital Education to the Digital Economy’s Development in Modern Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Olga V. Budzinskaya Investments in the Digitalization of the Agro-Industrial Complex for the Future Growth of the Global Economic System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 Mikhail A. Babeshin, Natalia V. Boyko, and Karina V. Karpova Digital Agro-Industrial Complex and the Future Perspectives of Food Security Based on Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 Sharip I. Sharipov, Shakhmardan S. Muduev, Bakhu Sh. Ibragimova, Islam K. Kerimov, and Gusein U. Yakhyaev Improving Control Activities and International Cooperation of Customs Authorities in the Context of Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 Nadezhda A. Moshkina, Daria A. Kondrashchenko, Veronika V. Bekher, Leyla A. Gelyahova, and Margarita H. Mashekuasheva Cooperative Platforms: The Practice of Digital Participation . . . . . . . . . . . . . . . . 381 Alexander V. Sobolev, Sviatoslav E. Bednyagin, Irina F. Kalinina, Andrey M. Sokolov, and Helena A. Yurmanova Prospects for the Development of the Digital Economy Based on Advanced Technologies of Industry 4.0: Robots, Big Data and Artificial Intelligence . . . . . . 385 Andrey V. Kurkin and Akim V. Giraev Sustainable Development of Industry 4.0 as a Pioneering Line of Industry in the Post-pandemic Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391 Ruslan A. Mammaev, Gadzhimurad I. Idziev, Fatima N. Ismailova, Rasul M. Magomedov, and Naida G. Omarova Robotization as a Vector of the Innovative Development of Industry Under the Post-pandemic Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395 Alexandr A. Ryazanov, Suren A. Khachaturyan, and Valentina V. Grigoreva Green Industrial Innovation for Sustainable Development: A Post-COVID Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Arsen S. Abdulkadyrov, Natalia A. Stefanova, Aleksandr A. Zhigit, and Elena I. Meshchangina Quality of Life in the Big Data and AI Economy: Modern Experience and Future Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Sabina E. Savzikhanova, Zarema A. Gasanova, Natalia M. Fomenko, Tamila I. Isabekova, and Nigara E. Eminova Improvement of Technical Regulation of Foreign Economic Activity in the EAEU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 Maryana V. Arkhipova, Igor P. Antonov, Ekaterina A. Redkina, Victoria B. Gorbunova, and Artur A. Pozdnyakov Prospects for the Sustainable Development of Countries: Review of International Experience Program-Targeted Approach to the Innovative Development of Industrial Economies Under the Modern Post-COVID Conditions . . . . . . . . . . . . . . . . . . . . 419 Igor V. Chistov, Sergey E. Zakutnev, and Igor V. Bulava

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State and Corporate Management of Industrial Economies for Their Sustainable Development and Recovery After the Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Sergey A. Golubtsov, Alexey I. Laptiev, and Maxim A. Polezhaev Credit Cooperation in Russia: Problems and Possible Solutions . . . . . . . . . . . . . . 431 Daria O. Maslakova, Ksenia A. Nefedova, Olga B. Yares, Svetlana A. Galaktionova, and Elena V. Kirova Leasing as an Effective Tool for the Implementation of Investment Projects in Different Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435 Edward A. Arustamov, Leonid P. Dashkov, Dmitry I. Valigursky, Ilgiz I. Nurtdinov, and Diliara R. Abdrakhmanova Optimization of the Use of the Potential of Specially Protected Natural Areas Within the Framework of the Sustainable Development of Domestic Tourism in the Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439 Valeriya S. Khetagurova, Elena M. Kryukova, Sergey G. Erokhin, Natalya V. Lutovinova, and Vera V. Chizhikova Changes in Cooperative Legislation in the Context of Solving Socio-economic Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Andrey A. Zhukov, Ruslan M. Dzidzoev, Tatyana V. Martynova, Irina A. Yakovenko, and Nellya I. Orfanidi Development of Legislation on Cooperation in Ukraine in 1992–2014 . . . . . . . . . . 449 Mikhail P. Belyaev, Oleg V. Golikov, Ekaterina A. Korotenkova, Maksim V. Feoktistov, and Anna Sh. Elyazyan Assessment of the Socio-Economic Sphere of the Countries of the European Union in the Context of the Implementation of Joint Strategies and Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455 Tatiana S. Malakhova, Svetlana N. Zagnitko, Lileliya B. Luchishina, Tatyana L. Ishchenko, and Anastasiya I. Pavliv Role of Consumer Cooperatives in Overcoming Unemployment in Contemporary Russian Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461 Natalya V. Nikishova Development of Cooperation Legislation in Germany . . . . . . . . . . . . . . . . . . . . . . 467 Mikhail P. Belyaev, Andrey A. Boltaevskiy, Vitaly A. Maltsev, Anna V. Stadnyuk, and Anna Sh. Elyazyan Agricultural Cooperatives in France: Toward Environmental Neutrality and Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471 Svetlana V. Ivanova A National Model of Cooperation as a Track of Sustainable Development of New Zealand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 Olga V. Kaurova, Alexander N. Maloletko, Lilia V. Matraeva, Ekaterina S. Vasiutina, and Sergey G. Erokhin Development of the Cooperative Sector in Canada: Features of the National Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483 Olga V. Kaurova, Alexander N. Maloletko, Lilia V. Matraeva, and Ekaterina S. Vasiutina

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Infrastructural Factors of the Digital Economy Development and Their Management in the Interests of Accelerating Its Growth . . . . . . . . . . . 487 Victoria V. Stofarandova, Madina I. Mallaeva, Zaur U. Medzhidov, Gadjimurad Kh. Magomedov, and Magomed K. Abidov New Opportunities for Human Potential Development in the Digital Economy and Their Implementation in Developed and Developing Countries . . . . . . . . . . . 493 Elena A. Gorshkova, Oleg A. Antonyuk, and Andrey V. Minakov Integration Mechanisms of Development of the Digital Economy and the Prospects for Their Activation in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499 Arutyun A. Khachaturyan, Mikhail N. Kozin, and Mariya V. Glinskaya Problems and Perspectives of Sustainable Development in Current Regions Designed Innovative and Investment Development of the Region in the Conditions of Digital Economy to Ensure Economic Security . . . . . . . . . . . . . . . . 505 Shamil I. Nigmatullin State Regulation of the Development of Cooperative Formations in Agriculture of the Republic of Bashkortostan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Irina N. Girfanova, Angelica A. Nikitina, Alfia M. Nurlygayanova, Flyuza A. Tukayeva, and Elena A. Hunafina Regional Features of Digital Transformation During the Pandemic . . . . . . . . . . . 515 Igor V. Petrov, Svetlana V. Plyasova, Olga Y. Kolomytseva, Irina K. Yakovleva, and Natalia I. Kuzmenko Formation of a Conceptual Tourist Product for the Effective Development of Territories Without a Pronounced Tourist and Recreational Potential . . . . . . . . . 523 Ludmila A. Burnyasheva, Gennady A. Vorobyov, Bakhtjar M. Gadzhimuradov, Irina E. Romanko, and Oksana N. Taranenko Sustainable and Advanced Development of Region’s Economy Based on Digital Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 Nizami S. Askerov, Farida S. Tsinpaeva, Zarema M. Abdullaeva, Tamila D. Alikerimova, and Gadzhi K. Kurbanov Regional Aspects of the Development of the Consumer Lending Sector in Russia During the Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533 Sergey S. Moiseev, Rustam I. Khanseviarov, Natalia P. Nazarchuk, Nataliya V. Telminova, and Albert I. Sadykov Methodological Aspects for Assessing the Financial Stability of Regions in the Context of the Coronavirus COVID-19 in 2021 . . . . . . . . . . . . . . . . . . . . . . 541 Nadezhda I. Yashina, Olga I. Kuryleva, Anastasia O. Egorova, Nadezhda E. Gilts, and Maksim M. Kutepov Development of the Nuclear Icebreaker Fleet as a Strategic Priority of the Arctic Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547 Nadezhda L. Rogaleva, Larisa B. Nyurenberger, Maxim V. Pristavka, Nikita E. Petrenko, and Lyubov E. Venyaminova Sustainable Development Capital of Rural Territories: The Role and Significance of Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553 Galina V. Knyaginina, Adigam A. Barlybaev, Inna A. Sitnova, Zulfiya M. Ishnazarova, and Nurzilya T. Yantilina

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Methods for Quality Control of Products of the Kamchatka Territory . . . . . . . . . 559 Nina I. Ryakhovskaya Improving the Competitiveness of the Regional Fishery Complex by Strengthening Foreign Economic Relations of the Region . . . . . . . . . . . . . . . . . . . 563 Lyubov E. Venyaminova, Nadezda L. Rogaleva, and Larisa N. Sushko Current Vectors of Investment Security of the Krasnodar Territory . . . . . . . . . . . 567 Natalia A. Asanova, Lyubov A. Belova, Saniyat Yu. Hut, and Lydia N. Isachkova Social Orientation of the Regional Economic Cluster of Consumer Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 Vasiliy G. Melnikov, Alexander N. Maloletko, and Igor V. Melnikov Prospects for the Development of the Cooperatisve Movement in Public Catering Enterprises of Almetyevsky District of the Republic of Tatarstan . . . . . . . . . . . . . 577 Elmira M. Kosacheva and Alinya R. Nurgalieva Cluster Cooperation as a Factor in Ensuring Sustainable Development of the Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583 Olga V. Cherkashina, Oksana A. Nomokonova, Oksana V. Martynenko, Maryana V. Arkhipova, and Danuta B. Vasilkova Development of Agricultural Cooperation in the Republic of Tatarstan . . . . . . . . 589 Dafik F. Hafizov, Marsel M. Khismatullin, Fayaz N. Avkhadiev, Ilgizar G. Gainutdinov, and Lilia V. Mikhailova Industrial Cooperation in Chuvashia in the Post-war Years: Historical and Legal Aspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 593 Leonid A. Taymasov, Olga G. Vyazova, Nikolai A. Petrov, Valeri V. Andreev, and Elizaveta M. Mikhailova Role of Agricultural Cooperation in the Development of Regional Food Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 Olga V. Kaurova, Alexander N. Maloletko, Elena I. Balalova, Alexander V. Tkach, and Valery A. Oganyan Formation of the Model of the Social-oriented Cluster as Method of Cooperation of the Subjects of SMEs of the Smolensk Region . . . . . . . . . . . . . . . . . . . . . . . . . . 605 Tatiana V. Gomelko, Irina Yu. Chernenkova, Elena V. Tarasova, Dmitriy A. Korolkov, and Mariya A. Ovsyannikova Sustainability and Industry-Specific Business Support for the SDGs Methods of Organizing the Design of Construction Works . . . . . . . . . . . . . . . . . . 615 Marianna S. Santalova, Irina V. Soklakova, Victor V. Gorlov, Ksenia V. Sadykova, and Diana A. Ermilina Corporate Social Responsibility in Industrial Economies as the Basis of Their Innovative and Sustainable Development in the Post-COVID Period . . . . . . . . . . 621 Andrey S. Karpov, Nikolay Ya. Golovetskiy, and Nikolai A. Kovbasa Digital Mechanisms of the Future Development of Social Entrepreneurship and Humanisation of Economic Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627 Salihbek G. Abdulmanapov, Yahya G. Buchaev, Ahmed G. Buchaev, Zalina M. Abdullaeva, and Khadizhat M. Khadzhalova

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Formation of Experimentation Skills in Children 5–6 Years Old Through Visual Modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633 Tatyana U. Plotnykova, Elena A. Sidyakina, and Marina A. Tseneva Project Technology in Education as a Promising Form of University and Business Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641 Larisa A. Olkhova, Olga N. Kozyreva, Tatiana V. Muravleva, Marina A. Rzhevskaya, and Olga S. Kirillova Innovative Corporate Strategies as Sources of Sustainable Development . . . . . . . . 647 Natalia Yu. Shadchenko, Liudmila V. Syrnikova, Elena G. Zhulina, Svetlana A. Efimenko, and Tatiana V. Boldyreva Strategic Guidelines for the Development of Non-profit Corporate Structures in the Context of the Transformation of the Regional Information Space of the Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 651 Ljudmila Yu. Alexandrova, Olga N. Gorodnova, Galina V. Kalinina, Olga F. Kireeva, and Alevtina Yu. Munshi Standard for the Development of Competition in the Subjects of the Russian Federation as a Tool for the Development of Entrepreneurship in Regional Commodity Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655 Sergey A. Katonin, Maria Sh. Machabeli, Tatyana V. Rudakova, Vladimir B. Larionov, and Elena V. Suvorova Innovations in Corporate Relations and Their Contribution to the Development of Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 661 Lubov B. Sitdikova and Svetlana J. Starodumova Cooperative Strategy in Sociosystems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 665 Elena O. Kolokolova, Irina N. Mineeva, Elena N. Moiseeva, and Mikhail A. Panfilov Strategic Management, Analysis, and Control: General Provisions . . . . . . . . . . . . 669 Tatyana Yu. Serebryakova, Olga G. Gordeeva, Roza S. Nikandrova, Olga R. Kondrashova, and Liudmila V. Kashirskaya Development of Professional and Qualification Potential of an Employee . . . . . . . 679 Oleg A. Ryabkov and Ivan A. Steshin Efficiency of the Organization’s Performance as a Factor of Sustainable Development and Economic Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685 Artur A. Semenov, Tatyana Yu. Serebryakova, Olga G. Gordeeva, Zhanna S. Kitaeva, and Larisa V. Markina Controlling as an Accounting and Analytical System of Personnel Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 691 Vera V. Darinskaya, Oleg A. Antonyuk, Tatyana V. Bodrova, Elvira N. Borisova, and Olga S. Ezopova-Sorokina Foreign Language Training of Specialists in the Economic Sphere as a Factor of Sustainable Development: Historical and Pedagogical Aspect . . . . . . . . . . . . . . . . 695 Anastasiia A. Kolobkova, Olga Yu. Sherbakova, Nataliia Yu. Anashkina, Tatiana N. Korotenko, and Olga I. Lukina Entrepreneurship Development as the Basis for a Competitive Environment After the Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 Olga A. Repushevskaya

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Service System and Service Targeting as a Key Aspect of the Company’s Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705 Viktor E. Panasenko, Mikhail V. Boginya, Valentina V. Bronnikova, Tanzilya R. Lubezkay, and Elena L. Maslova Formation of Responsible Cooperative Entrepreneurship Based on Socially-Oriented Cluster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713 Tatiana V. Opeykina, Natalia I. Morozova, Natalia I. Korobkina, and Galina N. Dudukalova Efficiency of Biopreparation Treatment of Wheat Grain; Baking Properties of Flour and Quality of Baked Bread in Consumer Cooperative Enterprises . . . . . . 717 Irina A. Derenkova, Natalia G. Berezhnyak, Irina G. Peshkova, Yuri A. Pospelov, and Olga V. Kosenko Experience of Cooperation of All Levels of Education in the Process of Project Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723 Maria M. Ivashina, Elena A. Orekhova, Natalia A. Efremova, Lidia E. Platonova, and Elena G. Kirikutsa Problems of Liability for Illegal Entrepreneurship Committed Within the Framework of Cooperative Legal Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729 Andrey A. Klyuev, Tatiana V. Martynova, Irina A. Yakovenko, Tatiana V. Yushkina, and Nellya I. Orfanidi Business Support During the Pandemic: View of the Representatives of the European Cooperative Movement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733 Olga V. Shinkareva, Olga V. Kaurova, Valery A. Oganyan, Peter Karacsony, and Alexander N. Maloletko The Digital Future of the SDGs in the “Decade of Action” (Conclusion) . . . . . . . . 737

Contents

Challenges of the Modern Economy as Barriers to Sustainable Development

Statistic Indicators for Assessing the Measuring Efficiency to Counter Economic Sanctions Nina V. Shirkunova, Elena V. Roditelskaya, Svetlana N. Bludova, Gulpari O. Vafodorova, and Irina M. Turlanova

Abstract

This research presents the calculation of these indicators based on statistical information over the past few years. The authors developed statistical indicators to counteract economic sanctions and calculated these indicators for the past five years. The presented technique can be used by government institutions and persons concerned for scientific and practical purposes to conduct statistical analysis. Keywords

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External trade Commodity composition indicators Economic sanctions Import Import substitution

Statistic Export

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JEL Classification

F10

1

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O11

Introduction

Selective economic sanctions imposed by Western countries impacts the countries of the Eurasian Economic Union is studied by Bukavnyova et al. (2020), Belyaev (2020a, 2020b, 2020c), Shapor et al. (2016), Shkarpetina (2020). N. V. Shirkunova (&) . E. V. Roditelskaya . S. N. Bludova . G. O. Vafodorova . I. M. Turlanova Russian Customs Academy, Lyubertsy, Russia e-mail: [email protected] E. V. Roditelskaya e-mail: [email protected] S. N. Bludova e-mail: [email protected] G. O. Vafodorova e-mail: [email protected]

Sanctions have affected throughout the years: oil, gas, defense, aerospace, nuclear industries, and the banking sector. American companies have started to pull Russian organizations out of the European market. The Russian Federation has approved retaliatory countermeasures consisting of a ban and restriction on importing some categories of goods, services, and intellectual property into the country to protect economic security. Trade relations that had been developing for decades were destroyed owing to restrictions imposed. Russia was forced to solve various economical issues from within existing resources and also to look for new trading partners. Issues of assessing the effectiveness of foreign trade are studied in the works of Abramchuk and Shimov (2013), Punko (2017), Shved (2020), Tamashevich and Leshkevich (2008). The issues of statistical assessment of the effectiveness of measures to counteract economic sanctions are not sufficiently developed, with many related publications available. It is essential to assess how effective the government’s response measures and internal economic and political decisions have been in increasing the country’s economic security. A quantitative assessment of the effectiveness of the measures taken by the Russian Federation to counter economic sanctions imposed.

2

Methodology

The analysis of the generalized theoretical approaches used to calculate statistical indicators is related to the search for new trading partners for foreign policy. Economic sanctions had negative consequences on the country’s external policy. This affected the sharp decrease in foreign trade turnover. The country’s leadership opposes these sanctions and has developed countermeasures for the past seven years.

I. M. Turlanova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_1

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N. V. Shirkunova et al.

In this regard, the authors proposed quantitative indicators for assessing the effectiveness of foreign policy in countering economic sanctions. The counterpart country’s relative replacement rate is calculated as follows: Rr ¼

Gn-CISi ; GCISi

ð1Þ

where: Rr —counterpart country’s relative replacement rate; Gn-CISi —growth rate of imports of the ith structural part of products from non-CIS countries (or countries that have joined the economic sanctions); GCISi —growth rate of the ith structural part of products from the CIS countries (or non-CIS countries that do not participate in the sanctions). It is convenient to present the indicator as a percentage. The values of this indicator allow comparing the growth rates of imports of products from the CIS countries with a similar group of products from non-CIS countries (Table 1). As a group of non-CIS countries, countries that have joined the economic sanctions can be selected. The counterpart country’s absolute replacement rate is calculated as follows: V CISi ; Ar ¼ V n-CISi

ð2Þ

where: Ar —counterpart country’s absolute replacement rate; V n-CISi —import volume of the ith structural part of products from non-CIS countries (or countries that have joined the economic sanctions);

V CISi —import volume of the ith structural part of products from the CIS countries (or non-CIS countries that do not participate in the sanctions). It is convenient to present the indicator as a percentage. The values of this indicator allow comparing the import volume of products from the CIS countries (a group of non-CIS countries that do not participate in sanctions) with a similar group of products from non-CIS countries (Table 1). As a group of non-CIS countries, countries that have joined the economic sanctions can be selected. Under the introduction of economic sanctions, the country’s government was faced with the need to pursue an import substitution policy to produce certain categories of goods. In this regard, measures are being taken to stimulate the development of domestic producers and stabilize the national economy. Statistical indicators for evaluating the effectiveness of internal policy to counter economic sanctions allow comparing the economic indicators of a country’s production with the volume of foreign trade turnover. The export elasticity coefficient is calculated as follows: E¼

Grcei ; GrGDPi

ð3Þ

where: E—export elasticity coefficient; Gr cei —growth (increase) rate of the country’s exports for a certain ith period; Gr GDPi —growth (increase) rate of gross domestic product (GDP) for the same ith period. The export elasticity coefficient compares decreases faster than the other (Table 2). The industrial production index comparison ratio:

Table 1 Estimated annual values of the counterpart country’s relative and absolute replacement rate Period

2014

2015

2016

2017

2018

2019

2020

Growth rate of products with code 01–24 from non-CIS countries

92.3

65.0

92.0

114.3

102.0

99.5

99.0

Growth rate of products with code 01–24 from CIS countries

91.3

76.3

105.0

122.4

104.5

104.3

100.1

Counterpart country’s relative replacement rate for the group of food products (expressed as a percentage)

101.1

85.2

87.6

93.4

97.5

95.4

98.9

The volume of import of products with code 01–24 from non-CIS countries ($ mln.)

34,106.0

22,174.6

20,406.7

23,318.4

23,783.3

23,665.5

23,422.5

The volume of import of products with code 01–24 from CIS countries ($ mln.)

5608.8

4282.2

4495.5

5500.4

5848.3

6181.5

6294.8

Counterpart country’s absolute replacement rate for the group of food products (expressed as a percentage)

16.4

19.3

22.0

23.6

24.6

26.1

26.9

Source Authors based on Federal Customs Service of the Russian Federation (2014, 2015a)

Statistic Indicators for Assessing the Measuring Efficiency to Counter Economic Sanctions

5

Table 2 Statistical indicators for evaluating the effectiveness of internal policies Indicator

Years 2015

Export growth rate, % to the previous year GDP growth rate, % to the previous year Export elasticity coefficient, times

2016

2017

2018

68.9

83.2

124.8

105.1

103.0

107.3

0.66

Manufacturing industry index, % Product import index, %

0.81

1.17

2019

2020

125.6

94.0

79.3

113.1

105.2

97.9

1.11

0.90

99.9

101.1

105.7

103.6

103.6

0.81 101.3

63.3

100.6

124.5

105.1

102.7

94.3

Industrial production index comparison ratio, %

157.8

100.5

84.9

98.6

100.9

107.4

Agricultural production index, %

102.1

104.8

102.9

99.8

104.3

101.5

65.0

92.0

114.3

102.0

99.5

99.0

153.7

109.9

92.5

101.6

104.1

101.6

01–24-coded product import index, % Agricultural production index comparison ratio, %

Source Authors based on Federal Customs Service of the Russian Federation (2014, 2015a, 2015b, 2016a, 2016b, 2017a, 2017b, 2018a, 2018b, 2019a, 2019b, 2020a, 2020b), Federal State Statistics Service of the Russian Federation (2008)

T m:i * 100%; Ti

where: Ra:p —agricultural production index comparison ratio; T a:p —agricultural production index in Russia; T i:n-CIS —import index of 01–24-coded products with non-CIS countries. The indices are calculated according to the methodological guidelines for calculating the agricultural production index. The agricultural production indices are calculated (Table 2).

The indicator’s value is less than 100 in the context of redistribution of food products since 2015. This indicates the effectiveness of redistribution for this category of goods in absolute and relative terms (Table 1). We will calculate the export elasticity coefficient (data on the country’s exports from 2015 to 2020) to assess internal policy measures to counter economic sanctions. The calculation of the elasticity coefficient is presented in Table 2. The calculated values of the elasticity coefficient indicate that, with the growth of the country’s GDP from 2015 to 2019, exports successfully developed only in 2017 and 2018: export growth rates of 1.17 and 1.11, respectively, exceeded the GDP growth rates (Table 2). The policy aimed at import substitution allowed increasing the output of products manufactured in the country. The indicators are rising, which may indicate the effectiveness of the measures taken by the government for 2019– 2020 (Table 2). The analysis of the indicators presented in Table 2 shows that the growth rate of agricultural production is higher than the volume of agricultural imports in the country. The indicator value is above 100%. The agricultural production index comparison ratio (expressed as a percentage) indicates the successful implementation of the country’s food security doctrine. The indicator is increasing, suggesting the effectiveness of the government measures in 2019–2020.

3

4

Ri:p ¼

ð4Þ

where: Ri:p —industrial production index comparison ratio; T m:i –index of the manufacturing industry in Russia; T i —index of product imports. The manufacturing industry indices are calculated and can be used to analyze quarterly and annual data (Table 2). The comparison ratio allows one to estimate the relative change in the industrial production volume compared to the import volume (Table 2). The values of the indicator of 2018 can be used as a comparison base: the comparison ratio will be 99.0%. The agricultural production index comparison ratio is as follows: Ra:p ¼

Ta:p Ti:n-CIS

* 100%;

ð5Þ

Results

The results of the statistical evaluation of the effectiveness of the counterparty country’s substitution are presented in Table 1.

Conclusion

Restrictive measures on imports of food and industrial goods allowed Russian producers to increase production volumes. The authors have developed and proposed measures

6

introduced by Russia to counter economic sanctions. Relative statistical indicators were divided into two groups: indicators for policies to counter economic sanctions. The indicators for evaluating the effectiveness of external policy include the counterpart country’s relative replacement rate and the counterpart country’s absolute replacement rate. The calculations indicate that the prohibitive measures allowed reorienting of external trade flow. The indicators include elasticity coefficient, the industrial production index comparison ratio, and the agricultural production index comparison ratio. These calculations showed that the country’s policy aimed at import substitution allowed increasing the output of products manufactured in the country.

References Abramchuk, N. A. (2013). Evaluation of the effectiveness of foreign trade of the Republic of Belarus: The commodity aspect. In V. N. Shimov (Ed.), Economic growth of the Republic of Belarus: Globalization, innovation, and sustainability (pp. 101– 102). Belarus State Economic University. Belyaev, S. A. (2020a). Analysis of external trade in Russia and Western Europe against the backdrop of economic recovery after the introduction of sanctions. Regional Bulletin, 7(46), 77–79. Belyaev, S. A. (2020b). Analysis of the dynamics of the gross internal product of Russia’s key partners in external trade. Regional Bulletin, 3(42), 87–89. Belyaev, S. A. (2020c). Russia’s foreign trade with European countries under sanctions: Assessment of dynamics and prospects. Azimuth of Scientific Research: Economics and Administration, 9(2), 71–74. https://doi.org/10.26140/anie-2020-0902-0012 Bukavnyova, N., Sazanets, V., & Morozova, O. (2020). Theoretical and practical approaches to assessing the efficiency of foreign trade non-tariff measures. Journal Economics. Law. Innovations, 4, 12–24. Federal Customs Service of the Russian Federation. (2014). Commodity composition of imports of the Russian Federation with all countries, December 2014. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2015a). Commodity composition of imports of the Russian Federation with all countries, December 2015a. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2015b). General results of external trade of the Russian Federation from January to December, 2015b. Retrieved from https://customs.gov.ru/statistic/ vneshn-torg/vneshn-torg-countries. Accessed September 10, 2020. Federal Customs Service of the Russian Federation. (2016a). Commodity composition of imports of the Russian Federation with all countries, December 2016a. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2016b). General results of external trade of the Russian Federation from January to December, 2016b. Retrieved from https://customs.gov.ru/statistic/ vneshn-torg/vneshn-torg-countries. Accessed September 10, 2020. Federal Customs Service of the Russian Federation. (2017a). Commodity composition of imports of the Russian Federation with all

N. V. Shirkunova et al. countries, December 2017a. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2017b). General results of external trade of the Russian Federation from January to December, 2017b. Retrieved from https://customs.gov.ru/statistic/ vneshn-torg/vneshn-torg-countries. Accessed September 10, 2020. Federal Customs Service of the Russian Federation. (2018a). Commodity composition of imports of the Russian Federation with all countries, December 2018a. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2018b). General results of external trade of the Russian Federation from January to December, 2018b. Retrieved from https://customs.gov.ru/statistic/ vneshn-torg/vneshn-torg-countries. Accessed September 10, 2020. Federal Customs Service of the Russian Federation. (2019a). Commodity composition of imports of the Russian Federation with all countries, December 2019a. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2019b). General results of external trade of the Russian Federation from January to December, 2019b. Retrieved from https://customs.gov.ru/statistic/ vneshn-torg/vneshn-torg-countries. Accessed September 10, 2020. Federal Customs Service of the Russian Federation. (2020a). Commodity composition of imports of the Russian Federation with all countries, December 2020a. Retrieved from https://customs.gov.ru/ folder/521. Accessed September 05, 2020. Federal Customs Service of the Russian Federation. (2020b). General results of external trade of the Russian Federation from January to December, 2020b. Retrieved from https://customs.gov.ru/statistic/ vneshn-torg/vneshn-torg-countries. Accessed September 10, 2020 Federal State Statistics Service of the Russian Federation. (2008). Gross internal product (in 2008 prices, billion RUB). Retrieved from https://www.gks.ru/bgd/regl/b08_01/IssWWW.exe/Stg/d12/2-1-11.htm. Accessed September 20, 2020. Federal State Statistics Service of the Russian Federation. (n.d.). Production some types of economic activity index for the Russian Federation constituent entities (expressed as a percentage of the previous year). Retrieved from https://rosstat.gov.ru/enterprise_ industrial. Accessed September 20, 2020a. Federal State Statistics Service of the Russian Federation. (n.d.). The production volume and agricultural production indices by categories of farms in the Russian Federation (in comparable prices, expressed as a percentage of the previous year). Farms of all categories. Retrieved from https://rosstat.gov.ru/enterprise_economy. Accessed September 20, 2020b. Punko, B. M. (2017). Analytical evaluation of indicators of efficiency of export-import of goods in the context of world regions in dynamics. Economics and Finance, 3, 77–89. Shapor, M. A. (2016). Assessing the impact of Western sanctions on the indicators of Russia’s external trade based on the developed criterion of export efficiency. In L. E. Slutsky & E. A. Khudorenko (Eds.), Actual issues of customs and Eurasian integration (pp. 77– 84). Plekhanov Russian University of Economics. Shkarpetina, A. V. (2020). American sanctions in foreign trade against Russia and their possible consequences. Bulletin of Science, 2(6), 132–136. Shved, A. V. (2020). The effectiveness of foreign trade: Approaches to statistical evaluation. Issues of Statistics, 27(4), 88–96. https://doi. org/10.34023/2313-6383-2020-27-4-88-96 Tamashevich, V. N., & Leshkevich, V. V. (2008). Evaluation of the effectiveness of the commodity structure of external trade. Statistics of Ukraine, 2(41), 29–36.

The Innovative and Sustainable Development of Energetics Under the Conditions of the Post-pandemic Recovery of the Economy Arsen S. Abdulkadyrov , Irina Yu. Eremina , Alena V. Chuprova , Irina Yu. Chuprova , and Naida A. Amadzieva

Abstract

JEL Classification

At present, the issues of decarbonisation, namely the programs on the reduction of hazardous substances emissions, are widely discussed and solved around the world. When the things causing the increased level of CO2 and the means of fighting air pollution are to be named, the discussions focus on the electric energy industry. This paper aims to study the innovative development of energetics during the post-pandemic recovery of the economy. Energetics is one of the drivers of economic development and plays a significant role in preventing climate change. The pandemic allows us to strengthen the cooperation and develop a comprehensive solution to the energy and climate problems. The scientific novelty of this work consists in the consideration of the development of green energetics during the post-pandemic recovery of the economy. The conditions for the quick recovery of the economy, which would allow counting on a more sustainable and safer future, is the increase of solidarity and creative thinking in all countries in sectors of the economy.

Q01

1

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O13

Introduction

A. S. Abdulkadyrov (&) Dagestan State Technical University, Makhachkala, Russia e-mail: [email protected]

The COVID-19 pandemic caused many deaths, and its destructive consequences exceed everything that was observed during the world financial crisis a decade ago. The market volatility also exceeded the previous crises, which characterizes the level of the economic recession. It should be noted that sources of energy that do not produce greenhouse gases, including large hydroelectric power stations and nuclear power plants, provide a large share of the world’s consumption of crude energy. As for the energy sector, estimates show that the losses caused by the pandemic equal $400 billion. A large part of these losses account for hydrocarbon markets, but the whole energy sphere suffered losses, and it will need time for recovery. Government support and advantages from reducing the costs when using solar and wind technologies could stimulate the growth of clean energy production. Energy production based on renewable sources will be growing, but the economic effect of their use might not meet the expectations that were presented in the earlier periods. The volume of investments in hydrocarbon and atomic energy decreased substantially even before the pandemic. Here the most difficult part of the work on creating the conditions for the provision of sustainable recovery of the economy should be performed.

I. Yu. Eremina . A. V. Chuprova . I. Yu. Chuprova National University of Oil and Gas “Gubkin University”, Moscow, Russia

2

Keywords

..

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Green economy COVID-19 Sustainable development of energetics Post-pandemic period

N. A. Amadzieva Institute for Socio-Economic Research of Federal State Budgetary Institution of Science of the Dagestan Federal Research Center of the Russian Academy of Sciences, Makhachkala, Russia e-mail: [email protected]

Materials

While Europe continues to move in the “green” direction, certain countries in Latin America, South Asia, and Africa, which suffered the most from the pandemic, will have

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_2

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A. S. Abdulkadyrov et al.

limited capabilities in the implementation of the energy transition. However, this might bring new prospects for investments in low-carbon energy sources. In any case, energy companies from around the world will have to re-evaluate their positions in the markets in light of the consequences of the COVID-19 pandemic (Shah, 2020). Governments of the US and EU member states aimed a large share of assets allocated for the stimulation of the economy at the renewable energy sources. The goal was also to create new jobs in the construction and production of the corresponding objects and technologies. In the USA, loans, grants, and tax subsidies helped start the growth of the capacities of solar energetics. Similarly, direct stimulating investments in the programs of development of sea wind power generation in Europe and subsidies to the corresponding energy suppliers ensured a large growth of capacities and helped Europe to become a world leader in using wind energy. In countries of Asia, the policy of stimulating the development of renewable energy sources was built, on the contrary, around the increase in the global competitiveness of the countries’ economies in production and export. For example, the priority of the “green production policy” in China, South Korea, and Japan allowed these countries to build more effective and less costly supply chains in photoelectrical and battery technologies (Wang et al., 2021). Subsidies to Chinese manufacturers of solar panels allowed for a 100% growth of their production, which led to a sharp decrease in cost and the growth of world sales (Zhang et al., 2021).

3

Literature Review

The literature review on the studied topic demonstrated the following points. A small part of $9 trillion of budget expenditures during the COVID-19 was aimed at low carbon energy and other green policy. According to Arantegui and Jäger-Waldau (2018), for a short time, the coronavirus dominated in almost all political and administrative spheres, and it had little time to solve other environmental priorities”. In the course of the deepening of the economic crisis, the attention shifted from overcoming the crisis itself to the issue of the best possible recovery (Murdock et al., 2020). There were also calls for more eco-friendly fiscal measures to guarantee that the goals in the sphere of climate will not be ignored. Some scholars emphasize the necessity for a more long-term transition to a sustainable economy with a low level of CO2 emissions due to targeted government expenditures combined with the cancelling of subsidies for hydrocarbon fuels (Wan et al., 2021). The development of green strategies for the recovery of the economy becomes

more important. Though the global CO2 emissions decreased during the pandemic, they had been growing by 1% annually before the pandemic, since the growth of the use of energy from hydrocarbon fuels exceeded the growth of the use of low-carbon fuels (Guan et al., 2020; Levine, 2021).

4

Results

Hydrocarbon fuels—oil, coal, and natural gas, still dominate the current structure of energetics. Though the share of hydrocarbon fuels in the structure of the world energy supply reduced, the total volume of supplies is still above 80%. The energy system with a large share of carbon led to an increase in CO2 emissions. Emissions of greenhouses gases aggravated global warming, damaging humanity and the environment (Meng et al., 2018; Shan et al., 2021). The COVID-19 pandemic led to serious implications not only for public healthcare but also for the energy sphere. First off, the economic decline aggravated the volatility of the renewable energy sources’ markets. Second, the reduction of prices for hydrocarbon fuels further reduced the pricing attractiveness of renewable energy sources. Third, restrictions in international trade hinder the work of the supply chains of renewable energy, threatening multiple projects. More importantly, the plans for the recovery of the economy after the pandemic are still based on investments in hydrocarbon fuels, which complicate the transition to renewable energy sources. Despite the problems that the energy transition faces, the pandemic also provides certain opportunities. The main obstacles to the transition to renewable energy sources amid the pandemic are the absence of investments and the low market demand. First, due to the decrease in government subsidies, the projects on renewable energy sources face high initial costs and technology investments. Second, lower prices for hydrocarbon fuels further complicate the competitiveness. Third, the decrease in industrial activities leads to a reduction of the demand for equipment and objects of renewable energetics, which slows down the growth of capacities in renewable energy production. Fourth, the global supply chain of renewable energy was violated as a result of mandatory trade restrictions, which made the promotion of new projects difficult. In particular, the blocking of business and large expenditures for medicine and healthcare led to substantial economic losses, which, in its turn, led to the risk of government debt and budget deficit. Governments of many countries had to redirect the assets from investments in renewable energy sources for the fight against the pandemic and healthcare. The pandemic revealed the drawbacks of the development of sources of renewable energy, which largely depended on government assets. The projects on renewable energy

The Innovative and Sustainable Development of Energetics Under …

sources often need subsidies from the state due to high initial costs, technical difficulties, and large expenditures for exploitation and service maintenance. The COVID-19 pandemic resulted in the reduction of the government’s financial support for initiatives in the sphere of renewable energy sources. Thus, companies that work with renewable energy sources faced difficulties in receiving revenues that are sufficient for compensating large expenditures. Moreover, the capital flows are reduced all over the world, so more and more investors avoid high-risk investing, which would further influence the commercial investments in renewable energy sources. This might lead to a lack of stimuli in the sphere for the renewable energy sources’ development, which will hinder the transition to green energetics. China’s investments in renewable energy sources are the largest in the world. However, the pandemic made the procurement of multiple projects on renewable energy sources difficult in the first half of 2020. From the point of view of corporate investments, industrial revenues decreased due to the pandemic, which stimulates investments in profitable enterprises. For example, in the post-pandemic period companies in heavy industry will pay initial attention to the increase in production level, to stabilise the corporate structure. COVID-19 also led to an opportunity for the transition to renewable energy sources. First off, the risks of investments in hydrocarbon fuel increased, since the global demand for it reduced. Second, governments received unprecedented opportunities to implement the policy and legislature in the sphere of reformation of energetics during the recovery of the economy. Third, the pros of renewable energy sources, which allow for remote work and the use of AI, provide an excellent possibility to substitute hydrocarbon fuel for

9

renewable energy during the post-pandemic recovery of the economy. Let us consider the green economy, which main elements are low-carbon development, effectiveness in using resources, and social integration. This economic model treats nature capital as the key economic asset and is aimed at a quick reduction of waste and limitation of resources and energy that are spent for consumption and production. The green economy might create 24 million jobs by 2030. For example, investments in renewable energy sources might create a lot of jobs in the short-term and long-term, which will lead to the acceleration of the post-pandemic recovery of the economy. National legislators should pass laws on recovery that would stimulate green investments. Let us consider the dynamics of the energy market development in Europe in 2021. The materials presented in Table 1 allow for the following conclusions regarding the innovative characteristics and sustainable development of energetics under the conditions of the post-pandemic recovery of the economy in Europe. 1. Achievement of the UN’s SDG 7 is connected to the energy transition to clean energy sources (IAEF, 2022). Clean energy sources include natural gas, nuclear energy, bioenergy, wind, water, and solar energy. 2. 2021 saw a decrease in the energy transition to clean energy consumption due to a large growth of natural gas prices and the reduction of wind and solar energy production. Accordingly, European countries were not able to ensure a sufficient level of energy security in 2021. 3. Countries of Western Europe are leaders by implementing the energy transition to clean energy sources; they are followed by countries of Southern Europe and countries

Table 1 Dynamics of the energy market development in Europe in 2020–2021 Indicator/region

2020

2021

1. Volume of natural gas consumption, billion cubic meters:

394

510

Western Europe

228

298

Southern Europe

89

116

Eastern Europe

77

96

2. Volume of coal consumption, million tonnes

56.5

64.41

2.1. Causes of changes in coal consumption: 2.1.1. Change in prices for natural gas that is used for electric energy production

Decrease in prices does not influence on the growth of coal consumption

2.1.2. Reduction of production of wind and solar energy

No significant natural influence on the decrease in the production of these types of energy

Low temperatures, the seasonal shutdown of solar and wind power plants

3. Share of ecologically clean energy (produced of natural gas and other sources of generation, except for coal) in total energy consumed in Europe

2/3

2/3

+ 585%

Source Compiled by the authors based on Moore (2021), Simon (2022), Statista.com (2022), The United Nations Statistics Division (2022)

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A. S. Abdulkadyrov et al.

of Eastern Europe. Accordingly, developed European countries follow the adopted milestone that is linked to the given energy concept. The economic crisis, which was further aggravated by the pandemic, did not allow for high results of the energy complex ecologization.

5

Conclusions

Before the 2020 pandemic and economic crisis, Europe had been demonstrating a stable energy transition, connected to the reduction in the use of coal for electric energy production. Even in 2020, countries of Europe pursued the goal of decreasing coal consumption in this sphere. As of year-end 2020, 2/3 of clean electric energy in the total volume of energy consumption in Europe was ensured. At the end of 2020, the volume of coal consumption for electric energy consumption in Europe equalled 56.5 million tonnes, and the volume of natural gas consumption for these purposes—394 billion cubic meters. The global economy has shown resilience during the COVID-pandemic, and its recovery turned out to be faster than was predicted in 2020. Still, there are difficulties with supply chains, workforce availability, and inflation. The important issue of innovative and sustainable development of energetics amid the post-pandemic recovery of the economy should be further elaborated by scholars from different countries.

References Arantegui, R. L., & Jäger-Waldau, A. (2018). Photovoltaics and wind status in the European Union after the Paris agreement. Renew Sustainable Energy Review, 81(2018), 2460–2471.

Guan, D., Wang, D., Hallegatte, S., Davis, S. J., Huo, J., & Li, S. (2020). Global supply-chain effects of COVID-19 control measures. Nature Human Behaviour, 1–11. IAEF. (2022). Sustainable development goal 7: Affordable and clean https://www.iaea.org/about/overview/sustainableenergy. development-goals/goal-7-affordable-and-clean-energy. Accessed April 04, 2022. Levine, M. D. (2021). Steele climate change: What we know and what is to be done. Wiley Interdisciplinary Review: Energy and Environment, 10. Meng, B., Liu, Y., Andrew, R., Zhou, M., Hubacek, K., & Xue, J. (2018). More than half of China’s CO2 emissions are from micro, small and medium-sized enterprises. Applied Energy, 230, 712–725. Moore, C. (2021). European Electricity Review: H1–2021. https:// ember-climate.org/insights/research/european-electricity-review-h12021/. Accessed April 08, 2022. Murdock, H. E., Gibb, D., André, T., Sawin, J. L., Brown, A., & Appavou, F. (2020). Renewables 2020-Global Status Report. Shah, S. (2020). Covid-19 and the clean energy challenges and opportunities. https://www.sc.com/en/trade-beyond-borders/covid19-clean-energy-challenges-and-opportunities/2020. Accessed April 05, 2022. Shan, Y., Fang, S., Cai, B., Zhou, Y., Li, D., & Feng, K. (2021). Chinese cities exhibit varying degrees of decoupling of economic growth and CO2 emissions between 2005 and 2015. One Earth, 4, 124–134. Simon, F. (2022). Gas crisis brought Europe’s coal exit to a halt in 2021: Study. https://www.euractiv.com/section/electricity/news/ gas-crisis-brought-europes-coal-exit-to-a-halt-in-2021-study/. Accessed April 08, 2022. Statista.com. (2022). Sources of natural gas supply in Europe in 2021, by region. https://www.statista.com/statistics/1291055/natural-gassupply-sources-europe/. Accessed April 08, 2022. The United Nations Statistics Division. (2022). Energy Statistics. https://unstats.un.org/unsd/energystats/. Accessed April 08, 2022. Wan, D., Xue, R., Linnenluecke, M., Tian, J., & Shan Y. (2021). The impact of investor attention during COVID-19 on investment in clean energy versus fossil fuel firms. Finance Research Letters, 101955. Wang, Q., Zhou, B., Zhang, C., & Zhou Do, D. (2021). Energy subsidies reduce fiscal and household non-energy expenditures? A regional heterogeneity assessment on coal-to-gas program in China. Energy Policy, 155, Article 112341. Zhang, H., Yan, J., Yu, Q., Obersteiner, M., Li, W., & Chen, J. (2021). 1.6 Million transactions replicate distributed PV market slowdown by COVID-19 lockdown. Applied Energy, 283, 116341.

Scenario Analysis of the Development of the Russian Digital Economy Until 2025 Anatoly M. Filipchenko , Natalia A. Denisova , and Mikhail A. Kovnerev

Abstract

1

The goal is to identify the key specific features and forecast parameters of the Russian digital economy sector’s formation for the period until 2025. This research is performed using a range of methods, which enable the assessment of the factual and forecast state of implementing the digital economy and the study of the experience of formulation of the goals of ICT development. The scientific novelty of this paper is connected with the characteristics and determination of the system of goals for the Russian digital economy’s development in the long term. A set of goals for the development of ICT in Russia is studied, and their possible development amid the existing global and national challenges and barriers is identified. Preference is given to the approach used for the formation of the system of state federal financing of the development and implementation of ICT. It is noted that it might be changed under the impact of the market realities. Keywords

.

.

Economic growth Financing Scenarios Digital economy

.

Digitalization

.

JEL Classification

O32

. . . O33

O47

Q01

A. M. Filipchenko (&) . N. A. Denisova Russian Academy of National Economy and Public Service Under the President of the Russian Federation, Moscow, Russia e-mail: [email protected] A. M. Filipchenko . M. A. Kovnerev Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia

Introduction

In the course of the world economy’s dealing with the crisis, the global competition as a whole and in the high-tech markets in particular grows. However, the requirements of security and an increase in the cost of production factors (e.g., workforce in China) will probably slow down global growth in the long term. Thus, it will be more difficult to ensure the annual stable growth of the Russian economy. It is particularly difficult to retain support and growth of the economy in countries that are oriented toward the predominant production and realisation (including export) of products with low value added and raw materials, the revenues from which realisation depend on market fluctuations. For the development of an economy of a larger scale under the conditions of constant challenges of globalisation and the influence of regional and national factors, there is a need to search for new approaches to fulfilment of the revenues of the state budget at all levels. Further development of the Russian economy could be oriented toward the development of a prospective sector of ICT, which demonstrates positive results against the background of the decrease in the indicators of the effectiveness of other sectors. According to analytical data, the development of Russia’s digital economy has the following specific features: growth of the national technological companies’ costs for innovations in the main spheres (in 2014–2015—6.5%, 2015–2017—1.3%, 2017–2018—7.3%, 2018–2019—39.8% and 2019–2021—91%); high positions in the world ranking of the number of patent applications for ICT innovations in various spheres (15th position as of early 2020); the largest share of patent applications in the context of ICT innovations accounts for the sphere of IT (software) (35.2%), telecommunications (17%); growth of export of products (services) in the sphere of ICT (from 10.1% in 2013 to 26.2% in 2020) (Issek.hse.ru, 2022; Rudenko et al., 2022).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_3

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Materials and Method

In this work, we use a range of general scientific and special methods. The research uses the system approach, which determines the directions for the development of the Russian digital economy until 2025 and details them in the form of separate indicators. Using the structural analysis tools, we elaborate on the main sources of financing of the national programmes of the digital economy development and calculate the indicators of its digitalisation. The application of statistical methods allows discovering the level of financial support for the programme of the digital economy development on the whole and in specific areas. The methods of program-targeted forecasting, together with indicative methods, are the basis for the forecasting of the directions and indicators of further dynamics of the studied process. The information framework of the research is the data of the Ministry of Finance of the Russian Federation and the World Bank.

3

Results

Digitalization of the Russian economy develops within a certain course, which is set by the main subjects of its formation—in this case, the government. The study of the materials for forecasting of this process has shown that the Russian Federation has a program related to the development of the digital economy (national project) (Data-economy, 2022). The scenario of the development of the digital economy in the context of this process was determined at the national level in view of the volume and structure of expenditures for implementing various forms of digital technologies (Table 1) for the period until 2025. Table 1 contains the forecast data for 2019–2024 and the indicators for 2018. These indicators of financing are systematized based on the research of certain projects of development in this sphere. The indicators of financing of the national programme of digitalization of the Russian economy for 2019–2024 in $ million are given based on the fact that the data on the GDP of the digital economy in $ million are also presented. According to the materials of Table 1, the financing of digitalization of the Russian economy accounts for 0.3% of the total GDP annually. A comparison of this indicator with the similar indicators in the world (1.42% of the world GDP) allows stating that Russia has good forecasts for the development of the digital economy until 2025 (Stelmach, 2022). It should be noted that the given expenditures on the specified articles are connected to the established goals of the economy digitalization for the period of 2019–2024. The assessment of the programme and analytical data of allows formulating the main estimated indicators of

the development of digitalization of the Russian economy until 2025. (1) Provision of the regulatory framework of digitalization envisages the development and adoption of 33 normative acts in the sphere of regulation of this direction, which take into account the implementation of the tasks of development of the national projects in the given sphere (No. 2–6 in Table 1). (2) Provision of the information infrastructure of data transfer with the use of solutions of the national producers. The national programme envisages the following until 2025: providing broadband Internet to 97% of all households, 100% of the objects and establishments of the medical sphere, bodies of public authorities and municipal power at all levels; providing the communication systems for the transport sphere (data and voice messages transfer); implementing 5G in the five key spheres of the economy. (3) Support for HR potential in the sphere of implementing digital technologies in the economy. Growth of digital literacy in high schools, universities, and public authorities bodies of all levels. (4) Provision of information security using the solutions of national companies. It is planned to implement the mechanism of the growth of security in the information data storing and transfer and protection against cyberattacks. (5) Provision of the work of digital technologies within the sectors of the economy using the solutions of national producers. The Programme sets the plan for 100% digitalization of the five sectors of the economy (transport, healthcare, education, agriculture and industry). (6) Provision of the implementation of e-government using the solutions of national producers. The initial forecasts, presented in the first edition of the Federal project on the implementation of e-government, established that by 2025 there will be provided the digitalization of information resources of public authorities of different levels, which are necessary for the provision of administrative spheres, at the level of 55%. According to Z. Mamedyarov, the year 2020 saw changes in this direction due to the influence of the pandemic (Mamedyarov, 2021). As a result, this indicator was raised up to 80%, which led to the growth of additional expenditures that are to be financed by the Ministry of Finance of the Russian Federation. Thus, the estimated growth of the indicators was considered, within which the estimated expenditures for the above measures within six federal projects of the economy

Scenario Analysis of the Development of the Russian Digital Economy Until 2025

13

Table 1 Current and estimated indicators of the financing of the national programme of digitalization of the Russian economy until 2019–2024 Federal project/sources of its financing 1. Regulatory framework of digitalization in the country, $ million, including through

Factual indicator

Estimated indicators

2018

2019

3.82 $ million

Growth by 30$ in 2019, compared to 2018. Approximately similar volume of expenditures in 2019–2024

2020

2021

2022

2022

2023

2024

2019–2024 $ 29.45 million

1.1. Federal budget, %

100%

0

1.2. Additional expenditures in the federal budget, %

0

$ 4.6 million annually

93%

1.3. Non-budget sources, %

0

$ 0.3 $ million annually

7%

2. Provision of the information infrastructure of data transfer using the solutions the national producers, $ million, including through:

$ 41.49 million

$ 13.402 million

2.1. Federal budget, %

91%

1.3% 53.5%

2.2. Additional expenditures in the federal budget, %

0

2.3. Non-budget sources, %

9%

45.2%

2.4. Provision of a package of universal communication services (standard: mobile communications, Internet coverage), $ million (100% from the Federal budget)

0

$ 788.77 million

3. Provision of HR potential in the sphere of implementing digital technologies in the economy, $ million, including through:

0

$ 2482 million

3.1. Additional expenditures in the federal budget, %

0

97%

3.2. Non-budget sources, %

3%

4. Provision of information security using the solutions from the national producers, $ million, including through:

6.71 $ million

4.1. Federal budget, %

94%

4.2. Additional expenditures in the federal budget, % 4.3. Non-budget sources, %

11% 49%

6%

4.4. additional financing in case of excess of the limits by means of the Ministry of Finance, $ million 5. Provision of implementation of digital technologies within the economy sectors using the solutions from the national producers, $ million, including through:

$ 524 million

40% $ 744.5 million

$ 8.76 million

$ 7839 million

5.1. Federal budget, %

100%

0

5.2. Additional expenditures in the federal budget, %

0

62%

5.3. Non-budget sources, %

0

38%

6. Provision of implementation of e-government with the use of solutions from the national producers, $ million, including through:

$ 64.6 million

$ 4089 million

6.1. Federal budget, %

100%

4%

6.2. Additional expenditures in the federal budget, %

0

96%

6.3. Additional financing in case of excess of the limits by means of the Ministry of Finance, $ million

0

$ 1985 million

Total volume of financing, $ million, including through:

$ 125.38 million

$ 26,672.22 $ million

Federal budget, %

97%

1%

Additional expenditures in the federal budget, %

0

59%

Non-budget sources, %

3%

40%

Additional financing in case of excess of the limits by means of the Ministry of Finance, $ million

0

$ 2729.5

Source Developed by the author on Data-economy (2022), Digital Economy of Russia (2022), World Bank (2021)

14

A. M. Filipchenko et al.

digitalization, which comprise the national programme of digitalization, were assessed. The development of the digital economy in Russia stems from the general innovative state of the economy. According to this, to accelerate the processes of digital development, the country needs effective government mechanisms, based on a successful combination of science, public authorities and business (Udaltsova, 2018). Scenario studies of the creation of such system of internation, which could be found in scientific works, focus on the influence of the political factor and strong financial support (Gashenko et al., 2018). Also, it is important to achieve balance of cost and accessibility of information resources, a high level of competition between innovative providers and equal development of different components of the noosphere. IT companies should be the basis for accelerated economic development based on digital technologies. Among the proposed model of innovative digital development, the most suitable today are the ones that allow combining efforts of different sectors of the economy. 1. Model of public–private partnership. This model implies the government’s implementing the policy of support for economic growth and technological modernisation. 2. Model of the ecosystem. This model implies the policy of active state support. However, this scenario has high risks of weak support for these initiatives from the business (Belousov et al., 2021). Therefore, the available scenarios of the development of the Russian digital economy until 2025 depend on financial support and the system of government stimulation. To reduce the dependence on these factors and to achieve a higher level of motivation of participants, it is necessary to form financial and organisational mechanisms to facilitate digital technologies development.

4

Conclusions

In the process of analysis of the results of forecasting the goals of the Russian economy’s digitalisation until 2025, we discovered the dominating focus on their provision through the federal budget (at the level of more than 90% of expenditures for the main directions). We think that such an approach is justified from the point of view of the government’s absolute control over the expedience of implementation of certain investments and their return within planned parameters. We deem it necessary to constantly increase non-budget financing, which could be ensured through the growth of private investment attraction. Here it is expedient to use a public–private partnership that is connected with the

business’s desire to participate in innovative development through the implementation of ICT, which can raise the competitive positions in the market, influence the increase in revenues from selling through the growth of products’ value added and raise national GDP; attraction of private investments in the digitalisation of critical infrastructure with the state’s guarantees, for the provision of their return. To ensure these processes, it is important to form a system of the effective interaction of business, science and public authorities. The basis of such interaction could be different scenarios, based on public–private partnership or the model of ecosystem formation. Another aspect of the digital economy development is the creation of favourable conditions for the formation and work of scientific and technical personnel in the country. It is possible to suppose that provision of grants to talented university graduates who work on innovative solutions in different spheres of the digital economy and the creation of innovative technological platforms within which certain scholars, specialists and groups of scientists in the sphere of ICT will be able to implement start-ups without investments and with further support in registration of rights for patents will help in this issue. Particular attention in the creation of a favourable climate that is aimed at the support for the subjects of the ICT sphere should be paid to offers and projects that facilitate import substitution in the main and critically important sectors. Support for this sphere, which is based on the formal and planned approach, would not be effective because of the digital economy’s focus on creativity, innovativeness and constant update. Due to the above, there is a need for individualisation of the interaction of the government, science and business, the focus on which will allow raising the competitive positions of the subjects of the market and the international prestige of the country.

References Belousov, D. R., Mikhailenko, K. V., Sabel’nikova, E. M., et al. (2021). The role of digitalization in the target scenario of russian economic development. Studies Russian Economic Development, 32, 374–382. https://doi.org/10.1134/S1075700721040055 Data-economy. (2022). Digital economy of Russia 2024: The national programme. https://data-economy.ru. Accessed April 17, 2022. Digital Economy of Russia. https://www.tadviser.ru/index.php/Cтaтья: Цифpoвaя_экoнoмикa_Poccии. Accessed April 12, 2022. Gashenko, I., Bogataya, I., Orobinskaya, I., & Zima, Y. (2018). The essence and peculiarities of implementing the optimal scenario of digital economy development in Modern Russia: Conceptual contradictions and practical examples. https://doi.org/10.1108/9781-78756-287-520181032 Issek.hse.ru. (2022). Development of the innovative activities in 2021. https://issek.hse.ru/news/760571653.html. Accessed October 10, 2022. Mamedyarov, Z. A. (2021). Accelerating digitalization during the pandemic: Global and Russian cases. Outlines of Global Transformations: Politics. Economics, Law, 14(4), 92–108.

Scenario Analysis of the Development of the Russian Digital Economy Until 2025 Rudenko, M. N., Chernyavsky, S. V., Chernyavsky, V. S., & Subbotina, Y. D. (2022). Import substitution of information and communication technologies in Russia. Vestnik Tomskogo gosudarstvennogo universiteta. Ekonomika—Tomsk State University Journal of Economics, 58, 77–87. https://doi.org/10.17223/ 19988648/58/5 Stelmach, S. (2022). In 2022, global spending on digital transformation will amount to $2 trillion doll. It Week, 6(942). https://www.itweek.

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ru/digitalization/article/detail.php?ID=204211. Accessed April 17, 2022. Udaltsova, N. L. (2018). Russian Digital Economy: State and Development Prospects. TEDS’18. In TEDS Proceedings (pp. 122–125). https://management-science.ru/site/public/elfinder/ TEDS/30_Udaltsova.pdf World Bank. (2021). GDP. https://data.worldbank.org/indicator/NY. GDP.MKTP.CD. Accessed April 17, 2022

The Post-pandemic Analysis of the Specifics of Industrial Economies’ Development from the Positions of Innovativeness and Sustainability Svetlana V. Ponomareva , Eugeny E. Zhulanov , and Elena S. Lobova

Abstract

Keywords

Purpose: The purpose of this work is to assess the influence of innovativeness and sustainability on the state of competitiveness of the industrial development of the countries of industrial specialisation under post-pandemic conditions. Design/methodology/approach: The following methods are used: method of ranking index method, and comparative analysis. Findings: We assess the influence of innovativeness and sustainability on the state of competitiveness of the industrial development of the countries of industrial specialisation under the postpandemic conditions. We also determine the rankings and values of the indicators that characterise the level of innovativeness and sustainability of the studied countries and establish the causes of the transformations. We prove the assumption of the influence of innovativeness and sustainability on the industrial development of a country (positive results are obtained by the example of Germany, China, and South Korea). We reveal that in light of a high level of innovativeness and sustainability of development, industrial economies that are oriented at the production of goods with high value-added will be able to support the functioning of sectors at the existing levels. At that, it should be stated that it is difficult for industrial economies that are oriented at the production of goods with low value-added (resource-based focus) to ensure the support of the development in the post-pandemic perspective (the example of the Russian Federation). Originality/value: The scientific novelty of this research consists in the development of the specifics of the influence of innovativeness and sustainability on the state of industrial development of the countries of industrial specialisation under the post-pandemic conditions.

Innovativeness Sustainability Industrial specialisation Post-pandemic conditions Industrial economy Competitiveness

S. V. Ponomareva (&) . E. E. Zhulanov . E. S. Lobova Perm National Research Polytechnic University, Perm, Russia e-mail: [email protected]

.. .

.

.

JEL Classification

L81

1

.

M50

.

N10

Introduction

The influence of the COVID-19 pandemic and lockdown restrictions, against the background of the general trend for stagnation, predetermined the critical risks for the perspectives of production of countries in which economies are oriented at the industrial sector. A large decrease in the activity of economic subjects in this sphere can create destructive systemic consequences for the national economies, leading to the reduction of GDP and aggravation of macro-economic imbalances, destabilization of the banking system as a result of defaults of the subjects of entrepreneurship and individual borrowers who lost their jobs, growth of unemployment, and the growth of accounts receivable and accounts payable. The lockdown measures aggravated the problems of the unequal influence of the lockdown on certain segments of the industry at the national and local levels of different countries. Sectors which products could not ensure competitiveness suffered the most. The competitive positions of national industries and industry sectors are connected to adaptability and flexibility of subjects to the market demand, predetermined by the necessity for the establishment of adequate prices, and in certain cases —production of goods with new characteristics that are needed in the modern conditions. Accordingly, under the current post-pandemic conditions, special importance belongs to the innovativeness of industry, which allows

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_4

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ensuring sustainability and competitive positions. Countries that are oriented toward the development of industrial economies have various levels of indicators of innovativeness and sustainability. A study of these indicators will allow forming a view of their real influence on the economies of this type. The main research hypothesis is the assumption regarding their influence on the development of industrial economies and their competitiveness. This work aims at assessing the influence of innovativeness and sustainability on the state of competitiveness of the industrial development of the countries of industrial specialisation under the post-pandemic conditions. The following tasks are solved. (1) discovering the level of innovativeness and sustainability of the studied countries that are oriented at the industrial economy’s development; (2) evaluating the state and perspectives of the competitiveness of industrial development from the positions of innovativeness and sustainability of the studied countries.

2

Literature Review

We studied the materials of scientific works devoted to the identification of industrial economies, including under the conditions of fighting the consequences of the pandemic, the evaluation of innovativeness and sustainability of national economies and the competitiveness of industrial development. The work by Guttmann (2022) considers and factual and estimate the consequences of the 2020 pandemic for the American economy. The author proves the direct connection between the sustainability of the country’s development and industrial development. Halbrügge et al. (2021) consider the main directions of the reaction of German and EU energy systems to the impact of the change in demand for electric energy during the 2020 pandemic and substantiate a certain decrease in eco-friendly production of electric energy. Ha and Byrne (2019) study the development of green energy in South Korea and dwell on the specifics of the national strategy in this sphere, evaluating the problems of implementing this direction. Shutters et al. (2022) elaborate on the structure and directions of the development of German industry and study sectors that ensure its competitive positions (electronics, chemicals, cars, and machine building). Wang et al. (2020) present a study of the structural changes of Chinese industry. An important contribution to

the development of the empirical framework in this sphere is the discovery of advantages of the industry development due to the focus on the production of goods with the innovative character and high value-added. The considered scientific materials contain isolated data on the industrial development of the studied countries before and after the 2020 pandemic. These works contain important provisions and results on the influence of certain components of the element of sustainability of development and innovativeness on the level of industrial development. Nevertheless, there is no clear systemic proof of the influence of transformation of innovativeness and sustainability of development on the state of national industries amid the pandemic and in the long term. Thus, there is a need for the complex research of this dependence at the modern stage of industrial economies’ development.

3

Materials and Method

In this work, we assess the influence of innovativeness and sustainability on the state of competitiveness of the industrial development of the countries of industrial specialisation under the post-pandemic conditions. The rankings method is used to evaluate the ranking of the industrial economies’ development. The index method is used to reveal the level of innovativeness and sustainability of economies. Comparative analysis allows comparing the change in the estimate indicators in the studied period (2018–2020). Table 1 shows the Rank and Score of the Competitive Industrial Performance Index (CIP) of countries, which is published annually as a part of UNIDO report for 2018– 2020. Let us consider the state of sustainability of development of the studied countries over the given period. This indicator is determined through the traditional Sustainable Society Index (SSI). The values of its components for 2020 Human Wellbeing (HW), Environmental Wellbeing (EW), and Economic Wellbeing (EcW) are determined based on the materials on their state over the given period (Gtmarket, 2020; NONEWS, 2020; NONEWSCO, 2020; UNDP, 2019). Table 2 shows the scores of the elements of SSI of the studied countries for 2018–2020. For the purpose of this research, it is necessary to find the values of the innovativeness of the studied countries’ development over the given period. The characteristics of the development shall be presented with the help of the Global Innovation Index (GII), which shows the level of the countries’ achievements in the sphere of innovations. Table 3 presents the dynamics of GII for the studied countries for 2018–2020.

The Post-pandemic Analysis of the Specifics …

19

Table 1 Rank and score of CIP of countries for 2018–2020 Country/indicators

Changes, ±

Values 2018

2019

2020

2018–2019

2019–2020

Rank

1

1

1

0

0

Score

0.47009

0.47

0.425

−0.00009

−0.045

1. Germany

2. China Rank

2

2

2

0

0

Score

0.38

0.39

0.38

0.01

−0.01

Rank

3

5

3

2

−2

Score

0.36

0.35

0.37

−0.01

0.02

3. South Korea

4. USA Rank

4

3

4

−1

1

Score

0.35

0.35

0.345

0.00

−0.005

Rank

5

4

5

−1

1

Score

0.35

0.35

0.325

0.00

−0.025

5. Japan

6. Russian Federation Rank

32

34

35

2

1

Score

0.097

0.097

0.096

0.00

−0.001

Source Compiled by the authors based on Euroosvita (2019), United Nations Industrial Development Organization (2021), United Nations Industrial Development Organization (2022)

4

Results

Let us perform an assessment of the level of the sustainability of the studied countries that are oriented at the development of the industrial economy (bases on the Sustainable Society Index). Germany is ranked 1st in the ranking; this was achieved by means of the high values of the three components of the indicators. As for HW (Table 2), its high value was ensured by the following: the maximum level of the indicator of satisfaction of needs, high level of the indicator of personal development and healthcare, and stability of public development. In China, the element HW was slightly reduced (7.8 in 2020 compared to 7.86 in 2019). The environmental component remained almost unchanged. South Korea was able to ensure a rather high value of the elements of SSI, especially HW, which was higher than in Germany in 2019 and 2020. The economic components is also high (EcW equalled 7.42 in 2019, and 7.4 in 2020). Given the high values of the two above components, the environmental component was not high, taking into account the level of development of such country as South Korea. According to Ha and Byrne (2019), this is largely due to the

low level of renewable energy and decrease in wind and solar power stations. This is caused by the low level of their effectiveness and the absence of necessary support from the government. The USA was ranked 4th in the SSI ranking for 2018– 2020 (Table 2). The environmental component EW demonstrated a slight decrease. The economic component EcW improved in 2020 compared to 2019. According to (Guttmann, (2022), the periodic reduction of the economic activity due to the pandemic in the USA led to the aggravation of the economic state (GDP) in 2020 (the value of EcW equalled 5.3, exceeding the average level). During the pandemic, Japan demonstrated a growth in its economy (the value of EcW equalled 5.6, growing by 0.12 compared to 2019). The level of environmental component (EW) and economic component grew in 2020. According to Kersey (2021), United Nations Industrial Development Organization, (2021), United Nations Industrial Development Organization (2022), the use of the environmental component grew and influenced the growth of the economy (development of car industry with the focus on a higher control over emissions and the maximum reduction of defects ensured the decrease in expenditures for taxes and waste management and led to the growth of sales).

20 Table 2 Scores of the elements of SSI of the studied countries for 2018–2020

S. V. Ponomareva et al. Country/indicators

Changes, ±

Values 2018

2019

2020

2018–2019

2019–2020

8.7

8

8

−0.70

0.00

1. Germany HW EW

3.1

4.44

4.2

1.34

−0.24

EcW

8.1

7.58

7.5

−0.52

−0.08

7.3

7.86

7.8

0.56

−0.06

2. China HW EW

3.4

3.94

3.9

0.54

−0.04

EcW

5.2

6.00

6

0.80

0.00

8.4

8.71

8.6

0.31

−0.11

3. South Korea HW EW

1.8

2.14

2.1

0.34

−0.04

EcW

4.6

7.42

7.4

2.82

−0.02

7.4

8.83

8.1

1.43

−0.73

4. USA HW EW

2.4

3.31

3.2

0.91

−0.11

EcW

4

5.48

5.3

1.48

−0.18

HW

8.7

8.93

8.7

0.23

−0.23

EW

2.6

3.20

3.3

0.60

0.10

EcW

3.8

5.48

5.6

1.68

0.12

7.6

7.91

7.2

0.31

−0.71

5. Japan

6. Russian Federation HW EW

2.7

3.74

3.6

1.04

−0.14

EcW

5.4

5.98

3.9

0.57

−2.08

Source Compiled by the authors based on UNDP (2019), United Nations Industrial Development Organization (2021), United Nations Industrial Development Organization (2022)

Analysis of the research results (Table 2) shows that Russia demonstrated a decrease in the main components of SSI. At a rather high level of HW (7.2), there were medium values of other two components. The reduction of the economic component was caused by the pandemic and crisis and external factors (sanctions and problems with import substitution). The most significant reduction was observed in the sphere of the main industrial sectors, car sales, IT, and banking sectors (World Bank Group, 2021). Let us consider the state of innovativeness of the studied countries over 2018–2020 (Table 3). Three out of six studied countries (Germany, China, and the USA) were able to keep Rank GII in 2020 at the 2019 level. At that, South Korea in 2020 ensured the growth of its ranking (from 11 to 10th) due to the innovative development in the sphere of R&D and human capital.

Let us perform an analysis of the state and perspectives of the competitiveness of industrial development from the positions of innovativeness and sustainability of the studied countries. Based on the comparison of the dynamics of change of the studied Score CIP (Table 1) and Score of the elements of SSI (Table 2), Score GII of countries (Table 3) over 2019– 2020, the following has been discovered. Germany was ranked 1st in the ranking by competitive positions of the industry (CIP) before the pandemic (2018– 2019) and during the pandemic (2020). Despite the reduction, the German industry remains the most competitive industry in the world. According to Shutters et al. (2022), its main advantages are provided by the electronic, chemical, and car sectors, and machine building. High value-added of the products ensures the industry’s competitiveness.

The Post-pandemic Analysis of the Specifics … Table 3 Rank and score of GII of the studied countries in 2018– 2020

Country/indicators

21 Changes, ±

Values 2018

2019

2020

2018–2019

2019–2020

Rank

9

9

9

0

0

Score

58.03

58.19

56.55

0.16

−1.64

Rank

17

14

14

−3

0

Score

53.06

54.82

53.28

1.76

−1.54

Rank

12

11

10

−1

−1

Score

56.63

56.55

56.11

−0.08

−0.44

1. Germany

2. China

3. South Korea

4. USA Rank

6

3

3

−3

0

Score

59.81

61.73

60.56

1.92

−1.17

Rank

13

15

16

2

1

Score

54.95

54.68

52.7

−0.27

−1.98

5. Japan

6. Russian Federation Rank

46

46

47

0

1

Score

37.9

37.62

35.63

−0.28

−1.99

Source Compiled by the authors based on Cornell University, INSEAD and the World Intellectual Property Organization (2021)

China is ranked 2nd in the CIP ranking, and this position did not change during the pandemic. A significant improvement of the state of industrial development (growth of the CIP position from 17th in 2018 to 14th in 2019–2020) is connected to structural changes, namely the development of car, pharmaceutical, chemical, space, and electronic industries, which products have high value-added (Wang et al., 2020). South Korea was able to ensure industrial development during the pandemic due to the growth of innovativeness. Thus, we prove—by the example of Germany, China, and South Korea—the hypothesis on the influence of innovativeness and sustainability on a country’s industrial development. Given the substantial development of innovativeness and sustainability, which influence the industry, it is possible to ensure the effective development of national industries in the post-pandemic period. The USA demonstrated a certain decrease in industrial development due to the reduction of the sustainability of development (a component of SSI on human development) and the environmental and economic components. Despite a certain reduction of industrial development, the USA is one of the world leaders in this sphere, which is supported by a high level of innovativeness. It will also influence the next post-pandemic period.

Similarly to the USA, Japan demonstrated a reduction in industrial development, which could be explained by the decrease in innovative development and the component of sustainability. The consequence of the 2020 pandemic had a negative influence on the industrial development of the Russian Federation. These changes include the decrease in the level of innovativeness and sustainability of development. The consequences of such transformations might become the preconditions for further aggravation within all sectors of the industry.

5

Conclusion

We evaluated the influence of innovativeness and sustainability on the state of competitiveness of the industrial development of the countries of industrial specialisation under the post-pandemic conditions and discovered the rankings and values of the indicators that characterize the level of innovativeness and sustainability of the studied countries. We also proved the assumption on the impact of innovativeness and sustainability on the industrial development of a country (the positive results were obtained by the example of Germany, China, and South Korea). Due to the

22

high level of innovativeness and sustainability of development, industrial economies that are oriented at the production of goods with high value-added will be able to keep the functioning of sectors at the existing levels. At that, it should be stated that it is rather difficult for industrial economies that are oriented at the production of goods with low value-added to ensure the development in the post-pandemic perspective.

References Cornell University, INSEAD, and the World Intellectual Property Organization. (2021). Global Innovation Index 2020. http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed March 10, 2022. Euroosvita. (2019). Country ranking by GDP 2019. http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed March 10, 2022. Gtmarket. (2020). Human Development Index 2020. http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed March 10, 2022. Guttmann, R. (2022). Virus economics: An American tragedy. Revue de la Régulation - Capitalisme, institutions, pouvoirs. Association Recherche et Régulation, 29. https://journals.openedition.org/ regulation/17322. Accessed March 11, 2022. Ha, Y.-H., Byrne, J. (2019). The rise and fall of green growth: Korea’s energy sector experiment and its lessons for sustainable energy policy. WIREs Energy Environment, 8. https://wires.onlinelibrary. wiley.com/doi/full/10.1002/wene.335. Accessed March 11, 2022.

S. V. Ponomareva et al. Halbrügge, S., Schott, P., Weibelzahl, M., Buhl, H. U., Fridgen, G., & Schöpf, M. (2021). How did the German and other European electricity systems react to the COVID-19 pandemic? Applied Energy, 285. https://www.sciencedirect.com/science/article/pii/ S0306261920317475! Accessed March 11, 2022. Kersey, J. (2021). Japan—Environmental sustainability and efforts to go green. https://www.humblebunny.com/japan-environmentalsustainability-efforts-go-green/. Accessed March 10, 2022. NONEWS. (2020). Gross domestic product (GDP). https://nonews.co/ directory/lists/countries/gdp-ppp. Accessed March 10, 2022. NONEWSCO. (2020). Environmental Performance Index. https:// nonews.co/directory/lists/countries/ecology. Accessed March 10, 2022. Shutters, S. T., Seibert, H., Alm, B., & Waters, R. (2022). Industry interconnectedness and regional economic growth in Germany. Urban Science, 6(1), 1–12. UNDP. (2019). Human Development Report 2019. https://hdr.undp. org/sites/default/files/hdr2019.pdf. Accessed March 10, 2022. United Nations Industrial Development Organization. (2021). Competitive Industrial Performance Report 2020. https://stat.unido.org/ publications. Accessed March 10, 2022. United Nations Industrial Development Organization. (2022). CIP 2021. https://stat.unido.org/database/CIP%202021. Accessed March 10, 2022. Wang, Y., Ke, Y., Ma, X., & Ren, Y. (2020). What is the industrial structure changes of China? Journal of Systems Science and Information, 8(6), 487–503. World Bank Group. (2021). Russia’s economic recovery. Gathers Pace. https://documents1.worldbank.org/curated/en/ 099100111302157406/pdf/ P177562047516f01709b360c30dafa5850d.pdf. Accessed March 10, 2022.

The Post-pandemic Model of the Sectoral Development of Emerging Economies’ Industry Yahya G. Buchaev , Ahmed G. Buchaev , Gamid A. Buchaev , Salihbek G. Abdulmanapov , and Zalina M. Abdullaeva

Abstract

Keywords

Purpose: The purpose is to determine the post-pandemic models of the development of emerging economies’ industry. Design/methodology/approach: The following methods are used: statistical method, structural analysis, and comparative analysis. Findings: The post-pandemic models of sectoral development of emerging economies’ industry are formulated by the example of Turkey, Poland, and Russia. Neither of the three countries conducted a cardinal restructuring of the industrial spheres, though Turkey and Poland are peculiar for the growth of a part of the production of competitive products with high value added. It is discovered that Russia, unlike the given countries, demonstrated the growth of production with low value added. The sectoral structure of industry of these three countries did not have a revolutionary model of development, though Poland demonstrated large achievements in the direction of its perspective application. The state of the Russian industry's structure does not allow stating the possibilities of such positive changes in the long term. As of now, under the conditions of overcoming the consequences of the pandemic and other crisis phenomena, this sphere is developing in the evolutionary direction. Originality/value: The scientific novelty of this paper consists in revealing the characteristics of the post-pandemic models of development of emerging economies’ industry.

Post-pandemic models of sectoral development of industry Emerging economy Restructuring High value added Competitive characteristics Crisis Modernization Innovativeness

Y. G. Buchaev (&) . A. G. Buchaev . G. A. Buchaev . S. G. Abdulmanapov . Z. M. Abdullaeva Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected] A. G. Buchaev e-mail: [email protected]

.. .

.

. ..

JEL Classification

L81

1

.

M50

.

N10

Introduction

Many emerging economies have substantial mineral resources but are not peculiar for stable industrial development. A share of products with high value added of these countries is very low in the total cost of products issued by the sectors of the national industry. Due to the large dependence on external changes (fluctuations of prices for resources, political factors, and complexities of logistics during various crises), there emerges a necessity for structural transformations of the list of the main spheres of industry in the context of selecting the priority of development for the spheres which products are in demand and allows ensuring high value added. The crisis tendencies in the emerging economies’ industry were formed long before the pandemic. 2019 was peculiar for downward trends in the export-oriented productions of the resources spheres. During this period, the industrial crisis had the features of the systemic character: growth of the negative tendencies regarding the reduction of external and internal demand for products, aggravation of logistical problems, and decrease in world prices for resources. The start of the pandemic and the introduction of lockdown restrictions further increased the influence of the above factors on the industrial development of countries of this category. Taking into account the specifics of the development of the crisis and the change of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_5

23

24

Y. G. Buchaev et al.

demand and offer, there emerges the necessity to improve the sectoral structure of these countries’ industries in view of their specifics and potential. Studying the perspective post-pandemic models of the development of industry spheres of the given countries allows determining the strategic directions of functioning. The main research hypothesis is the idea of the necessity to change the structure of industries of emerging economies, which will allow raising the level of its development. The purpose of this paper is to determine the post-pandemic models of sectoral development of emerging economies’ industries. The following tasks are solved within this purpose: (1) Determining the characteristics of the structure of the given countries’ industries before the COVID-19 crisis and during the pandemic; (2) Forming the factual and possible models of the development of the sectoral structure of the above countries taking into account their specifics.

2

Literature Review

Within the literature review, the provisions of scientific works in the sphere of assessment of the national industry of emerging economies are studied, and the directions of its optimization for overcoming the crisis phenomena of the pandemic are considered. Cortez (2017) considers the components of the formation of the indicator of the level of poverty of countries and provides the characteristics of evaluation and criteria of these elements, and proves the connection between the given variables and a country’s poverty level. Dean et al. (2021) study the directions and perspectives of restoration of the industry after the consequences of the pandemic by the example of Australia. Special attention is paid to the evaluation of the development of the industry with the use of renewable energy sources, which ensure the country's sustainability. An important aspect of this work is proving the connection between the competitiveness of the industry and the indicator of the sustainability of the development of the country by the main indicators: environmental component, human development, and economic development. The works of (Haoming et al., 2018; Louçã, 2020; Wang et al., 2022) dwell on the models and directions of the sectoral development of the industry of countries under the conditions of overcoming the systemic economic crises. The importance of these studies is due to the direct and indirect determination of two possible models of industry development: revolutionary and evolutionary.

The analysed provisions of the scientific works contain important methodological data regarding the potential models of industry development and the materials regarding the evaluation of the connection between variables that identify the course of industrial development. However, there is no complex approach to the evaluation and forecasting of the perspective models of this category, which predetermines the importance of this research.

3

Materials and Method

This research implies the determination of the post-pandemic models of development of emerging economies’ industry. The achievement of this goal is connected to the use of certain methods. The statistical method is used to establish statistical data in this sphere. Structural analysis is used to evaluate the structure of the spheres of national industries. Comparative analysis is used to assess the changes in the structure of national industries. The research is performed by the example of certain European emerging economies (Turkey and Poland) and Russia. The research period is 2018–2020. An important estimate indicator that is used in this research is the indicator of industry of these countries (Table 1). Also, to determine the models of sectoral development of industry after the pandemic (as a result of 2020), it is necessary to evaluate the industrial structure of these countries (Table 2). To evaluate the general level of development of the spheres of industry, the Competitive Industrial Performance Index (CIP) of countries is used. It is published annually by UNIDO. Table 3 contains Score and Rank CIP for 2018– 2020. CIP characterizes three key directions, namely: production and export orientation; modernization and technology; and role in the development of the world industry. High values of these characteristics (Score) of the spheres of industry demonstrate innovativeness, high value added of its products; low values demonstrate a country’s orientation at resource-based development and manufacture of products with low competitive characteristics for the world market (Cortez, 2017). It should be noted that a high Score CIP within the orientation and export orientation, modernization, and technology of products of the industry is ensured by the high value of the economy's sustainability. According to Dean et al. (2021), they are formed not only due to the economic component, but also take into account the environmental component and human development. That is, countries’ orientation at high values of the Sustainable Society Index is one of the preconditions of ensuring the high value of CIP.

The Post-pandemic Model of the Sectoral Development of Emerging Economies’ Industry Table 1 Volumes of industry in Turkey, Poland, and Russia in 2018–2020

Country/indicator of industry

25 Change, ±, %

Value 2018

2019

2020

2018–2019

2019–2020

29.405

27.236

28.019

−2.169

0.783

1. Turkey Industry % of GDP GDP, $ billion

778.472

761.004

719.955

−17.468

−41.049

Industry, $ billion

228.910

207.267

201.724

−21.6426

−5.54286

28.537

27.978

27.682

−0.559

−0.296

2. Poland Industry % of GDP GDP, $ billion

587.412

597.281

596.624

9.869

−0.657

Industry, $ billion

167.630

167.107

165.157

−0.52248

−1.94982

32.554

32.273

29.986

−0.281

−2.287

3. Russia Industry % of GDP GDP, $ billion

1657

1687

1483

30

−204

Industry, $ billion

539.420

544.446

444.692

5.02573

−99.7531

Source Compiled by the authors based on Worldbank (2022)

The presented statistical and analytical data shall be used to assess the factual model and determine the perspective models of sectoral development of the studied countries’ industries. Identification of the models of sectoral development of the studied countries’ industries is performed based on the revolutionary and evolutionary approaches to the modelling in this sphere, namely:

The characteristics of the structure of the considered countries’ industries before the COVID-19 crisis and during the pandemic shall be further determined. Based on the analysis of the presented results (Table 2), the following was revealed:

• approach of Louçã, (2020) proposes the assessment of the existence and perspectives of development of the evolutionary model when industry and its spheres develop with the orientation at gradual modernization and growth of products’ value added. Assigning the character of development of the spheres of the industry to this model is performed in case of reduction of Score CIP (competitive characteristics of products (modernized production, innovativeness, and high value added)), reduction of the volumes of industry, and reduction of the share of products with high value added in its total volume; • revolutionary model (Haoming et al., 2018; Wang et al., 2022), which is based on the character of development that envisages deep and quick changes in the structure of the industry, which are oriented at implementing modernization and innovations, increase in products’ value added, and growth of sustainability. Assigning the development of the spheres of the industry to this model is performed in case of growth and support of Score CIP (competitive characteristics of products (modernized production, innovativeness, and high value added)), growth of the volumes of industry, and growth of the share of products with high value added in its total volume.

• The structure of the industry in Turkey in 2018–2020 demonstrated certain changes caused by the crisis phenomena. In 2019, compared to 2018: decrease in demand for products with low value added (Basic metals), decrease in the volumes of production in the spheres with high value added due to the problems with components’ supply (automotive industry, rubber and plastic products, and machinery and equipment), and increase in industries oriented at the issues of products with high value added (Industry electrical equipment, Chemical industry, Textile industry). It is possible to state that despite a certain growth in the manufacture of products with high value added, it was not substantial. In 2020, compared to 2019: increase in the manufacture of products with high value added. This period was peculiar for the decrease in production in the sphere of electrical equipment, which was caused by the problems with the components’ supply and the pricing factor. In 2018–2020, Turkey did not ensure any significant transformations of the structure of industrial spheres, though there was a certain growth in the spheres oriented at the manufacture of products with high value added. The key role during the pandemic (and before) belonged to the food industry (manufacture of products with low value added, which sales depend on the fluctuation of prices);

4

Results

26 Table 2 The structure of the industry in Turkey, Poland, and Russia in 2018–2020 (based on the volume of sales)

Y. G. Buchaev et al. Country/indicator of industry

Change, ± %

Value, % 2018

2019

2020

2018–2019

2019–2020

13

13.8

14.2

0.8

0.4

13.1

11.1

11.3

−2

0.2

1. Turkey Food industry Metallurgical industry: Basic metals Metal products

5.3

5.5

6.2

0.2

0.7

Automotive industry

10

9.8

9.4

−0.2

−0.4

Textile industry

7.8

8.1

8.2

0.3

0.1

Chemical industry

5.6

5.8

6.3

0.2

0.5

Industry of rubber and plastic products

5.3

5.2

5.4

−0.1

0.2

Industry of electrical equipment

4.9

5.6

5.1

0.7

−0.5

Machinery and equipment

4.4

4.3

4.7

−0.1

0.4

Industry of wearing apparel

4.6

4.9

4.4

0.3

−0.5

2.7

2.6

2.5

−0.1

−0.1

2. Poland Industry of mining and quarry products Food industry

19.8

20.3

21.1

0.5

0.8

Textile industry

0.4

0.5

0.8

0.1

0.3

Industry of wearing apparel

2.9

2.6

0.4

−0.3

−2.2

Woodworking industry

17.4

17.2

16.8

−0.2

−0.4

Oil refining and coal industry

8.8

8.7

6.5

−0.1

−2.2

Pharmaceutical industry

0.1

0.6

1

0.5

0.4

Industry of rubber and plastic products

5.1

6.6

7.5

1.5

0.9

Industry of products from other non-metallic mineral raw materials

6.8

6.7

6.6

−0.1

−0.1

Basic metals

8.4

8.3

8.2

−0.1

−0.1

Metal products

6.2

6.1

6

−0.1

−0.1

Metallurgical industry:

Computer and electronic industries

1.2

4.5

8.2

3.3

3.7

Automotive industry

5.6

4.5

3.8

−1.1

−0.7

Machinery and equipment

14.6

10.8

10.6

−3.8

−0.2

3. Russia Mining industry

32.1

32.19

34.54

0.09

2.35

Food industry

10.9

11

16.34

0.1

5.34

Textile industry, apparel

0.8

0.81

1.14

0.01

0.33

Woodworking industry

5

5.1

5.37

0.1

0.27

Oil refining and coal industry

13.8

14.12

17.25

0.32

3.13

Chemical industry

4.6

4.8

7.56

0.2

2.76

Industry of rubber and plastic products

0.7

0.85

2.14

0.15

1.29

Industry of products from other non-metallic mineral raw materials

3.3

3.44

4.02

0.14

0.58

Metallurgical industry: Basic metals

5.1

5.15

10.4

0.05

5.25

Metal products

6

6.24

7.02

0.24

0.78

Machinery and equipment

4.1

4.2

6.97

0.1

2.77

Computer and electronic industries

7.9

6.3

6.27

−1.6

−0.03

Vehicle and equipment industry

5.7

5.8

6.75

0.1

0.95

Source Compiled by the authors based on Federal State Statistics Service (2022, Główny Urząd Statystyczny (2022), Turkstat (2022)

The Post-pandemic Model of the Sectoral Development of Emerging Economies’ Industry Table 3 Score and rank CIP of the studied countries for 2018– 2020

Country/indicators 1

27 Changes, ±

Values 2018

2019

2020

2018–2019

2019–2020

2

3

4

5

6

1. Turkey Rank

29

28

29

−1

1

Score

0.1206

0.124

0.121

0.0034

−0.003

Rank

22

23

23

1

0

Score

0.1587

0.16

0.16

0.0013

0

Rank

32

34

35

2

1

Score

0.097

0.097

0.096

0

−0.001

2. Poland

3. Russia

Source Compiled by the authors based on United Nations Industrial Development Organization (2022)

• The structure of the industry in Poland in 2018–2020 also changed a lot due to the systemic crisis and pandemic of 2020. It is possible to state that Poland demonstrated a certain transformation of the structure of industrial sectors in the direction of provision of growth of products’ competitiveness through the manufacture of products with high value added; • The structure of Russia’s industry in 2018–2020 was peculiar for certain transformations; in 2018–2020, there was no significant growth of the issue of competitive products, but there was a growth of products with low value added. It is especially peculiar for 2020, when the manufacture of products of the mining industry (+ 2.35%), food industry (+5.34%), and basic metals (+5.25%) increased. Based on the analysis of the presented results (Tables 1, 2, and 3), the following could be stated: • The three studied countries did not ensure the implementation of the revolutionary model of development of the sectoral structure of the industry. At that, Poland has substantial perspectives of its use, since it was able to ensure the support of Score CIP and increase the share of the manufacture of products with high value added (stable tendency); • The evolutionary model is peculiar for Turkey and Russia, though the former demonstrates certain perspectives of formation of the revolutionary development of the industry structure. Russia has the evolutionary model within the factual model and in the short-term. Thus, the assumption on the necessity for changing the structure of the industries of emerging economies to raise the efficiency of its development was proved. In particular, the

need for the implementation of the manufacture of competitive products with high value added was demonstrated.

5

Conclusion

The authors determined the post-pandemic models of sectoral development of emerging economies’ industry by the example of Turkey, Poland, and Russia. It was discovered that neither county (of the three) performed a cardinal restructuring of the spheres of industry, though Turkey and Poland are peculiar for the growth of the share of manufacture of competitive products with high value added. Unlike these two countries, Russia demonstrated the growth of manufacture of products with low value added. It was proved that the sectoral structure of the three countries’ industries was not characterized by the revolutionary model of development, though Poland demonstrated decent achievements in the direction of its perspective use. In Russia, under the conditions of the fight against the consequences of the pandemic and crisis phenomena, this sphere moves in the evolutionary direction.

References Cortez, M. V. T. (2017). Human development and competitive industrial performance index: Predictors of poverty incidence across countries. Multidisciplinary Research Journal, 5, 18–22. Dean, M., Rainnie, A., & Stanford, J. (2021). Industrial policy-making after COVID-19: Manufacturing, innovation and sustainability. The Economic and Labour Relations Review, 32(2), 283–303. Federal State Statistics Service. (2022). Official Statistics. https://eng. rosstat.gov.ru/. Accessed March 16, 2022. Główny Urząd Statystyczny. (2022). Produkcja wyrobów przemysłowych w 2020 roku. https://stat.gov.pl/obszary-tematyczne/ przemysl-budownictwo-srodki-trwale/przemysl/produkcja-

28 wyrobow-przemyslowych-w-2020-roku,8,4.html. Accessed March 16, 2022. Haoming, G., Liu, W., Zhang, P., & Lo, K. (2018). Analyzing industrial structure evolution of old industrial cities using evolutionary resilience theory: A case study in Shenyang of China. Chinese Geographical Science, 28(3), 516–528. Louçã, F. (2020). Chris freeman forging the evolution of evolutionary economics. Industrial and Corporate Change, 29(4), 1037–1046. Turkstat. (2022). Annual Industrial Products (Prodcom) Statistics, https://data.tuik.gov.tr/Bulten/Index?p=Annual-Industrial2020. Products-(PRODCOM)-Statistics-2020-37494. Accessed March 16, 2022.

Y. G. Buchaev et al. United Nations Industrial Development Organization. (2022). Competitive Industrial Performance Report 2020. https://stat.unido.org/ publications. Accessed March 16, 2022. Wang, F., Wang, R., & He, Z. (2022). Exploring the impact of “Double Cycle” and industrial upgrading on sustainable high-quality economic development: application of spatial and mediation models. Sustainability, 14. https://www.mdpi.com/2071-1050/14/ 4/2432. Accessed March 16, 2022. Worldbank. (2022). Data. https://data.worldbank.org/country/. Accessed March 16, 2022.

Perspective Role of Digitalization in the Well-Balanced Development of the Global Economic System of the Future Karine S. Khachaturyan , Vladimir K. Spilnichenko , and Maxim S. Youmatov

Abstract

Keywords

The purpose of this work is to study the role of digitalization in the well-balanced development of the global economic system in the future using China as an example. The ongoing digitalization leads to changes in the global economy through the reduction of costs of collection, storing, and processing of data; decrease in production chains, etc. The increasing processes of digitalization, which take place around the world, lead to the erasure of geographical and physical borders, which opens new opportunities for countries and entrepreneurship and stimulates the development of competitiveness within countries (at the regional level) and in the world, on the whole (at the global level). China was selected as a research object in this paper since its share in the global economy and digitalization is undisputable. According to the recent forecast from PwC, the Chinese economy will overcome the European economy by volume and will preserve its position in the mid-term (China’s GDP. Tadviser. https://www.tadviser.ru/index. php/Cтaтья:BBП_Китaя. Date of access: 27 Apr 2022). China’s role (similarly to the USA and the EU) in the well-balanced development of the future global economic system is also very important.

Digitalization Economic growth Well-balanced development Sustainable development Sustainable development goals

K. S. Khachaturyan (&) . M. S. Youmatov Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] M. S. Youmatov e-mail: [email protected] V. K. Spilnichenko Russian State University for the Humanities, Moscow, Russia e-mail: [email protected]

..

. .

JEL Classification

O32

1

. . . O33

O47

Q01

Introduction

Digitalization is the implementation of modern digital technologies in various spheres of life and production. At the global level, digitalization is a concept of economic activity that is based on digital technologies, which are implemented in different spheres of life and production. This is observed in all countries of the world. The use of digital technologies leads to multiple positive economic and social effects. The digital economy allows people to move away from routine actions and to deal with strategy, eliminating obstacles in the development of entrepreneurial activities and stimulating the growth of income. Digitalization also facilitates the development of e-commerce, which accounts for more than half of the world's sales of services. Digital globalization could be considered a driving force of the world economy’s development, which might lead to substantial economic changes and perform impact on world trade, the international movement of capital, and the state of the labour market. It might also implement deep and wide changes in the production and social processes. Digital globalization has a key role in the increase in the competitiveness of companies, countries, and economic unions. It has a large potential for developing countries, for which these changes can mean economic growth, increase in labour efficiency, reduction of transaction costs, and expansion of access to the world markets.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_6

29

30

2

K. S. Khachaturyan et al.

Materials and Method

An important priority of the successful development of a country under the conditions of instability and globalization of the competitive environment is the achievement of the Sustainable Development Goals. These goals were adopted in 2015 within the agenda until 2030 by the UN. There are 17 SDGs in total; they are related to the environmental, economic and social spheres. In the past, the programmes of development of countries within the UN envisaged primarily the goals in the sphere of the economy (Kroll et al., 2019). The necessity for the development of the above three directions is due to the fact that they are mutually reinforcing, and their development will allow ensuring the improvement in each sphere. China, as one of the world economic leaders, has its specifics in achieving the above goals of stabilisation development. Kroll et al. (2019) study the list, characteristics and the level of achieving the Sustainable Development Goals, using a complex approach to evaluating the achievements (synergetic results) in the sphere of implementation of 17 SDGs, which include strengthening of the economy and fight against poverty based on innovations and development of infrastructure. Jovanovic et al. (2018) present an assessment of the influence of the implementation of digital technologies on the level of national sustainable development. Despite the use of traditional approaches to the assessment (standard indices, which identify the given processes), the researchers contribute to the determination of the characteristics of the elements of these variables at the global and national levels. The results of the analysis demonstrate the effect of the two variables and the necessity for a wide implementation of digitalization. Xu et al. (2021) present the analysis of the impact of the 2020 pandemic on the digitalization of China and its further economic development. The implications of this research include the comparison of the transformations of the digital economy in the period of the 2009 pandemic and the 2020 pandemic. The digital potential of China was sustainable to such challenges in 2020, which led only to a slight decrease in the development of digitalization. The authors note that the digital economy performed the role of intermediary in supporting the sustainability of the country’s economic development. Liu et al. (2021) perform an analysis of the influence of risks of the pandemic on the development of all sectors of the Chinese economy. The authors determine the key spheres that require constant monitoring and the timely use of the stabilising levers of influence.

3

Results

The indicators of the achievement of the Sustainable Development Goals are systematised and reflected in the annual report by Cambridge University. This report assesses the universal indicator of implementing 17 SDGs at the level of each country—the Sustainable Development Index (SDG Index) (Cambridge University Press, 2022). This report also describes the character and level of achievement of 17 SDGs. Based on the analysis of the materials of Jovanovic et al. (2018), we propose the following hypothesis: there exists an influence of digitalization (its elements) on the sustainable development of countries on the whole and in the context of the isolated Sustainable Development Goals. Due to the above, together with the assessment of the Sustainable Development Index of China in dynamics, let us present the assessment of the dynamics of the indicator of digitalization of the country, through the Digital Competitiveness Index (Table 1) (IMD, 2022). We analyse the achievement of the specific Sustainable Development Goals and the results of implementing digitalization during the given period. Based on (Cambridge University Press, 2022; IMD, 2022), it is determined that a decrease in the rank and increase in the score show the improvement of the country’s position in the global market. The analysis (Table 1) showed that the Digital Competitiveness Index demonstrated stable improvement over the period of 2017–2021. Its positive change was not influenced by the consequences of the US-China trade wars or the 2020 pandemic. In 2020, with the improvement of the world ranking (16th position compared to 22nd position in 2019), there was a certain decrease in the score of this indicator. This was due to a certain decrease in the investments in the economy’s digitalization. The influence of the pandemic, which negatively influenced the economies of many developing and developed countries, was not that destructive for China, which is also true for the digital economy and its components (Xu et al., 2021). The research shows that an improvement of the Digital Competitiveness Index led to an improvement of the Sustainable Development Index in 2017–2020 гoдoв. Among the achieved Sustainable Development Goals, the ones related to the social and economic spheres can be mentioned. These results were reached due to the orientation at implementing the following digital technologies: • in 2017—Cyber security (Rank = 14); E-Participation (Rank = 19); Internet retailing (Rank = 22);

Perspective Role of Digitalization in the Well-Balanced Development of the Global Economic System of the Future

31

Table 1 The Sustainable Development Index and the Digital Competitiveness Index of China in 2017–2021 Indicator

2017

2018

2019

2020

2021

1. Sustainable Development Index Rank

71

54

39

48

57

Score

67.1

70.1

73.2

73.9

72.1

Achieved Sustainable development goals

No poverty—high level (social and economic spheres) Decent work and economic growth— positive changes (social and economic spheres)

No poverty Decent work and economic growth— high level (social and economic spheres) Quality education Clean water and sanitation—positive changes (ecological sphere)

Quality education Decent work and economic growth— high level (social and economic spheres) No poverty—positive changes (social and economic spheres)

No poverty Quality education Decent work and economic growth— high level (social and economic spheres) Responsible consumption and production Climate action Partnerships for the goals—positive changes (ecological, social and economic spheres)

No poverty Quality education— high level (social and economic spheres) Responsible consumption and production Climate action— positive changes (ecological sphere)

2. Digital Competitiveness Index Rank

31

30

22

16

15

Score

71.452

74.796

84.292

84.105

84.431

Rank элeмeнтoв

Future readiness—34 Technology—36 Knowledge—23 Key directions of implementation of digital technologies: cyber security (Rank = 14); Eparticipation (Rank = 19); internet retailing (Rank = 22)

Future readiness—28 Technology—34 Knowledge—30 Key directions of implementation of digital technologies: cyber security (Rank = 10); use of big data and analytics (Rank = 12); smartphone possession (Rank = 16); Eparticipation (Rank = 19)

Future readiness—21 Technology—26 Knowledge—18 Key directions of implementation of digital technologies: world robots distribution (Rank = 1); use of big data and analytics (Rank = 12); cyber security, smartphone possession (Rank = 16)

Future readiness—18 Technology—27 Knowledge—8 Key directions of implementation of digital technologies: world robots distribution (Rank = 1); Eparticipation (Rank = 9); use of big data and analytics (Rank = 8)

Future readiness—17 Technology—20 Knowledge—6 Key directions of implementation of digital technologies: world robots distribution (Rank = 1); Eparticipation (Rank = 9); use of big data and analytics (Rank = 11)

Source Prepared by the authors using (Cambridge University Press, 2022; IMD, 2022)

• in 2018—Cyber security (Rank = 10); Use of big data and analytics (Rank = 12); Smartphone possession (Rank = 16); E-Participation (Rank = 19); • in 2019—World robots distribution (Rank = 1); Use of big data and analytics (Rank = 12); Cyber security, Smartphone possession (Rank = 16); • in 2020—World robots distribution (Rank = 1); E-Participation (Rank = 9); Use of big data and analytics (Rank = 8). Such directions of digitalization as smartphone possession, E-Participation and Internet retailing ensured the growth of employment in the digital sphere, which also influenced the stabilisation of the social sphere. At that, other

directions of digitalisation had a positive influence on the development of the economic sphere of China.

4

Conclusion

At present, the digital economy becomes one of the key factors influencing economic growth and has important consequences on GDP and the efficiency and well-being of households in all sectors of the economy. The intensive digitalization of the economy and its comprehensive transformation will lead to the preservation of competitiveness in the global market and the achievement of positive results.

32

The analysis performed in this research allowed evaluation of the influence of digitalization (its elements) on the sustainable development of the country on the whole and in the context of the Sustainable Development Goals. It was discovered that China aims at supporting the globalist goals of the world community. The positive results in this direction are connected to implementing digital technologies, the use of which ensures a substantial decrease in the impact of the global economic crisis and internal negative factors. It was also revealed that in 2021, compared to 2020, there was a certain decrease in the Sustainable Development Index. This was caused by the consequences of the pandemic and the growth of unemployment because of the closure of companies. This indicator could be improved in view of China's declared orientation at the support for certain sectoral directions. The largest influence on the support for sustainable development in China in 2021 was made by such directions of digitalization as World robots distribution (Rank = 1); E-Participation (Rank = 9); Use of big data and analytics (Rank = 11). Despite certain problems that accompany globalisation, which include aggravation of the socio-political and economic situation in certain countries, increase in disproportions in the global economy (the gap between developed and developing countries), and environmental issues, it is necessary to strive toward a well-balanced development of the global economic system of the future, in which digitalization has a very perspective role.

K. S. Khachaturyan et al.

References Cambridge University Press. (2022). Sustainable development report. https://dashboards.sdgindex.org/. Date of access: April 27, 2022. China’s GDP. Tadviser. https://www.tadviser.ru/index.php/Cтaтья: BBП_Китaя. Date of access: April 27, 2022. IMD. (2022). IMD world digital competitiveness ranking. https://www. imd.org/centers/world-competitiveness-center/rankings/worlddigital-competitiveness/. Date of access: April 27, 2022. Jovanovic, M., Dlacic, J., & Ocanovic, M. (2018). Digitalization and society’s sustainable development—Measures and implications. Zbornik Radova Ekonomskog Fakulteta u Rijeci, 36(2), 905–928. Kroll, A., Warchold, A., & Pradhan, P. (2019). Sustainable development goals (SDGs): Are we successful in turning trade-offs into synergies? Palgrave Communications, 5, 140. https://www.nature. com/articles/s41599-019-0335-5#citeas. Date of access: April 27, 2022. Liu, J., Cheng, Y., Zhou, Y., Li, X., Kang, H., & Sriboonchitta, S. (2021). Systemic risk contribution and contagion of industrial sectors in China: From the global financial crisis to the COVID-19 pandemic. Journal of Mathematics, 2021. https:// www.hindawi.com/journals/jmath/2021/9373614/. Date of access: April 27, 2022. Xu, A., Qian, F., Pai, C.-H., Yu, N., & Zhou, P. (2021). The impact of COVID-19 epidemic on the development of the digital economy of China-based on the data of 31 provinces in China. Frontiers in Public Health, 9. https://www.ncbi.nlm.nih.gov/pmc/articles/ PMC8828997/. Date of access: April 27, 2022.

The Role of Digital Security for the Stable Development of the Global Economic System of the Future Aisha A. Gadzhieva , Aida O. Dalgatova , Rustam M. Shakhbanov , and Ramazan M. Kasumov

Abstract

1

This article elaborates on the state of digital security and the level of economic development of countries at the national level and in the context of globalisation and large-scale digitalisation. The methodology of this research is statistical analysis and a complex approach. The novel approach of this research consists in further development of provisions on the character of the influence of digital vulnerabilities and security on the state of economic growth and stability. Digital security is a factor in the provision of economic stability, but not always growth. This is rather important in a period of unpredictable crisis, which is connected with internal and global economic problems (wars, epidemics, political instability, etc.). We prove the necessity to develop the main factors of strengthening of digital security at the national level within the implementation of universal international standards, as the basis of global economic stability. Keywords

.

.

Digital economy Information city Technopolis

.

Cyber security

JEL Classification

F63

. . L86

Q55

A. A. Gadzhieva (&) . A. O. Dalgatova Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected] R. M. Shakhbanov Dagestan State University (DSU), Makhachkala, Russia R. M. Kasumov Dagestan State University (DSU), Khasavyurt, Russia

.

Smart

Introduction

The processes of quick implementation of ICT influence the development of the main spheres of society’s activities and affect the formation of their high dependence on threats and the state of digital security (Rashid et al., 2021). Most developed and many developing countries implement the projects of automatisation of infrastructure, which facilitates the speed of operations and processes, ensures high quality and raises value added of products (services). Digital security of automatized sectors and their subjects depends on the emergence of technical failures and cyber-attacks. The role of a certain sector of the economy or its subjects in the development of society and state and international economic relations determines the requirements to the level of digital security. Supporting the digital security of critically important infrastructures is the indicator of supporting the stable indicators of development. Continuous activities of the subjects of critical infrastructure influence the sustainability of the economy. Such results are achieved with the help of constant improvement of solutions in the sphere of ICT (Viganò et al., 2020). The course of countries with an open economy at the global international integration, including in the economic sphere, is connected with the approaches to the management of quality and the use of solutions in the sphere of ICT that ensure high operationalisation, speed, precision, quality and additional cost of products (services). Complete automatization of the financial and production processes envisages the need for constant control over digital security. Accordingly, in modern conditions, there forms a sustainable communication interaction at the level of developers of solutions in the sphere of digital security and consumers (legal entities, individuals, government). This partnership depends on the level of data protection, which envisages constant monitoring of vulnerabilities and threats to the integrated digital business from the external and internal environment (Edu et al., 2021).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_7

33

34

A. A. Gadzhieva et al.

Manifestations of various digital vulnerabilities (cyber attacks, failure, data leaks in the process of integration processes) lead to the reduction of the effectiveness of national economy subjects’ functioning. Large-scale digital failures are connected with failures in the energy, transport and financial spheres, which state determines the level of stability of the national economy and the state of other countries’ economies (supply of energy resources to other countries, international railroad transportation, air connection), as well as functioning of the global economy (world GDP). In the long term, globalisation of the economy implies a comprehensive national integration of the main sectors of the economy in the international economic environment. Due to the above, digital security, which is considered at the level of separate economic systems of countries, will be assessed at the level of supranational structures and the global level. This indicator at the level of the key participants of international economic relations is an important indicator of development and their position in the global economy. Given the importance of the provision of high parameters of digital security at the global level in the future, there is a necessity for the evaluation of these problems at the national level.

We can observe the signs of the growing digitalization. According to The International Telecommunication Union, access to fixed broadband communications expanded on all continents as a direct result of remote work, remote education, etc. (ITU, 2022). The priority of technologically developed countries is the expansion of digital consumer tools, stimulation of digital entrepreneurial startups, and investing in innovations in universities while developing economies focus on the expansion of access to mobile Internet, training of digital specialists, and attraction of investments in R&D and digital companies. Cyber security and cyber sustainability are very important issues in the aspect of digital security. Achievement of the high levels of cyber sustainability is hindered by various organisational, technical, and normative barriers. To overcome these barriers, there is a need for a comprehensive, systematic, and joint approach. At the current stage of digitalization, national governments should take into account and pay more attention to the issues of cyber security and cyber sustainability and consider various scenarios for the preparation for potential cyber disasters.

3 2

Materials and Method

According to Ramachandran (2019), possible measures for effective cybersecurity in the world should include as follows: • Every company must follow secure practices and produce secure products and services; • Every government should work on educating its citizens on cybersecurity awareness; • All countries’ voluntary and universal compliance with acceptable cyber norms and international law will ensure better predictability and stability in cyberspace; • Countries should cooperate to obtain secure cyberspace; • Countries should build strong law enforcement capabilities in cyberspace. Digital tendencies and their quick dissemination due to the COVID-19 took the world population on a new trajectory of digitalization and interconnection. One of the most vivid and disturbing new consequences of the digital existence of humanity is frequent and destructive cyber incidents, which sometimes lead to the paralysis of critical services and infrastructure. This tendency does not seem to slow down, while complex tools and methods become more accessible to hackers.

Results

Let us consider the Global Cybersecurity Index (GCI) at the level of the selected countries and reveal the perspectives of its influence on their national economies (Table 1). The character of the economy’s stability is assessed within the dynamics of the GDP of these countries. The timeframe of the research is 2017, 2018, and 2020. Analysis of the materials of Table 1 allows for the following conclusions. In the course of the studied period, the USA retained the leading position in the two studied variables (GCI and GDP). The high value of GCI is connected to high indicators of the main components: technical, legal, [government’s acknowledging cyber-attacks as attacks on security (Katagiri, 2021)], the elements of the growth of the digital security's potential, predetermined by the development of educational and scientific programmes in this sphere, the organisational element of implementing the protection means of electronic resources. The USA has a rather high potential for ensuring digital security, which will allow supporting a stable level of economic development (with GDP remaining high). The United Kingdom’s GCI improved (12th position in 2017 and 2nd in 2020). Among the components of GCI, certain underrun was demonstrated by the technical element, while other elements were similar to those of the USA. This is due to technical problems of outsourcing that appeared in

The Role of Digital Security for the Stable Development of the Global Economic System of the Future Table 1 Dynamics of the Global Cybersecurity Index (GCI) and GDP of the selected countries of the world

2017

2018

2020

35 Change

1. USA Rank GCI

2

2

1

0

−1

Score GCI

0.919

0.926

1

0.007

0.074

Rank GDP

1

1

1

0

0

GDP, $ billion

19,485

20,611

20,953

1126

342

12

1

2

− 11

1

2. United Kingdom Rank GCI Score GCI

0.783

0.931

0.9954

0.148

0.0644

Rank GDP

6

5

5

−1

0

GDP, $ billion

2637.8

2900.8

2759.8

263

− 141

3. Saudi Arabia Rank GCI

46

13

2

− 33

− 11

Score GCI

0.569

0.881

0.9954

0.312

0.1144

Rank GDP

19

18

20

−1

2

GDP, $ billion

686.7

786.5

700.12

99.8

− 86.38

Rank GCI

5

5

3

0

−2

4. Estonia Score GCI

0.846

0.905

0.9948

0.059

0.0898

Rank GDP

100

97

112

−3

15

GDP, $ billion

26.611

30.62

30.65

4.009

0.03

Source Created by the authors based on Statista (2022), The World Bank (2022)

2020 because of Brexit (Geeks.co.uk, 2022). We note the dependence of the economic stability of GDP at the level of the ranking (from 6th position in 2017 to 5th position in 2020), which is connected to the provision of national digital security. Accordingly, the formed level of this indicator is a precondition for supporting the economic positions of the country in the long-term. Over 2017–2020, Saudi Arabia was able to ensure a significant improvement in its position (from 46th in 2017 to 2nd in 2020) and the value of GCI (from 0.569 in 2017 to 0.9954 in 2020). This result was achieved due to the growth of all elements of this variable. Similarly to the USA, there was a certain underrun of the technical element, caused by the insufficient development of IT outsourcing (Iqbal et al., 2020). We should note the impact of the high level of digital security on the state of economic stability; in particular, during the pandemic, GDP reduced, but the reduction was not as large as with many countries (19th position in the world ranking in 2017 and 20th in 2020). Despite the relatively low level of GDP, Estonia was able to ensure its growth (though without any improvement in the ranking). This was observed in the period of the influence of the negative factors of the 2020 pandemic and economic crisis. This fact is largely due to the high level of the country’s digital security and its improvement in the main

elements. The positive perspectives of Estonia’s digital security and economic growth are rather vivid.

4

Conclusions

Based on the analysis of the results of the dynamics of the cyber security index, which identifies digital security, and the index of GDP, which characterises economic development, it is possible to state the following: • The scale of the economy does not always depend on the level of digital security of the country and its economic subjects. The character and level of provision of protection of information and communication and technological systems from failures influence the quality of products (services), ensuring an increase in value added of the latter. An example of such an approach is the experience of the digital economy and cyber security of Estonia. High GDP does not necessarily mean that a country, as an international partner, will be a reliable supplier of products as per contracts, without the achievement of the corresponding level of digital security. Observation of energy delivery terms without reliable protection of the digital environment of the energy sector is very difficult.

36

The level of reliability of the digital space is determined according to the statistics of vulnerabilities and threats that existed in previous periods; • Digital vulnerability concerns various sectors of the economy; elimination of its factors is the basis of the stability of economic development or supporting a certain level of GDP in complex periods of crises, trade conflicts or cyber-attacks; • Prospects for digital security in further globalisation depend on the universalisation of institutional, organisational and educational measures at the national level. The new technologies like AI, robots, the Internet of Things, cloud computing, blockchain and remote working/distance learning models represent the future of our digital world. Though public sector and private sector stakeholders want to reach higher cyber resilience levels, their attempts are often slowed down by various organisational, technical, and regulatory barriers. To deal with these barriers, there will be a need for a comprehensive, systematic, and collaborative multistakeholder approach.

References Edu, A. S., Agoyi, M., & Agozie, D. (2021). Digital security vulnerabilities and threats implications for financial institutions deploying digital technology platforms and application: FMEA and FTOPSIS analysis. PeerJ Computer Sciences, 7, e658. https://peerj. com/articles/cs-658.pdf

A. A. Gadzhieva et al. Geeks.co.uk. (2022). BREXIT: The impact on UK businesses from an IT outsourcing perspective. https://geeks.co.uk/2018/05/brexitimpact-uk-businesses-outsourcing-perspective/. Accessed: April 11, 2022. Iqbal, J., Ahmad, R. B., Khan, M., Amin, F.-E., Alyahya, S., Nasir, M. H. N., Akhunzada, A., & Shoaib, M. (2020). Requirements engineering issues causing software development outsourcing failure. PLoS One, 15(4). https://pubmed.ncbi.nlm.nih.gov/ 32271783/. Accessed: April 11, 2022. ITU. Committed to connecting the world. www.itu.int. Accessed: April 05, 2022. Katagiri, N. (2021). Why international law and norms do little in preventing non-state cyber attacks. Journal of Cybersecurity, 7(1). https://academic.oup.com/cybersecurity/article/7/1/tyab009/ 6168044. Accessed: April 11, 2022 Ramachandran, R. (2019). Cybersecurity and its critical role in global economy. ISACA NOW BLOG. https://www.isaca.org/resources/ news-and-trends/isaca-now-blog/2019/cybersecurity-and-itscritical-role-in-global-economy. Accessed: April 05, 2022. Rashid, Z., Noor, U., & Altmann, J. (2021). Economic model for evaluating the value creation through information sharing within the cybersecurity information sharing ecosystem. Future Generation Computer Systems, 24, 436–466. Statista. (2022). Countries with the highest commitment to cyber security based on the global cybersecurity index (GCI) in 2020. https://www.statista.com/statistics/733657/global-cybersecurityindex-gci-countries/. Accessed: April 11, 2022. The World Bank. (2022). GDP (current US$). https://data.worldbank. org/indicator/NY.GDP.MKTP.CD?most_recent_value_desc=true. Accessed: April 11, 2022. Viganò, E., Loi, M., & Yaghmaei, E. (2020). Cybersecurity of critical infrastructure. In M. Christen, B. Gordijn, & M. Loi (Eds.), The ethics of cybersecurity. The international library of ethics, law and technology (Vol. 21). https://doi.org/10.1007/978-3-030-29053-5_ 8#citeas. Accessed October 12, 2022.

Sustainable Development of the World Economy of the Future on the Basis of Digitalization: The 2030 Perspective Salia Z. Seidahmatova , Turdubek T. Japarov , and Kometa T. Paytaeva

Abstract

JEL Classification

Purpose To study the state of the sustainable development of the world economy of the future on the basis of digitalization in the period until 2030. Design/Methodology/Approach The following methods were used: trends method, statistical analysis, and the comparative method. Findings We present the assessment of the level of the sustainable development of the world economy of the future on the basis of digitalization. The analysis allowed revealing the dependence of the level of the sustainable development of the economy, evaluated with the help of GDP, on the transformation of digitalization in the studied countries. The research showed that the assessed developed countries (by the level of GDP) have perspectives of economic growth due to the further implementation of modern digital technologies. This effect could be achieved due to the orientation at the development of the perspectives spheres of activities and the top-priority sectors of the economy. Such component of digitalization as technologies is of top priority in the aspect of the influence on the growth of economic development of countries. Originality/Value The originality and value of this research consist in the elaboration of the specifics of the dependence between the formation of digitalization and the economic growth of countries.

F47

Keywords

. .

.

. .

Digitalization Economic growth GDP Technology Impact Investments World economy

.

1

. . F63

O14

Introduction

The current negative tendencies in the socio-economic sphere require the modern integration unions and blocks of countries to develop and implement the optimisation of sustainable development. In the Lisbon Strategy, the European Commission stated that the growth of innovations, including in the digital spheres, is the key factor for the stable development under the conditions of the influence of the factors of globalisation and various problems and threats to the national and regional character. Success in the world economy is determined by companies’ ability to respond and prevent the influence of external challenges. The connection between innovative digital innovations and sustainable economic growth is very close under the conditions of the large-scale implementation of digitalization in all spheres of activities and sectors of industry. The high dependence of sustainable economic development on digital technologies is characteristic of the countries that use and implement their technological abilities to the largest extent. The existence of such dependence will develop in the long term. We assume that such dependence will be preserved, including in the period until 2030. In this paper, we assess the influence of digitalization on digitalization on sustainable development in the selected countries of the world and elaborate on the forecasts of this dependence in the perspective period until 2030.

S. Z. Seidahmatova (&) . T. T. Japarov The Academy of Public Administration, Bishkek, Kyrgyzstan e-mail: [email protected] K. T. Paytaeva Institute of Economics and Finance, Kadyrov Chechen State University, Grozny, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_8

37

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S. Z. Seidahmatova et al.

Literature Review

The state and perspectives of the world economy’s development depending on digital transformations in all spheres are studied in many scientific works. Patrucco et al. (2021) study the impact of the 2020 pandemic on the innovative policy of countries and the transformation of the components of digitalization under the conditions of the reduction of financing for innovations in technologies. The important result of this research is determining the main problem aspects of the technological provision in the studied countries of the world. Qiujuan et al. (2021) formulate the general characteristics of a new industrial policy of China, connected to the deep modernisation of its sectors, approaches to processes, and production technologies. Xu et al. (2022) present an assessment of the influence of the 2020 pandemic on the level of China’s economy and digitalization. The authors dwell on the specific features that characterise the successful development of the economy during the pandemic: sectorial integration and successful formation of the portfolio of digital transformations at the regional level. The work of Fritsch and Lichtblau (2020) is devoted to the study of the implementation of digitalization in the main spheres of Germany’s economy and the comparative analysis of digital technologies in Germany. Huang and Kuroda (2021) dwell on the dependence of the transformations of the value-added of products on the implementation of digital technologies over the last fifty years. Dannenberg et al. (2020) perform complex analysis of the influence of COVID-19 and its consequences on the development of e-commerce (including the sales of agricultural products) in Germany. The literature review showed that the existing materials are oriented at the assessment of the issues of development of the digital economy and economic development at the level of countries and at the global level. However, the results of the evaluation of the mutual dependence of these variables were not widely studied.

3

Materials and Methods

We used the trends method to determine the factual and forecast tendencies of the change of the estimated indicators (digitalization and development of the world economy); statistical analysis—to study such quantitative indicator of the world economy’s sustainability as GDP; comparative method—to evaluate the change of GDP of the studied countries. We study the digitalization of the selected countries with the help of the Network Readiness Index (developed by the

World Economic Forum and INSEAD) (Network Readiness Index, 2022). Table 1 presents the ranking and values of this indicator for five countries: the USA, China, Japan, Germany, and the United Kingdom (world leaders by GDP in 2021) (IMF, 2022). Table 1 also contains the value of GDP and % of Digital economy GDP in national GDP. This indicator characterises the quantitative indicator of the digitalization’s development. The forecasts of the development of GDP and % GDP Digital Economy in GDP, are formed by the international research organisations based on the trend methods at the level of equal periods (2–5 years). Table 2 contains the values of these indicators, presented with the help of this method for the selected countries. The main research approaches are based on the assumption of the annual growth of GDP in view of the average value of GDP for the last ten years (2012–2021) for each country that is among the digitalization leaders (Fritsch & Lichtblau, 2020; Statista, 2022b, 2022c, 2022d, 2022e).

4

Results

We see that the USA demonstrated the growth of Rank and Score in the NRI ranking: 8th position in 2019 and 2020, and 4th position in 2021 (Table 1). The value of NRI reduced in 2020 due to the negative consequences of the pandemic and a decrease in investments in the development of technologies. According to Patrucco et al. (2021), during the 2020 pandemic, there was a reduction in the development of technologies at the level of joint integration platforms, which include the scientific and experimental research of innovative technologies, and the reduction of grants issued to experts and research structures. A certain decrease in the level of technological development of the USA in 2020 led to a decrease in GDP (by 2.3%). Such change directly depends on the development of the digital economy, which reduced by 0.21%. Let is note the direct dependence between these variables, which was preserved under the conditions of the growth of technological development. The forecasts of this dependence for the period until 2030 imply the annual growth of GDP of Digital Economy in GDP at the level of 0.92% and the annual growth of GDP by 4.8–5%. China was able to raise its Rank and Score in NRI ranking in 2019–2021: 41st position in 2019, 40th position in 2020, and 29th position in 2021. There was a certain decrease in investments in technological innovations in 2020, but 2021 saw the growth of technologies due to China’s orientation at the industry modernisation (Qiujuan et al., 2021). The development of digital technologies influences the economic development of China at the

Sustainable Development of the World Economy of the Future on the Basis of Digitalization: The 2030 Perspective Table 1 NRI rank and score, GDP, % of digital economy GDP in national GDP of the USA, China, Japan, Germany, and the United Kingdom in 2019–2021

Indicator/Country

Value

39

Change

2019

2020

2021

2019–2020

2020–2021

Rank NRI

8

8

4

0

−4

Score NRI

80.32

78.91

81.09

− 1.41

2.18

Score impact

71.065

71.96

73.64

0.895

1.68

1. USA

Score people

73.59

74.59

75.65

1

1.06

Score technology

87.32

82.88

87.81

− 4.44

4.93

Score governance

88.74

86.23

87.26

− 2.51

1.03

GDP, $ billion

21,433.22

20,936.6

23,000

− 2.3%

9.8%

% GDP digital economy in GDP

8.89

8.68

9.6

− 0.21%

0.92%

2. China Rank NRI

41

40

29

−1

− 11

Score NRI

57.63

58.44

65.62

0.81

7.18

Score impact

56.73

59.17

74.77

2.44

15.6

Score people

53.89

58.47

66.48

4.58

8.01

Score technology

54.46

49.8

57.27

− 4.66

7.47

Score governance

65.42

66.33

63.98

0.91

− 2.35

GDP, $ billion

14,280

14,720

17,700

9.85%

20.2%

% GDP digital economy in GDP

40.67

41.2

42.2

0.53%

1%

Rank NRI

12

15

16

3

1

Score NRI

76.17

73.54

73.92

− 2.63

0.38

Score impact

77.54

74.29

73.97

− 3.25

− 0.32

3. Japan

Score people

74.24

76.79

73.2

2.55

− 3.59

Score technology

72.87

65.55

70.81

− 7.32

5.26

Score governance

80.05

77.53

77.71

− 2.52

0.18

GDP, $ billion

5065

5050

5200

− 0.3%

2.9%

% GDP digital economy in GDP

7.1

7.2

7.31

0.1%

0.11%

4. Germany Rank NRI

9

9

8

0

−1

Score NRI

78.23

77.48

78.95

− 0.75

1.47

Score impact

78.87

76.69

76.41

− 2.18

− 0.28

Score people

72.6

70.54

75.12

− 2.06

4.58

Score technology

77.51

79.18

80.03

1.67

0.85

Score governance

83.94

83.52

84.22

− 0.42

0.7

GDP, $ billion

3861

3806

4230.1

− 1.4%

11%

% GDP digital economy in GDP

3.1

3.8

5.7

0.7%

1.9%

Rank NRI

10

10

10

0

0

Score NRI

77.73

76.27

76.6

− 1.46

0.33

Score impact

74.62

74.4

76.52

− 0.22

2.12

Score people

69.81

69.69

69.44

− 0.12

− 0.25

Score technology

78.16

78.34

76.78

0.18

− 1.56

Score governance

88.32

82.65

83.64

− 5.67

0.99

GDP, $ billion

2830.8

2707.7

3108.4

− 4.3%

14.8%

% GDP digital economy in GDP

10

12.5

16

2.5%

3.5%

5. United Kingdom

Source Compiled by the authors based on Fritsch and Lichtblau (2020), Network Readiness Index (2022), Xu et al. (2022)

40 Table 2 Forecast of the development of GDP and % of digital economy GDP in national GDP of the USA, China, Japan, Germany, and the United Kingdom in 2022–2030

S. Z. Seidahmatova et al. Indicator/Country

Values 2022–2024

2025–2027

2028–2030

Growth of GDP, %

14.4–15 (4.8–5% annually)

14.4–15 (4.8–5% annually)

14.4–15 (4.8–5% annually)

Growth of % GDP digital economy in GDP

2.76 (0.92% annually)

2.76 (0.92% annually)

2.76 (0.92% annually)

1. USA

2. China Growth of GDP, %

24 (8% annually)

24 (8% annually)

24 (8% annually)

Growth of % GDP digital economy in GDP

3 (1% annually)

3 (1% annually)

3 (1% annually)

3. Japan Growth of GDP, %

9 (3% annually)

9 (3% annually)

9 (3% annually)

Growth of % GDP digital economy in GDP

0.33 (0.11% annually)

0.33 (0.11% annually)

0.33 (0.11% annually)

4. Germany Growth of GDP, %

15 (5% annually)

15 (5% annually)

15 (5% annually)

Growth of % GDP digital economy in GDP

5.7 (1.9% annually)

5.7 (1.9% annually)

5.7 (1.9% annually)

5. United Kingdom Growth of GDP, %

12 (4% annually)

12 (4% annually)

12 (4% annually)

Growth of % GDP digital economy in GDP

10.5 (3.5% annually)

10.5 (3.5% annually)

10.5 (3.5% annually)

Source Compiled by the authors based on Statista (2022a, 2022b, 2022c, 2022d, 2022e)

modern stage (2019–2021) and in the forecast period: growth of GDP (by 8% annually) and growth of % Digital Economy GDP in GDP (by 1% annually). With a rather high level of digitalization, Japan demonstrated a certain reduction of this indicator in the NRI Ranking, which was caused by the negative external factors of the global economic crisis in 2019–2021, the 2020 pandemic, and its consequences in 2021. We see the dependence of the economy’s growth on the improvement of implementing digital technologies; the forecast is the growth of GDP by 3% annually, and the growth of % of Digital Economy GDP in GDP by 0.11% annually. Analysis of the data from Table 1 showed that Germany was able to raise its position in the NRI ranking: 9th position in 2019, and 8th position in 2021. Acceleration of digitalization in the economy was ensured by Germany in 2020 and 2021 by means of the growth of e-commerce, especially in the sphere of food products (including agricultural products) (Dannenberg et al., 2020). Based on the established trends, the forecast for % of Digital economy GDP in GDP is 1.9% annually, and for GDP—5% annually. Despite a certain reduction in the score of NRI components, the UK has a rather high position in the digitalization ranking in the world. The key perspectives of the growth of the economy, under the conditions of the fight against the

consequences of the pandemic in 2021, include the implementation of digital technologies in the development of industrial sectors and the level of development of electronic public services at the national level.

5

Conclusion

We studied and analysed the level of the sustainable development of the world economy of the future on the basis of digitalization for the period until 2030 by the example of the selected countries. The performed analysis allowed stating the existence of a dependence of the level of the sustainable development of the economy, evaluated with the help of GDP, on the transformation of digitalization in the selected countries. The research showed that the considered developed countries have good perspectives of economic growth due to further implementation of modern digital technologies. This effect could be achieved due to the orientation at the development of the perspective spheres of life activities and top-priority sectors of the economy. It was also discovered that such component of digitalization as technologies is of top priority in the aspect of the influence on the growth of economic development of countries.

Sustainable Development of the World Economy of the Future on the Basis of Digitalization: The 2030 Perspective

References Dannenberg, P., Fuchs, M., Riedler, T., & Wiedemann, C. (2020). Digital transition by COVID-19 pandemic? The German food online retail. Special Issue: The Geography of the COVID‐19 Pandemic, 111(3), 543–560. Fritsch, M., & Lichtblau, K. (2020). The digital economy in Germany. Measurement of the Digitalisation of the German Economy, 3/19. URL: https://www.researchgate.net/publication/350314151_The_ digital_economy_in_Germany. Date of access: April 12, 2022. Huang, M. C., & Kuroda, M. (2021). Investigation of Japan’s value chain through R&D and innovation under demographic change: Implications for digitalization in the post-COVID-19 era. ADBI Working Paper 1257. Tokyo: Asian Development Bank Institute. https://www. adb.org/publications/investigation-japan-value-chain-research-devinnovationdemographic-change. Date of access: April 12, 2022. IMF. (2022). GDP, current prices. https://www.imf.org/external/ datamapper/NGDPD@WEO/OEMDC/ADVEC/WEOWORLD. Date of access: April 12, 2022. Network Readiness Index. (2022). Countries. Benchmarking the future of the network economy. https://networkreadinessindex.org/ countries/. Date of access: April 12, 2022. Patrucco, A. S., Trabucchi, D., Frattini, F., & Lynch, J. (2021). The impact of covid-19 on innovation policies promoting open innovation. R&D Management, 52(2), 273–293. Qiujuan, L., Yapei, L., Yanxin, M., & Yinghao, Z. (2021). Realization path of China’s forestry industry modernization under the

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innovation-driven strategy. Journal of Forestry and Grassland Policy, 1(2), 41–47. Statista. (2022a). Germany: Gross domestic product (GDP) in current prices from 1986 to 2026. https://www.statista.com/statistics/ 375206/gross-domestic-product-gdp-in-germany/. Date of access: April 13, 2022. Statista. (2022b). Gross domestic product (GDP) at current prices in China from 1985 to 2020 with forecasts until 2026. https://www. statista.com/statistics/263770/gross-domestic-product-gdp-of-china/ . Date of access: April 13, 2022. Statista. (2022c). Gross domestic product (GDP) in current prices of the United Kingdom (UK) from 1986 to 2026. https://www.statista. com/statistics/263590/gross-domestic-product-gdp-of-the-unitedkingdom/. Date of access: April 13, 2022. Statista. (2022d). Gross domestic product (GDP) of the United States at current prices from 1986 to 2026. https://www.statista.com/ statistics/263591/gross-domestic-product-gdp-of-the-united-states/. Date of access: April 13, 2022. Statista. (2022e). Japan: Gross domestic product (GDP) in current prices from 1986 to 2026. https://www.statista.com/statistics/ 263578/gross-domestic-product-gdp-of-japan/. Date of access: April 13, 2022. Xu, A., Qian, F., Pai, C.-H., Yu, N., & Zhou, P. (2022). The impact of COVID-19 epidemic on the development of the digital economy of China—Based on the data of 31 provinces in China. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.778671/full. Date of access: April 12, 2022.

Dialectics of Systems Development Olga B. Kevbrina , Elena M. Kechaykina , Aleksandr S. Pechatkin , and Aleksandr N. Fedin

The essential problem of realizing the purpose of education is the process of forming the personal qualities of a successful future specialist. Within the framework of this work, we have separately identified the cornerstone problem areas of the dialectics of cooperation and competition, considered in the aspect of the socio-philosophical approach. In this contextual field, the act of choice, which occurs on many levels of personality functioning and is determined by natural and socio-cultural conditions, is especially vividly manifested.

Abstract

The modern period of historical development is replete with oversaturation of information, which entails a number of consequences associated with its uncritical processing, inadequate conclusions, cognitive distortions, manipulative influence, kaleidoscopic consciousness, defragmentation of the integrity of the personality. The process of information interaction proceeds in conditions of ignorance in the presence of colossal technical resources for information transmission. Such an overload is associated with the unformed system that ensures the implementation of ideological strategies. The goals set by the authors predetermined the use of the dialectical approach as the basis of the research. The specifics of solving the problems that have arisen led to the appeal to methods of analysis and synthesis to comprehend the result. Within the framework of the study, the authors considered the problems of the development of the cognitive system in the emerging mixed virtual-objective reality. Some particular problems inherent in the educational system and its implementation in the dialectical unity of cooperation and competition have received a new interpretation, namely: the inevitability of the synthesis of rationality and “mythologization” that affects the miscalculation of risks, the growth of self-awareness of participants in the educational process, the pretentiousness of the actor of the educational process.

O. B. Kevbrina . E. M. Kechaykina . A. S. Pechatkin . A. N. Fedin (&) Saransk Cooperative Institute (branch) of Russian University of Cooperation, Saransk, Russia e-mail: [email protected] O. B. Kevbrina e-mail: [email protected] E. M. Kechaykina e-mail: [email protected]

Keywords

. .

. . .

Cooperation Dialectics Consistency Cognition process Cooperative education Competition JEL Classification

A12

1

. . . Y80

Z10

Z19

Introduction

A great responsibility lies on education as an initiating system for the reproduction of the spirituality of society, and this has a greater effect on the participants in the educational process. We inevitably have to face the most general abstractions, considering the problem of the development of any system in the framework of the dialectical approach. The dialectic of the historical process is strictly tied to the system of the abstract—universal—special—single construct. Within the framework of a given structure, materialistic knowledge of the development of the historical process as a system fits into the usual categorical apparatus. We can designate it schematically in the following categories, moving from a high-order abstraction to a single object, as a real social reality: socio-economic formation—capitalist social formation—capitalism in the modern Russian Federation—cooperative movement in the modern Russian

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_9

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O. B. Kevbrina et al.

Federation—cooperation of the Republic of Mordovia. Conventionally, the last link of the above scheme meets the requirement of the category “single” and is available for cognition under the conditions of a special stage of development of the system (capitalism). However, dialectics, as a form of cognition, based on the search for contradictions in a constantly changing objectively existing reality, is obliged to cognize the subject in all its diversity.

2

Methodology

The main methodology for obtaining results in the article is the dialectical approach. The work uses the approaches of Ascot (1995), Bondarenko (2006), Winfield (2016), Khabakhu (2017) for the analysis of the foundations of mixed virtual-objective reality. We have chosen the theory of limited deduction of specific knowledge of Ilyenkova E. V. as a criticism of the process of cognition of physical reality (Ilyenkov, 1984). At the present stage of scientific knowledge, the foundations of the study of cognitive processes on the verge of real and virtual worlds are only being formed. The works of Elkhova (2011), Zeynalov (2012), Nosov (1999) served as a methodological basis for our analysis of new forms of social reality. The works of Aizyatov and Pechatkin (2020), Ayupova and Murugova (2019), Khabakhu (2017) were used to reveal the social essence of cooperation and cooperative education.

3

Results

In our opinion, modern historical, sociological and philosophical knowledge of social systems within the framework of the dialectical approach is mired in the algorithmicizing of social processes, thereby violating the basic laws of the very principle of cognition, and therefore influencing the progress of the cognitive process as a whole. A possible problem of the transition to the dogmatic application of dialectics was the constant appeal to a specific problem as a manifestation of material reality, its production or transformation in a certain cultural form. However, as the categories “information society”, “virtual reality” (Nosov, 1999, p. 153), “Augmented Reality” (the most common interpretation of this term “additional reality”) appear in the scientific environment, a number of researchers have suggested that a new round of development cognition and transformation of historical reality will be associated with virtual space, as well as a new way of human interaction with information. Conventionally, the second system, which also becomes the object of cognition of dialectics, arises. Thus, at the turn of the twentieth to twenty-first centuries, the contradictions of development in the objectively existing

physical reality, the emerging virtual space and the subject of cognition itself, the person, become more and more obvious. The scheme of cognition of the historical system that we outlined at the very beginning should be transformed into a construct: socio-economic formation—capitalist social formation—information society. Further, the development of historical reality collides with the process of cognition of physical reality (special), as part of the information society, and virtual reality (special)—also part of the information society. Cognition of a specific historical reality is constantly faced with many special objects, but as a rule they exist in a single space–time system (the most common in historical research is the linear representation of time in threedimensional space around the cognizing subject). But virtual space, firstly, is devoid of the usual idea of spatio-temporal characteristics, and secondly, it presupposes other forms of interaction with a cognizing subject. Consequently, the development of society as a system continues to exist in the form of objective reality and the transformation of the material world, and at the same time in virtual reality —a way of transforming the person himself. The transformation of the cognizing subject cannot but affect his perception of objectively existing physical reality. The study of cognitive processes in virtual reality suggests that rationality is giving way to simpler forms (mythologization) (Elkhova, 2011). Thus, we come to the conclusion that the dialectics of the development of the modern social system is faced with several contradictions:

(A) the contradiction of human existence and activity in objective physical reality and virtual reality; (B) the contradiction in the knowledge of the development of the system at the rational level in objective physical reality and the mythologization of reality in virtual reality. Specific contradictions in the dialectics of system development should be based on specific solutions to problems. As for the contradiction A, then in the English-language literature a new understanding of reality is gradually being established, denoted by the term “mixed virtual-objective reality” (Milgram et al., 2005, p. 51). We, in turn, understand the concrete historical development of society, in which there is a synthesis of physical reality with the virtual world, not only in the form of the development of material resources, but also in the form of transformation of the cognizing subject, under this term. This interpretation allows us to approach the solution of contradiction B: contradiction in the form of mythologizing cognition in virtual space came to the process of development of the system of cognition of objective reality in the form of rationalism.

Dialectics of Systems Development

Thus, the mixed virtual-objective reality forms a different kind of active subject. Let us imagine the process of cognition of the development of the system of the historical process in the conditions of three forms of reality, concretizing the solution of contradiction B: (1) objective reality; (2) virtual reality; (3) mixed virtual-objective reality. The usual idea of the spatial and temporal characteristics of the system of historical development can be rationally brought to the model of the general educational program: primitive society—slavery—the Middle Ages—New time— Modern time. In the process of learning about history, each stage is endowed with cornerstone dates, which are a form of “absolute truth” that deprives a person of the ability to creatively analyze a problem. Mastering the basics of historical knowledge conflicts with the ability to think in a rapidly changing reality. The result of the development of such a system of cognition is “abstract knowledge” (Ilyenkov, 1984). Specifically, the historical embodiment of the development of such a system of cognition is the unified state examination. The development of social networks, media spaces and educational environments on the Internet creates the possibility of a new interpretation of reality, including the process of historical development, based on the internal logic of the virtual world. Virtual reality forms a different way of cognition, which is focused on sketchy, slide, fragmentary thinking. On the one hand, it opposes itself to cognition in the objective world with this, and on the other hand, it operates with algorithms characteristic of rationality. The milestone dates of history, which are characteristic of understanding the linear representation of the development of society as a system, in the virtual world retain their form of “absolute truth”, but are presented in the form of colorful, chaotic sketches. Cognition in the virtual world unfolds towards subjectivity, multivariate and simplicity on the basis of this. Each subject randomly forms scraps of information into a structure understandable only to him in the process of cognition. We can trace this in the process of analyzing the dialectics of the development of cooperation and competition. Mastering psychological methods and techniques for overcoming cognitive distortions becomes an additional modification of the modern cognitive process. So, procrastination, a hyperbolic level of discount, planning error can lead to personal and professional disorientation of the individual, which falls into the area of responsibility of education and requires careful analysis and the development of effective interdisciplinary approaches to overcome them. Philosophical knowledge, as an ideological and semantic catalyst of the cultural code of the era, has an essential resource in this process.

45

The choice of a strategy for the development of stable personality motives in the process of cognition in general can be presented as a procedural act of accepting the conformity of the goals and objectives of the motivation technology with the type and personality traits, considering external factors. In this process, there are 3 environments of socio-pedagogical analysis: (1) personality; (2) motivation formation technology; (3) environment. The dialectic of cooperation and competition, as ways of self-realization of a person in an educational context, manifests itself especially clearly in professionally-oriented forms of educational activity (industrial practice, practice-oriented classes, excursions of students to production, etc.). Competition acts as a format for mastering social reality with the development of an arsenal of personal and professional qualities of a student, which allows him to build a behavioral strategy to achieve personal success (individual side of performance) and activate the economic system through the creation and implementation of his socioeconomic project (collective side of performance). In turn, cooperation is characterized to a greater extent by the collectivist-distributive nature of the conduct of activities, in which it is possible to recreate the creative potential of cooperation. We agree with the opinion of S. N. Khabakhu, according to which, cooperation “acts as a powerful factor in group cohesion, stimulates a sense of mutual assistance and collectivism, enhances communication processes among participants in cooperation, promotes the formation of collective ideas, norms and values, creates a certain socio-psychological climate, increases the level of incorporation of a social group, which consists in its ability to attract new members with the provision of equal rights and opportunities to achieve the goal, enhances the external competitiveness of the group” (Khabakhu, 2017, pp. 48–49). Cooperation in the educational process is manifested in various kinds of interactions between participants in the educational process aimed at solving common problems with the arrangement of roles and considering individual interests. The bipolar conceptual pair “cooperationcompetition” acts in the format of supposed interactions of participants in the activity and unfolds in the political, economic, sports, educational and other spheres of society. Competition presupposes a certain way of confrontation, which generates conditions for the improvement of all participants in the process of this form of strategic interaction, while it should have a positive effect on the surrounding non-participating subjects as well. An example of such

46

interaction can be found in the functioning of a market economy. In the process of confrontation with each other, producers of goods fight for the consumer, positively influencing the conditions of his economic well-being. This scheme is slightly idealized and shows a general scheme without affecting many undisclosed aspects of the interaction of market participants (monopoly, shadow economy, unfair competition, corruption, etc.). The same processes can be translated into the educational process, also considering its economic segment. The implementation of the strategy of “personnel partnership”, which allows building mutually beneficial relations between educational agents and organizations (potential places of employment of students), by educational organizations appears to be a very promising form of cooperative interaction in the educational environment. In the context of the educational process, the cooperative interaction of students generates a psychological atmosphere of cooperation and gives opportunities for students to manifest their creative abilities (Ayupova & Murugova, 2019, p. 9). It should also point to the conduct of project activities as a guarantee of increasing the efficiency and quality of education and the implementation of a cooperative strategy. In the context of considering the dialectics of systems development, let us point out some of its particular problems inherent in the educational system: the miscalculation of risks, the growth of self-awareness of the participants in the educational process, the pretentiousness of the actor in the educational process. Risks are calculated at various mental levels of consciousness, such as logical operation, intuition, insight, voluntary anticipation, etc. Exposure to risks, from the point of view of the traditional approach to management theory, is some integral attribute of life and requires the development of a minimization scheme. Moreover, the minimization of risks is brought to the analytical operations of the subject of activity, without considering other mental tools. The situation of uncertainty in the management process requires recourse to intuitive practices that are quite effective if properly understood and applied. The image of pedagogical activity is the leading system for organizing activities. The image sets the parameters of activity with their value motivation. Conducting activities presupposes a certain structuring in its procedural order with the development of algorithmic guidelines. The importance of realizing the universal interconnection of processes and phenomena should be specially noted, this entails a restructuring of the mental activity of the subject of the translation of meaning as an actor of educational activity. The seemingly disparate elements of activity have hidden connections, sometimes mediated by other

O. B. Kevbrina et al.

elements, but not isolated at all from each other. This thesis suggests a different degree of activity of relationships and their quantitative/qualitative parameters. Awareness and activation of internal resources with this approach become a single mechanism for ensuring human self-realization. Moreover, self-realization is inconceivable without an awareness of the spatio-temporal, socio-cultural and, ultimately, worldview coordinates of the existence of a person in the world. The highest need for self-realization lies not only in external success, but also in a holistic, systemically organized worldview. It provides an opportunity to concentrate reflexive practices around a single “I” (egocentre). Philosophy as a branch of culture contributes to the activation of this spiritual need of the individual and its implementation in mental practices. It is important to note that, speaking about the worldview, we use the method of self-reflective projection, which allows us to operate with its structural organization. Projection itself as a cognitive practice appears in the form of unconfirmed knowledge by objective means of cognitive activity, which makes it difficult to verify the information received. Ethics appears as a way of accepting reality, reworked in accordance with the desired model of the world. The normative-value character of the ethical reproduces its socio-psychological parameters. Self-restraint and control, produced from the sphere of social interaction into the sphere of personal and individual being, mark the transition from ethic to moral. Moreover, morality is more of a value-semantic nature than a normative-functional one. The structurelessness is identical to the unconscious, the structuredness of the world—to the conscious, the normative functionality—to the ethic, the value-semantic matrix—to the moral. In this schematic chain, a certain continuity and transition to an higher level can be traced. It should be noted that the ascent is marked by the growth of personality self-awareness. Self-awareness appears as a process and an act at the same time, which is characteristic of many psychological phenomena. Self-awareness as a process reproduces the movement of thought with an increasing attempt to comprehend it from a higher order of mental activity. In the process of self-awareness, a polycentric structure, in which the “core-periphery” relationships are constantly shifting, is formed. Each subsequent layer is a way of reflecting, overcoming and comprehending the previous layer, reflecting the dialectical law of denial of negation. Self-awareness is also inherent in the form of a spiral, which is fully confirmed with reverse practices. Responsibility appears as a psychological experience of the correspondence of the necessary (due) to the reality. “Necessary” has a vast arsenal of the due: behavior, train of thought,

Dialectics of Systems Development

communication, etc. A multitude of branched algorithmic polyvariate constructions proceeds from the conception of thought to its transmission and implementation. Pretentiousness, claiming to be a guarantee of quality, acts as a short-term stimulating factor that has a short-term effect and does not lay down the basic temporal coordinates. Claims in itself are disclosed in different ways in various industries. So, for example, the pretentiousness regarding pedagogical activity is revealed in the relations of the subjects of education, reproducing its qualitative level. At the same time, the element of contradiction, expressed in a unilateral striving for quality, does not reveal its long-term prospects, turning into reporting for the sake of reporting, remains. This factor is destructive due to not considering the temporal coordinates of development. The pretentiousness of the management actor reflects the level of perception of reality, understanding of the fundamental constants, primarily societal being. Lack of expediency introduces routine and dangerous tendencies of deformation of managerial realities. Psychological demotivation as a result of an incorrect assessment by the subordinate parties of the management process of claims negatively affects both the very effectiveness of the management process and its participants.

4

Conclusion

Mixed virtual-objective reality, as a synthesis of the two systems described above, in the process of cognition resolves the contradiction between the “multi-knowledge” of rationality and the “clip simplicity” of the mythologization of virtuality. However, the resolution of this contradiction requires an appeal to the essential problems of psychology and philosophy in the nature of the cognizing subject. The essential problem of realizing the purpose of education is the process of forming personal qualities of a successful future specialist. Within the framework of this work, we have separately identified the cornerstone problem areas of the dialectics of cooperation and competition, considered in the aspect of the socio-philosophical approach. In this contextual field, the act of choice that occurs on many levels of personality functioning and is determined by natural and

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socio-cultural conditions is especially vividly manifested (Aizyatov & Pechatkin, 2020, p. 15). This determinism is reflected in examples of following instincts (naturally a native aspect), including instincts that have a social form, but are essentially biological programs. The socio-cultural cross-section is reflected in the features of the structure of the society of the forming individual, in its structure, in the dynamics of development. The social in general, as a supra-natural program, can be characterized in the format of the “world of culture”, in which culture will carry the semantic connotation of “second nature”, and the social as ordered relations between individuals. In this terminological relationship, culture appears as a result (material product) of human life, and sociality is its specific form of interaction within the framework of supranatural programs of existence (consciousness).

References Aizyatov, F. A., & Pechatkin, A. S. (2020). Ecosophical initiation in the context of the educational process. Society: Philosophy, History, Culture, 4(72), 13–19. Ascott, R. (1995). The architecture of cyberception. In M. Toy (Ed.), Architects in cyberspace (pp. 38–41.9). Academy Editions. Ayupova, D. A., & Murugova, V. V. (2019). Cooperation and partnership of students in the process of teaching philosophy. Bulletin of Scientific Achievements, 3, 8–10.2. Bondarenko, T. A. (2006). Transformation of personality consciousness under the influence of virtual reality. Vestnik of Don State Technical University, 6(1)(28), 41–45.3. Elkhova, O. I. (2011). Ontological content of virtual space. Dissertation of Doctor of Philosophy, Ufa, 330, p. 4. Ilyenkov, E. V. (1984). School should teach thinking. Science and Life, 8, 3–15.6. Khabakhu, S. N. (2017). To the methodology of researching cooperation as a social institution: Achievements and prospects. Theory and Practice of Social Development, 11, 47–50.8. Milgram, P., et al. (2005). Augmented reality: A class of displays on the reality-virtuality continuum. Telemanipulator and Telepresence Technologies, 23, 51.10. Nosov, N. A. (1999). Virtual reality. Questions of Philosophy, 10, 153.7. Winfield, N. (2016). Pope on social networking: The virtual is real. Associated Press. http://www.ideas4god.com/2013/02/13/popesocial-media. Data accessed: November 01, 2021. Zeynalov, G. G. (2012). Search for new rationality in science. Educational Experiment in Education, 2, 5–12.

Problems of Consideration of Environmental Factors in Urban Planning as a Mechanism for Sustainable Development Dauren N. Bekezhanov , Mikhail V. Demidov , Nadezhda V. Semenova , Gulnaz S. Gaynetdinova , and Vera P. Filippova

Abstract

1

The issues of providing favorable conditions are the focus of the authorities and the public. A critical aspect is the consideration of environmental factors in the organization of spaces and territories for different groups of the population. This problem is especially relevant for cities characterized by high population density and existing environmental problems. The paper aims to analyze the existing problems of providing the necessary environmental conditions. The paper analyzes the existing environmental problems in urban planning. The peculiarities of the dependence of environmental factors on urban planning policy in the conditions of a particular region are studied. The authors suggest ways to solve the identified problems based on the analysis of experience in creating environmentally effective models of urban development in other countries and regions. Keywords

Sustainable development Urban planning activities JEL Classification

K320

.

K390

.

R110

.

..

.

.

Environmental factors Urbanization Environment

R140

.

Q010

D. N. Bekezhanov Zhetysu University named after I. Zhansugurov, Taldykorgan, Kazakhstan M. V. Demidov . V. P. Filippova Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia N. V. Semenova (&) . G. S. Gaynetdinova Chuvash State University, Cheboksary, Russia e-mail: [email protected]

Introduction

Cities are predominantly enclosed areas with infrastructure and dense residential buildings and homes, in which there is a reduction of green and open spaces (Din Dar et al., 2021; Elbeltagi et al., 2021; Puchol-Salort et al., 2021; Ring et al., 2021; United Nations, 2019). He et al. (2018) studied the data on land use for the city of Datong from 2000 to 2018. According to the authors, during the studied period, the growth of monotonous infrastructure is accompanied by gas emissions, climate change, and other anthropogenic pollution sources, which increase the environmental, social, health, and economic vulnerability of cities (Haaland & Bosch, 2015). The word “resilience” means “to go back” (Klein et al., 2003). Holling (1973) introduced the concept of “sustainability of an ecological system.” Nowadays, the term is used by authors of various concepts in economics, management, psychology, and other areas. It should be noted that the concept of urban sustainability is currently evolving towards the concept of environmental sustainability, which refers to the ability to adapt to the environment and maintain a sustainable state. Thus, the topic of maintaining favorable environmental conditions in cities is relevant, especially during the COVID-19 pandemic, when humanity saw the social and biological need to create favorable and comfortable spaces. The paper aims to analyze the existing problems of providing the necessary environmental conditions.

2

Methodology

We use comparative and analytical methods. The issues of compliance with environmental requirements in urban planning are considered using the example of the Chuvash Republic.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_10

49

50

3

D. N. Bekezhanov et al.

Results

Urban settlements associated with changes in traditional land use patterns, primarily related to the expansion and dispersal of buildings and structures of different functional purposes. This trend is particularly evident in the redistribution of land resources by transferring land from one category to another. Agricultural lands are of particular importance because they have the priority of protection and conservation. Another mechanism for expanding urban areas is the inclusion of forests and agricultural land within the boundaries of settlements. On the one hand, these processes are associated with the positive process of urbanization—the creation of the most favorable and comfortable living conditions for the population. On the other hand, they give the opposite effect. In their work, Chen et al. (2021) indicate that this effect is expressed in transformational changes in land use and the distribution of objects that have an increased ecological load on the environment in large areas, which interact with each other and with other components of ecosystems and have a negative impact on the health of the population. Today’s cities have the following negative impact on the environment: • Official statistics often do not include data on migrant workers who live in regional cities. This trend can be seen in most cities in Russia, with a few exceptions. For example, the number of city dwellers in areas with high levels of contamination by chemical or radioactive waste is decreasing. The environmental consequences of this phenomenon are concentrations of air pollution and waste in places of mass accumulation of people and changes in the heat exchange in the environment, which have now become irreversible. • Changing the target category of especially ecologically valuable land (forest, agricultural, specially protected). Most often, the expansion of the territories of settlements is carried out by joining rural areas, which leads to a change of natural processes in these areas and the ecosystems closely related to them to artificial ones. This turns out to be distressing for them, and the properties of self-restoration and self-regulation become impossible for them under the new conditions. Article 35 of “On environmental protection” specifies that the activities of territorial planning, town planning zoning, and territory planning must be implemented in accordance with environmental requirements. However, a different picture is observed in practice. Urban planning mainly aims to create conditions for the population and, from these positions, provides the zoning of areas, which leads to the distribution of the environmental load on particular areas.

The anthropogenic load is minimized in the areas of residential development, public and business areas, and the location of cultural and social facilities. In turn, in other areas (lands of industry, transport, energy, communications, etc.), there is an increase in the air, water, and soil pollutants. This unbalanced dispersal of inactive ecological influence also becomes irrational and leads to human-made and ecological emergencies. The way out of this situation is the transition to the use of waste-free and low-waste technology, SMART technology, etc. • The increase in the well-being of the population and socio-economic development is an important economic indicator. Through the prism of the ecological view, this factor can be considered from two perspectives: (1) The more prosperous a society, the more developed its culture, including ecological; (2) the increase in the welfare is accompanied by an increase in the needs of the members of this society, for example, this leads to an increase in demand for low-rise individual housing construction that perform a resource function for people and are the means of production. This can lead to increased environmental stress on large areas and reduce the sustainability of their development (Chen et al., 2021; Wigginton et al., 2016). • An important anthropogenic factor in ecology is transportation, which exponentially increases as the city and its population grow. This economic factor is one of the main causes of pollution in cities. The road network is expanded to meet the population’s demand, and new roads, including toll roads, are built. The construction of transport networks is mainly carried out through the transfer of agricultural land to transport land, i.e., it affects land use as a whole (Kii et al., 2019). Nowadays, most entities cannot yet pay maximum attention to the optimization of environmental quality. It is advisable to formulate rules for objects of environmental pollution at the local level and separately for objects-sources of trans-regional emissions. Moreover, it is advisable to limit carbon emissions and water costs for particular subjects of environmental relations. Some authors propose reorganizing the spatial structure of ecologically disturbed lands and industrial lands as an effective measure (Liu, 2018). Thus, it is recommended that the priority of land and urban planning policies in urban settlements allow for new plans for regional spatial expansion and avoid overly restrictive land policies. As an example, let us take the experience of China, where urban development is particularly rapid. Thus, the Chinese government has a consistent environmental policy. For example, it issued an “Action plan to prevent and control air pollution,” an “Action plan to prevent and control water pollution,” and an “Action plan to protect the soil

Problems of Consideration of Environmental Factors in Urban Planning as a Mechanism for Sustainable Development

environment and control pollution for effective pollution control” (Ahvenniemi et al., 2017; Liang et al., 2019). In the Chuvash Republic, it is necessary to strengthen the work on creating public–private and municipal-private partnerships for the development of territories with a focus on environmental well-being. It should be noted that there is some experience in this area. For example, an ethnoecological complex “Yasna” was created. The project aims to preserve ethnocultural traditions in a unique natural environment. Many authors propose that an effective method is multifunctional network with multiple positive impacts on the environment, human well-being, and quality of life (Artmann et al., 2019; Haaland & van den Bosch, 2015; Khomenko et al., 2020; Ring et al., 2021; Yu et al., 2016). Therefore, according to Artmann et al. (2019), “it is essential to consider the effects of compact development not only at larger scales, but also at neighborhood and household scales to pursue moderated and qualified densification, securing and (re-)developing urban green spaces and their multidimensional positive impacts.” For example, as early as the 1980s, Berlin decided to use the biotope area factor (Biotopflächenfaktor) as a planning tool for green spaces in a densely populated and densely built city. The concept of greening has been actively implemented by cities such as Malmö, Seattle, Helsinki, London, Stockholm, Northwest England, Washington, D.C., Singapore, Toronto, and Vancouver. The problem of shortage of greenery is also recognized in Russia. Therefore, the green policy in urban planning in Russia is currently in the phase of development and active formation. For example, the “green belt” of Moscow started to be created in the 1930s. It includes large areas of forests and forest parks. A similar trend is widespread in the regions. For example, the Chuvash Republic is a region rich in forests because the northern part of its territory is part of the taiga zone. However, cities have the problem of a shortage of green spaces, which is solved by creating parks, forest parks, and planting trees in the areas of residential development. Simultaneously, it is necessary to note that the problem of expansion is typical only for the city of Cheboksary, the capital of the region. The development is carried out by involving new land that previously belonged to the zones intended for agriculture and horticulture or the placement of industrial enterprises. Another way of development is the connection of land plots of suburban areas and the transfer of these lands in the category of “land inhabited areas.” In new residential complexes, the lack of trees and shrubs is compensated by creating different landscape designs in the yards and streets. This mechanism also creates favorable conditions for the residents of these areas. Another tool is the involvement of authorities and the public in the greening process. The problem lies in the

51

insufficient legal regulation of the protection of these territories, which must be implemented at the regional and local levels. The COVID-19 pandemic has shown that the creation and expansion of environmentally friendly spaces is an important tool for preserving the health of populations in an area (Mouratidis & Yiannakou, 2021). In the conditions of self-isolation, urban dwellers felt the need for green spaces where they could relax and recuperate more than ever. The authorities faced the additional problem of ensuring the safety of citizens in such places, public transport, etc.

4

Conclusion

Thus, the issues of creating conditions that pursue the goal of creating an environmentally friendly environment are an important function of local authorities. Therefore, it is necessary to continue working in this direction, including applying the positive experience of other countries and regions.

References Ahvenniemi, H., Huovila, A., Pinto-Seppä, I., & Airaksinen, M. (2017). What are the differences between sustainable and smart cities. Cities, 60, 234–245. https://doi.org/10.1016/j.cities.2016.09. 009 Artmann, M., Inostroza, L., & Fan, P. (2019). Urban sprawl, compact urban development and green cities. How much do we know, how much do we agree? Ecological Indicators, 96(2), 3–9. https://doi. org/10.1016/j.ecolind.2018.10.059 Chen, D., Lu, X., Hu, W., Zhang, C., & Lin, Y. (2021). How urban sprawl influences eco-environmental quality: Empirical research in China by using the Spatial Durbin model. Ecological Indicators, 131, 108113. https://doi.org/10.1016/j.ecolind.2021.108113 Din Dar, M. U., Ishaq Shah, A., Bhat, Sh. A., Kumar, R., Huisingh, D., & Kaur, R. (2021). Blue Green infrastructure as a tool for sustainable urban development. Journal of Cleaner Production, 318, 128474. https://doi.org/10.1016/j.jclepro.2021.128474 Elbeltagi, A., Azad, N., Arshad, A., Mohammed, S., Mokhtar, A., Pande, C., Etedali, H. R., Bhat, S. A., Md. Towfiqul Islam, A. R., & Deng, J. (2021). Applications of Gaussian process regression for predicting blue water footprint: Case study in Ad Daqahliyah, Egypt. Agricultural Water Management, 255, 107052. https://doi. org/10.1016/j.agwat.2021.107052 Haaland, C., & van den Bosch, C. K. (2015). Challenges and strategies for urban green-space planning in cities undergoing densification: A review. Urban Forestry & Urban Greening, 14(4), 760–771. https://doi.org/10.1016/j.ufug.2015.07.009 He, L., Shen, J., & Zhang, Y. (2018). Ecological vulnerability assessment for ecological conservation and environmental management. Journal of Environmental Management, 206, 1115–1125. https://doi.org/10.1016/j.jenvman.2017.11.059 Holling, C. S. (1973). Resilience and stability of ecological systems. Annual Review of Ecology and Systematics, 4(1), 1–23. https://doi. org/10.1146/annurev.es.04.110173.000245

52 Khomenko, S., Nieuwenhuijsen, M., Ambròs, A., Wegener, S., & Mueller, N. (2020). Is a livable city a healthy city? Health impacts of urban and transport planning in Vienna, Austria. Environmental Research, 183, 109238. https://doi.org/10.1016/j.envres.2020. 109238 Kii, M., Moeckel, R., & Thill, J. (2019). Land use, transport, and environment interactions: WCTR 2016 contributions and future research directions. Computers, Environment and Urban Systems, 77(9), 101335. https://doi.org/10.1016/j.compenvurbsys.2019.04. 002 Klein, R. J. T., Nicholls, R. J., & Thomalla, F. (2003). Resilience to natural hazards: How useful is this concept? Environmental Hazards, 5(1), 35–45. https://doi.org/10.1016/j.hazards.2004.02. 001 Liang, L., Wang, Zh., & Li, J. (2019). The effect of urbanization on environmental pollution in rapidly developing urban agglomerations. Journal of Cleaner Production, 237, 117649. https://doi.org/ 10.1016/j.jclepro.2019.117649 Liu, Y. (2018). Introduction to land use and rural sustainability in China. Land Use Policy, 74, 1–4. https://doi.org/10.1016/j. landusepol.2018.01.032 Mouratidis, K., & Yiannakou, A. (2021). COVID-19 and urban planning: Built environment, health, and well-being in Greek cities

D. N. Bekezhanov et al. before and during the pandemic. Cities, 121, 103491. https://doi. org/10.1016/j.cities.2021.103491 Puchol-Salort, P., O’Keeffe, J., van Reeuwijk, M., & Mijic, A. (2021). An urban planning sustainability framework: Systems approach to blue green urban design. Sustainable Cities and Society, 66, 102677. https://doi.org/10.1016/j.scs.2020.102677 Ring, Z., Damyanovic, D., & Reinwald, F. (2021). Green and open space factor Vienna: A steering and evaluation tool for urban green infrastructure. Urban Forestry & Urban Greening, 62, 127131. https://doi.org/10.1016/j.ufug.2021.127131 United Nations. (2019). 2018 Revision of world urbanization prospects. New York, NY: Department of Economic and Social Affairs. Retrieved from https://www.un.org/development/desa/publications/ 2018-revision-of-world-urbanization-prospects.html. Accessed September 10, 2021. Wigginton, N. S., Fahrenkamp-Uppenbrink, J., Wible, B., & Malakoff, D. (2016). Cities are the future. Science, 352(6288), 904–905. https://doi.org/10.1126/science.352.6288.904 Yu, S., Yu, B., Song, W., Wu, B., Zhou, J., Huang, Y., Wu, J., Zhao, F., & Mao, W. (2016). View-based greenery: A three-dimensional assessment of city buildings’ green visibility using floor green view index. Landscape and Urban Planning, 152, 13–26. https://doi.org/ 10.1016/j.landurbplan.2016.04.004

Evaluation of the Effectiveness of Agri-Food Policy as a Component of the Economic Security of the Region Natalia A. Asanova , Nadezhda A. Gorkova , Margarita V. Vertiy , Fatima R. Yeshugova , and Irina G. Peshkova

Abstract

1

The article reveals a little-studied regional aspect of ensuring food security. The article studies the role of state regulation in this process. Targeted state programs are urgently needed to maintain the effectiveness of the activities of organizations of the agro-industrial complex. As studies have shown, the profitability of activities and the total solvency of agricultural organizations is characterized as stable. At the same time, there is a shortage of own circulating assets. According to the results of the last two studied periods, the profitability of sales decreased, which was caused by an increase in the costs of crop production (fertilizers, related products) and animal husbandry (veterinary products, feed, mixtures). This is evidenced by the high rating of the Krasnodar Territory as an agricultural region of the country producing the largest share of all agro-industrial products of the country. Keywords

.

Food security Agriculture Agro-industrial complex

.

Regional development

JEL Classification

K2

.

D6

N. A. Asanova (&) . N. A. Gorkova . F. R. Yeshugova . I. G. Peshkova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] M. V. Vertiy Kuban State Agrarian University Named After I.T. Trubilin, Krasnodar, Russia

.

Introduction

The article reveals a little-studied regional aspect of ensuring food security. The article studies the role of state regulation in this process. The financial efficiency of agricultural companies is important for the food security of the region (Fig. 1). Rice 1 showed that in the Krasnodar Territory of Russia in 2018–2019. There were signs of an increase in the financial efficiency of agricultural companies. This is evidence of a reduction in food security risks in the region under consideration and the result of successful state regulation.

2

Methodology

Table 1 shows the coefficients that have the lowest level of correlation and are able to assess the effectiveness of the activities of business entities for 2018–2020 as accurately and promptly as possible. Thus, the table illustrates the values of indicators of solvency and profitability of organizations, changes in their values in dynamics over the period under study. The total return on assets has a steady downward trend of 1.6% points. In turn, the value of the profitability of goods sold increased by 1.1% points (Altukhov, 2019). The current liquidity of organizations for 2020 amounted to 188.4, which is more than the same value of the base period as a whole by 10.3% points. And the coefficient of provision with their own circulating assets indicates that agribusiness organizations have not been able to pay their debts at their own expense since 2019. In 2020, there was a record gross soybean harvest. The sunflower harvest amounted to 1112.7 thousand tons with an average yield of 25.1 c/ha, which is 1.2% lower than in 2018.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_11

53

54

N. A. Asanova et al.

Fig. 1 Dynamics of agricultural organizations financial performance, billion rubles. Source Authors

Balance, 2019, 27,419.90

Balance, 2018, 25,587.10 Profit, 2018, 28,786.40

Loss, 2018, -3,199.30

Profit

Table 1 Changes in the indicators of solvency and profitability of agricultural organizations of the Krasnodar Territory

Profit, 2020, 31,744.90

Profit, 2019, 32,404.90

2018

Return on assets, % Return on goods sold, products (works, services), % Current liquidity ratio The coefficient of provision with their own circulating assets

Loss, 2020, -5,725.90

Balance

Loss

Indicator

The coefficient of autonomy

Loss, 2019, -4,985.00

Balance, 2020, 26,019.00

2019

2020

Absolute deviation of 2020 from 2018, (+; −) −1.6

7.1

6.5

5.5

23.3

26.3

24.4

1.1

178.1

201.7

188.4

10.3

0.6

−4.5

−11.1

–

51.9

50.7

48.9

−3.0

Source Developed by the authors

In addition, over the three years studied in the Krasnodar Territory, the yield of sugar beet increased to 518.7 c /ha or 5.1%, grapes—up to 105 c/ ha or 13.4%, fruits and berries— by 10.3%.

3

Results

To confirm the need for support of agricultural organizations from the state and the banking sector, a study was conducted in which indicators of consumption of livestock and crop

Fig. 2 Subprograms of state program “development of agriculture and regulation of agricultural products, raw materials and food markets”. Source Developed by the authors

production by the population were presented (Popov & Demidenko, 2016; Zhminko & Ozova, 2016). As part of Program, subprograms were implemented in 2020 (Fig. 2) (Popov & Demidenko, 2016). The program (Fig. 2) regulates climate and other resources, as well as to increase not only the stability of farmers’ activities, but also to make the countryside a more attractive place to live and work in order to attract new market participants. To date, the auxiliary production of business entities is not effective enough, or even has been completely eliminated. It should be noted that today

Evaluation of the Effectiveness of Agri-Food Policy as a Component of the Economic Security of the Region

there remains a high proportion of imported veterinary drugs, feed, pesticides, etc., widely used for agricultural purposes by agricultural organizations of the Krasnodar Territory. In total, regional activities were financed in the amount of 8295.2 million rubles from the federal budget. With regard to the highlighted points of the program, it can be concluded that today there is a need to update large-scale agronomic technical and technological equipment. Thus, the problem of irrigation efficiency has not been solved everywhere, veterinary and sanitary measures should be strengthened, and the development of the fisheries complex requires the greatest attention (Tyurnikov, 2019).

4

Conclusion

Targeted state programs are urgently needed to maintain the effectiveness of the activities of organizations of the agro-industrial complex. As studies have shown, the profitability of activities and the total solvency of agricultural organizations is characterized as stable. At the same time, there is a shortage of own circulating assets. According to the results of the last two studied periods, the profitability of sales decreased, which was caused by an increase in the costs of crop production (fertilizers, related products) and animal husbandry (veterinary products, feed, mixtures). This is evidenced by the high rating of the Krasnodar Territory as an agricultural region of the country producing the largest share of all agro-industrial products of the country.

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References Altukhov, A. I. (2019). The paradigm of food security in Russia. Youth Development and Support Fund “Personnel Reserve”. Gorbatov, A. V. (2019). Development of the agro-industrial complex of Russia and the Kaluga Region in the food security system. Public administration and quality of regional development: Experience of the Kaluga Region (pp. 168–197). Analytical consulting firm “Politop”. Mitina, I. A., Zybarev, S. V., & Savon, I. V. (2020). Financial policy as a priority for ensuring the economic security of trade enterprises. The Eurasian Scientific Journal, 2(12). https://esj.today/PDF/ 66ECVN220.pdf. Data accessed: Oct. 12, 2022. Popov, Z. S., & Demidenko, I. M. (2016). Support of small and medium-sized businesses in the Krasnodar Territory. Scientific and Methodological Electronic Journal “Concept”, 12, 36–40. Rudasova, V. V. (2020). Directions of state support of agro-industrial complex branches in the Krasnodar Territory. In The Proceedings of the Scientific and Practical Conference “Conditions, imperatives and alternatives for the development of modern society in a period of instability: Economics, management, socionomy, law” (Tikhoretsk, May 12, 2020) (pp. 552–555). Federal State Budgetary Institution “Russian Energy Agency” of the Ministry of Energy of Russia Krasnodar Central Research Institute—Branch of the Federal State Budgetary Institution “REA” of the Ministry of Energy of Russia. Tyurnikov, V. A. (2019). Efficiency of the system of state regulation of agricultural production of the Krasnodar Territory. In Proceedings of the XII International Scientific and Practical Conference “Economics and management: Topical issues of theory and practice” (Krasnodar, May 22, 2019) (pp. 304–311). Federal State Budgetary Institution “Russian Energy Agency” of the Ministry of Energy of Russia Krasnodar Central Research Institute—Branch of the Federal State Budgetary Institution “REA” of the Ministry of Energy of Russia. Zhminko, A. E., & Ozova, B. H. (2016). Statistical evaluation of search queries. Scientific Review, 12, 175–179.

Employment of Workers in Green Jobs: Industry, Product and Skill Approaches Elena N. Lishchuk , Vera V. Bakaeva , Vladimir V. Saliy , and Nikolay V. Shalanov

Abstract

1

Purpose: The article discusses the requirements for applicants in the so-called green jobs. Skill requirements for green and brown jobs are compared. Methodology: The results of studies published in leading peer-reviewed journals have been studied to analyze the requirements for applicants in green jobs. Findings: Based on the analysis of the literature, we have proposed a classification of existing approaches to the definition of green jobs, namely, sectoral, product and professional (occupational) approaches have been identified. It is proposed to single out white jobs as an independent object of analysis in addition to green and brown jobs. Originality: We emphasize that the modern education system is able to provide practice-oriented training of young professionals for the green economy only with the active participation of employers. This task can be achieved on the basis of cooperation between the professional and educational communities. Keywords

. .

.

.

Jobs Employer requirements Skills Cooperation Green employers

.

Green economy

JEL Classification

Q52

. . . . P13

J08

J24

J54

E. N. Lishchuk (&) Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences, Novosibirsk, Russia e-mail: [email protected] E. N. Lishchuk . V. V. Bakaeva . V. V. Saliy . N. V. Shalanov Siberian University of Consumer Cooperation, Novosibirsk, Russia e-mail: [email protected]

Introduction

Sustainable development is such a development in which an increase in the scale of activity in the short run occurs without losses in the long run. This development of the economy and society implies environmental, social and economic sustainability (Dempsey et al., 2011; Polasky et al., 2019). Therefore, in order to achieve sustainable development, it is necessary to minimize the negative impact of production activities on the environment, to promote the development of human resources and the accumulation of human capital and to ensure that the benefits of economic growth are received by all members of society. The implementation of state policy, considering the goals of sustainable development, has a significant impact on various areas of society, including the labor market. Moreover, as follows from modern publications devoted to the problems of sustainable development, the labor market is becoming one of the central areas that is affected by the state policy to support sustainable development (Pissarides, 2015, 2018). In general, the policy for the transformation of the labor market in the interests of sustainable development includes two main directions: (1) promoting the creation of “green” jobs; (2) countering the creation of “brown” jobs. Green jobs include jobs created in areas of activity characterized by the rational use of resources and the absence of environmental pollution. Accordingly, brown jobs include jobs in enterprises that damage the environment (Pissarides, 2018). It should be borne in mind that the excessive activity of the state in the elimination of brown jobs can lead to mass unemployment. In this case, the activities of the state to maintain environmental sustainability will lead to a violation

E. N. Lishchuk Siberian State University of Water Transport, Novosibirsk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_12

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of social and economic sustainability, which is in conflict with the concept of sustainable development. Formally, the labor market can offer a sufficient number of new jobs for those who have lost their jobs if the number of newly created green jobs exceeds the number of brown jobs eliminated. The challenge of creating enough jobs is real, considering the labor intensity inherent in “green” jobs. However, the employment of workers who have lost brown jobs may be difficult due to non-compliance with the qualification requirements of “green” employers. In accordance with the foregoing, it becomes relevant to compare the requirements imposed by employers on workers employed in green and brown jobs through the prism of the sectoral affiliation of organizations. If there are no significant differences between these groups of jobs in the occupational structure of employment and the requirements for workers are sufficiently identical, then the replacement of brown jobs by green ones will not be accompanied by a sharp increase in unemployment. However, if the requirements for green and brown jobs are significantly different, with increased demands placed on workers in green jobs, then such a transformation may be vulnerable to individual industries. In this case, the state policy in the field of supporting green jobs should be accompanied by active financing of retraining and advanced training programs for needy industries where the demand for workers is high. In addition, a dynamic response of the vocational education system is needed when preparing young professionals for green industries. Changing requirements for professional skills and competencies of job seekers in the labor market in a dynamic environment is widely covered in the literature (Acemoglu et al., 2020; Atalay et al., 2020; Autor et al., 2003; Hershbein & Kahn, 2018; Lishchuk & Kapelyuk, 2020, 2021; Modestino et al., 2016, 2020; Squicciarini & Nachtigall, 2021; Tan & Laswad, 2018; Turrell et al., 2018). In recent years, there has been an increase in research interest in transforming job applicant skill requirements driven by the creation of green jobs (Consoli et al., 2016; Pissarides, 2018; Vona et al., 2018). The scientific novelty of the study lies in the generalization of approaches to the classification of jobs in terms of their impact on the environment, the development of a methodology for the classification of jobs, as well as the development of recommendations for the cooperation of entities that affect employment.

2

Methodology

Analyzing the differences in requirements for workers in green and brown workplaces is complicated by the fact that there is no single approach to the definition of the concept of a “green workplace” (Consoli et al., 2016; Dechenes, 2013;

Hershbein & Kahn, 2018; Kouri & Clarke, 2014; Morriss et al., 2009; Pissarides, 2018). Based on the analysis of the literature, we identified three alternative approaches, which we called product, industry and professional (occupational) approaches. The product approach is based on the analysis of the use of manufactured products. Green jobs are considered to be jobs at enterprises that produce products, the use of which minimizes harm to the environment, contributes to a careful attitude to it. These products include, for example, solar panels, biofuels, hydrogen-powered vehicles. If the use of the product is harmful to the environment, then all jobs associated with its production are considered “brown”. Examples of such products are aerosols, single-use plastics. The product approach can be extended to the provision of services. For example, a take-away coffee service causes more environmental damage than coffee drunk from a cup in a coffee shop. With the sectoral approach, the characteristic of the workplace as green or brown is determined by the sectoral affiliation of the enterprise where the employee is employed. With the sectoral approach, in contrast to the product approach, the basis is the production process itself, and not the result of production activities. All jobs created in sectors related to the green economy are classified as “green”. Examples of areas of activity that are classified as green include public transport, organic agriculture, solar and wind energy. Accordingly, brown jobs refer to industries that damage the environment. Among them are the chemical and leather industries, gold mining, mining of ore, coal and oil. In the professional (occupational) approach, green professions include those in which, during the transition to a green economy, an increase in the number of jobs is observed, or there is a transformation of the profession and skill requirements. As the most typical examples, F. Vona and co-authors cite such professions as an environmental engineer, a hazardous material removal worker, a solar photovoltaic installer (Vona et al., 2018). These include new professions that have emerged as a result of such transition. Examples of new green jobs include a wind energy engineer, a fuel cell technician, and a recycling coordinator. Among other professions that these authors classified as green, one can name such as a nuclear power reactor operator, an aerospace engineer, a roofer, a supply chain manager (Vona et al., 2018). Brown occupations are those that are most likely to be employed in industries that damage the environment (Vona et al., 2018). An example of a brown profession, according to D. Consoli and co-authors, is an agronomist (agricultural engineer) (Consoli et al., 2016). A fundamentally different point of view is presented in the work of A. Bowen and co-authors, according to which jobs cannot be unambiguously characterized as green or brown. The “green–brown” workplace dichotomy is not a

Employment of Workers in Green Jobs: Industry, Product and Skill Approaches

discrete, binary characteristic, but rather a continuum in which each workplace has a certain ratio of “green” and “brown” characteristics. At the same time, it should be noted that there are a small number of absolutely “green” jobs with the absence of “brown” characteristics (Bowen et al., 2018). In order to analyze the requirements for applicants in green jobs, scientific articles published in international peer-reviewed journals using the Google Scholar search engine were used. The analysis was conducted on the keywords “green jobs” and “skill requirements”. Articles that focused on comparing skills in green and brown jobs were selected for further analysis.

3

Results

The work of D. Consoli and co-authors, based on a professional approach in relation to the United States, shows that green workplaces have higher requirements for workers (Consoli et al., 2016). In particular, in such workplaces, the requirements for the education and experience of employees are higher. Newly created professions require longer professional training. The authors of this paper explain this by saying that green jobs are less routine. Technological processes in the green economy are relatively new, often innovative and therefore require workers to be creative and problem-solving in order to achieve their goals. The article by A. Bowen and co-authors made more cautious conclusions, according to which the transition to partially green jobs does not require significant skills development. However, new skills are needed when applying for fully green jobs. In addition, they note significant sectoral variation in estimates of skills gaps, citing agriculture as one of the industries that will require larger retraining programs (Bowen et al., 2018). Thus, the analysis of the literature allows us to conclude that the transition to a green economy will not lead to a reduction in the need for personnel. At the same time, new jobs will be distinguished by increased requirements for employees. With this in mind, it should be recognized that a forced transition to a green economy may have risks associated with the loss of employment of those employed in brown jobs and the difficulties of their employment in green jobs due to the lack of necessary skills. This can lead to an imbalance in certain sectors of the economy. Our analysis showed that the theoretical and methodological basis of the study of green jobs needs to be improved. In our opinion, it is important to single out white jobs as an independent object of analysis, i.e. those that cannot be classified as green or brown. Those employed in white jobs are not directly associated with the production of environmentally friendly or hazardous products. The sectoral

59

affiliation of the white workplace does not affect the degree of environmental impact. Those employed in white jobs include doctors, teachers, cultural workers. At the same time, in especially hazardous industries, white jobs can be occupied by employees of personnel services, accounting, legal and planning and economic departments. The increase in the number of white jobs is not accompanied by an assessment of the extent of environmental damage. However, the creation of white jobs is important in terms of employing brown workers and preventing unemployment. The professional (occupational) approach seems to us the most promising of all approaches to the classification of jobs into green and brown. Its advantage is that it makes it possible to classify the employed into greens and browns, regardless of sectoral affiliation, which is more in line with reality. So, for example, in the mining industry, specialists who are not directly involved in the production process (for example, accountants) occupy not brown, but white jobs. It should be borne in mind that with any approach, the classification is conditional, because the definition of harmful and safe industries can be debatable. One of the most striking examples is the nuclear power industry. On the one hand, in normal operation, a nuclear power plant causes minimal harm to the environment. On the other hand, an accident at a nuclear power plant can lead to a large-scale man-made disaster (such as the accident at the Chernobyl nuclear power plant in 1986 or the accident at the Fukushima nuclear power plant in Japan in 2011). In addition, a large enterprise belonging to an industry that is harmful to the environment can minimize the risks of possible damage to a large extent. An example is the implementation of the principles of the green chemical industry (green chemistry).

4

Conclusion

In our opinion, the current education system is not able to sufficiently provide practice-oriented training of young professionals for the green economy without the active participation of employers. Immersion of a young specialist in the functionality of a green workplace should be carried out at the workplace itself with the participation of a teacher (mentor). At the same time, the effective implementation of this task can be achieved with the interest of three parties: the employer, the educational institution and the young specialist. This implies the creation of a system of cooperation between vocational education and the real sector of the economy. Only in this case it will be possible to avoid an imbalance in the labor market during the transition to a green economy.

60 Acknowledgements The research was carried out with the plan of research work of IEIE SB RAS, project «Actors, drivers, consequences of social changes in the present-day society: theory and empirics», № 121040100280-1.

References Acemoglu, D., Autor, D.H., Hazell, J., & Restrepo, P. (2020). AI and Jobs: Evidence from online vacancies. NBER Working Paper No. 28257. https://www.nber.org/system/files/working_papers/ w28257/w28257.pdf. Data accessed: 10 Oct. 2021. https://doi.org/ 10.3386/w28257. Atalay, E., Phongthiengtham, P., Sotelo, S., & Tannenbaum, D. (2020). The evolution of work in the United States. American Economic Journal: Applied Economics, 12(2), 1–34. https://doi.org/10.1257/ app.20190070 Autor, D. H., Levy, F., & Murnane, R. J. (2003). The skill content of recent technological change: An empirical exploration. The Quarterly Journal of Economics, 118(4), 1279–1333. https://doi.org/10. 1162/003355303322552801 Bowen, A., Kuralbayeva, K., & Tipoe, E. L. (2018). Characterising green employment: The impacts of ‘greening’ on workforce composition. Energy Economics, 72, 263–275. https://doi.org/10. 1016/j.eneco.2018.03.015 Consoli, D., Marin, G., Marzucchi, A., & Vona, F. (2016). Do green jobs differ from non-green jobs in terms of skills and human capital? Research Policy, 45(5), 1046–1060. https://doi.org/10.1016/j. respol.2016.02.007 Dechenes, O. (2013). Green jobs. IZA Policy Paper No. 62. Institute for the Study of Labor (IZA), Bonn. http://hdl.handle.net/10419/91793. Data accessed: 10 Oct. 2021. Dempsey, N., Bramley, G., Power, S., & Brown, C. (2011). The social dimension of sustainable development: Defining urban social sustainability. Sustainable Development, 19(5), 289–300. https:// doi.org/10.1002/sd.417 Hershbein, B., & Kahn, L. B. (2018). Do recessions accelerate routine-biased technological change? Evidence from vacancy postings. American Economic Review, 108(7), 1737–1772. https:// doi.org/10.1257/aer.20161570 Kouri, R., & Clarke, A. (2014). Framing “green jobs” discourse: Analysis of popular usage. Sustainable Development, 22(4), 217– 230. https://doi.org/10.1002/sd.1526 Lishchuk, E. N., & Kapelyuk, S. D. (2020). Trends and prospects of labor market for accountants in the light of digital transformation.

E. N. Lishchuk et al. ECO Journal, 10, 127–146. https://doi.org/10.30680/ECO01317652-2020-10-127-146 Lishchuk, E. N., & Kapelyuk, S. D. (2021). Transforming human capital requirements in the context of a pandemic. Russian Journal of Labor Economics, 8(2), 219–232. https://doi.org/10.18334/et.8.2. 111644 Modestino, A. S., Shoag, D., & Ballance, J. (2016). Downskilling: Changes in employer skill requirements over the business cycle. Labour Economics, 41, 333–347. https://doi.org/10.1016/j.labeco. 2016.05.010 Modestino, A. S., Shoag, D., & Ballance, J. (2020). Upskilling: Do employers demand greater skill when workers are plentiful? The Review of Economics and Statistics, 102(4), 793–805. https://doi. org/10.1162/rest_a_00835 Morriss, A. P., Bogart, W. T., Dorchak, A., & Meiners, R. E. (2009). Green jobs myths. Missouri Environmental Law and Policy Review, 16, 326–473. Pissarides, C. (2015). Socially sustainable economic growth. Economics, 2, 34–46. Vestnik of the St. Petersburg University, Series 5. Pissarides, C. (2018). Green job creation. In C. Pissarides, O. Marganiya, & S. Belozyorov (Eds.), Employment and economic growth (pp. 13–26). St. Petersburg University Press. Polasky, S., Kling, C. L., Levin, S. A., Carpenter, S. R., Daily, G. C., Ehrlich, P. R., Heal, G. M., & Lubchenco, J. (2019). Role of economics in analyzing the environment and sustainable development. Proceedings of the National Academy of Sciences, 116(12), 5233–5238. https://doi.org/10.1073/pnas.1901616116 Squicciarini, M., & Nachtigall, H. (2021). Demand for AI skills in jobs: Evidence from online job postings. OECD Science, Technology and Industry Working Paper No. 2021/03. OECD Publishing, Paris. https://www.oecd.org/digital/demand-for-ai-skills-in-jobs3ed32d94-en.htm. Data accessed: 10 Oct. 2021. https://doi.org/10. 1787/3ed32d94-en. Tan, L.M., & Laswad, F. (2018). Professional skills required of accountants: What do job advertisements tell us? Accounting Education, 27(4), 403–432. https://doi.org/10.1080/09639284. 2018.1490189. Turrell, A., Thurgood, J., Copple, D., Djumalieva, J., & Speigner, B. (2018). Using online job vacancies to understand the UK labour market from the bottom-up. Bank of England Staff Working Paper No. 742. Bank of England, London. https://www.bankofengland.co.uk/ working-paper/2018/using-online-job-vacancies-to-understand-theuk-labour-market-from-the-bottom-up. Data accessed: 10 Oct. 2021. Vona, F., Marin, G., Consoli, D., & Popp, D. (2018). Environmental regulation and green skills: An empirical exploration. Journal of the Association of Environmental and Resource Economists, 5(4), 713– 753. https://doi.org/10.1086/698859

Problems and Implementation Prospects of Experimental Legal Regimes in Russia Lyudmila A. Abramova , Svetlana B. Vereshchak , and Alexander V. Vereshchak

Abstract

1

“On Experimental Legal Regimes in the Sphere of Digital Innovations in the Russian Federation” fixed “sandboxes”, a legal mechanism for experimental testing of products and services created using digital technologies, which allows temporary deviation from some general mandatory requirements. The paper is aimed at identification and revealing the directions for improving the legislative basis for the implementation of experimental legal regimes in Russia. Methodological tools include formal-legal, structural–functional and other methods of improving the system of experimental legal regimes. The authors conclude about the need for “experimental legal regime”, convergence of lawmaking and law enforcement in the area under consideration, the development of mechanisms for assessing the effectiveness of experiments, legal liability, as well as supranational regulatory “sandboxes” and their legal framework. Keywords

.

.

.

.

Experimental legal regime Regulatory regulation Digital environment Digital economy Regulatory sandboxes Digital legislation

.

JEL Classification

K10

. . . K15

K23

M15

. . O21

O38

L. A. Abramova (&) . S. B. Vereshchak Chuvash State University Named After Ulyanov I.N., Cheboksary, Russia e-mail: [email protected] A. V. Vereshchak Chuvash State Agricultural University, Cheboksary, Russia

Introduction

There is the draft law on its various aspects (legal terminology, the framework of its individual provisions, the detail of legal regulation, the consequences of its adoption, implementation, responsibility, etc.) (Proposals to the draft law “On experimental legal regimes in the field of digital innovations in the Russian Federation”, 2019). The Law on ELR provides a legal mechanism for testing information technologies, the legal regulation of which is not currently fully implemented or the current legal norms lag behind the level of development of socio-economic conditions, in real legal relations in the areas defined by it. The experience of implementing regulatory “sandboxes” abroad, in particular the experience of the UK, Singapore, China, Australia, Bahrain, etc., was considered when drafting the law (Regulatory sandbox lessons learned report: Financial Conduct Authority (FCA), 2017). The law has little experience of implementation since January 28, 2021, but already defines the directions for further development of legislation in this area.

2

Methodology

The issues of the functioning of the ELR, including Russian and foreign experience are reflected in scientific articles, dissertations, and other publicistic materials by Ringe et al. (2020), Klaus (2016), Gavrilchenko and Khvatik (2020), Zhdanovich (2021), Zavyalova et al. (2019), Kvanina (2017), Kuklina (2019), Naumov et al. (2020), Noskova and Lupashko (2020), etc. At the stage of development and adoption of the draft law on ELR, the most heated discussions were held on the following issues: legal concepts and categories, areas of implementation of ELR (regulatory “sandboxes”) in Russia, issues of related legal regulation, neutralization of corruption factors in legal norms and other aspects.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_13

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The ELR Law’s entry into force maintains scientific interest in this area of research and necessitates further research. Methodological tools are selected considering the specific goals of the work. The dialectical-materialistic method of cognition allows us to consider the formation and implementation of experimental legal regimes, interaction with related phenomena of the economic and digital environment.

3

Results

The ELR Law created a legal mechanism for testing products and services created using digital technologies (neurotechnology, artificial intelligence technology, big data, robotics, sensors, smart manufacturing, distributed registry system technology, wireless communication technology, etc.). Such a regime is aimed at assessing the possibility and expediency of its extension to the territory of Russia and its implementation in the legislation. The concepts of “experimental legal regime” and regulatory “sandbox” are identified. It is noted (Proposals to the draft law “On experimental legal regimes in the field of digital innovations in the Russian Federation”, 2019) that such a confusion of concepts is incorrect. In the theory of law (S. S. Alekseev), “the legal regime is a regulation procedure, expressed in a complex of legal means that characterize a special combination of interacting permissions, prohibitions, as well as positive obligations and creating a special direction of regulation” (Alekseev, 1989). Belyaeva (2012), Matuzov and Malko (1996) and others also represent the legal regime through a special regulation procedure, which is expressed in a certain combination of legal means and creates the desired social condition and a specific degree of favorable or unfavorable to satisfy the interests of subjects of law. In Article 2 of the Law on ELR, the very concept of the regime is revealed through the term “application”, however, “application” is a form of implementation of the legal norm, i.e. its practical action. There are obvious contradictions in approaches to understanding legal regimes. Let’s consider topical issues of implementing the law on ELR at the present stage. The norms of the Law on ELR create a legal basis for managing changes during new economic practices, reducing the risks of consumers of digital services and products. The law defines the scope of regulatory “sandboxes” (Table 1), initially the draft proposed a closed list of them, but in the current version, such a restriction was abandoned. It indicates that projects are currently being prepared for launch: an unmanned taxi, experimental hotels without personnel using artificial intelligence, the launch of medical decision support systems (telemedicine), the use of cargo

unmanned aerial vehicles. Features of the functioning of the ELR: • establishing, in relation to subjects that meet the requirements, for a certain time, territory (Table 2); • the presence of a body for control and supervision; • constant monitoring of the implementation of the ELR program; • the possibility of suspension of ELR and early termination; • deciding to change the general regulation based on the results of the ELR. Among current trends in experimental legal regulation (Kuklina, 2019): • expansion of use of the regulatory “sandbox” model, convergence of the basic principles of its use; • expansion of regulatory “sandboxes” by industry; • introduction of this regulatory regime initially in the financial sector and intensification of movement in a multi-industry direction: “fintech sandboxes” and universal “sandboxes”; • convergence of regulatory mechanisms in those sectors of the economy that have undergone convergence. An analysis of the norms and practice of using regulatory “sandboxes” highlighted: fragmentation, shortcomings in the separation of lawmaking and law enforcement, lack of relationship with strategic planning, lack of clear criteria for assessing the effectiveness of the experimental legal regime in the legislation. Let’s consider the directions for improving the Law on ELR. The Law on ELR establishes a general mechanism for the establishment. “Regulatory sandboxes” are not a tool for the development of innovative activity, the applicant’s need for special regulation should be objective, and therefore, enhanced control of the admission of participants is necessary. An important task is to ensure transparency of law enforcement, the opportunity for participants in this area of legal relations to receive reliable information in full. One of the areas that requires the attention of the legislator is the issue of legal liability. When considering disputable situations related to the implementation of the ELR, issues related to bringing subjects to civil, administrative or criminal liability will inevitably arise. However, these issues are not regulated by law. The development of ELR does not give a systematic answer on the evaluation of their effectiveness and efficiency, it is necessary to provide a clear list of criteria and principles for evaluation and the procedure for its implementation.

Problems and Implementation Prospects of Experimental Legal Regimes in Russia

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Table 1 Scope of regulatory sandboxes under the ELR law Telemedicine Industrial production

Directions for the development, testing, implementation of digital innovations

Agriculture Design, construction of capital construction projects

Production of highly automated vehicles

Financial market

Remote sale of goods, works, services

Implementation of powers, functions by state bodies and local self-government bodies

Other directions Source Authors

Table 2 ELR establishment procedure Start Applicant

Federal executive authority in the field of ELR

Coordinating body

Monitoring

Completion

Applicant

Government of the Russian Federation

Federal executive authority in the field of ELR

Business community organization

Business community organization

Industry regulator

Coordinating body under the Government of the Russian Federation

Regions

Government of the Russian Federation

Other federal executive authorities Application

Conducting ELR from 1 to 3 years

Prescreening

Evaluation of applications, exchange of feedback

Removal of disagreements, approval of the ELR program

Change in general regulation

Deciding to terminate

The application may be rejected or sent for revision

The application can be rejected or sent for revision by consensus

The application may be rejected or sent for revision

The applicant submits a report on the results of activities

Evaluation of the application/conclusion is carried out within 15 days

Preparation of an opinion on the application within 25 working days by the Industry Regulator or the Region

Removal of disagreements on the application within 30 working days

Preparing a consolidated analytical report and making a decision to submit a proposal to the Government to change the general regulation

The procedure for termination of the ELR and the time of the transition period are established by the Government of the Russian Federation

Approval of the proposal to change the regulation No more than 3 months Source Authors

No more than 2 months

No more than 1 month

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The problem of ensuring equal access to regulatory “sandboxes” for representatives of large businesses and start-ups, focusing on the beneficial effect of a particular “sandbox” is acute not only for business, but also for the social sphere. Further development of the legal regulation of ELR should be carried out through international integration with similar regimes within the EAEU, other interstate associations, the formation of uniform approaches to the use of regulatory “sandboxes”.

4

Conclusion

The digital strategy for the development of Russia has updated the task of forming a legal framework for the implementation of digitalization projects. The mechanism laid down in the Law on ELR is not without flaws, but in general, it makes it possible to adjust legal regulation to new technologies and changing socio-economic conditions, to implement the idea of “breakthrough regulation”. Directions for improvement of legal regulation and implementation practice include increased requirements for the quality of development of regulatory legal acts, filling gaps, clarifying legal concepts in the Law on ELR, convergence of lawmaking and law enforcement in this area, development of mechanisms for assessing the effectiveness of experiments, legal liability, as well as supranational regulatory “sandboxes” and their legal framework.

References Alekseev, S. S. (1989). General permissions and general prohibitions in Soviet law (p. 288). Legal Literature. Belyaeva, G. S. (2012). The concept of legal regime in the theory of law: Basic approaches. Bulletin of the Saratov State Law Academy, Additional (p. 26–31). https://cyberleninka.ru/article/n/ponyatiepravovogo-rezhima-v-teorii-prava-osnovnye-podhody. Data accessed: Oct. 17, 2021.

Gavrilchenko, Y., & Khvatik, Y. (2020). Experimental legal regimes— Economic and legal view. Bank Bulletin, 12(689), 3–8. Klaus, S. (2016). The fourth industrial revolution (p. 172). World Economic Forum. https://law.unimelb.edu.au/__data/assets/pdf_file/ 0005/3385454/Schwab-The_Fourth_Industrial_Revolution_Klaus_ S.pdf. Data accessed: Oct. 17, 2021. Kuklina, E. A. (2019). On the issue of special legal regimes in the digital economy (“regulatory sandboxes”). Management Consulting, 7, 39–49. https://doi.org/10.22394/1726-1139-2019-7-39-49 Kvanina, V. V. (2017). The concept and types of legal regimes of entrepreneurial activity. Bulletin of Tomsk State University, 424, 234–240. Matuzov, N. I., & Malko, A. V. (1996). Legal regimes: Questions of theory and practice. Jurisprudence, 1, 16–29. Naumov, V. B., Butrimovich, Y. V., & Kotov, A. A.: Quality assurance of legal regulation of experimental legal regimes. Russian Law: Education, Practice, Science, (3), 40–49. Noskova, Y. B., & Lupashko, N. M. (2020). Experimental legal regimes in the field of digital innovation as a way to integrate the national economy of the Russian Federation into the global economic space. European and Asian Law Review, 1, 43–50. https://doi.org/10.34076/2619-0672-2020-4-1-43-50 Proposals to the draft law “On experimental legal regimes in the field of digital innovations in the Russian Federation”. (January, 2019). Expert Council on the Digital Economy and Blockchain Technologies under the Committee of the State Duma of the Russian Federation on Economic Policy, Industry, Innovative Development and Entrepreneurship. Regulatory sandbox lessons learned report: Financial Conduct Authority (FCA). (2017). Official website of the UK Financial Conduct Authority. https://www.fca.org.uk/publication/research-and-data/ regulatory-sandbox-lessons-learned-report.pdf. Data accessed: Oct. 17, 2021. Wolf-Georg, R., & Christopher, R. (2020). Regulating Fintech in the EU: The case for a guided sandbox. European Journal of Risk Regulation, 11(3), 604–629. https://doi.org/10.1017/err.2020.8, https://www.researchgate.net/publication/339628586_Regulating_ Fintech_in_the_EU_the_Case_for_a_Guided_Sandbox. Data accessed: 17 Oct. 2021. Zavyalova, E. B., Krykanov, D. D., & Patrunina, K. A. (2019). Mechanism of regulatory “sandboxes” for the introduction of digital innovations: Experience in the implementation of experimental legal regimes at the national and supranational levels. Law and Management, 4(53), 15, 130–138. XXI century. Zhdanovich, V. V. (2021). Transformation of banking regulation in the context of the development of digital technologies [Dissertation ... of PhD in Economics, Moscow, p. 208].

Globalization as a Factor of Influence on Russian Federation’s Foreign Economic Activity: Engineering Exports Maxim O. Kirichek , Oksana A. Moskalenko , and Svetlana V. Zybenko

Abstract

1

This article examines the impact of globalization on the foreign trade activity of the Russian Federation at present. For this, the substantive study of the concept of “globalization” is carried out; international acts affecting the trade of countries are considered. The level of global poverty is assessed in the course of the development of globalization processes. The article examines customs statistics, the structure of Russian exports, general export figures and export volumes of raw materials, as well as the machine-building complex. It’s proposed to introduce the idea of liberalizing the Russian market to attract foreign participants in order to develop their technologies through international cooperation and technology exchange. Keywords

. . . . . . . .. . .

. . .

Export Mechanical engineering Globalization Foreign trade Federal customs service Customs statistics Innovation Barriers Intellectual property Service market Investment funds Agreement International cooperation Capital Liberalization JEL Classification

A10 O33

.. . . . . . . . F13 O40

F15

F16

K22

K23

N0

O31

M. O. Kirichek (&) . O. A. Moskalenko Leonov Moscow Region University of Technology, Korolev, Russia e-mail: [email protected] O. A. Moskalenko e-mail: [email protected] S. V. Zybenko Plekhanov Russian University of Economics, Moscow, Russia e-mail: [email protected]

Introduction

Globalization is one of the most important processes, which takes place in the world, influences politics, economy, and society. From the point of view of this process, national barriers are being removed, the world is becoming more and more integrated in terms of the movement of capital, the movement of goods and services, intellectual property, labour, which entails significant changes in the economy. Globalization is becoming a source of benefit and development for many states. Thus, the authors observe that in modern realities, China enters the world stage as a supplier of inexpensive labour and analogue of goods, due to this, the Chinese economy is one of the strongest in the world. At the same time, some states enter the market as service providers. Small states such as Luxembourg have a very high standard of living due to the developed banking sector. Luxembourg is home to a large number of European Union organizations, investment funds and banks. The events that took place after the Second World War can be considered the starting point of modern globalization. In 1947, the plan was put forward for the restoration of Europe, called the Marshall Plan, which implied the restoration of the economies of European states. The countries agreed to create a new world in which they wouldn’t fight, but trade with each other, which determined their further interdependence. These agreements led to the creation of the European Union—one of the most effective integration trade associations in the world. The development of world foreign trade is influenced by many factors, which, in turn, affect trade relations between countries (Moskalenko et al., 2021). Today, there is an unprecedented volume of exchange of goods and services between states. Trade barriers are being reduced, and decisions are being made to unify legislation. A large number of different conventions in the area of foreign trade contribute to the rapid movement of goods

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_14

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66

M. O. Kirichek et al.

between different states without the use of unnecessary formalities and customs control, which slows down these processes. International cooperation is the key to the development of the economy of any state. In today’s world, it’s difficult to be an economically successful country and implement a policy of isolation at the same time. Anyway, the enterprise that has access to foreign markets has greater demand, greater competition, and greater profits.

Data (Our World in Data: World population living in extreme poverty, World, 1820–2015, Oxford University). Based on the studied data, conclusions were drawn and solutions were proposed for the development of the export potential of Russian engineering. Theoretical and applied questions on the problem studied in this article are disclosed in the work of Mikk (2019).

3 2

Materials and Methods

The study actively used statistical data provided by the customs authorities of the Russian Federation (Federal Customs Service of the Russian Federation: statistical data; Export and import of the Russian Federation by goods; Commodity structure of export. https://customs.gov.ru/ statistic/. Accessed: Oct. 15, 2021; Federal Customs Service of the Russian Federation: Statistical data; Export and import of the Russian Federation by goods; Commodity structure of export. https://customs.gov.ru/statistic/. Accessed: Aug. 18, 2021), as well as statistical data on the Russian Federation’s GDP from the World Bank (World Bank, GDP (in current US dollars) 2014–2020, World Bank national accounts data). The legal documents in the area of foreign trade [Customs Code of the Eurasian Economic Union (as amended on May 29, 2019) (Application No. 1 to the Treaty on the Customs Code of the Eurasian Economic Union); Decree of the Government of the Russian Federation No. 778 of August 7, 2014 (as amended on September 30, 2021) “On measures to implement the decrees of the President of the Russian Federation of August 6, 2014 No. 560, of June 24, 2015 No. 320, of June 29, 2016 No. 305, June 30, 2017 No. 293, July 12, 2018 No. 420, June 24, 2019 No. 293, November 21, 2020 No. 730 and September 20, 2021 No. 534”; Decree of the Government of the Russian Federation No. 1878-r of August 31, 2017 “On approval of the Strategy for the development of exports of railway engineering products” (together with the “Action Plan for the implementation of the Strategy for the development of exports of railway engineering products”); Federal Law No. 289-FZ of August 3, 2018 “On Customs Regulation in the Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation”] were studied, among which national and international acts stand out. In the theoretical part of the work, data were used from articles by Russian researchers (Volchkova & Kuznetsova, 2019), articles by the authors of this work (Kirichek, 2021; Moskalenko & Zybenko, 2020; Moskalenko et al., 2021; Vershinin & Kirichek, 2021), monograph edited by a World Bank employee on market liberalization (Tarra, 2012), and data from the international statistical portal Our World in

Results

In general, the majority benefits from globalization. This is evidenced by the data obtained in the study of the level of poverty by the scientific portal of the University of Oxford “Our World in Data”. Citizens living on less than 1.90 dollars a day are considered to be below the poverty line. Based on the data, the ratio of people belonging to the category of “extreme poverty” (below the poverty line) to the total population of the planet has been falling over time, and by the 2000s has begun to decline (Our World in Data: World population living in extreme poverty, World, 1820– 2015, Oxford University). With the help of globalization, the development of international relations and the division of production, the world has a cheaper labour force, the ability of companies to enter foreign markets to increase profits or access to any raw materials necessary to provide and use a wide range of services. One of the most important, among the modern achievements of globalization in the development of the economies of states, is the possibility of exchanging experience. International cooperation makes it possible to adopt technologies from the advanced sectors of the world’s economy in order to improve them. There are big counts of studies, which claim that the removal of trade, tariff and non-tariff barriers against foreign suppliers contributes to the development of the processing and agricultural industries, as well as the service sector. The main idea of such studies is the fact that foreign supplier, by importing goods to the national markets of various states, brings technologies and experience to them, which are gradually being introduced into local production processes. Moreover, market liberalization allows new national companies to carry out their activities more efficiently due to access to Foreign Service Market, where it’s easy to satisfy specific needs (Tarra, 2012). Intellectual property and innovations are more expensive than any commodity, as they are a tool to increase the profits of the state, the competitiveness of companies and the quality of life of people. According to World Bank expert Tarr, services currently account for about 70% of global GDP (Tarra, 2012). In this regard, great changes have taken place in the Russian customs legislation over the past few decades. To protect intellectual property, relevant articles

Globalization as a Factor of Influence on Russian Federation’s Foreign Economic Activity …

were introduced in the Customs Code of the Eurasian Economic Union (hereinafter referred to as the Customs Code of the Eurasian Economic Union) dated January 1, 2018, Chapter 52 (Customs Code of the Eurasian Economic Union (as amended on May 29, 2019) (Application No. 1 to the Treaty on the Customs Code of the Eurasian Economic Union)) and in the Federal Law No. 289-FZ of August 3, 2018 “On Customs Regulation and Amendments to Certain Legislative Acts of the Russian Federation”, chapter 57 (Federal Law No. 289-FZ of August 3, 2018 “On Customs Regulation in the Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation”), customs register of intellectual property was formed, which is maintained and supplemented by the Eurasian Economic Commission. Russian exports are quite large in terms of international trade. Export figures are based on the export of goods from the country’s fuel and energy complex. Over the years, the export structure of the Russian Federation has changed only in small ways but fundamentally remains unchanged. Goods characterized following the Commodity Nomenclature of Foreign Economic Activity as “mineral products” are still traditional for export. The data for 2021, cited by the Federal Customs Service (hereinafter referred to as the FCS of Russia), confirms the continued trend towards the export of raw materials with a low level of processing, while the science-intensive industry, such as mechanical engineering, and its export volumes remain low, amounting to 6.3% (18.8 billion USD) of the total foreign trade turnover of the Russian Federation. According to the Federal Customs Service of Russia, the export of mechanical engineering for 2020 amounted to 25.053 billion US dollars, which is 10% lower than in 2019. As a percentage of other industries, mechanical engineering provides 7.4% of the external turnover of goods. Thus, at this point, a drop in the level of exports of engineering, compared with 2020, by 1.1% can be seen (Federal Customs Service of the Russian Federation: statistical data; Export and import of the Russian Federation by goods; Commodity structure of export; Federal Customs Service of the Russian Federation: statistical data; Export and import of the Russian Federation by goods; Commodity structure of export). Based on the data of customs statistics provided by the Federal Customs Service of Russia, exports can be characterized as homogeneous. Export structure—oil and gas, raw materials. The added value of the final product, formed during the processing of goods, will always be higher than the same volume of unprocessed energy raw materials. The added value is formed with the complete processing of goods in production (Decree of the Government of the Russian Federation No. 1878-r of August 31, 2017 “On approval of the Strategy for the development of exports of

67

railway engineering products” (together with the “Action Plan for the implementation of the Strategy for the development of exports of railway engineering products”)). By exporting raw materials, the state misses the benefits, which are could be derived from the sale of goods with a high level of processing. A high level of processing is achieved with the help of innovative developments in the area of machine tool building, improvement of technologies and production tools. Mechanical engineering, developing rapidly in the context of globalization, can largely contribute to the development of the processing industry in Russia, which will make it possible to extract large profits from oil and gas exports. Moreover, mechanical engineering can replace or supplement exports with high-tech types of goods. Comparing the pace of development of Russian engineering with the leading economies of the world, the authors noted that economically developed countries show a share of 35–50% of engineering in the total production complex of the country, while in Russia it has only a share of 12%. Despite this, mechanical engineering is one of the largest industries in the Russian Federation in relation to other industries (Mironov & Zagorodnikov, 2010). When countries have access to the same technology, their economic growth rates will even out over time. Therefore, innovations in production are so important for the development of the economy. But, despite the need for scientific research as the main factor in the development of the competitiveness of the machine-building industry, the base of Russian machine-building at the moment doesn’t meet the requirements of the economic and social nature of the country, which are increasing every year (Kirichek, 2021). The economic development of the Russian Federation and its systematic entry into the system of world economic relations (Moskalenko & Zybenko, 2020) suggests that the modern technological structure of the country isn’t being formed at a fast pace. This gives rise to problems in the domestic engineering industry: the use of old (Soviet) equipment, without innovation, gives a low quality of products in modern realities; low competitiveness due to the low quality of manufactured products in foreign markets and, as a result, low sales volumes and low financial turnover make enterprises unprofitable. All of these factors make it impossible to upgrade equipment. The result is a lack of opportunities not only for innovation but also for maintaining production growth rates at a sufficiently high level. At the moment, domestic mechanical engineering is competitive only in narrow market segments (for example, jet engines, car building). So, the fact that globalization provides opportunities for international cooperation, it’s also worth mentioning that not all countries are ready to pursue a policy of free trading, integration and openness. Russia, in light of the difficult

68

political situation in the world, in connection with sanctions and retaliatory measures, is experiencing a policy of isolation rather than international cooperation. In the modern world economy, sanctions have become one of the most important instruments of international politics. Sanctions are introduced in order to achieve economic, political, and foreign trade goals (Zybenko, 2019). The observed effect of the policy of establishing trade barriers for products from some foreign countries demonstrates that the restriction of imports in Russia leads to monetary losses for the consumer, and not for the suppliers of goods. In particular, Government Decree No. 778 of August 7, 2014 (Decree of the Government of the Russian Federation No. 778 of August 7, 2014 (as amended on September 30, 2021) “On measures to implement the decrees of the President of the Russian Federation of August 6, 2014 No. 560, of June 24, 2015 No. 320, of June 29, 2016 No. 305, June 30, 2017 No. 293, July 12, 2018 No. 420, June 24, 2019 No. 293, November 21, 2020 No. 730 and September 20, 2021 No. 534”), introduced a ban on the import of agricultural products into the Russian Federation, which is made in the USA, the countries of the European Union, Ukraine, etc. This led to total losses for the Russian consumer in the 2018 year in the amount of 445 billion rubles, which is approximately 3 thousand rubles per person. Participation in the global economy is the main driving force for Russian Federation’s economic development. Technologically intensive goods are always produced with the participation of several countries. For example, components for the global brand of Apple technology are manufactured in China (cables, glasses, batteries, etc.), Europe (antenna modules, charging components), Singapore (chips, mechanical parts), Japan (sensor, display panels), Saudi Arabia, and the USA (motherboard, processor, etc.) (Volchkova & Kuznetsova, 2019). Thus, a large number of countries is involved in the production of one brand. Similarly, the production of other goods from the engineering sector is carried out, because there is always a factor in the production of parts and components, from which cars, aircraft, machine tools, computers are assembled. The important factors of their production are the availability of the necessary capacities and the cost of labour. Due to this, even though the United States is one of the leading economies in the world and many world-famous companies are located on its territory, the production of brands is scattered all over the world. Therefore, no highly processed product is produced by only one single country for a given period. Goods are made all over the world and by the whole world. This is an absolutely natural and logical process, and it’s one of the achievements of globalization.

M. O. Kirichek et al.

Considering the development of the Russian economy in the context of globalization, it should be noted that 2014, which marked the beginning of sanctions, the growth of the dollar and euro against the ruble, according to expert economists, is the beginning of its stagnation regime. This fact is also confirmed by the statistics of the World Bank (World Bank, GDP (in current US dollars) 2014–2020, World Bank national accounts data). Based on the data, it can be seen that there has been a slight increase in GDP since 2016 (by 2% per year), but in recent years, GDP has declined. In physical terms, Russian Federation’s GDP has decreased compared to 2020 from 2.059 trillion USD to 1.489 trillion USD since 2014. It should be also noted, that in the crisis years of 2008–2010, GDP was approximately at the same level as in 2020: 1.661 trillion in 2008, 1.223 trillion in 2009, and 1.525 trillion in 2010. As for mechanical engineering, the introduction of sanctions didn’t have a big impact on this industry. Foreign trade turnover for non-CIS countries and CIS countries remained approximately at the same level (Fig. 1), which is 6–7% of the Russian Federation’s total foreign trade turnover (Federal Customs Service of the Russian Federation: statistical data; Export and import of the Russian Federation by goods; Commodity structure of export). Maintaining the level of exports at the same positions reflects the fact that the Russian Federation doesn’t supply goods from the engineering industry to the countries under sanctions. The following sales markets for Russian mechanical engineering are distinguished in the following areas: • Power and railway engineering: Poland, Iran, China, Bulgaria, India. • Forestry engineering: Vietnam and Indonesia. • Automotive industry: Belarus, Kazakhstan, Uzbekistan, Latin American countries (Vershinin & Kirichek, 2021). The dynamics of profits by industry shows that the most profitable are the exports of vehicles and their components, but, in general, the world competitiveness of national engineering products in foreign markets is assessed as “low”. Mechanical engineering is a science-intensive industry. The importance of innovation and scientific, as well as technological progress in mechanical engineering, can’t be underestimated. Machine-building companies in the world market maintain their competitiveness through continuous improvement of their product, using new technologies and developments. Mechanical engineering is called upon to provide all other areas of production with technical equipment, which,

Globalization as a Factor of Influence on Russian Federation’s Foreign Economic Activity …

69

Fig. 1 Export of engineering goods from Russia 2014–2020. Source Compiled by the authors

in turn, determines the overall economic potential of the state. The innovative potential of an enterprise is determined by the totality of its material, financial, intellectual, scientific, and technical resources. But, talking about Russian engineering enterprises, they, for the most part, operate at outdated facilities dating back to the Soviet period. A comprehensive update is needed. In order for the industry to start producing high-quality competitive products, it needs to develop advanced technologies for the modernization of production (Mironov & Zagorodnikov, 2010). The most important element of innovation is the technical re-equipment of worn-out old machines with similar more modern, but new and more productive ones. As it was noted earlier, market liberalization will allow attracting more investment and more participants in foreign economic activity, including foreign companies from the area of mechanical engineering. The theory of market liberalization tells that people create the ground for adopting technologies for the development of their production by letting foreign companies into the market, which occupy a segment of the product on the market that isn’t occupied and/or not sufficiently developed by the national manufacturer.

4

new technologies and the introduction of innovations in production. Data Availability 1. Data on the dynamics of poverty reduction in the context of globalization for the period from 1820 to 2015, which confirm the conclusions of the study, are available at: https://ourworldindata.org/ with the identifier: https:// ourworldindata.org/grapher/world-population-inextreme-poverty-absolute?country=*OWID_WRL. 2. Data on the commodity structure of Russian exports for the first 8 months of 2021, which confirm the conclusions of the study, are available at: https://figshare.com/ with the identifier: https://doi.org/10.6084/m9.figshare. 18538574.v1. 3. Data on the growth and decline of Russian GDP in the period 2010–2020, which confirm the findings of the study, are available at: https://data.worldbank.org/ with the identifier: https://data.worldbank.org/indicator/NY. GDP.MKTP.CD?end=2020&locale=ru&locations= RU&start=2010.

Conclusion References

Mechanical engineering in Russia is one of the largest industries, accounting for 12% of all Russian production, according to the All-Russian Classification of Economic Activities. For the current period, there is a good potential for the development of mechanical engineering, due to its resistance to sanctions and foreign trade barriers. But complex problems within the engineering industry hinder its development and entry into foreign markets. Their solution can be, among other things, carried out with the help of international cooperation, which could contribute to the development of

Customs Code of the Eurasian Economic Union (as amended on May 29, 2019) (Application No. 1 to the Treaty on the Customs Code of the Eurasian Economic Union). http://www.consultant.ru/ document/cons_doc_LAW_215315/. Accessed: Oct. 15, 2021. Decree of the Government of the Russian Federation No. 778 of August 7, 2014 (as amended on September 30, 2021) “On measures to implement the decrees of the President of the Russian Federation of August 6, 2014 No. 560, of June 24, 2015 No. 320, of June 29, 2016 No. 305, June 30, 2017 No. 293, July 12, 2018 No. 420, June 24, 2019 No. 293, November 21, 2020 No. 730 and September 20, 2021 No. 534”. http://www.consultant.ru/document/cons_doc_ LAW_167001/. Accessed: Oct. 15, 2021.

70 Decree of the Government of the Russian Federation No. 1878-r of August 31, 2017 “On approval of the Strategy for the development of exports of railway engineering products” (together with the “Action Plan for the implementation of the Strategy for the development of exports of railway engineering products”). http:// www.consultant.ru/document/cons_doc_LAW_256229/. Accessed: Oct. 15, 2021. Federal Law No. 289-FZ of August 3, 2018 “On Customs Regulation in the Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation”. http://www.consultant.ru/document/ cons_doc_LAW_304093/. Accessed: Oct. 16, 2021. Federal Customs Service of the Russian Federation: Statistical data; Export and import of the Russian Federation by goods; Commodity structure of export. https://customs.gov.ru/statistic/. Accessed: Oct. 15, 2021. Federal Customs Service of the Russian Federation: Statistical data; Export and import of the Russian Federation by goods; Commodity structure of export. https://customs.gov.ru/statistic/. Accessed: Aug. 18, 2021. Kirichek, M. O. (2021). Potential for the development of the industry of the Moscow region. https://unitech-mo.ru/upload/files/science/ youth-science/sbornik_2021.pdf/. Accessed: Oct. 16, 2021. Mikk, S. (2019). How much does iphone really cost? https://www. iphones.ru/iNotes/deystvitelno-li-iphone-sdelan-v-kitae-razobralis01-10-2019. Accessed: Oct. 15, 2021. Mironov, M. G., & Zagorodnikov, S. V. (2010). Economics of the industry (engineering). FORUM: INFA-M, 2-5. https://znanium. com/read?id=216011. Accessed: Oct. 11, 2021. Moskalenko, O. A., Zybenko, S. V. (2020). From digital customs to intellectual. Russian Journal of Management, 8(3). https://naukaru. ru/ru/nauka/article/40774/view/. Accessed: Oct. 13, 2021.

M. O. Kirichek et al. Moskalenko, O. A., Zybenko, S. V., & Glekova, V. V. (2021). Foreign trade during the covid-19 pandemic. Russian Economic Internet Journal, 1. http://www.erej.ru/upload/iblock/8ed/8edca2f02cf903ff 6abedddd5ba65d0e.pdf/. Accessed: Oct. 13, 2021. Our World in Data: World population living in extreme poverty, World, 1820–2015, Oxford University. https://ourworldindata.org/grapher/ world-population-in-extreme-poverty-absolute/. Accessed: Oct. 10, 2021). Tarra, D. G. (Ed.). (2012). Impact of liberalization of the service sector on industry productivity, exports and development. Empirical Research in Transition Economies (p. 216). Ves’ Mir. https:// znanium.com/catalog/product/1012907/. Accessed: Oct. 15, 2021. Vershinin, A. A., & Kirichek, M. O. (2021). The current state and export activity of domestic engineering enterprises. Electronic Engineering, Microwave Engineering. Scientific and technical collection, Series 1. https://istokmw.ru/uploads/files/static/101/ UHF2021-2-1.pdf/. Accessed: Oct. 10, 2021. Volchkova, N. A., & Kuznetsova, P. O. (2019). How much do counter-sanctions cost: Welfare analysis? NEA Journal, 3(43), 173– 183. https://www.econorus.org/repec/journl/2019-43-173-183r.pdf. Accessed: Oct. 15, 2021. World Bank, GDP (in current US dollars) 2014–2020, World Bank national accounts data. https://data.worldbank.org/indicator/NY. GDP.MKTP.CD?end=2020&locale=ru&locations=RU&start=2008 &view=chart/. Accessed: Oct. 13, 2021. Zybenko, S. V. (2019). Features of the current anti-Russian sanctions. Russian Economic Internet Journal, 3. http://www.e-rej.ru/ publications/180/. Accessed: Oct. 12, 2021.

Import Substitution: The Main Directions of Import Substitution, the Pros and Cons of the Implemented State Program, Some Success Stories of Import Substitution and Its Prospects Luiza T. Yahina , Venera Z. Minnigaleeva , Konstantin L. Svechnikov , Vasilya Y. Mullina , and Liliya I. Galeeva Abstract

JEL Classification

This article discusses the main areas of import substitution in the Russian Federation, among which agriculture and number of industries can be distinguished, where the question of the need for import substitution has been raised for a long time. As part of the analysis of the implementation of the state program of import substitution in agriculture, such negative aspects as the predominance of large agricultural holdings, with the possible monopolization of the entire agricultural sector and the process of import substitution in the future. At the same time, the analysis also revealed positive changes in the form of an increase in the production of berries and fruits, chilled and frozen meat, poultry meat, fruit, and vegetable products in Russia. A brief history of “import substitution” in the Russian Federation and such a federal subject as the Republic of Tatarstan is considered. Within the framework of assessing the effectiveness of the import substitution policy based on open public data published by the Federal State Statistics Service of Russia, analysis of the level of self-sufficiency in food products is made. The advantages of unfavourable external economic situation, volatility of the national currency exchange rate, and reduction of the energy market are revealed.

Q130

Keywords

. .

Import substitution Agro-food sector Nation’s health Social stability

.

Food security

L. T. Yahina Kazan State Agrarian University, Kazan, Russia V. Z. Minnigaleeva (&) . V. Y. Mullina . L. I. Galeeva Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] K. L. Svechnikov Kazan Federal University, Kazan, Russia

.

1

Introduction

One of the components of national security is food security, and the competitiveness and efficiency of the economy are significantly affected by the nature of the sector—intersectoral. To a greater extent, the efficiency and production volumes of the agro-food sector depend on the suitability for the use of land resources and their availability in agricultural production. High dependence on imports can lead to a sharp decline in the welfare of the population in the event of strong depreciation of the national currency, and this, in turn, will lead to a drop in domestic demand and deterioration in the operating conditions of enterprises focused on selling products on the domestic market. In case of depreciation of the national currency, enterprises focused on the foreign market benefit, but a large share of Russian exports is raw materials shouldn’t be forgotten. Given the results of global warming, the energy market will also shrink in the future, which will lead Russia to decline if diversification of its production is failed. Agriculture has become one of the sectors, so, there has been an issue of the need for import substitution due to the availability of the necessary resource potential in order not only to feed the population of Russia but also to supply the surplus abroad. In 2000, the ratio of imports and exports was 4.55 times, which characterized the insufficient development of the agro-industrial complex in the country. It’s possible to ensure import substitution with artificial restrictions. These include a complete ban on the import of certain goods, protective duties. It’s also possible to ensure import substitution by stimulating the national producer. All

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_15

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of these include easier entry to the market, simplified certification, and preferential loans. At the 2020 beginning, new Food Security Doctrine of the Russian Federation came into force. It’s calculated up to 2030 and takes into account some challenges of economic development. The product line has been expanded. It measures food independence. Seeds of the main crops of domestic selection, berries, fruits, as well as vegetables are added to it. The authors also expanded the list of food security threats and potential risks. Due to agricultural lands being irrationally used, there are risks of fertility decline. Social and sanitary and epidemiological threats, phytosanitary and veterinary risks were also added. The social threat is caused by the fact, that the attractiveness of the rural lifestyle is decreasing. An important indicator of the new Doctrine is the physical availability of food. Studies show that more and more people are buying food online. It’s necessary to develop this direction. The Doctrine doesn’t indicate the consumption of macroand microelements, such as fats, proteins, carbohydrates, but rational norms for the consumption of products.

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Materials and Methods

Comparing indicators, published by Rosstat on its official website in open access, with data for 2010, deterioration in such indicators as the capacity of vegetable stores. Thus, there is deterioration in the capital provision of agriculture. It can be seen that in 2010 this figure was 1623 million US dollars. So, if these indicators over the years are compared, a significant increase in these indicators can be seen. However, comparing the ratio of food exports and imports, the authors see that this figure in 2000 was 4.55 times, and in 2018 it decreased to 1.19 times (Mustashkina & Khannanov, 2014). Milk yield for the period from 2010 to 2019 increased by 1.8 times and in agricultural organizations by 2.54 times, i.e., there is growth in this indicator, but compared to the same indicator in developed countries, Russia lags far behind. The situation is the same with crop yields. Self-sufficiency above 100% in 2018 was observed only for grain, a value close to 100% is observed for meat, milk, eggs, as well as potatoes. The lowest indicator is noted for fruits and berries, compared with 2010 there was a decrease by 16.9% points. For the period from 2010 to 2018, there was an increase in the volume of activities of peasant farms and individual entrepreneurs. Thus, the sown area increased by 2.63 times, the number of livestock—by 4.2 times, milk—by 3.42 times, eggs—by 2.3 times, and wool—by almost 8 times.

3

Results

The negative aspects of import substitution are: 1. Increasing competitiveness of domestic agricultural sector and contributing to domestic producers in ensuring food security is hindered by remaining barriers. There are the following reasons for it: part of the domestic agricultural products is uncompetitive; the development of farms is hindered by an abnormal structure dominated by large agricultural holdings; slow adoption of new technologies. 2. Import substitution had an ambiguous impact on the agri-food sector. Food import dependence has decreased. Import amounted to 82% in 2019 to 2010. There were also some negative side effects: • The food well-being from the economic point of view have decreased; • Decreased competitiveness. In Russia, over the past seven years, there hasn’t been a complete import substitution, which allows stating the statistical data. The limited implementation of the state policy adopted in 2014 is due to a number of the next factors: • The lack of sufficient livestock for the production of meat products; • There are no climatic conditions, which allow replacing imports of fruits and vegetables with products of own production; • Insufficiently developed capacities and technologies. For 2014–2019, the next types of production increased: • • • • •

Production Production Production Production Production products.

of berries and fruits by 21%; of chilled meat by 24% and frozen by 48%; of steam room pork—by 73%; of frozen pork by more than 1.8 times; of poultry meat by 17% and other food

The process of import substitution entered an active phase in modern Russia in the second half of 2014 with the incident of the imposition of sanctions. This event was associated with the holding of a referendum and the entry of the Crimean peninsula (Crimea) into the Russian Federation on March 18, 2014, as well as the fact that Russia had its political views that were different from foreign and domestic policy of Ukraine, which was the last straw for Russian Federation’s opponents.

Import Substitution: The Main Directions of Import Substitution …

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Import substitution is the replacement of goods/services coming from other regions/states in order to sell them on the Russian market for goods of own production, produced within regions. Decree (September 2, 2021) “On the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets for 2013–2020” has been accepted. On April 15, 2014, another important document No. 328 was adopted (as amended on March 31, 2021), which approved “Development of industry and increasing its competitiveness”. The state plans to allocate budget appropriations to this program until 2030, and the authorities have also adopted some other resolutions and laws on the issue of import substitution. Expected results of the Program implementation: Each region of the country performs its functions in the process of import substitution. But everyone has the same goal. This is the mobilization of production capacities in each region. The Republic of Tatarstan strictly follows this path, fulfilling its obligations to the federal authorities. Special Economic Zone (SEZ) “Alabuga” has been operating since November 20, 2007. This is the largest industrial production site in Russia. In 2016 “Alabuga”, manufacturer of power tools and small-scale mechanization, INTERSKOL, became a nominee for the Priority 2016 national award in the Priority-Equipment nomination. In particular, the professional small angle grinder AG-125/900 became an absolute bestseller in the Russian market in the first 9 months of 2016. The plant is a modern, high-tech, and deeply automated industrial enterprise throughout Eastern Europe and produces up to 40% of import substitution for the most popular product items (The resident of the free economic zone “Alabuga” became the nominee for the prestigious award for import substitution, 2016). Thus, resident (representative) of (SEZ) “Alabuga”, NPA “Akonit Alabuga”, in 2021 received approval for a loan of 300 million rubles for the creation of import-substituting production of metal structures. With the help of a loan from the Industrial Development Fund (IDF), the company will launch mass production of metal structures for belt conveyors with a capacity of 4.8 thousand tons of products per year. The loan proceeds will be used to purchase technological equipment. Within the framework of the project, roller supports, racks, sections and girders, shelters, as well as mesh fences for completing automated conveyors will be produced. Such equipment is most widely used in machine-building, coal, chemical and metallurgical industries, as well as in the organization of storage facilities. At the moment, the company cooperates with enterprises of the coal, energy, metallurgical, chemical industries from more than 65 regions of Russia, and also have 4 plants. The main consumers of the company are PJSC “Severstal”, PJSC

“Uralkali”, PJSC (MMK) “Magnitogorsk Iron and Steel Works”, PJSC “Raspadskaya”, JSC “Metalloinvest Holding Company”, etc. (The resident of the free economic zone “Alabuga” became the nominee for the prestigious award for import substitution, 2016). “Kazan Helicopters” (KH) actively fulfils state defence orders (for the needs of the Army) and for the needs of the civilian population, producing aircraft specifically for this category. The program for the import substitution of Ukrainian components for aviation enterprises already involves such enterprises as the Kazan Aircraft Production Association and the Kazan Helicopters. The enterprise manufactures Mi-8/17, Ansat and Mi-38 series helicopters. Speaking about the Kazan Aircraft Production Association, it can be said that the topic of import substitution has been actively developed at this industrial facility. Repair and modernization of long-range aircraft Tu-160, Tu-22M3 and resumed production of new Tu-160 aircraft became the main task of the Tupolev plant in Kazan (Russian Defense Minister S.K. Shoigu checked the fulfillment of the state defense order at the plant of the public joint-stock company “Tupolev” in Kazan, 2020). Together with PJSC “Beriev Aircraft Company” and PJSC “Tupolev” (included in PJSC “UAC” of the State Corporation Rostec) work is underway on a deep modernization of the Tu-95MS. Systems of general aircraft and onboard radio-electronic equipment will be installed, as well as modern complexes as part of a deep modernization on the Tu-95MS. This will significantly improve the efficiency of the aviation complex for its purposes. Thus, the process of import substitution in Russia isn’t something new. So, all new is well forgotten old. For a certain period, Russia faced circumstances that made remember this “well forgotten old”. Remember and activate this process in new modern directions to get the best result (Kirillova et al., 2020). There are 15,288 new members, which were entered the agricultural consumer cooperatives from SMEs and citizens leading personal subsidiary farms (plan—9616 units). For the period from 2010 to 2018, there was an increase in the volume of activities of peasant farms and individual entrepreneurs. Thus, the sown area increased by 2.63 times, the number of cattle—by 4.2 times, milk—by 3.42 times, eggs—by 2.3 times, wool—by almost 8 times (Khairullina et al., 2020).

4

Discussion

Comparing the indicators of agricultural development at present with the data for 2010, deterioration in such indicators as the capacity of vegetable stores can be seen. Thus,

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there is deterioration in the capital provision of agriculture. However, comparing the ratio of food exports and imports, it can be also seen that this indicator in 2010 was 4.55 times, and in 2018 it decreased to 1.19 times. In 2010, 18,498 tons of basic crop prodwere grown in the country. In 2011, 27,985 tons have been already produced, that is, 51% more than a year earlier. Then, from 2012 to 2015, the production figure remained in the region of 24–25 thousand tons. Then the number of potatoes produced is constantly falling and reaches 19,607 tons in 2020, which indicates a decrease in the production of such a crop product as potatoes (Federal State Statistics Service, 2021). At the same time, according to the production of such crop products as vegetables, fruits, and berries, fairly steady progressive growth from year to year since 2010 has been seen: aor vegetables, from 11,002 tons in 2010 to 13,864 tons in 2020; for fruits and berries, from 2075 tons in 2010 to 3661 tons in 2020 (Federal State Statistics Service, 2021). In 2010, such as cattle and poultry for slaughter, the agricultural sector shows a positive trend from 10,549 tons in 2010 to 15,624 tons in 2020. However, the production for the slaughter of cattle has a downward trend from 3028 tons in 2010 to 2840 tons in 2020. For livestock products, such as pigs, growth is from 3097 tons in 2010 to 5473 tons in 2020, for poultry from 3878 tons to 6715 tons in 2020. For milk, the dynamics aren’t so significant from 31,508 tons in 2010 to 32,226 tons in 2020 (Federal State Statistics Service, 2021). A value close to 100% is observed for meat, milk, eggs, and potatoes. The lowest indicator is noted for fruits and berries, compared with 2000 there was a decrease by 16.9% points. Milk yield for the period from 2010 to 2019 also increased by 1.8 times, and in agricultural organizations by 2.54 times, i.e. There is growth in this indicator, however, compared to the same indicator in developed countries, Russia is far behind. The situation is the same with crop yields.

5

Conclusion

In two main directions, the paradigm of import substitution is being formed in modern conditions. It implies either crowding out or prioritization of imports or an increase in competitive domestic products:

• Based on the transfer of knowledge and technology, increasing competencies, in relation to labour resources, improving the quality of the composition; • By building new and expanding existing production facilities, as well as attracting foreign investment, long-term structural transformations and reproductive potential; High dependence on imports can lead to a sharp decline in the welfare of the population in cases of strong depreciation of the national currency, and this, in turn, will lead to a drop in domestic demand and deterioration in the operating conditions of enterprises focused on selling products on the domestic market. In case of a depreciation of the national currency, enterprises focused on the foreign market benefit, but it shouldn’t be forgotten that a large share of Russian exports is raw materials. Given the results of global warming, the energy market will also shrink in the future, which will lead Russia to decline, if diversify its production will be failed.

References Federal State Statistics Service (2021). Region of Russia: import https://rosstat.gov.ru/folder/11188. substitution indicators. Accessed: Oct. 25, 2021. Khairullina, A. D., Pavlova, A. V., Kalenskaya, N. V., & Mukhametshina, G. R. (Eds.) (2020). Innovative approaches to quality monitoring of medical services in the digital environment. In Advances in Intelligent Systems and Computing (Vol. 908, pp. 655– 668). https://doi.org/10.1007/978-3-030-11367-4_63 Kirillova, O. V., Amirova, E. F., & Kuznetsov, M. G. (Eds.). (2020). Innovative directions of agricultural development aimed at ensuring food security in Russia. In BIO Web of Conferences: International Scientific-Practical Conference “Agriculture and Food Security: Technology, Innovation, Markets, Human Resources” (FIES 2019), on November 13–14, 2019, Kazan. EDP Sciences, 68. https://doi. org/10.1051/bioconf/20201700068 Mustashkina, D. A., & Khannanov, M. M. (Eds.). (2014). Methods to encourage and support small agricultural holdings of the Republic of Tatarstan. Italian Science Review, 4(13), 333–334. Russian Defense Minister S.K. Shoigu checked the fulfillment of the state defense order at the plant of the public joint-stock company “Tupolev” in Kazan (2020). https://nation-news.ru/544906-shoiguproveril-vypolnenie-gosoboronzakaza-na-zavode-pao-tupolev-vkazani. Accessed: Oct. 25, 2021. The resident of the free economic zone “Alabuga” became the nominee for the prestigious award for import substitution (2016). https:// alabuga.ru/ru/news/newsblock/news450/?sphrase_id= 70591#news450. Accessed: Oct. 25, 2021.

Problems and Prospects for the Development of Import Substitution in the Agro-Industrial Complex of the Russian Federation Natalya V. Baturova , Gulshat Z. Galyautdinova , Tatyana A. Ivanova , Ilhamiya M. Minnehametova , and Rimma V. Khadeeva

Abstract

Keywords

The paper aims to identify the problematic aspects of implementing the import substitution policy in the agro-industrial complex of the Russian Federation, find the ways to solve these aspects, and determine the most important steps to implement the import substitution policy in the Russian Federation. The methodological basis of the research was the work of Russian scientists on the problems of import substitution in the agro-industrial complex, issues of increasing the efficiency of agricultural production, and state support for the industry. During the research, the authors applied analytical, economic, and statistical tools, as well as systemic approaches. The problems that have been arisen due to the implementation of import substitution in Russia and the problems characteristic of providing the population with quality food, regardless of the development of import substitution, are identified. The problem of risk management at the enterprises of the agro-industrial complex is considered. The authors also note the need to inform the population about the quality of food products. The research novelty lies in developing comprehensive measures to improve the food security of the Russian Federation in combination with measures to improve the quality of food products.

Import substitution Agro-industrial complex quality Risks of the agro-industrial complex regulation

N. V. Baturova . G. Z. Galyautdinova . T. A. Ivanova (&) . I. M. Minnehametova . R. V. Khadeeva Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] N. V. Baturova e-mail: [email protected] G. Z. Galyautdinova e-mail: [email protected] I. M. Minnehametova e-mail: [email protected]

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Food State

JEL Classification

Q01

1

. . . . . . . Q02

Q11

Q13

Q17

Q18

O38

Z31

Introduction

Import substitution positively impacts the economy: new jobs appear, GDP increases, and technological development of the relevant industry takes place. However, improper management of the import substitution process can lead to low production efficiency, i.e., it is necessary to apply this policy, considering the benefits of international specialization. This approach is based only on issues of economic benefit. In addition to the approach that puts economic benefit at the forefront, it is necessary to be guided by the task of ensuring the country’s food security. Moreover, the issue of the quality of food products is also pressing because of the opposition of quantity (in this case, economic efficiency) and quality. Thus, the case concerns the impact of this problem on human health. For example, the use of palm oil in food production instead of sunflower oil has long been a debatable issue. The same problem can be attributed to low-quality chicken meat due to the active use of antibiotics and hormones in the cultivation of broilers, as well as the chemical processing of vegetables or fruits during cultivation and storage. This often makes such products unsafe for consumption in the long term. The priority of quality over quantity is proved by active state subsidies for agricultural enterprises. This is the reason for the success of the agro-industrial complex of developed countries and the

R. V. Khadeeva e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_16

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factor hindering the development of agriculture in developing countries (Galyautdinova & Mironova, 2015). According to V. Yu. Chernova et al., import substitution in the agro-industrial complex have significant potential. A. M. Zobov, E. A. Degtereva, V. S. Starostin, O. G. Teislina, and V. Z. Minnigaleeva (Chernova et al., 2019; Federal State Statistics Service of the Russian Federation, 2020; Minnigaleeva et al., 2018; Teislina, 2019) consider that to implement the policy of import substitution in agriculture, it is necessary to increase the competitiveness of domestic products, increase the financial stability of agricultural enterprises, and develop rural areas.

2

is an increase in the level of self-sufficiency of the Russian Federation for meat by 28.7%. The analysis of the structure of agricultural production by categories of farms showed that from 2000 to 2018, there was an increase in the share of agricultural organizations by 11.3% and peasant (farm) enterprises by 9.3% against the background of a decrease in the share of households by 20.6%. From 2000 to 2018, there was an increase in the volume of activity of peasant farms and individual entrepreneurs. Thus, the sown area increased 2.63 times, the number of cattle—4.2 times, milk—3.42 times, eggs—2.3 times, and wool—almost eight times.

Materials and Methods 3

To support domestic producers, the government can establish restrictive measures for the import of goods into the country and incentive measures to support certain sectors of the economy (e.g., subsidizing, providing preferential loans, developing sales infrastructure). In 2014, due to the deterioration of external economic conditions, the policy to stimulate import substitution was clearly formalized. Therefore, bans on some imports were introduced. Additionally, support for agro-industrial enterprises has become more active. Thus, in Russia, work is underway in both noted areas. To characterize the level of development of the agro-industrial complex and the feasibility of the import substitution policy in the country, it is advisable to analyze the dynamics of crop yields, livestock productivity, and production profitability. Comparing the current indicators of agricultural development with the data for 2000, we see deterioration in such indicators as the capacity of vegetable stores, and the number of tractors per 1000 hectares of arable land can be seen. Thus, there is deterioration in the capital provision of agriculture. However, the ratio of food exports and imports decreased from 4.55 times in 2000 to 1.19 times in 2018, which indicates that the import substitution policy has yielded certain results. Milk yield for the period from 2000 to 2019 increased by 1.8 times and by 2.54 times in agricultural organizations, i.e., there is growth in this indicator. Nevertheless, Russia lags far behind compared to the same indicator in developed countries. The situation is similar to crop yields. It is also advisable to consider the level of self-sufficiency in basic food products to analyze the effectiveness of the import substitution policy. The level of self-sufficiency above 100% was observed only for grain in 2018. A value close to 100% is observed for meat, milk, eggs, and potatoes. The lowest indicator is noted for fruits and berries; there was a decrease of 16.9% compared with 2000. The positive trend

Results

Many scholars note that agriculture is at the forefront of the course towards import substitution. However, the achievement of planned indicators does not always lead to a real improvement in the situation because the achievement of quantitative indicators often leads to the deterioration of qualitative indicators. Talking about qualitative indicators, it is necessary to note such problems in the nutrition of the population as a decrease in the share of beef meat and an increase in the share of pork and poultry meat, an increase in the share of palm oil in the structure of fats consumed by the domestic food industry. In Russian Federation, palm oil has gained great popularity among food manufacturers due to a significant reduction in production costs. Everyone knows that it is challenging to do business in Russia due to the low effective demand of the population, difficulties in attracting financing, and high tax burden. Therefore, reducing the cost of food is beneficial to producers and consumers who want to save on food. For our population, palm oil no longer causes hostility; many people are quite calm about it. According to international statistics, the population of the Russian Federation eats palm oil no more often than in developed countries. Simultaneously, in countries with large consumption of palm oil, life expectancy is even higher than in Russia. Even high-ranking officials boldly declare about the safety of palm oil. However, many countries are phasing palm oil out. In the EU, the volume of glycidyl ethers in food products must not exceed 1 mg/kg. In the Russian Federation, according to the law issued in 2018, margarine must contain no more than 2% of trans fats. The WHO has gone even further—it is supposed to abolish trans fats in food completely. In the Russian Federation, to curb the content of trans fats, the amendment was introduced to the Tax Code of the Russian Federation, according to which the VAT on palm oil was increased from 10 to 20%.

Problems and Prospects for the Development of Import Substitution …

Additionally, interested users pursue information policy to improve the quality of nutrition. Thus, on the packaging of products, manufacturers must indicate the harmful additives contained in the products; there are requirements for the size of the font. Thus, there is certain information support in the network. On the Roskachestvo website, certain products have their descriptions, but there is no information directly about the content of trans fats. The disadvantage of this website is also that it does not present the description for many products because this website is voluntary. In general, food safety policy regarding trans fats is based on the fact that the final decision is made by the consumer. All reviews regarding the applicability of the WHO standards to Russian realities boil down to the fact that, as a result, product prices will increase, and palm oil will be replaced with something even more harmful. From 2001 to 2019, the export of sunflower oil from the Russian Federation increased from 115.4 to 3090.5 thousand tons per year or 26 times. In 2019, compared to 2018, the growth rate was 46.5%. In 2019, exports exceeded imports for such items as fish, crustaceans, mollusks, potatoes, cereals, flour, cereals, sunflower, safflower or cottonseed oil, meat products, sugar, and pasta. However, from 2010 to 2019, there was an increase in the ratio of exports and imports for meat. A negative balance, which has not changed for the better, is observed for such products as milk and cream, butter, other milk fats, and prepared or canned fish. The volume of imports of tomatoes, onions, garlic, grapes, and apples has decreased. As for the profitability of production, the highest value is noted in pig breeding—35.2%. For other products, the profitability is as follows: sunflower seed production— 33.2%, sugar beet—27.6%, grain—25.6%, potatoes— 22.9%, milk and dairy products—14.5%, and vegetables— 12.6%. It should be especially noted that for most items, the profitability of products, considering state subsidies, is higher, especially for milk and dairy products (23.9%). Support was provided in the following areas: concessional lending, investment loans, reimbursement of part of the direct costs incurred, compensatory subsidy, and incentive subsidy (Aidinova et al., 2015). The sale of domestic products, the smooth transition of animal husbandry to the foreign market to generate income from the sale of high-quality local agricultural products in the international arena is currently an urgent task for pig and poultry farming in Russia. The priority direction for the development of agriculture in the Republic of Tatarstan and Russia is to ensure the external competitiveness of poultry farming and pig farming in the market of agricultural products. Currently, according to the results of the analyzes carried out by experts, it has been revealed that the meat raw

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materials of Russian suppliers are inferior to imported ones in many positions, in particular, in terms of quality and technological properties. Nowadays, there is a need to take effective measures in this direction. As practice shows, veterinary safety is insufficiently provided in Russia, which is the main obstacle to promoting pork and poultry meat for export. In Russia, as in many other countries, the problem lies in the presence of a possible infection that can be caused by animal diseases (e.g., bird flu or African swine fever). Thus, it is necessary to attribute the meat processing industry (pig breeding, poultry farming) to another class of protection against diseases of animals and birds. The development and implementation of an effective state program to prevent such diseases will significantly increase production volumes. Nowadays, it is vital to raise the issue of conducting veterinary certification in electronic format and the implementation of animal identification. An advanced set of technical innovations and professional management solutions will significantly improve the work of veterinarians and bring order to the production and sale of animals and livestock products in Russia and abroad. On the one hand, Russia is currently dependent on imports of fruits and vegetables. On the other hand, the restrictions imposed on Russia by foreign countries prompted the transition from import dependence to import substitution. Part of the products are now imported from other countries or produced in Russia. For example, dairy products are supplied from Belarus, fish is imported from Chile and the Faroe Islands, and vegetables and fruits come from China, Turkey, and Ecuador. Features of the functioning of agricultural producers give rise to many types of risks, which, as a rule, negatively affect the financial and economic results of the agro-industrial complex. Unfortunately, the process of import substitution is always associated with certain risks, the main of which, in the author’s opinion, are financial (price), investment, production, foreign trade, industry, macroeconomic, and foreign economic risks. It should be noted that import substitution in the current economic conditions of agricultural producers must be a carefully thought-out and calculated strategy for the agro-industrial complex and the whole country. Let us consider the main types of risks in the agro-industrial complex (Table 1). It should be noted that the management of the above risks is based on the need to increase the efficiency of work in the area of risk management of business entities in the agro-industrial complex to increase the results of their activities. Let us consider the possible risks that arise for

78 Table 1 Risks of the agro-industrial complex

N. V. Baturova et al. Industry risks

Macroeconomic risks

Foreign economic risks

Natural and climatic Production Price Investment Innovative Commercial Property Environmental

Inflationary Institutional Foreign trade Financial Food Risks of import purchases Risks of state support

Political Geographical Social Economic Informational Normative-legal Organizational and technological

Source Compiled by the authors based on “Risk management in the agro-industrial complex” (Galyautdinova & Mironova, 2015)

small businesses in the agro-industrial complex. For example, getting to the market in a large trading network, medium and small farmers face various problems; for example, they cannot provide the required volume or packaging of their products. Moreover, some farmers are not always ready to sell official products. So, there is an opportunity to sell the goods and avoid taxes through resellers-intermediaries, who purchase products for cash. In the end, everyone suffers: the business of farmers goes into the shadow sector; the state loses taxes; supermarkets have a shortage of local suppliers, which can lead to higher prices for products and, accordingly, to decrease in their competitiveness; farmers lose stable demand for their products; the population loses access to fresh local products, which are cheap but not inferior in quality; as a result, inflation rises from the supply of imports of essential goods. One of the ways to solve this problem can be the revival of pedigree cattle breeding and seed production, the development of research and development work in terms of agricultural machinery, which in turn is impossible without an effective information and communication system (ICS) (Mironova & Galyautdinova, 2014). In conditions of uncertainty, in particular, caused by the need for import substitution, the choice of the optimal strategy for managing production processes is carried out among various possible outcomes. The formation of advanced and efficient ICS of an organization can contribute to adequate, timely, and dynamic response of management systems to constant changes in the external environment. Digitalization is also relevant. It will reduce the technological gap in the agro-industrial complex. Agricultural logistics will lead to the popularization of digital technologies in small farms, which will also allow solving this problem. The agro-industrial sector will reduce this problem to a minimum through the reduction of the cost of introducing new IT products and the development of training programs involving young specialists from colleges and universities.

Depending on the organizational and legal forms, risk management of agricultural producers can be carried out in three areas. These areas are as follows: 1 If large enterprises are considered, the first direction involves building its service for managing all possible risks; 2 In integrated agricultural enterprises, the risk management system is usually aimed at creating a single risk management service; 3 Directly at the enterprises of the agro-industrial complex, the risk management system involves the organization of information and consulting services. In the context of import substitution, all commodity producers need to respond timely to changes occurring in the world. Up-to-date information support for making effective managerial decisions in the area of risk management is one of the main conditions for the effectiveness of the enterprise management system in today’s realities. Relevant and timely information is considered the most important economic resource. Based on this, the authors think that agricultural producers must always be included in the constantly changing information flows to implement and use new information technologies (IT) successfully.

4

Conclusion

Since food producers currently face financial difficulties (during the food embargo, food prices have risen), similar Russian products still have not reached the quality level of original goods, the country’s officials have developed a new draft plan to promote Russian agricultural products and food products with improved characteristics. The restriction will be a ban on the use of GMOs in the production of such products.

Problems and Prospects for the Development of Import Substitution …

Today’s agriculture strives to provide the population with high-quality food products of its production and achieve food independence. A successful import substitution policy in agriculture is possible with the development of other sectors of the economy, such as the chemical industry and engineering. It is important to develop projects for the possibility of investing in the regions of Russia and provide the agricultural industry with highly qualified specialists because food independence will provide food for the population in all regions of the country. The presence of competition with foreign goods stimulates Russian manufacturers to improve production technology and product quality, as well as reduce production costs. Currently, the need to make agriculture profitable is important. This will allow attracting workers to villages. Thus, there will be a decrease in import dependence in agriculture. Additionally, it is necessary to create motivational incentives for the development of family farms, using the experience of other countries, such as Israel, Japan, and Germany, where about 80% of the production is accounted for family farms. To increase the pace of development of the economy and reduce the import dependence of agricultural products, it is advisable to transfer unused or inefficiently used areas of land plots to entrepreneurs in need. Supporting small and medium businesses and private farms, creating conditions for the sale of home products, withstanding competition with large trading platforms, it is possible to change the situation for the better.

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References Aidinova, A. T., Alivanova, S. V., Belova, L. A., Vetrova, L. N., Gaiduk, V. I., Gorlova, N. A., Shevchenko, E. A., et al. (2015). Ensuring import substitution of the national economy: Tools and methods. Kuban State Agrarian University named after I. T. Trubilin. Chernova, V. Yu., Zobov, A. M., Degtereva, E. A., & Starostin, V. S. (2019). Implementation of the policy of import substitution in the agro-industrial complex of Russia. Economics: Yesterday, Today, Tomorrow, 9(8A), 182–194. https://doi.org/10.34670/AR.2019.90. 8.02 Federal State Statistics Service of the Russian Federation. (2020). Russian statistical yearbook. Rosstat. Galyautdinova, G. Z., & Mironova, M. D. (2015). Risk management in the agro-industrial complex. The Review of Economy, the Law and Sociology, 4, 31–33. Minnigaleeva, V. Z., Yakhina, L. T., Galimardanova, N. M., & Svechnikov, K. L. (2018). Financial instruments for the implementation of measures for the development of agricultural cooperation. Scientific Review: Theory and Practice, 7, 111–118. Mironova, M. D., & Galyautdinova, G. Z. (2014). Development of information and consulting services in the agro-industrial complex. Modern Problems of Science and Education, 6, 488. Teislina, O. G. (2019). Directions for the implementation of the import substitution policy in the agricultural sector of the economy. In Egorenko, S. N., Dunaeva, E. S., Ryabushkin, B. T., Polyakova, G. P., Somov, V. L., Naumov, S. Yu., Kulkova, O. E., et al. (Eds.), Actual problems and prospects for the development of state statistics in modern conditions: Collection of Materials of the V International Scientific-practical Conference (Vol. 2, pp. 51–53). Saratov, Russia.

Cooperation, Humanism, Tolerance: Realities of History and Modernity Viktor V. Shalin , Taisiya N. Sidorenko , Svetlana G. Boychuk , Nataliya B. Yakusheva , and Olga V. Bershadskaya

and support people striving to realize their ideas for the benefit of society now, including through cooperation.

Abstract

The paper focuses on the issues of current dialectical problems of cooperation and humanistic foundations of tolerance. The dominance of egocentric approaches in the system of worldview foundations in the cooperation of various social institutions is shown. The concept of a social institution is correlated as a regulator that ensures the satisfaction of various needs of individuals, particular society, and society as a whole. The authors of the research rely on five central social institutions: economic, political, family, spiritual and religious, cultural, and educational. The paper highlights various dialectical contradictions at the most diametrical poles of political culture, which in reality lead to the unleashing of most conflicts of the present time and disintegration processes on a global scale. In this regard, emphasis is placed on the problems of tolerance in today’s society. The authors put forward the idea of the movement of egocentrism from subject-subject relations to subject-object variations through separate historical ideologized sections. In this research, the authors seek to provide an opportunity to draw up debatable questions and continue the dialogue about the relationship of tolerance, the individual, society, and the country, to get acquainted with various interpretations of cooperation in the spiritual world of humans and society on the issues raised. It is concluded that it is necessary to continue studying and cultivating humanistic values, a sense of duty, responsibility for social processes,

V. V. Shalin Kuban State Agrarian University Named After I. T. Trubilin, Krasnodar, Russia T. N. Sidorenko (&) . S. G. Boychuk . N. B. Yakusheva Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. V. Bershadskaya Krasnodar Branch of the Financial University Under the Government of the Russian Federation, Krasnodar, Russia

Keywords

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Cooperation Tolerance Egocentrism Humanism Social institution Intolerance Fragmentary political culture Political culture State-God Realities Modernity Globalization

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JEL Classification

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B20 B52 D63 D72 D84 E71 F02 F55 F60 Z10

1

Introduction

The 2nd International Scientific and Practical Conference “Cooperation and Sustainable Development” takes place at a significant period in Russian history: economic, social, and cultural problems associated with the COVID-19 pandemic; 30 years since the collapse of the Soviet Union in August 1991; elections to the State Duma of Russia. Thus, we can speak about complex processes that connect multi-vector trends in the dynamics of Russia. Various dialectical contradictions are distinguished at the most diametrical poles of political culture in the current world. They are usually referred to as integration and disintegration processes. The dominant disintegration phenomena that form a conflict environment in the most diverse areas of interaction between societies and social institutions are visible and more clearly defined. It should be noted that the cause-effect relationships of these processes are universal (Pechcei, 1980). The question brought up for today’s discussion requires a polysemantic approach. In this case, the authors are

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_17

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interested in philosophy in relation to society, i.e., social philosophy. As is known, this science studies global things. Nowadays, only the indifferent do not want constant action to change their position in society. The intensity of interpersonal, intergroup, and interstate relations is growing vertically. It is important to choose the right direction for applying forces.

2

Materials and Methods

If there is no understanding of the general laws of nature, society, and thinking, all our actions will be erroneous, and failures will haunt the entire human community. For the authors to understand the essence of the discussed issues, they will try to define the concepts, for every science is formed and functions precisely in such views. Cooperation is a partnership, the relationship of people in the processes of their activities. Cooperation is a kind of addition or multiplication of human forces, which gives a powerful “additional” effect. The “additional” effect is formed because people can link their activities in space and time. The importance of cooperation in the history of society is constantly increasing. This increase is primarily due to the emergence of complex “compositions” of human activity unfolding in time. If the effect of activities depends less on the number of people gathered in one place, the social value of organizations, which interact with “living” and objectified human abilities and connect operations performed by people in different points of social space, is higher. Thus, cooperation is revealed as a complex social relationship that maintains the continuity of the social process, ensuring its reproduction and development. The creative activity of an individual can also be interpreted as a kind of cooperation of human qualities, producing new objectivity, qualities, and forms (Kemerov, 1998). The authors consider it is important to focus on the following interpretation when characterizing the concept of “humanism” within the framework of the research topic. “Humanism is a historically changing system of views that recognizes the value of a human as a person and their right to freedom, happiness, development, and manifestation of their abilities, considering the good of a person as a criterion for assessing social relations” (Efremova, 2015). As for the concept of “tolerance,” it should be noted that it has not yet received an unambiguous interpretation. Nevertheless, it is also the subject of heated discussion by many researchers—philosophers, historians, political scientists, sociologists, etc. In this research, the authors focus on the interpretation of tolerance as “the human desire to achieve mutual understanding and agreement on a variety of motives, attitudes, and orientations, not resorting to violence and the suppression of human dignity but using

humanitarian opportunities—dialogue, clarification, and cooperation” (Ilyin, 2017). Egocentrism is a worldview system built on the recognition of the personal “I” as the center of the surrounding world and its system-forming factor. In fact, this is the dominance of a personal starting point in worldview, understanding of the world, and attitude as the only and irrefutable principle (Shalin, 2011). A clarifying point in the hermeneutics of this concept is the use of a person’s interpretation in disclosing the stated topic. The authors do not use the phenomenon of egocentrism of children’s thinking, which was discovered by Piaget, but they transfer the idea to the subjects of social reality. The concept of a social institution is correlated in people’s understanding as a regulator that ensures the satisfaction of various needs of individuals, particular society, and society as a whole. In this research, the authors rely on five main social institutions: economic, political, family, spiritual and religious, cultural, and educational. The author also notes that this interpretation of processes is open and debatable, which allows declaring a polysemantic emphasis in the interpretation of theoretical approaches. Undoubtedly, they are not limited to the selected concepts. However, the authors only emphasize the language apparatus for systematizing the conceptual area.

3

Results

It is impossible to talk about cooperation without considering the diverse vectors of globalization on a planetary scale, the contractual system that arose in Europe in modern times as a result of the thirty-year war between Catholics and Protestants. This is about the Peace of Westphalia and the recognition by Catholics of the Protestants, who oppose them. Moreover, the logic here is simple and speaks of a cooperative, tolerant perception—if heretics cannot be defeated, they should be accepted as they are. Apparently, modernity is characterized by different processes. Problems of influence and weakness of international political institutions are expressed in the fact that not only certain segments of political influence but also the security of all humankind are under threat. The classics of Marxism-Leninism argued that the social world develops in a spiral. In accepting this doctrine, it should not go back to ancient times. In the late nineteenth century, Nietzsche said, “God is dead, we killed him” (Nietzsche, 2010). It appeared in the book “Fun Science,” written in 1881–1882. Undoubtedly, Nietzsche did not put direct meaning into this phrase, he did not consider the existence of God an

Cooperation, Humanism, Tolerance: Realities of History and Modernity

axiom, but humanistic foundations dominate the understanding of the German philosopher. The essence lies in the functioning of a person as God. With this interpretation, a person is free and does not need to listen to others, including transcendental voices. In the book “Thus Spoke Zarathustra,” Nietzsche designates a superhuman subject, who, through the will to power and evolutionary periods, allows himself to demonstrate his egocentric aspirations and rise above his contemporaries: “I teach you the Superman… Ye have made your way from worm to man, and much within you is still worm. Once were ye apes, and even yet man is more of an ape than any of the apes” (Nietzsche, 2019). Adolf Hitler was a person, who adopted the ideas of Nietzsche and distorted the meaning of the original source, was the “superman,” to the category of which he referred himself. The authors will speak of him in this nominal category because this person and ethnic origins are still controversial among historians. In the perception and interpretation of the exclusivity of the Aryan nation, the postulate of higher individuals is used to transfer the egocentrism of the “leader” to the German nation, in the positioning of everyone and the creation of society—the “master race.” Thus, the social institution of the German state appeared—the “ancestor of humankind.” The “Ego” of the true Aryans did not care about the fact that this particular institution was built on the death of other ethnic representatives. In this case, we can trace not only subject-subject but also subject-object relations, which we find already in the twenty-first century. In this context and subtext, the policy of egocentrism moves from Europe to the USA. While German liberals reproach themselves for the gloomy past of the twentieth century, Barack Obama’s statement about the peculiarities of the American nation, its “exclusivity,” appears. However, this shows the egocentrism of a separate institution—the USA, as an example of “moral principles,” “wisdom,” and “greatness.” The function of the transcendent principle is entrusted to it. Washington seeks to impose its line on everyone and everywhere. Moreover, this state-God is allowed everything, from the usurpation of economic interests in the global space to its interpretation of humanism. In reality, this has led to the unleashing of most of the conflicts of our time and disintegration processes on a global scale. It should be emphasized that to achieve their goals, the concept of cooperation or union is used in its interpretation (partnership AUKUS, flight from Afghanistan). The main “moral” tendencies of the current American establishment can be called cynicism and egocentrism. This is a bridge through many centuries of cooperation of the Anglo-Saxon world to assert its superiority, for example, over blacks and people of other origins. Self-affirmation chooses one direction to kill, destroy, genocide to others, i.e., world domination. Where are the

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roots? Let us recall the forerunner of the Peace of Westphalia, religious social institutions represented by Protestantism. This is also egocentrism: only people have all rights. Nowadays, a different paradigm is being constructed. It is also associated with the “State-God”—the cooperation of people with different skin color to destroy the existing system. They not only declare their superiority (the birthplace of humankind is Africa) but also operate in the system of social institutions. A striking example is the reluctance of people with different race to study next to white students. These phenomena are characteristic not only for the named region; there is a seizure of land from white farmers in South Africa based on legislative initiatives. The radicalism of such cooperative actions can lead to disastrous results. One more argument that made many ordinary Americans think is an article by the President of the Russian Federation, Vladimir Putin, published in The New York Times. Public attention was attracted by the fact that, arguing with Obama, Putin stressed that, “It is extremely dangerous to encourage people to see themselves as exceptional, whatever the motivation. There are big countries and small countries, rich and poor, those with long democratic traditions and those still finding their way to democracy. Their policies differ, too. We are all different, but when we ask for the Lord’s blessings, we must not forget that God created us equal” (Putin, 2013). Professor Reshetnikov also outlined his position in relation to the localizing ship: “We are all in the same boat, but some are a provision” (Reshetnikov, 2016). Now, the question is who will be the “food” and whether the boat will be intact. In the beginning, the authors talked about integration and disintegration processes. Let us try to comment on them from the point of view of the main problem of humanity today—the COVID-19 pandemic. This is a physiological, moral, and ethical disease. The origins of any pathology are rooted in the spirit of a particular era. There is an understanding that scientific and technological progress will contribute to social progress, provided only in such cases if it is based on the moral and cultural component of human life. However, unfortunately, despite the need for cooperation, Western civilization demonstrates discontact. Everyone hides in his hole and does not think about what is beyond it. The situation is similar in the social institution of the family as a humanitarian issue, where the model is not only a man and a woman but more than 70 different subspecies, including LGBT. No less important is the question raised by Kovalchuk. “Currently, the real technological opportunity has arisen in the process of human evolution. The goal is to create a fundamentally new subspecies of Homo sapiens—a service person… In fact, currently, there has already been a real technological possibility of breeding a service subspecies of

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people. No one can interfere with it, this is the development of science, which is actually happening, and we must understand what place we can take in this civilization” (Kovalchuk, 2016). The ban on the creation of people (biological cloning) exists, but there is no guarantee that it will not be violated. Globalization processes have actualized another historically determined problem, which can be conditionally called ethnic egocentrism. For various reasons, the issues of national sovereignty are conditional today; because of global problems, only the state remains as the leading actor in current international law and the representative of sovereignty. The so-called fragmented political culture often dominates these newly formed sovereigns. For this, the dominant factor is the constant confrontation regarding basic values and ideals, the constant confrontation and cooperation in social communities on the principles of hostility, and the rejection of other views and beliefs. This is usual, but it received a concentrated position in the previous century, becoming the prototype of such formations in the new era. The examples of such dominants of a fragmented political culture and ethnic egocentrism are the events in Kosovo, Serbia, Ukraine, and Nagorno-Karabakh, with politicians finding motivation and justification for their actions not at all in territorial affiliation, but in affiliation with other ethnic groups: “Who does not jump, that Muscovite.” In the twentieth century, there was a sharp controversy around the concept of “tolerance.” This debate continues to this day. The authors have identified the problems that cause ambiguous approaches to the humanistic, axiological foundations of the positive development of humankind. It should be noted that cooperation without accepting the principle of tolerance is impossible by definition. This principle can be temporary and interpreted as indifference. Nevertheless, it gives a positive result at the end, mixing together the conscious and the unconscious. Corporate approaches to the semantics of many concepts specifically designate a combination of parameters related to entrepreneurship and the solution of social issues. In the current world, the middle class is disappearing, and its place is taken by huge corporations, for which the individual is indifferent, and the egocentric aspirations of people, who are in the power of political capital and ensure their social order, are important. This is how the principle of those in power is realized: “If I am happy, my environment will be happy too. What is meant by the environment is a purely subjective approach.”

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As for the political culture of modernity, it can be argued that the actual processes have a relatively strong influence on the variability and adaptability of many worldview systems.

4

Conclusion

Forming a new concept of the social development of Russian society, the authors highlight the paradigmatic foundations of the current transformation of the individual and all social institutions in almost all corners of the state. Progress is impossible without efforts aimed at the legal protection of the subjects of this process. The history of the development of our society confirms the maxim that humanity is one. Characterizing Russia, not without reason, some authors called it the solar plexus of Eurasia. As for tolerance (“tolerance” in the understanding of the ancient Russians), Russian Federation has an ancient history, the origins of which are rooted in pagan Russia. The study of the identified problems has promising development. The authors of the work hope that this article will be useful in creating discussion questions, continuing the dialogue about the relationship of tolerance, the individual, society, and the state, and getting acquainted with various interpretations of cooperation in the spiritual world of humans and society on the issues raised. In today’s conditions, it is necessary to cultivate a sense of duty and responsibility for social processes and support people who try to realize their ideas for the benefit of society.

References Efremova, T. F. (2015). The most complete explanatory dictionary of the Russian language. AST Publishing House. Ilyin, I. (2017). The path of spiritual renewal. Publishing House: GIFT. Kemerov, V. E. (Ed.). (1998). Modern philosophical dictionary. “PANPRINT”. Kovalchuk, M. V. (2016). Today there is a real technological possibility of breeding a “service” subspecies of people. Retrieved from https://mediamera.ru/post/24603. Accessed October 7, 2021. Nietzsche, F. (2010). Fun science. Publisher Folio Literary Agent. Nietzsche, F. (2019). Thus spoke Zarathustra. AST. Pechcei, A. (1980). Human qualities (O. V. Zakharova Transl. from English). Progress (Original work published 1977). Putin, V. V. (2013, September 12). A plea for caution from Russia. Retrieved from https://www.nytimes.com/2013/09/12/opinion/ putin-plea-for-caution-from-russia-on-syria.html?_r=1&. Accessed September 16, 2021. Reshetnikov, M. M. (2016). The temptation of fanaticism. Ogonyok Magazine, 3(21), 181–190. Shalin, V. V. (2011). Tolerance: A cultural norm and a political necessity. Lap Lambert Academic Publishing GmbH&Co.KG.

Features of the Sustainable Development of the Tourism Economy in the Context of the COVID-19 Pandemic Elena M. Kryukova , Valeriya S. Khetagurova , Lilia V. Matraeva , Ekaterina S. Vasiutina , and Nataliya A. Korolkova

problem; low level of qualification of staff and, as a result, service; inefficient branding of regions or its absence. Originality: the listed limiting factors identified and described by the authors in the course of the study have several sub-problems that require priority solutions, in modern economic conditions, the solution of the identified problems is possible only with the participation of the state, namely, it is possible to achieve sustainable development of the tourism economy in Russia only with the participation of state regulation of the industry in general and interaction between business and the state in particular.

Abstract

The tourism industry plays a significant role in the state economy, contributes to the development of related branches of the regional economy and improves the socio-economic situation of citizens. At the same time, the tourism industry at the level of the world economy is considered to be a dynamically developing national economic activity that contributes to foreign exchange turnover between countries, the reduction of unemployment, and the development of socio-cultural, environmental consciousness in the minds of people and the recognition of international cooperation. The purpose of the research is to study the prospects for the development of the Russian tourism economy in the context of the COVID-19 pandemic. Research objectives: to explore the theoretical aspects of tourism management; assess the current state of Russia’s tourism potential; identify the problems of tourism development in the regions of Russia; to analyze trends in consumer demand in the market of tourist services; develop scientific and practical recommendations for the development of domestic tourism destinations. To implement the tasks set, it is advisable to use the following methods of scientific research: observation, analysis and synthesis, system analysis and modelling. Results: the main problems hindering the development of the tourism industry in the regions include: the high cost of hotel services, the mismatch between their price and quality; transport E. M. Kryukova (&) . V. S. Khetagurova . L. V. Matraeva . E. S. Vasiutina . N. A. Korolkova Russian State Social University, Moscow, Russia e-mail: [email protected] L. V. Matraeva e-mail: [email protected] E. S. Vasiutina e-mail: [email protected] N. A. Korolkova e-mail: [email protected]

Keywords

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Tourism Tourism and hospitality industry Tourist business Territory development Sustainable development Tourism economy Destinations Regional economy

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JEL Classification

R10 P48

1

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R100

. . . . . . . . Z1

Z3

O1

O3

P41

P45

P47

Introduction

Tourism is an important sector of the economy for most states, influencing the development of the social and economic spheres of the country. For many countries, tourism is a highly profitable area of economic activity, which in turn increases financial contributions to the state budget, contributes to the well-being of the population, reduces unemployment, and develops tourism infrastructure through public–private partnerships.On a global scale, the tourism industry accounted for 10% of the Gross Domestic Product (GDP) and more than 6% of exports (statistics for 2019), the

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_18

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contribution of the tourism sector to the Russian economy in 2019 reached 3.4% of GDP was not so large compared to European states, but over the past years, its steady growth has been observed (https://www.tohology.com/hospitality/ industry/economic-impact-of-travel-tourism/; Volkov et al., 2018; https://eng.rosstat.gov.ru/). In 2020, the situation on the global economic market changed dramatically due to the pandemic caused by the coronavirus infection outbreak in the city of Wuhan (China). The tourism sector suffered the most damage; according to the Decree of the Government of the Russian Federation (http://www.consultant.ru/document/cons_doc_LAW_ 297883/18eb24005fd062573c142fb7f98769137ce7d974/), the tourism and hospitality industry was recognized as the most affected. Restrictive measures aimed at curbing the spread of the COVID 19 infection, its first wave, naturally froze the movement of tourists not only around the world but also in Russia.The situation adversely affected small and medium-sized businesses in the HoReCa sector, which is directly the basis of the tourism industry. The COVID-19 epidemic has caused one of the strongest crises in the Russian tourism market over the past 30 years, according to Maya Lomidze, director of the Association of Tour Operators of Russia (Butorov, 2020). In the context of the closure of the borders, large Russian tour operators were forced to reorient themselves to the domestic tourist market, which in turn led to cooperation between business and the state in the development of domestic recreation areas. Compared to the crises of 2008 and 2014, which also affected the development of domestic tourism, the current situation is characterized by a more hopeless position of Russian tour operators in their ability to provide a wide range of tourism products, close cooperation between the state and business in the development of domestic recreation and a change in consumer preferences in the tourism services market. Within this context, the relevance of this study is not in doubt.

2

Materials and Method

The theoretical and methodological basis of the study is the works of Russian and foreign economists in the field of state regulation of economic processes, as well as experts with the necessary experience and knowledge in the field of tourism at the macro, meso and micro levels of the economy. In the course of the study, such research methods as the method of expert assessments, methods of statistical analysis, a systematic approach, and modelling are applied. The information and empirical base of the study are represented by legislative acts of the Russian Federation, official statistics of the Federal State Statistics Service,

analytical data from the world and domestic news agencies, scientific research materials (monographs, scientific articles, etc.), as well as data presented on the official pages of tourism industry enterprises and hospitality and personal expert opinions (Agamirova & Agamirova, 2016; Butorov, 2020; https://e.lanbook.com/book/79350).

3

Results

In many countries, tourism is an area of the socio-economic complex, which has grown into a full-fledged and constantly developing industry. It currently employs about 330 million people. Every tenth job in the world is in the tourism industry. For example, in the United States, tourism is the second largest employer after healthcare and has both direct and indirect employment effects. The indirect effect is estimated at 1.4 jobs in related industries, i.e. the creation of one job in tourism entails the creation of 1.4 jobs in industries dependent on tourism. Based on the 2020 report of the World Travel & Tourism Council, in 2019 there was a 3.5% growth in the tourism industry, for the ninth consecutive year, outpacing the global economy by 2.5% (https://www.tohology.com/hospitality/ industry/economic-impact-of-travel-tourism/). A comparison of the share of the tourism industry with other sectors for 2019 is shown in Table 1. Thus, 2019 was another stage in the development and growth of the tourism industry, increasing its importance in the development of the global economy. Hence the state’s interest arises in creating a favourable tax “climate” for business, direct investment in the tourism industry and other methods of stimulating the development of tourism on its territory. The current crisis caused by the COVID 19 epidemic had a serious impact on the development of the domestic tourism market. As a result of the introduction of measures to limit the spread of coronavirus infection, compared to the second quarter of 2019, international tourist arrivals in Russia decreased by 99%, sector revenues decreased by 95.2%, and the number of tourists accommodated in the collective accommodation facilities (CAF) decreased by 87.9%. The total turnover of the Russian market of tourist services has decreased by 60% (2.1 trillion rubles). The tourist market of the Russian Federation is an integral part of world tourism. This statement is confirmed by the statistics given by the World Tourism Organization (WTO), according to which the share of Russian GDP in the world market is 1.3%. At the same time, tourism solves several domestic tasks: the revival and diversification of the economy, the socio-economic development of the population (Kryukova et al., 2021; Maloletko et al., 2018;

Features of the Sustainable Development of the Tourism Economy in the Context of the COVID-19 Pandemic Table 1 The share of the tourism industry in the global economy in 2019 Sector

GDP growth, %

Information and communication

4.8

Financial services

3.7

Tourism

3.5

Healthcare

3

Retail and wholesale trade

2.4

Agriculture

2.3

Construction

2.1

Production

1.7

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tourism industry is an important sector of the economy.The contribution of domestic tourism to the country’s GDP is 6.7% (together with related industries). A rather small indicator is explained by the lack of an integrated approach to organizing the tourism industry in the regions and ensuring its impact as a single system on the quality of the product, the formation of tourist demand, as well as entering the international service market with the same level of service.

4

Discussion

Source Compiled by the author based on collected data

Matraeva et al., 2020; Pochinok et al., 2015; Shpilina et al., 2017). The production of a domestic tourism product is impossible in isolation from the regional economy. Its basis is the system of intersectoral interaction of the regional economy, which includes the entities of the tourism market and related sectors of the economy that provide the material and technical base of tourism and bring the tourist product to the consumer (Vinichenko et al., 2016). In Russia, before the COVID 19 pandemic, there was a significant imbalance in the incoming and outgoing flow of tourists. The outward flow was much larger, which contributed to the export of billions of dollars annually. These losses were not compensated by inbound tourism. During the period of border closure, many consumers were forced to spend their holidays in Russia, which led to the preservation of a significant amount of money in the country and, as an option, provided an opportunity for business and the state to invest it in the development of the industry (Butorov, 2020; Chernyshevskaya, 2020). The ratio of the main cost indicators of the tourism industry with indicators that measure the volume of national production will determine the significance and share of tourism in the economy of the state. The share of domestic tourism in Russia in GDP ranged from 4 to 4.2% before the onset of the crisis caused by COVID-19 (information for 2019). At the end of 2020, Russia’s GDP decreased by 3.8% and a significant part of the losses are industries focused on serving the population: hotels and restaurants (−24.1%) (Butorov, 2020; Kryukova et al., 2021; https://www. tohology.com/hospitality/industry/economic-impact-oftravel-tourism/). In the context of the globalization of the economy, the regions are forced to segment their economic activities. Since not each of them can boast of having a wide variety of developed sectoral economies, the tourism industry, which is available in one state or another, is a promising direction for modernizing policy. In most developed countries, the

The domestic assortment of the tourist product and domestic tourism as a whole is considered by the consumer under the prism of comparison with foreign counterparts, thus assessing their competitiveness and individual quality indicators. Setting the price for a tourist product, the dynamics of supply and demand directly depends on the trends of the global tourism market. The main opportunities for the development of the domestic market include: – consumer withdrawal to the Internet, increase in online sales. In recent years, Russian tourists are increasingly using the Internet to search for hotels, air tickets, etc. The logical response of the business to this trend was to increase the range of booked services in the network. Tour operators have thought about developing new booking systems aimed at the client without the mediation of a travel agent; – development of event tourism. This type of tourism activity has several advantages (the absence of the influence of the seasonal factor on the tourist flow, the profitability of the event, etc.) and strategic goals (shaping the image of the region or the country as a whole, military-patriotic education, etc.). Its development depends on close cooperation between business and local authorities and competent promotion in the tourism services market; – more affordable air travel within the country. Cheaper air travel between Russian cities will significantly increase the domestic tourist flow. This trend can be traced by the example of state subsidies for air travel from the Far East region, as a result of which the Far East twice a year has the opportunity to purchase air tickets to the western part of the country at a significant discount. The excitement for them is quite large. All preferential places are sold out within a few days; – development of tourism in the regions. The constituent entities of the Russian Federation have a wide variety of tourism resources, based on which it is possible to provide comprehensive services for tourism needs;

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– the creation of a new approach to the classification of collective accommodation facilities can influence the regulation of their rating and, as a result, encourage investment; – simplification of tourist formalities in order to stimulate the flow of tourists; – increase in domestic tourist flow through government programs. For example, a cashback program for tours in Russia; – the introduction of innovations in the tourism industry in Russia, related not only to the technologies for the provision and formation (as they say “production”) of tourism services, but also the training of personnel (https:// welcometimes.ru/opinions/osnovnye-turisticheskietrendy-v-2021-godu). Despite the resource volumes of objects of tourist interest, the Russian Federation has some infrastructural limitations for building a high-quality tourist product on their basis. In addition, the reason for the annual cost growth for hotel services is the lack of collective accommodation facilities (CAFs). This implies the need to solve the problem of qualitative and quantitative development of the hospitality industry throughout the country. As part of domestic tourism, in order to counter several shortcomings of the domestic tourism product market (seasonality, a small range of offers), year-round resorts are created, based on which various types of recreation are developed. The total flow of domestic tourists in Russia at the end of 2020, due to the COVID-19 pandemic, decreased by 35– 40%—from 68 million trips in 2019 to about 40 million in 2020. The rise was mainly beach tourism and rest on resorts of the South of Russia. International cooperation in the field of tourism activities, in one form or another, has a significant impact on the development of tourism and interstate tourist flows. Domestic tourism has its distinctive feature. It is understood as the temporary departure of citizens of this or that state from their permanent place of residence for tourist and recreational purposes. At the same time, the trip is carried out within the borders of their state and is used to determine the tourism of residents on its territory. Domestic tourism is considered as not a simple socio-economic process, consisting of a large number of tourism market entities that act as tourism infrastructure. This process has a direct impact on microeconomics, macroeconomics, mesoeconomics and the functioning of the world economic system as a whole. The relevance of modernizing the management system of domestic tourism in the Russian Federation has a pronounced character. Practice shows that due to the inefficiency of the local management system, decisions made at the state level do not bring the expected result. In the current

E. M. Kryukova et al.

conditions of the domestic tourism market, the need to coordinate actions between government officials and businesses, to combine their efforts for the development of tourism at the local levels, is particularly acute. The problem of tourism management also lies in the lack of a unified approach to this process. Each region of the country has its department responsible for the development of the industry. Somewhere tourism is mixed with sports or youth policy, somewhere the department of economic development is engaged in this, at the federal level management is carried out by the Russian government and the Federal Agency for Tourism. The non-existence of a unified management structure has a negative impact on the functioning of the industry. When identifying the structure of the problems of developing domestic tourism in the regions, it is necessary to focus on the strategic management, not of tourism itself, but the regional tourism complex (RTC). The strategy for the formation of each RTC should be based on the socio-economic characteristics of the territory where it is planned to be located. These characteristics include the state of the regional economy, the development of infrastructure, the situation with the availability of qualified personnel, etc. The regional economy has several resources that can be used in the tourism complex (TC), in turn, the tourism complex plays different roles for the region, depending on under the prism of which sphere to look at it.So, in the production sphere, the gross regional product is formed, in the public sphere—a demand for tourist services is created, there is a physical and psychological recovery of citizens and the development of their knowledge about the world around them, in the financial sphere—it contributes to an increase in statistical indicators of economic conditions and the investment attractiveness of the subject of the country, in the legislative sphere—the improvement of the regulatory framework, in the regional economy—the implementation of targeted programs to modernize the tourism infrastructure (https://docs.cntd.ru/document/557414759, https://tourism. gov.ru/contents/documenty/strategii/strategiya-razvitiyaturizma-v-rossiyskoy-federatsii-v-period-do-2035-goda/). The modernization of the tourism industry has a dual character. On the one hand, this process contributes to the growth of the socio-economic indicators of the region, on the other hand, the deterioration of the environmental situation and the state of tourist resources under the influence of a constant recreational load. Based on the current crisis, the closure of most countries, the instability of the national currency and the low solvency of the population, the following trends in the development of tourism are formed: a decrease in cash costs by vacationers (Kaurova et al., 2013), a reduction in the duration and

Features of the Sustainable Development of the Tourism Economy in the Context of the COVID-19 Pandemic

number of tourist trips, booking hot tours, visiting relatives and increasing demand for weekend tours outside the settlements.These factors directly indicate that the Russian tourism industry has a chance to develop domestic tourism and form a more loyal consumer attitude towards it. The Russian Federation has not only a large resource potential for the development of domestic tourism products but also a huge, unsatisfied market of tourist demand. According to Art. 3 132-FZ, the main law governing the tourism activities of Russia, (http://www.consultant.ru/ document/cons_doc_LAW_12462/) tourism is a priority sector of the state economy. In turn, this fact contributes to creating conditions for the development of the industry; establishes and stimulates the most important areas of tourism activity; at the international level represents Russia as a country favourable for tourism; provides protection for domestic tourists, travel agencies and their associations. Also, the federal law contains provisions on the goals, objectives, principles and directions of state policy for the development of tourism.However, the changes that have taken place in recent years, which have affected various spheres of the state and society, as well as the world experience in the functioning of the tourism market, are forcing the Russian authorities to develop new approaches to conducting state policy in the tourism industry.

5

Conclusions

To date, the tourism industry in Russia is developing based on two main documents of the federal level: the Federal Target Program Development of domestic and inbound tourism in the Russian Federation (2019–2025) (https://docs. cntd.ru/document/557414759) and the Strategy for the development of tourism in the Russian Federation for the period up to 2035 years (https://tourism.gov.ru/contents/ documenty/strategii/strategiya-razvitiya-turizma-vrossiyskoy-federatsii-v-period-do-2035-goda/), 63 subjects of Russia out of 85 or 74.2% have a developed tourism industry with existing infrastructure, a well-formed tourism product and a steadily growing demand in the service market. The main directions of tourism development in Russia are: domestic and inbound tourism; improving the quality of tourist services to the international level; introduction of navigational elements of tourist infrastructure in the regions; increasing the role of tourism in educating Russians about cultural and moral values; joint activities of the regions in the promotion of the domestic tourism product. The development of tourism always takes place in a specific area, which is in the area of responsibility of local authorities.It is considered expedient to involve local authorities in the development of the industry in order to accurately determine

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the needs of the population quickly respond to emerging problems and resolve specific issues. The specifics of local tourism management lie in the direct implementation of regional programs for its development and direct contact with business entities.

References Agamirova, E.V., & Agamirova, E.V. (2016). Features of functioning of the market of tourist and hotel services in modern conditions of economic development of Russia. Service in Russia and Abroad, 10, 3(64), 171–183. https://doi.org/10.12737/20109 Butorov, S.A. (2020). The covid-19 pandemic and its impact on the global tourism industry. Bulletin of MGUKI, 2(94). https:// cyberleninka.ru/article/n/pandemiya-covid-19-i-eyo-vliyanie-namirovuyu-turisticheskuyu-industriyu. Accessed: October 16, 2021. Chernyshevskaya, Yu. (2020). Russian tourist market: broken, but not broken. Journal “RZHD-Partner”. https://www.rzd-partner.ru/ other/comments/turisticheskiy-rynok-rossii-razbit-no-ne-slomlen/. Accessed: October 16, 2021. Decree of the Government of the Russian Federation No. 872-r dated 05.05.2018 “On Approval of the Concept of the Federal Target Program “Development of Domestic and Inbound Tourism in the Russian Federation (2019–2025)” (current version). Consultant Plus. http://www.consultant.ru/document/cons_doc_LAW_297883/ 18eb24005fd062573c142fb7f98769137ce7d974/. Accessed: October 16, 2021. Domestic tourism as a basis for sustainable development of Russian regions. (2019). A collection of scientific articles: a collection of scientific papers. Kemerovo State Institute of Cultutre, 1–255. https://e.lanbook.com/book/79350. Accessed: October 16, 2021. Federal Law No. 132 - FZ dated 24.11.1996 “On the basics of tourist activity in the Russian Federation” (current version). Consultant Plus. http://www.consultant.ru/document/cons_doc_LAW_12462/. Accessed: October 16, 2021. Kaurova, O., Maloletko, A., & Yumanova, O. (2013). Ways to counter retrieval of “shadow income” from businesses with fixed assets in hospitality. Middle East Journal of Scientific Research, 15(5), 757– 762. https://doi.org/10.5829/idosi.mejsr.2013.15.5.11404 Kryukova, E. M., Khetagurova, V. S., Soshenko, M. V., Lutovinova, N. V., & Filimonova, N. N. (2021). The current state of the economy of religious tourism and orthodox pilgrimage in Russia. Laplage Em Revista, 7(3A), 67–77. https://doi.org/10.24115/S24466220202173A1367 Kryukova, E. M., & Khetagurova, V. S. (2020). Modern methods and approaches to the management of the hotel services promotion. Revista Turismo Estudos and Práticas, 3, 1–2. Maloletko, A., Volkov, D., Vishnyakova, V., & Shatsky, A. (2018). The effect of supply chain and consumer preferences on the formation of the economic model. International Journal of Supply Chain Management, 7(5), 684–689. Matraeva, L., Vasiutina, E., & Belyak, A. (2020). The effects of digitalisation on the labour market: The case of Russia. Work Organisation, Labour and Globalisation, 14(2), 31–45. https://doi. org/10.13169/WORKORGALABOGLOB.14.2.0031 Pochinok, N. B., Andryushchenko, G. I., Savina, M. V., Spirina, A. N., & Maloletko, A. N. (2015). Place of private pension funds in the financial market. Asian Social Science, 11(14), 161–168. https://doi. org/10.5539/ass.v11n14p161 Shpilina, T. M., Kryukova, E. M., & Vasiutina, E. S. (2017). Informal employment in SCO countries: Realities and prospects. European Research Studies Journal, 20(2B), 429–438.

90 Tourism Development Strategy in the Russian Federation for the period up to 2035 (approved by the Decree of the Government of the Russian Federation No. 2129-r dated September 20, 2019) (current version). Federal Agency for Tourism. https://tourism.gov.ru/ contents/documenty/strategii/strategiya-razvitiya-turizma-vrossiyskoy-federatsii-v-period-do-2035-goda/. Accessed: October 16, 2021. The economic impact of the tourism and travel sector in 2019 and the consequences of the 2020 crisis that affected it. TOHOLOGY: Tourism & Hospitality. https://www.tohology.com/hospitality/ industry/economic-impact-of-travel-tourism/. Accessed: October 16, 2021. The concept of the federal target program “Development of domestic and inbound tourism in the Russian Federation (2019–2025)” (approved by Decree of the Government of the Russian Federation No. 872-r dated May 05, 2018) (current version). https://docs.cntd. ru/document/557414759. Accessed: October 16, 2021.

E. M. Kryukova et al. Top Travel Trends in 2021. The official website of the news portal. https://welcometimes.ru/opinions/osnovnye-turisticheskie-trendy-v2021-godu. Accessed: October 16, 2021. Vinichenko, M. V., Kirillov, A. V., Frolova, E. V., Kaurova, O. V., & Makushkin, S. A. (2016). Monitoring of working conditions and the nature of their influence on the health of students and academic staff. International Journal of Environmental and Science Education, 11(11), 4564–4577. Volkov, D. V., Maloletko, A. N., & Kaurova, O. V. (2018). Formation of bounded consumers’ rationality based on micro-segmentation. European Research Studies Journal, 21(4), 754–762. https://doi. org/10.35808/ersj/1243 Which Rankings Are in Need and Which Make Sense indeed: International Conference Key Results hosted by Rosstat. Official website of the Federal State Statistics Service. https://eng.rosstat. gov.ru/. Accessed: October 16, 2021.

Development of the Cooperative Movement in the Republic of Bashkortostan: Problems and Prospects Alfira R. Mazhitova , Buranbai R. Yuldybaev , Lyailya G. Khusnutdinova , Ilfat Z. Samsitdinov , and Elena Z. Zulkarnaeva

population in entrepreneurial activities, and the improvement of the regional economy. Measures have been developed to improve the legal framework and regulate rural cooperatives.

Abstract

Sustainable growth of the economy is possible with active information and financial support for the business sector. The Republic of Bashkortostan is an agricultural region of Russia. The research relevance is caused by the study of the rapid development of the cooperative movement in Bashkortostan. There has been a noticeable increase in the number of agricultural consumer cooperatives (ACC) and their members from among the population, leading personal subsidiary plots and farming. The authors identified positive and constraining factors influencing the development of the ACC. The authors are sure that information and consulting support, as well as state financial assistance to enterprising and enterprising agricultural producers, is a prerequisite for developing the regional economy. According to experts, municipal districts and cities of the Republic of Bashkortostan are highly differentiated in terms of the level of economic and social development. The situation can be leveled based on the effective distribution of production forces and the balanced development of economic sectors and material production. The development of the social infrastructure of rural areas, the creation of jobs, and the preservation of employment in the countryside without pooling the resources of agricultural producers is mostly impossible. According to the authors of this research, the development of the cooperative movement is a guarantee for the stable development of the village, the involvement of the

A. R. Mazhitova (&) . B. R. Yuldybaev . I. Z. Samsitdinov Bashkir Cooperative Institute (Branch) of the Russian University of Cooperation, Ufa, Russia e-mail: [email protected] L. G. Khusnutdinova Moscow Polytechnic University, Moscow, Russia E. Z. Zulkarnaeva Ufa State Petroleum Technological University, Ufa, Russia

Keywords

..

Cooperation Agriculture

Legislative base Economy

.

Entrepreneurship

.

JEL Classification

Q13

1

. . . . . . . . Q18

J 68

J 88

L29

L 31

O13

K20

Z1

Introduction

According to the Bashkortostanstat, there are 895 municipalities in the republic: 9 urban districts, 54 municipal districts, 14 urban settlements, and 818 rural settlements (https:// bashstat.gks.ru/municipal_statistics). Considering the level of economic and socio-cultural development, the employment rate of the able-bodied population in the economy, and the quality of life, the region is divided into seven economic zones. M. N. Isyanbayev indicates that the central, southern, western, and northwestern economic sub-regions are highly developed in socio-economic terms (Isyanbayev & Baigildina, 2011). Further, the author notes that developed and relatively prosperous municipalities of the republic are represented mainly in the central, southern, western, and northwestern sub-regions; these municipalities are characterized by relatively high efficiency of socio-economic development and employment of the economically active population (Isyanbayev & Baigildina, 2011). One of the key conditions for the sustainable development of the regional economy and improving its well-being is the “development of small and medium-sized businesses” (https://docs.cntd.ru/document/550258514).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_19

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2

A. R. Mazhitova et al.

Materials and Methods

The results of studies of the socio-economic situation of Russian regions demonstrate that the leading position is retained by the regions where powerful industrial complexes and financial opportunities are concentrated. The agricultural regions of Russia with the raw material orientation of production occupy “the last lines, with a low degree of industrialization and a predominance of the agricultural sector” (https://rmsp.nalog.ru/index.html). At the end of 2020, Bashkortostan ranked 17 in terms of socio-economic development among the regions of Russia. The top ten leaders included neighboring regions—the Republic of Tatarstan (5th place) and the Sverdlovsk Region (7th place) (https://riarating.ru/regions/20210531/630201367.html). If the integral indicators compare with 2019, there is a negative trend. Stimulation of economic activity and the population’s involvement in entrepreneurial activity is possible with the modernization of the region’s economic structure. The primary tool aimed at developing the economic modernization of the region is the state program “Development and support of small and medium-sized businesses in the Republic of Bashkortostan.” This program defines the main tasks: “to increase the share of small and medium-sized businesses in the gross regional product; increase the contribution of entrepreneurship to the socio-economic development of the republic; increase the share of the population of the Republic of Bashkortostan employed in the area of entrepreneurship” (https://docs.cntd.ru/document/550258514). One of the main regional projects is “Acceleration of small and medium-sized businesses” (https://docs.cntd.ru/ document/553377759). The tasks set by state authorities include increasing entrepreneurial activity, involving rural residents in vigorous economic activity, and, as a result, ensuring effective employment that replenishes budgets of various levels with taxes. It is necessary to research and develop a set of measures to expand the network of small businesses in various spheres of life. One of the effective measures is the Decree of the Head of the Republic of Bashkortostan “On strategic directions of socio-economic development of the Republic of Bashkortostan until 2024” (September 23, 2019 No. UG-310) (https:// economy.bashkortostan.ru/documents/active/298575/). This decree highlights the following as guidelines (https:// economy.bashkortostan.ru/documents/active/298575/): • To encourage entrepreneurial activity and ensure an increase in the number of small and medium enterprises; • To increase the number of small and medium enterprises to 170 thousand units; • To create 500 agricultural cooperatives; • To involve twenty thousand people in entrepreneurial activities in the area of agriculture.

The solution of these tasks is possible because Bashkortostan has the necessary production and human potential: more than 600 thousand personal subsidiary farms, more than 4.5 thousand peasant (farmer) enterprises, more than 1 thousand SEC, LLC, and STP, and more than 1.4 thousand horticultural associations. Programs have been developed for the restructuring of agro-industrial production to ensure the effective use of labor resources, raw materials, and production potential of municipal districts. However, indicators of economic and social development of the republic’s municipalities are highly differentiated. Accelerated economic development of lagging cities and municipal districts is possible with the efficient use of local natural, economic, as well as labor resources. Aligning the levels of economic and social development of the regions is feasible with balanced development of economic sectors and material production. The development of the social infrastructure of rural areas, the creation of jobs, and the preservation of employment in the countryside without pooling the resources of agricultural producers is almost impossible (http://www.consultant.ru/document/ cons_doc_LAW_64930/). Cooperation involves any form of combining production potential, labor resources, and business ideas. The cooperation mechanism is a necessary element for the stable development of the village. The modernization of the economic structure of the region requires active state support and protection from competition from external goods. The revival of the cooperative way of organizing activities is the requirement of time and a reliable way to produce “native” and consumer goods. Therefore, the authors believe that it is necessary to strengthen targeted work on the organization of small and medium-sized enterprises in the area of agriculture, engaged in processing and service activities, as well as to involve the population, providing them with equal conditions for participation in the economic activities of the agro-industrial complex and social security. According to academician Isyanbayev, “The predominantly raw material orientation of the economy of depressed regions dooms it to unsustainable functioning with adverse consequences for the financial position of enterprises and their provision with budgetary funds” (Isyanbayev & Baigildina, 2011).

3

Results

Purposeful work is underway in Bashkortostan to develop the cooperative movement (https://docs.cntd.ru/document/ 446662573). According to the Ministry of Agriculture of the Republic of Bashkortostan, the number of agricultural consumer cooperatives (ACC) has reached 382 units. Between

Development of the Cooperative Movement in the Republic of Bashkortostan: Problems and Prospects 2005

2010

2015

2017

2018

2019

2020

10746

11013

314

366

93

2021 12297

8874 7387

730 1

2756 19

3904 37

82

Number of ACCs, units

196

382

Number of shareholders, people

Fig. 1 Number of agricultural consumer cooperatives and shareholders, units. Source Compiled by the authors based on Unified register of small and medium-sized businesses (https://rmsp.nalog.ru/index.html)

2005 and 2021, the number of citizens involved in entrepreneurial activities in the area of agriculture increased 17 times (Fig. 1). The main type of economic activity of 170 cooperatives is a mixed type of agriculture. There are 103 processing ACC, 83 supply and marketing ACC, 14 service ACC, 11 credit ACC, and one horticultural ACC (https://rmsp.nalog.ru/ index.html). The significance of the cooperative sector in the regional economy is confirmed by statistical data. The income of agricultural consumer cooperatives (except for credit cooperatives) and the number of employees have a positive trend. These figures have also doubled from 2018 to 2020. The driving forces behind the development of the ACC are information and consulting, as well as state financial assistance to small and medium-sized enterprises in the area of agriculture. A sharp increase in the ACC and its members occurred in 2018–2019. Explosive growth was a response to the project initiated by the Ministry of Agriculture of the Republic of Bashkortostan “Income-generating projects (IGP) based on civil initiatives to unite in an agricultural consumer cooperative” (https://docs.cntd.ru/document/550124808). The income-generating project (IGP) is unique in terms of solving economic and social problems, including the following: • Creating a favorable investment climate in the region; • Modernizing the economy of municipal districts and urban settlements; • Providing financial and informational assistance to small and medium-sized businesses in the area of the agro-industrial complex with a focus on processing activities; • Encouraging entrepreneurial activity of enterprising rural residents; • Creating networks of small and medium-sized enterprises in rural areas using local agricultural raw materials and involving labor potential;

• Introducing innovative technologies, using advanced agricultural machinery and equipment in small and medium-sized enterprises because this is a chance to produce competitive products and find their niche in the market. Practice shows that agriculture cannot develop without financial support. As a result of the DGP competition, 222 ACCs received state financial support in 2018–2019 in the amount of 600 million rubles in the following areas of the agro-industrial complex (Table 1). Between 2019 and 2021, the total amount of subsidies amounted to 2608 million rubles. The largest amount of 720 million rubles was aimed at supporting agricultural producers, conducting family business for more than two years. Another 693 million rubles were allocated for novice farmers. Additionally, 600 million rubles were provided for the organization of small enterprises under the IGP projects (http://www.consultant.ru/document/cons_doc_LAW_ 64930/). Every year, budgetary funds in the amount of one billion rubles are provided to support farmers. Starting from 2021, financial support for the “Beginning Farmer” project has been discontinued due to the fact that the “Agrostartup” project is similar to it. Both programs are aimed at the rational use of labor and production potential, the regulation of labor migration policy (the return of labor from the North and large federal cities working on a rotational basis), and the involvement of the rural population in active entrepreneurial activity (https:// docs.cntd.ru/document/553283035). The regional project “Acceleration of small and medium-sized businesses” significantly expanded the list of measures of state support for cooperatives, allocating subsidies for the purchase of property: “agricultural machinery, specialized transport, equipment for organizing storage, processing, packaging, labeling, transportation, and sale of agricultural products and mobile trading facilities, as well as

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Table 1 The main directions of the IGP projects in 2018–2019

Industries of livestock and crop production, including the sale of agricultural products

Year/Number of projects 2018

2019

1.

Milk and dairy products

35

27

2.

Meat and meat products, including deli meats

32

47

3.

Grain and other crops, including the purchase of mills for the production of flour and equipment for pressing oils

14

13

4.

Vegetables, fruits, and berries

11

15

5.

Trade-in agricultural products (car shops, specialized trailers)

8

1

6.

Production infrastructure of the agro-industrial complex, including points for receiving agricultural products and providing services

7

0

7.

Honey and bee products

4

1

8.

Medicinal and wild herbs

2

1

9.

Wool and raw materials from the skin of farm animals

2

1

10.

Fish and fish products

1

0

In total

116

106

Source Compiled by the authors

for the purchase of cattle and reimbursement of part of the costs of the total amount of proceeds of members of the ACC for the purchase of agricultural products” (https://docs. cntd.ru/document/553377759). Thus, agricultural consumer cooperatives spent 13.6 million rubles in 2019 and 51 million rubles in 2020. In 2021, the ACC took the active position, and the amount increased to 155 million rubles. The measures taken are the basis for raising the well-being of the population and the source of the revival of agriculture. Considering that most ACCs are created based on old agricultural enterprises (former state farms and collective farms), purposeful work is required to build, reconstruct, and modernize the material and technical base of enterprises. For this purpose, the region annually allocates 100 million rubles of subsidies to strengthen the material and technical base of the ACC. Between 2015 and 2017, the allocated amount was not fully disbursed. With the help of the information and consulting support of the ACC in 2017, the number of ACCs that received financial assistance increased (Fig. 2). All programs involve the co-financing of projects (own contribution) by the ACC and its members—this is an integral element of its implementation. However, in the process of organizing economic activities, ACCs face a serious problem of lack of finance. The effective functioning of rural cooperatives is possible only if the participants determine a common goal and mobilize the production potential and labor resources of entrepreneurs and the population leading private subsidiary plots. Practice shows that agricultural producers are in dire need of reconstruction and technical re-equipment of their production,

initiative and creative managers in management, specialists in accounting, financial and legal support of enterprises, and marketing. The problem area remains the presence of significant gaps in the legislation on agricultural cooperation, unconscious understanding of the essence of relationships within agricultural consumer cooperative, the distribution of profitability, and lack of understanding of subsidiary liability by cooperative members. The existing problems limit the possibility of organizing various forms of agricultural consumer supply and marketing, credit, financial, and processing cooperatives. It is economically expedient in the structure of newly created cooperatives to create industries that produce finished products based on more complete and comprehensive processing of agricultural raw materials. Experience shows that in the area of agro-industrial complex, it is necessary to overcome the raw and semi-product orientation of production and accelerate the development of the processing industry that produces finished products. An increase in economic activity and initiative of rural residents and positive transformation of the area is possible with interconnected work with local authorities. In this regard, it is necessary to provide information support to the authorities at the level of administrations of municipal districts and rural or urban settlements on the issues of registration of land plots and premises for organizing production, improving infrastructure (access roads, work related to electrical installation, water, heat, and gas supply, etc.), and marketing and sales of products of members of the ACC and entrepreneurs of small and medium forms of management.

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Fig. 2 The amount of financial assistance for the ACC, million rubles. Source Compiled by the authors

The authors consider that it is necessary to improve the legal framework to develop rural cooperation. To create a more favorable climate in the region, ensure effective economic activity of rural cooperatives, and increase the responsibility of legislative and administrative structures, the necessary measures are as follows: • Availability of short-term and investment credit resources. High lending rates, “bureaucratic” red tape in the process of obtaining borrowed funds from financial institutions to implement business ideas, and limited understanding of the specifics of the operation of economic ACCs and schedules are also limiting factors while drawing up debt repayment. “Satisfying the material and other needs of members” is the main goal of the ACC (http://www.consultant.ru/document/cons_doc_LAW_ 8572/); • Improvement of taxation mechanisms. The lack of awareness of the representatives of the ACC about the tax benefits, which they can use, hinders the development of cooperation. The authors believe that the Federal law “On the development of agriculture” has to work out measures to ensure tax preferences for small businesses and ACC (http://www. consultant.ru/document/cons_doc_LAW_64930/). Part 2 of Article 346.8 of the Tax Code of the Russian Federation provides the following (http://www.consultant. ru/document/cons_doc_LAW_28165/f00416fee07ec8a9d67 3f139cc19e296d52474b3/): • Zero income tax rates in respect of profits received by agricultural consumer cooperatives from transactions with members and transactions directly related to them;

• The possibility of calculating the VAT of ACC on financial transactions with cooperative members who pay these taxes and transactions directly related to them. In the Land Code of the Russian Federation, it is necessary to amend Articles 39.3 and 39.6 (http://www. consultant.ru/document/cons_doc_LAW_33773/). They should provide for the transfer without holding auctions of land for ownership or lease to agricultural cooperatives formed in accordance with the Federal law “On agricultural cooperation” for the construction and operation by cooperatives of buildings and premises with a specific purpose (https://docs.cntd.ru/document/553283035, http://www. consultant.ru/document/cons_doc_LAW_8572/). In the Federal law “On the basics of state regulation of trading activities in the Russian Federation,” it is necessary to fix the obligation of federal and republican trade organizations to ensure that at least 30% of the products represented on shelves are produced by local agricultural producers (http://www.consultant.ru/document/cons_doc_ LAW_95629/). At the level of municipalities in the region, it is necessary to provide for measures to locate stationary and mobile retail facilities of the ACC and small and medium-sized agricultural producers in places, considering the intensity of customer flows. Nowadays, cooperatives often face the following problems: • Lack of a training system for managers of agricultural cooperatives; • Insufficient level of structural modernization of agriculture, providing scientific and technological progress, production of competitive end products;

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• Lack of systemic work on information and consulting and explanatory and motivating work at the level of municipalities.

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Conclusion

Thus, the authors consider that the cooperative movement must be supported at all levels of municipalities of the republic with the provision of state financial assistance, information, and consulting support. The analysis of the socio-economic indicators of the ACC shows the effectiveness of rural cooperatives—a two-fold increase in the income of members of the cooperative involved in economic activities and the number of employees. Cooperation is a pledge of the following: • Stable functioning of the regional economy; • Development of entrepreneurship in the area of agriculture, producing competitive shelf products, or providing quality service; • Involvement of the population in entrepreneurial activity. Practice demonstrates that rural residents live in close communication with each other. Thus, they understand collective work and actively participate in economic activities. In general, the cooperative ideology and its economic viability are explained by the fact that cooperation is aimed at the social and economic improvement of society.

References Federal Tax Service of the Russian Federation (n.d.). Unified register of small and medium-sized businesses. Retrieved from https://rmsp. nalog.ru/index.html. Accessed October 3, 2021. Government of the Republic of Bashkortostan. (2018a). Resolution “On the state program ‘Development and support of small and medium-sized businesses in the Republic of Bashkortostan’” (November 14, 2018a No. 548). Ufa, Russia. Retrieved from https://docs.cntd.ru/document/550258514. Accessed October 2, 2021. Government of the Republic of Bashkortostan. (2018b). Resolution “On approval of the procedure for providing grants from the budget of the Republic of Bashkortostan for the development of agricultural consumer cooperatives for the implementation of income-generating projects based on civil initiatives to unite in an

agricultural consumer cooperative” (June 8, 2018b No. 254). Ufa, Russia. Retrieved from https://docs.cntd.ru/document/550124808. Accessed October 2, 2021. Government of the Republic of Bashkortostan. (2020). Order “On approval of the passport of the regional project “Acceleration of small and medium-sized businesses” (April 30, 2020 No. 433-r). Ufa, Russia. Retrieved from https://docs.cntd.ru/document/ 553377759. Accessed October 2, 2021. Head of the Republic of Bashkortostan. (2018). Decree “On approval of the concept of development of agricultural consumer cooperation in the republic of Bashkortostan for the period 2018–2020” (March 30, 2018 No. UG-44). Ufa, Russia. Retrieved from https://docs.cntd.ru/ document/446662573. Accessed October 2, 2021. Head of the Republic of Bashkortostan. (2019). Decree “On strategic directions of socio-economic development of the Republic of Bashkortostan until 2024” (September 23, 2019 No. UG-310). Ufa, Russia. Retrieved from https://economy.bashkortostan.ru/ documents/active/298575/. Accessed October 3, 2021. Isyanbayev, M. N., & Baigildina, A. U. (2011). Modernization of the structure of the economy of the region and employment. Gilem. Republic of Bashkortostan. (2019). Resolution “On approval of the procedures for granting subsidies from the budget of the Republic of Bashkortostan within the framework of the implementation of the regional project ‘Creation of a system of support for farmers and development of rural cooperation’” (April 30, 2019 No. 267). Ufa, Russia. Retrieved from https://docs.cntd.ru/document/553283035. Accessed October 2, 2021. Russian Federation. (1995). Federal Law “On agricultural cooperation” (December 8, 1995 No. 193-FZ). Moscow, Russia. Retrieved from http://www.consultant.ru/document/cons_doc_LAW_8572/. Accessed October 2, 2021. Russian Federation. (2000). The Tax Code of the Russian Federation (Part two) (August 5, 2000 No. 117-FZ, as amended March 9, 2022). Moscow, Russia. Retrieved from http://www.consultant.ru/ document/cons_doc_LAW_28165/f00416fee07ec8a9d673f139cc19 e296d52474b3/. Accessed October 2, 2021. Russian Federation. (2001). The Land Code of the Russian Federation (October 25, 2001 No. 136-FZ, as amended February 16, 2022). Moscow, Russia. Retrieved from http://www.consultant.ru/ document/cons_doc_LAW_33773/. Accessed October 2, 2021. Russian Federation. (2006). Federal Law “On the development of agriculture” (December 29, 2006 No. 264-FZ). Moscow, Russia. Retrieved from http://www.consultant.ru/document/cons_doc_ LAW_64930/. Accessed October 2, 2021. Russian Federation. (2009). Federal Law “On the basics of state regulation of trading activities in the Russian Federation” (December 28, 2009 No. 381-FZ). Moscow, Russia. Retrieved from http:// www.consultant.ru/document/cons_doc_LAW_95629/. Accessed October 2, 2021. RIA Rating. (2021, April 31). Rating of the socio-economic situation of the regions, according to the results of 2020. Retrieved from https:// riarating.ru/regions/20210531/630201367.html. Accessed October 3, 2021. Rosstat Regional Office of Republic of Bashkortostan. (n.d.). Municipal statistics. Retrieved from https://bashstat.gks.ru/municipal_statistics. Accessed October 2, 2021.

Supervision and Control Over the Investigation of Crimes in the Field of Entrepreneurial Activity Oxana V. Kravtsova , Irina V. Blinova-Sychkar , Sergey A. Dmitrienko , Vladislav V. Egorov , and Roza V. Chernomorets

Abstract

The article attempts to analyze the supervision and control over the investigation of crimes in the field of entrepreneurial activity. Having studied the data of the Investigative Committee, the Ministry of Internal Affairs and the FSB of the Russian Federation on economic articles over the past year, the team of authors came to the conclusion that the number of such cases is growing. In addition, it was revealed that in the practice of investigative bodies, the trend towards groundless prosecution of business not only continues, but it is also increasing. In this regard, the steps taken by the state to change the approach to the initiation and investigation of business cases by law enforcement officers were analyzed. Keywords

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Supervision and control Investigation of crimes Entrepreneurial activity Procuratorial supervision Operational-investigative measures JEL Classification

K 49

1

Introduction

Forecasted indicators of damage to small and medium-sized enterprises caused due to the difficult conditions of the spread of COVID‒19, according to Alexander Kalinin,

O. V. Kravtsova (&) . I. V. Blinova-Sychkar . S. A. Dmitrienko . V. V. Egorov . R. V. Chernomorets Volgograd Cooperative Institute (Branch) Russian University of Cooperation, Volgograd, Russia e-mail: [email protected]

all-Russian non-governmental organization of small and medium-sized businesses OPORA RUSSIA, will amount to at least 1 trillion rubles by the end of 2020 (https://iz.ru/ 1072904/ekaterina-vinogradova/iz-za-pandemii-malyibiznes-uidet-v-minus-na-trillion-rublei). Major part of the losses, at the same time, will fall on the services, trade and catering sectors. Since this sector of the economy, in which millions of people work in our country, turned out to be the most affected by the spread of the coronavirus, the Cabinet of Ministers of the Russian Federation sees it as its task to continue supporting small businesses. Throughout the coming 2021, small businesses in Russia will be exempt from numerous inspections. Russia's President Vladimir Putin has instructed the Russian Government to extend the moratorium on routine inspections of small businesses and individual entrepreneurs until the end of 2021. The measures of such support included: a moratorium on bankruptcy; tax holidays; deferred payments; subsidies and soft loans to support work processes and ensure employment. It is obvious that in the current conditions, measures to support enterprises and entrepreneurs should be constantly adjusted. Normalization of the support mechanism, which includes various means and methods, should first of all be done at the legal level in order to ensure a system of operational, but at the same time long-term measures. These measures include, among others, measures to strengthen supervision and control over the investigation of crimes in the field of business. The number of initiated criminal cases related to the business sector has increased by more than a third over the year. This circumstance proves that, despite the fact that earlier President Vladimir Putin announced the elimination of the risk for honest business to fall “under the article”, in the practice of investigative bodies, the tendency to unjustified prosecution of business not only continues, but also increases.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_20

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Boris Titov, the Commissioner for the Protection of the rights of entrepreneurs under the President of Russia, outlined the essence of his “ambivalent feelings” in relation to the situation with the criminal prosecution of businessmen. He focused on the data of the Investigative Committee, the Ministry of Internal Affairs and the FSB, showing that in 2019, 317,627 crimes were registered in the sphere of economic activity, which is 37% more than in the previous year. Meanwhile, 80% of cases were initiated under Articles 159-159.6 of the Criminal Code of the Russian Federation, which allows to qualify any non-fulfillment of contractual obligations as fraud (https://www.vedomosti.ru/politics/ articles/2020/02/19/823451-kolichestvo-ugolovnih). For 7 months of 2021, the Ministry of Internal Affairs registered a 10% increase in the number of crimes in the economic sphere compared to the same period in 2020 (https://pravo.ru/news/234052/?desc_news_2).

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Methodology

Russian President Vladimir Putin in his message to the Federal Assembly in February 2019 said: “Honest businesses should not be constantly afraid of being subjected to lawsuits and constantly experience the risk of criminal or even administrative prosecution” (http://www.consultant.ru/ document/cons_doc_LAW_318543/). Within the framework of this issue, He noted that the situation in this problem area, unfortunately, has not changed much, since almost half of the cases (45%) initiated against entrepreneurs have not reached court. According to the president, the cases “were opened in a slipshod manner or under some unclear pretext” (http://www.consultant.ru/document/cons_doc_LAW_ 318543/). In this regard, the state has taken steps to change the approach to the approach to the investigation of criminal proceedings of economic crimes by law enforcement officers. In particular, the Decree of the Prosecutor General’s Office of Russia No. 387/49, the Ministry of Internal Affairs of Russia No. 1/7985, the IC of Russia No. 1/218, the FSB of Russia No. 23, the Federal Customs Service of Russia No. 266-r “On strengthening prosecutor’s supervision and Departmental Control over bodies carrying out operational search activities, inquiry and preliminary investigation on criminal cases on crimes in the sphere of entrepreneurial activity” (hereinafter—the Instruction). The subject of regulation of the said document was the relations connected to criminal prosecution under Part 1.1 of Article 108 of the Code of Criminal Procedure of the Russian Federation. It takes into account the position of the Supreme Court of the Russian Federation, set out in its

Plenum Resolution No. 41 dated December 19, 2013 “About practice of application by courts of the legislation on measures of restraint in the form of detention, house arrest, pledge and prohibition of certain actions”. Due to the exceptional importance of the object of legal regulation and, along with this, the severity of the legal leverage on business enterprises that are involved in the criminal law sphere, the document draws attention to the observance of the rights of entrepreneurs when performing operational investigative activities by law enforcement agencies. Based on the Instructions, the analysis of law enforcement practice confirms the increase in the number of violations of the legislation of the Russian Federation in the identification and investigation of crimes that are committed in the sphere of entrepreneurial activities. Accordingly, the Deputy Minister of Internal Affairs, the heads of the FSB, the FCS, the heads of departments and operational investigative bodies (including territorial ones) were requested to carry out a number of necessary additional measures in order to organize proper departmental control. Thus, when analyzing the motivation of operational investigative measures in relation to business entities, it is required to adhere to the inadmissibility of intervention in civil legal relations of economic entities, and when implementing such measures, unlawful escalation of the subject of verification should not be allowed. Since the decision to start operational search activities, for which departmental permission is necessary, requires justification. In addition, it is allowed for employees engaged in operational investigative activities to seize electronic media, original documents and materials that are necessary to carry out economic activities, as well as when they are examined during the verification of a statement (message) about a crime or as part of criminal investigation. In all other cases, copies of them should be made and subsequently attached to the materials obtained in the course of operational search activities. In the process of seizing the originals of electronic media, documents, materials, their copies must be transferred to the owner. It is unacceptable to seize items and documents that are not related to the subject of verification (with the exception of items, substances and products, the free sale of which is associated with a ban or restriction in circulation in the absence of a special permit for them). The Instruction notes: “In each case, it should be assumed that the seizure of the originals of the documents of title and other documents necessary for the implementation of economic activity entails additional costs, and therefore exclude the facts of the seizure of items and documents not related to verification, items used for carrying on the business and legally owned by persons, who are not suspects, accused persons or persons legally liable for their actions in a criminal case, if this is not required in order to ensure their

Supervision and Control Over the Investigation of Crimes in the Field of Entrepreneurial Activity

safety and conduct investigative actions with them, as well as to prevent their further use for committing crimes” (http:// www.consultant.ru/document/cons_doc_LAW_362618/). In addition, law enforcement agencies are recommended to involve representatives of state control (supervision) bodies on a larger scale as specialists in procedural inspections and investigation of criminal cases in the field of entrepreneurial activity. This concerns the collection and preparation of materials that are required for the appointment and conduct of expert research. The Instruction notes that through procedural control measures, it is necessary to prevent the facts of conducting unjustified inspections against entrepreneurs, including unreasonably long retention of seized property. At the same time, in the case of unjustified and illegal interference in business activities, it is not allowed to initiate criminal cases or extend the period of verification of a crime report to 30 days due to the absence of grounds for this.

3

Results

Checking the legality, validity and motivation of procedural decisions on the initiation of criminal cases against entrepreneurs, it is necessary to take into account the existence of a civil dispute between economic entities, its content and specifics, as well as the circumstances that are established by a verdict or other court decision that has entered into force. It is important to counteract the initiation of the choice of a preventive measure against entrepreneurs in the commission of a crime in the field of entrepreneurial activity in the form of detention in the absence of circumstances in accordance with paragraphs 1-4 of Part 1 of Article 108 of the Code of Criminal Procedure of the Russian Federation. At the same time, it is advisable for the heads of the investigation bodies to approach with full responsibility to the issue of giving the investigator permission to initiate a petition for procedural actions before the court on the basis of a court decision. The instruction focuses primarily on the observance of the rights of business entities suspected or accused of committing crimes in the field of entrepreneurship, and primarily the right to protection. However, it should be noted that the refusal of these persons to be represented by a lawyer at any time in criminal proceedings should be purely voluntary and is not compulsory, and if there is a real possibility, requires the participation of a lawyer in a criminal case as a defender. In order to increase the effectiveness of prosecutorial supervision, employees of the prosecutor’s office are charged with guaranteeing systematic supervision over the legality of operational investigative measures against business entities. The most experienced prosecutors authorized

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within the necessary competence will be engaged in checking the records of proceedings and operational and official documents in this area. Thus, one of the most important areas of supervisory activity, as emphasized in the analyzed document, is the verification of materials that serve as the basis for conducting such public operational search activities as the inspection of premises, buildings, structures, terrain areas, vehicles in relation to business entities. Under these circumstances, it should be borne in mind that the relevant resolution is approved by an authorized official of the body conducting operational investigative activities and includes detailed information about the object under examination and sufficient grounds for carrying out the designated event. In all cases of conducting a public examination, and especially at night, it is required of the prosecutorial staff carrying out the appropriate supervisory checks to give a comprehensive assessment of the legality and validity of the actions of officials. If the process of conducting operational investigative measures is accompanied by the disclosure of facts of violation of the procedure provided for by law, then the prosecutor’s staff is required to immediately interrupt them, and if necessary, take concrete measures to appeal against court decisions on the authorization of such measures. At the same time, the prosecutor’s offices are obliged to collect and detail information about the violation of the rights of entrepreneurs when checking their activities and take note that the repeated conduct by the bodies of inquiry of operational search measures against the same economic entities (this also applies to persons affiliated with them) may indicate the illegal nature of their actions. Prosecutors should to acquaint themselves with the content of materials that serve as the basis for initiating criminal cases on crimes in the field of entrepreneurial activity, and draw up conclusions on the legality (illegality) of the procedural decision taken. The very fact of detecting the illegal initiation of a case and the existence of sufficient data indicating the presence of signs of a crime on the part of officials of the preliminary investigation body is the basis for initiating a procedural check against the latter. One of the main tasks of the Prosecutor's office in the sphere of supervision under discussion should be considered the need to assess the legality of decisions to designate a person as a suspect or accused, to impose such a preventive measure as the custody of a suspect (in particular a business entity), to provide rehabilitating grounds for refusal to institute criminal proceedings. In the event that there are facts of formal charges against the accused in the absence of evidence, including with a more serious qualification of the crime, the measures of the prosecutor’s response should be taken urgently. And when receiving information about criminal cases where the

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investigation period has been extended for more than 12 months, prosecutors should send it monthly to the relevant specialized departments of the Prosecutor General’s Office. Analyzing the Instruction under discussion, in general, it is impossible not to welcome the situation when such serious law enforcement agencies confirmed the existing unresolved problem and declared their responsibility and desire to take enhanced measures to ensure the rule of law in the field of operational investigative activities and criminal prosecution against business entities. It is quite obvious that the measures specified in this document represent a direct obligation of these bodies, and it is appropriate to point out here that they act not only in relation to entrepreneurs, but also apply equally to all subjects of law. Undoubtedly, the assurance and willingness to act is undoubtedly the right step in the right direction. The most important thing is that they would become a real guide to action, and not simple statements.

4

Conclusion

It seems that the situation can be changed for the better only by strengthening the effectiveness of judicial control, in the process of which challenging the actions and decisions of investigators and bodies engaged in operational investigative activities will become an effective way of independent control. However, based on this context, we have to state that this Instruction has an incorrect concept in the form of the return of the criminal case for further investigation due to the insufficiency or inadmissibility of evidence of guilt, as well as incorrect qualifications. And, consequently, such situations must inevitably be considered as irregularities in the activities of the supervising prosecutor. The authors’ position is as follows: the law enforcement system will change for the better only on the assumption that the judges are the best lawyers, and the situation in case the court rejects the charges cannot be considered as an a priori flaw in the investigation. At the same time, despite the measures already taken, the state imposes requirements on law enforcement officers so that they would be more attentive and principled in identifying violations during the investigation of criminal cases initiated against entrepreneurs. The motivation for such a requirement is due to statistics—the number of illegal initiation of cases against entrepreneurs does not decrease, while the content of the charges is often very questionable, often containing an insufficient, contradictory system of evidence. It is important for entrepreneurs that cases are considered within the framework of a fair and independent judicial system, since only such a system is capable of resisting

illegal accusations. However, this did not happen, the activity of the courts could not generally have any impact on the situation in the field of protecting the rights of entrepreneurs from groundless institution of criminal proceedings. As a result, another explanatory act was created and adopted. This document more fully specified the actions of officials who are involved in the course of the proceedings at the stage of preliminary investigation in a criminal case in the field of entrepreneurship. It should be noted that this document does not contain new provisions that could be applied to protect the rights of entrepreneurs, it only includes explanations about what officials should do during this entire period of time. However, it is unlikely that before this Instruction, officials had no idea how to work on such criminal cases and what to focus on in their activities. At the moment, all previously taken measures have failed to improve the situation, therefore, it can be stated that this explanatory act will not be able to radically affect the protection of business from unjustified criminal prosecution. As a result, internal documents will add links pointing to individual paragraphs of this document, registers of criminal cases will be created, the frequency of control measures for compliance with deadlines will increase, the number of interdepartmental meetings and other events provided for by the instructions under consideration will significantly increase. It should be noted that the main problem cannot be solved by Instructions. The solution to the problem, according to the authors, is not in the desire to adopt additional relevant instructions, but in building a system of norms on the basis of which the law enforcement officer would make the most important decisions without any compromise. In parallel with this, it is necessary to carry out consistent methodological explanatory work and create significant judicial practice of the highest standards of evidence and their correct application.

References Directions of the Prosecutor General of Russia N 387/49, Russian Interior Ministry N 1/7985, the IC of Russia N 1/218, the FSB of Russia N 23, the FCS of Russia N 266-r from 23.07.2020 “On strengthening of prosecutorial supervision and departmental control over bodies engaged in operational and investigative activities, the inquiry and preliminary investigation into criminal cases involving crimes in the field of business”. http://www.consultant.ru/document/ cons_doc_LAW_362618/. Data accessed: October 10, 2021. Economic crime increased by 10% in 2021 (2021). Pravo.ru. https:// pravo.ru/news/234052/?desc_news_2. Data accessed: September 22, 2021. Kornya, A., Bocharova, S., & Nikolsky, A. (2020). The number of criminal cases against businesses has increased dramatically. Newspaper Vedomosti, 20 February. https://www.vedomosti. ru/politics/articles/2020/02/19/823451-kolichestvo-ugolovnih. Data accessed: September 21, 2021.

Supervision and Control Over the Investigation of Crimes in the Field of Entrepreneurial Activity Message of the President of the Russian Federation to the Federal Assembly dated 20.02.2019. http://www.consultant.ru/document/ cons_doc_LAW_318543/. Data accessed: October 02, 2021. Vinogradova, E. (2020). Due to the pandemic, small businesses will lose a trillion rubles. Newspaper Izvestia, No. 159, 21 October.

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URL: https://iz.ru/1072904/ekaterina-vinogradova/iz-za-pandemiimalyi-biznes-uidet-v-minus-na-trillion-rublei. Data accessed: September 20, 2021.

Countering Aggressive Tax Planning Tatyana V. Bodrova , Elvira N. Borisova , Elena V. Zubareva , Elena V. Ivanova , and Natalia B. Morozova

Abstract

Keywords

The issue of aggressive tax policy and the opportunity to use international experience in combating aggressive methods, adapting them to business realities, are highly relevant to the Russian Federation. The authors explain the role of tax planning in the life of the enterprise, where the rational desire of taxpayers to reduce the tax burden determines the need for tax planning, while the government desires to prevent the reduction of the tax burden, sometimes using aggressive methods. While the optimization of tax payments of the organization is a reasonable method to improve the efficiency of the economic entity in the global and Russian practice of tax planning, there is a high risk of an aggressive tax policy. Countering aggressive tax planning schemes is studied at the level of individual economies and internationally, including through the development of joint plans and measures in international economic organizations. Countering aggressive tax planning is one of the most pressing tasks for the Russian Federation and the world. The creation of organizational mechanisms requires a competent scientific approach to this issue. The authors propose organizational mechanisms to improve counteraction to aggressive tax planning.

Tax administration Aggressive planning Tax policy Financial management Transparent business

T. V. Bodrova (&) . E. N. Borisova . E. V. Zubareva . N. B. Morozova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] E. N. Borisova e-mail: [email protected] E. V. Zubareva e-mail: [email protected] N. B. Morozova e-mail: [email protected] E. V. Ivanova Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected]

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JEL Classification

H26

1

. . D81

M48

Introduction

Aggressive tax planning includes planning schemes of illegal tax evasion and unacceptable tax planning methods, the main purpose of which is improper minimization of the tax burden. Manipulation of the number of tax deductions to the budget creates the preconditions for minimizing the costs of the organization by reducing the tax burden. However, when planning methods are used rigidly, there is a risk of aggressive tax planning.

2

Methodology

The desire of businesses to implement measures of aggressive tax planning threatens the functioning of the tax system at the state and market levels, both on the scale of one industry, the whole country, and even at the international level. In the international arena, the main institution for the study and international exchange of experience in the field of aggressive tax planning is the OECD, which, as of May 2021, consisted of 38 countries. This economic organization makes up most of the international instruments in the field of countering tax violations, pioneering the systemic impact on tax planning of the OECD members, which account for about 60% of world GDP. Unfortunately, the Russian Federation is not a member of the organization. However,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_21

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Russia can reevaluate the international experience, considering the realities of its economic space. Research has shown that the term aggressive tax planning first appeared in a 2008 OECD report. As noted in economic research (Cotrut, 2015; Jain et al., 2013; Kaurova et al., 2013, Piantavigna, 2017; Yang & Metallo, 2018), aggressive tax planning includes redundant, from the governmental point of view, mechanisms of management of the tax policy of the organization, leading to such a reduction of the tax burden, which is interpreted as unreasonable and often illegal by the state. In some cases, aggressive tax planning may be punishable under criminal law. In its publications (OECD, 2013, 2021), the OECD notes the key role in the implementation of aggressive tax planning of intermediaries: financial institutions, investment and insurance companies, law and accounting firms, banks, tax advisers, and other market actors that create proposals and directly support the implementation of aggressive tax planning schemes. The methods of combating aggressive tax planning vary around the world. However, the need for control in this area cannot be underestimated because this type of planning threatens the economy of a country and the world. Studies show the following problems and consequences of aggressive tax planning at the state level: • Reduction of state budget revenues; • Violation of competition; • Distortion of investment decisions. According to the OECD estimates, the results of aggressive tax planning around the world range from $1.7 trillion to $11.5 trillion, and tax losses to the budget of the USA equal $100 billion annually (OECD, 2015). Council Directive (EU) 2016/1164 of July 12, 2016, established that the use of hybrid discrepancies and aggressive tax planning schemes lead to the loss of tax revenues to the budgets of OECD member countries. This loss equals 0.23% of GDP in OECD countries and 0.84% of GDP in the remaining countries. The use of aggressive tax planning schemes by multinational corporations allows them to pay only up to 5% of taxes, compared with tax rates for small businesses—up to 20%–30% (Council of the European Union, 2016). This generates unfair competition, harms the market, and does not allow for an effective investment policy. Thus, we believe that such losses in terms of the GDP of Russia may amount to more than 500 billion rubles. It is known that Russian business actively uses aggressive tax planning. Studies have shown that aggressive tax planning in Russia is characterized by three typical situations:

T. V. Bodrova et al.

• The actions of a taxpayer comply with the law but lead to tax consequences. In this case, it is important for the legislator to distinguish the results between the actual consequences of the taxpayer’s actions and what the legislator initially laid down in specific norms; • “Ambiguity” in interpreting rules and laws used to circumvent the taxpayer’s stipulated rules. This “ambiguity” is observed due to insufficient attention and control on the part of the legislator, giving the opportunity to apply this method, as well as the disagreement of the tax authorities with the existence of such legal uncertainty; • Purposeful distortion of tax reporting and tax base (increase in expenses, use of fictitious organizations, increase in fake VAT deductions, etc.). It can be argued that the development of aggressive tax planning in the Russian Federation contributes to two factors: • The desire to maximize profits by reducing the tax burden; • Vagueness or ambiguity of laws and law enforcement practices; perception of the state’s tax system as unfair or imperfect. Studies show that it is necessary to maintain cooperation with big businesses when carrying out tax administration. This is due to the leading role of big business in the Russian economy, including in investment and the social sphere. Thus, for optimal use of the world experience, including the OECD, in the regulation of aggressive tax planning, it is necessary to control the taxation process in the area of adequate payment of taxes and also consider the need to support large businesses directly involved in solving investment, innovation, and social problems. Even though Russia is not a member of the OECD, the country also develops in this area. Significant changes in the tax system of the Russian Federation have led to a noticeable strengthening of tax control by the government. Thus, the boundary between legitimate and aggressive tax planning was defined with the introduction of Article 54.1 of the Tax Code of the Russian Federation on August 19, 2017 (Russian Federation, 1998). Up to that point, the tax authorities had qualified the taxpayers’ abuses as an unjustified tax benefit. In this case, the main criterion is the absence of reasonable business purposes and the implementation of activities only to obtain tax benefits. The aggressive tax planning schemes may include distortion of information to obtain a more favorable tax status and benefits, deliberate actions on not withholding taxes, artificial transactions, splitting the business, participation of

Countering Aggressive Tax Planning

intermediaries to secure fictitious expenses, loans, and transfer pricing, contract substitution, etc. An important tool to combat aggressive tax planning is increased tax control over beneficial owners when schemes to transfer taxable income from the organization to another organization that has tax benefits or is a member of a special economic zone are suppressed. The replacement of limited liability by the subsidiary liability of all participants of economic life and strengthening control in certain industries most exposed to the use of illegal tax planning schemes allowed the tax authorities to especially carefully check pharmaceutical, jewelry, and other organizations, where, in the opinion of the controlling body, illegal tax schemes were used most often. In total, in the first half of 2021 in Russia, desk tax audits additionally charged taxes of 21.3 billion rubles, in 2020—9 billion rubles, in 2019—10.3 billion rubles. Tax control measures in the form of field tax audits allowed replenishing the budget of the Russian Federation for the total amount of 132.5 billion rubles of additional charges (including 88.5 billion rubles of taxes) in the first half of 2021; 44.8 billion rubles in 2020 (including 31.5 billion rubles of taxes), and 106.9 million for the same period of 2019 (including 77.8 million rubles of taxes) (Natalyuk, 2021). Since 2018, tax authorities have been granted access to audit secrecy. Subsequently, the tax authorities received the right to demand documents (information) about the activities of the organization from the auditors if the taxpayer did not submit the relevant documents to the Federal Tax Service of Russia during the audit. As in other areas of the economy, the need to automate tax audits has received particular attention in the tax field. The existing software requires improvement; it is necessary to create new software complexes that fully automate the process of controlling the movement of assets between business entities. The result of more objective control is the detection of offenses in the field of taxation, as well as suppression and prevention of violations.

3

Results

The following organizational mechanisms to improve counteraction to aggressive tax planning are proposed: • Improvement of tax administration—optimization of tax collection mechanisms on the part of the state and supervisory bodies; • Increasing the transparency of tax legislation—work on eliminating ambiguities that create “loopholes” for business; • Encouraging the transparency of business in terms of tax planning—creating conditions for fuller disclosure of

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4

financial information, the development of direct incentives for the openness of business; Finding a balance between the interests of business and the state—creating conditions for the comfortable existence of organizations that do not harm the country’s budget; Ensuring the flexibility of the country’s tax system—the ability of the tax system to be updated to reflect current realities and changes at the macroeconomic level; Improvement of control methods on the part of supervisory bodies—ensuring more effective oversight in the field of taxation by optimizing analysis and control mechanisms; Comprehensive development of adequate measures to counteract aggressive tax planning—improving the competence of the personnel involved in the study of the problem of aggressive tax planning, full scientific work in this area, the creation of theoretical and practical systems to combat aggressive tax planning, and the development of intelligent systems and complexes in the field of IT; Countering aggressive tax planning at the international level—joint interstate work, creation and participation in international organizations, and use and reassessment of international experience.

Conclusion

Aggressive tax planning is characterized by abuse of ambiguity in the law or clear-cut offenses that aim to maximize the reduction of the tax burden on the organization. Simultaneously, from the government’s point of view, this type of tax planning is the most dangerous because it leads to a shortfall of money in the budget system, strengthens unfair tax competition, and undermines the social stability of the country and the world. The course to counter aggressive tax planning has long been taken in Russia, which is regularly noted by the authorities. However, this aspect requires constant updating and further development. Based on the above, we can distinguish the following organizational mechanisms to improve counteraction to aggressive tax planning: • Improving tax administration; • Increasing the transparency of tax legislation; • Encouraging the transparency of business in terms of tax planning; • Finding a balance between the interests of business and government; • Ensuring the flexibility of the country’s tax system;

106

• Improvement of control methods on the part of supervisory bodies; • Comprehensive development of adequate measures to counteract aggressive tax planning. Thus, the most adequate solution is the improvement of the system of taxation, control, and interaction with business, as well as the development of new mechanisms in this area at the level of the country and the world.

References Council of the European Union. (2016). Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market. Retrieved from https://www.eumonitor.eu/ 9353000/1/j9vvik7m1c3gyxp/vk5x5q2nu0yw. Accessed Oct. 1, 2021. Cotrut, M. (2015). International tax structures in the BEPS era: An analysis of anti-abuse measures. IBFD. Jain, S., Prebble, J., & Bunting, K. (2013). Conduit companies, beneficial ownership, and the test of substantive business activity in claims for relief under double tax treaties. eJournal of Tax Research, 11(3), 386–433. Retrieved from http://www5.austlii. edu.au/au/journals/eJlTaxR/2013/19.pdf. Accessed Aug. 6, 2014. Kaurova, O., Maloletko, A., & Yumanova, O. (2013). Ways to counter retrieval of “shadow income” from businesses with fixed assets in

T. V. Bodrova et al. hospitality. Middle East Journal of Scientific Research, 15(5), 757– 762. https://doi.org/10.5829/idosi.mejsr.2013.15.5.11404 Natalyuk, N. (2021, September 20). Tax control in figures: Results of the first half of 2021. Pravovest Audit. Retrieved from https:// pravovest-audit.ru/nashi-statii-nalogi-i-buhuchet/nalogovyykontrol-v-tsifrakh-za-polugodiye/. Accessed Sept. 20, 2021. OECD. (2013). Addressing base erosion and profit shifting. OECD Publishing. https://doi.org/10.1787/9789264192744-en OECD. (2015). G20 Base erosion and profit shifting project executive summaries: 2015 final reports. OECD Publishing. Retrieved from https://www.oecd.org/ctp/beps-reports-2015-executive-summaries. pdf. Accessed Oct. 1, 2021. OECD. (2021). Ending the shell game: Cracking down on the professionals who enable tax and white collar crimes. OECD Publishing. Retrieved from https://www.oecd.org/tax/crime/endingthe-shell-game-cracking-down-on-the-professionals-who-enabletax-and-white-collar-crimes.htm. Accessed Oct. 1, 2021. Piantavigna, P. (2017). Tax abuse and aggressive tax planning in the BEPS era: How EU law and the OECD are establishing a unifying conceptual framework in international tax law, despite linguistic discrepancies. World Tax Journal, 9(1). Retrieved from https:// www.ibfd.org/shop/tax-abuse-and-aggressive-tax-planning-bepsera-how-eu-law-and-oecd-are-establishing-unifying. Accessed Oct. 1, 2021. Russian Federation. (1998). Tax Code of the Russian Federation (Part one) (July 31, 1998 No. 146-FZ). Moscow, Russia. Retrieved from http://www.consultant.ru/document/cons_doc_LAW_19671/. Accessed Oct. 1, 2021. Yang, J. G. S., & Metallo, V. N. A. (2018). The emerging international taxation problems. International Journal of Financial Studies, 6(1), 6. https://doi.org/10.3390/ijfs6010006

Problems of Economic Security of Special Economic Zones Elena A. Bessonova , Svetlana A. Orlova , Karina I. Svezhentseva, and Ulyana R. Sergeeva

Abstract

1

The economic security of the regions becomes a priority of public policy. This research aims to substantiate the role of creating special economic zones (SEZ) in ensuring the economic security of regions. The introduction of SEZ allows the government to develop different territories and sectors of the economy. However, the view of scientists on this tool of regional policy is ambiguous because there are risks associated with the inefficient functioning of the SEZ. The paper substantiates the creation of special economic zones from the position of ensuring the dynamic socio-economic development of regions and attracting investment into the country’s economy, which allows for increasing the level of economic security. The authors analyze periodical literature, compile a bibliography, study normative-legal documents, assess and evaluate special economic zones, and conduct comparative analysis. SEZ acts as a driver of economic development of the region, allowing for the most effective implementation of scientific and technological achievements, increasing labor productivity and living standards of the population, and ensuring the active development of infrastructure through attracted investments. Keywords

.

.

. .

Economic security Regional policy Special economic zone Sustainable development Development of a region JEL Classification

P25

. . . R1

Q01

F63

E. A. Bessonova (&) . S. A. Orlova . K. I. Svezhentseva . U. R. Sergeeva Southwest State University, Kursk, Russia e-mail: [email protected]

Introduction

In current conditions, the problems of ensuring the economic security of regions become particularly relevant. The solution to this problem involves the provision of dynamic and stable development. In general, it is possible to ensure the security of the Russian Federation and achieve a stable social and political environment on its territory by increasing the economic security of its constituent entities. The economic growth of the region and its competitiveness in domestic and foreign markets depends largely on the level of economic security in the region. Increasing economic security also positively affects the social sphere of society because the living standards of citizens improve, unemployment decreases, etc. This shows the relevance of the elaboration of the problem of ensuring economic security in the regions. The government is interested in increasing the level of economic security of the regions. Various strategic tools are used for this purpose. One of these tools is the introduction of special economic zones (SEZ) on the territory of the subjects of the Russian Federation. The paper aims to substantiate the role of the creation of special economic zones in ensuring the economic security of regions and sustainable socio-economic development. To achieve the set research objective, it is necessary to solve the following tasks: • To study the legislative framework governing the activities of special economic zones; • To consider approaches to the concept of “ensuring economic security”; • To analyze the peculiarities of regional policy, problems, and perspectives of the creation of special economic zones in the regions; • To analyze indicators of efficiency of the implementation of SEZ in the regions.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_22

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Despite the importance of introducing SEZs, the question of the efficiency and rationality of their use remains open. Particular attention should be paid to the risks to the economic security of the region that may arise as a result of the activities of SEZs.

2

Materials and Methods

Many authors have repeatedly raised the issue of economic security. Thus, the peculiarities of regional policy in ensuring economic security are discussed in the works of such authors as Bakhvalova (2017), Bykov et al. (2006), Glazyev (2014), and Glustenkov (2016). These works also characterize possible threats and the ways to counter them. The problem of ensuring economic security in the regions with the functioning special economic zones is raised in the studies by Goryachikh and Kravchenko (2020) and Evstafieva (2020a, 2020b). Loginov (2017), Poiseev and Strekalovskaya (2018), Pyankova and Kostsova (2019), Senchagov (2015), Sidorova and Tatarkin (2012), Titenko and Abakumov (2018), Troyanskaya and Tyurina (2017) consider different methods of assessing the economic security of SEZs and emphasize the features of state regulation of SEZs and state cooperation with the private sector. During the research, the authors applied theoretical (analysis of previously published scientific works on the discussed topic, compiling a bibliography), empirical (study of scientific literature and regulatory documents), and practical methods (analysis and evaluation of special economic zones in the system of economic security of the regions, comparative analysis).

3

Results

The provision of economic security of a region is a challenging, complex, and long-term process that requires careful preparation in terms of both the results and the implementation of the intended activities. The process of strategizing the economic security of regions is complex because it depends on the regional characteristics of the subjects, which include the resource potential of the region, its investment attractiveness, human resources, and the level of economic freedom. The optimization of these elements and their improvement is more effective when there are special economic zones on the region’s territory, which allow developing the region’s potential in the most competitive areas. A special economic zone is a territory with a special regime of economic cooperation, which provides business entities with benefits and preferences that allow them to derive additional benefits from their activities.

The creation of special economic zones in Russia primarily aims to attract domestic and foreign investment in various sectors of the economy and regions. They can reduce the gap in social and economic development between the subjects of the Russian Federation, accelerate the introduction of scientific and technological advances, improve the standard of living of citizens, etc. To understand how great is the effect of the creation of SEZs in the regions, let us turn to the various concepts of “ensuring the economic security of the region” to clarify the main leverage of SEZs in terms of socio-economic development of the region and ensuring its security from potential internal and external threats. Table 1 shows that state intervention plays a special role in the concept of ensuring economic security because it performs a strategic function and determines the general directions of measures to ensure economic security. SEZs are actively developing on the territory of Russia, being influenced by the changing needs of society and economic conditions. As of 2020, the Russian Federation had about 33 special economic zones. This number shows that the practice of creating and promoting SEZs in Russia is highly active because there are currently more than 5000 zones around the world. SEZs are most effectively implemented by China (Special Economic Region “Guangdong”—33 thousand hectares), Bulgaria (Special Economic Zone “Ruse”—180 hectares), the USA (Technopark “Silicon Valley”—400 thousand hectares), and others. The active introduction of special economic zones on the territory of the Russian Federation began in 2005, which led to the adoption of Federal Law No. 116-FZ “On special economic zones in the Russian Federation.” Thus, this law, which is still in force, contains the fundamental principles, goals, and objectives of the creation of SEZs, as well as the mechanism of their state management. This law contains the idea that special economic zones are considered as growth drivers not only for individual industries and the whole region. Let us consider the main normative legal acts that regulate SEZs and their role in ensuring the region’s economic security (Federation, 2005; Government of Russian Federation, 2016, 2019; Presidential Executive Office, 2018). Decree of the Government of the Russian Federation “On the Strategy for the spatial development of the Russian Federation for the period up to 2025” (February 13, 2019 No. 207-r) is a strategic document that was developed to ensure sustainable spatial development. The highest priorities are to increase the number of promising centers of economic growth, support entrepreneurial activity, and develop territories with low levels of economic potential. Presidential Decree “On approval of the fundamentals of state policy of regional development of the Russian Federation for the period up to 2025” (January 16, 2017 No. 13)

Problems of Economic Security of Special Economic Zones Table 1 Approaches to the concept of “ensuring the economic security of the region”

109

Approach

Content

Orientation towards practical actions

Regional policy in the field of economic security is a set of managerial decisions of public authorities aimed at a stable and gradual economic development of the region and the avoidance of threats that hinder it. Economic security is understood as a result of development and a permanent mechanism of management decisions

Combating the factors that cause a violation of economic security

A considerable role in this approach is given to analytical procedures and structures. The provision of economic security is seen as overcoming potential threats at the initial stage of their emergence. In the future, it is necessary to develop the management and strategic centers

Regional autonomy

“The current state of the region’s economy and finances is such that its security is the result of past and present development and the readiness to resist special sources of threats. The region can cope with impending threats on its own and generate growth in its socio-economic indicators

Source Compiled by the authors based on Bakhvalova (2017), Glustenkov (2016), Loginov (2017), Sidorova and Tatarkin (2012)

approved the main objectives of the state policy of regional development, which include the following: • Increasing the competitiveness of the Russian economy; • Accelerating of economic growth and scientifictechnological development of the regions; • Improving the standard of living of citizens; • Sustainable socio-economic development of the subjects. One of the ways to set goals is to determine the locations of special economic zones. Presidential Decree “On the national goals and strategic objectives of the development of the Russian Federation for the period up to 2024” (May 7, 2018 No. 204) defines the SEZ as a way to achieve accelerated technological development of the country, increasing the number of enterprises that implement innovations. Decree of the Government of the Russian Federation “On the procedure for evaluating the effectiveness of special economic zones” (June 7, 2016 No. 643) determines the procedure for evaluating the effectiveness of the functioning of special economic zones. The calculations of absolute and relative indicators and efficiency criteria made by the Ministry of Economic Development of the Russian Federation are considered. Regions with special economic zones have a different economic policy from other regions. Let us consider the mechanism of the functioning of SEZ and the peculiarities of the regional policy of such regions. Nowadays, special economic zones are a positive factor for creating favorable conditions for sustainable economic development because they operate in several areas, including the following:

• Attracting foreign and domestic investment; • Clustering the economy; • Creating the foundation of technological development of the country and social development. This leads to a comprehensive approach of the state to the regulation of regional policy and the division of methods of state control into direct and indirect (Fig. 1). SEZs in regions are created for various reasons (lagging socio-economic development, risks of ecological disasters, political conflicts, border location), posing threats to the sustainable socio-economic development of the region. The main problems faced by the regions of Russia in the implementation of measures on economic security are as follows: • Inconsistency between the goals of federal and regional strategizing of sustainable development; • Low efficiency of regional strategic bodies, and, consequently, incomplete implementation of planned activities; • Violation of feedback between the federal and regional levels caused by the scale of the Russian territory; • Organizational problems of ensuring the sustainability of regional development caused by the lack of a clearly defined system of parameters, acting as indicators of such development. However, the regions with operating SEZs face a wide range of problems, including the following: • Weak elaboration of legislative regulation of SEZ, namely, the lack of clear regulations on the behavior of

110 Fig. 1 Mechanism for the implementation of regional policy in the SEZ. Source Compiled by the authors

E. A. Bessonova et al.

Regional policy in the SEZ Management structure

Ministry of Economic Development of the Russian Federation

Direct: - Public investments; - Government programs and capital investment projects; - Government contracts.

Government of the subject of the Russian Management company

• • • •

Special economic zones are a controversial project because there are several problems on the way of their implementation. Nevertheless, during the many years of existence, SEZs justified their effectiveness (Table 2). Thus, Table 2 demonstrates that all indicators adhere to positive dynamics. The total number of special economic zones grows yearly. Additionally, in the near future, it is planned to create three more special economic zones in the Orenburg, Smolensk, and Ivanovo Regions. These SEZs are planned to attract private investment totaling 22.5 billion rubles by 2030. It is worth noting that the structure of the SEZ is dominated by the industrial-production type. Along with the increase in investment from the residents of the SEZ, foreign investment is also increasing, amounting to 243.3 billion rubles. As noted above, a significant problem for regions in terms of economic security is the lack of clear regulation of the behavior of the residents of SEZs. Thus, the government has taken measures on the criteria for qualifying a resident for the SEZ. Starting July 15, 2021, the number of SEZ residents in the region now depends on the number of expected investments.

Indirect: - Attracting private investment; - Special purpose funds; - Privileges and exemptions; - Compensation of unforeseen costs.

- Formation of strategic documents on the development of SEZ; - Monitoring of SEZ development indicators: social, economic, environmental.

Supervisory board

business entities, which makes the SEZ an offshore zone, which does not imply the achievement of the goals of the SEZ, causing the growth of unemployment in the region and the loss of potential taxpayers by the neighboring regions; Uneven territorial development of the regions; The easing of the tax regime leads to the outflow of resources abroad; Growth of shadow economy and criminalization of economic relations (illegal money transfers through the banks of SEZ); Sanctions from the global community (e.g., Crimea).

Methods

The problem of sanctions by the world community is also being addressed. The Ministry of Economic Development of the Russian Federation has decided to protect Crimea from sanctions by adding special administrative districts to the free economic zone in the region. The primary feature of such regions is the anonymity of potential investors with the preservation of all tax and administrative privileges of special economic zones. The development of this project is a vivid example of a public–private partnership (a system of mutually beneficial cooperation between government and business on financing, planning, and creating economic facilities). This mechanism can ensure the region’s competitiveness, reduce unemployment, develop innovation activity in the regions, and, consequently, increase economic security.

4

Discussion

Considering the results of this research, we can conclude that its goal was achieved. Summarizing the various approaches to the definition of the concept of “ensuring the economic security of the region,” this work showed that all interpretations boil down to one view of what is behind the economic security of the region, but differ in how the state begins to deal with potential threats. Thus, the works of Glazyev (2014) and Senchagov (2015) pay special attention to assessing the economic security of the region in social, economic, and environmental areas. However, the areas mentioned above are currently integral elements of the assessment of the region’s economic security. The mechanism of regional policy in special economic zones, compiled by the authors of this research, demonstrates the comprehensiveness of state methods to address potential threats and the issues of developing the region.

Problems of Economic Security of Special Economic Zones Table 2 Performance of special economic zones in Russia in 2016–2020

111 2016

2017

2018

2019

The number of workplaces created on the territory of the special economic zone by the residents of the special economic zone and the management company of the special economic zone (thousand units)

21

28

37

41

2020 45

Volume of investments made by the residents of the SEZ on the territory of the SEZ (billion rubles)

222

292

369

445

535

Volume of revenue from the sale of goods, works, and services; net of VAT, excise taxes, and the amount of income (billion rubles)

368

524

717

967

1255

Number of SEZ residents (units)

525

656

707

760

825

State financing for the creation of engineering, transport, social, innovative, and other infrastructure facilities of SEZ (billion rubles)

142

190

157

163

170

The volume of taxes paid to the budgets of the budgetary system of the Russian Federation by residents of the SEZ (million rubles)

24

Number of engineering infrastructure facilities built in the SEZ and put into operation (units)

537

33.9

37

52.8

77.2

761

912

997

1089

SEZs of industrial production type

127

159

176

178

SEZs of technical and innovative type

139

127

146

193

SEZs of tourist and recreational type

33

67

53

63

Port SEZs

33

89

81

139

26

25

26

33

Calculated efficiency indicator that reflects the profitability of investments of the federal budget, budgets of the subjects of the Russian Federation, and local budgets in the creation of infrastructure facilities in the SEZ, %

Number of special economic zones

34

Source Compiled by the authors based on Association for the Development of Clusters, Technology Parks and SEZ of Russia (2021), Federal State Statistics Service of the Russian Federation (2021), Ministry of Economic Development of the Russian Federation (2021)

This shows the effectiveness of the system and the great potential of the SEZ in Russia.

5

Conclusion

The objectives of the research were met, and the goal was achieved. The development of SEZs and their various encouragement by the state is very important because the mechanism of SEZs allows regions with high industrial, manufacturing, and tourist potential to attract public and private foreign investment.

Thus, we can draw the following conclusions: (1) The creation of special economic zones in the regions for its sustainable development and economic security is proved to be efficient. The government promptly solves the problems arising on the way to creating SEZs. The positive economic effect compensates for the difficulties associated with the functioning of the SEZ. (2) The state management mechanism of the SEZ in Russia is very effective and operational. The diversity of the methods of regional policy and rapid response to external threats (sanctions) by developing new protective mechanisms (special administrative districts) allow prolonging the economic effect of SEZs.

References Association for the Development of Clusters, Technology Parks and SEZ of Russia. (2021). Rating of investment attractiveness of special economic zones—2020. Retrieved from https://www.akitrf. ru/oez/reyting-investitsionnoy-privlekatelnosti-oez/. Accessed Oct. 11, 2021. Bakhvalova, D. (2017). Problems associated with the functioning of special economic zones and ways to solve them. Ocean Management, 1(1), 35–42. Bykov, V. P., Dembovskaya, O. A., & Lebedko, E. M. (2006). Economic security of the regions and overcoming threats in modern conditions. Economics and Efficiency of Production Organization, 5, 60–63.

112 Evstafieva, A. K. (2020a). Factors of socio-economic development of the region and their impact on the economic security of the SEZ. Innovative Development of Economy, 6(60), 251–256. Evstafieva, A. K. (2020b). The development of special economic zones in the conditions of economic security of Russia. Innovative Development of Economy, 4–5(58–59), 225–231. Federal State Statistics Service of the Russian Federation. (2021). Russia in numbers—2020. Retrieved from https://rosstat.gov.ru/ storage/mediabank/GOyirKPV/Rus_2020.pdf. Accessed Oct. 12, 2021. Glazyev, S. Y. (2014). On the policy of development of the Russian economy. Scientific Proceedings of the Free Economic Society of Russia, 182, 165–206. Glustenkov, I. V. (2016). Formation of an effective system of economic security of the regions [Dissertation of Candidate of Economics]. Market Economy Institute of the Russian Academy of Science. Goryachikh, M. V., & Kravchenko, L. A. (2020). Free economic zone as a factor of regional economic development. Scientific Bulletin: Finance, Banking, Investment, 2(51), 213–222. https://doi.org/10. 37279/2312-5330-2020-2-213-222 Government of Russian Federation. (2016). Decree “On the procedure for evaluating the effectiveness of special economic zones” (June 7, 2016 No. 643). Retrieved from http://www.consultant.ru/document/ cons_doc_LAW_201682/. Accessed Oct. 10, 2021. Government of Russian Federation. (2019). Order “On the approvement of the Strategy of organization of spatial development of the Russian Federation until 2024” (February 13, 2019 No. 207-r). Retrieved from https://www.economy.gov.ru/material/dokumenty/ rasporyazhenie_ot_13_fevralya_2019_g_207_r.html. Accessed Oct. 10, 2021. Loginov, D. A. (2017). Financial and economic security of the region: Scientific views and implementation strategies. Innovative Development of Economy, 4(40), 272–279.

E. A. Bessonova et al. Ministry of Economic Development of the Russian Federation. (2021). Special economic zones. Retrieved from https://www.economy.gov. ru/material/directions/regionalnoe_razvitie/instrumenty_razvitiya_ territoriy/osobye_ekonomicheskie_zony/. Accessed Oct. 14, 2021. Poiseev, I. I., & Strekalovskaya, M. I. (2018). Theoretical approaches to understanding sustainable development of the region. Regional Problems of Transforming the Economy, 10(96), 99–104. https:// doi.org/10.26726/1812-7096-2018-10-99-104 Presidential Executive Office. (2018). Decree “On the national goals and strategic objectives of the development of the Russian Federation for the period up to 2024” (May 7, 2018 No. 204). Retrieved from http://www.kremlin.ru/acts/bank/43027. Accessed Oct. 10, 2021. Pyankova, S. G., & Kostsova, A. V. (2019). A study of special economic zones in the system of ensuring the economic security of the subject Russian Federation. International Journal of Applied and Basic Research, 7, 157–161. Russian Federation. (2005). Federal law “On special economic zones in the Russian Federation” (July 22, 2005 No. 116-FZ, as amended June 11, 2021). Retrieved from http://www.consultant.ru/document/ cons_doc_LAW_54599/. Accessed Oct. 10, 2021. Senchagov, V. K. (Ed.). (2015). Economic security of Russia. BINOM. Sidorova, E. N., & Tatarkin, D. A. (2012). Optimization of the regions’ financial flows as a factor in increasing their security. Economy of Region, 2(30), 94–105. Titenko, V. I., & Abakumov, R. G. (2018). Practical aspects of economic zoning on territories with special economic status. Innovative Economy: Prospects for Development and Improvement, 4(30), 151–157. Troyanskaya, M. A., & Tyurina, Yu. G. (2017). Impact of regional policies of special economic zones on their socio-economic development. Regional Economics: Theory and Practice, 15(8), 1455–1464. https://doi.org/10.24891/re.15.8.1455

Conceptual Approach to the System of Controlling in the Public Sector Elena A. Fedchenko , Lyubov V. Gusarova , and Irina S. Medina

Abstract

Keywords

Over the past two decades, the environment of functioning of the public sector and public administration has seen dramatic changes. The main reasons for the changes are related, on the one hand, to the need to ensure their viability in the context of global economic realities and, on the other hand, to new approaches to assessing the effectiveness and performance of government agencies and organizations, as well as the requirements of the information and digital economy. The use of controlling tools in public administration will increase the efficiency of managing budgetary resources and the performance of state bodies. Since the scientific theory of controlling is understudied, there are unresolved issues of substantive aspects of controlling and contradictions in its elemental composition; methodological, informational and organizational support of controlling in the public sector is underdeveloped. In this regard, it is necessary to find a scientific approach to the justification of conceptual approaches to the functioning and development of the system of control in the public sector. The paper aims to analyze the theoretical foundations of controlling and, on its basis, develop conceptual approaches to the introduction of controlling in the public sector as a fundamentally new management system consisting in informational, analytical, and methodological support of strategic planning, budgeting, and monitoring to ensure effective management and other decisions in the organizations of the public sector.

Controlling Public sector Controlling goal-setting

E. A. Fedchenko . L. V. Gusarova (&) . I. S. Medina Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] E. A. Fedchenko e-mail: [email protected] I. S. Medina e-mail: [email protected]

.

.

Budgeting

.

Control

.

JEL Classification

H11

1

.

M38

Introduction

Elements of corporate finance are increasingly applied to the public sector. Thus, the budget financing of organizations uses cost–benefit analysis; the volume of paid public services and commercialization of financial and economic activities of budgetary and autonomous institutions is growing; financial management tools are introduced in the public sector (New Public Management, New Public Administration, Neo-Weberian State, Good Governance); performance and efficiency indicators are applied. These circumstances necessitate the use of new management tools to provide timely support and adjustment of managerial decisions. One of such management tools is controlling, which provides a set of measures aimed at the formation, development, and maintenance of competitive advantages of public sector organizations through coordination and integration of functional areas of activity and management tools at all stages of production and implementation of services.

2

Materials and Methods

A considerable number of scientific research by foreign and Russian researchers focus on controlling. Russian scientists consider the formation of the conceptual foundations of the controlling system (Danilochkina, 2001; Falko, 2008; Falko et al., 2019; Ponomareva, 2012; Sheshukova & Gulyaeva,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_23

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2014). The representatives of the German school of economics, concerned with the practical implementation of controlling, proposed various controlling models, developed controlling tools, and defined the principles of controlling (Becker & Weise, 2002). American scientific school introduced a system of controlling through the direction of budgeting with the use of management accounting tools (International Controlling Group, 2012). However, despite the formation of the theoretical foundations of controlling, the issues on the implementation of controlling in the public sector are insufficiently elaborated. Moreover, there are methodological problems in the substantive aspects of controlling, its elemental composition, and underdeveloped information support.

3

Results

Analysis of the modern theoretical base of controlling showed the existence of several different concepts (Table 1). All definitions named in Table 1 are based on different conceptual approaches to understanding the role of controlling in the management of business processes aimed at achieving the goals set for the organization. We believe that the lack of a coherent, unified approach to the definition of controlling cannot be regarded as a conclusion about the lack of development of these issues and the absence of the necessary theoretical framework. With great reason, we can say that this is due to the flexibility of the system of controlling capable of meeting the various objectives of the organization, a variety of external and internal conditions of its activities, and the management system chosen.

4

Discussion

Depending on the dynamics of changes in the external environment, affecting the activities of the organization, and the complexity of the functions of the management system, the concept of controlling has consistently transformed from solving problems of an accounting nature to solving complex problems of coordination of the entire management system of the organization (Sheshukova & Gulyaeva, 2014). Based on changes in conceptual approaches to the understanding of the role of controlling in the organization’s management system, there were different objectives of controlling. Most often, the goal of controlling was defined as follows: • “Ensuring the financial result (profit) based on the accounting system”; • “Providing information support for the management system”;

• “Coordination of management system activities, including the coordination of individual subsystems of the management system and the coordination of all subsystems of the management system” (Ponomareva, 2012). According to the authors, in relation to the public sector, the purpose of building a system of controlling is to ensure the effective use of budgetary funds and the effective execution of budgetary authority. The analysis shows that the development of the concept of controlling followed the evolution of the management functions of the organization. Simultaneously, the functions of controlling, as a subsystem of the overall management system, have consistently expanded. Thus, the original concepts of controlling focused on the accounting system and the goals of the organization’s financial performance. With the expansion of computerization of business processes, controlling began to focus primarily on the creation of information systems and information processing for managerial decision-making. The development of project management was a prerequisite for the application of the concept of controlling, focused on the coordination of management systems. The conceptual differences in these approaches to understanding the essence of controlling are presented in Table 2. All categories (Table 2) are based on different conceptual approaches to understanding the controlling system aimed at achieving the goals set for the economic entity. We believe that the lack of a coherent, unified approach to the category of controlling cannot be regarded as a conclusion about the lack of development of these issues and the lack of the necessary theoretical framework. With great reason, we can say that this is due to the flexibility of the controlling system, capable of meeting the various objectives set by an economic entity, a variety of external and internal conditions of its activities, and the selected management system. The conceptual differences in these approaches to understanding the essence of controlling is as follows. The concept of controlling with the focus on accounting and profitability aims to achieve the financial result of the economic entity. This direction of controlling is based on accounting, providing relevant data for management decisions within the operational level of management. It includes very limited functionality compared to the full range of capabilities. The concept of controlling with the focus on the information system aims to create and regulate information flows, which, along with accounting data, cover other quantitative and qualitative parameters of the organization to provide the organization management with information for managerial decision-making. It allows providing the process of making

Conceptual Approach to the System of Controlling in the Public Sector

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Table 1 Analysis of conceptual approaches to the system of controlling Definition

Author of the concept

Focused on the accounting system The function of controlling consists of the application of accounting in the practice of management of the organization

Jackson, J. H. The Controller. His Function and Organization, 1949

Controlling provides the management of the organization based on the accounting system, applying financial data in the analysis of the need for future managerial decisions

Hecken, H. B., Wilson, J. D. Controllership, 1963

Focused on profitability goals Controlling aims to ensure the organization’s profitability based on the comparison of planned and actual accounting data and identify the causes of deviations

Deyhle, A., Controller-Handbuch, 4 Aufl., 1996

Focused on information support Controlling aims to ensure the operation of the management control system

Anthony, R. N., The Management Control Function, 1988

Controlling aims to create and verify information flow data for use by management to achieve the organization’s goals

Heigl, A., Controlling—Interne Revision, 2. Aufl., 1989

Controlling provides management activities based on the formation and analysis of information for the preparation of plans and coordination, decision-making, and control of their implementation

Reichmann, T., Controlling mitKennzahlen und Managmentberichte n, 5. Aufl., 1997

With an orientation to the management system Controlling is a function of organizational management, which provides planning, information support, coordination, and control

Bramseman, R., Controlling, 2. Aufl., 1980

Controlling ensures the coordination of all subsystems of the management system to ensure their activities within the framework of common goals

Kupper, H.-U., Controlling, 2 Aufl., 1997

Controlling is aimed at information support of planning, coordination, and control, oriented to achieve the organization’s goal

Hahn D. Controllingkonzepte: Planung und Kontrollsystem, Planungs und Kontrollrechnung, 5. Aufl., 1996

Controlling is a function of the management system aimed at coordinating the activities of all subsystems of the management system and the existing relationships between them

Weber, J., Einfihrung in das Controlling, 6. Aufl., 1995

Controlling is a management subsystem that provides target-oriented coordination of planning, control, and information system

Horvath, P., Controlling, 7. Aufl., 1998

Controlling is a function of the management system, including coordination, planning, information support, and control over the implementation of managerial decisions

Karminsky, A. M. Controlling in business. Methodological and practical foundations of building controlling in organizations. Moscow, Russia: Finance and Statistics, 2002

Controlling is a comprehensive system of management of the organization, aimed at coordination within the management system, providing information and analytical support of managerial decision-making

Danilochkina, N. G. Controlling as an enterprise management tool. Moscow, Russia: UNITY, 2001

Controlling is a methodical subsystem of the organization’s management system based on management accounting information, which integrates all functions of management to ensure the effective functioning of the organization’s management system

Sheshukova, T. G., Gulyaeva, E. L. Theory and practice of controlling. Moscow, Russia: Finance and Statistics, 2014

Controlling is a system that includes management accounting, planning, budgeting, and control of deviations of the actual results of the organization from the planned ones to prepare managerial decisions

Bashkatova, Yu. I. Controlling: Teaching complex. Moscow, Russia: Publishing Center of the Eurasian Open Institute, 2009

Source Compiled by the authors based on Sheshukova and Gulyaeva (2014)

116 Table 2 Conceptual approaches to understanding the essence of controlling

E. A. Fedchenko et al. Types of concepts

Essential characteristics

The concept of controlling with the focus on accounting and profitability

It is aimed mainly at ensuring control over the achievement of the financial results of the organization. It is based on accounting and provides relevant data for making managerial decisions in monetary terms. It is expedient within the framework of the operational level of management and includes very limited functionality compared to the full range of opportunities provided by a full-scale controlling

The concept of controlling with the focus on the information system

It aims to create and regulate information flows, which, along with accounting data, cover other quantitative and qualitative parameters of the organization to provide the organization management with information for managerial decision-making. It allows providing the process of making managerial decisions based on the selection, processing, and provision of relevant information in accordance with the needs of all levels of management

Concepts of controlling with the focus on the management system (management of management)

It implies the coordination of various subsystems of management systems. There are two different concepts of controlling. The first concept provides for the use of only planning, control, and information support subsystems. The second concept provides for the coordination of the activities of all subsystems of the management system

Concepts of controlling with the focus on planning, control, and information support

These concepts aim to coordinate the subsystems of planning, control, and information support of the management system. The main task is the need to coordinate the activities of the management system only in terms of planning, control, and information provision, providing information links between them to make coordinated management decisions

Concepts of controlling with the focus on the coordination of the management system

These concepts aim to coordinate the activities of all subsystems of the management system among themselves and within the subsystems to ensure their activities within uniform targets

Source Compiled by the authors

managerial decisions based on the selection, processing, and provision of relevant information in accordance with the needs of all levels of management. The concept of controlling with the focus on the management system (management of management) focuses on coordinating various subsystems of the management system. There are two different concepts of controlling. The first one focuses only on planning, control, and information support subsystems. The second concept focuses on coordinating all subsystems of the management system. The concept of controlling with an orientation on planning, control, and information support considers the need to coordinate the activities of the management system only in terms of individual functions, providing information links between them to make coordinated management decisions. The concept of controlling with the focus on the coordination of the management system aims to coordinate the

activities of all subsystems of the management system among themselves and within the subsystems to ensure their activities within common targets. The controlling functions are determined depending on the areas of control and the goals set. Within each specific concept, controlling provides for the coordination of those functions of the management system that ensure the achievement of strategic and operational objectives. As a rule, the main functions of controlling include the following (Sheshukova & Gulyaeva, 2014): • The function of goal-setting, which determines the coordination of setting and achieving strategic and operational goals of the economic entity; • The function of monitoring the current state, which consists in determining the actual state of the economic entity and its structural units, the available resource potential, opportunities, and risks to achieve the goals set;

Conceptual Approach to the System of Controlling in the Public Sector

• Service function, which ensures the timely provision of the necessary information to the appropriate level of the management system to make management decisions implemented based on systems of planning, management, and control to implement the strategy; • Management function, which, based on the analysis of emerging deviations in the implementation of the strategy, allows developing the measures necessary to respond to changes in the external and internal environment, including measures to change the tools and methods used to implement the goals or, if necessary, reassess the strategy and adjust goals; • Coordinating function, covering the coordination of the formation of strategic and operational objectives and plans and their actual implementation by various subsystems of the management system while ensuring a common goal-setting for all management subsystems. The subjects of controlling are internal and external processes, events of the economic entity, which directly impact achieving the goals. The objects of controlling are tools, technologies, and processes to ensure and coordinate management functions. From an organizational point of view, controlling acts as a structural element of the management system of an economic entity, which performs functions under internal local acts. Currently, in conditions of rapid changes in external and internal factors affecting the activities of an economic entity, controlling can be used as a methodological, organizational, and information support, ensuring the improvement of management efficiency and achievement of the planned objectives of its activities. The analysis of the main directions of controlling shows that the objectives of improving the management system and increasing its efficiency, especially in the public sector, most fully meets the objectives of controlling, focused on the integrated coordination of the management system. In this direction, controlling provides assistance and feedback of the whole management system for the formation and functioning of information support for decision-making and coordination of planning, budgeting, monitoring, and analysis. Controlling also provides an objective view of the activities of an economic entity in different periods; a comprehensive approach to the timely identification of potential risks and solving emerging problems; assessment of the possibility of achieving the goals, considering the projected external and internal factors. An important condition for the effective operation of the controlling system is a high level of development of methodological tools and analytical apparatus: competition analysis, scenario development, SWOT-analysis, budgeting, ABC-analysis, XYZ-analysis, and break-even analysis.

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Methodological tools of controlling are universal and can be used in different spheres of activity: • Strategic analysis, the purpose of which is to make the long-term management decisions; • Competitive analysis, the purpose of which is to develop solutions and mechanisms to ensure the competitive advantage of the economic entity; • Forecasting involves the development and assessment of the possible application of scenarios of events, which aims to choose the most successful scenario based on the analysis and evaluation of the dynamics of predictive indicators; • SWOT analysis determines the strengths and weaknesses of the research object, which are the management decisions or facts of the economic life of the economic entity; • GAP analysis aims to adjust the pricing policy based on the assessment results of the dynamics of demand for the relevant goods, works, and services. Optimization of pricing policy as a target focus is relevant for economic entities of the public sector in the provision of paid services in extrabudgetary activities; • CVP analysis allows making managerial decisions based on the assessment of the dynamics of the three key indicators: the costs; the volume of products manufactured, goods sold, and services rendered; revenue or income received; • Budgeting is an element of planning based on the definition of quantitative criteria and qualitative characteristics of the expected results of economic life; • ABC analysis involves ranking customers and their stratification, that is, the formation of groups of customers with similar characteristics. The results of the ABC analysis allow assessing the potential demands of individual groups of customers and developing mechanisms to meet them; • Benchmarking is based on the use of tools to compare the object of research with best practices and benchmarks. After considering the methodological tools of the controlling system, we believe that the set of methods, techniques, and procedures is designed to achieve the target strategy subsystems of the controlling system. Having analyzed the views of the scientific community on the system of controlling, it is necessary to define the conceptual approach to the system of controlling in the public sector as a new concept of the development of managerial decisions. It is appropriate to consider controlling in the public sector as information, analytical, methodological support of strategic planning, budgeting, and control, as the main directions of controlling for management and other decisions

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E. A. Fedchenko et al.

Coordinating function • Development of methods to coordinate strategic and operational planning in the field of functional tasks. Coordinating function consists in setting up management functions based on controlling system to achieve the goals of the economic entity and coordinate all types of its activities to achieve the best results at the lowest cost. Accounting function • The information channel of the accounting function is a permanent, coordinated system of organizing and providing accounting (financial), management, and analytical reporting and planning information in the form of information, data, and indicators. Control function • Controlling function is used when comparing planned and actual values to measure and assess the degree of goal achievement, establish acceptable limits for deviations from the set parameters, interpret the causes of deviations, and develop proposals for their reduction. Informational function • Performing the information function, controlling forms an information channel, provides management with a full range of financial and related information for the management of budget funds, financial planning (budgeting), regulation, monitoring, and making the appropriate financial decisions Fig. 1 Functions of the controlling system. Source Compiled by the authors Fig. 2 Stages of creation of the controlling system. Source Compiled by the authors

1. Goal-setting

2. Realization of the goals through the set tasks

3. Defining functional areas

4. Defining the corresponding functions

5. Creating a toolkit

6. Obtaining results

in the organizations of the public sector. In this case, the goal-setting of the controlling system depends on the type of organization of the public sector. If we consider the system of controlling in the state bodies, the main purpose of its implementation is the effective execution of budgetary powers in the performance of state functions. The purpose of controlling in public non-profit organizations is determined by the types of activities in the performance of public services (works) and is the effective and targeted use of sources of financial support and a positive financial result from the performance of the state task. With regard to public commercial organizations, the purpose of the controlling system is to assess the profit from the core business. The achievement of the goals is realized by setting objectives, which are divided into objectives of the accounting system, planning system, the system of information support, and control and analytical support system. Tasks are implemented by functional and professional areas: information, organizational, administrative, accounting, and contractual relations; personnel, audit, planning, financial, and legal. Functional and professional areas of an economic entity interact with the established functions of controlling:

coordinating, accounting, monitoring, and information (Fig. 1). The implementation of established objectives and functions of controlling is carried out through the creation of information and methodological support. Based on the established conceptual approaches to the system of controlling in the public sector, implemented in the goal setting, types of controlling, tasks, and functional areas, we form the stage of the system of controlling (Fig. 2). Summing up, we can state that the system of controlling in the public sector is information, analytical, and methodological support of strategic planning, budgeting, and control, as the main areas of controlling for management and other decisions to implement strategic objectives.

5

Conclusion

The purpose of the system of controlling in the public sector is to ensure the effective and targeted use of budgetary funds and the effective execution of budgetary authority. The achievement of the goal is realized through the tasks of the

Conceptual Approach to the System of Controlling in the Public Sector

accounting system, planning system, information support system, and control and analytical support system. The main functions of controlling include coordinating, accounting, monitoring, and information functions. The objectives of improving the management system and increasing its efficiency, especially in the public sector, are most fully met by controlling, focused on the integrated coordination of the management system.

References Becker, K., & Weise, F. (2002). Control over activities in the field of higher education. In R. Gleich, K. Meller, U. Seidenshwarz, & R. Stoi (Eds.), Konrollingfortschritte. Vahlen Verlag. Danilochkina, N. G. (Ed.). (2001). Controlling as an enterprise management tool. Audit; UNITY.

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Falko, S. G. (2008). Controlling for managers and specialists. Finance and Statistics. Falko, S. G., Volochienko, V. A., & Vasiliev, S. V. (2019). Controlling: Preparation of management decisions in real-time. Association of Controllers. International Controlling Group. (2012). Controlling process model: A guideline for describing and designing controlling processes. Retrieved from https://www.igc-controlling.org/fileadmin/down loads/Standards/Controlling_Process_Model.pdf. Accessed Sept. 21, 2021. Ponomareva, E. V. (2012). Controlling at the enterprise: A textbook. Publishing House of St. Petersburg University of Management and Economics. Sheshukova, T. G., & Gulyaeva, E. L. (2014). Theory and practice of controlling. Finance and Statistics. Zhidkova, E. A. (2017). Development of accounting and analytical concept of controlling: Theory and methodology. Publishing House “Scientific Library.”

Sustainable Development Based on Knowledge Sharing: An International Aspect (A Review of the Problem) Tatyana L. Myagkova , Olga V. Beliaeva , Sergey V. Istomin , Olga B. Mizyakina , and Iuliia V. Panko

Abstract

JEL Classification

The COVID-19 pandemic has exacerbated the issue of sustainable development for the entire global community. More than ever, the essence of the concept of development that meets the needs of the present generation without compromising the ability to meet the needs of future generations is vital. One of the key goals of the fight against the pandemic, the UN has proclaimed a partnership for sustainable development, which implies the unification of the efforts of all participants in the process: governments, the private sector, civil society and ordinary people around the world. Recent history has shown that no country can overcome this pandemic alone, and international cooperation and knowledge sharing on key human issues to sustain global resilience and development is critical.

F6

Keywords

Sustainable development International cooperation

..

Knowledge economy Knowledge exchange

.

T. L. Myagkova (&) . O. V. Beliaeva Volga Region Cooperative Institute (Branch) of Russian University of Cooperation, Engels, Russia e-mail: [email protected] O. V. Beliaeva e-mail: [email protected] S. V. Istomin Volga Interregional Branch of the Federal State Budgetary Institution “VNII Truda” of the Ministry of Labor of Russia, Saratov, Russia O. B. Mizyakina Saratov State Technical University named after Gagarin Yu. A., Saratov, Russia

1

. . . . O1

O3

O5

Q5

Introduction

Sustainable development of modern economic and social systems is based on innovations that are generated by new knowledge (Voronina et al., 2019). The knowledge market (Zhulina, 2016) is increasingly outpacing the market of material resources and requires a systemic organization of sustainability management processes in response to high rates of changes in technology, economy, and environment. The ongoing changes foreground the need to create an effective decision-making system focused on the preservation of the environment and resources to meet the needs of modern and future generations, and the realization of the development potential. The UN Declaration on Sustainable Development has become a comprehensive mechanism of sustainable development, as it accumulated the key principles of sustainable development for the whole world community. A special emphasis is made on knowledge as a source and guide of innovations to improve the quality of life of people without disturbing the ecosystem. As a result, sharing knowledge, new technologies and information resources can solve the problem of sustainable development of future generations and the ecosystem. Any country or even a group of countries cannot cope with such a problem alone. The pandemic has exacerbated many problems. Best management practices imply active participation of all members of the world community, states, governments, businesses, local communities, and citizens in the preservation of the current generation of citizens and sustainable development.

I. V. Panko Russian University of Transport (Moscow State University of Railway Engineering (MIIT), Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_24

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Methodology

In our opinion, the system-synergetic approach most accurately reflects the topic of this research. Sustainable development implies the establishment of a relevant model of countries and regions based on self-organisation, i.e. synergetics. “Synergetics is a theoretical description of the ways of cooperation, coherent, mutually agreed behaviour of natural and human substances in complex integrities” (Knyazeva & Kurdyumov, 2007, p. 203). And the instability of the global situation caused by the shattering impact of the pandemic and the creative and progressive nature of universal digitalisation objectively necessitates the activation of mechanisms of self-organization based on new knowledge. Systems can maintain their sustainability due to changes in parameters, which brings us to understanding sustainability as the dynamic property of systems (Dmitriev & Frumin, 2004). Le Chatelier adheres to the same position, formulating the principle of sustainability of systems as follows: the system’s equilibrium is disturbed under the influence of the external environment, which results in such a shift of the equilibrium under which the effect of external influence is minimised (Danilov-Danilyan et al., 1994; Kotlyakov et al., 1993). The broad variety of system elements i.e. its complexity is one of the important conditions and characteristics determining sustainability (Synergetics: man & society, 2000). Complexity, i.e. the multiplicity of elements does not provide sustainability; it is the optimal multiplicity of elements that matters since it provides a flexible and dynamic development of the system. Exceeding the optimum leads to an increase in internal conflicts, internal unsustainability (Knyazeva & Kurdyumov, 2002). Hence, the sustainability of a complex system is achieved through the best possible multiplicity of its elements and their dynamism toward the equilibrium condition under the influence of external changes. Sustainable development, i.e., the transition of the system from the current quality to a new quality, can be understood as the feedback of the system to the modification of conditions of existence—negative and/or positive. The balance of negative feedback and positive feedback determines the success and potential of the development of the system. Moreover, negative feedback (taking the line of maintenance of available trends of system development) provide sustainability of the system, preservation of previously achieved characteristics, while positive feedback (accepting new trends, taking the line of strengthening them) contribute to the formation of new properties and parameters of the system, i.e. provide the transition of the system to the self-development mode.

Only when the system includes both functional mechanisms one of which provides sustainability, and the other one provides development of the system, the system can exist in a lengthy sustainably developing self-organization process. Sustainable development implies the harmonisation of relations between humanity and the biosphere, human development in accord with the laws of nature, which becomes possible subject to the introduction of deliberate restrictions on resource consumption based on the capabilities of the biosphere (Chepurnykh & Novoselov, 1996; McLaren et al., 1998). Sustainable development of the economy implies an intensive type of growth, with qualitative changes and spatial expansion (Reimers, 1994). It is obvious that positive feedback and negative feedback, as well as self-organisation processes, are based on information about the dynamic pattern and new knowledge. Drucker (1969) formulated the concept of “knowledge economy” in his book “Age of Discontinuity”, where the knowledge of people becomes a determinative globally significant resource. In the following, the conceptual construct of the knowledge economy was developed by such authors as (Drucker, 2002; Masuda, 1997; Sveiby, 1997); as a result, such concepts as “knowledge worker”, “knowledge acquisition”, “knowledge engineering”, “knowledge-based systems” etc. become the popularly accepted management definitions. The “Report on human development in Russian Federation” notes that knowledge economy—“…is the economy that creates, disseminates and uses knowledge to ensure its growth and competitiveness. This is an economy where knowledge enriches all industries, all sectors, and all participants in economic processes. It is an economy that not only uses knowledge in various forms but also creates it in the form of high-tech products, highly qualified services, scientific products and equipment” (Synergetics: Man, society, 2000, p. 19). The development of the “knowledge economy” is largely determined by information and communication technology as well as the influence of global social problems. The comparative understanding of the categories “knowledge” and “information” is important. We agree with V. Berkov in that “To become knowledge, information must be subjectified, that is, assimilated by the consciousness of a cognizer. Any text contains information; turning it into knowledge means comprehending it” (Berkov, 2004, p. 21). Further, information that can be considered knowledge must pass through the human consciousness, i.e. undergo the subjectification process, have the quality of usefulness (Krishtafovich, 2017). The acceleration of information communications, the constant updating of information

Sustainable Development Based on Knowledge Sharing: An International Aspect (A Review of the Problem)

arrays, and the introduction of new technologies generate an alternative “information society” concept—“knowledge society”. Thus, the future of countries and metropolises depends on their ability to extract and redistribute knowledge (Camagni & Capello, 2013; Florida, 2007; Porter, 1990).

3

Results

In the framework of Sustainable Development Goal 17— Partnership for sustainable development—the UN has identified 19 main problems, three of which are directly aimed at achieving sustainability based on knowledge sharing. 17.6 Expand cooperation and knowledge sharing in science, technology and innovation. Indicators: 6.1. The number of agreements and cooperation programmes in science and/or technology between countries; 6.2 Broadband Internet connectivity per 100 population. 17.7 To promote the dissemination of environmentally friendly technologies in developing countries. Indicators: 7.1. The total amount of approved financing for developing countries to promote the development, transfer and dissemination of environmentally friendly technologies. 17.8 To promote the progress of science, technology and innovation for the least developed economies. Indicators: 8.1. The share of Internet users. As a result, the problem of expansion of cooperation and knowledge sharing in science, technology and innovation is being solved through the organisation of trilateral regional and international cooperation in these fields and knowledge sharing on mutually agreed terms, using the global device of promotion of technology transfer. For example, let us examine these processes and their results in the framework of cooperation between Russian and foreign scientific organizations. The Ministry of Education and Science of the Russian Federation acts as a state customer and/or is responsible for financing, coordination of programs of cooperation between Russian and foreign scientific organisations (Semin et al., 2020, p. 20). Such cooperation programmes are ambitious, they are efficiently implemented and generate the desired outcomes. 1. Federal Target Program “Research and development in the priority lines of development of the science and technology sector in Russia for the period of 2014–2020” (event 2.1 “Pursuing research in the framework of

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international multilateral and bilateral cooperation”, and event 2.2 “Supporting research in the framework of cooperation with the EU member states”). As of 2019, joint research projects were carried out with organizations from 23 countries across the world in the framework of event 2.1, and joint research projects were carried out with organizations from 26 countries across the world in the framework of event 2.2. The main partners were Germany, India, China, France, and Switzerland (The system of expertise of the Directorate of Scientific and Technical Programs). 2. State Program “Global education”. Participants of the Global Education Programme served an internship in the universities of 32 countries across the world, including Australia, the United Kingdom, the United States, Sweden, and other countries. 3. Federal Project “Export of education”. As of 2019, citizens of 162 countries from all over the world were studying in Russian universities. Most international students were from Kazakhstan, China, Turkmenistan, and Uzbekistan (Ministry of Education and Science official website). 4. “Mega-grants” Programme The top-level scientists from a total of 35 countries worldwide have been involved in the framework of the Programme, including Germany, Canada, China, the United States, Sweden, and other countries. 5. The programme of outgoing international academic mobility. Competitive selections for short-term interning in organisations of 40 countries across the world, including China, Slovakia, France, and other countries have been held in the framework of the Programme. 6. Management of complex overseas expeditions. In 2019, researchers from Argentina, Vietnam, Germany, China, Poland, the United States, Sweden, and South Korea participated in expeditions. The objective of the promotion of dissemination of environmentally friendly technologies in developing

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countries must be carried out on special and preferential terms. This is due to development disparity and differences in the access to innovations and accessibility of their implementation. Environmentalisation processes are occurring much slower than the rate of growth of environmental issues. And the high cost of green technologies requires significant means. According to the World Economic Forum, the formation of global infrastructure, mainly in developing economies, requires the investment of 5.7 trillion dollars (World Economic & Social Survey, 2011). Environmentally focused sustainable development necessitates the organisation of partnership of the state, the business, and non-governmental organisations. Today, there are about 4 thousand public–private partnerships aimed at solving the UN Sustainable Development Goals. The Sustainable Development Sector started working on the Moscow Exchange in 2019 in Russia; it is the first platform in the financial market to support environmental projects where seven issues of green bonds have been underwritten in 2020 for an overall amount of 7.55 billion roubles and 500 million Euros (Green financing in Russia: Goals and contradictions of the modern market, p. 20). Patent activity acts as one of the indicators of the development of green technologies and shows the best results in the field of renewable power generation and air pollution monitoring. Developed (and some rapidly developing) economies reorient their policy to green development, stimulate the development and implementation of environmental technologies, direct educational programmes for the formation of environmental awareness, and conduct large-scale awareness campaigns. Today, many environmental projects are developed and implemented in Russia and abroad. The perfect examples of international environmental projects with the mobilization of financial and human resources and possibilities of various forms of participation are presented below. 1. World Wildlife Fund (WWF—wildlife protection). Participation: purchasing a charity certificate, gifts on the website of the organisation. 2. Treeography social responsibility project (Russian Internet service)—reforestation. Participation: money contributions from individuals and companies. 3. The Great Green Wall Programme—planting of greenery in Africa. Participation: informational, material and personal assistance. 4. Social responsibility project “This is how it should be done from now on”—teaching the basics of sustainable consumption. Participation: application of new rules of everyday life in real life based on education.

T. L. Myagkova et al.

5. Charitable project “Collector”—a collection of things and recyclable materials for processing. Participation: donation, volunteering, posting on social networks. Among well-known international environmental projects implemented by the business, the following can be distinguished: 1. The programme “Share with us” from the Coca-Cola Company—transition to fully recyclable packing. 2. Jeans Revision sustainable consumption project—bags made from recycled old jeans. 3. IKEA—solutions to reduce water and electricity consumption. 4. The programme “Let’s help taiga together” from Natura Siberica—the restoration of cedar forestlands in Siberia. 5. POLYARUS brand (Russia)—manufacture of durable and handy bags from a poorly degradable material instead of burning it. 6. An ambitious programme for a social investment of Sibur Company “Formula of Good Deeds”—support of various environmental programmes at the regional level. Furthermore, ExxonMobil, one of the largest oil-and-gas companies in the world, has been widely implementing innovative IT solutions in the framework of its programme for environmental impact mitigation. Project Astra, being developed with the participation of the University of Texas, involves the introduction of a network of sensors that allows responding to leakages of methane—one of the most common greenhouse gases. And these are merely solitary examples. Thus, many large foreign companies currently realize their environmental initiatives with the use of digital technologies that make it possible to remotely manage operation facilities and monitor their operation. According to the research of the Global e-Sustainability Initiative (GeSI), the use of ICT will make it possible to reduce CO2 emission by 20% by 2030 (it will be at the level of 2015) and to save more than 300 trillion litres of water and 25 billion barrels of oil per year (Investments in infrastructure, 2020, p. 20). Environmental issues are similar for the world community, with emphasis on the special aspects of a particular territory and the level of development of countries; thus, environmental initiatives usually require a coordinated decision, and domestic projects fit into the overall architecture of the mechanism of achievement of the Sustainable Development Goal, i.e. the organisation of living, in which pollution emissions should not exceed the assimilation capacity of ecosystems. The opportunity for everyone to participate, regardless of country of origin, is what’s important here. And international projects, based on

Sustainable Development Based on Knowledge Sharing: An International Aspect (A Review of the Problem)

innovative environmental solutions and joint efforts, can not only restore and maintain environmental sustainability but also maximally reduce the negative man-made impact. The progress of science, technology and innovation for the least developed economies and expansion of highperformance technologies, including information and communication technologies, has been promoted for the last decade thanks to these digital technologies. At the end of 2020, there were 4.66 billion active Internet users in the world (Digital 2021: Global Overview Report, 2021). The increase in the number of active Internet users exceeds the increase in the number of the total population in the world more than seven times (Internet World Stats, 2021). Internet access varies in different regions, however. In Asia and Africa, Internet coverage is 30–40%, while in Europe and North America it is almost 100%. There were 124 million Internet users at the beginning of 2021 in Russia. In the period from 2020 to 2021, the number of Internet users in the Russian Federation increased by 6.0 million (+ 5.1%), and the Internet connectivity level in Russia in January 2021 is 85.0% (Internet and social networks in Russia in 2021—All statistics, 2021). During the pandemic, there was a forced transition to remote working, including for international scientific cooperation. Although many representatives of the academic community rightly believe that face-to-face communication is the key condition for the efficiency of scientific cooperation, modern common scientific projects, academic conferences and sharings of experience become high-yielding in the online format as well. The creation of scientific web portals by the example of the European Commission, form efficient platforms for data exchange and scientific findings. The significance of such platforms and their contribution to sustainability are confirmed by the fact that the scientific web portal of the European Commission has accumulated scientific research on coronaviral infection from all regions of the world. Therefore, the remote form of scientific cooperation allows involving a more extensive audience in scientific exchange and obtaining a higher synergetic effect, bringing the self-organisation of the scientific cooperation system to a higher level. The educational cooperation between Russia and the EU is based on the principles of the Bologna Process of the Council of Europe, where Russia has been registered as a member since 2003. The following main forms of globalization and internationalization of higher education and science emerged: student mobility, mobility of scientific and academic staff, internationalization of curriculums, and transnational education. More than 1.4 million students from all over the world come to Europe every year to receive higher education. In 2019, there were about 298 thousand foreign students in Russian universities. Among foreign specialists employed in Russian universities, 1,880 people

125

are citizens of CIS countries, 1,636 people are citizens of the EU member states or the United States. At the same time, if representatives of near-abroad countries prevail among the foreign engineering and technical personnel, then representatives of the EU member states and the United States prevail among the higher-education teaching personnel (Semin et al., 2020, p. 61–62).

4

Conclusions

Thus, knowledge sharing, in other words, the transfer of knowledge at the domestic level and at the international level, occurs through the implementation of sustainable development projects for the achievement of economic, social, and environmental goals. The knowledge-sharing process is implemented through the trade of knowledge (purchase and sale of intellectual rights, education on a fee paid basis), and, thanks to digitalisation, through the Internet, publication of scientific findings, academic literature, conferences, through the inflow of new technologies in the implementation of innovation projects, sharing scientific knowledge and mobility of participants in the educational system, through technical support and cooperation in the field of environmental and scientific projects. On the other side, knowledge sharing processes establish the potential for sustainable development.

References Berkov, V. F. (2004). Philosophy and methodology of science (p. 336). Novoe znanie [New Knowledge]. Camagni, R., & Capello, R. (2013). Regional innovation patterns and the EU regional policy reform. Growth Change, 44, 355–389. Chepurnykh, N. V., & Novoselov, A. L. (1996). Economics and ecology: Development, catastrophes (p. 272). Nauka [Science]. Concept/Project on the History and Sociology of S&T Statistics. (2008). Working Paper. Montreal, 37, 4–8. Danilov-Danilyan, V. I., Gorshkov, V. G., Arsky, Y. M., & Losev, K. S. (1994). The environment between the past and the future: The world and Russia (experience of ecological and economic analysis) (p. 133). VINITI. Digital 2021: Global Overview Report (2021). https://datareportal.com/ reports/digital-2021-global-overview-report. Accessed: Oct. 14, 2021. Dmitriev, V. V., & Frumin, G. T. (2004). Ecological rationing and sustainability of natural systems (p. 294). St. Petersburg. Drucker, P. F. (1969). The age of discontinuity: Guidelines to our changing society. Heinemann. Drucker, P. F. (2002). Tasks of management in the 21st century (p. 257). Williams. Florida, R. (2007). Creative class: People who change the future. Classic XXI (in Russian). Green financing in Russia: Goals and contradictions of the modern market. https://trends.rbc.ru/trends/green/5e9f373a9a79479d48105 3d2. Accessed: Oct. 14, 2021.

126 Internet and social networks in Russia in 2021—All statistics (2021). Retrieved from https://www.web-canape.ru/business/internet-isocseti-v-rossii-v-2021-godu-vsya-statistika/. Accessed: Oct. 12, 2021. Internet World Stats (2021). Retrieved from https://www. internetworldstats.com/stats.htm. Accessed: Oct. 14, 2021. Investments in infrastructure. (2020). Ecology. Analytical review. https://infraone.ru/sites/default/files/analitika/2020/investicii_v_ infrastrukturu_ekologiya_2020_infraone_research.pdf. Accessed: Oct. 14, 2021. Knyazeva, E. N., & Kurdyumov, S. P. (2002). Fundamentals of synergetics. Modes with aggravation, self-organisation, tempo worlds (p. 414). St. Petersburg. Aleteya. Knyazeva, E. N., & Kurdyumov, S. P. (2007). Synergetics: The nonlinearity of time and the landscapes of coevolution (p. 272). Com Book. Kotlyakov, V. M., Trofimov, A. M., Khuzeev, R. G., Borunov, A. K., Gnedenkov, L. N., & Seliverstov, Y. P. (1993). A geographical approach to the theory of catastrophes. Bulletin of the Russian Academy of Sciences. Geographical Series, 5, 7–17. Krishtafovich, A. N. (2016; 2017). Improving the effectiveness of the knowledge worker. Banking Bulletin, 12, 62–67; 1, 67–71. Masuda, E. (1997). Information society as post-industrial society (p. 587). McLaren, D., Bullock, S., & Yousuf, N. (1998). Tomorrow’s world. Britain’s share in a sustainable future (p. 206). Earthscan. Ministry of Education and Science official website. https://minobr nauki.gov.ru/ru/activity/statan/stat/index.php. Accessed: Oct. 10, 2021.

T. L. Myagkova et al. Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review, 68(2), 73–93. Reimers, N. F. (1994). Ecology (theories, laws, rules, principles and hypotheses) (p. 367). Molodaya Rossiya [Young Russia]. Report on the development of human potential in the Russian Federation for 2004. (2004). In S. N. Bobylev (gen Ed.). Moscow: The Whole World, 198. Semin, A. A., Ilina, I. E., Vasilyeva, I. N., Andrianov, V. L., Malakhov, V. A., Pokrovsky, D. S., & Rebrova, T. P. (2020). Development of the mechanism of scientific diplomacy in the Russian Federation (p. 72). IMG Print. Sveiby, K.-E. (1997). The new organisational wealth: Managing and measuring knowledge-based assets (p. 169). Berrett-Koehler. Synergetics: Man, society. (2000). Moscow: RAGS Publishing House, 342. The system of expertise of the Directorate of Scientific and Technical Programs. https://sstp.ru. Accessed: Oct. 10, 2021. Voronina, N. A., Zhulina, E. G., & Kuznetsova, I. V. (2019). Management of innovative development of socio-economic systems (p. 138). Amirit LLC. ISBN 9785001401650. World Economic and Social Survey 2011. (2011). Department of Economic and Social Affairs. United Nations, New York. Zhulina, E. G. (2016). International education market. Modern competitive development of economy and society: Materials of the II International Scientific and Practical Conference, Saratov, December 19, 2016 (pp. 84–89). Institute for Research and Development of Professional Competencies LLC.

New Functional Product as a Result of International Interaction Anna M. Admaeva , Anzhelika I. Rudneva , Alla E. Tarutina , Alexander M. Chuzhaikin , and Yuri O. Golovin

Abstract

Keywords

The paper examines the possibility of producing a new multi-component functional product based on processed milk using sourdough, blueberries, and pumpkin and reveals the expected nutritional value of a new product. The authors draw attention to the use of special technology to ensure the safety of raw materials in the creation of the product, emphasizing the benefits for consumers. The paper uses general scientific methods: collection and analysis of theoretical material, its classification, and processing. The authors also applied experimental laboratory research methods, which further allowed to make science-based conclusions and proposals for expanding the range of functional products and the successful development of cooperation in the Kaliningrad Region. The authors considered and analyzed the main aspects of biotechnology for obtaining a new functional product. The benefits of the nutritional value of the described product are disclosed. The choice of raw materials is justified. During the research, the authors identified problems of rational use of raw materials and obtaining optimal characteristics of the final product. A general characteristic of the technological scheme of production is given, and the directions of its improvement are suggested.

Functional yogurt product Biotechnological production scheme Ozonation Organoleptic indicators Amino acid composition Nutritional value

A. M. Admaeva (&) . A. I. Rudneva . A. E. Tarutina Kaliningrad Branch of the Russian University of Cooperation, Kaliningrad, Russia e-mail: [email protected] A. I. Rudneva e-mail: [email protected] A. E. Tarutina e-mail: [email protected]

. . .

.

.

JEL Classification

L66

1

. . . Q57

Q13

P13

Introduction

Under the conditions of dynamically developing internationalization and business cooperation, international cooperation in all spheres is particularly significant. The strategic partnership between the Russian Federation and the Republic of Kazakhstan serves as the basis for integration processes in the Eurasian Economic Union in all areas, including education and science (Government of Russian Federation, 2021; Government of the Kaliningrad Region, 2019; Tarasyuk, 2020). One of the priorities was the joint search for new forms of cooperation, including the exchange of promising developments in the segment of food biotechnology and technology of production of balanced functional foods. The Kaliningrad branch of the Russian University of Cooperation developed a technology for producing enriched yogurt drinks, which includes cow or goat milk, blueberries, and pumpkin (Rudneva, 2020). The symbiosis of the positive influence of sourdough microorganisms and the unique natural composition of berries and vegetables should help reduce gastrointestinal tract abnormalities and increase the immune status of a person.

A. M. Chuzhaikin . Y. O. Golovin Kaliningrad Regional Customs, Kaliningrad, Russia e-mail: [email protected] Y. O. Golovin e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_25

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Materials and Method

Table 1 Pumpkin varieties presented by farms in Kaliningrad Name

All data used in this research was obtained through an inter-university exchange of scientific research, laboratory experiments, and publicly available sources (Internet resources, official websites of public authorities, materials of international and all-Russian conferences, etc.).

3

Photo

“Zhemchuzhina” (Cucurbita moschata)

Results

The research object was fermented cow and goat milk, as well as pumpkin and blueberries as enrichment products. Ozone treatment (ozonation) was chosen to ensure the safety of the basic raw material. Ozone treatment is an advanced technological operation that allows purifying the basic ingredients without additional costs. Ozonation is based on the oxidizing, disinfecting, and bactericidal properties of ozone. Ozone inactivates viruses by partially oxidizing their shell. The ability of the virus to divide and attach itself to body cells is impaired. When ozone comes in contact with microorganisms, including fungi, their membrane structure is locally disrupted, which kills them or prevents them from dividing. Ozone destroys the redox system of bacteria and their protoplasm. Ozone-degradable chemicals are pesticides, herbicides, oil and its derivatives, detergents, sodium salts, sulfur, nitrogen, and chloride compounds that are carcinogens. The content of asbestos and heavy metals is reduced. Ozone forms non-reactive oxides (oxides of iron, manganese, aluminum, etc.) with metals. Oxides precipitate out and are easily removed by filtration (Esengalieva et al., 2014). Thus, the use of ozone as a raw material cleaner is relevant. Pumpkin is a valuable but underutilized raw material in the Kaliningrad Region. The volume of its production by farmers is not statistically recorded. The problem of rationally selling a unique and inexpensive product arises systematically. There are a total of 27 species of cucurbits, three of which are most often found in farms and private farms in the Kaliningrad Region—squash (Cucurbita pepo), musky squash (Cucurbita moschata), and autumn squash (Cucurbita maxima) (Vinevsky et al., 2017). The varieties of pumpkins sold in Kaliningrad markets are shown in Table 1. Pumpkin is a useful vegetable crop; it is not fastidious and gives a great harvest. It contains a significant amount of B vitamins, vitamins PP, K, and E, as well as provitamin A, which gives reason to create functional products based on it.

“Dachnaya” (Cucurbita pepo)

“Vitaminnaya” (Cucurbita moschata)

“Volzhskaya seraya” (Cucurbita maxima)

Source Compiled by the authors based on own research

The Almaty Technological University (Kazakhstan) developed a scheme of adapted technology of production of yogurt drink on the set of equipment IKPS-0103. The basic sequence of operations is shown in Fig. 1. Yogurt drinks produced this way have insufficiently pleasant organoleptic characteristics and have low nutritional value. Musky squash growing in the Kaliningrad Region have a more pronounced organoleptic taste. Thus, their use, as well as the addition of blueberries, eliminated the disadvantages of yogurt drinks developed by Kazakh scientists. Figure 2 shows the production technology of the new yogurt drinks. The recipe for the drink is as follows: goat or cow milk— 75%; pumpkin—15%; blueberries—5%; skim milk starter— 5%. Comparative analysis of organoleptic characteristics of samples of yogurt drink “Dyntyk” (drink developed by scientists from Kazakhstan) and experimental sample (developed at the Kaliningrad branch of the Russian University of Cooperation) yielded the following results:

New Functional Product as a Result of International Interaction

129

Fig. 1 Adapted technology for the production of yogurt drinks on a set of equipment IKPS-0103. Source Compiled by the authors based on Vinevsky et al. (2017)

1. Appearance, consistency—homogeneous mixture of light orange color, with slight separation/homogeneous mixture of light lilac color; 2. Taste—pleasant sweet taste with melon and pumpkin sensation/sweet taste with pronounced pumpkin and berry flavor; 3. Odor—the aroma, characteristic of the mixture of incoming components, the melon aroma is clearly felt/berry aroma is felt, which mutes the smell of pumpkin. The authors also determined changes in the amino acid composition. The results are presented in Table 2.

Thus, the new type of yogurt drink has pronounced pleasant organoleptic characteristics and high nutritional value. In particular, it is rich in histidine, leucine, and lysine.

4

Conclusion

Farmers and individual entrepreneurs face the task of rational use of grown products to maximize profits. Joint work in the field of scientific research of the production of enriched functional products of the Russian Federation and Kazakhstan will contribute to the development of consumer cooperation in the Kaliningrad Region.

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Fig. 2 Biotechnological scheme for the production of a new functional beverage. Source Compiled by the authors based on own research

Table 2 Mass fraction of amino acids, g/100 g

Amino acid

Daily norm

Yogurt drink “Dyntyk”

Test sample

Lysine

3–5

0.085

0.119

Tyrosine

3–4

0.065

0.093

Phenylalanine

2–4

0.056

0.090

Histidine

2

0.058

0.068

Leucine and isoleucine

4–6 g + 3–4

0.146

0.220

Methionine

2–4

0.044

0.075

Valine

4

0.044

0.068

Proline

5

0.121

0.194

Threonine

2–3

0.061

0.097

Serine

3

0.073

0.107

Alanine

3

0.048

0.073

Glycine

3

0.022

0.039

Source Compiled by the authors based on own research

New Functional Product as a Result of International Interaction

References Government of Russian Federation. (2021). Order “On signing the Comprehensive program of economic cooperation between the Government of the Russian Federation and the Government of the Republic of Kazakhstan for 2021–2025” (April 27, 2021 No. 1075-r). Retrieved from http://www.consultant.ru/cons/cgi/ online.cgi?req=doc&base=EXP&n= 767441#dKVWQqSSuzDdvU031. Accessed Oct. 10, 2021. Government of the Kaliningrad Region. (2019). Resolution “On providing support to agricultural producers within the framework of the regional project ‘Creation of a support system for farmers and development of rural cooperation’” (May 1, 2019 No. 327). Retrieved from http://publication.pravo.gov.ru/Document/View/ 3900201905080001. Accessed Oct. 11, 2021. Esengalieva, T. D., Abzhalelova, A. A., Admaeva, A. M., Alimardanova, M. K., Baybolova, L. K., & Kulazhanov, T. K. (2014). Current trends in milk production and processing in the Republic of Kazakhstan. Agricultural Sciences and the Agro-Industrial Complex at the Turn of the Century, 5, 270–275.

131 Rudneva, A. I. (2020). Relevance of labeling of dairy products under modern conditions. Synergy of Sciences, 45(3), 290–297. Retrieved from http://synergy-journal.ru/archive/article5251. Accessed Oct. 13, 2021. Tarasyuk, S. V. (2020). Cooperation of small and medium-sized businesses and self-employed persons to develop a cluster initiative. Methodological manual on the creation and development of cooperation of small and medium-sized businesses and self-employed persons. Minsk, Belarus. Retrieved from http:// economy.gov.by/uploads/files/msb-recommend/SME-Cooperationfor-Clusters.pdf. Accessed Oct. 13, 2021. Vinevsky, E. I. Vinevskaya, N. N., & Martyuk, A. A. (2017). Problems of post-harvest handling and processing of pumpkin. In V. A. Salomatin, N. I. Larkina, E. V. Gnuchikh, G. P. Shuraeva, & T. V. Filimonova (Eds.), Innovative research and development for scientific support of production and storage of environmentally safe agricultural and food products: Proceedings of the II International Scientific and Practical Conference (pp. 290–293). Krasnodar, Russia.

Anti-corruption Strategies: Forms and Mechanisms of Participation of Civil Society Institutions Vera R. Averyanova , Svetlana V. Novikova , Tatiana V. Pilyugina , Svetlana G. Boychuk , and Svetlana V. Pomazan

Abstract

1

The paper aims to conduct a comprehensive analysis of the legal regulation of anti-corruption mechanisms in the field of target settings of the Presidential decree “On the national anti-corruption plan for 2021–2024” (August 16, 2021 No. 478). The primary research methods are the methods of theoretical analysis, analysis and interpretation of normative legal acts, the formal-legal method, and the comparative-legal method. A substantial legal platform has been created in the fight against corruption. Nevertheless, anti-corruption measures are insufficient both at the federal and regional levels. The fight against corruption is a complex and responsible task for Russian and international organizations. In this regard, the decree “On the national anti-corruption plan for 2021–2024” deserves special attention. The authors propose ways to improve preventive measures to combat corruption at the national and regional levels. Keywords

..

..

Corruption Legislative problems Mechanism of counteraction National security Legal regulation JEL Classification

KO

. . . . K4

K14

K42

Z18

V. R. Averyanova (&) . T. V. Pilyugina . S. G. Boychuk Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] S. V. Novikova . S. V. Pomazan Kuban State Agrarian University, Krasnodar, Russia

Introduction

The research relevance is determined by the need to improve anti-corruption measures in the field of political and socio-economic transformations in Russia because the problems of combating corruption are currently dictated by an extremely high degree of its public danger. The scientific literature devoted to the development of corruption in the country indicates that the activities of state and local authorities today are significantly undermined by corruption, violating relevant legislation, shaking the authority of public authorities, and often causing significant material damage. Simultaneously, the rights and legitimate interests of citizens or organizations and the interests of the entire society and the country are infringed. Reformers who implemented political and socioeconomic transformations in Russia at the end of the twentieth century, smoothing out the acute corners of developing corruption, referred to this process as a certain “lubrication for the transition period” (Mironova, 2019), especially in the economic field. Simultaneously, the reformers could not immediately take care of further corruption restrictions and rebirth in self-reproduction of the substitution of legal ideology and legality in the public service system. In this regard, society today is faced with a serious social problem that poses a huge socio-economic threat and hinders the effective development of the state. To solve this problem, one must increase the level of interaction between government bodies and civil society institutions, as the highest form of independent organization of the people. Without this step, it is impossible to ensure their stability and development, the rights and interests of society. In this vein, a substantial elaboration of anti-corruption mechanisms for the protection of society and the state is required, allowing one to introduce certain preventive measures to eliminate the conducive conditions that give rise to corruption. Therefore, the paper aims to conduct a comprehensive analysis of the legal regulation of anti-corruption

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_26

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mechanisms in the sphere of promulgation of the Presidential decree “On the national anti-corruption plan for 2021– 2024” (August 16, 2021 No. 478).

2

Methodology

The theoretical and methodological basis of the research is based on the application of an institutional approach that allowed us to consider the role of anti-corruption measures, regulated by a system of norms and rules, in the corruption counteraction. The institutional approach allowed determining the place and role of corruption and the fight against it in the development of the country and its regions. The research methods used to achieve this goal were the traditional analysis of documents and analysis of regulatory support on the research topic, as well as statistical methods, the method of interpretation of regulatory legal acts, and the formal-legal method. When formulating the recommendations, we used a modeling method and a comparative-legal method. The information base of the research includes (1) the Presidential decree “On the national anti-corruption plan for 2021–2024” (August 16, 2021 No. 478) (Presidential Executive Office, 2021), which became the program of the anti-corruption policy of the country, (2) scientific literature and periodicals, and (3) analytical data. The research novelty lies in conducting a comprehensive analysis of approaches and methods in the mechanism of legal regulation of anti-corruption in Russia. Specific solutions include amendments to federal legislation and the laws of the constituent entities of the Russian Federation as part of preventive anti-corruption measures.

3

Results

In this regard, the most important area of activity of the Russian government is the use of anti-corruption measures within the framework of the legal mechanism for combating corruption, the development of the national system of anti-corruption measures, and the Presidential decree “On the national anti-corruption plan for 2021–2024” (August 16, 2021 No. 478) (Presidential Executive Office, 2021). Such a voluminous, significant, and relevant document provides for several major directions for implementing anti-corruption policy and minimizing corruption. The program proposed for execution is a program for action, a strategy of readiness for an effective fight against corruption by the entire civil society, the main indicator of the civility of the country, and a new political doctrine of the national security of the country.

Next, we addressed the issues related to the improvement of the system of prohibitions, restrictions, and duties in certain areas of activity. These are probably the most sensitive subjects for society. That is why V. V. Putin (Presidential Executive Office, 2021) put these issues in the first place in the document and considered them in the first section, making it possible to link the practice with the issues of staying in the civil service and other fields of activity and the expediency of observing the system of prohibitions, restrictions, and duties because this is the essential aspect in the life of society. There is a widespread practice associated with combining the position of the head of a municipality with a position in a local government body or the head of an institution or enterprise of this municipality. Sometimes, the income of such people is not considered, not to mention their past and present financial situation. This issue was raised by the President with the Government of the Russian Federation when developing alternative measures concerning restrictions for certain categories of persons when receiving gifts. Nowadays, the level of development of governmentsociety relations is full of factors of key “regulatory areas,” creating the ground for a variety of private interests of public servants. The personal interest of “bribe-takers,” aimed at obtaining monetary benefits, valuables, and other property or property-related services, pushes them to neglect the norms of morality and law, infringe on the legitimate interests of society. Such a situation reflects the essence of the illegality of the acts of civil servants related to corruption. Analyzing the object of corruption of the civil service, one can note that the number of corruption crimes in Russia increased by 16.5% in 20,201 compared to 2020 and amounted to 24.5 thousand. Figure 1 has become the highest for the past eight years. About half of corruption crimes (12.1 thousand) are due to bribes, the number of which increased by 27.4% (Petukhov & Ryabtseva, 2020). In every third case, the amount of the bribe did not exceed 10 thousand rubles. The number of petty bribes has increased by 26%. Most often, petty bribes (gifts or sums of money) in Russia are taken by police officers, as well as Receiving a bribe (Article 290 of the CC RF) 2018 2019 2020 2021

Fig. 1 Analysis of corruption crimes related to receiving a bribe. Source Compiled by the authors

Anti-corruption Strategies: Forms and Mechanisms of Participation of Civil Society Institutions

employees of the Federal Penitentiary Service, healthcare organizations, and educational institutions. Even for such small bribes, one can get a real punishment, up to a year in prison. Despite this, the amount of bribes varies from 5 hundred rubles to 2 million and more. There were more cases when people were convicted for small bribes than for big ones. Simultaneously, the amount discussed in the sentences did not exceed 1.5 million rubles (Portal of Legal Statistics of the Prosecutor General’s Office of the Russian Federation, 2021). According to the prosecutor’s office, most bribery cases were detected in Saint Petersburg, the Perm Territory, and the Stavropol Territory. However, Moscow has become the leader among Russian regions in terms of the number of detected bribery cases. The Republic of Tatarstan, the Moscow Region, the Republic of Bashkortostan, and the Krasnodar Territory also occupied top positions (Kabanov, 2011). The dynamics of corruption in the Krasnodar Territory show that every fourth person was involved in corruption relations. Basically, the degree of risk is occupied by the issues of property and land relations, public procurement, and privatization of state property. Taking into account the share of corruption crimes, the Volga Region appeared to be the leader among the federal districts (23.3%), followed by the Central Region (23.2%) and Southern Region (21.5%). The least number of criminal cases was found in the Far Eastern Federal District (5%) (Petukhov & Ryabtseva, 2020). On average, 95.2% of corruption-related crimes can be solved in Russia. However, this indicator applies only to cases when law enforcement agencies become aware of the bribery. After the economic crisis caused by the COVID-19 pandemic, following the noticeable recovery of the economy, the curve of corrupt economic crime crept up. The level of corruption has increased by seven thousand compared to the previous period, exceeding 78 thousand cases. The value of the seized assets has almost tripled and amounted to more than 40 billion rubles (Prosecutor General’s Office of the Russian Federation, 2021). Simultaneously, corruption deeply and firmly rooted in the life of society, became a criminogenic factor of the national economy, affecting small and medium-sized businesses. The importance of the development of corruption for the economic sector depends on the income of the business. Taking into account the monitoring data as the cornerstone of the formation of the economic component, we determined the ratio of the damage caused and compensated, commenting on the data of criminal analytics. When assessing the amount of damage from corruption crimes, we noted that in 2021, its curve went up compared to last years.

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A significant difference increased from 32.4 billion to 39.4 billion rubles. At the same time, one can also note an increase in the amount of damage reimbursed: from 3.5 billion to 9.9 billion rubles (Ministry of Internal Affairs of the Russian Federation, n.d.). Despite the introduction of the Presidential decree, the Russian Government does not fully implement monitoring measures to control the distribution of the budget in the field of public procurement and state programs. About 30% of the budget is involved in corruption to a certain extent, which is the most powerful and widespread source of the top of corruption (Sidorenko et al., 2019). It is necessary to punish corrupt officials, but first, it is necessary to determine the methods and means of punishment. The studied legislative act does not specify punishment, suggesting only the use of alternative measures. In our opinion, preventive measures are becoming the most progressive. It is impossible to apply departmental inspections and disciplinary measures in the form of remarks to officials and civil servants, provided they recognize the fact of committing a corruption offense. There is a vicious circle: a “good” punishment – continuation of work after the warning – receiving gifts in cash – admitting the fact of bribery if this fact is discovered. Such a vicious circle generates a risky potential for legal nihilism to spread and institutionalize one’s worldview. Highlighting the main provisions of the adopted presidential decree, one should pay attention to the amendments made to the administrative legislation at the end of 2018. The novella of Article 19.28 of the Administrative Code of the Russian Federation allows organizations to be held accountable even in the absence of an organization’s own interest in committing an offense, provided that there is an interest of a “legal entity associated with such an organization.” Within the research framework, it was possible to evaluate the use of this innovation by anti-corruption services. The findings are disappointing. When considering corruption offenses in the form of receiving gifts, less than 5% of them were started before the initiation of a criminal case in 2018, and less than 9% in 2019. In 2020 and 2021, the receipt of gifts by civil servants has almost doubled. From the perspective of the interpretation of a legal act related to combating corruption, we analyzed the issues of detailing information about income, expenses, property, and property obligations of civil servants and officials posted on the Internet, according to the data of the Russian tax authorities. Seemingly innocuous mistakes in filling out tax declarations are not always so innocuous due to the personal interest of officials and government employees. The incorrectly specified type of property and forgotten existing accounts, including international ones, are aimed at hiding

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criminal income, which is already a component of corruption. What is meant here is that this situation is related to deputies, ministers, and even government and civil servants. As already noted, corruption is like an “octopus,” stretching its tentacles not only into the sphere of state activity. Nowadays, the economy in general and its private sector, in particular, are also affected by this social phenomenon. In the private sector of the economy, corruption crimes are followed by punishment for commercial bribery. Taking into account the data of investigative practice, the analysis shows that the proportion of crimes related to commercial bribery in the structure of corruption crime accounts for 4.7% (364). In 2018, this figure was 2.3% (315); in 2019, it was less than 2% (273 cases); in 2020, it was 3.1% (334 cases) (Ministry of Internal Affairs of the Russian Federation, n.d.). As for commercial bribery, one can note that in 2016, the legislator drew attention to “corruptive corruption” by including Article 204.2 in the Criminal Code of the Russian Federation, which established liability for commercial bribery in an amount not exceeding 10 thousand rubles. With its introduction, the legislator drew attention to the so-called “lowest” (or insignificant in the amount of the encroachment committed) level of corruption (Pilyugina, 2016). The analysis of official statistics showed that the crimes provided for in Article 204.2 of the Criminal Code of the Russian Federation “Petty commercial bribery” in relation to the indicators of “Commercial bribery” amounted to 17.2% in 2018, 18.5% in 2019, and 21% in 2019. Nowadays, this figure is 23.8%. Figure 2 presents a diagram of the ratio of bringing to responsibility for commercial bribery and petty commercial bribery. Therefore, in recent years, the number of crimes for petty bribery has significantly exceeded the other types in the mutual ratio. An important distinctive feature of the presidential decree of the Russian Federation is the content of its main directions for the creation of anti-corruption measures for the interaction of state bodies represented by the government, the Prosecutor General’s Office, the Ministry of Labor and Fig. 2 The ratio of crimes provided for in Articles 204 and 204.2 of the Criminal Code of the Russian Federation. Source Compiled by the authors

V. R. Averyanova et al.

Social Protection of the Russian Federation, the Ministry of Justice of the Russian Federation, and the Ministry of Internal Affairs of the Russian Federation, as well as civil society institutions. The plan itself, having national significance, becomes a program for combating corruption and improving the legal regulation of liability for noncompliance with anti-corruption standards. In our opinion, the proposed measures, although tough, will somehow affect corruption. Thus, predicting the growth of corruption indicators, one should note that the currently applied anti-corruption measures are insufficient, and corrupt officials do not even try to comply with laws and restrictions, creating a conflict of interests. However, despite the recommendations proposed by the President of the Russian Federation for creating a unified anti-corruption mechanism, all branches of government will have to solve the problem of corruption of society at the legislative level in a short time. In this regard, it was proposed to introduce the following anti-corruption measures. 1. The implementation of preventive measures will allow one to reduce violations of prohibitions and restrictions and ensure the performance of duties established to combat corruption. Such measures include improving the conduct of inspections as part of prevention and monitoring the evaluation of the results of the fight against corruption reflected in public opinion polls and publications in the media about the existing illegal violations. 2. The Supreme Court of the Russian Federation requires uniform methodological recommendations for the administration of justice on the implementation of anti-corruption legislation. 3. On the part of the legislative bodies, it is crucial to make appropriate amendments to federal regulatory legal acts, particularly administrative, criminal, and criminalprocedure acts, considering the pressure and criminal prosecution for violation of laws.

Anti-corruption Strategies: Forms and Mechanisms of Participation of Civil Society Institutions

4. The Ministry of Justice of the Russian Federation must add a qualifying sign of illegal participation in entrepreneurial activity to Articles 289, 2041, and Part 5 of Article 2911 of the Criminal Code of the Russian Federation. Such a legislative measure will allow one to implement legal restrictions in the sphere of regulating the corrupt activities of the society. Simultaneously, one should also consider the limited access to the protection of the information program when conducting activities in the field of anti-corruption. 5. Law enforcement agencies must continue implementing measures to prevent abuse of official position by officials and regulatory authorities, including unjustified conduct of operational investigative measures and illegal procedural coercion that hinder the implementation of economic activities of organizations. 6. When educating society about anti-corruption standards, one should involve monitoring and methodological seminars, interdisciplinary scientific research on relevant anti-corruption issues, and sociological research engaging non-governmental organizations and federal and regional government agencies.

4

Conclusion

Thus, according to the research results, the problem was recognized as urgent. We chose specific measures to solve the problem. These measures include the following. • Amendments to the current criminal, criminal-procedural, and penal legislation; • The creation of a unified plan of preventive measures to prevent the development of corruption in Russia and its constituent entities. Nowadays, the absence of effective anti-corruption measures means promoting corruption and its harmful consequences. The identification of the reasons for its elimination will allow forming the necessary purposeful efforts of interacting state and law enforcement agencies to create a mechanism and means of countering corruption. Above all, there is a need for a developed legislative system of priority areas of preventive measures, considering the high-quality and effective support of ongoing activities.

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As part of the improvement of legislation at the federal level, it is necessary to involve the subjects of the Russian Federation and civil society institutions, which will allow one to reduce the degree of corruption among officials and civil servants on a preventive basis as part of preventive work. The main idea of the anti-corrupt policy of the state is the principle: if it cannot be eradicated, then it should be significantly reduced, especially in the “echelons” of power. In this case, the key element is the culture of transparency, ensuring the rule of law in public administration, integrity, and honesty on the part of officials and public civil servants. Currently, significant efforts are underway on the part of the anti-corruption committees to develop methodological recommendations to improve the moral criteria of the subjects of public authority of the state.

References Kabanov, K. V. (2011). Corruption: The general situation and current realities. Social Sciences and Contemporary World, 5, 34–36. Ministry of Internal Affairs of the Russian Federation. (n.d.). State of crime: Analytical digest. Retrieved from https://мвд.pф/ folder/101762. Accessed November 30, 2021. Mironova, G. N. (2019). Criminal liability for petty commercial bribery (Article 204.2 of the Criminal Code) (Synopsis of Dissertation of Candidate of Legal Sciences). Omsk, Russia: Omsk Academy of the Ministry of the Interior of the Russian Federation. Petukhov, N. A., & Ryabtseva, E. V. (Eds.). (2020). Preventing Corruption in Public Authorities of the Russian Federation: Collection of Scientific Articles on the Materials of the All-Russian Scientific and Practical Conference. Simferopol, Crimea: IT “ARIAL”. Pilyugina, T. V. (2016). Legal aspects of national security: A criminological analysis of local government corruption. Economics. Law. Print. Bulletin of the Kuban Socio-Economic Institute, 1(69), 131–137. Portal of Legal Statistics of the Prosecutor General’s Office of the Russian Federation. (n.d.). Monthly compilation of the state of crime in Russia for 2021. Retrieved from http://crimestat.ru/ analytics. Accessed November 30, 2021. Presidential Executive Office. (2021). Decree “On the national anti-corruption plan for 2021–2024” (August 16, 2021 No. 478). Moscow, Russia. Retrieved from https://www.garant.ru/products/ ipo/prime/doc/402519978/. Accessed November 30, 2021. Prosecutor General’s Office of the Russian Federation. (2021). The state of crime in Russia: Analytical digest, 2021. Russia. Sidorenko, T. N., Averyanova, V. R., & Moskalenko, O. N. (2019). Countering corruption in state and municipal governance: Training manual. Krasnodar, Russia: Krasnodar Cooperative Institute (Branch) of the Russian University of Cooperation.

Methods of Acquisition and Termination of Subjective Rights to Immovable Property as an Element of Social Security of Citizens Viktor A. Ilyin , Vera V. Chizhikova , Andrey A. Smagin , Natalya V. Lutovinova , and Alexey V. Erpelev

of the meaning of immovable property and its position in civil law.

Abstract

The paper aims to study methods of acquisition and termination of subjective rights to the immovable property to improve and enhance the normative elaboration of current legislation, identifying problems and solutions and determining the areas for improvement of legislation in this area. The authors use comparative-legal and formal-legal methods to assess the need for normative changes, concepts, and categorical apparatus in the area of subjective rights to immovable property. The authors apply the method of comparative analysis of the original and derivative groups of grounds for the acquisition of property rights to immovable property, as well as the main methods of terminating property rights to immovable property, including types of causes for termination of property rights depending on the expression of the will of the right holder. The authors of the research proposed to reduce the limitation period for immovable property from 15 to 10 years, to oblige owners to register their ownership of immovable property by submitting information to the state registration authorities, and to replace the registration of transactions with compulsory execution of such transactions in notarial form. The provisions and conclusions formulated in the research supplement the civil law science and contribute to a better understanding

V. A. Ilyin (&) . V. V. Chizhikova . A. A. Smagin . N. V. Lutovinova . A. V. Erpelev Russian State Social University, Moscow, Russia e-mail: [email protected] V. V. Chizhikova e-mail: [email protected] A. A. Smagin e-mail: [email protected] N. V. Lutovinova e-mail: [email protected]

Keywords

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Acquisition of property rights Right to immovable property Social distribution of land resources Immovable property Subjective rights

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JEL Classification

K11

1

. . . . . K15

P14

P48

P26

D23

Introduction

In recent years, the legal regime of immovable property in the Russian Federation has undergone significant changes in legal regulation. Immovable property has become an integral object of market turnover—the basis of economic relations in the country. Due to the fact that the civil turnover undergoes constant complications and the Russian science of civil law constantly evolves, there is a need for a detailed analysis of the regulatory regime of immovable property. Work in this area must be targeted. The emergence of new objects of civil law is a consequence of the development of new norms of civil law, developed at the initiative of the Russian legislator. Public relations in the field of legal regulation of immovable property rapidly change from year to year. This change is caused by the development of market relations, the object of which is an immovable property in the first place. The recent changes in legislation significantly change the composition and characteristics of immovable property; the process of development is ongoing and requires in-depth research. Disputes often arise, leading to the violation of the rights of citizens and the social balance of material resources.

A. V. Erpelev e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_27

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Based on the current legislation, objects of immovable situations. The research is based on the examination of property, as objects of civil rights, may pass on different consistently published information, both by scholars and kinds of rights from subject to subject. In accordance with specific bills related to the studied topic. Article 2 of the Civil Code of the Russian Federation, this kind of legal regulation refers to issues regulated by civil law, starting from the definition of the legal status of par- 3 Results ticipants, ending with the grounds for the emergence and exercise of rights in rem, including property rights (Russian 1. It was found that the concepts of “ways” and “grounds” of acquisition and termination of subjective rights to Federation, 1994). According to the legislator, the complete immovable property are identical due to the fact that right of the subject in relation to the object is the property these are legal categories that replace each other and right, which is the basic, most important, although not the denote legal actions or facts that are regulated by law. only right in rem (Erofeeva, 2007). The property right These concepts are the basis for the emergence and teroccupies a special place, although it exists along with rights mination of property rights. in rem at the legislative level. Simultaneously, unlike other rights in rem, the property right includes all three powers: 2. The legislator distinguishes the complete right of a subject in relation to an object, which, unlike other rights in right of possession, right of use, and right of disposal. rem, includes the following: The paper aims to study the methods of acquisition and termination of subjective rights to the immovable property to (1) The right to use immovable property is the statutory opportunity for the subject of the right to use the object improve and enhance the normative elaboration of current of immovable property by obtaining useful properties legislation, identifying problems and solutions and deterfrom economic use. According to the general rule, it is mining directions for the improvement of legislation in this inseparably connected with the right of possession area. because, in some cases, it is impossible to perform economic and other activities without actual possession of 2 Methodology the property (e.g., obtaining fruit from a land plot), and vice versa, possession from the perspective of civil turnover is meaningless if its use for the purposes of the Problematic issues regarding the methods of acquisition and termination of subjective rights to immovable property were subject of law is impossible or limited in scope (e.g., restricted by law). raised in the fundamental works of Ilyin et al. (2019), Lenkovskaya et al. (2018), Smagin et al. (2020), Bazanov (2) The right to dispose immovable property is the ability to (2004), Braginsky and Vitryansky (2000), Erofeeva (2007), determine the legal fate of the object of immovable property and make changes in its composition and Ogorodnikov (2018), Smagin (2019), Shangina (2020). qualitative characteristics. Article 129 of the Civil Code These works considered the ways of acquisition and termination of subjective rights to immovable property, its of the Russian Federation specifically notes that many immovable objects within the framework of the exercise legal and regulatory framework, problems of legal regulaof this right have restrictions (e.g., the land plot is tion, and their solutions. During the research, the authors analyzed the works and transferred from owner to owner to the extent permitted by the land legislation) (Russian Federation, 1994; opinions of scholars; the range of studied sources was Russian Federation, 2001). determined. The research was based on information from official sources, publications of normative legal acts, and (3) Unfortunately, the right of possession is not a legally enshrined definition of this legal power; based on the scientific papers. The authors of this research studied legal doctrine, it is the actual possession of an object; materials and key sources of various scientific literature on the proposed topic and analyzed the regulatory and legal acts based on the analysis of the law, the presence of the right (its receipt) implies that the right holder has an object. of the Russian Federation related to immovable property, which allowed them to conduct a more detailed study of the issues and problematic aspects in this area. Using the comThe grounds for acquiring ownership of immovable parative legal method, the authors concluded and evaluated property can be divided into two groups. The first group the need for regulatory change in the studied field. Using the (original grounds) includes grounds in which the previous formal-legal method, the authors assess the need to change owner has no rights to the immovable property. Parts 1 and 3 the concepts and categorical apparatus. In studying the of Article 218 of the Civil Code of the Russian Federation analysis of proposed changes, the authors use the method of (1994) reflect the following grounds of the considered comparative analysis, which considers the variability of group:

Methods of Acquisition and Termination of Subjective Rights to Immovable Property as an Element of Social Security of Citizens

(1) The property right arises as a result of the creation of a new object (creation of an object of immovable property); The constructed (created) object of immovable property formally begins its existence from the moment of state registration. On this basis, at the present stage of the development of legislation, there are many questions regarding the objects of immovable property constructed without complying with the permission procedure provided by law—unauthorized constructions (Bazanov, 2004). In this regard, we can note that all buildings constructed in violation of the requirements of the current legislation are unauthorized, and the registration of rights to them under the current law is not performed. (2) Acquisition of the right to ownerless property (including objects of immovable property); In order for an object to be considered ownerless, one of the following conditions must be met: • It is an object of immovable property without registered rights to it; • There is a waiver of the subject of the right from the object of immovable property; • There is no information about the owner. The property right to an object of immovable property can be acquired only based on acquisitive prescription. This option is the only one. In this regard, we can note a distinctive feature of the institute of acquisitive limitation. It is both the basis and, in this case of immovable property, the way to establish new subjective rights. (3) Acquisition of the property right by virtue of the rules of acquisitive limitation. Based on Article 234 of the Civil Code of the Russian Federation (1994), we can note the conditions necessary for the acquisition of property rights. For example, the subject of property, who is not the owner, is obliged to exercise the powers of the owner for a long time (15 years), namely, to use immovable property openly and in good faith. If we consider the general rule of acquiring the property right, it arises from the moment of state registration. Even though this method of acquiring the right seems to be the simplest at first glance, there are several problems in reality. A person wishing to acquire the property right must comply with the bona fide principle. The notion of “bona fide” is interpreted as follows: a person is considered to be bona fide in the absence of knowledge of the legal grounds for obtaining the

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property right to immovable property. At the current stage of legislative development, this legal institution is very ineffective because practice and theory are in a significant gap. If we approach the bona fide criterion formally, then, in terms of the ruling, any person must ascertain and assume that there is an owner and he or she has no grounds for owning this object of immovable property. The period of acquisition of property rights is supplemented by a general limitation period of three years for the immovable property; the period of continuous possession and fulfillment of other requirements for the acquisition of property rights is already equal to 18 years. In most cases, compliance with the bona fide criterion is a difficult task for the owner. For example, if it becomes known about the owner’s bad faith and this fact is confirmed, the claim for recognition of property rights will be denied. Similarly, if the property was in state or municipal ownership, the claimant will be found to be in bad faith. For example, in the case of January 23, 2015, No. 307-ES14-329, the Supreme Court correlates possession of federal property with the fact of a person’s bad faith, but when it turns out that the federal authorities were located on the land plot on a contractual basis with the defendant (owner), there are no grounds for finding the owner to be bad faith (Supreme Court of the Russian Federation, 2015). This situation suggests that it is necessary to reduce the period of acquisitive limitation to ten years for immovable property and to oblige such owners to register their ownership of the immovable property by submitting information to the state registration authorities to eliminate this kind of situations. This kind of actions will help the legislator to clearly define the subject of property rights, according to part 2 of Article 234 of the Civil Code of the Russian Federation (1994), because sometimes this legal status can be claimed by several persons, including municipal authorities which thus try to sell the property located in their jurisdictional territory. Thus, this kind of legal relationship will be implemented in a more public way. The second group is derivative grounds for the acquisition of property rights based on the transfer of rights from the subject to the subject, i.e., the property right took place at the time of the transfer of an object (the object is not created anew). The derivative way is characterized by the transfer of property rights to the extent in which they were acquired by the previous owner, i.e., including all rights in rem constituting the legal regime of a given immovable object. The subjective rights of the new owner depend on the subjective rights of the former owner, which, according to A. P. Shangina, should be necessarily considered (Shangina, 2020). The derivative grounds for acquiring property rights include the following:

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(1) Transfer of ownership by inheritance; A citizen, as a person existing in the society for a certain period from birth to death, is an exclusive subject with the subjective right to acquire and terminate the property right by inheritance, law, and will. (2) Acquisition, the basis of which are contracts (e.g., donation, exchange, sale, and purchase), i.e., providing for alienation of immovable property (Smagin et al., 2020). Within the framework of the implementation of this method of acquiring the right of ownership, the form and essential conditions stipulated by the legislator for each type of transaction must be complied with. Acquisition of rights to property on a contractual basis is subject to a notarization in a number of cases, such as transactions for the alienation of shares in the right of common ownership of spouses to the property (Paragraph 1, Article 24 of the Law on registration of immovable property) (Russian Federation, 2015). (3) Reorganization of a legal entity (Article 59 of the Civil Code of the Russian Federation) (Russian Federation, 1994). 3. It is established that the termination of property rights occurs upon the alienation of an object of immovable property to third parties, in case of waiver of the right to immovable property, destruction, loss of the object of immovable property, and based on other grounds established by law (Ogorodnikov, 2018). Grounds for termination of the property right to an object of immovable property are as follows: (1) Occurring with the consent of the owner of the immovable property; According to Article 211 of the Civil Code of the Russian Federation (1994), if the property was lost and there was no fault of third parties, then, in some cases, the owner could not foresee that the property would be lost. For example, damage to a dwelling house due to natural wear and tear and lack of maintenance is a direct indicator of the owner’s consent and the existence of his or her fault for the loss of this property or its parts. If, however, the loss of property occurs without the person’s knowledge and the person cannot foresee this kind of consequence, the loss of the object occurs without his or her consent, but the risk of loss is still on this person. According to Article 1064 of the Civil Code of the Russian Federation, in the case of loss of an object due to the fault of third parties, the persons who caused the damage are liable to the owner (Russian Federation, 1996). It should also be noted that, in case of waiver of the previous owner, the rights and obligations to the object of immovable property of the previous owner remain until

V. A. Ilyin et al.

the acceptance of the property by the new owner (Ilyin et al., 2019). (2) Occurring against the will of the owner of the immovable property. The norm of part 3 of Article 25 of the Constitution of the Russian Federation (1993) is declarative. It points out to the mandatory application of the judicial procedure in the forced seizure of property, simultaneously indicating that the alienation of property for state needs is possible only on condition of prior and equivalent compensation for the harm caused to the person by these actions. Termination of the right of ownership of immovable property in a compulsory procedure occurs in exceptional cases provided by law (Articles 237–240, 242, 243 252, 272, 282, 285, and 293 of the Civil Code of the Russian Federation) (Russian Federation, 1994). 4. Due to the fact that compliance with the criterion of good faith is a difficult task for the owner, it is recommended to reduce the period of acquisitive limitation from 15 to 10 years for immovable property and oblige owners to register their ownership of immovable property by submitting information to the state registration authorities. This kind of actions will help the legislator to clearly define the subject of property rights, according to part 2 of Article 234 of the Civil Code of the Russian Federation (1994), because sometimes this legal status can be claimed by several persons, including municipal authorities which thus try to sell the property located in their jurisdictional territory (Lenkovskaya et al., 2018). 5. Due to the fact that compulsory registration of transactions is gradually losing its meaning and due to the practical lack of meaning of transactions, in a number of cases, there remains double registration of transactions and rights. Thus, it is recommended to replace the registration of transactions with compulsory execution of these transactions in notarial form. After all, the first steps to full transition to the notarization of transactions have already been taken.

4

Conclusion

The emergence, change, and termination of ownership and other proprietary rights are determined by the original and derivative grounds. The legislator refers to the original grounds in which there are no claims and rights of the previous owner to this object of immovable property. This group includes the

Methods of Acquisition and Termination of Subjective Rights to Immovable Property as an Element of Social Security of Citizens

following (parts 1 and 3 of Article 218 of the Civil Code of the Russian Federation) (Russian Federation, 1994). (1) The property right arises as a result of the creation of a new object (creation of an object of immovable property); (2) Acquisition of the right to ownerless property (including objects of immovable property); (3) Acquisition of the property right by virtue of the rules of acquisitive limitation. Derivative grounds for the acquisition of ownership are based on the transfer of rights from the subject to the subject, i.e., the property right took place at the time of the transfer of an object (the thing is not created anew). The derivative way is characterized by the transfer of property rights to the extent in which they were acquired by the previous owner, including all rights in rem constituting the legal regime of a given immovable property. Depending on the consent (or disagreement) of the owner to terminate ownership of the immovable property, this may occur either with or without the owner’s consent. The legislation regarding the civil law regime currently requires some regulatory and, in some cases, doctrinal changes. A unified approach is required at the federal level to control the implementation of all methods of obtaining rights to immovable property and their lawful alienation without violating the minimum guaranteed by the state right to freedom of human and civil rights (Smagin, 2019). Due to the fact that compulsory registration of transactions is gradually losing its meaning and due to the practical lack of meaning of transactions, in a number of cases, there remains double registration of transactions and rights. Thus, it is recommended to replace the registration of transactions with compulsory execution of these transactions in notarial form. After all, the first steps to full transition to the notarization of transactions have already been taken (Braginsky & Vitryansky, 2000).

References Bazanov, I. A. (2004). The origins of modern mortgage: The newest currents in vast property law in connection with the modern system of the national economy. Moscow, Russia: Statut. Braginsky, M. I., & Vitryansky, V. V. (2000). Contract law. In Book 2: Contracts for the transfer of property. Statut.

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Erofeeva, A. A. (2007). Grounds and methods of origin of the right of ownership. Terra Economicus, 5(2–3), 110–113. Ilyin, A., Lutovinova, N., & Paulina, N. (2019). Early retirement pensions due to with special working conditions. Economic and social development: Book of Proceedings (pp. 630–636). Russian State Social University. Lenkovskaya, R., Lutovinova, N., & Smagin, A. (2018). Features of insurance of enterprise risks in industrial and innovation sectors. Economic and social development: Book of Proceedings (pp. 534– 540). Russian State Social University. Ogorodnikov, M. S. (2018). The actual structure in the mechanism of emergence and transition of the property right to immovable property: Problems of unity of conceptual terminology. Vestnik of the Russian University of Cooperation, 1(31), 132–139. Russian Federation. (1993). The Constitution of the Russian Federation (adopted by national referendum on 12 December 1993, as amended December 30, 2008 No. 7-FKZ, March 21, 2014 No. 6-FKZ, June 4, 2014 No. 8-FKZ, July 21, 2014 No. 11-FKZ, December 28, 2016 No. 2-FKZ). Moscow, Russia. Retrieved from http://www. consultant.ru/document/cons_doc_LAW_28399/. Accessed October 25, 2021. Russian Federation. (1994). Civil Code of the Russian Federation (Part one) (November 30, 1994 No. 51-FZ, as amended 28 June 2021). Moscow, Russia. Retrieved from http://www.consultant.ru/ document/cons_doc_LAW_5142/. Accessed October 25, 2021. Russian Federation. (1996). Civil Code of the Russian Federation (Part two) (January 26, 1996 No. 14-FZ, as amended July 1, 2021). Moscow, Russia. Retrieved from http://www.consultant.ru/ document/cons_doc_LAW_9027/. Accessed October 25, 2021. Russian Federation. (2001). Land Code of the Russian Federation (25 October 2001 No. 136-FZ, as amended February 16, 2022). Moscow, Russia. Retrieved from http://www.consultant.ru/ document/cons_doc_LAW_33773/. Accessed October 25, 2021. Russian Federation. (2015). Federal law “On state registration of immovable property” (July 13, 2015 No. 218-FZ, as amended July 2, 2021). Moscow, Russia. Retrieved from http://www.consultant. ru/document/cons_doc_LAW_182661/. Accessed October 25, 2021. Shangina, A. P. (2020). Acquisition of ownership under a contract. International Journal of Humanities and Natural Sciences, 12–1(51), 254–257. https://doi.org/10.24411/2500-1000-202011652 Smagin, A. A. (2019). On the peculiarities of different types of wills. In R. R. Lenkovskaya (Ed.), Private and public law: Collection of scientific works of professors and young scientists of the Faculty of Law of the Russian State Social University (pp. 192–198). Saratovsky Istochnik. Smagin, A., Ilyin, V., & Chizhikova, V. (2020). Conditions and procedure for assigning and providing payments to citizens with children in the Russian Federation. Economic and social development: Book of proceedings (pp. 414–419). Russian State Social University. Supreme Court of the Russian Federation. (2015). Determination in case No. A56-18506/2013 (January 23, 2015 No. 307-ES14-329). Moscow, Russia. Retrieved from http://www.consultant.ru/cons/cgi/ online.cgi?req=doc;base=ARB;n=415827#0. Accessed October 25, 2021.

Problems of Practical Application of Legal Norms Containing Accessory Obligations in the Legislation of the Russian Federation in the Conditions of the COVID-19 Pandemic Ludmila A. Evseeva , Inna N. Skuratova , Vladimir A. Medvedev , Anton K. Kuznetsov , and Chulpan Sh. Kupirova

cooperation, currently emerge due to unjustified imperative application of civil accessory structures on alien to them areas. This is primarily associated with the restrictive and prohibitive measures applied by the government aimed at preventing the spread of COVID-19. The desire to secure the rights and interests of the participants of legal relations through these structures, in fact, turns out to create an additional financial burden on the end-users of goods, works, and services offered in cooperation.

Abstract

The paper aims to reveal the problems of the practical application of the rules of law containing accessory obligations in the legislation of the Russian Federation, especially in conditions of the COVID-19 pandemic, when business entities, including cooperative entities, are faced with the impossibility of performance or proper performance of contracts. The research methodology consists of the analysis of different approaches to the concept of accessory obligations, the study of gaps in the legislation, and the analysis of judicial practice in resolving disputes related to accessory obligations. Accessory obligations are present in the whole variety of civil law transactions, including those carried out in the area of cooperation. Clear identification of accessory obligation will allow us to properly assess the legitimacy of inclusion of a certain obligation in the transaction. Moreover, it will allow us to determine the moment of emergence, change, and termination of accessory obligations, as well as the relevance and proportionality of the claims asserted by the creditor in case of violation of the accessory obligation. The authors conclude that the problems of the practical application of the rules of law governing accessory obligations, including in the field of L. A. Evseeva (&) . I. N. Skuratova Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] I. N. Skuratova e-mail: [email protected] V. A. Medvedev . A. K. Kuznetsov . C. Sh. Kupirova Chuvash State University Named After Ulyanov I.N., Cheboksary, Russia e-mail: [email protected] A. K. Kuznetsov e-mail: [email protected] C. Sh. Kupirova e-mail: [email protected]

Keywords

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Accessory obligations commitment Surety

..

.. .

Cooperation Deal Surety Litigation Creditor

JEL Classification

K15

1

.

К12

Introduction

Accessory obligations are present in the whole variety of civil law transactions, including those carried out in the area of cooperation. Clear identification of accessory obligations allows us to properly assess the legality of the inclusion of a particular obligation in the transaction. Moreover, it allows us to determine the moment of emergence, change, and termination of accessory obligations, as well as the relevance and proportionality of the claims asserted by the creditor in case of violation of the accessory obligation. The paper aims to identify problems of the practical application of legal norms containing accessory obligations, especially in the context of the COVID-19 pandemic, when business entities, including cooperative entities, are faced with the impossibility of performance or proper performance of contracts. The research objectives are as follows.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_28

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• To analyze the Russian legislation and law enforcement, including the latest judicial practice; • To develop recommendations for improving the legislation governing accessory obligations.

2

Methodology

The research methodology is based on the analysis of different approaches to the concept of accessory obligations, the study of gaps in the legislation, and the analysis of judicial practice in resolving disputes related to accessory obligations. In the Russian legal doctrine, the problems of civil law enforcement of obligations are sufficiently developed. Before the revolution, this issue was discussed in the works of Shershenevich (2005) and Pokrovsky (2013). In the Soviet period, this topic was discussed by Agarkov (1940). Subsequently, after adopting Part I of the Civil Code of the Russian Federation, the concept of accessory obligations was evaluated by Gongalo (2004) and Rasskazova (2004). As applied to the current civil law, the issues of accessory obligations were studied by Bevzenko (2013), Belov (1998), Braginsky and Vitryansky (1999), and Sarbash (2008). Several scientific publications by L. A. Evseeva are devoted to the problems of accessory obligations (Evseeva & Trukhan, 2017, pp. 101–103, 2020, pp. 116–121]. This study is a continuation of the consideration of the peculiarities of regulation of contractual relations of cooperative organizations in the conditions of the COVID-19 pandemic (Zmievsky et al., 2022).

3

Results

The paradigm, according to which accessority is a property of obligations (which are legal relations) and not of treaties, and obligations are of accessory nature to other obligations and not to treaties, removes the seeming contradiction to the principle of accessority in cases where the treaty that formalized the principal obligation terminates and the obligation of accessory nature remains in effect. For example, a surety, which secures the compensation of losses or the collection of penalties, becomes accessory to these obligations, which have become a consequence of the improper performance of the contract. In this light, the traditional view that such a security obligation as an independent guarantee has no property of accessory nature appears differently. This opinion is based on the fact that the Civil Code of the Russian Federation (Federation, 1994) directly indicates that the payment obligation under an independent guarantee does not depend on the validity of the main obligation secured by

it. In fact, in this case, we are talking about the invalidity of the treaty from which the secured obligation arose. When a transaction is invalidated, there arises an obligation of a different kind—the obligation to return what was received under the transaction. The independent guarantee does depend on this obligation. In the case of return by the principal of the received invalid transaction and the absence of debts to the beneficiary, the latter’s claim to the guarantor should be regarded as an abuse of right aimed at unjust enrichment, as confirmed by judicial practice. For the Russian legal system, the notion of accessory liability is a doctrinal one. The term itself is not mentioned in the legislation. Thus, the disclosure of this category, its features, and manifestations in the judiciary acts are of particular interest. In the absence of a legally enshrined construction of accessory obligations, judicial practice can fill the existing gaps and provide clear guidelines for the participants of civil relations. First, we should note that the discussed concept is quite often used in judicial arbitration acts. For example, courts readily appeal to the accessory nature of liquidated damages in disputes concerning the grounds for its collection and the amount thereof. It is impossible not to see a certain selectivity in the position of the courts operating with the term “accessority”: it is used when it is necessary to emphasize the dependence of an additional obligation on the main one. When, for a certain reason, this dependence is weakened in the opinion of the court, the term is not mentioned, with a few exceptions, which will be discussed below. This means, at a minimum, a lack of a consistent and comprehensive approach to using one of the fundamental civilized categories. Another noteworthy circumstance is that the notion of accessory liability is practically not used in the fundamental guidelines of the highest court on certain types of security obligations, especially suretyship and pledge. So, it is absent in the Resolution of the Plenum of the Russian Federation “On some issues of the application of the legislation on pledge” (February 17, 2011 No. 10) (Plenum of the Supreme Arbitration Court of the Russian Federation, 2011). In resolution “On some issues of resolving disputes related to surety” (July 12, 2012 No. 42), it is mentioned only once—when indicating the necessity to reflect the repayment of a debt by the principal debtor in the register of creditors’ claims in a bankruptcy case of the surety (Plenum of the Supreme Arbitration Court of the Russian Federation, 2012). Simultaneously, the absence of a direct reference to the accessory nature of the obligation does not mean that it is not a matter of accessority. Any judicial practice related to the relationship between primary and supplementary obligations is an important empirical material for the study of the essence of accessory obligations. The review of selected issues of judicial practice related to the application of legislation and measures to counter the

Problems of Practical Application of Legal Norms Containing Accessory Obligations in the Legislation …

spread of a new coronavirus infection (COVID-19) No. 1 in the territory of the Russian Federation, approved by the Presidium of the Supreme Court of the Russian Federation on April 21, 2020, came out at the right time (Presidium of the Supreme Court of the Russian Federation, 2020). Summarizing this material, we can highlight certain trends in the development of the position of the judiciary and their approaches to the discussed legal construct.

4

Discussion

In the scientific literature, there is a common opinion that in recent years there has been a clear tendency of arbitration practice towards the weakening of accessory obligations, adapting its traditional model to the dynamically developing market relations and the needs of business turnover; creditors also try to apply such analogy. In this respect, arbitration case No. A56-21080/2016 is indicative (Thirteenth Arbitration Court of Appeal, 2017). The defendant claims that the obligation secured by collateral was terminated in bankruptcy proceedings of “Tavrichesky” JSCB, a borrower under the subordinated loan agreement No. 002-SZ/2012 dated December 26, 2012, secured by a mortgage, without the will of the creditor to terminate the obligation (Plenum of the Supreme Arbitration Court of the Russian Federation, 2012). Consequently, to the disputed legal relations, it is necessary to apply the legal position of the Supreme Court of the Russian Federation, cited in the definition in case No. A61-2409/2010 of June 14, 2016 (Supreme Court of the Russian Federation, 2016). By decisions of courts of all instances, the defendant’s arguments were rejected. Conflicting court arbitration practice exacerbates the original problem—the lack of a definition and signs of an accessory obligation in the legislation and court practice itself. At the same time, it should not be denied that judicial practice, to a large extent, fills the existing niche, which is the result of incomplete legislative regulation. In some cases, courts not only operate with the notion of accessory liability but also reveal its meaning by referring to the legal consequences of the existence of accessory liability. In some judicial decisions, it is important for theory and practice to clearly distinguish between the moment of conclusion of a contract giving rise to accessory obligations and the moment of the emergence of these obligations themselves. Thus, considering the issue of the effect of financial obligations under pledge agreements and suretyship agreements on the overall solvency of the grantor, the court pointed out that pledge agreements and suretyship agreements are of inherent accessory nature, that is, the obligation under them arises only in the event of improper performance of obligations under the main contract. At the time of the conclusion of the pledge and surety agreements, no property obligations arise

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for the pledger or guarantor. Thus, infliction of harm to the property interests of a legal entity by entering into pledge and surety agreements is possible only if the debtor is knowingly unable to fulfill the main obligation (Egorova, 2007). Similarly, this idea is expressed in the Ruling of the Supreme Arbitration Court of the Russian Federation of March 27, 2019, No. 08AP-281/2019 in case No. A709817/2017, where it is noted that the surety agreement, by its nature, is an accessory obligation, which means that the acquisition of surety status for the obligations of the based borrower is not an absolute basis for the need to pay the outstanding debt since this condition depends on the will of the main borrower and occurs only when he or she improperly performs his or her obligations under the loan agreement (Eighth Arbitration Court of Appeal, 2019). A significant contribution to the notion of accessory liability and its elements has been made by judicial arbitration practice in terms of procedural aspects related to the procedure for collecting debts under accessory obligations.

5

Conclusion

We can note the following as a conclusion. The problems of the practical application of legal norms governing accessory obligations are largely due to the unjustified imperative application of civil law accessory structures on the areas that are alien to them. The desire to secure the rights and interests of the participants of legal relations through these structures, in fact, turns out to create an additional financial burden on the end-users of goods, works, and services, including in the area of cooperation. The relevant innovations of the legislation remain unclaimed by practice due to the legal flaws inherent in them. Unfortunately, the negative trend mentioned by E. A. Sukhanov in 2003, noting the increasing number of cases of unjustified spread of civil-law structures to other not private-law relations, became fully apparent in the considered problem (Sukhanov, 2003, pp. 60–65). Thus, one of the authors has already proposed “to legislate a definition of a security obligation, reflecting in it the presence of an additional source of satisfaction of the creditor’s claims as an essential feature. This will allow taking out those obligations that are not, in fact, security obligations, particularly forfeitures, of the framework of security obligations (Evseeva & Trukhan, 2017, pp. 101–103). It is also advisable to consolidate the classification of security obligations with their division into personal and real (property), which will allow building a more systematic legal regulation of these types of obligations. Over the past year and a half, business entities, including cooperative entities, have faced the problem of fulfilling accessory obligations due to the introduction of restrictive measures related to COVID-19. They wonder whether the

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introduction of these measures can be recognized as force majeure (insuperable force) and be used to avoid liability for failure to fulfill obligations. In this connection, we have already proposed “to provide, in the conditions for the release of the parties from liability for improper performance of obligations, the existence of circumstances caused by the introduction of restrictive or prohibitive measures by the public authorities aimed at ensuring the sanitary and epidemiological well-being of the population” (Zmievsky et al., 2022).

References Agarkov, M. M. (1940). Obligation under Soviet civil law. Yurizdat. Belov, V. A. (1998). A surety. Experience of the theoretical design and generalization of arbitration practice. YurInfoR. Bevzenko, R. S. (2013). Accessory nature of security obligations. Statut. Braginsky, M. I., & Vitryansky, V. V. (1999). Contract law. In Book 1: General provisions. Statut. Egorova, M. A. (2007). Accessory as an essential feature of agreements on amendment and termination of an agreement. Tourism: Law and Economics, 5, 27–29. Eighth Arbitration Court of Appeal. (2019). Resolution in case No. A70-9817/2017 (March 27, 2019 No. 08AP-281/2019). Omsk, Russia. Retrieved from http://www.consultant.ru/cons/cgi/online. cgi?req=doc&base=RAPS008&n=109073#RcXmolS5xRG2gdXR. Accessed October 15, 2021. Evseeva, L. A., & Trukhan, R. P. (2017). The concept and essence of accessory obligations in civil law of the Russian Federation. Vestnik of the Russian University of Cooperation, 4(30), 101–103. Evseeva, L. A., & Trukhan, R. P. (2020). Improvement of the legislation of the Russian Federation regulating accessory obligations. North Caucasian Legal Bulletin, 1, 116–121. https://doi.org/ 10.22394/2074-7306-2020-1-1-116-121 Gongalo, B. M. (2004). The doctrine of securing obligations: Questions of theory and practice. Statut. Plenum of the Supreme Arbitration Court of the Russian Federation. (2011). Resolution “On some issues of the application of the legislation on pledge” (February 17, 2011 No. 10). Moscow,

L. A. Evseeva et al. Russia. Retrieved from http://www.consultant.ru/document/cons_ doc_LAW_111550/. Accessed October 15, 2021. Plenum of the Supreme Arbitration Court of the Russian Federation. (2012). Resolution “On some issues of resolving disputes related to surety” (July 12, 2012 No. 42, as amended on December 24, 2020). Moscow, Russia. Retrieved from http://arbitr.ru/as/pract/post_ plenum/58414.html. Accessed October 15, 2021. Pokrovsky, I. A. (2013). History of Roman law. Lan. Presidium of the Supreme Court of the Russian Federation. (2020). Review of selected issues of judicial practice related to the application of legislation and measures to counter the spread of a new coronavirus infection (COVID-19) No. 1 in the territory of the Russian Federation (approved April 21, 2020). Moscow, Russia. Retrieved from http://www.consultant.ru/document/cons_doc_ LAW_350813/. Accessed October 15, 2021 Rasskazova, N. Y. (2004). Questions of the general theory of security obligations. Jurisprudence, 4, 41–59. Russian Federation. (1994). The Civil Code of the Russian Federation (Part one) (November 30, 1994 No. 51-FZ, as amended on June 28, 2021, as amended on July 8, 2021). Moscow, Russia. Retrieved from https://www.consultant.ru/document/cons_doc_LAW_5142/. Accessed October 15, 2021. Sarbash, S. V. (2008). Security transfer of legal title. Civil Law Review, 1, 7–93. Shershenevich, G. F. (2005). Textbook of Russian civil law (Vol. 2). Statut. Sukhanov, E. A. (2003). Caution: Civil constructions! Legislation, 9, 60–65. Supreme Court of the Russian Federation. (2016). Determination on case No. A61-2409 / 2010 (May 12, 2016 No. 308-ES16-1443) Retrieved from https://dogovor-urist.ru/cyдeбнaя_пpaктикa/ дeлo/308-эc16-1443/. Accessed October 15, 2021. Thirteenth Arbitration Court of Appeal. (2017). Resolution in case No. A56-21080/2016 (May 17, 2017). St. Petersburg, Russia. Retrieved from https://sudact.ru/arbitral/doc/y34nxRL6O1VV/. Accessed October 15, 2021. Zmievsky, D. V., Evseeva, L. A., Vyazovskaya, T. N., Pavlov, S. Y., & Galieva, G. V. (2022). Features of the legal regulation of contractual relations of cooperative organizations in the context of COVID-19 pandemic. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, & O. V. Kaurova (Eds.), Cooperation and sustainable development (pp. 731–737). Springer. https://doi.org/10.1007/978-3-030-770006_87

Uncertainty and Risk as Factors in the Development of Insurance Nelya Kh. Fatkhullina , Elena S. Shchigortsova , Alsu V. Vylegzhanina, Alina V. Makhiyanova , and Vladimir R. Volkov

Abstract

The research covers a long period, starting from ancient times, which allowed us to identify the main stages of its formation and generalize and systematize experience, adapting it to today’s economic conditions. We established the key factors affecting the development of insurance. This allowed us to determine the important role of insurance in risk management at any stage of human development. The paper collects historical facts about each studied period with reference to specific names, dates, and territories, exploring the conditions and factors of the creation of insurance companies and associations in insurance pools. This research is of particular interest to specialists in the field of insurance, students, and teachers. Keywords

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Insurance history Uncertainty insurance Entrepreneurship

. . Risk

2

Methodology

To solve the indicated problems, we applied the dialectical method, which reveals the possibility of studying economic phenomena in their development, relationship, and interdependence. We also applied analysis, synthesis, grouping, comparison, and the method of historical overview. The information base of the research is based on the works of foreign and Russian scholars in the field of history and theory of insurance, as well as Internet resources (Makhiyanova et al., 2019).

Cooperative

JEL Classification

G22

1

16th–nineteenth centuries, and then the USA. We also set out the relationship between insurance and entrepreneurship and define the relevance of research into the development of cooperative insurance.

Introduction

Studying the history of insurance, we see that its development over the centuries was defined by three countries: Italy in the Middle Ages and Renaissance, the UK in the N. Kh. Fatkhullina (&) . E. S. Shchigortsova . A. V. Vylegzhanina Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] E. S. Shchigortsova e-mail: [email protected] A. V. Makhiyanova . V. R. Volkov Kazan State Power Engineering University, Kazan, Russia e-mail: [email protected]

3

Results and Discussion

The first known records of insurance date back several thousand years BC (Baughman, 1965; Harrington, 2009; Niekerk, 1998; Wertheimer, 2006). Even in early times, traders used various methods to protect themselves from uncertainties that could hinder (harm) their activities. However, there was no insurance contract in ancient times. Despite these shortcomings, there was a conceptual apparatus for defining insurance and making it work (Harrington, 2009). In the Middle Ages, the guild took on this risk-sharing role, which became so important. “The risks which are of God, of the sea, of men of war, of fire, of jettison, of detainment by princes, by cities, or by any other person, of reprisals, of arrest, of whatever loss, of peril, misfortune, impediment or sinister that might occur, with the exception of packing and customs, until the insured goods are safely unloaded at destination” (Roover, 1945). Prior to several people underwrote policies, each writing their name

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_29

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and the amount of risk they were taking on. Nevertheless, Lloyd’s insurers in London or companies or mutual insurance companies permanently incorporated into a joint-stock (Rodin, 2020; Wertheimer, 2006). The works (Colander et al., 2009; Franklin, 2001) laid the foundation for the key points of the concept: • Profits can be derived from a proper assessment of risk; • Premiums received are invested.

4

Conclusion

Insurance is based on the following fundamental factors: (a) Entrepreneurship, which is the motivation for reducing uncertainty and turning it into risk; (b) The desire for risks in terms of mutual aid (joint subsidiary responsibility (Fatkhullina et al., 2022). Entrepreneurship promotes the formation and development of business initiatives in insurance. Cooperation is in line with the social spirit of bringing humankind together. It stimulates the development of insurance companies in various forms. Thus, insurance reduces uncertainty by quantifying it.

References Baughman, J. (1965). Recent trends in business history of Latin America. Business History Review, 39(4), 425–438. https://doi.org/ 10.2307/3112597

Colander, D., Goldberg, M., Haas, A., Juselius, K., Kirman, A., Lux, T., Sloth, B., et al. (2009). The financial crisis and the systemic failure of the economic profession. Critical Review: A Journal of Politics and Society, 21(2–3), 249–267. https://doi.org/10.1080/ 08913810902934109 De Roover, F. E. (1945). Early examples of marine insurance. Journal of Economic History, 5(2), 172–200. https://doi.org/10.1017/ S0022050700112975 Fatkhullina, N. K., Shamsutdinova, V. V., Shchigortsova, E. S., Vakhidova, Z. R., & Khasanova, L. R. (2022). Problems of development of insurance cooperation in Russia. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, & O. V. Kaurova (Eds.), Cooperation and sustainable development (pp. 909–915). Springer. https://doi.org/10.1007/978-3-030-77000-6_107 Franklin, J. (2001). The science of conjecture: Evidence and probability before pascal. Johns Hopkins University Press. Retrieved from https://books.google.ru/books?id=_9k-4DJhK-wC&redir_esc=y. Accessed September 2, 2021 Harrington, S. E. (2009). The financial crisis, systemic risk, and the future of insurance regulation. Journal of Risk & Insurance, 76(4), 785–819. Retrieved from https://www.smu.edu/-/media/Site/Cox/ Departments/RMI/Financial_Crisis_Synopsis.pdf?la=en. Accessed August 10, 2021. Makhiyanova, A. V., Shakirova, D. M., Mavlyudov, A. A., Chechetkina I. I., & Rakhmatullina, L. V. (2019). Social portrait of project organizations: Methodological aspects of conflict relations diagnostics. Journal of Advanced Research in Dynamical and Control Systems, 11(08-Special Issue), 879–883. Rodin, R. S. (2020). About the history of the origin and development of insurance: From the ancient world to the new age (historical and legal essay). Bulletin of the Moscow University of the Ministry of Internal Affairs of Russia, 4, 55–57. https://doi.org/10.24411/20730454-2020-10196 Van Niekerk, J. P. (1998). The development of the principles of insurance law in the Netherlands from 1500 to 1800. Juta & Co, https://books.google.ru/books?id= Ltd. Retrieved from T7blffhVTYwC&printsec=frontcover&hl=ru&source=gbs_ge_ summary_r&cad=0#v=onepage&q&f=false. Accessed August 10, 2021. Wertheimer, E. (2006). Underwriting: The poetics of insurance in America, 1722–1872. Stanford University Press.

School and University Cooperation in the Aspect of Studying Linguistic and Cultural Literacy of Migrant Children Andrey A. Selyutin , Elizaveta V. Limarova , Larisa I. Tararina , and Ekaterina I. Sokolova

Abstract

Keywords

The paper aims to study the linguistic and cultural literacy of migrant children of the senior school level (graduates), which is the basis for forming the linguistic and cultural component “citizen of Russia.” The central hypothesis that needs to be tested within the framework of this study is the fact that the educational environment in Russian schools is designed for Russian-speaking audience with a certain level of linguistic and cultural competence, while foreign children who “suddenly” finds themselves in these conditions have a different linguistic and cultural base (this is especially true for children entering the final grades—9 and 11). Thus, the study of school subjects in Russian cannot guarantee the successful socialization of migrant children. Therefore, in addition to the instrumental study of the Russian language, it is necessary to form stable ideas about the basic linguistic and cultural elements of Russian society that are responsible for successful socialization and professionalization. Therefore, the fundamental scientific task of this research is to compare the linguistic and cultural literacy of Russian speakers in the Chelyabinsk Region aged 16–18 and the linguistic and cultural literacy of migrant children aged 16–18 to identify precedent gaps responsible for the formation of the necessary knowledge and adaptation mechanisms for successful socialization.

National identity Cultural identity Linguistic identity Polyethnicity Problem of integration Assimilation Adaptation Linguistic and cultural competence Educational adaptation

A. A. Selyutin Chelyabinsk State University, Chelyabinsk, Russia E. V. Limarova (&) Gerasimov All-Russian State Institute of Cinematography, Moscow, Russia e-mail: [email protected] L. I. Tararina Institute of World Civilizations, Moscow, Russia E. I. Sokolova Plekhanov Russian University of Economics, Moscow, Russia e-mail: [email protected]

.

. . .

..

. .

JEL Classification

I2

1

.

Z1

Introduction

Changes in society associated with the transition to a knowledge economy and digital technologies form a new system of relationships between people of different nationalities, which is especially characteristic of a multicultural society. In this sense, the uniqueness of the Chelyabinsk Region, as a region with a historically developed multicultural social environment, creates the necessary basis for conducting a full-scale fundamental study of the linguistic and cultural component “citizen of Russia” in the linguistic consciousness of migrant children. This component is responsible for the ability to adequately socialize and adapt to the realities of the host society. The research experience of the Chelyabinsk Region can be scaled to other subjects of the Russian Federation that experience similar problems in working with foreigners at the school level and during their subsequent professionalization. According to the Rosstat regional office of Chelyabinsk Region, in 2019, the Chelyabinsk Region showed the following indicators on international migration: 15,222 people arrived in the Chelyabinsk region from countries near and far abroad; 8207 people left the Chelyabinsk region (Rosstat regional office of Chelyabinsk Region, n.d.). An increase in migration flows (the arrival of the adult population for work) inevitably leads to the need for social adaptation of children

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_30

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of labor migrants since most migrants come with their families or plan to move their families to Russia in the near future. On the one hand, the trend towards an increase in the number of migrants arriving in the country is associated with a simplified procedure for obtaining citizenship (the interview in Russian as a foreign language has been simplified, there is no written part). On the other hand, it is associated with the abolition of the ban on work for students of higher education universities of the Russian Federation. Nowadays, according to the Ministry of Education and Science of the Chelyabinsk region, Chelyabinsk has 142 schools, in which more than 2500 migrant children study regardless of age and proficiency in the Russian language. Accordingly, the proportion of native speakers of Russian as a non-native language in the class composition is relatively high and can reach 5–10%. The most difficult group is represented by children of senior school age (graduates), who often come to the senior class without knowledge of the Russian language. The relevant ministries have launched certain targeted programs, for example, “Scientificmethodological, methodological, and staffing support for teaching the Russian language and the languages of the peoples of the Russian Federation,” approved by order of the Ministry of Education of the Russian Federation No. R-60 of May 16, 2019. The goals of this program are “to develop the use of the Russian language as the basis of the civil self-identity of the peoples of the Russian Federation.” However, in this case, attention is paid only to the instrumental study of the Russian language without a mental basis. In this research, the authors propose a comprehensive study of the linguistic and cultural component “citizen of Russia,” which will improve the knowledge of the Russian language and make a mental restructuring of the linguistic consciousness of migrant children, contributing to their successful adaptation to social realities. The authors also believe that the research results can serve as a basis for destroying the stereotype about the representation of the Chelyabinsk Region and Chelyabinsk, in particular, as a disadvantaged industrial city, which is an undoubted advantage in terms of attracting labor migrants to the region.

2

Materials and Methods

The concept of linguistic and cultural literacy is based on the concept of “cultural literacy,” introduced into contemporary science by Hirsch et al. (2002). In the understanding of the scientist, a person must have a certain systematized body of knowledge about the world, which is necessary for successful orientation and adequate functioning. According to Hirsch, such a system may include verbal and non-verbal knowledge about various areas of human activity (material

and spiritual), which allows the individual to work with incoming information adequately: understand it, see the context, draw certain conclusions, and form own opinion regarding each event. Actually, the most significant contribution of Hirsch in the development of the concept of cultural literacy can be considered the dictionary “Cultural Literacy,” which includes 5000 vocabulary units (names, statements, dates, and terms). According to the author of the dictionary, a person with a certain level of cultural literacy has an idea about each of the listed units. In Russian linguistics, this concept was reflected in the 1994 work “Are you literate? Or 5000 words that will help you check this” by Pushnykh and Shevchenko (1994). Further, the concept of the linguistic and cultural dictionary (or minimum) was developed by representatives of the Interuniversity Academic Laboratory of Intercultural Communication under the leadership of L. A. Shkatova. The results of surveys that started in 2007 were reflected in several works by L. A. Shkatova, her students, and her followers (Shkatova, 2009). Studies conducted based on surveys in 2007 and 2020 in Kazakhstan are of considerable interest. These surveys open up the possibility of considering the studied issue in a comparative aspect (Shalgimbekova & Shtukina, 2014; Shuleiko, 2009). O. K. Ansimova extends the concept of linguistic and cultural literacy to foreigners mastering the Russian language and culture (Ansimova, 2013). Thus, the question is raised not only about the linguistic and cultural minimum that native speaker of the Russian language should master, but also about the minimum that native speaker of another culture and another language needs to master. O. I. Khalupo connects the concept of linguistic and cultural competence with the concept of linguistic and cultural literacy, considering the latter preferable. In her opinion, linguistic and cultural literacy “do not fully reflect all necessary skills, characteristics, and abilities of a person in our era. Currently, for more correct expression of these properties and qualities of a person, people must have certain knowledge in many areas of human activity, which allows them to properly understand general, i.e., not related to the professional sphere, information for the necessary adaptation to today’s society” (Khalupo, 2011). Following the studies of Professor L. A. Shkatova, which includes in the linguistic and cultural competence “externalized by the language (expressed in key words, phrases, phraseological units, and precedent texts) basic knowledge in all areas of human activity, allowing to adequately understand non-special information to navigate in the current world” (Shkatova, 2009), O. I. Khalupo notes that “the presence of linguistic and cultural competence among schoolchildren, for whom Russian is not their native language, can contribute to the solution of various socio-cultural problems and help cope

School and University Cooperation in the Aspect of Studying Linguistic and Cultural Literacy of Migrant Children

with certain communicative tasks in the future” (Khalupo, 2011). Simultaneously, “the study of the cultural semantic meaning of linguistic signs—key words, which are formed during the interaction and mutual influence of two important subject areas: language and culture” is recognized as an important component of linguoculturology. Researchers agree on the need to compile a certain vocabulary, dictionary, lexical, linguistic, and cultural minimum necessary for entering a culture through language that reinforces the key ideas of culture (Musina, 2009). Meanwhile, the problem of identifying the linguistic and cultural minimum is due to the following reasons. First, the linguistic picture of the world, public consciousness, and norms are dynamic, which means that the linguistic and cultural minimum requires constant updating, and the criteria for measuring the development of linguistic and cultural competence require a differentiated approach, considering age groups. Second, the elements of the national picture of the world can be socially and individually marked. Thus, it is important that the elements of the linguistic and cultural minimum are really elements of the collective consciousness and belong to everyone, which requires careful social and statistical research. Speaking about this issue, A. K. Kiklevich touches upon the problems in describing concepts as units of collective consciousness, “Linguists, who write about concepts do not have the habit… to support their linguistic observations with material from sociological studies—how else, if we are talking about collective consciousness?! There are few exceptions… So, the question of the conventionality of concepts is solved “by eye,” based on the intuition of a particular scientist” (Kiklevich, 2014). The need to select and represent the key ideas of linguistic culture is especially acute in connection with the education of migrant children in Russian schools. In addition to the problems of teaching the Russian language, researchers note the problem of adaptation carried out by linguistic and non-linguistic means. The learning process as a whole is considered as a process of social adaptation, the resources of a general educational organization are analyzed, the possibilities of adaptation by means of the Russian language and the entry of foreign children into the Russian linguistic and cultural environment are also analyzed, including in certain regions of the Russian Federation (Barinov & Dorokhova, 2019; Inisheva, 2015; Kudryavtseva, 2012; Zborovsky & Shchuklina 2013). A separate place in the question of the means of adaptation of migrant children is taken place by patriotic education (Ansimova, 2014a). On the one hand, patriotism acts as the foundation on which it is possible to consolidate a multinational society (Andreeva & Maximova, 2018). On the other hand, national

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patriotism acts as means of entering a specific foreign language into the country’s culture (Denisenko, 2017). Thus, the key set of concepts that form the basis of linguistic and cultural literacy has to reflect not only the most significant areas of human activity (i.e., economy, culture, politics, social structure, history, education, etc.) but also such non-material categories as a national idea, national consciousness, and national mentality. If the linguistic and cultural literacy of a native speaker raises the level of their personal language culture and, as a result, the culture of society as a whole, then linguistic and cultural literacy for a foreign speaker becomes a necessary means and tool for integrating into the culture, society, and the country (Skuratovskaya, 2009). In this process, an important component is a patriotic education, the central concept of which, according to the authors, is the concept of “citizen of Russia,” which contributes to the removal of the contradiction between the national consciousness and the society of other cultures. As it has been already noted, the problem of studying linguistic and cultural literacy is interdisciplinary, which entails the choice of a specific methodology (Ansimova, 2014b). In addition to the traditional methods of primary information collection (i.e., surveys, interviews, and questionnaires), the authors also used methods of in-depth analysis of information designed to form a holistic view of the studied problem. • Quantitative analysis (which allowed establishing a correlation between the particular choice of lexical units and grammatical forms, as well as the meaning of the text); • Conceptual analysis through the analysis of various types of discourses, analysis of dictionary interpretations of word meanings, analysis of compatibility, and analysis of phraseological units, proverbs, and precedent texts; • Comparative approach (which allowed tracing lacunar processes in the linguistic consciousness of children, native speakers, and children of migrants, as well as identifying the processes of interpenetration and mutual enrichment of different cultures; • Associative experiment relates to project methods and allows revealing the ideas about Russian culture and Russian values that really exist in the minds of native speakers and children of migrants. Using the associative experiment, it is possible to verbalize the realities that reflect the prevailing stereotype of perception of Russia in this culture. The use of a combination of these methods ensures the reliability of the results of the study and the completeness of the study of the scientific problem.

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Results

According to Hirsch, successful interethnic communication requires such a component as knowledge of certain cultural stereotypes necessary for successful communication with representatives of a given culture (Hirsch et al., 2002). In fact, the success of communication depends on the presence/absence of knowledge about key cultural realities and their linguistic equivalents in the linguistic consciousness of interlocutors. In this regard, linguistic and cultural literacy can be considered a specific tool for cognition and communication, necessary for the adequate receipt, processing, and storage of information in oral and written form. Therefore, the choice of the research purpose is not accidental—the study of the linguistic and cultural component “citizen of Russia” in the linguistic consciousness of migrant children of senior school age (graduates) as the basis of their linguistic and cultural literacy and ability to successfully adapt in a multicultural region (on the example of the Chelyabinsk Region). In accordance with the given goal, the following tasks were set. 1. To clarify the content of the concept of “linguistic and cultural literacy,” formed by the American culturologist and teacher Hirsch, in accordance with the conditions of its application to describe regional linguistic and cultural realities; 2. To determine the key realities and their linguistic representations, including the realities related to the regional sphere, allowing them to be correlated with the levels of the linguistic and cultural component “citizen of Russia”; 3. To develop questionnaire matrices and elements of associative experiment and conduct survey activities with respondents; 4. To compare the identified linguistic and cultural literacy of children of native speakers of the Russian language and children of migrants by levels; to identify lacunar representations of native speakers of Russian as a native language, as well as children of migrants. Currently, the study is at the design stage (setting key goals, choosing the research material, and determining indicators for the target group).

society. Thus, for example, one of the key areas of the state program of the Russian Federation “Development of education,” approved by the Decree of the Government of the Russian Federation No. 1642 of December 26, 2017, is “education of a harmoniously developed and socially responsible personality based on the spiritual and moral values of the peoples of the Russian Federation, historical and national cultural traditions.” However, the authors see that a number of issues regarding work with migrant children remain unresolved in the area of legislation, migration policy, health care, and education (Zheleznyakova, 2012), which can possibly lead to various social upheavals. The complexity of working with this age and social group (especially seniors) is due to the following reasons: (1) A significant part of migrant schoolchildren communicates in their native language in the family because parents of these children were born in the post-Soviet space, when knowledge of the Russian language was not mandatory; (2) The multicultural environment of the Chelyabinsk Region creates unique conditions for the “mixing” of national languages and cultures, which creates certain difficulties in communication because teachers and students do not own this common linguistic and cultural basis of communication—the result of which may be a misunderstanding of the causes of individual verbal and non-verbal reactions; (3) Although attempts are being made to create methodological complexes and developments for teaching the Russian language to children of migrants, this work is still far from complete, and it is unlikely to be completed without the consideration of the component of linguistic and cultural literacy; (4) There is no centralized education system for migrant children based on common approaches, principles, and methods. The authors believe that under these conditions, the study of the linguistic and cultural component can streamline and systematize educational work with migrant children as well as serve as the basis for their successful socialization.

References 4

Conclusion

The study of linguistic and cultural literacy of the population is an important and, at the same time, urgent problem for today’s society because knowledge of precedent texts, common terminology, cultural stereotypes, etc., is a necessary condition for entering the language environment of

Andreeva, Y. A., & Maximova, K. S. (2018). Development and strengthening of intercultural communication as a tool to foster tolerance in the younger generation. In I. I. Burlakova, & I. V. Dergacheva (Eds.), Patriotic education: From words to deeds: A collection of articles (pp. 49–90). Polygraph service. Ansimova, O. K. (2013). Lexicographic interpretation of linguistic and cultural units: A model of the dictionary of linguistic and cultural literacy (for students of Russian as a foreign/non-native language)

School and University Cooperation in the Aspect of Studying Linguistic and Cultural Literacy of Migrant Children (dissertation of the candidate of philological sciences). Publishing House of National Research Tomsk State University. Ansimova, O. K. (2014a). Dictionary of linguistic and cultural literacy: Examples of dictionary entries. Bulletin of Tver State University, Series: Philology, 4, 74–79. Ansimova, O. K. (2014b). The concept of linguistic and cultural literacy: Relevance and prospects. Philology and Literature, 7(34), 3–6. Retrieved from http://philology.snauka.ru/2014b/07/844. Accessed January 11, 2021. Barinov, R. G., & Dorokhova, M. V. (2019). Experience of adaptation of migrant children in the linguistic and cultural space on the territory of the Siberian Federal District. Culture, Science, Education, 1(50), 107–114. Denisenko, O. I. (2017). Russian (national) patriotism education peculiarities of the immigrant school-children as the social-cultural adaption tool for the socio-cultural space of the recipient country. The USA and Russia experience comparative analysis. Modern Problems of Science and Education, 2, 179. Retrieved from https://www.elibrary.ru/item.asp?id=29036248. Accessed January 11, 2021. Hirsch, E. D., Joseph, Jr., Kett, F., & Trefil, J. (2002). The new dictionary of cultural literacy: What every American needs to know. Houghton Mifflin Company. Inisheva, S. V. (2015). Adaptation of migrant children in the society of the city of Yekaterinburg. Methods and forms of work with migrants in a secondary school. In Sustainable development of Russian regions: economic policy in conditions of external and internal shocks: Materials of the XII Scientific Conference (pp. 549–562). Yekaterinburg, Russia: Publishing House of Ural State University. Khalupo, O. I. (2011). Language culture and linguistic and cultural competence. Bulletin of the Chelyabinsk State University, 3(218), 152–155.

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Kiklevich, A. K. (2014). Dynamic linguistics: Between code and discourse. Humanitarian Center. Kudryavtseva, T. A. (2012). Integration of migrant children into a new socio-cultural environment in the process of teaching the Russian language. Russian Language in the National School, 3, 8–12. Musina, L. R. (2009). Knowledge of precedent names as an indicator of linguistic and cultural literacy of applicants. Lingua Mobilis, 2(16), 83–87. Pushnykh, V. A., & Shevchenko, N. N. (Eds.). (1994). Are you literate? Or 5000 words that will help you check this. Publishing House of National Research Tomsk State University. Rosstat regional office of Chelyabinsk Region. (n.d.). Chelyabinsk region in numbers. Retrieved from https://chelstat.gks.ru/publication_ collection/document/42480. Accessed January 11, 2021. Shalgimbekova, K. S., & Shtukina, E. E. (2014). Linguo-cultural literacy dictionary of citizens of Kazakhstan north region: Compilation experience. Journal of Historical, Philological and Cultural Studies, 3(45), 243–245. Shkatova, L. A. (2009). Dictionary of linguistic and cultural literacy as a component of control and measuring materials. Journal of Historical, Philological and Cultural Studies, 2(24), 738–741. Shuleiko, Y. A. (2009). On the project of the dictionary of multicultural literacy of the inhabitants of Kostanay. Lingua Mobilis, 2(16), 112– 116. Skuratovskaya, Y. L. (2009). Linguistic and cultural literacy as the basis of communicative competence. Lingua Mobilis, 2(16), 100– 103. Zborovsky, G. E., & Shchuklina, E. A. (2013). Education of migrant children as a problem of their social adaptation. Sociological Research, 2, 80–91. Zheleznyakova, E. A. (2012). Migrant’s children at modern school of Russian: Ways of language adaptation. Bulletin of Penza State University, 28, 774–778.

Economic and Legal Foundations and Cooperative Mechanisms for Sustainable Development

Biosocial Essence of Person and Crime Vadim A. Chukreev

and Tatyana V. Pinkevich

Abstract

Keywords

The paper focuses on problematic issues related to ensuring the criminological security of the biosocial essence of a person in the conditions of current social phenomena and processes occurring in the life of society. The use of the latest technologies in biology and medicine and the adoption of a number of legislative acts contributed to the development of the convergence of biological, information, nano-, and cognitive technologies, which expanded research and increased the possible impact on the biosocial essence of a person, including for criminal purposes. In this regard, the authors conclude that it is necessary to change approaches to protecting the individual from biosocial interference in his or her essence. In this regard, the analysis of the issues of ensuring criminological security in the context of digital transformation is presented, according to which the authors conclude, that it is necessary to change approaches to protecting the individual from criminal encroachments associated with the violation of bioethics and the commission of serious and especially serious crimes against biological essence of a person. In the author’s opinion, it is necessary to prepare and adopt a strategy for ensuring the criminological security of the biosocial essence of a person that will determine the main directions of activity in this direction, reduce the level of criminological threats, and increase the level of protection of the population.

Biosocial theory of personality Criminological security Criminal violence Advanced technologies Transplantation Surrogacy Genetic engineering

V. A. Chukreev (&) Prosecutor’s Office of the Sverdlovsk Region, Ekaterinburg, Russia e-mail: [email protected] T. V. Pinkevich Management Academy of the Ministry of the Interior of Russia, Moscow, Russia

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JEL Classification

K140

1

Introduction

Scientists have repeatedly addressed the study of the biosocial theory of personality and considered it in relation to philosophy, sociology, criminology, and other sciences (Ignatov, 2016). This is not accidental because a person is a complex multi-level system where biological, physical, psycho-physiological, social, and spiritual principles, consciousness, and the subconscious sphere are interconnected. In the scientific world, there are other views regarding the definition of the biosocial essence of a person. Moreover, other approaches are proposed, including orthodox environmental concepts and others (Ignatov, 2016; Lamarck, 1959). The authors give preference to the biosocial theory of personality because, in criminological science, its study is directly related to the behavior of the offender, victim, and crime prevention. The authors also agree with the opinion of Ignatov, who claims that a person occupies a central position in the criminological study of crime (Ignatov, 2016). Analyzing the features of ensuring the criminological security of the biosocial essence of a person in the conditions of current social phenomena and processes occurring in the life of society, their influence on all aspects of life should be noted. It is also necessary to emphasize that in the context of digital transformation, significant changes in crime and in ensuring criminological security have been identified, which directly affects the protection of the individual, society, and

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_31

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the state. Qualitative changes in crime require theoretically substantiated proposals for improving Russian legislation and rethinking and reorienting approaches to protecting the rights of citizens from criminal encroachments in general. It is well-known that crime has become much more aggressive, larger, and technically more advanced in recent years; new ways of influencing the biological essence of a person have appeared, which requires an innovative approach in terms of determining theoretically sound measures for the social and legal protection of society from criminal violence because it strengthens and develops the aggressive potential of future social relations. The research aims to obtain new knowledge to study the problems of protecting the biosocial essence of a person from criminal violence using advanced innovative technologies. To solve it, it is necessary to determine the range of crimes that are committed in this area, pay attention to the current state of crimes committed against the biological essence of a person, analyze its features, and evaluate the current state of research activities in the area of ensuring the criminological security of the biosocial essence of a person.

2

Materials and Methods

During the research, the authors applied system-structural analysis to identify current threats to the considered phenomenon and promising ways to optimize the preventive impact on protecting a person from criminal violence. Moreover, general (statistical, predictive systemic, etc.) and special scientific methods (comparative-legal, formal-logical, etc.) were used.

3

Results

In today’s conditions, when the latest technologies are used in human life, including cognitive science, it is necessary to create a system of criminological security for a person as a biosocial being, which has been repeatedly drawn to the attention of scientists (Kudashov & Omelchenko, 2014; Lektorsky, 2021; Lektorsky et al., 2012). In this research, the authors consider the impact on the biosocial essence of a person in two following aspects: • The aspect is based on the principles of bioethics, in accordance with international, regional, and national regulations (Council of Europe, 1997; UNESCO, 1997, 2005), which define the obligations of states to implement the principles set out in these documents, including respect for human rights and fundamental freedoms while using advances in the biological and medical sciences, as

well as the latest technologies. This also takes measures that guarantee human dignity, fundamental rights, and individual freedoms; • The criminal aspect includes unauthorized impact on the biosocial essence of a person and its anatomical and physiological properties. Article 10 of the UN Universal Declaration on the Human Genome and Human Rights establishes the legal basis for protecting a person in research related to their genome. Thus, “no research concerning the human genome and no applied research in this area, especially in the areas of biology, genetics, and medicine, must take precedence over respect for the human rights, fundamental freedoms, and human dignity of individuals or, as appropriate, groups of people” (UNESCO, 1997). Several studies are devoted to this issue, which allowed determining the main scientific approaches in the named doctrinal direction. At the national level, people must rely on the provisions of Article 4 of the Federal law “On the basics of protecting the health of citizens in the Russian Federation” (Federation, 2011), which establishes the basic principles of health protection and the provisions, according to which the priority of the patient’s interests in the provision of medical care is realized by observing ethical and moral standards, respectful and humane attitude on the part of medical workers, and other employees of a medical organization (Article 6 of the Law). The growth of current human rights problems in the area of biomedicine and the development of biotechnologies (the problem of abortion, surrogate motherhood, euthanasia, reproductive technologies, transplantation of human organs and tissues, genetic engineering, and others) have led to the adoption of several legislative acts. Simultaneously, many problems that require solutions have not yet found their legislative consolidation, or the existing content of legal norms does not meet current requirements and bioethics. It is necessary to take measures that guarantee the individual their rights and freedoms; the interests and welfare of the individual must prevail over the interests of society or science. Every person has the right to respect his or her private life; discrimination in any form against a person based on their genetic heritage is prohibited. Any actions related to medical intervention are carried out with the consent of the patient or their legal representatives. Indeed, the development of the latest technologies and the development of digital technologies have contributed to the development of the market for artificial substitutes for human organs (artificial kidney, heart, vertebrae, organ transplantation, etc.). It was the convergence of technologies that contributed to the integration of models of the human body at various levels (from cells to the whole organism).

Biosocial Essence of Person and Crime

For example, research is being carried out in the area of “simulation of the human cerebral cortex (Blue Brain Project). In the future, it will be possible to fully model living organisms, from the genetic code to the structure of the organism, its growth, and development, up to the evolution of the population” (Pinkevich et al., 2021). However, today, there is a question about “interference in the genetic code and the processes of human life,” that the restructuring of the mind will use cognitive technologies, including “the use of biotechnology, decoding the genetic code, implantation of electronic devices, the use of nano-medical robots, cell technologies, and modeling of biochemical processes” (Frankel & Chapman, 2000; Locke, 1985). It should also be noted that other innovations can affect the human mind, for example, the brain interface. “The brain-computer interface is a system that provides communication between the brain and external device. The braincomputer interface registers the bioelectrical activity of the brain, analyzes it, and translates it into commands that are transmitted to the controlled device to perform the desired action” (CMI Brain Research, 2021). The biofeedback method is often used at the heart of the “neurocomputer interface” (Medvedev, 2008). Many technologies can affect the biosocial essence of a person (HOTT Project, 2022). However, where is the boundary of the lawful use of the latest technologies in the process of influencing the biosocial essence of a person, introduction, and practical application of these technologies, as well as criminal interference? Law enforcement practice has already known a sufficient number of crimes, which indicate interference in the biosocial essence of a person and the grave consequences that come in the future. These are surrogate motherhood, transplant tourism, human trafficking, trafficking in human organs and tissues for transplantation, etc. For example, in 2020, 25 crimes under Articles No. 2, 3, and 127.1 (Trafficking in human beings) and 127.2 (Use of slave labor) of the Criminal Code of the Russian Federation were recognized, which is 68% more than in 2019, including minors under the age of one year (Portal of Legal Statistics of the General Prosecution of the Russian Federation, 2019). These are babies born by surrogate mothers and transferred to representatives of the organization for sale abroad. There are cases of the sale of newborns into sexual slavery. Attention should also be paid to crimes related to the transplantation of human organs and tissues. According to the ILO, about forty thousand people became victims of human trafficking. There were about 90% of people associated with forced labor and sexual exploitation, and 10% were associated with other activities, including transplant tourism and trafficking of human organs and tissues (Nomokonov & Sudakova, 2020; UNODC, 2018).

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According to literary sources, 10% of all transplantations are considered illegal and, on average, amount to twelve thousand operations per year (Broumand & Saidi, 2017; Portal of Legal Statistics of the General Prosecution of the Russian Federation, 2020, 2021; Pride & Medvedev, 2022). However, according to the statistical indicator, the number of registered crimes does not correspond to reality, which gives reason to believe that they are of high latency. In Latov’s opinion, while considering issues related to the regulation of human organ and tissue transplantation, special attention should be paid not to the “semi-mythical trade in organs but to prosaic medical corruption.” According to the researcher, transplanting a human organ may not be a criminal operation with an increased risk to health but simple bribery of doctors. Therefore, the progress of people with high incomes in the queue to prevent such crimes must be tracked in such situations (Latov, 2007). There are concerns about the use of euthanasia, reproductive technologies, and genetic engineering; the list can be gone on. Several problems also arise that apparently should be resolved without delay, i.e., the legislative framework, which protects a person from illegal interference in his or her biosocial essence and does not allow unscrupulous employees who have access to these technologies to use them in violation of bioethics and harm the patient. After all, the problem lies in the fact that interference in the biosocial essence of a person without any consequences is impossible. For example, intervention in the genetic code of a person will entail a change in their behavior. Consequently, consciousness, reason, and social perception will radically change; a transformation of the human mind will occur, which will also affect ethical systems. This can lead to serious consequences if these processes occur uncontrollably. The second problem, which should be considered, is the criminogenic risks that any introduction of the latest technologies carries with it. The authors agree with Pinkevich, who asserts that the formation of a digital society brings positive and negative changes to society. Simultaneously, the ongoing transformation carries a huge potential for criminological risks and threats (United Nations, 2019). In this case, the authors consider the crime, which, according to statistics, is increasing exponentially. Moreover, the results of studying such a phenomenon as transnational organized crime indicate that they continue to control illegal migration, human trafficking, illegal removal, storage, transportation, and use of human organs and tissues for transplantation, etc. (Fiona et al., 2019; United Nations, 2019). In this regard, it is necessary to change approaches to protect a person from biosocial interference in its essence, which will require the restructuring of preventive activities and increasing the effectiveness of criminal law impact; this

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must completely change the content of personal protection. This requires an integrated approach and new directions, considering the accepted directions of digital transformation and the formation of digital medicine, ensuring the criminological security of the biosocial essence of a person. Moreover, it is necessary to use the results of the criminal situation, analysis of criminogenic risks, and monitoring of the socio-economic and socio-political situation, which will consider the features of current criminogenic risks and determine the directions for ensuring the criminological security of the studied type. The monitoring of criminal legislation, which will reveal gaps in criminal law norms, as well as errors in the legal technique of criminal law norms during their development and adoption, will be of great importance. Attention should be paid to activities to reduce criminogenic risks, including the preparation of measures of sociopolitical and socio-economic nature, as well as measures of a socio-legal nature. In the context of digital transformation, special importance is given to the creation of a legislative framework, including the improvement of criminal, penal, administrative, and other branches of legislation to counter encroachments on the biological essence of a person, as well as legislative acts regulating the creation and application of new technologies in biology and medicine. Thus, attention should be paid to the regulatory requirements that govern the provision of criminological security of the biosocial essence of a person in accordance with international legal standards and international obligations of the Russian Federation. Particular attention should be paid to the organizational, technical, and victimological blocks of ensuring criminological security, designed to facilitate the organization of preventive activities, the adoption of strategic decisions to ensure the protective, control, and supervisory functions of authorities and institutions, which develop the convergence of biological, information, nano-, and cognitive technologies in medical and social sectors, improvement of preventive activities, and its regulatory, informational, methodological, and resource support. Success in achieving an acceptable level of the named direction of security will depend on creating appropriate mechanisms for regulatory, informational, organizational, and methodological support for this type of activity and on the system of applied means of ensuring criminological security. In the current situation, it is crucial to prepare and adopt the strategy for ensuring the criminological security of the biosocial essence of a person, including the main provisions (goals, objectives, principles, and conceptual apparatus), directions for ensuring security, organizational foundations, and mechanisms for its implementation.

V. A. Chukreev and T. V. Pinkevich

This strategy must be based on well-known principles, including the legality, humanism, etc., but the principle of convergence should also be considered, as well as the direction of the strategy should be ahead of modern trends (Brain-Computer Interface, 2022). In this regard, it is necessary to use the results of the criminal situation, the analysis of criminogenic risks, the monitoring of the socio-economic and socio-political situation, the results of the analysis of the social situation in society, and the medium-term forecast of crime in the process of preparing it. The analysis and monitoring of criminal legislation will be of great importance. It will reveal gaps in criminal law norms and errors in the legal technique of criminal law norms during their development and adoption. It is necessary to pay attention to activities to reduce criminogenic risks, including the improvement of legal regulation of preventive activities and also the organizational and technical block and victimological prevention. Additionally, it is necessary to use the experience of international cooperation and interaction with all law enforcement agencies while ensuring criminological security. Such activities will reduce the level of criminological threats and increase the level of protection of the population.

4

Conclusion

Thus, in view of the development of the latest technologies, it is necessary to create a system of criminological security for a person as a biosocial being. In this regard, the authors considered the direction of the impact on the biosocial essence of a person in two aspects: based on the principles of bioethics and criminal, including the impact on anatomical properties of a person and the physiological properties of a person. Attention is drawn to the criminogenic risks entailed by every introduction of the latest technologies, which requires new approaches to protecting the individual from biosocial interference and restructuring preventive activities. In this regard, it is proposed to prepare a Strategy for ensuring the criminological security of the biosocial essence of a person, the adoption of which will help reduce the level of criminological threats and increase the level of protection of the population.

References Brain-Computer Interface. (2022, April 18). In Wikipedia. Retrieved https://en.wikipedia.org/wiki/Brain-computer_interface. from Accessed January 20, 2022. Broumand, B., & Saidi, R. F. (2017). A new definition of transplant tourism. International Journal of Organ Transplantation Medicine, 8(1), 49–51.

Biosocial Essence of Person and Crime CMI Brain Research. (2021, March 06). Brain-computer interface (BCI). Retrieved from https://cmi.to/интepфeйc-мoзг-кoмпьютep/. Accessed January 20, 2022. Council of Europe. (1997). CETS 164—Convention for the protection of human rights and dignity of the human being with regard to the application of biology and medicine: Convention on human rights and biomedicine. Retrieved from https://rm.coe.int/168007cf98. Accessed January 20, 2022. Fiona, D., Catherine, B., & Larsen, J. J. (2019). Migrants and their vulnerability. Geneva, Switzerland: IOM Publications. Retrieved https://reliefweb.int/sites/reliefweb.int/files/resources/ from migrants_and_their_vulnerability.pdf. Accessed 20 January 2022. Frankel, M., & Chapman, A. (2000). Human inheritable genetic modifications: Assessing scientific, ethical, religious, and policy issues. Washington, DC: AAAS. Retrieved from https://cmi.to/ интepфeйc-мoзг-кoмпьютep/. Accessed January 20, 2022. HOTT Project. (2012–2015). Official website of the project. Retrieved from http://hottproject.com/about-the-crime/trafficking-in-persons. html. Accessed January 20, 2022. Ignatov, A. N. (2016). On the biosocial nature of crime. Vestnik of St. Petersburg University, 14(1), 63–73. Retrieved from https:// lawjournal.spbu.ru/article/view/2747/2554. Accessed January 20, 2022. Kudashov, V. I., & Omelchenko, N. V. (2014). Global future 2045. Convergent technologies (NBICS) and transhumanist evolution. Russian Journal of Philosophical Sciences, 8, 176–181. Lamarck, J. B. (1959). Analytical system (Vol. 2). Academy of Sciences of the USSR. Latov, Yu. V. (2007). Criminal transplantation—Smoke without fire. HSE University. Lektorsky, V. A., Pruzhinin, B. I., & Alekseeva, I. Yu. (2012). Convergence of biological, information, nano- and cognitive technologies: Challenge to philosophy (materials of the round table). Questions of Philosophy, 12, 3–23. Lektorsky, V. A. (2021). On the philosophical issues of artificial intelligence and cognitive studies. Russian Journal of Philosophical Sciences, 64(1), 7–12. https://doi.org/10.30727/0235-1188-202164-1-7-12 Locke, J. (1985). An essay concerning human understanding (Vol. 1). Mysl. Medvedev, D. A. (2008). Convergence of technologies is a new determinant of the development of society. Retrieved from http:// transhumanism-russia.ru/content/view/621/. Accessed January 20, 2022.

163 Nomokonov, V. A., & Sudakova, T. M. (2020). Positive criminology in the struggle for a person. Russian Journal of Criminology, 4(1), 20– 29. Pinkevich, T. V., Smolyaninov, E. S., & Ishchuk, Ya. G. (2021). Digital criminology: A textbook. Academy of Management of the Ministry of Internal Affairs of Russia. Portal of Legal Statistics of the General Prosecution of the Russian Federation. (2019). The state of crime in Russia, January–December 2019. Retrieved from http://crimestat.ru/analytics. Accessed January 20, 2022. Portal of Legal Statistics of the General Prosecution of the Russian Federation. (2020). The state of crime in Russia, January–December 2020. Retrieved from http://crimestat.ru/analytics. Accessed May 3, 2021. Portal of Legal Statistics of the General Prosecution of the Russian Federation. (2021). The state of crime in Russia January–December 2021. Retrieved from http://crimestat.ru/analytics. Accessed January 20, 2022. Pride, V., & Medvedev, D. A. (2022). The NBIC convergence phenomenon: Reality and expectations. Retrieved from http:// transhumanism-russia.ru/content/view/498/. Accessed January 20, 2022. Russian Federation. (2011). Federal law “On the basics of protecting the health of citizens in the Russian Federation” (21 November 2011, No. 323-FZ). Moscow, Russia. Retrieved from https://base. garant.ru/12191967/. Accessed January 20, 2022. UNESCO. (1997). Universal declaration on the human genome and human rights (adopted on November 11, 1997 at the 29th session of the UN General of UNESCO). Paris, France. Retrieved from https:// www.un.org/ru/documents/decl_conv/declarations/human_genome. shtml. Accessed January 20, 2022. UNESCO. (2005). Universal declaration on bioethics and human rights (adopted by acclamation on 19 October 2005 at the 33rd session of the UN General Conference of UNESCO). Paris, France. Retrieved from http://unesdoc.unesco.org/images/0014/001461/146180r.pdf. Accessed January 20, 2022. United Nations. (2019). Population division: World population prospects 2019. Retrieved from https://population.un.org/wpp/ DataQuery/. Accessed January 20, 2022. UNODC. (2018). Global report on trafficking in persons, 2018. New York, NY: UN. Retrieved from https://www.unodc.org/documents/ data-and-analysis/glotip/2018/GLOTiP_2018_BOOK_web_small. pdf. Accessed January 20, 2022.

Assessing the Institutional Framework for Russia’s Foreign Trade Cooperation with North African Countries: Foreign Trade and Customs Aspects Natalya A. Budarina, Svetlana N. Bludova, Irina Yu. Tataeva, Elena V. Khokhlova, and Elena V. Filimonova

Abstract

Keywords

The paper examines the formation of the institutional framework of foreign trade and customs cooperation of EAEU member countries with the North African countries. Priority countries for foreign trade and customs cooperation were identified based on the ranking of the attractiveness of foreign markets for Russian exports of non-energy commodities (including indicators such as imports from Russia, trade complementarity, import growth rate, ease of imports, and transport accessibility). The authors analyzed customs and tariff regulations in the Russian industrial zone in the Economic Zone of the Suez Canal of the Arab Republic of Egypt. Based on the analysis of the current state of the contractual legal framework between these countries, the authors propose directions for further improvement in the field of customs regulation of foreign trade cooperation. In particular, it is proposed to expand Russia’s zone of cooperation with Egypt to other North African countries. In particular, it is proposed to form an institutional structure for the pre-shipment inspection of all foreign trade cargoes.

Foreign trade Customs regulation International agreements North Africa EAEU

N. A. Budarina e-mail: [email protected] I. Yu. Tataeva e-mail: [email protected] E. V. Khokhlova North Caucasus Federal University, Stavropol, Russia e-mail: [email protected] E. V. Filimonova Stavropol State Medical University of the Ministry of Health of the Russian Federation, Stavropol, Russia

.

.

JEL Classification

F53

1

.

F55

Introduction

The relevance of cooperation with African countries for the EAEU is quite high. In the future, as predicted by the international community, the countries of this continent will show double-digit economic growth rates in the twenty-first century. The formation of the African continental free trade zone on the continent brings new opportunities for implementing customs and foreign trade cooperation of the EAEU, including the Russian Federation, with this integration association.

2

N. A. Budarina . S. N. Bludova (&) . I. Yu. Tataeva Russian Customs Academy, Lyubertsy, Russia e-mail: [email protected]

..

Methodology

The research aims to analyze the existing institutional framework of foreign trade cooperation between Russia and the North African countries in terms of customs regulation of such cooperation and the prospects for its development. The research intends to examine the institutional framework for cooperation between the EAEU member countries and individual countries of the African Union. Speaking about cooperation between Russia and the EAEU member countries, it should be noted that more than 70% of foreign trade turnover accounts for such countries of the African Union as Sudan, Algeria, Morocco, Egypt, and Tunisia; the research will mainly focus on these countries. Additionally, it seems appropriate to consider Libya as a country that could become

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_32

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166

a full participant in foreign trade relations between the EAEU and the African Union. The research goal and objectives determined the choice of the institutional environment of foreign trade cooperation between the EAEU and the African Union as the research object. The research subject is the legal framework of such cooperation. Research methodology is based on applying statistical, comparative, and program-targeted methods of studying economic phenomena and processes. Cooperation with African countries is actively discussed in many countries and international organizations. For example, UNCTAD considers methodological and advisory assistance to the countries of the African Union in conducting detailed analysis and modeling of tariff negotiations for the establishment of the African Continental Free Trade Area. A research team led by Maslov (2019) notes that “the established commodity structure of exports from Russia to Africa is becoming one of the factors stimulating the development of highly productive export-oriented sectors of the Russian economy.” The authors of the report note that “exports are still concentrated in narrow geographic and sectoral niches: two countries, Algeria and Egypt, account for about two-thirds of the total volume; by the nomenclature of exports, more than one half is the so-called “secret code” of the TN VED (military products) and cereals.” Many authors focus on the benefits of cooperation of North African countries with other countries or integration associations (Hedi Bchir et al., 2003). The authors believe that the association agreements with the EU will worsen North African countries’ terms of trade because of the asymmetrical nature of these agreements since full liberalization entails concessions from North African countries to a greater extent than from an already open Europe. Gerőcs (2019) believes that the economic presence of the Russian Federation in Africa is currently insignificant. Economic, trade, and investment cooperation could become more complementary, but it remains an open question whether African countries benefit from deepening economic ties or whether they hinder local socio-economic development. The big problem of cooperation with African countries is the high corruption of foreign trade and, directly, customs regulations (Raballand et al., 2009). Government agencies create obstacles to improving customs regulations because they believe they will lose additional corruption proceeds related to the issuance of permits for foreign trade transactions. North African countries have weak intercountry foreign trade relations (Lozano & Osman Ali, 2012). Although significant progress has been made over the past decade in reducing tariffs and solving logistics problems, especially

N. A. Budarina et al.

through investments in infrastructure, logistics processes, foreign trade facilitation institutions, and customs procedures remain inefficient, slow, and expensive. The low quality of institutions and resource-based specialization hinder structural change in the North African countries and prevent them from benefiting from international trade. Consequently, international trade has a detrimental effect on these countries (Chenaf-Nicet, 2020). Fogel (2018) notes the positive role of infrastructure construction, which will increase the inflow of investments and the development of Russian-Egyptian relations. In our view, there is significant potential for improving trade and transport facilitation through a regional approach that involves the following: • Development of customs cooperation and information exchange; • Harmonization and mutual recognition of rules, procedures, and standards; coordination of traffic flows; • Infrastructure to improve regional connectivity. In our opinion, in connection with the above, the North African countries can carry out export–import operations with the EAEU countries, including the Russian Federation, on more fair and mutually beneficial terms.

3

Results

The effectiveness of trade cooperation between countries is largely determined by the country’s institutional and legal framework. Considering the institutional framework of Russia’s cooperation with North Africa, it is worth noting that it is represented by the following institutions. On the part of the Russian Federation, interaction with African countries is carried out by the following organizations: • • • • • • • • •

Embassies; JSC “Eximbank of Russia”; Russian Export Center; Chamber of Commerce and Industry of the Russian Federation; Roscongress Foundation; Association of economic cooperation with the African States (AECAS); Russian-Egyptian Business Council; Coordinating Committee on Economic Cooperation with Sub-Saharan Africa (AfroCom) of the Chamber of Commerce and Industry of the Russian Federation; All kinds of commissions and forums working based on bilateral agreements.

Assessing the Institutional Framework for Russia’s Foreign Trade Cooperation with North African Countries …

In particular, the functioning of the Russia-Africa Economic Forum seems promising, with the creation of a new dialogue mechanism—the Russia-Africa Partnership Forum. On the African side, the main institutions are as follows: • • • •

African Development Bank; African Export–Import Bank; Russian-Arab Business Council; All kinds of commissions and forums (the Forum for Russian-Arab Cooperation) working based on bilateral agreements.

Cooperation is carried out within the framework of the signed agreements on bilateral cooperation. Part of these agreements was signed in the middle of the twentieth century; the work to update them is actively carried out. The main platform where cooperation is supposed to occur is the Russia-Africa Forum, where every three years, the goals and objectives of cooperation and a plan of action for this period are formed. The analyzed countries have different levels of institutional and socio-economic development. Table 1 shows the rating of the prospects of countries for exports from Russia in 2018. According to the rating, the higher the indicators, the more appropriate the cooperation with the country. As shown in Table 1, the least interesting in terms of exports is the development of foreign trade relations with Algeria, and the most promising are foreign trade relations with Sudan. The existing commodity structure of exports from Russia to Africa can potentially become a factor stimulating the development of goods with a high share of added value. The strategic directions of foreign trade cooperation are the export of military-industrial complex goods, agricultural products, etc. to African countries. The algorithm of work with African countries is often based on the implementation of tenders won by international organizations to supply food or other goods or on the execution of contracts concluded at forums, exhibitions, and fairs. Cooperation in the EAEU-African Union format will allow better realizing the foreign trade potential of the union

Table 1 Rating of prospective countries for exports from Russia in 2018

167

countries by increasing the share of Armenia, Belarus, Kazakhstan, and Kyrgyzstan in the trade turnover with African countries. The Agreement of May 23, 2018, between the Government of the Russian Federation and the Government of the Arab Republic of Egypt on the establishment and provision of conditions for the activities of the Russian Industrial Zone (RIZ) in the Suez Canal Economic Zone (SCZone) of the Arab Republic of Egypt came into force at the end of 2018. The creation of RIZ is due to the need to increase exports of Russian industrial products to promising markets, as well as to form stable production chains in the importing countries. One of the key tasks of creating the RIZ is to ensure synergy with the Russian projects planned for implementation in Egypt, including the following: • Construction of the El-Dabaa Nuclear Power Plant; • Supply of railroad passenger cars for the Egyptian National Railways; • Reconstruction of Egyptian railway networks and the Helwan Metallurgical Plant; • Supply of automotive, shipbuilding, special, transport, and agricultural machinery products (Pomigalov, 2019). The main basic advantages of the zone include the following: • Full foreign ownership of the company, giving the opportunity not to involve Egyptian partners and not to create a joint venture; • Management of import and export operations directly by a foreign company without the involvement of local licensed exporters and importers; • Duty-free supply of equipment, components, accessories, etc. for the production needs in SCZone. When exporting finished products from the SCZone to Egypt, only foreign components within the product are taxed and not the entire finished product; • The possibility of full repatriation of income received;

Country

REC rating (2018)

Imports from Russia

Complementarity of trade

Import growth rate

Import simplicity

Sudan

98 (− 8)

65

25

113

119

Transport accessibility 56

Algeria

62 (+ 3)

15

2

61

116

23

Morocco

28 (+ 4)

51

64

31

6

23

Egypt

14 (+ 10)

10

1

40

70

125

Tunisia

82 (+ 12)

72

31

119

53

84

Libya

68 (− 7)

86

41

130

10

96

Source Compiled by the authors based on Russian Export Center (n.d.)

168

• Limitation on the number of foreign workers for companies operating in the RIZ—no more than 10%, with the possibility of increasing their share by a separate decision of the SCZone management; • The possibility of obtaining the Made in Egypt label for products subject to the requirement for the degree of localization under the individual conditions for each resident of the RIZ. In this case, the labeling is a prerequisite for applying preferential and favorable trade regimes that exist between Egypt and partner countries. In several high-tech industries, it is possible to reduce the required level of localization for a product at the initial stage of the enterprise in the RIZ with a gradual increase and bring it to the standard level over several years. The required level of localization for resident products is 30–50%. The RIZ uses its own methodology for determining the degree of localization, in which all production costs incurred by the manufacturer in the RIZ territory (rent, wages of workers, etc.) are included in the calculation and, accordingly, the estimate is made based on the cost of the resulting product. Enterprises-residents of RIZ have tax benefits and pay taxes at the following rates: corporate tax—22.5%; social tax —10%. Moreover, these enterprises can offset the cost of training. Let us consider the main characteristics of customs regulation of import and export of goods into the territory of RIZ. Customs and tariff regulation implies zero rates of customs duties on imports and exports of raw materials, equipment, and materials and components for the production of goods on the territory of the RIZ. Export of finished products from RIZ territory to Egypt is taxed according to the standard tariff, which implies customs duty on imported components. Export of products, services, semi-finished products, components, and raw materials to third countries is duty-free. According to the forecasts of the Ministry of Industry and Trade of the Russian Federation, the project will take about 13 years. By 2026, the resident companies will be able to produce $3.6 billion worth of products annually. Russian companies will receive lease vacations, preferential rates for energy resources, a special preferential tax regime, and a site prepared in advance. Preferential agreements between North African countries and EAEU member countries, the data for which is presented in Table 2, show that almost all countries, except Belarus, have such agreements. Considering that Belarus is a member of the EAEU, it is possible to expand the system of preferences in relation to this country in the future. It is worth noting that the trade turnover of Belarus with the North African countries is quite high. Thus, we can say

N. A. Budarina et al.

that Belarus is integrated into the foreign trade turnover with this group of countries. Considering the legal framework of the agreements with the analyzed countries and the Federal Customs Service of Russia, it should be noted that there are currently agreements with Egypt, Tunisia, and Morocco (Federal Customs Service of the Russian Federation, n.d.). Customs cooperation with this group of countries includes agreements on the following: • Mutual administrative assistance in customs affairs and combating customs offenses; • The exchange of data on the customs value of goods; • The exchange of information necessary for customs control after the release of goods. Consequently, these countries are more willing to participate in the RIZ that is being developed. For the rest of the countries, it is necessary to begin work on forming an institutional legal environment for customs cooperation.

4

Conclusions

In our opinion, as part of improving cooperation between the Russian Federation, the EAEU, and North African countries, it is advisable to include other North African countries in the RIZ with Egypt. All analyzed countries are members of the African Union on the one hand and of the Eurasian Economic Union on the other. Cooperation within the framework of integration associations can be carried out on a mutually beneficial basis because, under economic sanctions, Russia needs to reorient foreign trade flows, and the member states of integration associations can expand the geography of export–import flows and improve customs regulation technologies, using the experience of the EAEU. It is also advisable to form a special mechanism of customs regulation to facilitate trade between the two integration unions, which can later be extended to other member states of the African Union. Within the EAEU, a Memorandum of Understanding was signed in 2019 between the Eurasian Economic Commission (EEC) and the African Union Commission (AUC) on economic cooperation. However, despite the past few years, practical results of cooperation have yet to be seen. Important areas of cooperation are forming institutional conditions for foreign economic operations and integrating advanced customs technologies of the EAEU and African Union countries. One such type of assistance in the development of foreign trade relations between Russia and African countries could

Assessing the Institutional Framework for Russia’s Foreign Trade Cooperation with North African Countries … Table 2 Preferential agreements

169

Country/Country

Russia

Kazakhstan

Kyrgyzstan

Belarus

Armenia

Egypt

+

+

+

−

+

Tunisia

+

+

+

−

+

Libya

+

+

+

−

+

Algeria

+

+

+

−

+

Sudan

+

+

+

−

+

Morocco

+

+

+

−

+

Source Compiled by the authors based on Database on Preferential Trade Arrangements (n.d.)

be the creation of the institution of pre-shipment inspection (Dequiedt et al., 2012), which could be a model of an agency, including a private inspection firm and a customs administration, to control importers’ declarations. In this case, we can count on the acceleration of cargo clearance in foreign trade cooperation.

References Chenaf-Nicet, D. (2020). Dynamics of structural change in a globalized world: What is the role played by institutions in the case of sub-Saharan African countries? European Journal of Development Research, 32, 998–1037. https://doi.org/10.1057/s41287-01900250-2 Dequiedt, V., Geourjon, A.-M., & Rota-Graziosi, G. (2012). Mutual supervision in preshipment inspection programs. Journal of Development Economics, 99(2), 282–291. https://doi.org/10.1016/j. jdeveco.2012.02.005 Federal Customs Service of the Russian Federation. (n.d.). International treaties concluded by the FCS of Russia. Retrieved from https:// customs.gov.ru/activity/mezhdunarodnoe-tamozhennoesotrudnichestvo/mezhdunarodnye-dogovory,-zaklyuchen. Accessed September 28, 2021. Fogel, D. V. (2018). Investment activity of Russian companies in the market of African countries in the context of improving the institutional environment. Economic Relations, 8(2), 217–232. https://doi.org/10.18334/eo.8.2.38971 Gerőcs, T. (2019). The transformation of African-Russian economic relations in the multipolar world-system. Review of African Political Economy, 46(160), 317–335. https://doi.org/10.1080/03056244. 2019.1635442

Hedi Bchir, M., Decreux, Y., Fouquin, M., Cling, J.- P., & Ould Aoudia, J. (2003). L’élargissement: Vers un renforcement des relations entre l’Europe et les pays méditerranéens? Économie et Statistique, 363(1), 267–301. Retrieved from https://www.persee.fr/ doc/estat_0336-1454_2003_num_363_1_7337. Accessed March 13, 2022. Lozano, C., & Osman Ali, A. (2012). Transport infrastructure and trade facilitation. In E. Santi, S. B. Romdhane, & W. Shaw (Eds.), Unlocking North Africa’s potential through regional integration: Challenges and opportunities (pp. 106–127). The African Development Bank Group. Retrieved from https://www.afdb.org/ fileadmin/uploads/afdb/Documents/Project-and-Operations/ Unlocking%20North%20Africa%20RI%20ENG%20FINAL.pdf. Accessed March 13, 2022. Maslov, A. A. (Ed.). (2019). Russia-Africa analytical materials. In Proceedings of the International Forum “Development of Parliamentarism”. Moscow, Russia: Russia-Africa Shared Vision 2030. Retrieved from http://duma.gov.ru/media/files/e2SgJ0Aq8cFHwxD 5zXN8HiQD0ctEiar5.pdf. Accessed September 28, 2021. Pomigalov, I. A. (2019). Russian industrial zone in the Arab Republic of Egypt. Moscow, Russia: Russian Export Center. Retrieved from https://amr.ru/upload/iblock/023/ 023525d10ce2238eebd9161dbbf14ee7.pdf. Accessed September 28, 2021. Raballand, G., Marteau, J.- F., Mjekiqi, E., & Cantens, T. (2009). Could a well-designed customs reforms remove the trade-off between revenue collection and trade facilitation? In Proceedings of the German Development Economics Conference, Frankfurt am Main, Germany. Russian Export Center. (n.d.). Official website. Retrieved from https:// www.exportcenter.ru. Accessed March 13, 2022. WTO. (n.d.). Database on preferential trade arrangements. Retrieved from http://ptadb.wto.org/SearchByCountry.aspx. Accessed March 13, 2022.

Modern Marketing Technologies in Promoting Consumer Cooperation Organizations Angelica A. Nikitina , Alfiya M. Nurlygayanova , Flyuza A. Tukayeva , Irina N. Girfanova , and Ilyusa M. Khanova

communication with consumers, which will become one of the factors in strengthening consumer cooperation.

Abstract

The purpose of the article is to determine the possibilities of consumer cooperation in promoting goods and services based on the use of SMM marketing. The authors use the methods of comparative analysis and sociological research based on the reporting data of the Bashkir consumer union. In the process of the research it was found that in recent years, consumer cooperation has become the driving force behind a socially-oriented business. However, despite the expansion of the cooperative movement, tough competition from large retail chains and agricultural holdings, as well as changes in consumer behaviour caused by the development of informatization and digitalization, the COVID-19 pandemic, poses new challenges for consumer cooperation. Along with the tasks set in the Concept for the Development of Cooperation in the Republic of Bashkortostan, while in the federal project “Creation of a support system for farmers and the development of rural cooperation”, it’s necessary to solve the problem of branding and promoting goods to the market, creating, and expanding a stable client base. SMM marketing can become an effective and affordable tool based on digital technologies. This study demonstrated that SMM marketing is one of the most popular and effective ways to attract customers, analyse their needs, and respond to the offered goods and services, maintain constant interactive

A. M. Nurlygayanova . F. A. Tukayeva . I. N. Girfanova Bashkir Cooperative Institute (branch) of the Russian University of Cooperation, Ufa, Russia A. A. Nikitina (&) . I. M. Khanova Ufa University of Science and Technology, Bashkir State University, Ufa, Russia e-mail: [email protected] F. A. Tukayeva Ufa Law Institute of the Ministry of Internal Affairs of the Russian Federation, Ufa, Russia

Keywords

.

.

Consumer cooperation Agricultural consumer cooperative SMM marketing JEL Classification

D24

1

.

M31

.

O35

Introduction

Consumer cooperation was created in the nineteenth century in Russia. Initially, it was aimed at promoting a domestic manufacturer to the market and meeting the population’s needs for goods and services. At the same time, the goal of making a profit wasn’t set, and the main task was considered to serve the population. This goal remains the main one at the present stage of the development of cooperation. The development of consumer cooperation is of great importance for the population. On the one hand, cooperative organizations create jobs, which is especially important in rural areas. Shareholders have the opportunity to receive goods and services on preferential terms, and consumers have the opportunity to purchase quality products at affordable prices (Gataullin & Akhmetov, 2020; Kaurova et al., 2021). Support for consumer cooperation remains one of the priority areas of economic policy in the Republic of Bashkortostan, as it is still one of the factors of sustainable development of rural areas. Thus, the regulatory and legal framework is being updated and improved, measures of state support for the cooperative movement are widely used (Gataullin & Akhmetov, 2020; Nikitina, 2021; Nikitina et al., 2021).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_33

171

172

A. A. Nikitina et al.

At the end of 2021, 382 agricultural consumer cooperatives (hereinafter—ACC) were registered in this republic. A leap in the number of cooperatives was observed in 2018, when the growth compared to the previous year was 2.4 times (196 vs. 82), in 2021, compared to 2018, the number of cooperatives increased by another 1.9 times. Cooperatives with mixed agriculture (45%), processing (27%), supply, and marketing ACC (22%) prevail in the structure. Currently, the main problem of the rural economy is the sale of farm and surplus products, which are produced by rural residents. Partially, it’s caused by small production volumes in these categories of farms, which is one of the factors of high production costs. In addition, villagers and farmers are trying to compete with larger producers by creating high quality, environmentally friendly products, and this requires additional costs. As a result, they can’t compete with large commodity producers and can’t meet the requirements of retail. The lack of marketing and experience in promoting goods on the market plays a very important role. One of the ways of solving this problem was the development of the cooperative movement. However, traditional methods of doing business prevent agricultural consumer cooperatives from taking a serious position in the market and withstanding global competition (Gataullin & Akhmetov, 2020; Kaurova et al., 2021; Nikitina et al., 2021).

2

Materials and Methods

As a methodological and scientific basis, the authors used the works of the following scientists: Ananishnev (Internet marketing, social media marketing (SMM), social networks), Arokina (2021), Cambria et al. (2015), Eskova & Sadovnikova (2021), Gataullin & Akhmetov (2020), Gunelius (2021), Kaurova et al. (2021), Korablina (2021), Nikitina (2021), Nikitina et al. (2021), Shchetinina & Buziashvili (2021), Skvortsova & Khomutova (2021), Volodchenko & Egupova (2021), as well as Stelzner (2012). Research methods used in this article are as follows: analysis and synthesis, comparative, graphical, index methods, as well as questionnaire survey.

3

Results

Today, agricultural consumer cooperatives have become a form of business uniting small commodity producers— farmers and personal subsidiary plots. According to the Ministry of Agriculture of the Republic of Bashkortostan, 6423 small businesses have been already involved in the cooperative movement in 2021.

Consumer cooperatives play an important role in the regional economy. By joining a cooperative, villagers receive a double benefit: they get the opportunity to sell their products and purchase the necessary goods and services. In cooperative organizations, economies of scale are triggered in terms of the procurement of raw materials, which gives them an advantage in the cost and price of products. However, it’s not always possible to take advantage of this point, which is associated with the peculiarities of agricultural production and the organization of retail trade in the countryside. As a rule, the rural market is dispersed among settlements, has a small capacity, which increases the cost of transportation, storage of products, as well as maintenance of retail outlets (Gataullin & Akhmetov, 2020; Kaurova et al., 2021). If earlier cooperation was aimed primarily at solving social problems, today, in market conditions, even non-profit organizations have faced the problems of competition and increasing the efficiency of economic activity. In this regard, the state, realizing the importance of the cooperative movement in the development of territories, seeks to support cooperatives. Nowadays, they have got the opportunity to participate in the Agrostartup project, which is being implemented within the framework of the federal program “Farmers and Rural Cooperation Support System”. Over the past three years, 22 agricultural consumer cooperatives have been created with the participation of the Bashkir consumer union. Particular attention is paid to the so-called income-generating projects. In 2020, there were 108 of them, and in the last year—116. Taking into account the requirements of food supply in the region, most of these projects are concentrated in the collection, procurement, storage, as well as transportation and processing of meat and milk (Nikitina, 2021). As has been noted above, agricultural consumer cooperatives are often created to sell the products of the rural population and farmers. The most common form of selling ACC products is a stationary retail network. For example, in Ufa, the products of the republican ACC are exhibited in 70 retail outlets and chains, market complexes, and restaurants at present. Customer attraction and advertising activities have been carried out. Since 2017, consumer cooperatives have been constantly participating in competitions with an exhibition exposition. As a result, they became more recognizable; they got the opportunity to conclude lucrative contracts (Nikitina et al., 2021). Fairs are an important sales channel for cooperative products. The population is waiting for them, and they actively buy meat, potatoes, honey, and other food products. Manufacturers in a short period find contact with potential buyers, and some of them become regular customers. Modern life is inconceivable without digital technologies, and consumer cooperation doesn’t lag behind modern

Modern Marketing Technologies in Promoting Consumer Cooperation Organizations

technologies. In the system of consumer cooperation in Russia, digitalization and informatization act as a link between all organizations and organizational structures in the area of logistics promotion of goods. Logistic devices of information channels supply data on purchases of agricultural products to the Central Union of the Russian Federation. These data are used to form food resources and their distribution among consumers. This makes it possible to simplify the control over the movement of food products and their balances in warehouses and storages. However, in the author’s opinion, the digitalization of the activities of consumer cooperation organizations shouldn’t stop there. Internet commerce has become a trendy direction today. The COVID-19 pandemic has led to its development and expansion in sectors of the economy, especially in the food trade. The consumer only needs to place an order on the Internet and wait for the goods to be delivered to their home, without visiting the store. Both customers and manufacturers benefit from it. Customers get the opportunity to purchase products directly from the manufacturers at a lower price, while manufacturers know better the preferences and requests of their customers. Thus, digitalization increases the efficiency of doing business, reduces labour costs, and expands the possibilities of analysing and forecasting the sales market (https://1ps.ru/blog/ctr/2021/kak-pomenyalospokupatelskoe-povedenie-k-2021). The development of consumer cooperation raises a severe issue of selling purchased agricultural products and public catering products. Over the past five years, the share of purchases has increased to 12%, and the share of catering has increased to 6.9%. In 2020, the procurement offices of the republic purchased 55,000 tons of meat, 218,000 tons of milk, 37,000 tons of potatoes, 45,000 tons of vegetables, and 25,000 tons of fruits. The purchased products and raw materials are processed and sold to the population through the system of retail consumer cooperation enterprises. Despite the introduction of antiquated measures, public catering enterprises of the consumer union, having organized Internet trade, were able to increase the turnover of bread and bakery products, salads, as well as semi-finished products. Catering turnover amounted to 13.0 billion roubles, while the production of own products from purchased agricultural raw materials was 86.2%. This successful experience of using digital technologies has shown their feasibility and effectiveness. The retail network of consumer cooperatives is under the strongest competitive pressure from large retail chains and agricultural holdings of a federal scale, which, having very significant opportunities to attract resources, developed logistics, high turnover of retail and wholesale sales, force consumer cooperation structures to close stores in distant villages and regional centres (Kaurova et al., 2021).

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In this regard, the main goal of the development of consumer cooperation institutions is the formation of guaranteed sales. The fulfilment of these conditions will make it possible for consumer cooperation to effectively participate in the implementation of federal and republican programs for the development of agriculture and ensuring the country’s security in terms of food security. Experience shows that effective commercial activity in modern conditions requires the use of e-business tools, and this isn’t only about logistics and trade, but also marketing, attracting buyers and customers (Skvortsova & Khomutova, 2021; Volodchenko & Egupova, 2021). Today, Social Media Marketing (SMM) is gaining popularity. The goal of SMM is to attract potential customers to the site of the organization, for example, users of social networks. Currently, being a relatively “young” element of Internet marketing, it hasn’t been sufficiently studied yet, but, in the author’s opinion, it has great potential. After all, if you start the process correctly, the circle of buyers can constantly increase. The main advantage is the fact that there is no need for additional costs for advertising promotion (Arokina, 2021; Eskova & Sadovnikova, 2021; Internet marketing, social media marketing (SMM), social networks; Korablina, 2021). Social networks have already become a convenient and simple tool for finding and attracting like-minded people, partners, and clients, which explains the popularity of SMM marketing. In addition to access to multi-million audiences and direct interaction with clients, SMM gives companies some other advantages that allow them to improve their position in a competitive environment, based on the possession of operational information, and also allow them to make more objective and timely management decisions. The main advantages of SMM include the possibility of constant and sufficiently in-depth analysis of the market situation, direct and regular exchange of information with the target audience, which, in turn, contribute to the growth of sales and recognition of the product, as well as its manufacturer (seller) (Cambria et al., 2015; Gunelius, 2021; Shchetinina & Buziashvili, 2021).

4

Discussion

Despite the complexities of the modern world, consumer cooperation can restore their positions and have a positive impact on the development of the domestic market. This is facilitated by the traditional connection with the rural population, as well as the existing industrial and trade infrastructure. Analysis of the functioning of consumer cooperation in recent years, the study of its problems and successes showed that cooperatives can create viable and

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sustainable enterprises, thereby providing employment, as well as income for the population. The integration of the social function of these organizations with the market principle of entrepreneurial efficiency can be also observed. Cooperatives in their work must be guided by local communities, their needs, thereby preserving spiritual and national traditions. District consumer societies always occupy unique market positions in the rural economy. However, consumer cooperation enterprises should use the experience of large enterprises in the study of consumer behaviour in modern conditions, and the formation of a new marketing strategy on its basis (Arokina, 2021; Gataullin & Akhmetov, 2020; Nikitina, 2021; Nikitina et al., 2021). The COVID-19 pandemic has made adjustments to the economy of the regions and the consumer behaviour of the population. Firstly, most of the country’s population faced a decrease in disposable income due to unemployment (64%), and an increase in the cost of living (49%). The structure of expenses has changed—people began to spend more on the purchase of food products, takeaway food, and delivery services. Restrictive measures contribute to the fact that the population tries to visit shops not often, especially to buy food on time (https://1ps.ru/blog/ctr/2021/kak-pomenyalospokupatelskoe-povedenie-k-2021). These trends in consumer behaviour are favourable for consumer cooperative enterprises, as the demand for food products is increasing. At the same time, the lack of a developed system of online ordering and delivery of products doesn’t make it possible to take advantage of the emerging favourable market conditions for food products. In such conditions, the task of promoting goods becomes even more difficult. So, it’s necessary to identify the preferences of buyers, determine, on this basis, the range of products, as well as to assess and monitor the demand for goods. Secondly, the key purchase drivers are price and convenience of purchase first of all and then trust in the brand, personal safety, as well as the range of goods, services, and delivery times. The pandemic has forced consumers to change their shopping experience and switch to online platforms for convenience and security. In such conditions, social networks have become a tool for interaction with consumers. Moreover, they also have become the main channel for a personalized offer of goods and services. It should be expected that social networks will continue to remain in demand as channels of communication between people. These facts bring us to the conclusion that online interaction between manufacturers and consumers of products will become even more popular (https://1ps.ru/blog/ctr/ 2021/kak-pomenyalos-pokupatelskoe-povedenie-k-2021; Internet marketing, social media marketing (SMM), social networks; Stelzner, 2012).

A. A. Nikitina et al.

Digital technologies develop, become more and more diverse, and even penetrate private spheres of life. Therefore, only those organizations that will be able to use all the advantages of digital trade and product promotion, and adapt to the rapidly changing realities of the market will be able to maintain their positions and develop. And if for consumer cooperation enterprises the traditional format of interaction with consumers can be generally considered successful, then the online format of interaction is absent, which, of course, leads to the loss of some buyers. Social networks are a multifunctional tool for promoting any ideas, organizations, brands, and personalities, which led to the emergence of a new method of market analysis— social media marketing (SMM). Social media marketing, based on its name, is the active use of social media, forums, and online communities for building a customer base. By establishing contacts with the target audience through media resources, manufacturers and sellers of products and goods have the opportunity to reach the consumer directly, engage him in a dialogue, and then learn first-hand his requests and needs. Such close cooperation makes it possible to increase the efficiency of business promotion, to constantly “keep an eye on the pulse” of changing consumer behaviour (Cambria et al., 2015; Skvortsova & Khomutova, 2021). However, considering all the benefits of SMM promotion, it should be borne in mind that consumer cooperatives may face certain problems. Firstly, social networks are located on the Internet, and in rural areas, the level of Internet use is lower than in cities. Secondly, there isn’t always such a population in social networks that can become consumers of the offered products, goods and services. But, despite these limitations, the use of SMM in consumer cooperation is justified and necessary. Social media marketing allows collecting and analysing large amounts of information, which makes it possible to solve strategic and tactical commercial problems. Strategic tasks for this are ensuring the recognition of products, the manufacturer, and the formation of a trusting relationship, monitoring moods and needs, as well as timely informing buyers. Tactical tasks are associated with operational management and logistics and various short-term actions (Cambria et al., 2015; Stelzner, 2012). Summarizing, it can be noted that SMM marketing, in comparison with traditional marketing tools, allows reaching a wider population and interacting with them in an interactive form; due to the high speed of dissemination of information, it reduces the cost of advertising and promoting new products; which are almost not influenced by external factors (the main thing is Internet access); gives ample opportunities for analytical work (Arokina, 2021; Shchetinina & Buziashvili, 2021; Volodchenko & Egupova, 2021).

Modern Marketing Technologies in Promoting Consumer Cooperation Organizations

Of course, SMM marketing has its drawbacks. A manufacturer of products may face a drop in attendance, control of network moderators; a group administrator can be required to solve these problems. So, the conducted research allows authors to conclude that promoting the products and services of consumer cooperatives in social networks will be more effective than using conventional marketing tools.

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Conclusion

Today, consumer cooperation is becoming an important factor in the future development of the countryside and rural areas. The advanced foreign experience demonstrates that many serious problems are solved through cooperation. By organizing the purchase, processing, and sale of agricultural products, cooperative organizations provide villagers with jobs, this point helps to reduce unemployment and increase the income of the rural population. In addition, the expansion of the cooperative movement contributes to the development of agricultural infrastructure and rural areas. The governments of the Russian Federation and the Republic of Bashkortostan have approved programs for the development of cooperatives and rural areas; farmers and consumer cooperatives are provided with comprehensive information, consulting assistance, and financial support. Unfortunately, despite these measures, agricultural cooperatives currently play an insignificant role in the agro-industrial complex of the country. Although the number of cooperative organizations in the republic is increasing, households and farmers haven’t been actively joining them yet. To expand the cooperative movement, they need not only measures of state support but also educational work, as well as the creation of an effective system for the sale of products and services of cooperatives. It should be also noted that the main mission of cooperatives isn’t profit, but the creation of conditions for the social development of the countryside, which is impossible without new jobs and providing the population with high-quality products produced in their region. At the same time, the effective functioning of cooperatives is impossible without following modern business trends and effective use of modern technologies. Today, the main point of consumer cooperation is a rural store; the procurement system isn’t working efficiently enough. The time requirement is the fact that to survive in the competitive struggle, each cooperative must become a single well-coordinated system, consisting of developed channels not only for the sale of products but also for the procurement of raw materials, processing industries, as well as public catering organizations regulated by efficient and economical logistics. Improving the competitive environment in trade

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provides for the creation of a single trade, procurement, and logistics operator to provide goods to the newly created trade network, production and catering network (embedding this operator into the project system of the Agro-industrial cluster of the Republic of Bashkortostan); creation of a network of cooperative stores within walking distance, a digital trading house—marketplace; creation and construction of farmers’ and cooperative markets, as well as construction of sites for cooperative fairs. Many years of experience in the development of the cooperation system in the region shows that it’s possible to stay in the market if only the features of the organization of production and sales are transformed into competitive advantages. Consumer cooperatives are uniquely positioned to enter the market with qualitative and exclusive products, but face the fact that large segments of consumers aren’t aware of them. This problem can be solved through the use of modern, including digital, information support technologies. Today, information is becoming not only an important resource for production but also the competitiveness of market actors. The winners are people, who were able to quickly and easily convey to the consumer information about their product and benefits of its use or consumption to a potential buyer, to establish high-quality feedback with him. This presupposes the prompt receipt of reliable information. One of the products of digital technologies—SMM marketing—will not only solve this problem but will also contribute to the active promotion of products and services of consumer cooperatives to the market, as well as to the formation of a stable and extensive client base.

References Arokina, V. I. (2021). Social networks are a marketing tool. Economics and Business: Theory and Practice, 2–1(72), 18–20. https://doi.org/ 10.24412/2411-0450-2021-2-1-18-20 Cambria, E., Grassi, M., Hussain, A., & Havasi, C. (2015). Computing for SSM. Multimedia Tools and Application, 59(2), 557–577. Eskova, E. S., & Sadovnikova, A. S. (2021). SMM as a modern marketing tool. Innovative Economy and Modern Management, 2 (33), 7–10. Gataullin, R. F., & Akhmetov, V. Y. (2020). Strategic directions of development of consumer cooperation in rural areas (on the example of the south- and north-eastern regions of the Republic of Bashkortostan). Bulletin of Eurasian Science, 5. https://doi.org/ 10.15862/58ECVN520 Gunelius, S. (2021). Laws of SSM. Entrepreneur, 10. http://www. entrepreneur.com/article/218160. Accessed: October 15, 2021. How the purchasing behaviour of users has changed by 2021. 1PS.RU —Online performance marketing agency. https://1ps.ru/blog/ctr/ 2021/kak-pomenyalos-pokupatelskoe-povedenie-k-2021. Accessed: October 15, 2021. Internet marketing, social media marketing (SMM), social networks. (2021). In V. V. Ananishnev (Ed.), Moscow: Limited liability company “Moscow cluster of business initiatives” (p. 157). ISBN 978-5-6042002-7-8.

176 Kaurova, O. V., Tkach, A. V., & Maloletko, A. N. (2021). Consumer cooperation of regions in the infrastructure of the Russian food market. Economics, Labour, Management in Agriculture, 2(71), 73–80. https://doi.org/10.33938/212-73 Korablina, D. D. (2021). SMM promotion as an effective internet marketing tool. Global and Regional Research, 3(2), 125–131. Nikitina, A. A. (2021). Regional resource potential of small business entities in the field of agriculture of the Republic of Bashkortostan. Regional Economics and Management: Electronic Scientific Journal, 1(65), 6520. Nikitina, A. A., Mazitov, F. F., & Zhilina, E. V. (2021). Regional aspects of consumer cooperation in the Republic of Bashkortostan: Successes and development prospects. Bulletin of the Russian University of Cooperation, 2(44), 52–58. https://doi.org/10.52623/ 2227-4383-2-44-10

A. A. Nikitina et al. Shchetinina, E. D., & Buziashvili, G. Z. (2021). Place of SMM in the system of types of marketing, its advantages and disadvantages 1 (101), 38–44. Skvortsova, N. A., & Khomutova, A. A. (2021). Promotion in social networks. SMM and SMO. Scientific Notes of Orel State University of Economics and Trade, 1(37), 25–29. Stelzner, M. (2012). SSM industry report. How marketers are using social media to grow their businesses. Social Media Examiner, p. 42. Volodchenko, Y. T., & Egupova, D. S. (2021). SMM as modern marketing technologies: Advantages and disadvantages. High technologies, science and education: Current issues, achievements and innovations. In A Collection of Articles of the IX All-Russian Scientific and Practical Conference (pp. 125–127).

Actual Issues of the Development of Consumer Cooperation Legislation in Addressing Social Questions Vera R. Averyanova , Nellya I. Orfanidi , Tatiana V. Pilyugina , and Tatyana V. Yushkina

Abstract

1

The purpose of this article is to carry out a comprehensive analysis of the problems of legal regulation of consumer cooperation legislation in solving social issues at the federal and regional levels. The main research methods are the methods of theoretical analysis, analysis and interpretation of regulatory legal acts, formal legal method, as well as comparative legal method. In the area of legal regulation of the activities of consumer cooperatives in solving social issues, a serious legal platform has been created. However, no legal acts in the status of a federal law regulating relations specifically with regional (for example, rural) consumer cooperatives have been identified in the research process, although consumer cooperation in regions (especially in rural areas) has its specific features and deserves separate legal attention. The article proposes ways to improve the current Russian legislation on consumer cooperation in terms of solving social issues at the federal and regional levels. Keywords

. .

.

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Consumer cooperation Social rights Legislation problems Consumer society Legal regulation JEL Classification

R1

. . R5

К380

. . Q13

J540

The timeliness of this study is determined by the need to improve the regulatory legal acts on consumer cooperation in the area of regulation of social issues at the federal and regional levels. In the scientific literature on the development of rural areas and consumer cooperation, it’s noted that certain measures for the development of rural areas in Russia are currently provided for at the level of state programs. However, the development of rural areas has its characteristics, determined by the specifics of the socio-economic processes taking place in rural areas, which determines the need to use specific mechanisms for ensuring the sustainable development of these territories. One of these mechanisms and factors in the formation of the sustainability of rural areas is consumer cooperation. Complex socioeconomic measures are needed to solve this problem; first of all, stimulating the development of the rural economy. In this regard, it is necessary to consolidate incentives at the legislative level, “working” measures and mechanisms for protecting shareholders, which will guarantee social stability and protection of participants in consumer societies. Thus, the purpose of this article is a comprehensive analysis of the problems of legal regulation of consumer cooperation legislation in solving social issues at the federal and regional levels and substantiation of the main directions for improving the legal regulation of consumer cooperation.

2

V. R. Averyanova . N. I. Orfanidi . T. V. Pilyugina . T. V. Yushkina (&) Krasnodar Institute of Cooperation (branch) of Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected]

Introduction

Materials and Methods

The theoretical and methodological basis of the study is based on the application of an institutional approach that allows authors to consider the role of consumer cooperation in solving social issues. The institutional approach made it possible to determine the place and role of consumer

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_34

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cooperation in the development of rural areas, which are regulated by a system of norms and rules. The research methods used to achieve this goal were the traditional analysis of documents and analysis of the regulatory framework on the research topic, statistical methods, the method of interpreting regulatory legal acts, and also the formal-legal method. Modelling and comparative legal methods were used in the development of recommendations. The information base of the study includes legislative and regulatory acts regulating the development of rural areas and consumer cooperation, such as: “Strategy for Sustainable Development of Rural Areas of the Russian Federation for the Period up to 2030”, as well as analytical data. The novelty of the research is the practical component which consists in substantiating the main directions of improving the legislation on consumer cooperation in solving social issues. Specific measures for such an increase will be the adoption of laws in the constituent entities of the Russian Federation on the role and significance of the consumer cooperative for solving social problems in rural areas.

3

Results

It’s fairly noted that consumer cooperation is the most beneficial form of relationship between business and the population. Legal regulation of this interaction is carried out based on: • The Constitution of the Russian Federation (http://www. consultant.ru/document/cons_doc_LAW_28399/), • The Civil Code of the Russian Federation (http://www. consultant.ru/document/cons_doc_LAW_5142/), • The Federal Law of the Russian Federation No. 3085-1 of 19.06.1992 “On Consumer Cooperation (consumer societies, unions) in the Russian Federation” (hereinafter— Law No. 3085-1) (http://www.consultant.ru/document/ cons_doc_LAW_608/), • And other regulatory legal acts. In this regard, it seems appropriate to analyse the regulatory legal acts related to the research topic. The first most important legal act is the Constitution of the Russian Federation. The Constitution of the Russian Federation doesn’t directly affect the development of rural areas and consumer cooperation. However, in the research topic, articles 30 and 34 of the Constitution of the Russian Federation should be mentioned. Article 30 of the Constitution of the Russian Federation guarantees citizens the right to association and freedom of activity of such public associations. At the same time, forced entry into an association or staying in an association is ruled out.

Article 34 of the Constitution of the Russian Federation deserves a separate mention, guaranteeing “the right to freely use one’s abilities and property for entrepreneurial and other economic activities not prohibited by law”. Thus, the Constitution of the Russian Federation legislatively defines the possibility of uniting citizens on the basis and principles of consumer cooperation. The Civil Code of the Russian Federation, which defines the legal status of participants in civil turnover, is of great importance for regulating the processes of creating production cooperatives and managing them. In addition, the Civil Code of the Russian Federation was supplemented with paragraph 6 “Non-profit corporate organizations” in 2014 (http://www.consultant.ru/document/cons_doc_LAW_ 162608/). Clause 2 of the abovementioned paragraph contains two articles: Article 123.2 “Basic Provisions on Consumer Cooperatives” and Article 123.3 “The Obligation of the Members of the Consumer Cooperative to Make Additional Contributions”. An important point is a difference in the legislative definition of the categories “Production cooperative” and “Consumer cooperative”, as well as in terms of their activities and forms of responsibility. While there are significant similarities in the name, principles of association, as well as forms of responsibility, production cooperatives and consumer cooperation associations have significant differences in the status and goals of their activities. At the same time, the satisfaction of the material and other needs of the participants for the consumer cooperative doesn’t mean that the cooperative can’t conduct production or other economic activities. Federal Law No. 3085-1 and the Federal Law No. 41-FZ of 08.05.1996 “On Production Cooperatives” (http://www. consultant.ru/document/cons_doc_LAW_10286/) regulate the activities of cooperative associations of commercial (production cooperatives) and non-commercial (consumer cooperation) forms. Once again, the main differences between the named cooperative forms should be emphasized. If a production cooperative is treated as a form of commercial organization the main purpose of which is to make a profit, then the association of consumer cooperatives is non-commercial and doesn’t pursue the formation of profit as the main goal, although the formation of profit is not ruled out. Thus, although the association in the form of consumer cooperation doesn’t have the main goal of making a profit, it’s assumed a priori to conduct business to generate income and reimburse costs. An important distinctive nuance of Federal Law No. 3085-1 is the content of the principles of creation and operation of a consumer society. These principles carry a social component, and the principle of concern for raising the cultural level is exclusively social. All of this emphasizes

Actual Issues of the Development of Consumer Cooperation Legislation in Addressing Social Questions

the importance of the application of Federal Law No. 3085-1 as one of the basic legal acts in the system of sustainable development of rural areas. Another important document is the “Strategy for sustainable development of rural areas of the Russian Federation for the period up to 2030” (hereinafter—the Strategy) (http://www.consultant.ru/document/cons_doc_LAW_ 174933/). This Strategy, as one of the conditions necessary for the development of the rural economy, defines “stimulating the development of entrepreneurship, peasant (farmer) households, self-employment and forms of family employment based on personal subsidiary plots and consumer cooperation, as well as promoting the integration of large and small businesses”. One of the priority tasks of the Strategy is to support small businesses and agricultural consumer cooperatives. The result of the implementation of this task will be a significant improvement in living conditions in rural areas. So, the most developed form of cooperation is traditionally consumer cooperation in Russia. It covers 22.2 million inhabitants, which is more than 15% of the total population of Russia and more than 58% of the total rural population of the country. Rural consumer cooperatives are represented in about 100 thousand villages and hamlets. Consumer cooperation unites about 2300 consumer societies and 71 regional unions, which consist of 1.3 million shareholders (https:// rus.coop/ru/geography/). As for the Krasnodar Krai, cooperation is traditionally widely developed and is represented by about 30 regional and rural consumer societies in the region. It should be noted that consumer cooperation is considered, first of all, as one of the basic links of the self-government system in civil society. This link is formed in the order of self-organization, and it unites its members to achieve certain goals. Thus, the members of the society (also named as shareholders) have the right to vote in decision-making and the distribution of benefits between the members. This generally takes into account the results of their actual activities. To implement social consumer cooperation programs (and not just them), consumer societies are created. In the structure of this consumer society, interested producers of goods and services, as well as consumers of goods and services can unite. Further, schemes for the movement of funds and other property in transactions and settlements, accounting entries, document flow for servicing these schemes are developed, and personnel are trained. The consumer society is also entitled to provide gratuitous services to shareholders and members of their families at the expense of their share and various targeted contributions. All of the above provides considerable opportunities in the spheres of education, recreation, health improvement, in

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providing citizens with housing, in the provision of housing and communal services, etc. Following the legislation of the Russian Federation, consumer cooperatives have the right to form charitable foundations, their insurance, and pension funds. Currently, most types of social services require various government approvals, licensing, and certification. A lot of such organizations (educational, medical, and others) are state-owned, although they carry out commercial activities and pay taxes, for which citizens are responsible. As for the consumer cooperative, the target program of the cooperative usually allows, without interfering with the internal order of the organization providing the service, facilitating the tax burden and providing discounts on prices, as well as organizing the payer and stabilizing settlements. While implementing its program, the consumer cooperative ensures the conclusion of an agreement between the shareholders and service organizations, consolidates the funds of the shareholders, pays for them the cost which is close to the cost of services, to the organization, as well as organizes the use of the saved funds by the organization. The consumer cooperative redistributes the funds between the shareholders through the system of funds. Based on the material above, the social significance of consumer societies can be noted. This is because consumer societies by their nature are designed to solve not just economic problems, but also social ones, considering the principles of consumer cooperation. However, despite a fairly wide list of normative legal acts which regulate the activities of consumer cooperation, including in addressing social issues, there are gaps in the legal regulation of these issues. In this regard, it’s proposed to introduce the following amendments to the current legislation. 1. Within the framework of improving legislation at the federal level, it’s necessary to create favourable conditions for involving consumer cooperation organizations in solving state problems in the area of import substitution and ensuring food security. These measures will increase the number of jobs, especially in rural areas. 2. As part of the development of cooperative institutions, it’s proposed at the legislative level to establish a norm on securing graduates of cooperative educational institutions in the system of consumer cooperatives as personnel of consumer cooperatives. This norm will allow graduates (young professionals) to resolve the issue of employment. 3. Considerable attention should be paid to the system of cooperative education on the part of state and municipal authorities. It will be possible to provide budget places in the cooperative education system for low-income

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families with children, orphans with the help of state and/or municipal support. 4. The authors also agree with the proposals noted in the Concept for the development of the consumer cooperation system for 2017–2021. Based on the logic of civil legislation, the current law on consumer cooperatives must be amended by replacing the term “consumer society” in each article of the law with “consumer cooperatives”, which will require the adoption of a new federal law on consumer cooperatives. At the same time, the new law will not identify the system of consumer cooperatives with the former name “consumer societies”, as an original system with a 185-year history, providing livelihoods of the population in rural areas with goods and services. In this case, there will be questions of the conceptual definition of the areas of regulation of this law, the definition of the circle of participants, who fall under its regulation, and most importantly, the feasibility of its adoption (https://admkuzm.ru/upload/iblock/cf0/ cf0cb17165f5b15f6f300b705e92f097.pdf/).

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Conclusion

Thus, according to the results of this study, the problem was recognized as relevant, and a specific measure for solving the problem was amending the current legislation on consumer cooperatives as a starting measure for the development of all consumer cooperatives in Russia as a whole. The development of cooperation requires the adoption of regulations governing the activities and support of especially rural consumer cooperatives, since simultaneously with the growth of incomes of the rural population, it becomes more accessible to exercise the right to education, to address the issue of providing the population of the urban district with safe and high-quality products, and much more. Measures to improve legislation should be built, taking into account the priority directions of the development of the consumer cooperation system, as well as the need for high-quality and effective legal support of the events being held.

As part of improving legislation at the federal level, it’s necessary to create favourable conditions for the involvement of consumer cooperation organizations in solving state problems in the area of import substitution, ensuring food security, social security, and job security, providing budget places in educational institutions of the consumer cooperation system. It should also be noted that at present the Central Union of the Russian Federation is carrying out serious work on interaction with state authorities, municipal authorities, which will influence the improvement of the current legislation within the framework of legal regulation of consumer cooperation in the Russian Federation, and raise the image of this system.

References Constitution of the Russian Federation. http://www.consultant.ru/ document/cons_doc_LAW_28399/. Accessed: August 10, 2021. Federal Law No. 3085-1 of 19.06.1992. On consumer cooperation (consumer societies, unions) in the Russian Federation. http://www. consultant.ru/document/cons_doc_LAW_608/. Accessed: August 10, 2021. Federal Law No. 41-FZ of 08.05.1996. On production cooperatives. http://www.consultant.ru/document/cons_doc_LAW_10286/. Date of access: October 11, 2021. Federal Law No. 99-FZ of 05.05.2014. On amending chapter 4 of part one of the civil code of the Russian Federation and on invalidating certain provisions of legislative acts of the Russian Federation. http://www.consultant.ru/document/cons_doc_LAW_162608/. Accessed: November 10, 2021. Geography of consumer cooperation. https://rus.coop/ru/geography/. Accessed: October 10, 2021. Order of the Government of the Russian Federation No. 151-r of 02.02.2015. On approval of the strategy for sustainable development of rural areas of the Russian Federation for the period up to http://www.consultant.ru/document/cons_doc_LAW_ 2030. 174933/. Accessed: November 10, 2021. The Civil Code of the Russian Federation (part one) No. 51-FZ of 30.11.1994. http://www.consultant.ru/document/cons_doc_LAW_ 5142/. Accessed: August 10, 2021. The concept for the development of the consumer cooperation system https://admkuzm.ru/upload/iblock/cf0/ for 2017 (2021). cf0cb17165f5b15f6f300b705e92f097.pdf/. Accessed: November 10, 2021.

Development of Cooperation Between the European Union and Partner Countries in the Transport Sector in the Context of Increasing Competition in International Markets Tatiana S. Malakhova , Alexander A. Voronov , Pavel V. Gorlachev , Tatyana S. Kuzina , and Andrey A. Bukhtayarov to 2020. Based on fundamental and applied research of scientists in the area of transport, a scheme of priority areas is presented and an assessment of the development of international transport cooperation of the European Union countries in the medium and long term is given.

Abstract

The purpose of this article is to study the current state of the transport industry in individual countries of the European Union, to assess the directions of international cooperation of the integration group with strategic partners, as well as to compare the indicators of the EU countries and Russia in this area. As the theoretical and methodological basis, the article uses the historical and logical dialectical principles and contradictions, as well as the method of scientific abstraction. Of particular importance in arguing for the need to strengthen international cooperation in the transport sector of the European Union countries has acquired a processsystem approach, which is used in a deep analysis of the key economic indicators of the countries participating in the association in the industry under study. The share of certain types of transport in the EU and Russia has been analyzed, the dynamics of freight turnover is presented, and on this basis, a forecast for this indicator until 2023 has been calculated, which made it possible to identify problems and contradictions in individual EU countries in the transport sector. Particular attention is paid to the assessment of the cargo turnover of main oil pipelines and oil product pipelines in France from 2015

T. S. Malakhova Kuban State University, Krasnodar, Russia A. A. Voronov Emperor Alexander I St. Petersburg State Transport University, St. Petersburg, Russia P. V. Gorlachev (&) . A. A. Bukhtayarov Krasnodar Institute of Cooperation (branch) of Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] A. A. Bukhtayarov e-mail: [email protected] T. S. Kuzina Maikop State University, Maikop, Russia

Keywords

..

.

European Union Integration group Transport industry Cooperation Freight turnover of transport

.

JEL Classification

F02

1

. . F15

L91

Introduction

In modern conditions, the countries of the European Union are striving not only to maintain but also to strengthen their positions in world markets (https://eur-lex.europa.eu/ legal-content/EN/TXT/?uri=CELEX:52020DC0102). The dynamic development of transport infrastructure through the prism of countries’ transition to a new technological order is of particular importance in the context of global competition (Glazyev, 2018). Today, the European Union seeks not only to modernize the transport system within the integration group but also to expand cooperation with partner countries in this industry (European Mobility Atlas, 2021). On this basis, it’s important to analyze the economic indicators of individual countries of the European Union in the studied industry, in particular: the share of modes of transport, dynamics of transport freight turnover, etc., and compare the indicators of the EU with those of Russia, which will reveal the problems and contradictions in the development of the transport infrastructure of this integration group.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_35

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Materials and Methods

Scientists from all over the world are involved in the development of the transport sector. Thus, Wiesenthal, Condeço-Melhorado, and Leduc investigate the European transport sector from the point of view of implementation in its innovations and new management decisions. Innovative solutions, including new technologies, modern infrastructure, according to scientists, will allow the EU transport industry to maintain and strengthen its global competitiveness (Wiesenthal et al., 2015). Particular attention is paid to the reforms that are being carried out in the countries of the European Union, their implications for all types of transport are assessed, and deregulation in the transport sector in some European countries is investigated (Ali & Eliasson, 2021). Karam, Reinau, and Østergaard in their studies evaluate cooperation (horizontal and vertical) in the transport sector between shippers, carriers, as well as other entities, identify problems and contradictions in their relationships on the example of the countries of the European Union (Karam et al., 2021). Scientists Cigu, Agheorghiesei, Gavriluță, (Vatamanu), and Toader pay special attention to the theoretical foundations of transport infrastructure development, its main factors, components and offer approaches to the study of this area (Cigu et al., 2019). In addition, many scientists study the impact of the pandemic on the development of various types of transport and suggest ways to improve the competitiveness of transport in conditions of crisis (Tardivo et al., 2021). Other experts investigate the development of rail freight in the European Union, identify problems and contradictions in this area, as well as note that rail transport is faced with imperfect competition (Crozet, 2017). Połom, Tarkowski, and Puzdrakiewicz emphasize that railway transport systems can compete with certain modes of transport only if there is a developed infrastructure, especially in terms of the availability of railway stations (Połom et al., 2018). So, the overall demand for freight transport in Europe

Fig. 1 The share of certain types of transport in the countries of the European Union and Russia, %. Source Compiled by the authors based on Transport in Russia (Transport in Russia, 2020)

has grown significantly over the past decades, but according to estimates of individual scientists, most of it falls on road transport (Islam et al., 2016). Based on this, it’s important to assess the development of the transport system in Europe during periods of crisis, for example, 2008–2011, and in the context of the recovery or economic growth of the countries of the European Union (Islam, 2018). In this research, the authors analyze the current state of the transport sector in the European Union and compare the economic indicators with Russia.

3

Results

In order to identify modern trends in the development of the transport sector, the authors analyze the share of certain types of transport in the total freight turnover of individual countries of the European Union and Russia (Fig. 1). It should be noted that railway and pipeline modes of transport are mostly developed in Russia. The share of railway and pipeline transport in the total freight turnover is 45.9 and 47.3%, respectively. As for the road transport mode, its share in the total freight turnover amounted to 4.9%, and inland waterways—1.2%. Now let’s analyze individual countries of the European Union, according to this indicator. The authors start the analysis with the countries of Central and Eastern Europe of the presented integration group. So, in Bulgaria, the automobile mode of transport is more developed. Its share in the total freight turnover is 74.2%. This is one of the highest rates of all the Central and Eastern European countries of the European Union. The next ones are inland waterway and rail transport. Their share in the total freight turnover is 13.5 and 10.4%. As for pipeline transport, its share in the total freight turnover is only 1.9%. This integration group is one of the lowest indicators compared to other countries of Central and Eastern Europe. In Hungary, as in Bulgaria, road transport accounts for a large share of the total freight turnover

100 80 60

Railway

40

Car

20

Pipeline Inland Water

0

Development of Cooperation Between the European Union and Partner Countries …

(62.8%). Railways and pipelines account for 18.2% and 15.2% of the total cargo turnover in Hungary, respectively. The share of inland waterway transport is 3.6%. In Poland, the highest share in the total freight turnover is road transport (80.9%). The share of railway and pipeline in the total freight turnover is 12.7 and 4.6%, respectively. Inland waterway transport accounts for only 0.2%. In Romania, the insignificant share is accounted for by the pipeline mode of transport in the total freight turnover of the country, and it’s about 1.3%. As for the railway, road, and inland waterway transport, their share in the total freight turnover is 15.4, 68.9, and 14.4%, respectively. In Western Europe, in particular Germany and France, the largest share in the total freight turnover is accounted for by road transport (62.7 and 77.0%). The share of railway, pipeline and inland waterway transport in the total freight turnover in Germany is 24.6, 3.4, and 9.3%. In France, the railway mode of transport takes a smaller share in comparison with Germany and amounts to 14.2%. The share of pipeline and inland waterways in the total cargo turnover is 5.5 and 3.2%. In Italy, the share of rail, road, pipeline and inland waterway transport in the total freight turnover is 14.0, 79.4, 6.5, and 0.1%. As the analysis has shown, road and rail modes of transport are developed, which makes it possible for partner countries to strengthen their foreign trade relations in most countries of the European Union. Particular attention should be paid to the freight turnover of transport in individual countries of the European Union and Russia. Table 1 shows the dynamics of transport freight turnover from 2010 to 2020 and the calculation of the forecast for this indicator until 2023 (in billion tons-kilometres) is presented. This indicator is used for the transportation of goods and combines two indicators: the number of tons of cargo and the distance in kilometres. In Russia, the freight turnover of transport in 2010 amounted to 4752 billion t-km, in 2015—5108, in 2017— 5488, in 2018—5635, in 2019—5679.5, in 2020—5886.3 billion t-km. It should be noted that the freight turnover of

Table 1 Dynamics of freight turnover in individual countries of the European Union and Russia from 2010 to 2020 and calculation of the forecast for this indicator until 2023, billion tons-kilometres

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transport in 2018 compared to 2010 increased by 883 billion t-km. The calculation of forecast data shows an increase in this indicator: in 2021—5982.1 billion t-km, in 2022— 6107.8, and in 2023—6259.1 billion t-km. So, let’s analyze the freight turnover of transport in individual countries of the European Union and examine the forecast data for this indicator. There are unstable indicators of transport freight turnover in Bulgaria: in 2010—29 billion t-km, in 2015— 42.2, in 2017—45.1, in 2018—36.3, in 2019—43.8, and in 2020—41.1 billion t-km. In general, in 2018 compared to 2010, the freight turnover of transport increased by 7.3 billion t-km. The calculation of the forecast didn’t show significant changes in the analyzed indicator. In 2021, the freight turnover of transport may reach 40.5 billion t-km, in 2022—42.9, and in 2023—41.3 billion t-km. In Hungary, there is an almost similar situation in terms of this indicator as in Bulgaria. Freight transport turnover in Hungary from 2010 to 2020 ranged from 50.6 billion t-km to 61.4 billion t-km. In 2010, the indicator amounted to 50.6 billion t-km, in 2015—55.5, in 2017—60.5, in 2018—57.8, in 2019— 60.5, as well as in 2020—61.4 billion t-km. In 2018, compared to 2010, the freight turnover of transport increased by 7.2 billion t-km. In Germany, there is a positive trend for almost the entire analyzed period. In 2010, the freight turnover of transport amounted to 499 billion t-km, in 2015 —504, in 2017—511, in 2018—506, in 2019—509.7, and in 2020—510.8 billion t-km. In 2018, compared to 2010, the freight turnover of transport increased by 7.0 billion t-km. Calculations showed a positive forecast for the indicator under study: in 2021—510.1 billion t-km, in 2022—512.5, and in 2023—512.7 billion t-km. If the forecast is realized, the freight turnover of German transport would increase by 13.7 billion t-km in 2023 compared to 2010. In Italy, there is a particularly interesting trend for the analysis and assessment of cargo turnover. In 2010, it was 205 billion t-km, in 2015—147, in 2017—152, in 2018—157, in 2019—138.9, and in 2020—146.3 billion t-km. In Italy, in 2018 compared to 2010, this figure decreased by 48 billion t-km.

Countries

2010

2015

2017

2018

2019

2020

Forecast 2021

2022

2023

Russia

4752

5108

5488

5635

5679.5

5886.3

5982.1

6107.8

6259.1

Bulgaria

29.0

42.2

45.1

36.3

43.8

41.1

40.5

42.9

41.3

Hungary

50.6

55.5

60.5

57.8

60.5

61.4

61.4

63.2

63.7

Germany

499

504

511

506

509.7

510.8

510.1

512.5

512.7

Italy

205

147

152

157

138.9

146.3

139.7

134.4

134.8

Poland

308

361

435

467

469.7

512.1

529.5

552.0

581.9

Romania

53.6

66.9

82.1

85.2

87.9

95.2

98.1

103.1

108.2

France

239

208

220

225

214.6

223.6

220.9

220.2

223.3

Source Compiled by the authors based on Transport in Russia (Transport in Russia, 2020)

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The presented trend was influenced by the first wave of the global economic crisis (2008–2011), as well as its consequences (Malakhova, 2019a). In addition, the migration crisis also introduced certain adjustments to the socio-economic indicators of Italy, which in modern conditions doesn’t allow the country to completely stabilize them (Malakhova, 2019b). Calculations of forecast data don’t show an increase in this indicator to the level of 2010. In 2021, the freight turnover of transport may reach 139.7 billion t-km, in 2022—134.4, and in 2023—134.8 billion t-km. In Poland, on the contrary, there is a positive trend in terms of the analyzed indicator. In 2010, the freight turnover of transport in Poland amounted to 308 billion t-km, in 2015 —361, in 2017—435, in 2018—467, in 2019—469.7, as well as in 2020—512.1 billion t-km. In general, in 2018 compared to 2010, the freight turnover of transport increased by 159 billion t-km. The forecast data are also going to increase: in 2021—529.5 billion t-km, in 2022—552.0, and in 2023—581.9 billion t-km. If the forecast is realized, the freight turnover of transport would increase by 273.9 billion t-km in 2023 compared to 2010. In Romania, there is also a positive trend in terms of the analyzed indicator. In 2010, it amounted to 53.6 billion t-km, in 2015—66.9, in 2017— 82.1, in 2018—85.2, in 2019—87.9, and in 2020—95.2 billion t-km. In 2018, compared to 2010, the freight turnover of transport increased by 31.6 billion t-km. The forecast calculations showed a further increase in the analyzed indicator: in 2021—98.1 billion t-km, in 2022—103.1, as well as in 2023—108.2 billion t-km. In France, by analogy with Italy, there are rather unstable indicators of transport freight turnover. In 2010, the indicator was 239 billion t-km, in 2015—208, in 2017—220, in 2018 —225, in 2019—214.6, and in 2020—223.6 billion t-km. In 2018, compared to 2010, this figure decreased by 14 billion t-km. The calculation of the forecast data hasn’t demonstrated a return to the indicators of 2010. In 2021, the freight turnover of transport may reach 220.9 billion t-km, in 2022 —220.2, as well as in 2023—223.3 billion t-km. If the forecast comes true, the freight turnover of transport would be less by 15.7 billion t-km in 2023 compared to 2010. The analysis of the countries represented has presented, that the situation is unstable according to the indicated indicator in Italy and France now, which are developed countries and the locomotives of the EU. This trend was influenced by internal and external factors associated with the global economic crisis (2008–2011), the migration crisis, the current pandemic, etc. Therefore, in the future, the authors will pay special attention to the indicated countries while analyzing the indicators. A forecast of the cargo turnover of main oil pipelines and oil product pipelines in France from 2015 to 2020 was compiled and calculated and a forecast for this

T. S. Malakhova et al.

indicator until 2025 was presented (Transport in Russia, 2020). From 2015 to 2020, there was a positive trend in the turnover of main oil pipelines and oil product pipelines in France. However, it’s important to note that in 2005 this figure was 20.9 billion t-km, and in 2010—17.6 billion t-km. Consequently, if indicators for the specified period are compared, then the analyzed indicator has decreased by 5.2 billion t-km in 2018, compared to 2010. However, there has been an increase in this indicator since 2015. According to the calculations, forecasts have been presented for the cargo turnover of main oil pipelines and oil product pipelines in France until 2025 (with high and low probability). It’s important to note that the overall trend for the indicator presented is positive. If the forecast is realized with a high probability, the freight turnover of the main oil pipelines and oil product pipelines in France in 2021 would amount to 13.64 billion t-km, in 2022—13.92, in 2023— 14.20, in 2024—14.48, and in 2025—14.76 billion t-km. If the forecast with a high probability is realized, this figure would increase by 3.36 billion t-km in 2025, compared to 2015. The forecast with a low probability for the cargo turnover of main oil pipelines and oil product pipelines in France also shows a positive trend: in 2021—12.34 billion t-km, in 2022—12.61, in 2023—12.88, in 2024—13.16, as well as in 2025—13.43 billion t-km. Analyzing the indicator of Italy, in 2005 it was 11.4 billion t-km, in 2010—10.4, in 2015—9.2, in 2017—10.2, and in 2018—10.3 billion t-km. Over this period, this indicator in 2018 compared to 2010 has decreased by 0.1 billion t-km. Based on this study, it’s also important to analyze and evaluate international cooperation, programs, as well as plans that the European Union countries are striving to implement in the context of increasing global competition. The EU countries pay special attention to the implementation of joint activities, involving other countries that don’t function in this integration group into cooperation.

4

Discussion

In modern conditions, various activities in the transport sector are being held between the EU countries, aimed at strengthening the internal market. Another important area for the countries of association is the promotion of European safety and environmental protection standards. The European Commission seeks to adopt flexible strategies and programs to strengthen the EU’s role in the transport sector, as well as to improve the legal framework in this area. The key areas of work with countries, which don’t operate in the EU, are distinguished by the type of interaction in international transport relations (Fig. 2).

Development of Cooperation Between the European Union and Partner Countries … Fig. 2 Priority directions for the development of international transport cooperation between the countries of the European Union. Source Compiled by the authors

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The main directions of the EU countries in international transport cooperation through the prism of strengthening their positions in the European region and increasing the volume of exported products

Expansion countries

European Neighborhood Policy countries

Bilateral relations with other third countries

In the process of negotiations with countries, various issues are raised in the area of international transport cooperation, in particular, investment, improvement of the legislative framework, development of new technologies, etc.

The development of international transport cooperation will strengthen the position of the European Union in international trade in goods and in the development of new technologies in the transport industry

Figure 2 presents the areas of work of the EU with third countries: enlargement countries, countries of the European Neighborhood Policy, bilateral and relations with other third countries. Thus, in the process of enlargement with partner countries, the Directorate General for Neighborhood and Enlargement Negotiations (DG MOVE) calls on countries to transfer and apply all legislation from the acquis communautaire of the European Union. As a result, countries can implement the transport policy of the integration group and carry out key reforms even before the actual accession to the EU (https://ec.europa.eu/neighbourhood-enlargement/ directorate-general_en). As it’s noted in the strategies and programs of the European Commission, EU countries seek to strengthen closer relations with their neighbours to the east, south, as well as north to ensure security and stability in the region. For example, the EU is developing cooperation in the area of transport with partner countries in the east (Eastern Partnership). The EU seeks to form and implement strategies with countries that have a great influence on transport policy and infrastructure, as well as the interests of this integration group. DG MOVE prepares and coordinates the transport dimension of bilateral and regional relations taking place at various levels (summits, high-level dialogues, technical exchange of information), in EU partner countries, and regions. Their work in this area can range from preparing the basis for a comprehensive and strategic transport partnership based on cooperation in several modes to conducting specific sectoral dialogues on modes of transport, as well as to making an appropriate contribution to

major trade and investment negotiations. The EU is also open to dialogue at the global level. Existing areas of activity in the transport sector include, in particular, China, Japan, the USA, Brazil, and other regions (such as Southeast Asia) (https://ec.europa.eu/transport/themes/international/bilateralcooperation_en).

5

Conclusion

Thus, firstly, the approaches and positions of individual scientists in the development of the transport sector of the European Union were investigated. It’s significantly influenced by internal and external factors. Nevertheless, in modern conditions, the countries of the European Union are striving to deepen international transport cooperation with various countries and regions of the world. Secondly, the specific weight of certain types of transport was analyzed, the dynamics of transport freight turnover from 2010 to 2020 was estimated, and the forecast for this indicator until 2023 was calculated in individual countries of the European Union and Russia. Particular attention was paid to the dynamics of the freight turnover of main oil pipelines and oil product pipelines in France from 2015 to 2020 and the calculation of the forecast until 2025. Thirdly, the main directions of the European Union countries in international transport cooperation were presented through the prism of strengthening their positions in the European region and increasing the volume of exported

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products. The directions were divided into three groups: countries of enlargement, countries of the European Neighborhood Policy, and bilateral relations with other third countries.

References Ali, A. A., & Eliasson, J. (2021). European railway deregulation: an overview of the market organization and capacity allocation. https://www.tandfonline.com/doi/epub/10.1080/23249935.2021. 1885521?needaccess=true. Accessed: February 25, 2021. Cigu, E., Agheorghiesei, D. T., Gavriluță, (Vatamanu), A.F., & Toader, E. (2019). Transport infrastructure development, public performance and long-run economic growth: A case study for the Eu-28 countries. Sustainability. file:///D:/Documents/Downloads/ sustainability-11–00067-v2%20(1).pdf. Accessed: February 25, 2021. Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions on the New Industrial Strategy for Europe. (2020). https://eur-lex.europa.eu/legal-content/ EN/TXT/?uri=CELEX:52020DC0102. Accessed: October 03, 2020. Crozet, Y. (2017). Rail freight development in Europe: How to deal with a doubly-imperfect competition? Transportation Research Procedia, 25, 425–442. European Mobility Atlas. (2021). Facts and figures about transport and mobility in Europe 2021. Heinrich-Böll-Stiftung European Union. https://eu.boell.org/sites/default/files/2021-07/EUMobilityatlas2021_2ndedition_FINAL_WEB.pdf?dimension1=euma2021. Accessed: October 10, 2021. European Neighbourhood Policy and Enlargement Negotiations. https://ec.europa.eu/neighbourhoodEuropean Commission. enlargement/directorate-general_en. Accessed: October 10, 2021.

T. S. Malakhova et al. Glazyev, S. Yu. (2018). Leap into the future. Russia in new technological and world economic structures. International relations. Bilateral cooperation. European Commission. https://ec.europa.eu/transport/themes/international/bilateralcooperation_en. Accessed: October 09, 2021. Islam, D. M. Z. (2018). Prospects for European sustainable rail freight transport during economic austerity. Benchmarking: An International Journal, 25(8), 2783–2805. Islam, D. M. Z., Ricci, S., & Nelldal, B. L. (2016). How to make modal shift from road to rail possible in the European transport market, as aspired to in the EU Transport White Paper 2011. European Transport Research Review, 8(18). https://etrr.springeropen.com/ articles/10.1007/s12544-016-0204-x. Accessed: June 07, 2016. Karam, A., Reinau, K. H., & Østergaard, C. R. (2021). Horizontal collaboration in the freight transport sector: Barrier and decision-making frameworks. European Transport Research Review, 13, 1–22. Malakhova, T. S. (2019a). Transformation of the World Economy in the Context of Global Instability (pp. 213–217). The Spectrum of Opinions. Uchitel Publishing House. Malakhova, T. S. (2019b). Foreign Trade and Marketing Processes in the Context of Sustainable Development. In T. S. Malakhova, M. A. Dubinina, A. A. Maksaev, & R. V. Fomin (Eds.). International Journal of Economics and Business Administration, Greece, Special Issue, No. 2 (pp. 195–202). Połom, M., Tarkowski, M., & Puzdrakiewicz, K. (2018). Urban transformation in the context of rail transport development: The case of a newly built railway line in Gdańsk (Poland). Journal of Advanced Transportation. Tardivo, A., Zanuy, A. C., & Martin, C. S. (2021). COVID-19 impact on transport: A paper from the railways’ systems research perspective. Transportation Research Record, 2675(5), 367–378. Transport in Russia. (2020). Statistical collection of the Federal State Statistics Service (pp. 86–97). Wiesenthal, T., Condeço-Melhorado, A., & Leduc, G. (2015). Innovation in the European transport sector: A review. Transport Policy, 42, 86–93.

Legal Regulation of Management Relations and Overcoming Linguistic Barriers Arising from the Digitalization of Economic Objects Saida M. Guziekova , Pavel V. Gorlachev , Svetlana N. Zagnitko , Victoria Y. Pavlovskaya , and Anna V. Dudchenko

economic relations, which also need to be regulated on the basis of the adoption of norms for receiving and transmitting information. At the same time, it is necessary to introduce a systematic approach to ensure a holistic legal regulation of information security by the information infrastructure of the organization and the structural units interacting with it, in order to form uniform standards for the information technology life cycle. Data mining when introducing them into the directories of economic objects provides users with the necessary structured information, which contains: descriptions of data and their relationships, information about data sources and their reliability, information about the owners of data and the time of adding data to the directories based on selected unified linguistic information support systems.

Abstract

The process of digitalization of economic organizations through the active use of operational databases and information technologies enables the organization to reach a new level of management. There is a constant improvement of data recording and storage technologies, since it is the data that is regularly received in unlimited quantities and have a non-constant volume of source data, while there is a fragmentation of these data, their quantitative and qualitative indicators differ. Digitalization has provided an opportunity for the widespread development and implementation of distributed computing, such as: big data, artificial intelligence, distributed registry systems, wireless communication technologies, blockchain and much more, which allow automating and optimizing economic activity. At the same time, without legal support and information security of the interaction of all participants in information relations, the further development and widespread use of the above information technologies will be difficult. Thus, in relation to the use of information technologies, it is necessary to amend the legal regulation in this area, and in connection with the introduction of the principles of distributed information processing, data mining based on algorithms, it is necessary to introduce the institutions of “digital rights”, “digital identity” of an electronic document, “digital evidence”. The emergence of “new information relations” gave rise to linguistic barriers between participants in S. M. Guziekova (&) . A. V. Dudchenko Krasnodar Branch of the Russian University of Economics G. V. Plekhanova, Krasnodar, Russia e-mail: [email protected] P. V. Gorlachev . S. N. Zagnitko Krasnodar Institute of Cooperation (Branch) of Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] V. Y. Pavlovskaya Kuban State University, Krasnodar, Russia

Keywords

. . . . . .

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Digitalization Management Legal relations Information security Linguistics Organization Economics Data analysis Blockchain JEL Classification

D85 K20

1

.. .. .. .. .. . . . C51 K24

C53 L15

C55 C63 F66 F61 M15 M21 P17

F63

Introduction

Any modern organization is a kind of automated information system that contains one or more databases containing records of various facts (transactions) and objects (customers, suppliers, goods and logistics operations on them, financial transactions, various accounts and transactions), such records contain only a description of the fact of the transaction by the manager. Over time, the value of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_36

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information about this operation decreases, but the entire accumulated set of data on all operations turns into “new information”, which can become an analytical resource when making management decisions. “New information” can be information about patterns and relationships between some indicators, for example, determining the characteristics of consumer demand in a certain period of time—day, week, month, time of year, etc. The analysis of such information makes it possible to identify important and useful criteria for business users when performing various types of operations, forecasting, risk analysis, which is of great value for a modern company in data processing based on the technology of “data mining” (Saliy et al., 2021b). The creation of multi-level directories requires compliance with legal and linguistic norms, and the storage manager performs operations in compliance with the following rules: data consistency analysis, followed by entry into the created system and virtual tables, the data in which the process of data denormalization and generalization takes place, with subsequent transfer to backup storage. In an economic entity that is undergoing the digitalization of data, there are many reference books in which information comes from various sources, so the data may be scattered and inconsistent, hence the need to organize the processes of access, extraction, transformation, integration and loading of data, based on the selected linguistically constructed semantic core of the data warehouse (Guziekova, 2016).

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Methodology

The data mining technology is based on the concept of patterns that reflect fragments of all stored data, on the basis of which a business user will be able to build a more effective management strategy or marketing policy for organizing high-quality work with clients (Gorlachev et al., 2021b). At the same time, the data mining technology uses statistical or algorithmic data that effectively reflect patterns in data processing. Types of statistical data sampling: • association—reflects a number of interrelated events and determines the presence of probabilities of connections between them; • sequence—there is a chain of interrelated events; • forecasting—identifies time series, demand or sales targets in historical information. The digitalization of the economy in recent years has received a considerable leap in its development. Many organizations have achieved significant success with the promotion of their goods and services based on information services, and the labor market has transformed towards IT technologies, digital projects based on artificial intelligence

are increasingly being realized, the level of accessibility of digital services for the population and business is growing, the Internet is widely used. At the moment, it is quite difficult to measure the effectiveness of the applied elements of digitalization in the management of an organization, since there is no single approach to measuring the quality of information received, and methods for calculating key indicators of economic profitability may be inaccurate due to the immaturity of digital economy models. Information systems are becoming more and more popular as tools for managing economic objects. The implementation of the principles of digitalization of economic sectors requires the work of a large number of analysts who must be able to form requirements for data arrays through the introduction of digital technologies based on the use of modern linguistic apparatus and compliance with information law and information security (Guziekova & Khachak, 2013). Studying the relations in the field of development, implementation and use of information technologies in the organization’s infrastructure, it can be concluded that in most economic sectors there is no principle of legal regulation when switching to digital platforms with the storage of big data. And since the speed of creating and updating software and information technologies often lags behind the actions of working with this data, consequently, large volumes of poorly structured information accumulate in organizations, which are grouped in disparate databases (Saliy et al., 2021a). The inadequacy of legal frameworks in the field of application of management information systems: protracted nature, lack of flexibility in managing the process and making relevant changes to the project during its implementation. In addition, a significant problem is the current principles of the contract system, in which it is difficult to apply modern methods of software development. The relevance of the application of the data mining method allows to regulate linguistic barriers. And accordingly, the introduction of intelligent data processing technologies with a built-in logically structured semantic dictionary will make possible the mass use of information technologies in making managerial decisions (Saliy & Zagorova, 2021). The need to switch to organizational, legal and linguistically regulated methods for building a unified information security system is associated with the emergence and mass use of information technologies such as distributed computing, cloud systems, mathematical methods of cryptography, blockchain technologies (Guziekova & Khachak, 2013). The world-famous blockchain technology is a database with a number of specific properties, which implies entering information about the movement of a certain “unit of measurement” into a distributed registry. In fact, the blockchain

Legal Regulation of Management Relations and Overcoming Linguistic Barriers Arising from the Digitalization ...

is a network that supports not just a database, but a registry, which is a place of registration and accounting of data about an existing unit. It is also a database that stores any information different from the information about the movement of the unit of account, presented in the form of a chronological record of data, that is, not just a database, but a distributed chronological register. Thus, blockchain technology can be taken as a basis for data mining and, based on incoming data to the information system, it is possible to form a logically and semantically structured system reflecting the analytical component, for example, for various categories of customer purchasing power, using marketing solutions and financial analysis, based on the principle of placing “goods on one shelf”, in order to promote several products of the same consumer group. In general, the process of data mining when making a management decision using blockchain technology should take place in several stages: • collection and preparation of analytical data from the semantic core of the economic object system; • building a model based on the data obtained; • data health assessment based on the use of artificial intelligence to identify the most optimal of them. To carry out these operations, the following specialists are needed: managers, linguists with knowledge of syntax and semantics in the development of formal verification methods, lawyers with knowledge in the field of preventing unauthorized access, use, disclosure, modification or destruction of confidential information, and programmers. And in the future, to build a system of normative and legal regulation along with the development of standards of mandatory requirements, methodologies for modeling the hardware and software complex from the position of ensuring: information security, including data security; determining the prospects for the development of economic relations in information systems with the intellectual analysis of data coming from outside the information and the possibilities of their legal regulation. The active use of algorithm technology in processing disparate data arrays of an economic object reveals the problem of determining the reliability of this technology and ensuring the security of information collected and processed with its help, including ensuring the security of restricted access information placed in the information system. In the case when data integrity is compromised, this leads to the sale of counterfeit goods, phishing, SEO, cybersquatting, violation of intellectual rights. Also, the problem of data collection and analysis may be aggravated by a lack of understanding of the legal boundaries of the use of an organization’s intellectual property in a virtual environment on the part of users.

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However, in the process of production activity of an economic entity, many documents are created in natural language: reference resources, accounting documentation, financial and accounting reports, information for posting on social networks, various messengers, e-mail, etc. Accordingly, the formulation of requests in the organization's information system is conducted in natural language, as a result of which a certain dissonance is formed between the request and the response, which may pose some barrier when entering data into the information system. Initially, the input information is not unambiguous in its interpretation, but the meaning of a language unit often depends on the context of use, and words in different contexts can acquire different meanings. Various means of expression, the use of synonyms, antonyms to clarify the meaning further complicates the process of automatic analysis of textual information, determining the ambiguity of the analysis of language constructions, which in general can complicate the automated analysis of texts when entering it into directories when using data mining. As a result of the use of artificial intelligence algorithms, organizations may have access to their data, but they do not have the necessary tools to establish relationships between these data and make meaningful conclusions based on them. In addition, data is now being updated more and more frequently, and the result is a situation in which traditional methods of information analysis are unable keep up with huge volumes of constantly updated data, which ultimately opens the way for big data technologies (Bondarenko et al., 2018). Thus, in information processes for processing text information in data mining, it is necessary to apply quantitative and qualitative characteristics of information. The appearance of such an element as tokenization has led to the development of the technology of splitting text into “tokens” or semantic units necessary for solving a specific task, which may include: letters, words, n-grams, sentences, paragraphs and documents. In linguistics, tokenization means the process of processing any text, which consists in dividing it into separately significant units-tokens or semantic units expressed in linguistic connections. From a technological point of view, the term “tokenization” is used to describe the process of replacing unprotected elements with specially created protected tokens.

3

Results

In a generalized form, the process of data mining based on the algorithm is carried out in several stages: 1. Collection and analysis of data from various sources, on the basis of which a certain sample is formed from them,

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to which the “data mining” method is applied, while it is necessary to have software tools for accessing various data sources in the organization; 2. Building a data structure validation model based on checking all incoming components, as there may be mistakenly entered, redundant or insufficient data. 3. Normalization of the data structure, which means that the selected data should acquire a form suitable for subsequent analysis, that is, everything will depend on the chosen analysis method. 4. Application of the analysis method to the source data, based on methods of mathematical statistics, methods of evolutionary modeling and methods of machine learning, in order to “obtain “new knowledge” for their further processing to put them into operation in a newly constructed model for use in the management activities of the organization. As a result of the application of the data mining method, up-to-date information is collected, which is then transformed into a variety of reports. This is the most important element of the functioning of the organization's information system. At the same time, all reporting is divided into operational, reflecting the current state of the organization, and analytical. To receive operational reports, it is necessary to create operational systems. Operational systems are optimized for fast processing of a large number of simple transactions: sales, finance and marketing, as well as to provide the necessary performance when processing all operations. However, the correctness of the received data may be affected by the order and format of the input of all data that may be repeated or stored in the wrong format, the same record may be entered into the database several times, and in different formats. And the biggest disadvantage of operational databases is that they cannot store information for a long period of time and can be adjusted by different users or information intermediaries. According to Article 1253.1 of the Civil Code of the Russian Federation, an information intermediary is a person: • carrying out the transfer of material in the information and telecommunications network; • providing the opportunity to place the material or information necessary to obtain it using the information and telecommunications network; • providing an opportunity to access the material in the information and telecommunications network. Based on the principle of correlation, communication operators, website owners, as well as hosting providers can

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be attributed to information intermediaries (Pavlovskaya, 2020). Thus, in order to form a unified linguistic apparatus consisting of an organized array of organization data that are processed and stored in a single hardware and software complex, it is necessary to introduce access differentiation for all participants, which will contribute to compliance with the basic principles of information security when using data mining technology (Guziekova & Khachak, 2013). Such a data warehouse will provide quick access to operational and historical information and provide extensive opportunities for building analytical and perspective reports of economic objects, and the use of blockchain technology made in the form of an informational digital model will allow to form: • subject orientation, that is, the data in the data warehouse will be organized in accordance with the main activity of the organization; • integration, all data loaded on the basis of a search algorithm are extracted from operational databases, checked and brought to a single form based on linguistic units; • immutability, all data selected for storage is no longer subject to processing and modification. This transformation is primarily associated with the revision of the concepts of building unified information spaces in the implementation of investment projects (Gogolin & Fadeeva, 2018). There has also been a transformation of the idea of an information unit: now it is not a document, but a data model that allows you to get a slice of data on almost any plane and form a report or calculation document, an element of the work schedule, an analytical slice, etc. This possibility is realized due to the interconnection of the elements of the model, when the decomposition allows to move from the general to the particular, from a single model to its component parts, while the depth of providing characteristics for the element also changes (Gorlachev et al., 2021a).

4

Discussion

The process of data extraction during data mining in the operation of an economic object using an algorithm involves moving data from one or more databases to a single data warehouse in compliance with the principles of information security. The main factor in this case is the frequency of intellectual analysis, which depends on the nature of the accumulation or change of data when making managerial decisions (Saliy et al., 2021b).

Legal Regulation of Management Relations and Overcoming Linguistic Barriers Arising from the Digitalization ...

In the process of working with data, it is necessary to check them in order to exclude duplicated data, reject random data, restore lost data and perform operations to bring data to a single format using linguistic apparatus and compliance with information security by information intermediaries. At the same time, data transformation determines their further reduction to a single notation system based on a single linguistic component of the system, since data coming from disparate sources can have the same semantic meaning, but be encoded with different symbols and measured in different units. In this regard, blockchain technology is an effective tool, when using which all data is reduced to a single semantic and syntactic meaning and a single denominator. At the same time, a holistic picture of the field of activity of an economic entity is formed, in which subsequent data mining and integration will be carried out according to various proposed parameters.

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Conclusion

The constant increase in the volume of stored data, their fragmentation and inconsistency complicate the management of the organization and make it difficult to monitor its current economic condition. Operational analytical data processing using artificial intelligence algorithms will allow an economic entity to function effectively in an interactive mode, which is especially important when using unified data warehouses, where information must be presented in a logically structured form with the appropriate linguistic apparatus of the main units. All incoming data must be combined and presented in the form of a sequential chain of data arrays, which are transferred to a single organized storage and built on the basis of blockchain technology for subsequent data mining. Also, the effective operation of the data warehouse requires the introduction of structured information, using tools for viewing and visualizing information, and means of linguistic text optimization based on data mining. Accordingly, the collected information in a single warehouse organizes data in the form of a multidimensional element, where the attributes are the main analyzed business processes: sales volume, consumer demand for a specific product, region, time and other relevant information. However, the choice of tools for data mining primarily depends on the goals and budget of the organization (Saliy & Zagorova, 2021).

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At the same time, it is necessary to understand that in strategic terms, the creation of an effective information and analytical system will be the optimal tool for competitive advantage in the market, and digitalization is a necessary element of the development of a modern economic facility. This system will make it possible to receive unchangeable, timely and reliable information about the functional components of the organization, which will ensure transparency of the organization’s activities, which in turn will attract potential investors.

References Bondarenko, N. G., Strizhova, E. V., Allalyev, R. M., Smirnov, M. G., & Dudchenko, A. V. (2018). History and main trends in the development of copyright. Journal of Advanced Research in Law and Economics, 9(1), 41–47. Gogolin, S. S., & Fadeeva, E. Y. (2018). Improving the efficiency of managerial decision-making in logistics based on the use of information and analytical systems. Bulletin of the Academy of Knowledge, 29(6), 111–117. Gorlachev, P. V., Kunakovskaya, I. A., Habahu, S. N., Artyushkova, A. Y., & Gribok, N. N. (2021a). Development of regional transport infrastructure and its financial mechanisms in Russia. Studies in Systems, Decision and Control, 316. Springer, Cham, pp. 457–465. DOI: https://doi.org/10.1007/978-3-030-57831-2_48 Gorlachev, P. V., Zagnitko, S. N., Rudenko, V. A., Popova, T. S., Zheleznyakov, V. A., & Peshkova, E. G. (2021b). Land management in a competitive market environment. Publishing House Novatsiya. Guziekova, S. M. (2016). Semantic and cognitive aspect of the study of the artistic picture of the world. Bulletin of the Adygea State University, Maykop, Publishing House of ASU, 1(172), 40–45. Guziekova, S. M., & Khachak, S. K. (2013). Neologisms in modern Russian and English languages. Cultural Life of the South of Russia, Krasnodar, Ultrapress Publishing House, 2(49), 67–68. Pavlovskaya, V. Y. (2020). Management of marketing activities of regional retail chains in consumer markets. Practical Marketing, 10 (284). Saliy, V. V., Ishchenko, O. V., Bush, V. G., Gladysheva, E. G., & Abyzova, E. V. (2021a). Accounting and analytical systems as an integral element of contemporary accounting. Studies in Systems, Decision and Control, 316, 739–746. Saliy, V. V., Kukharenko, L. V., & Ishchenko, O. V. (2021b). Digital transformation of the economy introduction of data warehouses based on big data into the company’s infrastructure. Bulletin of the Academy of Knowledge, 3(44), 208–214. Saliy, V. V., & Zagorova, Y. Y. (2021). Analysis of the development and functioning of electronic business in Russia. In Collection of scientific articles of the teaching staff and students of Russian scientific and educational institutions. Berlin, Publishing House West-Ost Verlag.

Cooperative Processes Within the Framework of Co-evolution of Information Society Ljudmila Yu. Alexandrova , Olga N. Gorodnova , Galina V. Kalinina , Olga F. Kireeva , and Felix I. Sharkov

significantly reduces costs and the degree of risk and uncertainty. Originality: Based on the analysis of statistical data, it is concluded that digitalization is becoming a catalyst for the co-evolution of the information society, and one of the types of co-evolutionary interactions between economic agents is becoming cooperative.

Abstract

Purpose: The research was carried out within the framework of scientific project No. 20-010-00529 “Co-evolution of the information society and the digital economy: fundamental opportunities, challenges and threats” supported by the RFBR. The purpose of this article is to identify cooperative processes within the framework of the co-evolution of the information society and to substantiate its prospects. In modern realities, the effective development of all spheres of public life requires a developed information infrastructure and the use of information and communication technologies. Methodology: The authors use methods of logical, system, statistical, structural and comparative analysis. The object of the study is the co-evolution of the information society; the subject is the cooperative processes taking place within the framework of co-evolution. Findings: The principle of co-evolution is an important means of solving the problems facing society as a result of the digitalization of the economy. New information and communication technologies, penetrating into all spheres of social life, impose new requirements on the field of information security. One of the important sources of creating competitive advantages is increasing the degree of cooperation between organizations and enterprises, which L. Yu. Alexandrova (&) . G. V. Kalinina Cheboksary Institute (Branch) Moscow University of Humanities and Economics, Cheboksary, Russia e-mail: [email protected] O. N. Gorodnova Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia O. F. Kireeva Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia e-mail: [email protected] F. I. Sharkov MGIMO University, Moscow, Russia

Keywords

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Information society Co-evolution Information and communication technologies Cooperative processes Innovations Cooperation

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JEL Classification

A12

1

. . . . A14

D80

D83

O32

Introduction

In modern realities, a new digital environment of society is being formed, the forms of information and communication technologies are changing, which requires understanding the socio-economic consequences of technological transformation. The topic of the research is relevant, since the dynamics of changes in information and communication technologies is growing rapidly, thereby changing the system of society itself and the speed of information exchange both between people and between a person and the state. All this entails economic and social changes, integration processes in society. In modern realities, there is a co-evolution of the social, information and digital environment. The principle of co-evolution offers a planned progressive movement that will not destroy the stability of the social and economic environment and will create the necessary conditions for their development within the framework of digitalization. At the same time, digitalization becomes a catalyst for the co-evolution of the information society.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_37

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The rapid development of information and communication technologies significantly affects the course of the scientific and technological revolution. There are many interpretations of the concept of “information society”. Thus, it is defined as a technotronic, post-capitalist, post-industrial or knowledge, risk, technology society. The next important stage in the development of society is the emergence of an information society in which the system of creating, processing and transmitting information, the production of intellectual products and innovations becomes the defining factor. The development and formation of the information society is directly related to the theory of sustainable development and co-evolutionary development of society. For example, N.N. Moiseev defines the information society as follows: “This is a stage in the history of mankind when the Collective Mind becomes not only the main pillar for the development of the species homo sapiens, but also the object of purposeful efforts to improve it” (Moiseev, 1993). The co-evolution of the information society in the conditions of digitalization of the economy affects the functionality of the development of the social system and determines the parameters of competition of all civil society institutions (Sharkov, 2014). The role of co-evolutionary processes of mutual adaptation and interaction of public consciousness and society is in the fact that new social institutions and value orientations are being formed, which in the public consciousness simultaneously act both as a condition of coexistence and as a result of functioning (Slyadneva, 2009).

2

Methodology

The theoretical basis for the research was the concepts, approaches and methods that have been developed so far by the sociological and economic sciences in the world. The following works study the features of the co-evolution of the information society: Muntyan (2000), Yakovets (1997), Abdeev (1994), Castels (2000), Kuzmin (2005), Moiseev (1993), Slyadneva (2009). Cooperative strategies of enterprises in the era of innovation were studied by: Vlasova and Roud (2020), Khomich (2014). Scientists V. A. Vasin and L. E. Mindeli identified new aspects of cooperation in the scientific and innovative sphere (Vasin & Mindeli, 2018). In this study, the authors apply a logical method that explains the developing processes in cooperation in the context of the co-evolution of the information society. The authors use methods of structural, logical, system, comparative and statistical analyses. The information base of this study is represented by data from Rosstat and Institute for Statistical Studies and Economics of Knowledge (ISSEK) National Research University “Higher School of Economics” (HSE), as well as empirical developments by foreign and Russian authors.

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Results

Currently, there is a rapid construction of global communication networks, the development of an information and communication environment in which traditional mass media are transformed into modern forms, new virtual reality technologies and other telecommunication information technologies are being developed. Thanks to modern mass media, the traditional life of society has been transformed, taking on new forms. The most relevant is information communication, the tasks of which are the production, processing, exchange of information (Oost et al., 2009). New types of social groups are emerging, a new ideology is being created, which entails the formation of a modern sociotype of a member of society. Every day we are bombarded with an increasing flow of information, which is becoming more and more accessible. All this forms a new unified complex of information resources on a global scale, requiring new approaches. Information freedom is the basis of a new type of citizenship, accelerates the processes of socialization of the information society (Kireeva, 2013). But, along with all the positive factors of the formation of the information society, negative consequences cannot be ignored, since there may be a real threat of negative use of achievements in the information sphere, which may disrupt stability and security. Due to the rapid development of information and communication technologies, the issue of protecting personal, public and state security arises. Therefore, the most urgent problem is finding effective tools to ensure security and protection from information that is used in the system of modern information and communication technologies. Information and communication technologies directly affect the daily life of a person, determining the specifics of his life, leisure, lifestyle. All this leads to an increase in the degree of control not only of the public, but also of the private life of the members of society. In 2020, Rosstat jointly with the Higher School of Economics conducted a study on the development of the information society in Russia. According to the data of the statistical collection “Information Society in the Russian Federation. 2020”, the majority of the population positively assesses the impact of information technologies and information and communication networks. The share of the population negatively related to these technologies has significantly decreased (from 2.3% in 2015 to 1.3% in 2019). This is also evidenced by the fact that in 2019 (compared to 2016) the share of people who use antivirus tools decreased and the share of those who do not use any information security tools at all increased (Fig. 1). As a result of the above research, it is possible to draw conclusions about the types of information security threats faced by the population (Fig. 2).

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PC security tools are not used

Another PC security tools

Filtering Internet resources

Anti-spam filters

Antivirus tools 0

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30 2018

40

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Fig. 1 The population using information security tools (as a percentage of the total population using the Internet). Source Compiled by the authors based on the source (Information Society in the Russian Federation, 2020)

20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

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1.4 1.5

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Unauthorized Visiting unwanted Use of e-mail by Other problems computer access websites by unknown persons children

Fig. 2 Problems of information security faced by the population (as a percentage of the total population using the Internet). Source Compiled by the authors based on the source (Information Society in the Russian Federation, 2020)

According to Fig. 2, only the information threat in the form of unauthorized mailings, spam has increased (19.0% in 2015 compared to 22.3% in 2019), for other types of information security, there is a tendency to decrease or maintain the same levels. All these data confirm that the development of the information space benefits our society, confidence in information and communication technologies

is growing. This is achieved through the development of new ways of information protection, as well as the protection of user data. Therefore, based on all of the above, it is important to combine the introduction of the latest digital technologies with increased attention to the safety of both the individual and society as a whole. New information and

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communication technologies, penetrating into all spheres of social life, introduce new requirements to the field of information security.

4

Discussion

In modern realities, there is a co-evolution of the natural and information environment, a new integrated natural and technological environment is being formed. At the same time, digitalization itself in this case acts as a catalyst for these co-evolution processes. Under the influence of co-evolution, the stability of the social environment is not destroyed, but, on the contrary, it acquires flexibility and adaptability, while creating the necessary conditions for the development of society. At the same time, the vital activity of society should be adapted to digital processes. The principle of co-evolution is an important means of solving the problems facing society as a result of the digitalization of the economy. In this case, co-evolution determines the parameters of competition between formal and informal institutions of society and accordingly affects the functionality of the state system in the conditions of digitalization. The positive aspects of the new information order include: great opportunities for social creativity and self-expression, freedom of access to information, a variety of opportunities to participate in social projects and much more. With the introduction of scientific and technological progress, the forms of information and communication technologies are changing rapidly, transforming the system of public life, accelerating the speed of information exchange between people, as well as between society and states. Information and communication technologies are forming a new global information and cyberspace, thereby expanding opportunities for the development of international cooperation and collaboration. Innovations such as cryptocurrency, virtual and augmented reality, e-government, big data, artificial intelligence, etc. are becoming a new trend in the development of modern society (Rese & Baier, 2011). In modern realities, incentives for integration in the economy, banking operations, information space, etc. are formed. The economic approach is based on the increasing role of the economic value of information activity. With this approach, the genesis of the information society is determined by the development of intellectual services and information and communication technologies, which become the main product bought and sold on the market. Social information becomes an important economic resource that significantly accelerates scientific and technological progress. Consequently, these transformations of the service sector lead to the emergence of a qualitatively new form of

economy in which basic goods and services are created with the help of information and communication technologies. One of the types of co-evolutionary interactions between economic agents is cooperative. The transition to both the knowledge society and the knowledge economy significantly changes the mechanisms of internal and external cooperation. In modern realities, an effective means of gaining access to new knowledge at the company level is the formation and implementation of cooperative strategies (Becker & Dietz, 2004). For successful innovation, enterprises and organizations should develop not only their research, but also try to develop a system of mutually beneficial relationships. All these processes form a cooperative system of interaction between market participants (Jorde & Teece, 1990). This system makes it possible to combine the resources and competencies of various authors, thereby reducing the costs of research and development, reducing the risks of uncertainty. Based on the results of regular monitoring of innovative behavior of enterprises by the end of 2020, conducted by HSE, it can be concluded that Russian corporate science relies more on organizational practices of informal network interactions, which are most characteristic of the culture of open innovation (https://trends.rbc.ru/trends/education/ 613b4f559a7947597f49cd43). It is also noted that the ability of companies to carry out their own research and development is an important condition for successful scientific and industrial cooperation. Naturally, such enterprises demonstrate the intensity of cooperation with scientific organizations and universities in Russia by an average of 10% higher (30.7% and 26.9%, respectively). Therefore, in order to increase the competitiveness of Russian enterprises of high-tech industries, they should rely on research and development, strengthen their own scientific potential, and also strive to cooperate with universities and scientific organizations. And the very development of Russian corporate science is closely linked to the strategic goals of business projects.

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Conclusion

In the conditions of digitalization of the economy, the co-evolution of the information society provides a balance of system-forming and system-changing factors of the development of society, whose progressive movement is safe for the stability of the social environment. All this creates important conditions for the development of the information society. But digitalization will be more effective if the security of the individual’s functioning in the information and communication environment is ensured. Today, the main task is to increase public confidence in digital

Cooperative Processes Within the Framework of Co-evolution of Information Society

technologies by ensuring a high level of security of the information and communication environment (King et al., 1994). One of the types of co-evolutionary interactions between economic agents is cooperative (Alexandrova et al., 2021). Such phenomena as the co-evolution of the information society, integration processes, information and communication technologies can be considered as the resulting concepts of socially oriented cooperation. Cooperation itself becomes a powerful resource for the organic integration of the R&D sphere into the economy and knowledge society (Mention, 2011). The desire of companies to reduce transaction costs and increase the level of competitiveness reinforces the growing trend towards cooperation between enterprises and organizations in innovative processes.

References Abdeev, R. F. (1994). Philosophy of information civilization (pp. 95– 98). VLADOS. Alexandrova, L. Y., Kireeva, O. F., Timofeev, S. V., Munshi, A. Y., & Shikanova, A. N. (2021). On the issue of innovative development of the distribution center in the system of consumer cooperation in the region. In Studies in Systems, Decision and Control (Vol. 316, pp. 73–80) Springer Nature. https://doi.org/10.1007/978-3-03057831-2_8 Becker, W., & Dietz, J. (2004). R&D co-operation and innovation activities of firms: Evidence for the German manufacturing industry. Research Policy, 33, 209–223. Castels, M. (2000). The Information Age: Economy, Society and Culture. Higher School of Economics (pp. 157–313, 399–434, 455– 464). HSE experts assessed the involvement of Russian business in R&D. (2021). RBK. Trends. https://trends.rbc.ru/trends/education/ 613b4f559a7947597f49cd43. Data accessed: November 09, 2021. Information Society in the Russian Federation. 2020: statistical collection. (2020). Federal State Statistics Service. Moscow, National Research University “Higher School of Economics”.

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Jorde, T. M., & Teece, D. J. (1990). Innovation and cooperation: Implications for competition and antitrust. Journal of Economic Perspectives, 4(3), 75–96. Khomich, S. G. (2014). Intercompany cooperation IN innovation: The theoretical foundations. Bulletin of St. Petersburg University, Management, 3, 135–176. King, J. L., Gurbaxani, V., Kraemer, K. L., McFarlan, F. W., Raman, K. S., & Yap, C. S. (1994). Institutional factors in information technology innovation. Information Systems Research, 5(2), 139– 169. Kireeva, O. F. (2013). Sociological diagnostics of information security of the information and communication environment. Labor and Social Relations, 12, 35–42. Kuzmin, E. I. (2005). Humanitarian aspects of information policy formation in the conditions of building a knowledge society. In Information support of fundamental and applied sciences. VINITI. Mention, A. L. (2011). Co-operation and co-opetition as open innovation practices in the service sector: Which influence on innovation novelty? Technovation, 31(1), 44–53. Moiseev, N. N. (1993). Information society: Possibilities and reality (Vol. 3, pp. 12–26, 82). Muntyan, M. A. (2000). Post-industrial society and global civilization. Oost, E. V., Verhaegh, S., Oudshoorn, N. (2009). From innovation community to community innovation: User-initiated innovation in wireless Leiden. In Science, Technology & Human Values, 34(2), 182–205. Rese, A., & Baier, D. (2011). Success factors for innovation management in networks of small and medium enterprises. In R&D Management, 41(2), 138–155. Sharkov, F. I. (2014). Information and communication paradigm of the Russian State. Communicology, 3(1), 111–118. Slyadneva, N. A. (2009). Civil society and information society: The problem of coevolution. Information Resources of Russia, 2(108), 2–6. Vasin, V. A., & Mindeli, L. E. (2018). On the way to the knowledge-based society: New contours of cooperation in science and innovation sphere. Innovations, 1(231), 3–11. Vlasova, V., & Roud, V. (2020). Cooperative strategies in the age of open innovation: Choice of partners, geography and duration. Foresight and STI Governance, 14(4), 80–94. https://doi.org/10. 17323/2500-2597.2020.4.80.94 Yakovets, Yu. V. (1997). History of civilizations: Textbook for university students humanit (2nd ed.). VLADOS.

Legislation as a Means of State Influence on Cooperation Maxim Yu. Gofman , Natalia V. Selkina , Anna V. Stadnyuk , Anna Sh. Elyazyan , and Anna V. Lichkovakha

Abstract

This paper examines the functioning of the law in the area of relations between the government and cooperative structures. To study the selected topic, the authors apply general scientific (analysis and synthesis) and specific scientific methods (historical and formal-legal). Based on the conducted research, the authors conclude that the transition to a democratic regime initiated the rapid development of cooperative legislation. It should be highlighted that this development occurred due to the cooperative community. Keywords

.

State

. . . .

K19

Legislation

.

Cooperation

. . Law

1

K49

K20

K10

Methodology

All features of the considered topic are studied in the works of Baitursunov and Gusov (2016), Saenko (2019), Samarkhanov (2017), Vahitov (2016), and other legal theorists and practitioners.

Results

Democracy

Introduction

Historical experience shows that mutually beneficial and close cooperation of cooperatives with the state on a partnership basis is possible precisely in a market democracy. The American economist Anthony Downes wrote that the market model of democracy is the idea of a political market, where political values (power, responsibility, and trusteeship) are exchanged. By renouncing dictatorship to cooperative organizations, the democratic country creates economic, organizational, and legal conditions under which

M. Yu. Gofman . N. V. Selkina . A. V. Stadnyuk . A. Sh. Elyazyan (&) . A. V. Lichkovakha Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected]

2

3

JEL Classification

K00

they voluntarily consider the provisions of policy documents of the country’s economic and social development in their activities (Vakhitov, 2016).

Cooperative organizations form one of the sectors of Russia’s economic system. Cooperation is understood in two basic senses: as a special form of economic cooperation and a system of cooperative organizations created to meet the economic, social, and other needs of its members (Eskindarov, 2021). Some lawyers distinguish cooperative law as a separate branch of law. While there is some justification for this interpretation of the status of cooperative law, it can hardly be considered well-founded. A more convincing position is that cooperative law is interpreted as an inter-branch complex institute of law, which is formed from the norms of civil, administrative, land, labor, and other branches of law and is divided into several sub-institutes (the right of cooperative membership, the right of cooperative self-government, and others) (Kruchinina, 2015). Like other structural parts of the system of law, cooperative law has its own subject of legal regulation—qualitatively homogeneous social relations regulated by a particular set of legal rules. The subject of cooperative law is intra-cooperative relations based on cooperative membership, which determines the specifics of organizational, managerial, property, labor, economic, contractual, and other

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_38

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relations in the cooperative (i.e., membership, property, contractual, production, labor, managerial, and other intra-cooperative relations). Relations between cooperative members, the cooperative itself, and between the cooperative and cooperative associations are based on membership principles. Based on and developing on the basis of membership, cooperative relations act as a single integral set of relations (Kozubra, 2015). Some external relations of cooperative organizations regulated by special laws (primarily, relations of cooperatives and their associations with the government) can also be attributed to the structure of the subject of cooperative law. Thus, cooperative law can be defined as a set of established or government-sanctioned legal norms that enshrine the principles, forms, conditions, and procedures for establishing and operating cooperatives and their associations and regulating cooperative relations of cooperatives with the government. It should be noted that cooperative law consists of legal norms established by the government and norms adopted by the governing bodies (Semchik, 1998). Legislation is the most powerful instrument of government influence on cooperative relations. The need to apply the law arises in the following basic cases: • State registration of cooperatives and their associations; • Dispute about the right (ownership, contractual and other obligations, etc.); • The decision of the state body leads to the emergence, modification, or termination of certain legal relations involving cooperative; • Cooperative organizations violate the rules monitored by the government (on the safety of production and labor, sanitary and environmental requirements, payment of obligatory payments to the budget, spending of budgetary funds, etc.) (Kleandrov, 1984). The history of the development of the cooperative movement in the Russian Federation and other countries suggests that the cooperative legislation is the focus in which it is appropriate to consider a wide range of relations between the government and cooperation. It is the main instrument of state-legal influence on cooperation and, simultaneously, is the result of the relationship between government and cooperative structures interacting among themselves and with other non-governmental organizations (Vakhitov, 2016). Under certain historical conditions of the existence of the state and cooperation, the cooperative movement loses its power and disappears altogether or turns into a kind of social phantom (Geley & Pastushenko, 2006).

M. Yu. Gofman et al.

In most countries, the creation of cooperative legislation favorable to the functioning and development of cooperative organizations resulted from the cooperative community’s persistent efforts. The attitude of other social movements and political parties to the cooperative movement, the popularity of the cooperative idea among the population, and other factors played an important role in the progressive development of cooperative legislation. Consequently, the level of development of cooperative legislation and the very fact of its existence reflects the relationship of social partnership in society and the ability of the government, cooperation, and other social forces to conduct an equal dialogue to achieve social progress (Isakov, 2020). When not deformed by the destructive influences of a nondemocratic regime, legislation can act as an effective means of limiting state power as a force that potentially, by its nature, can pose a danger to cooperatives and other social entities. Legal laws should limit the scope of the state’s administrative methods of influence on cooperative organizations. From this perspective, cooperative legislation acts as a form of expression of the government’s will and a means of balancing the relationship between the government and cooperation, their dialogization. Legislation is one of the methods of relations between the government and cooperation. The methods of relations between the government and cooperation are a set of legal means of mutual influence of these subjects carried out in the area of legal regulation of cooperative relations and outside it (Haritonova, 2015). The basic methods of legal regulation of cooperative relations are as follows: (1) Centralized –carried out by state bodies on the power-imperative principles; (2) Decentralized—marked with the activity of cooperative bodies on legal regulation of intra-cooperative relations (Gusov & Baitursunov, 2016). Cooperative organizations can use various ways and means of exerting reverse influence on state power, including the following: • Participate in the development and discussion of draft legislative acts and the implementation of public control over the activities of state bodies; • Resort to judicial and administrative protection of their rights and legitimate interests in relations with the government; • Exert informational influence on government agencies and their employees and the like (Maksimov, 2018).

Legislation as a Means of State Influence on Cooperation

In its activities, any cooperative is guided by the provisions of the Constitution of the Russian Federation (Russian Federation, 1993), Civil Code of the Russian Federation (Russian Federation, 1994), and Federal law of the Russian Federation “On non-commercial organizations” (January 12, 1996 No. 7-FZ) (Russian Federation, 1996). The basis of relations in the cooperative is defined by legislative acts regulating the organizational and economic aspects of consumer cooperatives, including the company’s Charter and Federal law of the Russian Federation “On credit cooperation” (July 18, 2009 No. 190-FZ) (Russian Federation, 2009). These normative acts define that the government is obliged to guarantee the rights and legitimate interests of cooperative organizations and their members and promote the development and strengthening of their economic independence. It is worth noting that the charters of cooperatives and their associations (unions, associations) are important for legal regulation. The charter is an organizational and legal document that, in accordance with the law, defines the legal, organizational, social, and economic basis for the establishment and operation of a cooperative society (Saenko, 2019). There are two forms of statutes used in the cooperative— an approximate and a particular. Nowadays, there are thousands of cooperatives in Russia, each of which operates under its own specific charter. Based on a specific charter, each cooperative is registered by state authorities and acquires the status of a legal entity. The charter is a sign of the legal independence of any organization. The contents of the charter must include the following provisions: • • • • • •

Name; Location; Goals, objectives, and principles of activity; Entry and exit order; Rights and obligations of shareholders; Provisions defining managerial, property, and labor relations; • Other necessary provisions (Kotsareva & Ustimenko, 2016). As compared to the law, the charter defines in more detail the rights and obligations of shareholders, management, and control bodies, the income distribution procedure, and other relations. The charters of cooperatives provide consumer societies, their unions, and, consequently, the entire system of consumer cooperation with a broader legal framework.

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4

Conclusion

Russian cooperative legislation has been developing rapidly for many decades. Nowadays, current cooperative legislation is developing intensively. Nowadays, there are two key types of cooperatives distinguished in the Russian Federation: (1) Production (commercial). Their main goal is aimed at obtaining maximum profit. (2) Consumer (non-commercial). They are created to achieve socially useful goals but may also engage in commercial activities if it does not contradict the laws of the Russian Federation (Samarkhanov, 2017). The main types of cooperatives in Russia regulated by certain federal laws of the Russian Federation are as follows: • • • • •

Consumer cooperative; Credit consumer cooperative; Housing and savings cooperative; Production cooperative; Agricultural cooperative (Samarkhanov, 2017).

Thus, there are sufficient grounds for various forms of cooperation to ensure further development and for the legislator to ensure that their work is fully correct and transparent.

References Eskindarov, M. A. (Ed.). (2021). The concept of effective entrepreneurship in the field of new solutions, projects, and hypotheses (3rd ed.). Dashkov and Co. Geley, S. D., & Pastushenko, R. Ya. (2006). Theory and history of cooperation: A textbook. Znannya. Gusov, A. Z., & Baitursunov, A. A. (2016). Entrepreneurship as an object of state regulation. Scientific Notes of the Russian Academy of Entrepreneurship, 49, 87–96. Haritonova, Yu. S. (2015). Creating a production cooperative: Law and practice. Vestnik of Moscow City University. Series: Legal Sciences, 1(17), 89–97. Isakov, V. B. (Ed.). (2020). Theory of state and law: Game workshops. Norma; INFRA-M. Kleandrov, M. I. (1984). Economic rights of consumer cooperative enterprises. Ekonomika. Kotsareva, V. V., & Ustimenko, A. L. (2016). Peculiarities of the legal status of a consumer cooperative. Economics, Sociology, and Law, 11, 123–125. Kruchinina, V. M. (2015). Consumer cooperation in the system of Russian cooperation at the present stage (taking into account foreign experience). Dashkov and Co. Kozubra, M. I. (Ed.). (2015). General theory of law: A textbook. Vaite. Maksimov, S. V. (2018). Development of the domestic consumer cooperation market. INFRA-M; Scientific Thought.

202 Russian Federation. (1993). The Constitution of the Russian Federation (adopted by national referendum on December 12, 1993). Moscow, Russia. Russian Federation. (1994). Civil Code of the Russian Federation (Part One) (November 30, 1994 No. 51-FZ). Moscow, Russia. Russian Federation. (1996). Federal law “On non-commercial organizations” (January 12, 1996 No. 7-FZ). Moscow, Russia. Russian Federation. (2009). Federal law “On credit cooperation” (July 18, 2009 No. 190-FZ). Moscow, Russia.

M. Yu. Gofman et al. Saenko, B. E. (2019). Strategic planning: The economic and legal aspects. Collection of Scientific Works of the Series “Law,” 3(15), 113–130. Samarkhanov, T. G. (2017). Creation and effective functioning of agricultural consumer cooperatives: Methodological recommendations. Rossinformagtrotech. Semchik, V. I. (Ed.). (1998). Cooperative law: A textbook. In-Jure. Vakhitov, K. I. (2016). Cooperators of Russia: The history of cooperation in persons. Dashkov and Co.

Role and Importance of Mediation in Ensuring the Rule of Law and Partnerships for Sustainable Development Elena F. Usmanova , Pavel V. Malyshkin , and Roman V. Fedoseev

realization of the interests of each party to the conflict and, most importantly, the reconciliation of these interests.

Abstract

Nowadays, the scale and dynamics of international cooperation are increasing, and the interaction of actors in the international sphere is becoming more intense in various areas of public life, especially in the economic sphere, where the implementation of the principles of the international division of labor has created conditions for the intensification of economic processes, resulting in the inevitable emergence of disputes and conflicts. The paper aims to analyze the role and importance of mediation in promoting the rule of law and developing partnerships for sustainable development. The authors use general scientific, private-scientific, historical-legal, formal-legal, theoretical-prognostic, and other methods of scientific research. The paper examines the essence of mediation and its regulatory framework, explores the benefits of mediation in the rule of law and partnership development, and identifies the distinctive features and importance of mediation in the rule of law and partnership development for sustainable development. Based on the analysis, it is emphasized that in the context of globalization, the threat of contradictions and conflicts in various spheres of social life tends to worsen. Simultaneously, the primary goals of sustainable development imply the need to overcome conflicts in the sphere of international interaction and form constructive partnerships. Under these conditions, the practice of mediation demonstrates great potential as a mechanism of dispute resolution focused on the E. F. Usmanova (&) National Research Mordovia State University, Saransk, Russia e-mail: [email protected] P. V. Malyshkin Saransk Cooperative Institute (Branch) of Russian University of Cooperation, Saransk, Russia e-mail: [email protected] R. V. Fedoseev Kazan Institute (Branch) the All-Russian State University of Justice, Kazan, Russia

Keywords

..

.

.

Mediation Partnerships Sustainable development Globalization International relations Dispute and conflict resolution

.

JEL Classification

F2

1

. . . F5

K3

K4

Introduction

The scale and dynamics of international cooperation are currently increasing. The international interaction of subjects is becoming more intense in various areas of public life. This process is especially evident in the economic sphere that experiences significant intensification of economic processes. The growth of interaction of subjects in the international sphere is associated with the desire to increase the efficiency of social processes, improve the quality of life of people, and solve problems that any country may face. However, globalization and the associated increase in the scale of interaction between actors also has a negative aspect, which is due to the fact that not only solidarity and willingness to cooperate can exist between various participants in international interaction. Conflicts and contradictions often arise in the interests of various participants in international relations, which, at least, does not allow them to cooperate and, at most, leads to a conflict with severe consequences. The set of key goals implemented within the UN activities is integrated within the concept of sustainable development, which includes a system of global attitudes that

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_39

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collectively determine a favorable scenario for the development of human civilization, which involves solving several humanitarian, economic, environmental, political, scientific, and technical problems. Together, the paradigm of sustainable development includes 17 target areas, including peace, justice, effective institutions, and partnership for sustainable development (Shurenkova, 2021). Adopting the concept of sustainable development, the UN has conducted extensive global consultations to develop a human-oriented development agenda that rests upon this momentum, solve problems requiring further development, and expand the goals in terms of scope and duration of these problems (Macht et al., 2020). In the globalized world, the correlation of law and economics has become an axiom and an immutable rule for everyone, which is adhered to by all countries based on the development of the competitive market and democratic institutions. In this context, the principle of the rule of law should be regarded as one of the effective tools using which civil society and public authorities can create favorable conditions for business activity, highly profitable business, protection of property rights, and economic growth, without significant risks and social upheavals in the interests of sustainable development (Lisitsyn-Svetlanov et al., 2018). Collaborative work is the only way to the success of sustainable development initiatives since partnerships are crucial for capacity building in the economy. Capacity building involves providing individuals and organizations with the knowledge, tools, and other resources needed to achieve their goals. Therefore, currently, the issue of creating new forms and mechanisms and increasing the efficiency of their use is actively discussed at the international economic level based on the conclusions of scientists and experts from various fields (Malakhova, 2020). One of such mechanisms is the use of mediation in resolving disputes and conflicts. Mediation is undoubtedly the leading alternative method of conflict resolution both at the national and international level in settlement of economic and commercial disputes. The paper aims to analyze the role and importance of mediation in ensuring the rule of law and developing partnerships for sustainable development. The main research tasks are as follows: • To determine the essence of mediation and its normative consolidation; • To study the advantages of mediation in ensuring the rule of law and developing partnerships; • To identify the distinctive features and importance of mediation in ensuring the rule of law and developing partnerships for sustainable development.

E. F. Usmanova et al.

2

Methodology

Data from Russian periodicals, online portals, legal documents, and legislative acts published in open internet sources served as materials for studying and analyzing the role and importance of mediation in ensuring the rule of law and developing partnerships in the interests of sustainable development. The study of the role and significance of mediation in ensuring the rule of law and developing partnerships in the interests of sustainable development was conducted using the dialectical method of cognition using special scientific methods. General scientific, historical-legal, formal-legal, theoretical-prognostic, and other methods were also applied. For example, the use of the method of historical-legal analysis allowed tracing the importance of mediation in ensuring the rule of law and developing partnerships in the interests of sustainable development. With the help of this method, such a development can be revealed, which allows one to supplement theoretical conclusions with historical facts testifying to the continuity of generations, the peculiarities of the development of mediation in modern society. The use of general scientific research methods (e.g., analysis, synthesis, induction, deduction, etc.) and the formal-legal method was important for analyzing legislative acts, opinions of scientists and researchers, and the formulation of conclusions and proposals. These methods helped us identify existing knowledge and ideas about the role and importance of mediation in ensuring the rule of law and developing partnerships. This step also allowed us to assess the feasibility and importance of mediation in ensuring the rule of law and developing partnerships in the interests of sustainable development.

3

Results

Russian and international experts note the successful implementation of most of the sustainable development goals by Russia. Russia shows good indicators in the following areas: • • • • •

Fighting hunger, poverty, and climate change; Providing quality education; Using advanced and clean energy sources; Promoting employment; Creating sustainable cities and settlements.

Simultaneously, a critical assessment of Russia was given on the following indicators:

Role and Importance of Mediation in Ensuring the Rule …

• Ensuring gender equality, access to health, well-being, and justice; • Building a peaceful society; • Combating inequality and low quality of life (Chernyadyeva, 2021). The UN noted that the sustainable development goals could be implemented only if there were strong global partnerships and cooperation. Many scholars emphasized the positive relationship between business and global sustainable development goals and proposed a constructive model for developing partnerships (Ordonez-Ponce et al., 2021). In this regard, the most critical and urgent tasks are as follows: • Achieving peace and harmony; • Establishing a constructive dialogue between all members of society; • Building a peace-loving society, consensus, and partnership. In the current period, most of the problems, contradictions, and conflicts existing in partnership relations can be resolved in civilized ways through negotiation, consensus, and mutually acceptable solutions, including mediation. In its current representation, mediation appeared in the middle of the twentieth century. This phenomenon originated in the states of Anglo-Saxon law of the USA, UK, Australia, and later European countries. The initial success of mediation is associated with its use in resolving family conflicts (Usmanova & Kurmaeva, 2021). Later, mediation began to be implemented in resolving conflicts in the commercial and public spheres. A principle has long been followed abroad that, existing in conditions of peace and harmony, a person has more significant potential in solving their own problems than in conditions of rivalry and conflict. Since the middle of the twentieth century, Western researchers have accumulated a considerable amount of practical and theoretical information in this area. The problems of conflict resolution in Russia were not studied until the 1990s because their absence under the socialist system was emphasized. Works devoted to conflict resolution, the art of negotiation, and disclosure of the conditions for effective interaction of partners in conflict situations began to appear much later. In general, the formation and development of the mediation procedure and its legislative consolidation took much time. Many difficulties arose, which is characteristic of any other process in which legal categories of primary importance are affected. In international practice, there are many examples of normative consolidation of mediation. Relevant acts have been adopted in the countries of North and South America, Asia, and Europe, including Russia. The European

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Commission has approved the Code of Conduct for Mediators. The EU has published several directives regulating the activities of mediators. In recent years, the development of mediation has been associated with the reform of the judicial process. Mediation is regarded as a more effective alternative to litigation. Though most of the mediation procedures are implemented within the country, there is a tendency to use mediation procedures to overcome international contradictions. This situation is partly due to the adoption of legislative acts in the European Union; it was reproduced in the EU Directive 2008/52. The preamble of the Directive states, “Mediation can provide a cost-effective and quick extrajudicial resolution of disputes in civil and commercial matters through processes tailored to the needs of the parties. Agreements resulting from mediation are more likely to be complied with voluntarily and are more likely to preserve an amicable and sustainable relationship between the parties. These benefits become even more pronounced in situations displaying cross-border elements” (European Parliament, 2008). In 2001, the International Union of Lawyers established the World Forum of Mediation Centers, which regularly gathers the most important commercial mediation centers and alternative dispute resolution centers from around the world to exchange views on the development of mediation and best practices. For an effective and quick conflict resolution at the national and international levels, it is necessary to have legally established institutions helping the parties reach an agreement and come to a mutually beneficial solution. Thus, in the national law of various countries, this activity is carried out by mediators and judicial conciliators, who are considered an alternative to the judicial process. With competent dialogue, the mediator or judicial mediator, using various communicative, psychological, and speech techniques, makes the parties analyze problems form an objective view of the situation, assess their capabilities, and come to a reconciliation. In the international sphere, when resolving contradictions and conflicts, such a conflict resolution function is performed by the UN, an organization with a special international status. This fully corresponds to the objectives of the UN activities, which include ensuring peace, harmony, and social and public stability. The primary advantage of the mediation procedure lies in the fact that it helps establish a favorable environment, eliminate existing differences between the parties to the conflict, coordinate the interests of all conflicting parties, and establish fruitful and creative partnerships. Thus, there is a significant potential of the mediation procedure that allows one to consider it as a mechanism for resolving contradictions and conflicts in society, as well as a way to establish constructive partnerships.

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To implement the mediation procedure, the parties must be ready for negotiations. The condition for not violating the agreement reached by the conflicting parties lies in its mutual benefit for the parties and the absence of other promising options for resolving the problem. Another significant advantage of mediation is the confidentiality of its conduct, which is particularly important in the field of entrepreneurship to preserve commercial, banking, or other secrets. The main distinctive feature of mediation is that mediators act as neutral parties in the conflict. They do not make decisions but only help the parties come to such a decision when none of them feel like a loser. The advantage of using the mediation procedure is that the conflicting parties are likely to be able to resolve the dispute on favorable terms. The importance of mediation in developing partnerships between the parties is explained by the fact that this procedure is informal and flexible. It allows one to maintain relationships between entrepreneurs, satisfy the interests of both parties, save financial resources and time, and reduce the risk of public disclosure of confidential information. The exercise of the powers of the subjects in mediation is based solely on the interests and needs of the parties in reaching an agreement. Simultaneously, the parties to the transactions may include the possibility of conducting a mediation procedure in corporate contracts and option agreements. There are some issues in the organization of the mediation procedure related to implementing the agreements reached and ensuring the effectiveness of the mediation agreement. Nevertheless, these problems are partly solved due to the voluntary participation of the parties in mediation and their interest in further cooperation. The role of the mediator in the mediation procedure implies a commitment to justice and a strategy for the peaceful settlement of the dispute. A practicing lawyer who participates in the mediation process should be theoretically and practically prepared to initiate and support negotiations that promote the reconciliation of the parties. The mediator should contribute to the implementation of the agreements reached, their sustainability, and effective compliance (Pietro, 2019). In the practical training of mediators, special attention should be paid to settling various social conflicts. The mediator should know judicial and non-judicial ways of settling disputes, study and apply non-violent ways of resolving conflicts (Ivanova et al., 2019).

4

Conclusion

In the context of globalization, the probability of conflicts and clashes in society increases many times. The key sustainable development goals aim to prevent and resolve

conflicts in the international community and develop constructive partnerships. In these circumstances, the practice of mediation has great potential, which helps the parties to the conflict to coordinate and implement their interests. A mediator can help save time and money and maintain good relations between partners, which is particularly important for continuing cooperation and long-term partnerships. Currently, the UN has the greatest potential in this context. This organization can be considered a kind of mediator in resolving international conflicts and contradictions.

References Chernyadyeva, N. A. (2021). Sustainable development goals as a factor in the development of international and national law. Ocean Management, 3(12), 19–23. Di Pietro, M. (2019). Mediation and efficacy in the extrajudicial protection of rights. Mediation in Argentina. Social Mediations, 18, 1–9. https://doi.org/10.5209/MESO.62338 European Parliament and of the Council of the European Union. (2008). Directive 2008/52/EC “On Certain Aspects of Mediation in civil and commercial matters” (May 21, 2008). Retrieved from https://eur-lex.europa.eu/eli/dir/2008/52/oj. Accessed October 3, 2021. Ivanova, E. V., Semenova, N. V., & Spiridonova, N. Y. (2019). Problems of legal education in the interests of sustainable development in modern conditions. Bulletin of the Chuvash State Pedagogical University, 5(105), 164–172. https://doi.org/10.26293/ chgpu.2019.105.5.025 Lisitsyn-Svetlanov, A. G., Malko, A. V., & Afanasyev, S. F. (2018). The rule of law as a factor of economic development. Bulletin of the Russian Academy of Sciences, 88(3), 242–250. https://doi.org/10. 7868/S0869587318030106 Macht, S., Chapman, R., & Fitzgerald, J. (2020). Management research and the United Nations sustainable development goals. Journal of Management & Organization, 26, 917–928. https://doi.org/10. 1017/jmo.2020.36 Malakhova, T. S. (2020). European practice in ensuring sustainable development: Problems and contradictions. International Journal of Economics and Business Administration, 8(1), 14–23. https://doi. org/10.35808/ijeba/499 Ordonez-Ponce, E., Clarke, A., & MacDonald, A. (2021). Business contributions to the sustainable development goals through community sustainability partnerships. Sustainability Accounting, Management and Policy Journal, 12(6), 1239–1267. https://doi.org/10. 1108/SAMPJ-03-2020-0068 Shurenkova, S. S. (2021). Prospects and significance of mediation in the international sphere within the framework of the UN. Retrieved from https://zakon.ru/blog/2021/7/2/perspektivy_i_znachenie_mediacii_ v_mezhdunarodnoj_sfere_v_ramkah_oon/. Accessed October 2, 2021. Usmanova, E. F., & Kurmaeva, N. A. (2021). Trends in developing family mediation in the Russian Federation and its constituent entities. Turismo: Estudos & Praticas, 1, 1–14. Retrieved from https://geplat.com/rtep/index.php/tourism/article/view/884/844. Accessed October 2, 2021.

Economic and Legal Foundations of Management and Control Over the Development of Nuclear and Thermonuclear Energy at the National and International Levels Damir R. Vakhitov , Elena A. Astrakhantseva , Regina R. Dolotina , Sergey A. Baryshev , and Riashidia N. Zainullina energy facilities, but also to provide information support, the development of international legislation that allows regulating the actions of participants, as well as to avoid conflicts between countries (as it is the case now), to accumulate the efforts of the world community and to give impetus to social -economic progress. The greatest potential, in our opinion, is possessed by nuclear power, the analysis of the problems and development prospects of which is the subject of this work, among the available and promising types of power generation.

Abstract

Energy has firmly and invariably occupied a fundamental place in the mechanism of functioning of modern civilization for many centuries, and further progress of mankind is unthinkable without an appropriate energy base, which should constantly increase. In any case, this concerns the current technological version of the development of civilization, because for other options for the existence of society—biological, informational or others, there is neither a fundamental base nor material conditions for their implementation in practice. Due to the fact that needs tend to grow faster than available opportunities (according to the economic law of increasing needs), the energy deficit that was observed in the past and takes place in the present is a logical consequence of the operation of this law. The triad of traditional power generation (thermal, hydro and nuclear power plants) is well known and comprehensively analyzed, which include several types of currently actively developing alternative sources of electricity generation: wind and solar installations, tidal stations, solar devices and others. Sharp discussions, in which politicians, scientists, and representatives of the public, as well as anyone interested, take the most active part thanks to the development of information communications are boiling over possible directions for the development of the energy sector. The current situation in the energy sphere of the planet is that one state, no matter how powerful it may be in economic terms, is unable to solve the problems of the global economy. It is required not only to pool efforts in financing expensive projects for the construction of new D. R. Vakhitov . R. R. Dolotina . S. A. Baryshev . R. N. Zainullina Kazan Branch of the Russian State University of Justice, Kazan, Russia D. R. Vakhitov . E. A. Astrakhantseva (&) Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected]

Keywords

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Nuclear power Renewable energy sources efficiency Ecology

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Economic

JEL Classification

F52

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N70

Introduction

Nuclear energy is quite young in comparison with thermal and hydroelectric power generation, but a certain negative background of public opinion has developed around it, the reasons for this are both real problems (the accidents in Chernobyl and Fukushima) and the policy of whipping up hysteria deliberately in the media in order to promote other methods of energy generation. Despite the constant progress in technology, thermal and hydroelectric power plants have a number of serious shortcomings, among which the most key ones, in our opinion, are the depletion of resources and the threat to the environment. The development, moreover, systematic and progressive, of civilization cannot be based on energy capacities that use constantly decreasing raw materials (hydrocarbons) or which are already practically fully utilized, and there is no growth potential (river energy).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_40

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The environmental damage to nature and the threat to the health of citizens associated with thermal power plants and hydroelectric power plants are described in such detail in the scientific literature that, in our opinion, it is unnecessary to dwell on this issue further. Therefore, the emergence of nuclear power technology (the version of water reactors won among many initial ideas) has become a lifesaver for many countries: the shortage of hydrocarbons and hydro resources posed a difficult dilemma—to build a power plant that will run on imported fuel, or to import electricity from abroad. The enthusiasm turned out to be too high, as is often the case with innovations, the energy sector developed at a rapid pace, ignoring important safety issues, so the disasters at the Chernobyl and Fukushima nuclear power plants had a knockout effect on the public and even on some scientists. In the wake of fear and panic that gripped the population, the governments of a number of countries decided to reduce the number of operating reactors or even completely abandon nuclear generation: this was done by Germany, Spain, Belgium. But such emotional, ill-considered decisions lead to mistakes, from which the damage to others is even greater. The announced transition to renewable energy sources (RES) simultaneously with the program for decommissioning nuclear reactors led to an increase in electricity production at thermal power plants, which, naturally, worsened the environmental situation, rather than improved it (Vakhitov & Zamaletdinov, 2015). In conditions of “information noise”, when the opinions of specialists in nuclear technologies literally dissolve in fierce and frenzied criticism from politicians, it is very difficult for ordinary people to identify verifiable or, on the contrary, unconfirmed arguments of supporters and opponents of nuclear generation. Emotion often dominates calculation and reasoning based on cost-effectiveness.

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Methodology

General scientific methods of cognition were used in the work: – induction: to ensure stable growth rates of nuclear power, it is necessary to consider both the advantages and disadvantages of this type of generation; – deduction: a hypothesis about the possibility of using leasing as an investment instrument for the development of nuclear power is formulated. The research is also based on private scientific methods: – statistical analysis: comparison and generalization of statistical data for different countries concerning the pace

of development of nuclear power, as well as the study of environmental problems of various types of generation, – formal legal method: analysis of legal documents regulating international relations in the field of nuclear technology.

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Results

The analysis of advantages and disadvantages shows an ambiguous picture in this industry. On the one hand, nuclear power plants have significant advantages over both traditional generations and alternative energy sources. In addition, the shortage of electricity in the world is only growing, while the needs of mankind are constantly increasing. However, the threat of accidents and the associated fears, sometimes turning into panic in society, lead to the fact that the arguments of reason give way to instincts. This serves as a serious barrier for long-term plans for the development of nuclear power, and even for operating reactors. However, construction of nuclear power plants continues, cumulative generation has grown from 15,510 GWh in 2000 to 26,730 GWh in 2019 (Konchev, 2012). That is, the growth was more than one and a half times, but the share of nuclear energy in the global balance over the same period decreased from 16.7% to 10.1%. The number of power units and their capacity are growing, but other types of generation are increasing their performance even faster. This is especially true for wind turbines and solar panels as part of the overall strategy of focusing on the “green economy”. Dozens of nuclear power plants operate throughout the world for a long time (30–40 years) without interruption and without accidents. During the same period, other types of generations of comparable power caused cumulative environmental damage, which not only exceeds the accidents at nuclear power plants, but also causes difficulties in assessing damage in value terms, as well as the complex impact on humans, nature and even space. Thus, the currently used traditional (thermal power plants, hydroelectric power plants) and alternative (wind and solar) power plants do not comply with strict environmental standards and cannot provide a balance between nature conservation and the further progress of mankind. The scale and complexity of the problems are such that it is not enough to make up for the damage, compliance with the delicate balance in the relationship between man and biocenosis, which has not yet been determined even at a theoretical level, must be ensured, not to mention the practical implementation of environmental policy. Consequently, the considered types of generations are not able to guarantee cardinal growth and a qualitative leap in

Economic and Legal Foundations of Management and Control Over …

the technological development of mankind, both in economic terms and from the point of view of environmental safety. Nuclear energy, despite the fact that there are also serious shortcomings, nevertheless, unlike other generations, has the required growth potential, especially if the realization of at least some of the promising technologies is obtained. However, serious barriers to the full-scale transition of the earth’s economy first to innovative nuclear generations, and then to thermonuclear power plants are: – firstly, the extremely high cost of project implementation (initial costs can be estimated at billions of dollars), – secondly, the highest technological complexity, which requires the involvement of scientists from different fields in solving scientific problems and creating collaborations of researchers. Let us add environmental problems that cannot be solved by an individual country alone, to this list, and the conclusion can be made only in one unique option—to unite efforts on an international platform. It is international cooperation that creates the necessary conditions for finding answers to those questions that cannot be resolved within the framework of national programs for the development of the nuclear industry (Vakhitov et al., 2020). An important and urgent issue is the development of new rules and norms of international law in those areas of nuclear energy, where, on the one hand, there is an impressive scientific backlog, and on the other hand, it requires the combined efforts of several countries or the entire world community, because financial and technological challenges cannot be overcome by one country alone. Such important directions in international law, in our opinion, are the following: (a) first of all, it is a continuation of work (and ideally, their acceleration) on the creation and launch of a commercial thermonuclear power plant. Existing agreements in the framework of the ITER project need to be finalized, taking into account the issues of joint or individual use of technology in the future, as well as possible actions on the part of countries that have not joined; (b) more distant, but necessary from the point of view of space expansion, is the conclusion of a new agreement on the use of nuclear facilities in airless space for interplanetary and interstellar flights. The conclusion of an international agreement on space in the middle of the twentieth century has contributed to progress in this area, but now requires a completely new document that will give impetus to the slightly slowed down space exploration. At the same time, the danger of using nuclear installations in near-earth orbit, as well as

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possible accidents in open space, must not be forgotten and underestimated. All these issues require legal interpretation; (c) the next promising area is the branch of nuclear medicine, where advances in the miniaturization of technical devices make it possible to implant medical devices into the human body. Impressive prospects for combating many diseases are opening up, but the question of human rights and personal freedom arises, which, in our opinion, makes it necessary not only to finalize the existing international instruments in this area, but also, possibly, to create a new branch of law. If we consider that nuclear medical technologies are not applied in isolation, but in combination, for example, with genetic developments, then the need for legal support for both a new branch of medicine and a new type of nuclear technology becomes paramount (Pozdeev et al., 2017).

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Discussion

In this regard, we will try to concretize those advantages and disadvantages inherent in nuclear power, which can be identified on the basis of an analysis of the accumulated operating experience for more than half a century on the territory of our planet. The main advantages of nuclear power are traditionally the following: (a) tons of carbon dioxide, the main culprit of climate change on the planet and air pollution in settlements, are not emitted into the atmosphere. In theory, nuclear power plants can even be erected within the city limits (this is especially true for promising low-power reactors), in contrast to plants operating on coal, fuel oil, gas, not to mention hydroelectric power plants, geographically located on rivers with a certain height difference; (b) in comparison with other sources of generation, especially alternative ones, the lowest cost of energy generation at the stage of operation is at nuclear power plants. But it is necessary to consider the cost of construction of the facility and disposal of spent nuclear fuel, but considering the long-term operation of the nuclear power plant, tariffs become very attractive for consumers (legal entities, population, government organizations and institutions). This is a strong argument in favor of putting new nuclear power plants into operation when it comes to an economy showing good GDP growth rates. It is no coincidence that such economic giants with developed industries as China, India,

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South Korea are leaders in the commissioning of new reactors. For 10 years, reactors with an aggregate capacity of over 35,000 MW were commissioned in China, 6800 MW in South Korea, and 1800 MW in India (Semikashev, 2020); (c) technologies have been worked out for decades, do not require additional costs, time wasted on constant retraining of personnel, which means that they can be quickly replicated. New, even revolutionary developments in nuclear power appear, but the basis is made up of time-tested, reliable technologies. This makes it possible to build nuclear power plants almost anywhere in the world, including where there is no possibility to build thermal power plants, hydroelectric power plants or plants of alternative types of generation. In addition to the listed advantages, which are confirmed by the years of operation of hundreds of nuclear power plants, there are also potential opportunities in the near future that make this type of generation attractive from the point of view of investing funds of investors, ensuring the stability of the state’s economic policy or solving global problems of civilization. The first option includes the important and, in some cases, the key role of the energy sector in the decarbonization process—the fight against CO2 emissions into the atmosphere. The second potential advantage of nuclear power, which is already partially realized at the present time, is the high level of manufacturability in this industry. Indeed, the technologies of construction, energy generation, utilization of waste raw materials and ensuring safety are among the most complex, requiring a high level of fundamental research and training. But they, on the other hand, create conditions for the creation of innovative products and the introduction of revolutionary developments in various fields. In the third advantage, nuclear power plays an important role not from the usual point of view of the source of energy generation, but for solving other problems of great national economic importance. For example, one of the global problems of mankind is the lack of fresh water, for some countries and regions the problem has come to the fore and even serves as a reason for the growth of political tension in interstate relations. An acute shortage of drinking water, not to mention the problems of hygiene (which directly affect the epidemiological situation), are experienced by about 780 million inhabitants of our planet (Semikashev, 2020) and the problem is only getting worse over the years. In conditions of a shortage or even absence of fresh water sources, only desalination of seawater is a way out of the situation at this level of technology development.

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However, such a number of advantages and potential opportunities are offset by a whole range of negative aspects associated with nuclear power. This imbalance of nuclear power plants will become the dominant form of electricity generation on the planet. First of all, let us consider the disadvantages that nuclear power has in comparison with other types of generation. Firstly, nuclear power plants have low competitiveness in a market economy due to the peculiarities of the technological cycle for generating electricity from nuclear reactors. Secondly, nuclear power is characterized by a whole range of problems associated with the construction and operation of power plants. Attention is drawn to the timing of the construction of power units and related infrastructure. The third, and currently acquiring crucial importance, factor is the negative attitude towards nuclear energy in the media. This negativity acquired such a scale that it went beyond journalistic articles or philistine conversations: it became an integral element in the programs of the political parties of the “green”, which in many countries not only received great support from the population, but also became the ruling force themselves. Nuclear energy poses a number of immediate threats that make the choice in its favor dubious, and in some cases even erroneous, along with three disadvantages, each of which has its own reasons. The first threat includes the risks of international cooperation in the framework of the construction and operation of nuclear power plants. The second threat is the sanctions and counter-sanctions policy, which has now taken on a truly global scale. Sanctions policy slows down the development of nuclear technologies, but also increases the likelihood of conflicts between countries, considering how complex and ambiguous the political situation in the world has become, despite the fact that economic, environmental, epidemiological and other problems have not disappeared anywhere (Astrakhantseva et al., 2016; Sadykov et al., 2015). The third threat at the top of this list is the risk of accidents at nuclear power plants. An accident at a nuclear power plant means that, with a high degree of probability, large areas need to be isolated from visiting due to the danger of finding living beings there (although it is very difficult to apply this restriction to representatives of the animal world), and thousands of people are forced to move to other regions. The solution of the problems of nuclear energy in the field of ecology, while observing the principles of self-sufficiency, is possible with the use of innovative developments, as well as investment instruments, which include leasing. It is the leasing financing scheme that has a number of advantages that make it possible to implement

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large-scale and capital-intensive projects, including in the markets of different countries (Vakhitov et al., 2019, p. 842).

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international contacts, which, in turn, will reduce the intensity of political confrontation that is currently observed in the world.

Conclusion References

Thus, the economic and environmental aspects of the current situation on the planet dictate the need for the accelerated development of nuclear thermonuclear energy in order to avoid a negative scenario of depression and degradation of the world economy. Among the existing and even promising developments, nuclear energy has the greatest potential for solving the problems of providing the planet with energy at a new level of consumption and within the framework of strict environmental standards, creating conditions for the progress of all sectors of the world economy, and most importantly, allowing to adequately respond to the challenges of today and the future. At the same time, it is necessary to understand that nuclear and thermonuclear power plants will not be the only type of energy generation, they will develop in conjunction with other types of generation, but, in our opinion, will become the main supplier of electricity for civilization. The complexity and financial capacity of nuclear reactors and engines is such that one should not hope for success without joining the efforts of several countries, and, in the long term, the entire world community. In connection with the above, it is required to develop an appropriate international legal framework that would prevent access to these technologies for persons posing a threat to humanity, while at the same time ensuring the implementation of the capabilities that a particular country possesses in this area. Successful implementation of projects in nuclear and thermonuclear energy will not only allow solving acute economic problems, but also create a platform for

Astrakhantseva, E. A., Aletkin, P. A., & Fakhretdinova, E. N. (2016). Statement of cash flows as information base for analysis of company's economic security. Social Sciences and Interdisciplinary Behavior. In 4th International Congress on Interdisciplinary Behavior and Social Science, ICIBSOS 2015, London (pp. 269– 272). Konchev, E. (2012). Thirst for peace: every 10th inhabitant of the planet cannot get drunk. www.rbc.ru/economics/22/03/2012/ 5703f4f89a7947ac81a6617c. Data accessed: September 20, 2021. Pozdeev, V. L., Azarskaja, M. A., Astrakhanceva, E. A., & Bezvidnaja, O. S. (2017). Balancing sales and safety: a methodological approach to economic security analysis of enterprises. Journal of Engineering and Applied Sciences, 19, 4974–4978. Sadykov, I. F., Aletkin, P. A., & Astrakhantseva, E. A. (2015). Compensation for loss of commodity value: theoretical and practical aspects. Asian Social Science, 11(11), 95–98. Semikashev, V. (2020). Nuclear energy: has the peak been passed or are there growth opportunities? www.energypolicy.ru/atomnayaenergetika-pik-projden-ili-est-vozmozhnosti-rosta/energetika/2020/ 18/16. Data accessed: September 20, 2021. Vakhitov, D. R., Samovich, Y. V., Grinevetskaya, T. N., Magdeeva, M. R., & Gusarova, L. V. (2019). Climate change influenced by technologies: legal, social and economic implications. International Journal of Recent Technology and Engineering, 2(8), 4667–4672. Vakhitov, D. R., Samovich, Y. V., Nurtdinov, I. I., Sharifullin, R. A., & Gumerov, L. A. (2020). International legal and domestic leasing regulation at the current stage of government administration implementation in the conditions of scientific and technological development. Revista Inclusiones, 3(5), 665–675. Vakhitov, D. R., & Zamaletdinov, A. (2015). Leasing as a factor of economic growth. Procedia economics and finance. In 2nd Global conference on business, economics, management and tourism (Vol. 23, pp. 839–845).

The Legal Nature and Features of a Syndicated Credit (Loan) Maxim A. Sidorenko , Taisiya N. Sidorenko , Andrey A. Zhukov , and Vera R. Averyanova

Abstract

JEL Classification

Syndicated credits are one of the main sources of financing of large public and private sector projects, for this reason, syndicated credits have become widespread in both international and Russian banking practice. The relevance of studying the legal nature of syndicated lending is due to the high need for adequate legal support of financial transactions for the successful regulation of the syndicated lending process. In this article, the authors analyze the legal nature and features of a syndicated credit (loan), identifying the content of legal relations of participants of a syndicated loan. Within the framework of this study, the essence of a syndicated loan is considered, in which the administration of the main issues in the syndicate is transferred to the authority of one person. Such a person is a lead manager, who is an integral party to the relationship under the syndicated loan agreement and an important component of the mechanism to coordinate creditors’ actions. It is concluded that the issues of coordination of participants’ actions within the syndicated loan can be established in the agreement and do not need legal regulation, since the level of rationality of syndicate participants is significantly higher than the level of rationality of bondholders.

K15

Keywords

. . . .

..

Syndicated credit Loan Collective actions Syndicate of creditors Lead manager Legal relations Subjective right

M. A. Sidorenko (&) Morgan Lewis International LLS, Moscow, Russia e-mail: [email protected] T. N. Sidorenko . A. A. Zhukov . V. R. Averyanova Russian University of Cooperation, Mytishchi, Russia

1

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K22

Introduction

When organizing a large-scale project, the need for debt financing could be significantly high. Frequently, one bank, even the leading one, is unable to meet the needs of the borrower single-handedly. In this case, a number of banks can unite into a group (syndicate) and provide the borrower with the necessary amount of credit funds. Syndicated lending is a method of financing in which many classic private law problems are accumulated. In particular, the participants of a syndicated loan face the problem of collective action. An essential characteristic of syndicated lending is that creditors are deprived of the opportunity to exercise part of their subjective rights and that the leading manager is empowered to represent the interests of the syndicate of creditors in legal relations associated with syndicated lending. The relevance of the work lies in the fact that to date no research has been conducted on the general issues of collective action and indirect collective exercise of civil rights. In the structure of syndicated lending, there is a problem of collective action related to the fact that, on the one hand, creditors are deprived of the opportunity to exercise part of their subjective rights, but on the other hand, they transfer certain rights to an intermediary (lead manager). The same problem exists in the context of the analysis of the legal powers of the representative of the bondholders and the collateral manager. In modern Russian reality, the topic of this study is becoming even more relevant: domestic entrepreneurs no longer carry out transactions in accordance with foreign law in such volumes as before, since foreign legal forms of financial instruments are actively included in our legislation.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_41

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So, on December 31, 2017, Federal Law No. 486-FZ “On Syndicated Credit (loan) and Amendments to Certain Legislative Acts of the Russian Federation” (hereinafter—the Law on Syndicated Credit) was adopted (2021), and the program “Project Finance Factory” was developed (2021). Moreover, currently there is an active introduction of changes in the current legal regulation of syndicated lending. Thus, on June 21, 2021, a number of provisions of Federal Law No. 447-FZ of 22.12.2020 “On amendments to the Federal law “On Syndicated Loans and Amendments to Certain Legislative Acts of the Russian Federation” and certain legislative acts of the Russian Federation” (2021) (hereinafter—Federal Law No. 447-FZ of 22.12.2020), aimed at improving the mechanisms of syndicated lending, including the development of lead manager institutions, came into force. The purpose of the study is to analyze the legal nature and features of a syndicated credit (loan), to identify the content of the legal relationship of a syndicated loan.

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Methodology

In the Russian legal doctrine, syndicated lending has not been the subject of extensive theoretical research until recently. The scientific works of Gravin (2014) and the dissertation research of Sapunkova (2008) should be highlighted on this issue. Popkova’s monograph “The Legal construction of a syndicated loan” is also a landmark work of recent works on this topic (2018). The topic of syndicated lending has been studied in detail in the economic works of domestic authors and in foreign literature. Syndicated lending is a mechanism for attracting large-scale debt financing and credit risk diversification. The essence of a syndicated loan is that the authority to manage the main issues in the syndicate is transferred to one person. Such a person is a lead manager, who is an integral party to the relationship under the syndicated loan agreement and an important component of the mechanism for coordinating the actions of creditors. Indirect exercise of a subjective right is expressed in representation, in which the right holder of a subjective right is a collective of persons who do not have the legal ability to exercise such a right due to legal (legislative) restrictions. The main purpose of representation office is the need to coordinate their actions.

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Rusults

A syndicated loan is a loan with a certain share of participation of at least two lenders and a borrower who, on the basis of a single credit documentation, conclude an

agreement on a syndicated loan on uniform terms; a special agent, usually a member of the syndicate, is responsible for servicing it. Various definitions of this mechanism can be found in the literature. Sapunkova in her definition emphasizes precisely the quantitative composition of creditors, otherwise indicates the type of classical loan obligation (Sapunkova, 2008). According to Popkova, it is necessary to consider the category of syndicated credit as an economic category, therefore the author’s term is defined as a “credit product” in the economic sense (2018). Gravin attempted to amend the Civil Code. According to his proposals, within the framework of a syndicated loan agreement, several banks undertake either to jointly provide funds (credit) to the borrower in the amount and on the terms stipulated in the loan agreement, or to participate jointly with the credit initiator bank in lending to the borrower in other ways (Gravin, 2014). In fact, attention was also focused on the quantitative composition of creditors in the loan relationship. Nevertheless, since February 2018, the Law on Syndicated Loans has come into force, which marked the beginning of a special legislative regulation of the provision of a loan to a borrower by several lenders within a single contractual structure. In accordance with federal legislation, several lenders (a syndicate of creditors) under a syndicated credit (loan) agreement undertake to provide the borrower with funds in a coordinated manner in the amount and terms stipulated by the agreement for each lender, and the borrower undertakes to return to creditors the money received, pay interest for the use of funds, as well as other payments, if the obligation to pay them is stipulated by the agreement. Popkova notes that the features of the syndicated loan agreement are in a single goal, namely, the organization of the loan and its provision to the borrower in a reimbursable, chargeable manner, while also emphasizing the consistency and interconnectedness of several types of relationships (Popkova, 2018). Agreeing with L. A. Popkova on the heterogeneity of relations regulated by the syndicated loan agreement, nevertheless, it seems possible to qualify this type of contract as a mixed one (clause 3 of Article 421 of the Civil Code of the Russian Federation), which was done by the legislator (part 4 of Article 2 of the Syndicated Loan Law). It is important to emphasize that the relations provided for by syndicated lending arise only as a result of their preliminary organization. Accordingly, it is possible to distinguish those relations that precede the conclusion of a syndicated loan agreement. They are built between the future borrower and the organizer, as well as between the organizer and potential creditors (future syndicate members). In addition, the development of turnover has led to the emergence of so-called secondary syndication. Secondary

The Legal Nature and Features of a Syndicated Credit (Loan)

syndication is a relationship formed through the assignment of the right of claim to the borrower or other economic participation. The example of foreign markets shows that it is the organization of secondary syndication that contributes to improving the efficiency of the syndicated lending market (Standard documentation in syndicated lending transactions. Association of Regional Banks “Russia”, 2012). The syndicated loan market was originally developed in London by several banks that had insufficient assets to independently serve large customers (Fight, 2004). One of the banks assumed the role of organizer, negotiated with banks willing to become participants in syndication, and thereby satisfied the financing needs of the debtor. This model of behavior has proved to be very convenient and widespread. Eventually, a certain standard structure for building relationships regarding syndicated loans was developed. Today, syndicated loans are a major part of banking services worldwide with major centers in London, New York and Hong Kong. They are usually used to finance large projects, for example, such as the Jorf Lasfar power plant in Morocco (one of the largest cases of syndicated lending). According to the Bloomberg news agency, as of 2019, the total volume of global syndicated loan transactions is 4.4 trillion US dollars for 8,164 transactions (Global Syndicated Loans League Tables, 2019). Loans are provided to professional turnover participants in almost all spheres of life that need to attract financing. These include the financial sector, industry, extraction of natural raw materials, innovative technologies, services, etc. External borrowings of the Russian banking system in the form of syndicated loans in 2019 amounted to 29,619 million US dollars (Ranking of syndicated loan organizers TOP30, 2019). The leadership belongs to Sberbank of Russia with a market share of 16.56% with a volume of 4905 million US dollars, followed by Gazprombank—10.71% (3171 million US dollars), ING Groep—6.1% (1808 million US dollars), UniCredit—4.8% (1420 million US dollars), etc. These statistical data show that the share of Russian banks is quite insignificant in the international market and needs to be stimulated. The national mega-regulator constantly conducts analytical research in the field of syndicated lending and focuses on the need to promote it. In particular, the Guidelines for the Development of the Russian financial market for 2016– 2018 explicitly state that this area is just beginning to develop in Russia. Despite the fact that the main task of adopting a special law has been completed, the Bank of Russia still considers the development of the syndicated lending segment one of its key tasks, which is recorded in the above-mentioned document (2016).

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The reasons for such unpopularity of this institution in Russia are very different. For example, the Civil Code of the RSFSR of 1922 did not even know the category of a loan agreement. Thus, the Civil Code of the RSFSR of 1922 considered a credit agreement as a preliminary agreement on the conclusion of a loan contract in the future (Shershenevich, 2005). Commercial lending was banned completely as a result of the credit reform of 1930–1932 for many years. All the current needs of enterprises for funds for the purchase of raw materials, materials, fuel, etc. were covered by planned loans provided only by the State Bank (Fleishits, 1956). All loans were of a targeted nature, and the goal was prescribed at the level of the State Bank’s credit plan and specified in the contract. The introduction of a loan agreement as an independent category appeared in the Civil Code of the RSFSR in 1964. There were no prerequisites for the formation of a syndicated loan. The first syndications started functioning in Russia from the end of 1995. Such terminology as “syndicated credits”, “syndicated loans”, “syndicated lending” began to be fixed in the regulatory framework (The Statement of the Government of the Russian Federation No., 1472p-P13, 2011). In 2011, the Coordinating Committee on Syndicated Lending carried out active work. Their main task was to prepare a standard syndicated loan agreement, subject to Russian law, on the basis of a standard loan agreement prepared by the Loan Market Association (LMA), as well as to develop and approve recommendations for its application. In the course of the organization’s activities, the Report “Standard Documentation in Syndicated Lending transactions” was discussed (2012). New provisions of the Civil Code of the Russian Federation came into force on July 1, 2014 (2021), which expanded the possibilities for structuring complex credit transactions. The Association of Regional Banks adapted the standard documentation of the Loan Market Association (LMA), which became a reference point for the subsequent developments of other potential participants wishing to enter into a syndicated loan. The Loan Market Association (LMA) is an association of participants in European credit markets (banks, law firms, etc.), established in 1996 with the aim of “providing greater transparency, efficiency, and liquidity” to European credit markets. The LMA first published the recommended syndicated loan agreement form in 1996 (updates were made in 2003), which now serves as the basis for most international loans. For example, Islamic banking is a way of conducting and structuring banking transactions in accordance with the religious rules of Islam. The expansion and sophistication of Islamic markets, as well as an increase in demand for Islamic financial products by borrowers, stimulated the movement towards Islamization of various aspects of economic activity in these markets. This

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movement led to the creation of an Islamic financial market alongside traditional financial markets. Members of the Association acquire a number of advantages of participating in the organization, including the opportunity to use an extensive library of recommended documentation forms, timely exchange of opinions and disseminate updated information, which contributes to more effective management of loan portfolios. Moreover, this situation does not at all imply that absolutely all the provisions of the contract are detailed in the standard documentation, there are also those that are not presented at all (for example, financial covenants and a significant change in circumstances), and some provisions should be discussed exclusively on an individual basis (Wright, 2006). All provisions are divided into “hard”, which do not require adjustments and generally work by default, and “soft” as a starting point for negotiations (assurances, preconditions, cases of non-fulfillment, etc.). The standard forms of the Loan Markets Association relate to the usages of civil turnover. In syndicated lending, funded sub-participation is also actively used, which implies legal relations in which not only the risks of non-profit, but also the risks of non-return of investments are distributed between its parties. When such risks exist, neither party, as a general rule, can expect to receive interest or commission from the other party. In legal systems where the principle of freedom of contract is much wider, such agreements do not have the legal consolidation as a special contractual arrangement, but not questioned by the courts (such agreements recognized by the legal systems of Great Britain, the Netherlands, Germany, France, etc.). Such a legal structure meets the needs of the market. Its application will enable the parties to the agreement, acting at their own risk in the hope of receiving income from financing to the borrower, to also distribute the risks of non-repayment of funds by the borrower. Russia has adopted the Federal Law on Syndicated Loans, according to which article 10 proposes a number of both mandatory and default dispositive rules governing the relations of the parties to the agreement.

4

Conclusion

The Federal Law on Syndicated Loans, which came into force in Russia in February 2018, initiated special regulation of the provision of credit to a borrower by several lenders within a single contractual structure at the level of the law. The syndicated loan agreement is mixed. Syndicated lending is a mechanism for attracting large-scale debt financing and credit risk diversification. This legal form includes a wide range of legal relations between the participants and involves

the transfer to one person (the lead manager) of authority to manage the main issues in the syndicate. Along with the lead manager, a similar institution of a representative of bondholders in bond loans is used in Russian practice, which, despite both the specifics of its regulation and the specifics of interests of creditors in bond loans, often performs similar functions of a lead manager. Institutions of a lead manager and a representative of bondholders are a form of indirect exercise of the subjective right of a collective of creditors in loan relations. Indirect exercise of a subjective right is expressed in representation, in which the right holder of a subjective right is a collective of persons who do not have the legal ability to exercise such a right due to legal (legislative) restrictions. The main purpose of representation office is the need to coordinate their actions. The coordination of the actions of the participants of the syndicate of creditors can be established in the contract and does not need legislative regulation, since the level of rationality of the participants of the syndicate is significantly higher than the level of rationality of the bondholders. Intermediaries of the syndicate of creditors do not have broad discretion and can be largely controlled by the participants of the syndicate of creditors. One of the main problems of the previous legislation is the problem of the inconvenience of constantly reissuing records in the loan register, which should reflect all creditors, was solved by the Law on Syndicated Loan only partially, with respect to the pledge of movable property and securities: in the registers fixing encumbrances placed on these objects, only the collateral manager can appear. As for real estate and shares in LLC, it is still necessary to record in the register of all creditors-mortgagees. If a syndicated loan transaction provides for a surety or an independent guarantee, then in these cases the lead manager plays an important role, which should be explicitly stipulated in the credit documentation.

References Federal Law No. 486-FZ of 31.12.2017. On Syndicated Credit (loan) and Amendments to Certain Legislative Acts of the Russian Federation. http://www.consultant.ru/document/cons_doc_LAW_ 286745/ (Data accessed: May 05, 2021). Federal Law No. 367-FZ of 21.12.2013. On Amendments to Part One of the Civil Code of the Russian Federation and the Invalidation of Certain Legislative Acts (Provisions of Legislative Acts) of the Russian Federation. http://www.consultant.ru/document/cons_doc_ LAW_156000/ (Data accessed: May 05, 2021). Federal law of 22.12.2020 No. 447-FZ. On amendments to the Federal law “On Syndicated Loans and Amendments to Certain Legislative Acts of the Russian Federation” and certain legislative acts of the Russian Federation”. Collection of Legislation of the Russian Federation, N 52, December 28, 2020 (Part I), art. 8593. Publishing

The Legal Nature and Features of a Syndicated Credit (Loan) house Legal literature. http://www.jurizdat.ru/editions/official/lcrf/ archive/2020/52_1.htm (Data accessed: May 05, 2021). Fight, A. (2004). Syndicated lending: Essential capital markets. Butterworth-Heinemann. Fleishits, E. A. (1956). Legal relations in payments and loans. Gosyurizdat. Global Syndicated Loans League Tables. (2019). Bloomberg—2019. https://data.bloomberglp.com/professional/sites/10/BloombergGlobal-Syndicated-Loans-League-tables-FY-2019.pdf (Data accessed: May 05, 2021). Gravin, D. I. (2014). Loan agreement on English and Russian law. Infotropik Media. Guidelines for the development of the Russian financial market in 2016–2018. (2016). Approved by the Board of Directors of the Bank of Russia on May 26, 2016. The Central Bank of the Russian Federation. https://www.cbr.ru/finmarkets/files/development/onrfr_ 2016-18.pdf (Data accessed: May 05, 2021). Popkova, L. A. (2018). The legal construction of a syndicated loan. Prospect. Ranking of syndicated loan organizers TOP30. (2019). CBONDS LOANS. http://loans.cbonds.info/rankings/volume/ 303#cis (Data accessed: May 05, 2021). Resolution of the Government of the Russian Federation of 15.02.2018 No. 158 “About the “Project Financing Factory Program” (together

217 with the “Rules for Granting Subsidies from the Federal Budget in the Form of Property Contributions of the Russian Federation to the State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” for reimbursement of expenses in connection with the provision of loans and loans within the framework of the “Project Finance Factory” mechanism)”. https:// www.garant.ru/products/ipo/prime/doc/71781806/ (Data accessed: May 05, 2021). Sapunkova, A. I. (2008). Legal regulation of syndicated lending in international commercial turnover. Doct Diss. Shershenevich, G. F. (2005). Textbook of Russian Civil Law (Vol. 2). Statute. Standard documentation in syndicated lending transactions. Association of Regional Banks “Russia” (2012). https://data.cbonds.info/ publication/asros.pdf (Data accessed: May 05, 2021). The Statement of the Government of the Russian Federation No. 1472p-P13, the Bank of Russia No. 01-001/1280 dated 5 April 2011 “On the strategy of development of the banking sector of the Russian Federation for the period up to 2015”. https://legalacts.ru/ doc/zajavlenie-pravitelstva-rf-n-1472p-p13-banka-rossii/ (Data accessed: May 05, 2021). Wright, S. (2006). International loan documentation. Palgrave Macmillan.

The Cooperative Movement in Russia at the Turn of the XIX–XX Centuries: A Historical Retrospective Elizaveta M. Mikhailova , Valery V. Andreev , Marina N. Grigorieva , Leonid A. Taimasov , and Elena K. Mineeva

the XIX–XX centuries traced a significant historical path, from the process of its formation in the form of separate structures to organized forms of mass movement with a developed system of economic and social activities and the development of cooperative legislation. Originality/ value A comprehensive review of the process of formation of the cooperative movement at the turn of the XIX– XX centuries allows us to highlight the problematic aspects of its development in the conditions of modernization processes in Russia. The results of the study are of practical value in making managerial decisions in the field of cooperation and diversification of its forms of activity in various countries.

Abstract

Purpose The purpose of the article is to consider the problematic aspects of the origins and features of the formation of the cooperative movement in Russia at the turn of the XIX–XX centuries in the socio-cultural and political context. Design/methodology/approach Today, cooperation is one of the forms of economic and social organization of social groups and civil society as a whole. Historical and retrospective analysis of the formation of the Russian cooperative movement is in demand in terms of practical experience in implementing cooperative ideals. The principles of such approaches as objective, systemic, historical and social, which allow us to consider the process of formation of the cooperative movement in Russia through the prism of a whole complex of all factors influencing this process, are the methodological principles of the study. The main stages of the formation of the cooperative movement in Russia during the period under review are studied. The features of the establishment of cooperative institutions in the context of socio-political transformations in the second half of the XIX–XX centuries are analyzed, the main directions and forms of cooperative associations of this period are investigated. Findings Russian cooperation at the turn of E. M. Mikhailova (&) . V. V. Andreev . M. N. Grigorieva . L. A. Taimasov Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] V. V. Andreev e-mail: [email protected] M. N. Grigorieva e-mail: [email protected] L. A. Taimasov e-mail: [email protected] E. K. Mineeva Chuvash State University Named After I.N. Ulyanov, Cheboksary, Russia

Keywords

..

. . .

Cooperation Cooperative movement Consumer cooperation Credit cooperation Russia The turn of the XIX–XX centuries JEL Classification

B2

1

. . . B3

B15

B52

Introduction

The cooperative movement at the present stage is a mass socio-economic movement aimed at satisfying the economic and material needs and interests of the members of the cooperative. Cooperation plays a special role during periods of socio-political and economic transformations accompanied by the expansion of the boundaries of civil society. At the present stage of the formation and establishment of a liberal market economy and in the context of the formation of the economic independence of society, cooperative ideas and their historical practice are once again the subject of particular attention. Therefore, there is an increasing interest

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_42

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in the cooperative movement in our country and abroad, in its history and value framework, the peculiarities of its formation and development, especially in critical historical epochs.

2

Methodology

Retrospective, historical-genetic and problem-chronological methods were used to reveal the problems, helping to trace the formation and development of cooperative structures in the movement, to highlight the problematic aspects of this process. The statistical method allows us to determine the process of quantitative and qualitative development of cooperation. The study was based on the analysis of archival materials (National Archive of the Republic of Tatarstan, 2101; Russian State Historical Archive, 2021), the works of theorists and practitioners of cooperation (Prokopovich, 1913), decisions of cooperative congresses (Proceedings of the First All-Russian Congress of Workers on Small Loans & Agricultural Cooperation in St, 1912; Reports & Resolutions, 1913; The first All-Russian Congress of representatives of cooperative institutions, 1908), historical sources of famous researchers of Russian cooperation: Mikhailova (2007), Merkulov (1919), Vakhitov (2009), Korelin (2009), Tkach (2005), Fain (2002), Sakharova and Kotov (2005), Dudarev (1997), etc.

3

Discussion

The study of the process of formation of the cooperative movement allows us to dispel the view about the backwardness of Russian cooperation and conclude that its formation is rather rapid in the context of liberal modernization.

4

Results

The starting point for the creation of cooperatives in Russia was 1831, when a group of Decembrists who were serving their sentences in Siberia adopted the charter of the Big Artel. The artel created by the Decembrists in Chita became an aid society. The following year, the so-called Small Artel was created, which became a mutual self-help organization with the function of a loan-saving partnership. The aim of the artel, this first consumer cooperative, was to “satisfy the personal needs” of its participants on the principles of self-government and voluntary participation. The management and control bodies of the artel were to function on the basis of democratic elections (Bartenev, 1872, pp. 149–161). The Big Artel became a pioneer in the process of establishing cooperative societies in Russia. Originally established as an association for survival in difficult conditions of

exile, it laid the foundation for its activities traditional semi-cooperative forms of mutual assistance inherent in Russian society. The bourgeois-liberal reforms of the 60s of the XIX century opened up new opportunities for the manifestation of the desire for economic partnership inherent in a person. In the conditions of the formation of civil society, such associations began to be created, which can be attributed to the first cooperatives. In April 1864, a public shop was opened at the already mentioned Petrovsky factory by the Decembrist I. Gorbachevsky and the volost chief A. Pershin to fight the presumptuous local merchants. Having purchased cattle from the local population, the cooperative society set retail prices for meat lower than those of private traders, and forced them out of the market. As some researchers note, it was “the first independent workers’ cooperative in Russia” (Vakhitov, 2009, p. 135). At the end of the same year, another consumer society appeared at the Stroganov plant in the village of Kyn, the Perm province. In addition, in order to fight the high cost of goods from private owners, a group of employees pooled their money and bought tea and sugar. Three years later, in 1867, the consumer society opened a shop. In 1870, the charter of the Kynovsky Consumer Society was approved, and soon a second shop was opened. At the same time, all-estates and peasant consumer societies also began to be created. In particular, in 1865, the cooperative association Thrift was created in St. Petersburg, which used a discount system. It also opens a public shop. By 1868, this cooperative had 2,300 shareholders (Vakhitov, 2009, p. 137). One of the first credit cooperatives was a loansaving partnership established in October 1865 in the village of Dorovatovo in the Rozhdestvensky volost (territory) of the Vetluzhsky Uyezd (territorial administrative unit) of the Kostroma province. It was organized by the brothers V. F. Luginin and S. F. Luginin, who were known for their liberal opinions. Having studied the experience of cooperation in Europe, the brothers began to implement cooperative ideas in their estate. At first, it was quite difficult to deal with the shares, but by the next year of activity, the members of the cooperative invested the received profit in the turnover of the partnership (Korelin, 2009, p. 26). The turning point in favor of cooperation in public mood began in 1867–1868 against the background of acute food shortages caused by lean years. Since that time, a number of consumer, credit and production cooperative associations, labor, commercial and other artels had been created. In 1868, two all-Russian consumer societies emerged in Moscow. Then similar ones began to appear in other cities, in particular, in Penza, Saratov, Ryazan, etc. In 1869, the first rural consumer society appeared in the village of Ust-Medveditskaya, but it did not last long. A year later, in

The Cooperative Movement in Russia at the Turn of the XIX–XX Centuries: A Historical Retrospective

1870, in the village of Oshta, the Olonets province, the consumer society Mutual Benefit was created (Vakhitov, 2009, pp. 137–138). If we consider in quantitative terms, there is one legal consumer society in 1865, 7 in 1867, 23 and 22 in 1868 and 1869, respectively (Merkulov, 1919, pp. 34–35). The Moscow Society of Agricultural Ownership (MOSH) had a significant impact on the progress in the development of cooperation. Starting from the 60s of the XIX century, at the meetings of the MOSH, the issues of village reconstruction, the creation of mutual aid societies on proactionary principles were discussed (Dudarev, 1997). On his initiative, the All–Russian Congress of Rural Owners was convened on December 21, 1870 to January 3, 1871. For the first time, the problems of Russian cooperation have already been openly and publicly discussed (Korelin 2009, p. 25). The Congress decided to popularize the ideas and practices of cooperation among the general population, artisans and peasantry, and appealed to zemstvos (elective district counsils in pre-revolutionary Russia) and private individuals to provide all possible assistance in this regard. To begin with, the Congress recognized loan-saving partnerships as the most convenient form of cooperative societies. In 1870, the Committee on Rural Savings and Loan Associations and its St. Petersburg brunch were created within the Moscow Society Agricultural Ownership, which was entrusted with the task of developing principles of scientific, theoretical and organizational assistance to credit societies. The department turned into a kind of intellectual club, which included well-known public figures and played a major role in the formation of the Russian cooperative movement. In order to draw attention to the problem of cooperation, representatives of the St. Petersburg branch spoke at meetings of intellectual societies and salons, including The Free Economic Society, the Russian Geographical Society, as well as in city councils and zemstvo assemblies. Russian cooperators, recognizing the general principles of the cooperative movement—mutual assistance, independence, democracy, general availability, proactivity, etc., believed that they correlated with the communal traditions of the Russian village (Nikitina, 2015), with her custom to unite in artels. At the same time, they noted with sorrow such aspects of it as the lack of material resources in the village, the low level of education and life of the population, the transformation of some cooperative structures into private ones (Cooperation, 1991, pp. 30–31). The preparation of the theoretical, organizational and methodological basis of cooperation achieved some success. The St. Petersburg branch of the Committee, as a working body and in fact a cooperative center, collected information about existing cooperatives, popularized and promoted cooperative ideas and values through publishing, participated in the development of cooperative charters. He was

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also entrusted with the task of preparing a standard (normal) charter. It was based on the charter of the already mentioned Rozhdestvensky rural loan-saving partnership and the charter of the loan and savings bank of Fellin, Livonia province (Korelin, 2009, p. 34). On June 19, 1871, the “normal” charter of the loan-saving partnership was approved, which, with minor changes, was in effect almost until the end of the XIX century. At this time, there is an increase in the number of cooperatives. According to statistics, in 1871–1899, the government authorized 966 savings and loan partnerships and unions. Almost half of them received a zemstvo loan (Korelin, 2009, p. 39). In 1876, the St. Petersburg branch of the Committee was awarded the medal “for facilitating the establishment of 500 savings and loan partnerships over four years” at the Brussels Cooperative Congress for its active work (Korelin, 2009, p. 39). The branch had an agreement with the State Bank on lending to savings and loan partnerships. However, in the second half of the 80s of the XIX century, a decline began in Russian cooperation, the reasons for which were the influence of the counter-reformation policy of the government and shortcomings in the organizational and financial support of cooperatives. In the early 1990s, 220 of the authorized 1494 partnerships were not opened, 550 were liquidated (Highest Commandment, 1893, p. 179). Consumer cooperatives also developed slowly. The lean years of 1891–1892 and the deterioration of the social conditions of the people due to the rapid development of capitalist relations served as an impetus to the growing conviction among the cooperators of the need to overcome the decline in the development of cooperation. During these years, consumer cooperatives began to open actively. If from 1883 to 1887, on average, about 10–14 charters of consumer societies were approved per year, then for 1892–1899 this number ranged from 53 to 93 (Merkulov, 1919, pp. 34–35). In 1891–1900, 637 charters of consumer cooperatives were approved, that is, on average it amounted to 64 charters per year. Rural consumer societies also developed. For example, in 1900, 19 charters of manufacturing and railway consumer cooperatives and 47 of agricultural ones were approved (Sakharova and Kotov, 2005, pp. 205–207). The beginnings of the cooperative movement began to appear in national regions, especially since the traditions of multinational regions largely corresponded to cooperative ideas (Nikitina, 2015). In 1893, the consumer society of Alatyr railway workshops was formed in the Chuvash region. In 1897 a consumer society was opened in the county town of Tsivilsk in the same region (Lebedev 1957, p. 39). Socio-economic and political factors of the modernization of the country at the turn of the XIX–XX centuries determined the growing interest in cooperation, brought to the fore the task of forming the regulatory and legislative

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framework of the cooperative movement. In general, there was also a turn of the state towards cooperation. The result of long discussions between the progressive public and the state was the approval on June 1, 1895 of the “Regulations on Small Credit Institutions”. The consequence of its implementation was a noticeable increase in the number of credit cooperatives. By October 1, 1903 936 savings and loan and 340 credit partnerships had been registered (Korelin, 2009, p. 73). However, the growth rates of Russian cooperatives lagged behind Western European ones. The Ministry of Finance stated that there was one cooperative for every 51 thousand Russians, while in Italy—for 27.5 inhabitants, in Germany and Austria-Hungary—for 4.8 thousand and 8.8 thousand inhabitants, respectively (Russian State Historical Archive, 2021, L. 5–8). Back in the 70s of the XIX century, the question of convening a congress to develop general principles for the organization of the union of consumer societies was raised, but the authorities did not allow the congress. In the 1890s, this topic became popular again. In 1896, as part of the fair held in Nizhny Novgorod, a trade and industrial congress was held. The IV department of this Congress held a meeting of Russian cooperators representing 28 consumer societies and 5 cooperative organizations (Vakhitov, 2009, pp. 144–145). The congress, which worked from August 4 to August 17, 1896, discussed various projects: regulations on small credit unions, on the society of consumers and manufacturing partnerships. The government has also changed its attitude towards cooperators. The result of the joint work of the cooperators and the state was the approval on May 13, 1897 of the “normal” charter of the consumer society, which facilitated the development of charters to cooperators. In the context of the decisions of this congress, work began on the creation of the Union of Consumer Societies. The Economic Society of Officers and the Moscow Society of Consumers “Mutual Benefit” took on themselves the organizational initiative in this matter. On September 23–24, 1898, the constituent assembly of the commissioners of the Moscow Union of Consumer Societies (MSPO) was held. Its purpose was to coordinate relations between consumer societies. The next important step in the development of the cooperative movement in Russia was the convening of a congress of cooperators, designed to overcome the fragmentation of credit cooperation. On March 26–29, 1898, the first All-Russian Congress of Representatives of Savings and Loan Associations was held in Moscow. 350 people participated in the congress. The main subjects of discussion of the congress were the issues of small-scale lending to the village and the organization of loan-saving partnerships for this purpose as the most appropriate and expedient form. These cooperative forums, as well as other congresses that raised questions about cooperation to one degree or

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another, in particular, the Agronomic Congress held on February 10–19, 1901, reflected the general state of cooperation in Russia. They identified the problematic aspects of the cooperative movement, identified ways to resolve them. The two coordinating consumer societies of the center—the Moscow Union of Consumer Societies and the Permanent Commission for Consumer Societies at the St. Petersburg branch—generally worked in the same direction of expanding organizational forms and updating the principles and values of cooperation. Prominent public figures, generally recognized theorists of cooperation M. I. Tugan-Baranovsky, S. N. Prokopovich, M. L. Heisin participated in the work of these centers, who defended the idea of cooperation as a way of development to a just ideal of society. The revolution of 1905–1907 caused the rise of socio-political life in the country. Socio-political activity also spread to cooperatives. Along with the quantitative growth of cooperation in these years, there was a qualitative movement within the cooperatives themselves, changes in their social base. As historians say, this was the time when cooperation became really popular. This especially affected consumer cooperation, which in these years acquired an all-estates and mass character (Fain, 2002, p. 221). If from 1900 to 1905 from 106 to 200 consumer societies were created annually, then in 1906 410 societies were approved, and in 1907–1048, reaching 1589 by 1913 (Merkulov, 1919, pp. 34–45). There was an increase in the number of loan-saving partnerships. During the five-year period of 1896–1900, 130 savings and loan companies were opened; during the four years of the beginning of the XX century, from 1901 to 1904, their number amounted to 240 (Prokopovich, 1913, p. 164). This trend has actively affected provinces (Purnov, 1998) and national regions, although the authorities, fearing the politicization of cooperatives, often created obstacles in their way. For example, in 1901, the issue of opening a consumer society in the village of Vyl-Bazar of the Yadrinsky district of the Kazan province was under consideration. But eventually, the society had never been opened due to the position of the local authorities. At the same time, already in 1904, officials allowed the opening of a consumer society in the village of Malye Yalchiki of the Tetyushsky district of the same province (National Archive of the Republic of Tatarstan , 2021, pp. 136–138; Rozhnov, 2010, pp. 114–115). The areas of activity of cooperative organizations became more diverse, cooperative shops gained popularity (Fain 2002, pp. 123–165). In the context of the revival of public life, cooperative ideas have acquired a new sound. A number of congresses of cooperative organizations were held in the regions, in particular, in November 1904 in Saratov, in February 1905—in the Samara province, at which pressing issues of economic

The Cooperative Movement in Russia at the Turn of the XIX–XX Centuries: A Historical Retrospective

activity of cooperatives were linked to political problems. Increasingly, there were proposals to convene an All-Russian Congress on Small Credit and Cooperative Entrepreneurship. However, during the period of revolutionary activity, the authorities did not allow such a forum to be held. In the context of the Stolypin agrarian reform, the issue of cooperative construction had put back on the agenda. In 1907–1908, regional meetings of cooperators were held in a number of cities—in Nizhny Novgorod, Saratov, Kiev, Odessa, St. Petersburg and other places, which emphasized the need to resolve the problems facing cooperators at the all-Russian forum. The problems of cooperation were beginning to rise more and more actively at political forums, cooperative societies were opening under political parties (Mikhailova, 2002, pp. 171–178; 9, p. 131). At the end of 1907, authorities finally allowed to hold the forum. On April 16–21, 1908, the first All-Russian Cooperative Congress was held in Moscow, which was attended by 834 people who represented consumer societies, credit and loan-saving partnerships, agricultural societies, manufacturing and labor artels. The well-known economist A. S. Posnikov was elected Chairman of the Congress, his comrades were S. A. Kablukov, S. N. Prokopovich, S. F. Wojciechowski, A. A. Beretti (Korelin, 2009, p. 147). Among the specially invited were members of the MOSH, MSPO, the St. Petersburg branch of the Committee, Free Economic Society, representatives of zemstvos. A significant part of the forum was made up of workers and peasants, which testified to a new stage of the Russian cooperative movement. The work of the congress was held in four sections, reflecting the main representations of the cooperation. The Congress discussed the most significant issues of cooperative movement—the basic principles of consumer societies, issues of cooperative practice, profit of societies and forms of their use, the level of prices for goods sold, rational use of free capital, the creation of a small loan bank, agronomic assistance to agricultural cooperatives, remuneration of members of executive bodies of cooperatives, etc. (The first All-Russian Congress of representatives of cooperative institutions, 1908). The speakers were unanimous in the need to unite cooperative societies. However, the political notes sounded in the speakers’ speeches aroused the fears of the Moscow authorities, who forbade the announcement of sectional resolutions on the unification of cooperative organizations and the creation of a single central body. The first All-Russian Congress ended in a conflict with the authorities, which played a big role in moving the problem of creating a union of cooperative institutions into a practical plane. An active process of their unification began in the regions. In August 1908, the Kiev Union of Consumer

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Societies was formed. Soon similar unions arise in Warsaw, St. Petersburg. Urgent for Russian cooperation was the issue of general cooperative legislation. This problem was the main subject of discussion at the All-Russian Congress on Small Loans (where consumer cooperatives were not allowed to participate), held on March 11–16, 1912 in St. Petersburg under the chairmanship of P. N. Isakov, and the second All-Russian Congress of cooperatives in August 1913 in Kiev, chaired by D. F. Geiden. Up to 700 representatives of credit cooperatives, agricultural societies, partnerships and artels arrived at the congress of workers on small loans (Korelin, 2009, p. 265). 1360 delegates from 1006 different cooperatives have already participated in the second All-Russian Congress (Korelin, 2009, p. 269; 21). The result of the work of the congresses was the preparation of a document on cooperative legislation, which was submitted to the State Duma (Proceedings of the First All-Russian Congress, 1912; 21). By the way, its foundations were included in the Regulation “On Cooperative partnerships and their unions” of March 20, 1917. In 1912, the Moscow People’s Bank was opened, which was entrusted with lending to cooperatives. This has become a fundamentally new phenomenon in the design of the Russian cooperative movement. The number of cooperatives grew rapidly. In general, by 1914 there were already more than 30 thousand cooperatives in Russia (Seliverstov, 2000, pp. 37–38; Tkach, 2005, p. 64). By 1917, the number of cooperative associations had increased to 63–64 thousand, covering almost half of the country’s population (Korelin, 2009, p. 366).

5

Conclusion

Thus, having begun in the first half of the XIX century with a small artel created by the exiled Decembrists for the survival, cooperative societies in the second half of the XIX century grew into independent consumer economic units and savings and loan partnerships that had the purpose of socio-economic protection of their members. Based on traditional forms of association and assistance, by the end of the XIX—beginning of the XX centuries, cooperative organizations turned into organized structures, implementing in practice cooperative values of mutual assistance. At the beginning of the XX century cooperation gained a wide scope, forming into a mass movement, holding All-Russian congresses, achieving success in economic and entrepreneurial activities, expanding the forms and directions of its work and preparing the foundations of general cooperative legislation. During this period, having passed a complex

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period of establishment from individual societies to broad associations, from elite to all-estates and mass ones, cooperative structures in practice became organizations for realizing the economic potential of the common man and protecting his interests.

References Cooperation. (1991). Pages of history: Collection of articles. Institute of Economics. Dudarev, M. I. (1997). Moscow society of agriculture in the social and cooperative movement (1895–1908). Extended abstract of candidate’s thesis. Institute of Russian History. Fain, L. E. (2002). Russian cooperation: A historical and theoretical essay. 1861–1930. Ivanovo State University. Journal of the Commission for the Revision of the Charter of the State Bank established on the basis of the Highest Commandment. (1893). St. Petersburg. Korelin, A. P.: Cooperation and the cooperative movement in Russia. 1860–1917. Russian Political Encyclopedia (2009). Lebedev, P. L. (1957). The development of consumer cooperation and its role in the socialist transformation of Chuvashia. Questions of the socialist economy of the Chuvash ASSR. Scientific notes of the Research Institute of Language, Literature, History and Economics under the Council of Ministers of the Chuvash ASSR. Cheboksary, Chuvashgosizdat, XVII. Merkulov, A. V. (1919). A historical sketch of consumer cooperation in Russia (3rd ed.). All-Russian Central Union of Consumer Societies. Mikhailova, E. M. (2002). Right-wing Parties and Organizations in the Volga region: Ideological concepts and organizational structure (1905–1917). MIROS. Mikhailova, E. M. (2007). The right-monarchist movement in the Volga region in 1905–1917. Russian History, 1, 126–134. National Archive of the Republic of Tatarstan. F. 1. Op. 4. D. 366; D. 2101. https://ga.tatarstan.ru/dokumenti.htm (Data accessed: October .15, 2021). Nikitina, E. V. (2015). The specifics of the mentalities of the peoples of the Volga region and the Urals (Tatars, Bashkirs, Chuvash,

E. M. Mikhailova et al. Mordvins, Udmurts, Mari). Publishing House of Chuvash University. Prokopovich, S. N. (1913). The cooperative movement in Russia, its theory and practice. M. & S. Sabashnikov. Proceedings of the first All-Russian congress of workers on small loans and agricultural cooperation in St. Petersburg on March 11–16, 1912 (1912). St. Petersburg, St. Petersburg branch of the Committee on Rural Savings and Loan and Industrial Partnerships. Purnov, V. G. (1998). Peasant cooperation in Russia of the late XIX— early XX centuries: the experience of formation and development (based on the materials of the Saratov province). Extended abstract of candidate’s thesis. Saratov, Saratov State Economic Academy. http://cheloveknauka.com/krestyanskaya-kooperatsiya-rossiikontsa-xix-nachala-xx-vv-opyt-stanovleniya-irazvitiya#ixzz7A8PKJhbi (Data accessed: October 15, 2021) Rozhnov, V. P. (2010). The origin of the rural cooperative movement in Chuvashia. Regional features of agrarian relations in Russia: History and modernity. Collection of materials of the All-Russian scientific and practical conference dedicated to the Year of the Farmer in the Chuvash Republic. Cheboksary, Cheboksary Cooperative Institute, Chuvash State Institute of Humanities, Part, 1, 114–121. Russian State Historical Archive. (2021). Boris Yeltsin Presidential Library. F. 395. Op. 1. D. 1152b. https://www.prlib.ru/en/node/ 362210 (Data accessed: October 15 2021). Sakharova, D. B., & Kotov, I. S. (2005). History and theory of the cooperative movement. New Knowledge. Seliverstov, T. A. (2000). Historical and legal aspects of the formation of cooperation in Russia. History of State and Law, 1, 32–40. The first All-Russian Congress of representatives of cooperative institutions. April 16–21, 1908 (1908). Proceedings published by the Bureau of the Moscow Union of Consumer Societies. Moscow. The nineteenth century: A historical collection published by Peter Bartenev. (1872). Book 1. Moscow, pp. 149–161. The Second All-Russian Congress on Cooperation in Kiev, August 1– 7, 1913: I. Reports. II. Resolutions. (1913). Kiev: Printing house of 2nd artel. Tkach, A. V. (2005). Agricultural cooperation. Dashkov & Co. Vakhitov, K. I. (2009). The history of consumer cooperation in Russia. 2nd ed. Dashkov & Co.

Price Factors Determining the Involvement of Farms and Households in the System of Agricultural Consumer Cooperation Alexander A. Kudryavtsev

Abstract

1

The purpose of this work is to assess the impact of price factors on the sustainability of the development of agricultural consumer cooperatives. The study is conducted on the example of cooperatives selling grain, milk, and potatoes. As an indicator characterizing the economic sustainability of the development of the cooperation system, it’s proposed to use the ratio of the volume of products sold through the cooperative to the volume of the corresponding products produced by small agricultural producers. It was revealed that the involvement of farmers in the activities of grain marketing cooperatives increases during periods of lower producer prices for grain, with an increase in prices, the farmer’s activity decreases. For the development of dairy marketing cooperatives, more significant factor isn’t the level of producer prices, but their share in the structure of consumer prices. Price factors don’t have significant impact on the development of marketing cooperatives selling potatoes. It’s proposed to use the increase in the share of the agricultural producer in the price of the final product as a criterion for the optimal parameters of functioning of the cooperative. Keywords

..

.

Agricultural cooperation Farming Producer price Cooperation sustainability Support for cooperatives JEL Classification

Q12

. . Q13

and Julija V. Karmyshova

Q14

A. A. Kudryavtsev (&) . J. V. Karmyshova Penza State Technological University, Penza, Russia e-mail: [email protected]

.

Introduction

Partnership, interaction within the framework of agro-food value chains is a key factor in the sustainable functioning of food systems (Pancino et al., 2019). Cooperatives, based on the essence of their organization, meet the requirements of sustainability because they are created based on a voluntary agreement of people acting in their interests and interests of society on the principles of justice. Association within the framework of cooperatives allows farmers to receive economic benefits due to economies of scale in the sale of products and the purchase of material resources and more effectively defend their interests in interaction with the state and contractors (Palatkin & Pavlov, 2019). Cooperatives can also act as a platform for the distribution of state support funds to small agricultural producers (Blekking et al., 2021). Determining the need for farmers to participate in the activities of the cooperative as a condition for obtaining state support funds, the state seeks to increase the economic sustainability of small businesses, as well as reduce administrative costs in the framework of interaction with them. Cooperatives are effectively used to solve the problem of poverty in rural areas, increasing the sustainability of the development of local socio-economic systems (Gava et al., 2021). Cooperatives make a significant contribution to the development of food systems in many developed and developing countries and play an important role in increasing the sustainability of agriculture. According to this, cooperatives are the object of research in studies of different scientists, and the key topics of these studies are the following: social and environmental aspects of the effectiveness of cooperatives; comparison of the features of the functioning of cooperatives and companies based on the capital of investors; financial aspects of the activities of cooperatives; features of the distribution of property and management rights in cooperatives; trust and commitment of members of the cooperative to the interests of its

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_43

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development (Luo et al., 2020). The last direction of research, in the author’s opinion, is relevant at the present stage of development of the system of agricultural consumer cooperation in the Russian Federation, due to the motivation of the members of the cooperative to unite; the interest of agricultural producers in using the services of the cooperative determines the economic sustainability of the entire system of cooperation. For countries with a developing system of cooperation, the situation of a short period of existence of the created cooperatives is typical. Most cooperatives are liquidated in the first few years after they are created. At the same time, motivated members of the cooperative can participate in its activities in the long term, more than 20 years (Sultana et al., 2020). The effectiveness of agricultural cooperatives is influenced by the commitment of their members, heterogeneity, and social capital (Apparao et al., 2019). Existing studies in this area focus on the motives for farmers to join cooperatives of certain types. They also take into account differences at the level of farmers and individual factors that determine their choice: the age of the farmer; farm size; production volumes, access to alternative distribution channels (Alho, 2015). The distribution of value between members of the cooperative of different groups (Munch et al., 2021), the attitude of farmers to market risks is considered as motivating factor (Yu et al., 2021). In the Russian Federation, support for small agricultural producers has been one of the directions of the State Program for the Development of Agriculture and the Regulation of Agricultural Products, Raw Materials and Food Markets since 2008. Since 2015, grants have been allocated from the budget to agricultural consumer cooperatives, which are designed to ensure the sustainable development of farms and households. At the same time, the volume of budget support for cooperatives is small but is steadily increasing: from 0.4 billion rubles in 2015 to 2.63 billion rubles in 2020. But there is no significant increase in the role of cooperatives in the development of small agricultural producers (National report…, 2020). So, the reason for this, in the author’s opinion, isn’t only the insufficient amount of financial support for cooperatives from the state. Participation in the activities of cooperative should bring, first of all, economic benefits to its members. Obviously, this is the main incentive to join the cooperative and a necessary condition for the development of the cooperative system. Agricultural producer evaluates the benefits that participation in the cooperative can provide him while deciding to join a cooperative. In each specific case, the potential for obtaining such benefits depends primarily on the nature of functioning of a particular cooperative, the ability of its management to effectively organize economic activities. The factors of economic efficiency of the activity of a particular cooperative are determined by the individual conditions of its functioning. The size of the cooperative has a positive effect

A. A. Kudryavtsev and J. V. Karmyshova

on the financial performance of its activities. Diversification of activities increases the sustainability of financial performance, especially for small cooperatives (Pokharel & Featherstone, 2021). Important factors in the sustainability of the cooperative are its flexibility and the ability to quickly respond to changing market conditions. The cooperative operates in market conditions, within the framework of established agro-food chains, the parameters of which also affect the ability of participants to benefit from cooperation. One of these essential parameters is pricing at various stages of the value chain. The opportunity to sell products at better prices motivates farmers to join marketing or processing cooperative, and this is also encouraging existing members to continue using the services of the cooperative. Thus, this contributes to an increase in the stability of the entire system of cooperation that unites farms and households. In order to increase the effectiveness of state support measures for cooperatives, it’s necessary to take into account the factors that determine the motivation of agricultural producers to cooperate. As part of this study, the authors set the goal of assessing the impact of price factors on the involvement of farms and households in cooperation.

2

Materials and Methods

The study was conducted based on official statistical data on the activities of agricultural supply and marketing consumer cooperatives in the Russian Federation for the period from 2009 to 2020. The ratio of the volume of products in kind sold through cooperatives to the volume of the corresponding products produced by farms and private farms. The logic behind this choice is as follows. Supply and marketing cooperatives are considered as a tool for the development of small forms of management. Accordingly, their involvement in the system of cooperation, characterized by the indicator, determines its stability. The system of cooperation for small agricultural producers is more attractive if they sell a large share of their products through cooperatives. This, in turn, will help expand the membership base of cooperatives, increase their role in agriculture and the sustainability of the development of the entire system of supply and marketing cooperation. The level of prices of agricultural producers and consumer prices for the analyzed types of products was chosen as factor indicators. The analysis is carried out on the supply and marketing consumer cooperatives that sell grain cereals and legumes, milk, and potatoes. This choice was made due to the sale of these products is the most common activity of supply and marketing cooperatives. The relationship between the effective and factorial indicators is assessed based on the correlation coefficient (Pearson’s correlation coefficient) of the indicators of the corresponding time series.

Price Factors Determining the Involvement of Farms and Households in the System of Agricultural Consumer Cooperation

Farmers can use short and long supply chains in the process of marketing milk and potatoes. In the first case, the products are sold to direct consumers, in the second—to processing enterprises or intermediaries. At the same time, farmers evaluate the fairness of pricing based on a comparison of the price at which they sell their products to intermediaries and processing enterprises, and the price at which products are purchased by the end consumer. The authors assume that the difference between a producer and consumer prices, access to short supply chains, affect the motivation of farmers and personal subsidiary plots to participate in marketing cooperation. If the difference between the price at which the farmer sells his product and the price of the relevant product in the retail chain is smaller, incentives to search for new distribution channels and to cooperate in the sales of products are lower. Conversely, if a farmer sees that the selling price of products in the retail trade network is significantly different from the price he receives as a producer, his motivation to search for more profitable sales channels increases. While selling grain, the ratio of the producer price and the price of grain in the final product is more difficult to track, because the grain is subject to deeper processing. Therefore, in this case, farmers are guided by the general level of grain purchase prices from producers, by subjective assessment of the fairness of such a price, its sufficiency to ensure the profitability of production. So, as the price factor that determines the motivation for cooperation in the sale of milk and potatoes, the difference in producer price and consumer price was chosen, in the sale of cereals and legumes—the level of producer price.

3

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The share of cooperatives in the sale of potatoes is minimal in comparison with other products considered earlier. As a positive factor, the authors can note its increase in the last three years of the period under review. But it’s impossible to talk about the sustainability of the development of the respective cooperatives. The correlation coefficient demonstrates that there is no connection between the price factor and the share of cooperatives in this case. The increase in the share of the manufacturer in the final price of the product within the framework of marketing and processing cooperation can be considered as a criterion for the optimality of the business model of the cooperative. The maximization of this criterion will correspond to the optimal scale of the cooperative’s activity. At the same time, the ability of the cooperative to provide its members with an increase in their share in the final price of the product is determined by both external factors (the distribution of market power in the food chain, access to various channels for marketing products) and internal factors (the costs of the cooperative, the policy of forming and using the profits of the cooperative). An increase in the share of cooperatives in the sale of farm products should help grow the average producer price (in conditions, when sales through the cooperative are carried out at higher prices) and, accordingly, reduce the difference between the producer price and the consumer price. So, there should be feedback: not the level of producer prices will affect the involvement in cooperation, but the involvement in cooperation will affect the statistics of selling prices of products by farmers. In the current conditions of an extremely low share of cooperatives in the structure of sales, this reverse effect wasn’t considered due to its insignificance.

Results

Table 1 presents indicators characterizing the role of supply and marketing cooperatives in the sale of cereals and legumes, milk, as well as potatoes. The share of cooperatives is understood as the ratio of the volume of products sold by the cooperative to the volume of the corresponding products produced by small forms of management. Throughout the period under review, the role of marketing cooperatives in the sale of grain remains insignificant and corresponds to the initial value at the end of the period. At the same time, the correlation coefficient presents noticeable feedback between the considered indicators. The difference in prices is understood as the difference between the average price of milk sold by farms and private households, as well as the average retail price of milk. It’s possible to note an increase in the share of cooperatives in the sale of milk in general over the period, but the maximum values achieved by this indicator in 2014–2015 weren’t maintained. The correlation coefficient shows close to a high direct relationship between the analyzed indicators.

4

Discussion

The conducted study affects the assessment of the influence of only the price factor on the involvement of small businesses in cooperation, without the influence of other factors, for example, financing of cooperatives in the form of state grant support, which has been implemented since 2015. This choice has resulted from the effect of grant support that can be stable in the long term, if there are objective economic incentives to unite producers, which manifest themselves in relation to marketing cooperatives, primarily in the possibility of more profitable sales of products. In addition, the availability of state support in the form of grants for cooperatives remains low. As a further development of this study, it’s advisable, in the author’s opinion, to consider the influence of similar factors on the development of processing cooperatives. The indicator of the share of cooperatives in the sale of products of small businesses proposed to assess the economic

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A. A. Kudryavtsev and J. V. Karmyshova

Table 1 Assessment of the influence of the price factor on the share of supply and marketing cooperatives in the sale of certain types of products Indicator

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0.43

0.37

0.53

8.26

7.72

2019

2020

Grains of cereals and legumes Share of cooperatives (%)

0.43

0.86

0.46

1.00

0.71

0.76

0.53

Price, thousand rubles per ton

4.62

3.73

6.24

5.26

9.07

7.57

8.69

1.90

1. 90

Correlation coefficient

10.1

0.42 11.4

0.43 12.0

−0.53

Milk Share of cooperatives (%)

1.39

Difference in prices, rubles per kilogram

5.6

Correlation coefficient

0.71

15.0

15.3

2.21 17.0

2.68 17.7

3.06 18.8

3.05 22.6

2.87 24.4

3.19 25.0

2.98 27.6

2.62 29.1

2.47 31.1

Potatoes Share of cooperatives (%)

0.06

0.09

0.10

0.10

Difference in prices, rubles per kilogram

8.29

7.13

11.8

7.57

Correlation coefficient

0.18

0.06 11.6

0.06 12.8

0.06 11.9

0.09 8.81

0.07 11.6

0.11 11.6

0.11 14.3

0.17 12.9

Source Compiled by the authors

sustainability of the relevant cooperative systems can also be used as part of monitoring the sustainability of the development of rural areas in general (Pavlov & Palatkin, 2021) and as a criterion for assessing the effectiveness of allocating state support funds to cooperatives.

5

Conclusion

The results of the study show that the system of supply and marketing cooperatives in the Russian Federation for the period 2009–2020 isn’t characterized by significant changes in the level of development. The role of marketing cooperation in the sale of products of farms and personal subsidiary plots remains insignificant. At the same time, changes in the price level, reflecting the distribution of market power and the characteristics of relationships in agro-food value chains, have a certain impact on the sustainability of the development of grain and dairy cooperatives. In the period under review, there is an inverse relationship between the dynamics of grain sales prices by producers— farms and the share of cooperatives in the sale of relevant products. It can be concluded that the decline in grain prices motivates producers to search for more profitable distribution channels for their products, including uniting to form larger batches of goods. This makes it possible to sell grain at a higher price to processing enterprises or to carry out export sales. The motivation to sell products through the cooperative has been decreased during periods of rising grain prices. Dairy cooperatives are the most demanded direction of cooperation within the marketing agricultural consumer cooperation. In this direction, there is a direct relationship between the difference in the price of producers and

consumers, as well as the share of cooperatives. Such a connection is quite logical. If the difference between the producer price and the consumer price (respectively, the smaller the producer's share in the final price of the product) is bigger, the more farmers and private farms are interested in cooperating. Marketing cooperatives allow producers to displace intermediaries from the supply chain of raw materials for processing and increase their share in the final price of the product. The ratio of producer and consumer prices doesn’t have a significant impact on the development of marketing cooperatives selling potatoes. In the author’s opinion, this is because in this case, farms have the opportunity to respond more flexibly to the emerging price level, creating their storage facilities, and partially selling products during the season of higher purchase prices. In addition, the creation of marketing potato cooperatives is characterized by high capital intensity, which limits the possibility of their organization with the participation of farmers and personal subsidiary farms. The results obtained can be used to improve the efficiency of the implementation of regional programs to support agricultural consumer cooperatives. Budgetary grant funds should be allocated to cooperatives that carry out activities with the highest potential to provide benefits to all its members. At the same time, it’s necessary to consider not only individual indicators of the functioning of the cooperative (number of members, planned sales, resource base, etc.) but also price proportions in the corresponding value chain. The level of prices of producers of agricultural products that have developed at any given moment, its correlation with the consumer price for final products, determines the economic incentives for cooperation. The synergistic effect of state support and objective economic

Price Factors Determining the Involvement of Farms and Households in the System of Agricultural Consumer Cooperation

incentives for cooperation can be a factor in increasing the sustainability of the development of small businesses based on cooperation. Acknowledgements The reported study was funded by RFBR, project number 20-010-00987.

References Alho, E. (2015). Farmers’ self-reported value of cooperative membership: Evidence from heterogeneous business and organization structures. Agricultural and Food Economics, 3, 23. https://doi. org/10.1186/s40100-015-0041-6 Apparao, D., Garnevska E., & Shadbolt N. (2019). Examining commitment, heterogeneity and social capital within the membership base of agricultural cooperatives. A conceptual framework. Journal of Co-operative Organization and Management, 7(1), 42–50. https://doi.org/10.1016/j.jcom.2019.03.003 Blekking, J., Gatti, N., Waldman, K., Evans, T., & Baylis, K. (2021). The benefits and limitations of agricultural input cooperatives in Zambia. World Development, 146. https://doi.org/10.1016/j. worlddev.2021.105616 Gava, O., Ardakani, Z., Delalić, A., Azzi, N., & Bartolini, F. (2021). Agricultural cooperatives contributing to the alleviation of rural poverty. The case of Konjic (Bosnia and Herzegovina). Journal of Rural Studies, 82, 328–339. https://doi.org/10.1016/j.jrurstud.2021. 01.034 Luo, J., Han, H., Jia, F., & Dong, H. (2020). Agricultural Cooperatives in the western world: A bibliometric analysis. Journal of Cleaner Production, 273. https://doi.org/10.1016/j.jclepro.2020.122945 Munch, D. M., Schmit, T. M., & Severson, R. M. (2021). Assessing the value of cooperative membership: A case of dairy marketing in the United States. Journal of Co-operative Organization and Management, 9(1). https://doi.org/10.1016/j.jcom.2021.100129

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National report on the progress and results of the implementation in 2020 of the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets (approved by Decree of the Government of the Russian Federation No. 1671-r dated June 19, 2021). https://mcx.gov. ru/upload/iblock/953/953ee7405fb0ebba38a6031a13ec0021.pdf (Accessed: October 10, 2021). Palatkin, I. V., & Pavlov, A. Y. (2019). Development models of the cooperative sector in the agro-industrial complex of North American and European countries. IOP Conference Series: Earth and Environmental Science, 274(1), 12–33. https://doi.org/10.1088/ 1755-1315/274/1/012033 Pancino, B., Blasi, E., Rappoldt, A., Pascucci, S., Ruini, L., & Ronchi, C. (2019). Partnering for sustainability in agro-food supply chains: The case of Barilla sustainable farming in the Po Valley. Agricultural and Food Economics, 7, 13. https://doi.org/10.1186/ s40100-019-0133-9 Pavlov, A. Y., & Palatkin, I. V. (2021). Set of indicators for monitoring the development of rural municipalities in the system of assessing the sustainability of rural areas. In: Bogoviz A. V. (Ed.), Complex Systems: Innovation and Sustainability in the Digital Age. Studies in Systems, Decision and Control, vol. 283. Springer, Cham. https:// doi.org/10.1007/978-3-030-58823-6_60 Pokharel, K. P., & Featherstone, A. M. (2021). Examining the productivity growth of agricultural cooperatives: The biennial malmquist index approach. Journal of Cooperative Organization and Management, 9, 2. https://doi.org/10.1016/j.jcom.2021.100148 Sultana, M., Ahmed, J. U., & Shiratake, Y. (2020). Sustainable conditions of agriculture cooperative with a case study of dairy cooperative of Sirajgonj District in Bangladesh. Journal of Cooperative Organization and Management, 8, 1. https://doi.org/10. 1016/j.jcom.2019.100105 Yu, L., Chen, C., Niu, Z., Gao, Y., Yang, H., & Xue, Z. (2021). Risk aversion, cooperative membership and the adoption of green control techniques: Evidence from China. Journal of Cleaner Production, 279, 123–288. https://doi.org/10.1016/j.jclepro.2020.123288

Socially Responsible Level of Consumer Cooperation: Problems and Prospects Ludmila N. Dmitriyeva , Tatyana N. Egorova , Natalia V. Danilova , Svetlana G. Kochergina , and Elena G. Petrova

Abstract

JEL Classification

The article discusses the problems of increasing the social role and responsibility of consumer cooperation associated with the social development of its shareholders, mainly rural residents, suggests ways to improve their activities: the development of forms of cooperation and the use of external local and internal system resources to preserve the social mission in the countryside. In order to determine the level of assessment of the social responsibility of consumer cooperation, the indicators of the system were studied using the example of one of the leading organizations of the Central Union of Russia—the Chuvash Consumer Union. As promising measures, it’s proposed to increase the number of shareholders and share capital by investing in cooperatives at the expense of share contributions and lending to the cooperative by their shareholders. The development of procurement industries has to ensure an increase in the volume of procurement, purchases, processing of raw materials, etc.

D71

Keywords

.

..

Consumer cooperation Social mission responsibility Problems Prospects

.

Social

L. N. Dmitriyeva . T. N. Egorova (&) . N. V. Danilova . S. G. Kochergina . E. G. Petrova Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] L. N. Dmitriyeva e-mail: [email protected] N. V. Danilova e-mail: [email protected]

1

.

F63

Introduction

Consumer cooperation as a socially-oriented system is designed to perform the most important social function— increasing the welfare of its members, cooperatives, and society. The Declaration on the Cooperative Identity of the International Cooperative Alliance consolidates the most important social mission of the system and its social responsibility (International Co-operative Alliance, 2021). Recommendations of the International Labor Organization in 2002 emphasize the promotion of the development of cooperatives (Recommendations of the International Labor Organization, 2002). National projects are associated with serving the rural population and creating appropriate conditions for development.

2

Materials and Methods

The following methods were used in the process of research: general methods of dialectical, comparative, as well as systems analysis; private methods: a statistical observation, problem diagnosis, and others. Reviews of regulatory legal acts, foreign and domestic literature sources were used to form the conclusions of this article. The conceptual basis of this work was the research of such scientists as Egorova and Ilyina (Egorova & Ilyina, 2018). The authors also used data and information (Federal Law of the Russian Federation No, 2021).

S. G. Kochergina e-mail: [email protected] E. G. Petrova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_44

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L. N. Dmitriyeva et al.

Results

In this regard, the activity of consumer cooperation is carried out on cooperative values and principles that increase its role and social significance for society. A subjective approach is also proposed to determine the levels for assessing the social responsibility of consumer cooperation. For these purposes, the authors have summarized the list of subjects acting as participants in certain key processes in consumer cooperation. So, the following groups were identified: 1. Members-shareholders of consumer cooperation. This is the social basis of the cooperation system and not only of the consumer but of any industry group. Shareholders aren’t associated with labour functions in the system. Their main interest is access to services, goods, and products of consumer cooperation organizations. The needs of shareholders and their interests are associated with the preferential service system, as well as with the opportunity to become an investor in the system. Thus, they can invest their funds and participate in its development; 2. Employees of the system and its labour collectives. This subject takes an active and direct part, works in the cooperative system. This is the main productive force of the consumer cooperation system as any other organization; 3. One more group are consumers, this is in the majority, the rural population, using the goods and services of consumer cooperation organizations. Their interests are related to a wide range of consumer goods and services. They may not be shareholders or cooperative workers, but they are also active participants. This group of participating subjects—the uncooperative population performs the following main functions: 1. Acts as consumers, who pay for goods, works, and services of organizations of the cooperation system. This is economic basis; 2. Acts as a source of resources, replenishment of labour force, and personnel potential of the system of consumer cooperatives; 3. Acts as a source of expanding the social base, active participant in the implementation of public interests, potential source of membership replenishment and renewal of the ranks of shareholders-members of the system, investors, as well as active participants. The cooperative system of consumer societies has a dual nature, realizing commercial and social roles. It’s

characterized by the duality of its nature through the implementation of non-commercial goals. But the commercial function of consumer cooperation, aimed at making a profit through the production and sale of products, goods, works, and services on the market, mainly in rural areas isn’t excluded. As a result of the implementation of commercial goals, financial and material, as well as the technical base is formed to achieve the overall social mission of the system. Based on this, it follows that consumer cooperation is a model of socially responsible business. The main task is achieved by improving the quality of service to the population and providing them with goods, works, as well as services. This, in turn, is designed to contribute to the sustainable development of rural areas, their economic and social prosperity, the development of society, and also their standard of living (Andreev, 2012). The main condition for the successful solution of this problem is the sustainable development of consumer cooperation, which ensures an increase in the industry's share in the gross domestic product of the country or region (Yanbykh et al., 2019). Currently, there is a significant reduction in the scale of activity of consumer cooperation in Russia: the indicators, including the production of its public catering products, paid services population, consumer services, purchases of agricultural products and raw materials, as well as food production (Dmitriyeva, 2015a). Due to this, consumer societies are losing their social nature everywhere. As a result, consumer cooperation actually weakens the sphere of its socially responsible business, which has been spawned and, of course, has lost its competitiveness (Zyryaeva et al., 2020). Consumer cooperation has also lost a significant number of shareholders – members of the most important group of subjects participating in the system (Concept of development of consumer cooperation system: Central Union of the Russian Federation, 2021). Decrease in the number of shareholders, who belong to the first group of subjects participating in the consumer cooperation system (not related to labour relations with the cooperative), leads to loss of autonomy and independence of the system in the following areas: 1. The guaranteed customer base of consumer cooperation. A decrease in the customer base of consumer cooperation is the result, for example, of the absence of a bonus system of discounts in trade, public catering, and services, as well as this strengthens the position of competitors. The main competitor of consumer cooperation in the area of trade is currently the trading network “Magnit”—the leading Russian retail—21 thousand stores in almost four

Socially Responsible Level of Consumer Cooperation: Problems and Prospects

thousand cities and towns of Russia. Realizing its multi-format model, which includes small pilot formats of Magnit City and My Price stores, the chain is very quickly introduced into the area of cooperative trade, implements various loyalty programs for customers. It should be noted that consumer cooperation didn’t quickly realize the fact that it’s a trade business network, in which all stores have a single brand and resource management centre. They are also united by common goal, mission, as well as strategy and implement single product or price politics, logistics, i.e., the system of consumer cooperation has already initially characterized by those features that retail has got. Therefore, having such a competitor as “Magnit” in its service area, consumer cooperatives currently have to withstand strong competition. However, consumer cooperation, as a diversified economic complex, can maintain its leading positions in the sale of environmentally friendly products, moving from competition with retail to cooperation with it through the sale in retail chains (own and competitors) of environmentally friendly products of their procurement, processing, and production (Tkach, 2014). Cooperative organizations, being part of the Chuvash Consumer Union system, have a positive example of such cooperation with competitors. The Chuvash Consumer Union has created a trade brand for the products of enterprises and consumer cooperation organizations of the Chuvash Republic “Vkusnaya Liniya”, which is represented by meat, sausages, confectionery, jam, canned food, natural juices, soft drinks, and other food products made from natural, environmentally friendly, local raw materials with using classic, as well as innovative production technologies. The creation of a brand, the sale of products in trade enterprises of competitors contributes to the growth of the volume of trade. So, the volume of retail trade turnover of Chuvash Consumer Union for nine months of 2020 amounted to 5,025 million rubles or 105% in comparable prices to the corresponding period of 2020. This provided the organizations in the competitive ranking of regional consumer unions, being part of the Central Union system of the Russian Federation, 2nd place in 2020 (in 2019—3rd place, in 2018—4th place) (Chuvash Consumer Union Central Union of the Russian Federation, 2021). 2. Investing in cooperatives through share contributions and their increase, which is a source of benefits for shareholders and cooperatives (Blau & Fedorova, 2016; Bogdanov et al., 2016; Fedorova & Barsukova, 2019). The level of interaction and the volume of purchases depending on the degree of trust of the suppliers to the cooperative organizations. If the level of confidence is high,

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purchase and production volumes increase the purchase of milk by cooperative organizations of the Chuvash Republic for 9 months of 2020 increased by 17.3% compared to the same period of the previous year, which also provided Chuvash Consumer Union with 2nd place in the competitive rating (Chuvash Consumer Union Central Union of the Russian Federation, 2021). The production of food products (sausages) for nine months of 2020 amounted to 526 tons, or 104.6% compared to the corresponding period of 2019. At the end of 2019, Chuvash Consumer Union took 1st place among consumer unions included in the Central Union system of the Russian Federation. For consumer cooperatives, the “procurement” industry is promising for sustainable development, because the potential of procurement activities expands the development opportunities for related industries. Acting as the basis for other industries, blanks form an integrated system of interconnections, i.e., the necessary platform and security system for the stable development of other related industries. Thus, procurement activities can become the basis for the development of the system of consumer cooperation organizations in rural areas. Currently, procurement can be an indicator of the demand for cooperative systems in the countryside, because of the fact that consumer cooperation will not be of interest to the rural economy without them (Dmitriyeva, 2015b). The volume of this industry is declining rapidly in the number of regional consumer unions. This is influenced not only by internal but also by external factors of activities. Currently, in cooperative educational organizations, there is a decrease in training on cooperative topics in educational programs, academic plans, which negatively affects the understanding of the essence of the cooperative model of management by students. The absence in consumer cooperation of centralized management in the area of targeted training also leads the system to a shortage of personnel, including in the area of procurement, to the absence of relevant programs of additional professional education and recruitment for these programs. Such a protracted crisis state of the “procurement” industry, other industries, and the system of consumer cooperation as a whole doesn’t allow consumer cooperation to adequately implement its social functions and to be socially responsible.

4

Conclusion

Thus, the consumer cooperation system will reflect its social responsibility in terms of development of the “procurement” industry: an increase in the volume of procurements,

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purchases, and processing. Summing up the results of our research, the authors note that the way out of the crisis must begin with increasing the demand for consumer cooperation in the area of its service, taking into account the expansion of this sphere, strengthening consumer cooperation organizations as the system of socially responsible business, as well as restoring system of cooperative professional and educational education, which will act as “points growth”.

References Andreev, V. V. (2012). The system of consumer cooperation in the conditions of Russia’s accession to the World Trade Organization. In V. V. Andreev, T. Ya. Silvestrova, G. V. Kalinina (Eds.), Bulletin of the Russian University of Cooperation (Vol. 1, pp. 3–8). Blau, S. L., & Fedorova, L. P. (2016). Model of investing innovations in modern conditions. In Science and Technology, The Collection Includes the 6th International Conference on Science and Technology by SCIEURO in London, pp. 90–112. Bogdanov, S. N., Bogdanova, E. V., & Egorova, T. N. (2016). Economic security of the credit cooperative sector. In Collection of Materials of the International Virtual Research-to-Practice Conference: Economy and Management in the Context of Reindustrialization: Theory and Practice, pp. 46–52. Chuvash Consumer Union Central Union of the Russian Federation. www.chuvashpotrebsouz.ru (Accessed: September 21, 2021). Concept of development of consumer cooperation system: Central Union of the Russian Federation. www.ircoop.ru (Accessed: September 20, 2021). Dmitriyeva, L. N. (2015a). System of indicators of assessment of sustainable development of consumer cooperation. Bulletin of the Russian University of Cooperation, 1, 42–44.

L. N. Dmitriyeva et al. Dmitriyeva, L. N. (2015b). The role of consumer cooperation in import substitution of agricultural products and raw materials. In F. G. Fedorov, L. N. Dmitriyeva, N. V. Fedorova (Eds.), Modern problems of science and education, No. 2 (Part 1). http://scienceeducation.ru/ru/article/view?id=21429 (Accessed: Sebtember 22, 2021). Egorova, T. N., & Ilyina, A. G. (2018). Adaptive management and its role in the development of the agroindustrial sector. Bulletin of the Russian University of Cooperation, 2(32), 23–26. Federal Law of the Russian Federation No. 3085-1 of 19.06.1992 “On consumer cooperation (consumer societies, their unions) in the Russian Federation” (as amended by 02.07.2013 No. 185-FZ). http://www.consultant.ru/document/cons_doc_LAW_608/ (Accessed: September 20, 2021). Fedorova, L. P., & Barsukova, M. V. (2019). Formation and implementation of a region’s economic security model. Bulletin of the Russian University of Cooperation, 3(37), 89–95. International Co-operative Alliance. www.ica.coop (Accessed: Sebtember 22, 2021). Recommendations of the International Labor Organization No. 193 of June 20, 2002 “On the Promotion of Cooperatives”. http://www. consultant.ru/cons/cgi/online.cgi?req=doc&base=INT&n= 17671#wmcAJuS7zqMlKwXW (Accessed: September 22, 2021). Tkach, A. V. (2014). Cooperation in Russian Agro-industrial complex: Economy. New Zealand Management, 3, 30. Yanbykh, R., Saraikin, V., & Lerman, Z. (2019). Cooperative tradition in Russia: A revival of agricultural service cooperatives? Post-Communist Economies, 31(6), 750–771. Zyryaeva, N. P., Kochergina, S. G., Khabazina, L. N., Abrosimova, M. S., Ivanov, E. A., & Toboyev, G. M. (2020). Development of an agrarian innovative system as a factor of increase in efficiency of the agro-industrial complex. In 35th IBIMA (International Business Information Management Association) Conference: 1–2 April 2020, Seville, Spain.

Family Values in the Self-consciousness of Students of Cooperative University Elena A. Nikolaeva , Agnia S. Yusupova , Irina G. Musina , Nailya N. Minnullina , and Gulnara A. Mustafina

Abstract

JEL Classification

The article studies the family values of modern students. As a result of the analysis of the answers to the questions of the Internet questionnaire, it has been concluded that the majority of young people are dominated by traditional family values and have a clear idea of the family as a union between man and woman based on love and mutual respect. The analysis of the main expectations of students from family life showed the priority of value of “love”, the student's awareness of the importance of responsible behaviour in marriage, and mutual understanding in the family. The authors also considered the main negative trends in changing the structure of family values. Analysis of students’ answers to questions about childfree revealed that some of the respondents didn’t have the most important human need—the need for children and the need to be a parent. The article reveals the consequences of further deformation of family values, which can lead to changes in the reproductive behaviour of young people. The ways of forming the traditional triad of family values “love”—“child”—“mutual understanding” by means of spiritual and moral education through the joint efforts of the education system, culture, as well as social institutions are proposed.

J13

Keywords

Family values Online survey

.

Childfree

.

Reproductive behavior

E. A. Nikolaeva (&) Kazan State Institute of Culture, Kazan, Russia e-mail: [email protected] A. S. Yusupova . I. G. Musina . N. N. Minnullina . G. A. Mustafina Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia

.

1

. . I23

Q56

Introduction

Values as “beliefs shared in society regarding the goals, which should be reached by person and the main means of achieving them” (Smelzer, 1998) are the basis of personality. The number of values has increased personal and social significance. These include family values. Family values manifest themselves in the reproductive behaviour of young people, in creating a strong family, and in the demographic situation in society as a whole. Therefore, family values as an object of study attract the close attention of philosophers, sociologists, demographers, educators, as well as politicians. Russian President Putin said, “Traditional family values are the most important moral pillar and the key to successful development both in the present and in the future” at the opening of the Third Eurasian Women’s Forum in St. Petersburg in October 14, 2021 (Putin, 2021). With the traditional approach to family values, implemented in the demographic policy of Russia, the so-called post-materialist approach, which is expressed in the dominance of “emancipative” values, is actively gaining worldwide distribution among the young population and politicians. Well-known Russian sociologist Klupt said, “These values of personal self-expression, environmental protection, tolerance for immigrant and sexual minorities, gender equality, and the opportunity to influence political decisions. Family values aren’t included in this list and, on the contrary, are treated as obsolete, as well as the problem of low birth rates isn’t recognized as worthy of attention” (Klupt, 2021). The next drop in the birth rate in 2019 in Russia and the world, the active dissemination of childfree views in social networks causes concern and initiates constant monitoring of the value complexes of today’s youth.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_45

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In the cooperative movement, family values occupy a special place: family cooperatives are considered the most successful, durable, and united. Within the framework of family cooperatives, the socialization of the individual takes place, the transfer of social experience from the elders to the younger members of the cooperative, and sometimes from the younger to the elders, for example, in the area of modern information technologies. The family cooperative is a comfortable environment for raising children, developing their labour skills, as well as an entrepreneurial spirit. Today, the special significance of family values in the structure of self-consciousness of future cooperators determined the relevance of this study. The purpose of this research is to study the structure of family values of students of the Kazan Cooperative Institute. The object of the study is students of secondary and higher professional education at the Kazan Cooperative Institute (branch) of the Russian University o Cooperation. The subject of the study is family values. The collection of information was carried out by the method of anonymous Internet survey using a questionnaire consisting of open and closed questions.

2

Materials and Methods

The main method of this research is the Internet survey method. The survey was conducted on the Google Forms electronic resource from September 15, 2021, to October 13, 2021. The total number of participants in the survey is 268 respondents. These are students of the Kazan Cooperative Institute: senior students of the faculty of secondary vocational education, students of the higher education level of the faculty of economics and customs, full-time and part-time. Students were asked to answer ten questions of the questionnaire, divided into three conditional sets. The first set consisted of questions about personal data (age, gender); the second set of questions was related to students’ awareness of the social institutions of marriage and family. This set included differentiated questions on expectations from family life, the purpose of the family, and the motives of marriage. These questions implied a choice from the number of answers and the possibility of detailed answers. The third set of questions was aimed at revealing the attitude of students towards childfree. The survey was anonymous, which determined the high objectivity of the data obtained.

3

Results

The age and gender composition of the survey participants turned out to be quite homogeneous. The bulk of the respondents belonged to the age group of 16–20 years—

77%, 21–25—19%, 26–30—4%. The number of girls is 71.6% of the respondents, boys—28.4%. Answers to the second set of questions revealed the respondents’ understanding of family values. The survey revealed that half of the respondents didn’t think about creating a family at all (51.4%), 35.4% of the respondents began to think seriously about creating a family (marriage) recently (1–2 years ago); 13.2% of the respondents began to think long ago (4–6 years ago). These data indicate that today’s youth aged 16–20 don’t plan to start a family shortly. At the same time, the majority of respondents (98%) have a clear idea of the family as a union between a man and a woman. The idea of a family in the minds of students is strongly associated with such concepts as: “love”, “support”, “happiness”, “mutual understanding”, “meaning of life”, “responsibility”, “respect”, “home”, and “joy”. There are also generalizations: “close people”, “the most important thing”. Several people consider the creation of family as a “rash act” or an opportunity to improve their financial situation, and only two people found it difficult to answer. Expectations from family life are ranked as follows: “mutual understanding between spouses” was noted by 85% of respondents, “love”—80.6%, “material well-being”— 47.8%, “the presence of children”—43.3%, “permanent interesting leisure”—41%, “separate apartment”—24%. Respondents could choose multiple answers depending on their preference. The answers showed a wide range of expectations, but spiritual expectations have come out on top —mutual understanding and love. Answers to the question about the purpose of the family helped to understand what deep meaning the younger generation sees in the institution of marriage and family. The first ranking lines were taken by the answers: “procreation”—65.3%, raising children—58.6%, which indicates that the majority of young people (60–65%) are dominated by traditional family values. Some of the students, who were surveyed, believe that the family is an institution of socialization—40.7%, rest from everyday problems—33.6%, a source of relaxation and inspiration—0.4%. Answers to the questions of the second set show several serious trends in the understanding of family values by modern students. On the one hand, the answers to the questions of the second set demonstrated the priority of the value of “love”, the students’ awareness of the importance of responsible behaviour in marriage and the importance of mutual understanding in the family. On the other hand, these answers indicate that 34.7% of the young people participating in the survey don’t have a family connected with procreation. In 41.6% of respondents, the family isn’t intended for raising children, in 56.7% of the students surveyed, the presence of children isn’t included in the expectations from family life. Therefore, in the understanding of

Family Values in the Self-consciousness of Students of Cooperative University

students, the family is the environment that helps mutual self-realization, development, creates conditions for a comfortable life, and involves joint problem-solving. The third set of research questions was devoted to the phenomenon of “childfree”. Childfree for Russia is a fairly new phenomenon. Interestingly, views in the spirit of “childfree” manifested themselves in the Russian youth consciousness in the form of a certain trend five years ago. But, unfortunately, the growing danger of these views wasn’t previously predicted. As an example, let’s make a study in the city of Vladivostok, described in 2016 in the article “Attitudes towards conscious parenthood among young people” (Erokhina & Erokhin, 2016). The main attention is should be paid to the number of answers of the respondents participating in the survey. The respondents answered the next on the question about the number of children that they would like to raise in the current (future) family: “two—67%; one 17%; three or more children—8%; I don’t want to have children—8%”. The respondents also answered not only “material, housing problems, and health care” on the question about obstacles to having children seem to be the most significant. At the end of the rating of obstacles, there were clear mental attitudes: “the need for constant care for the child throughout life— 20%; constant responsibility for the upbringing and fate of their children—20%; a significant reduction in parents’ free time for personal leisure—15%; children as a hindrance to the career of parents, especially mothers—15%”. The authors agree that these responses, which received the lowest rating, weren’t single, but, on the contrary, signalled negative trends in the reproductive behaviour of young people. A pilot study of life values, conducted according to the Rokeach method in May 2021 among 18 students of the Kazan Cooperative Institute aged 20–21, showed that the value of a “happy family life” was chosen as a priority value by only two respondents. And the value of “full life” turned out to be a priority group-wide value. It’s interesting to live and not to think about procreation, not to take care of children, not to be responsible for their life, health, upbringing, not to waste time and money on their desires—this is a free life. This is the main psychology of childfree representatives. According to data of this research, which is conducted from September 15 to October 13, 2021, more than half of the respondents (50.7%) have a neutral attitude towards the “childfree” phenomenon, 14.2% have a positive attitude, 19.8% have a negative attitude, and 15.3% respondents don’t know anything about it. The same 14.2% of respondents (that's 38 people) answered that they consider themselves childfree. Among them, there were 26 girls from 16 to 20 years old, boys from 16 to 20 years old— 7 people, boys from 21 to 25 years old—4 people. Such results indicate serious shifts in family values, in the minds of young people, which soon will manifest

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themselves in shifts in reproductive behaviour. The answers of a fairly large part of the respondents (mostly girls) speak of the lack of formation of the most important human need— the need for children, the need to be a parent. The need for parenthood, in the author’s opinion, isn’t a rational norm. Speaking of “conscious” parenthood, it’s necessary to emphasize not the rational, but the emotional-intuitive nature of this conscious choice. Awareness, in this case, is rather a feeling of the correctness of the decision, joy, and certainty of accepting the unborn child. Parenthood is considered by many scientists as the most important part of self-actualization of the personality, and Maslow considered the birth of a child to be the top of a woman's life, the top of female self-actualization, accompanied by a feeling of happiness (Hardeman, 1979). In the traditions of the pre-revolutionary Russian family structure, there were large families. The family of Lev Tolstoy and Sophia Tolstoy had nine children. There also were five children in the family of Emperor Nicholas II and six children in the Ulyanov family. Peasant family had 7–12 children. In post-war Russia, the norm of 2–3 children per family was gradually established. In the late 1970s and 1980s, most families in central Russia had two children. The crises of the 1990s and two 2000s also affected the decline in childbearing. The demographic policy of the state, through measures of targeted material support, has actively approved the birth rate of 3–5 children in one Russian family, since 2008. Meanwhile, the birth rate in Russia continues to fall, and the tendency for childlessness seriously threatens traditional Russian family values. In youth consciousness, life is perceived as a right to personal freedom. At the same time, it pleases that 85.8% of respondents don’t see themselves as childfree and think that the birth of children is a natural life process. They are also ready to take responsibility for their birth and upbringing.

4

Conclusion

1. The main part of the students, according to this study, has formed traditional family values; 2. “Love” and “mutual understanding” are recognized as the central values of family life; 3. Significant changes are taking place in the structure of family values of modern student youth; 4. The presence of children isn’t perceived as a mandatory attribute of the family and as a family value for half of the respondents; 5. Childfree views clearly present that the reproductive rate soon will be subject to further negative changes, and this is especially dangerous for society in the demographic aspect. The childfree movement is quickly becoming a

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trend and is at the very high peak of the Western wave of individualism, as well as the over-freedom of the individual. 6. It’s necessary to actively promote family values by modern means preferred by young people. These are means of PR technologies, social advertising, and pop culture. 7. The authors think that it’s necessary to update the traditional means of educating family values in the education system: folk pedagogy, classical Russian literature (“War and Peace” by Lev Tolstoy), Russian art (including religious art), theatre, as well as cinema. 8. The revival of folk traditions and rituals, national-religious culture with the cult of mother and child—all this should be included in the educational process at all levels of education. Thus, this research made it possible to identify changes in family values in the youth environment; it has indicated

E. A. Nikolaeva et al.

shifts in the minds of young people. The seriousness of the socio-demographic consequences associated with the spread of these phenomena necessitates its further detailed study and strategic consistent actions at the level of the education system, culture, as well as public administration.

References Erokhina, L., & Erokhin, A. (2016). Installations on realized by motherhood and fatherhood among young people. Journal Problems of modern science and education, 148. Hardeman, M. (1979). A dialogue with Abraham Maslow. Journal of Humanistic Psychology, 19, 23–28. Klupt, M. A. (2021). Family and fertility issues in value conflicts during the 2010s. Sociological Studies, 5, 36–46. Putin, V. (2021). Welcome speech at the opening of the Third Eurasian Women's Forum in St. Petersburg on October 14, 2021. Smelzer, N. (1998). Sociology. Translation from English, 315.

Experience of Cooperation of German Universities in the Field of Sustainable Development in Education Margarita E. Belomestnova

and Svetlana V. Dusenko

Abstract

1

The paper aims to analyze the cooperation of German universities in the design of educational and research experiences for sustainable development. The authors apply the methods of analysis of scientific literature, observation, comparison, generalization of foreign practice, and structural and functional methods. Many German universities practice cooperation in the field of sustainability in education. For an increasing number of German universities, the process of transferring sustainability knowledge and expertise is a matter of course that forms part of university strategies. Since 2016, Germany has run a project HOCH-N, which brings together institutions of higher education working together. This field of sustainability aims to enable students to shape sustainable development and implement the socio-ecological transformation of society. Cooperation between the participants is an essential prerequisite for uniting them and linking various actions.

Sustainable development is a new socio-economic paradigm and the most important task of social development, which is currently coming to the fore. Higher education institutions and other public institutions are called upon to solve problems related to sustainable development. In the Basic Law of Germany, sustainability is declared as a state goal, “mindful also of its responsibility toward future generations, the state shall protect the natural foundations of life and animals” (Federal Ministry of Justice & Consumer Protection, 2021). This fact is also enshrined in the laws on higher education in various federal states. Universities lay the foundations by transferring skills and values and generating knowledge and innovation. Therefore, it should become part of the internationalization of educational institutions. In this regard, the following questions arise:

Keywords

.

..

Sustainable development in education Sustainability principle Higher education institutions Cooperation of German universities Sustainability transfer

.

JEL Classification

I23

. . . . . . I24

I25

O2

J44

L84

Z13

M. E. Belomestnova (&) . S. V. Dusenko Russian State University of Physical Education, Sport, Youth and Tourism, Moscow, Russia e-mail: [email protected] S. V. Dusenko e-mail: [email protected]

Introduction

• How can German universities initiate and support the process of sustainable development within their walls, making it a permanent task? • How to attract more participants? • How to involve more participants? Last question is particularly relevant due to the fact that universities are structured according to specialized disciplines. Such a topic as sustainable development requires a multi-faceted approach and interdisciplinary cooperation: the humanities, economic, social, behavioral, natural, and technical sciences should be considered together to understand the complex interactions. Accordingly, it is necessary to develop networking between different disciplines, as well as within universities between administration, students, and teachers. Currently, there are no specific rules that could apply to all universities in Germany due to their differences. Many German universities deal with sustainable development in their research or

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_46

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educational process. The paper aims to analyze cooperation of German universities in designing educational and research experiences for sustainable development.

2

Materials and Methods

Various ways and means of implementing the concept of sustainable development in education were considered in the works of Russian researchers, such as Nebessaeva et al. (2021), Bochkareva et al. (2020), Vazhenina (2020), Dusenko et al., (2016), Gleason et al., (2020), Korotkova and Zakirova (2021), Zinchenko, (2020), Gleason et al. (2020), Gleason et al. (2020), Nebessaeva et al. (2021) and Nebessaeva et al. (2021). International scholars also studied this topic, namely, Alm et al. (2021), Rajabifard et al. (2021), Bellina et al. (2020), Gleason et al. (2020), Nebessaeva et al. (2021), Kahle et al. (2018) and others. The analysis of scientific literature was used in the theoretical part of the study to explore the conceptual apparatus and the essence of sustainable development in education. The method of analysis of periodical literature was used. These methods were also used in the analysis of materials for this work when studying the educational process and research activities in German universities based on sustainability principles. Methods of scientific observation, comparison, and generalization of international practice allowed considering and characterizing the problems of using sustainability principles in higher education institutions in Germany. The structural–functional method, using which we investigated the elements of sustainable development in education as a system and the dependencies between them within a single entity, was used to assess the effectiveness of the system of cooperation of German universities. Besides, individual methods and experiences used in German universities were analyzed.

3

Results

The UNESCO program “Education for Sustainable Development: Towards Achieving the Sustainable Development Goals” (“ESD for 2030”) is currently in operation. To contribute to the program, a national platform was created in Germany, where a national action plan was made in mid-2017. In this document, more than 100 goals and more than 300 specific recommendations for action were designed in German landscape in certain areas of education. Curricula, training programs, and regulations on vocational training were considered to “meet the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations, 1987). The debate on sustainability research spans a wide spectrum, from basic

research on specific issues to transdisciplinary sustainability research and the concept of transformative science. Such skills include the ability to think systemically and strategically, as well as value-oriented, future-oriented, interpersonal, and intrapersonal competencies. The HOCH-N project has been in operation in Germany since 2016. This project unites the following universities working together: Catholic University of Eichstatt-Ingolstadt; University of Applied Sciences Zittau/Goerlitz ets. Coordinated by the University of Hamburg, the HOCH-N joint project has created a nationwide network of universities to promote sustainable development and make its progress transparent. The joint project “Sustainability at Higher Education Institutions: Develop—Network – Report (HOCH-N)” (Bellina et al., 2020) team has set the goal of developing a common understanding of sustainability. Furthermore, HOCH-N is connected to regional and international networks. The features of HOCH-N include mutual learning and collegial exchange of information through various event formats. The HOCH-N network is aimed at universities of various types and scopes: technical universities and public and private universities of applied sciences. In addition to teachers and staff, students also take an active part in the project. Representatives of the universities of Hamburg and Bremen are the contact persons for the expansion of the HOCH-N network (Kahle et al., 2018). Universities have many forms and formats for integrating and sharing knowledge in the field of sustainable development (Alm et al., 2021). The activities of the Competence Center develop measures to implement sustainable development, accompanies the university in performing the sustainable transformation, initiates and promotes sustainable development projects. This system contains various modules such as “University Management,” “Education and Translation,” “Real Estate and Operation,” and “External Cooperation and Partnership.” Goals are defined, and key indicators are formed for each module. The measures in the four modules are jointly planned and implemented; working on them implies the interaction of students, university staff, and representatives of third-party organizations. The core competencies required for this goal include the ability to think systemically and strategically, as well as value-oriented and future-oriented, interpersonal and intrapersonal competencies. Utilizing various principles (didactics, learning goals, social transformations), one can establish the content of learning, processes, and goals. The further the university is in the process of sustainable development, more people are involved in them. Cooperation between the participants is an essential prerequisite for joint work and the interconnection of all actions. However, some universities are poorly connected with sustainability, demonstrating the complexity of technical

Experience of Cooperation of German Universities in the Field of Sustainable Development in Education

disciplines associated with linking the content of their subjects with sustainability (Rajabifard et al., 2021). Students can also actively participate in cooperation for sustainable development in education. It is crucial to use students’ resources and ideas for the university-wide process of sustainable development. Many German universities have the so-called “Green Offices” provided with financial resources and premises by the university.

4

Conclusion

Cooperation is practiced by many German universities. For an increasing number of German universities, the transfer of knowledge and experience in the field of sustainability is a matter of course and a part of university strategies. The result of such a transfer includes enhancement of the core competencies of those involved in sustainable development through joint learning processes. The HOCH-N joint project has developed a common understanding of sustainability. The principle of sustainability is understood as a socio-ecological, economic, and cultural task to preserve the natural foundations of life for all people around the world. Sustainable development implies an open, pluralistic approach. Universities face the task of reflection and momentum for the transformation of sustainability. German universities bring empirical and theoretical knowledge and methodological skills to this process. The transfer of knowledge and experience in the field of sustainability occurs in the organizational and structural composition of German universities in three areas of activity: teaching, research, and social mission. Sustainability transfer in research addresses and processes current, complex, and interdisciplinary problem areas in collaboration with practitioners, while transdisciplinary sustainability research is conceptually and methodically oriented. Sustainability transfer in the social mission focuses on communication, exchange formats, partner network management, and resource provision, thereby creating conditions and support structures for sustainability transfer.

References Alm, K., Melen, M., & Aggestam-Pontoppidan, C. (2021). Advancing SGD competencies in higher education: Exploring an interdisciplinary pedagogical approach. International Journal of

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Sustainability in Higher Education, 22(6), 1450–1466. https://doi. org/10.1108/IJSHE-10-2020-0417 Bellina, L., Tegeler, M. K., Müller-Christ, G., & Potthast, T. (2020). Education for sustainable development (ESD) in university teaching. BMBF project “Sustainability at universities: Develop— network—report (HOCHN),” Bremen; Tübingen, Germany. Bochkareva, T. N., Akhmetshin, E. M., Zekiy, A. O., Moiseev, A. V., Belomestnova, M. E., Savelyeva, I. A., & Aleynikova, O. S. (2020). The analysis of using active learning technology in institutions of secondary vocational education. International Journal of Instruction, 13(3), 371–386. Retrieved from https://files.eric.ed.gov/ fulltext/EJ1259515.pdf (Accessed November 15, 2021) Dusenko, S., Oleynik, A., Sharikov, V., Polyakov, V., Kryukova, E., & Melnichuk, A. (2016). Current state of innovative activities in education: The use of e-learning in Russian universities. Research Journal of Pharmaceutical, Biological and Chemical Sciences, 4, 1629–1637. Federal Ministry of Justice and Consumer Protection. (2021). Basic law for the Republic of Germany, Art. 20a. Retrieved from https://www. gesetze-im-internet.de/gg/art_20.html (Accessed November 15, 2021) Gleason, R., Kirillov, P. N., Koryakina, N. I., Ermakov, A. S., & Ermakov, D. S. (2020). Whole-institution approach in education for sustainable development: Theory and practice. Scholarly Notes of Transbaikal State University, 15(4), 36–43. Kahle, J., Jahn, S., Lang, D. J., Vogt, M., Weber, C. F., Lütke-Spatz, L., Winkler, J. (2018). Sustainability in university research (beta version). BMBF project “Sustainability at universities: Develop— network—report (HOCHN):. Lüneburg; Munich, Germany. Korotkova, T. S., & Zakirova, D. I. (2020). Sustainable development of higher education in modern economy. Turan University Bulletin, 4 (88), 121–127. https://doi.org/10.46914/1562-2959-2020-1-4-121127 Korotkova, T. S., & Zakirova, D. I. (2021). Environmental education and education for sustainable development: General and special. Turan University Bulletin, 1(89), 110–115. https://doi.org/10. 46914/1562-2959-2021-1-1-110-115 Nebessaeva, Zh. O., Kunzhigitova, G. B., & Bekbolatova, K. M. (2021). Current tasks of education development for sustainable development of pedagogical sciences. Science and Education: Modern times, 1(42), 26–36. https://doi.org/10.12737/2312-44312021-9-19 Rajabifard, A., Kahalimoghadam, M., Lumantarna, E., Herath, N., Hui, F. K. P., & Assakhaniki, Z. (2021). Applying SGDs as a systematic approach for incorporating sustainability in higher education. International Journal of Sustainability in Higher Education, 22 (6), 1266–1284. https://doi.org/10.1108/IJSHE-10-2020-0418 United Nations. (1987). Report of the world commission on environment and development: Our common future. Retrieved from https:// sustainabledevelopment.un.org/content/documents/5987ourcommon-future.pdf (Accessed November 15, 2021) Vazhenina, T. M. (2020). Sustainable development of peripheral municipality formations in the context of COVID-19 pandemic. Economy and Entrepreneurship, 14(12), 406–410. https://doi.org/ 10.34925/EIP.2021.125.12.079 Zinchenko, V. V. (2020). Global institutional transformations and the prospects of sustainable development of society in the context of the internationalization of higher education. Perspectives of Science and Education, 2(44), 10–18. https://doi.org/10.32744/pse.2020.2.1

Ethnocultural Identity as a Factor of Optimizing Interethnic Relations in Cooperation Zufar G. Galeev , Ildar G. Gizzatullin , Igor A. Vladimirov , and Radmir A. Iksanov

Abstract

The active global processes of globalization, accompanied by mass migrations of the population and rapid changes in the economic and political spheres, lead to the blurring of differences between cultures and individuals. The contemporary individual must be as universal as possible, which generates an identity crisis. Therefore, the role of ethnic and cultural identity increases to optimize interethnic and interindividual relations. The paper aims to comprehend the concept and the role of ethnocultural identity for the optimization of interethnic relations in today’s Russian society. Keywords

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Ethno-cultural identity Globalization Culture Ethnos Cooperative sphere Socio-cultural identity JEL Classification

R23

1

Introduction

The globalization processes are contradictory. Unification and leveling of society, accompanying these processes, generate negative factors that adversely affect the development of national cultures, leading to the narrowing of the scope of their dissemination and the loss of authentic Z. G. Galeev . I. G. Gizzatullin (&) Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] I. A. Vladimirov Bashkir State University, Ufa, Russia R. A. Iksanov Ufa State Aviation Technical University, Ufa, Russia

specificity in public life in general and in the cooperative sphere in particular. During the destruction of the social system and ideology that hold society together, individuals appeal to the most stable form of structuring the world—ethnocultural identity. The appeal to ethnicity helps a person in spiritual and semantic self-determination and personal identity, which actualizes the problem of the influence of ethnocultural identity on interethnic relations in modern society in terms of cooperation. As a complex and dynamic socio-cultural phenomenon, ethnocultural identity traditionally appears to be the most important factor in the life of a multinational Russian society. With the transition to the information society, this phenomenon is being transformed. Moreover, it generates a complex of problematic issues, such as the formation of a positive national and cultural identity. The paper aims to identify the most important factors of ethnocultural identity that positively affect interethnic harmony and stability in a multinational Russian society in the conditions of cooperative forms of its life, thereby contributing to its consolidation.

2

Materials and Methods

The essential interpretation of culture designates it as a value formation. Its content is nothing but positive, that is, a meaningful attitude and self-determination of the people’s will or the individual. Culture is the result of actualization of the spirit and will of the people (and a person), or else, a manifestation of their inner freedom: the ability to overcome difficulties and create something new. That is why culture is attractive: it has a meaning. The formation and development of culture are impossible beyond the meaning. If something loses its form and meaning, then it either does not become a culture at all or ceases to be one because the values contained in it are represented by a personal meaning, that is, an attitude to human needs (Galeev & Tikhonravov, 2014).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_47

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In this regard, the dynamic processes of socio-cultural and ethnocultural identity (i.e., the processes of achieving socio-cultural and ethnocultural identity) become significant and positively effective, consolidating people representing certain ethnic nations. These processes are fixed in a system of three types of meanings: cognitive, value, and regulatory (Petukhov & Petukhova, 2013). The system of meanings, in turn, provides people with order (i.e., their conscious role interaction) and contributes to their personal dignity (Smith, 1975) or self-worth as a person and as a representative and accomplice of some ethnic nation and ethnic culture. In Russia, which is a multinational country, cooperatives can often acquire multiethnic and, therefore, multicultural character and form. Thus, the achievement of social and personal order and dignity (self-worth) is the result of the socio-cultural and ethnocultural identity. If these processes are successful, the individual is aware of their involvement in a certain social community and, above all, in an ethnic community. Thus, the individual acquires a certain socio-cultural and ethnocultural identity. In this regard, we characterized both identities. M. V. Shakurova defined socio-cultural identity as “an element of self-consciousness manifested in the procedures of feeling, understanding, and realization by the subject of its certainty and continuity in the processes of acceptance, interiorization, and intraorization of cultural models transmitted by significant from their point of view social institutions, communities, groups, individual subjects” (Shakurova, 2007). To determine the essence and content of ethnocultural identity, we used the definition of I. V. Malygina. The scholar reasonably believed that ethnocultural identity is “a complex socio-psychological phenomenon, the content of which is both the individual’s awareness of a community with a local group based on shared culture and the group’s awareness of its unity on the same grounds, the psychological experience of this community, and individual and collective forms of its manifestation” (Malygina, 2005). Consequently, ethnocultural identity is one of the most important identities of a person. This phenomenon manifests itself in a person’s awareness of their belonging and involvement in a certain ethnic community. The value of this phenomenon is always high. Furthermore, it increases in conditions of social instability and uncertainty, which increases the importance of ethnocultural identity (Krasovskaia, 2020). In the case of positive (i.e., successful formation of ethnocultural identity), one can see stable dynamic development within ethnic and interethnic relations within the society as a whole and its communities and groups, including associations of mutually beneficial human social cooperation, which are cooperatives of different levels and forms. A completely different, opposite picture is observed when an ethnocultural identity has not been formed successfully. In

Z. G. Galeev et al.

this case, one deals with such a negative social phenomenon as marginality. Besides, there is an equally socially dangerous problem and condition that is referred to as separatism. Therefore, against the background of these phenomena, the formation and achievement of ethnocultural identity in a multicultural public space become an urgent problem. Thus, outside of an orderly and unambiguous binding to one of the cultures, marginality awaits a person. If a purely intra-cultural identity is achieved in a multicultural public space, this situation inevitably forms and manifests separatism. Thus, an acute contradictory situation is formed: “marginality—separatism” or alienation either from one’s own culture, which does not become “native” and close, and at the same time the lack of integration with some other culture, or separation from all other “neighboring” cultures. An alienated (value-negative, more precisely, non-value, non-meaningful) attitude to the ethnic (primarily, the ethnocultural and other ethnic) begins to coexist. A problematic situation arises when an individual’s own ethnogenetic culture does not attract an individual, becomes alien, and therefore does not make sense to them. The opposite situation can be observed: cultures of other ethnic groups do not attract an individual. There is a shortage or absence of simultaneous conjugation of endogenous (intrinsic) and exogenous (externally generated) socio-cultural and ethnocultural meanings. Meanings bind culture and ethnic culture and its subjects both from within and outside. Meanings are a kind of socio-cultural “glue” that holds things together. If the meanings are blurred, ethnic and national cultures fade away and crumble. The norm as a “binding” of an individual to one of the ethnic cultures without alienating it from other ethnic cultures and the national culture as a whole is being destroyed. In this case, one cannot achieve a sense of simultaneous attractiveness (magnetism) to one’s (native) culture and other cultures. In current conditions of public life, including cooperatives of various forms and levels, ethnonational and national consolidation either occurs with flaws, occurs in a limited way, or does not occur at all. The interethnic “social fabric” is thinning and tearing, which makes a cardinal negative contribution to ensuring and achieving sustainable development, that is, accelerates the process of undermining the parameters of general security. Many scientists, bearing in mind the multiethnic and multicultural space of Russia, suggest designating the Russian ethnos and Russian culture as a socio-and national-forming core. We believe that this suggestion is incorrect in ethnonational terms. In today’s conditions, ethnic groups and their cultures can and should be interfaced, giving rise to a dynamic area of coincidence of volumes, that is, cultural values, norms, languages, traditions, and sanctions. Simultaneously, the core of each culture is preserved, along with the subjectivity of its representatives: ethnic groups or nations. Moreover, when implementing the

Ethnocultural Identity as a Factor of Optimizing Interethnic Relations in Cooperation

conjugation principle (complementarity), ethnic groups and their cultures remain equal. Thus, in the area of the coincidence of volumes, one can find something that attracts and unites: a kind of socio-cultural magnetism or gravity is formed. In this area, a “centripetal core” is being formed: the basis for the consolidation and solidarization of representatives of various ethnic groups or cultures. Simultaneously, there is also a periphery—a border area where cultures, or rather ethnic cultures, meet or enter into a dialogue. Openness to the other culture while preserving one’s own, native, and innermost allows a person to be themselves and interact with others. The contradictory phenomenon of “marginality-separatism” is beginning to be overcome, a consolidated space of “value consensus” of interethnic relations is being formed.

3

Results

To achieve this state, it is necessary to fulfill the most important condition: to set and solve the problem of both national and ethnonational education. This step presupposes the solution of the problem of general and ethnonational corporate education in the conditions of cooperative activity. Besides, some other problems should be solved: • Cultivation in public life and in the life of cooperatives of the idea of achieving the simultaneous attractiveness of one’s (native) culture and other ethnonational cultures by means of socialization, inculturation, quota personnel policy, electoral law, and strengthening the sphere of the consent of interests; • Determination of the informational (knowledge), value, and normative-regulatory semantic complex of ethnocultural and intercultural space in the Republic of Tatarstan and the Russian Federation, its forms and content through systematic scientific research; • Formation of a strategic and tactical map (plans) of the intercultural space of useful cooperation activities and a mechanism for their implementation in the ethnocultural and intercultural space, both in society in general and in cooperatives in particular; • Enhancement of the role and status of national cultural associations in interethnic relations and national policy in society and in the cooperative sphere (giving them advisory functions and legislative initiatives at executive authorities of different levels and municipal authorities and local self-government bodies); • Increase in the role of patriotic education of Russian citizens since without the preservation of historical memory, without a national identity, patriotism is unthinkable;

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• Creation of conditions for socially useful integration and adaptation of migrants, as well as protection and improvement of the labor market by attracting migrants to the life of cooperatives and international clubs. The study of identity is of great practical importance for the scientifically-based migration policy and regulation of interethnic relations (Gerasimenko, 2020).

4

Conclusion

The development of ethnocultural identity in the realities of post-industrial society, including in the conditions of cooperatives, is complex and contradictory. On the one hand, the world becomes uniform and cosmopolitan; national identity and values are leveled in it. On the other hand, an ethnic group in the context of globalization may not just survive but even receive additional impulses for the development and preservation of its identity and the elimination of negative aspects of globalization. The most optimal activity in the process of forming a positive ethnocultural identity is to mitigate possible conflicts in the future in the process of identity formation through the mechanism of checks and balances in society (Dunaev et al., 2019), and cooperatives can become one of the most promising forms and effective factors for their optimization.

References Dunaev, V., Kurganskaya, V., & Shaikemelev, M. (2019). Identity politics in managing the system risks of nation-building: On the example of the Republic of Kazakhstan. Baltic Journal of European Studies, 9(1), 99–114. https://doi.org/10.1515/bjes-2019-0006 Galeev, Z. G., & Tikhonravov, K. A. (2014). Spiritual and humanitarian factors of economic labor behavior. Kazan Federal University. Gerasimenko, T. I. (2020). Main factors in the transformation of regional and ethnic identity. South of Russia: Ecology, Development, 15(3), 144–154. https://doi.org/10.18470/1992-1098-2020-3-144-154 Krasovskaia, N. R. (2020). Ethnocultural Identity. Vlast, 28(3), 75–81. https://doi.org/10.31171/vlast.v28i3.7313 Malygina, I. V. (2005). Ethnocultural identity: Ontology, morphology, dynamics (Synopsis of a dissertation of doctor of philosophy). Moscow State Institute of Culture. Petukhov, V. B., & Petukhova, T. V. (2013). Culturology: Textbook. Ulyanovsk State Technical University. Shakurova, M. V. (2007). Socio-cultural space as a condition for the formation of a person’s socio-cultural identity. Retrieved from http://www.e-culture.ru/Articles/2007/Shakurova.pdf (Accessed July 20, 2012) Smith, P. (1975). Comprehension and learning: A conceptual framework for teachers. Holt, Rinehalt & Winston.

Structuring the Strategic Management System for the Sustainable Development of Cooperative Formations Ludmila V. Marabaeva , Elena G. Kuznetsova , Tatyana E. Shilkina , and Roman R. Hairov

Abstract

1

Existing studies, including by Russian scientists, confirm that the possibilities and advantages of the Concept of Sustainable Development, consisting in a systematic approach to ensuring the successful operation of companies in the economic, social and environmental spheres, make it very promising for a wide range of business structures. The research base was made up of large agricultural enterprises of the Republic of Mordovia, on the example of which the main structural and substantive individual components: economic, social and environmental, were identified. The results confirming that the goal of this study has been achieved were obtained using monographic, graphic and analytical research methods, as well as statistical, index and other methods. The study examined the structural and substantive characteristics of cooperative formations. The result of the work was the establishment of their relationships of cooperative formations. Recommendations for cooperative formations and their expansion were made. Keywords

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Strategic management Sustainable development System Elements Enterprise JEL Classification

B410

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D700

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G390

. . l190

M210

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R150

L. V. Marabaeva National Research Mordovia State University, Saransk, Russia E. G. Kuznetsova (&) . T. E. Shilkina . R. R. Hairov Saransk Cooperative Institute (Branch) of Russian University of Cooperation, Saransk, Russia e-mail: [email protected] R. R. Hairov e-mail: [email protected]

Introduction

Modern economic conditions are characterized by the increasing importance of sustainable development of cooperative formations for obtaining long-term competitive advantages. In turn, this presupposes a clear structuring of the strategic management system. The paper`s goal is to identify structural and logical relationships of the main elements of cooperative formations and substantiate the directions of their development.

2

Methodology

The problem of sustainable development in Russian science is highlighted in the works of such specialists as Amui et al. (2007), Blackburn (2007), Dahlsrud (2008), Jain (2011), Marshall and Brown (2003) and others. However, they mainly have the character of theorized nature and do not offer specific solutions in terms of tools for the development and implementation of the concept of sustainable development in the activities of individual industries, considering their characteristics (Bobylev, 2015; Vertakova, 2017). In our opinion, one of the tools for solving this problem is to substantiate the directions for improving the system. All this fully applies to cooperative formations operating in the country. We use data published in scientific periodicals, Internet resources, materials of a number of agricultural cooperation enterprises of the Republic of Mordovia to solve the set tasks.

3

Results

In the context of the peculiarities of its activities it is possible to develop the structure of a specific business entity, which will fix the areas of responsibility of units for a specific strategic management of sustainable development of a cooperative formation.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_48

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Analysis of the practice of functioning of cooperative enterprises on the territory of the Republic of Mordovia has determined the optimal (Table 1). A feature of cooperative formations is a small number of employees, narrow specialization and, in most cases, activity in the domestic regional market. The head of the enterprise is responsible for the strategic management of the economic aspect of sustainable development (Table 1). Its functionality is to ensure the level of sales and market share that will allow the company to maintain revenue and profit growth for sustainable development. As for the production area, it should be noted that the chief engineer is responsible for the strategic management of sustainable development. His responsibilities include ensuring uninterrupted and efficient production, developing and implementing modern production technologies, as well as developing innovative products, which, in turn, will allow the company to offer a quality product to the market and satisfy consumer demands. The sales manager, who must ensure uninterrupted supplies of products to consumers, develop logistics, reduce delivery costs, is responsible for the sales direction. As for the financial direction it should be noted that it is advisable to assign responsibility to the chief accountant of the company, who ensures the efficiency of cash flow, preparation of objective and timely reporting that can satisfy the needs of key stakeholders, as well as internal users. The quality in other areas should be ensured by the deputy head of the cooperative formation. The procurement aspect provides for the responsibility of the deputy head in ensuring timely supplies of the necessary materials, working out the possibility of changing suppliers to reduce the cost of material costs. In our opinion, his responsibilities include the development and implementation of a long-term social program, ensuring safe and comfortable working conditions, which will increase labor productivity. Responsibility should be assigned to the service of the chief power engineer. If the Table 1 The system of cooperative formation

company does not have one, then to the deputy head of the company. The next important element of the system of strategic management of sustainable development of an enterprise is the process of strategic management itself. In the context of sustainable development of an enterprise, the following elements can be distinguished: mission of enterprise, strategic concept, strategic goals, strategic program, strategic analysis, adjustment of strategic goals and strategic program. A mission can be seen as a philosophy of an enterprise that reflects its values and beliefs. The mission should be based on the strongest sides of the enterprise, because the strategic goals and strategic concept. We consider that quite often the mission is considered by management as the main strategic goal, and we can offer its following basic formulation: “Meeting the needs and expectations of stakeholders by producing a unique product or product with special properties and developing the local community, taking into account the interests of the current, and also for future generations” (Vostrikova, 2014). This formulation, in our opinion, rather accurately reflects the direction of the business interests of the enterprise. It reflects the main directions of the company's development, representing the assumptions that are important for developing a strategy, as well as a strategic idea. Also, the strategic concept is a guideline in the development of the strategic goals of the enterprise. The strategic concept can be structured as follows: strategic assumptions; strategic idea of enterprise development; directions of the enterprise development. The next are the strategic goals of an enterprise. They are formulated in accordance with the mission and strategic vision of the enterprise and represent the long-term performance results that it seeks to achieve. Strategic goals can be set both as a whole for the entire enterprise, and for its individual structural elements or aspects of activity. These goals must meet certain conditions: they must be

Directions of the sustainable development process

Responsible for the direction

Purpose

Economic

Head

Driving revenue and profit growth

Production

Chief engineer

Development and implementation of modern technologies of activity, as well as development of innovative products

Sales

Sales manager

Ensuring uninterrupted supplies to customers, developing logistics

Financial

Chief accountant

Creation of efficient cash flow

Supply

Deputy head

Development of an uninterrupted material supply system

Social

Deputy head

Improving the quality of life of company employees

Ecological

Deputy head

Efficient use of non-renewable resources

Source Compiled by the author

Structuring the Strategic Management System for the Sustainable Development of Cooperative Formations

measurable; clearly and accurately formulated; goals should be ambitious but achievable; there must be a time frame for achieving goals, and they are also divided into three groups —economic, social and environmental, which corresponds to the main aspects of sustainable development. However, the management of the enterprise can supplement or change some of the goals to better match their own strategic vision. On their basis, a strategic program for sustainable development is formed, including specific development projects (Mantseva, 2012). These elements are designed to provide the strategic management process with the methods necessary for managers, to organize feedback, reflecting the process of implementing the strategic goals and the strategic program for sustainable development, as well as their effectiveness.

4

Discussion

Strategic management methods, including sustainable development, are not comprehensively used, as it was revealed during the analysis of the current practice of the Republic of Mordovia. The information support system for activities is also not adapted to the tasks. Personnel and managers often apply their approach to strategic analysis, which consists in a simple study of the actions of counterparties in the market, as well as regular interviews of staff about the qualitative changes as a result of the implementation of social policy of enterprises. In our opinion, such methods do not fully allow obtaining timely and necessary information for making strategic decisions and tracking the effectiveness of the implementation of given strategy. Thus, we consider it necessary to substantiate the possibility of using the following methods of strategic analysis in cooperative enterprises: • Gap analysis. As we know, the purpose of this method is to determine whether there is a gap between the goals of the enterprise and its capabilities and, if it's yes, to establish how to “fill” it; • Market dynamics analysis, life cycle model. The analysis of the market dynamics of this product is based on the well-known model of the product life cycle, which is an analogy to the life cycle of a biological being; • A balanced scorecard made using weighted and specially selected indices-indicators that will comprehensively reflect the situation. This system allows specifying strategic goals, as well as transforming the company’s strategy into specific action plans for performers. The balanced scorecard is developed both for the enterprise as a whole and for individual structural units.

5

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Conclusion

Thus, the introduction of these methods into the practice of strategic analysis of the activities of a cooperative enterprise will improve the quality of the strategic information received, as well as not miss the necessary weak signals and fully have all the important information intended for making strategic decisions and monitoring the strategy implementation process. We also consider it important to systematize the use of strategic management methods. This will allow management to more accurately track the progress of strategy implementation and make targeted adjustments as needed. Thus, the introduction of these changes will reduce the time spent on making strategic decisions and formalize the strategic management system. Based on the above, we can conclude that methodological support is inseparable from informational support. Information is central to strategic decision-making, implementation and control. The result of all actions depends on the quality of the existing system of information support for strategic support (Orekhova, 2017). However, as practice shows, an internal database of the necessary data in cooperative enterprises exists, but access to it is difficult. In our opinion, they will make it possible to streamline and systematize the process of collecting and storing data, make it easier for those responsible for executing the strategy to access them, thus reducing the distortion of information and the time it takes to obtain it. We believe that this addition to the information support of the strategic management of the enterprise will contribute to more effective strategic decision-making and reduce the risks of their implementation. Responsible managers will have complete information on the nearest environment of the enterprise, as a result of which the decision to make changes in strategic goals, measures to achieve them or a radical change in strategy will be taken faster. This will undoubtedly affect the company's ability to adapt to different situations and implement the adopted development strategy. The introduction of these recommendations into practice will make it possible to implement an integral and structured system of cooperative formations, which presupposes the presence of a mission, strategic concept, strategic goals, methodological and information support, etc. This system will allow the management to set strategic goals that meet modern challenges, designed to ensure business development in conditions of the negative influence of external factors, as well as to more effectively fulfill the social and environmental obligations.

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References Amui, L. B. L., Jabbour, C. J. C., de Sousa Jabbour, A. B. L., & Kannan, D. (2007). Sustainability as a dynamic organizational capability: A systematic review and a future agenda toward a sustainable transition. Journal of Cleaner Production, 142, 308– 322. Blackburn W. R. (2007). The sustainability handbook: the complete management guide to achieving social, economic and environmental responsibility. Earthscan, 385p. Bobylev S. N. (2015). Modernization of the economy and sustainable development. Economics, 201p. Dahlsrud, A. (2008). How corporate social responsibility is defined: an analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15, 1–13. Jain, H. (2011). Green ICT organizational implementations and workplace relationships. Handbook of Research in Green ICT: Technical, Business and Social Perspectives, 13, 290–299.

L. V. Marabaeva et al. Mantseva, E. A. (2012). Sustainable development of an industrial enterprise: Concept and evaluation criteria. Bulletin of UrFU Series Economics and Management, 1, 25–33. Marshall, R. S., & Brown, D. (2003). The strategy of sustainability: A systems perspective on environmental initiatives. California Management Review, 46, 101–126. Orekhova S. V. (2017). Sustainable development of an industrial enterprise in the context of neo-industrial transformation: Monograph. In Ya. P. Silin (Ed.), Responsible for the release of Ministry of Education and Science of the Russian Federation, Ural Branch of the Free Economic Society of Russia of Russia, Ural. State University of Economics. Publishing House of the Ural State University of Economics, Yekaterinburg 207p. Vertakova, Yu. V. (2017). Sustainable development of industrial complexes based on the modernization of the mechanism of spatial distribution of economic resources. RuSciences, 352p. Vostrikova, V. V. (2014). Sustainable development of Russia in a changing world: Threats and prospects. RuSciences, 30p.

Legal Regulation of Contractual Relations in the Hanafi Madhhab Valery V. Andreev , Elena I. Antonova , Tatiana N. Evgrafova , Nikolay I. Petrenko , and Alexander V. Nadezhdin

Abstract

JEL Classification

The article is devoted to the study of the specifics of the legal regulation of contractual relations in the Hanafi madhhab. The relevance of the topic under study is due to a combination of theoretical and practical factors that determine the special place and significance of contractual regulation in the political, legal and socio-economic development of Islamic states. The purpose of the article is to form a general theory of contractual and legal regulation in Islamic law, defined as a system of theoretical views and initial scientific provisions, expressed in the categorical and conceptual apparatus of the general theory of law, which makes it possible to reveal the essence and content, functions and forms of manifestation, levels and types of impact on public relations with the help of contractual and regulatory means.

K12

Keywords

Islamic law law school

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Muslim law Hanafi madhhab Contractual relations

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Hanafi

V. V. Andreev . E. I. Antonova (&) . T. N. Evgrafova . N. I. Petrenko Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] V. V. Andreev e-mail: [email protected] T. N. Evgrafova e-mail: [email protected] N. I. Petrenko e-mail: [email protected] A. V. Nadezhdin Chamber of Advocates of the Republic of Mari El, Zvenigovo, Russia

1

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K15

Introduction

Trade in the Islamic legal tradition has always been positioned as the main source of replenishment of the state budget. Therefore, the legal regulation of trade operations was constantly in the field of vision of the authorities of Muslim countries. The origins of this tradition go back to the first Muslim community in Medina, where the Prophet Muhammad paid special attention to the development and regulation of trade. In particular, it is interesting that the Muslim trade turnover of the early period actively operated with checks in settlements. The term “check” itself is of Persian origin. Checks were freely exchanged for money both in places of transactions and in most shopping centers in the Arab East. According to the eleventh century Arab historian Abu Shuja ar-Rudwari, checks issued by many trading companies of the Maghreb were paid in the eastern regions of the Caliphate faster than the tax (kharaj) was collected into the treasury (Rakhmanov & Ab, 2003).

2

Methodology

The research methodology included a complex of philosophical, general scientific and special scientific methods of cognition. The objectives and goals of the study predetermined the need to use the principles of systemic and level approaches. The inclusion of general scientific methods of cognition in the research methodology made it possible to analyze the structure of the legal regulation of contractual relations in the Hanafi madhhab.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_49

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A special role in the methodological arsenal was played by the comparative legal and formal legal methods, which made it possible to comprehensively study the legal nature of the contractual and regulatory mechanism in the Hanafi madhhab. The statistical method, which was used based on the analysis of the jurisprudence of the Supreme Court of Pakistan, made it possible to investigate the dynamics and prevalence of the application of contractual principles in procedural law.

3

Results

Such a legal relationship between two subjects, when, by law, one of them may be obliged to do something or refrain from any action, to transfer something or perform something in favor of another subject, is an obligation in the Hanafi madhhab (as, however, in other schools of law). The Hanafi madhhab provides for the following obligations, which have a number of characteristic features: 1. Obligations arising from an unlawful intentional (teammud) or negligent (tephritis) act involving damage (madarrat) for another person. Such an act gives the victim only a reason to demand compensation for the damage suffered. Sometimes, for example, in the case of murder or injury, the victim may demand that the perpetrator suffer the same damage (bloody revenge, kysas), or that he pay the vira (diyat) established by law, or be subjected to some other punishment. The practice of collecting diyat is quite widespread in the judicial practice of the “countries of the Hanafi madhhab”. So, on February 13, 2020, the Supreme Court of Pakistan, acting as an appellate instance in the framework of criminal case No. 887 of 2018 on appeal against the decision of the Lahore High Court of November 7, 2018, considered the issue of recovering a diyat from the person guilty of the murder in the amount of 2,174,577 rupees. Moreover, it is interesting to note that the established size of the diyat is often tied to the weight of precious metals. In particular, as the court noted in the cited judicial act, Article 323 of the Pakistani Penal Code requires the federal government to consider the “financial situation of convicts” when establishing the size of the diyat. However, the amount of diyat payable by all convicts is set in an amount equivalent to 30,630 g of silver (that is, excluding the property status of the convicted person) (Official website of the Supreme Court of Pakistan, 2021). Further, responsibility comes not only for illegal acts committed personally, but also for damage caused by persons in the care of others (slaves, minor children), and even for damage caused by animals belonging to someone. 2. Liabilities arising from the actual situation:

• corresponding obligations of the owners of neighboring lands; • obligations between co-owners of property received by inheritance or on other grounds; • obligations arising from kinship between parents and children—for example, the obligation of mutual maintenance (nafakat). Obligations arising from the unilateral manifestation of the will, in their essence, are the so-called vows (nazr). Their essence lies in the fact that a person vested with the right by law undertakes an obligation to perform any action or refrain from doing it. As a rule, such a vow is of a religious nature and is confirmed by an oath. The fulfillment of such a vow, as in Roman law, is mandatory. But, since such a vow usually has something that cannot be evaluated in monetary terms (for example, performing a prayer, not wearing a certain kind of dress, not entering a certain house, etc.) as its subject, then if it is not fulfilled, it is required an atoning sacrifice (keffaret), and not a specific reward for damage (arsh). The atoning sacrifice consists in the release of the believing slave, in the feeding or clothing of ten poor people, or in fasting for three days. Obligations arising from the mutual expression of the will of the parties, that is, through the conclusion of a contract or agreement (akd). The agreement can also be made dependent on a suspension condition (shart) or a term (ajal), which in Muslim law, opposite to ours, postpone not only the demand, but even the right itself. Until the condition is met or until the due date, the contract is considered mavkuf, that is “resting”. The subject of the agreement (maqud aleigi) must be specific and reliable and must be in civil circulation.

4

Discussion

It would seem that disputes about the ownership of any object of law in the judicial authorities of the “countries of the Hanafi madhhab” should have come to naught under such clear and obvious conditions for concluding an agreement and transferring ownership of a thing. However, we have to state the opposite. Thus, the Supreme Court of Pakistan, acting as an appellate instance in civil case No. 20 of 2014 (appeal against the decision of the Peshawar High Court of 05.06.2013 No. 221 O 2012), stated in its decree dated 11.02.2020: “The plaintiffs argued that they bought this property from sellers for six million rupees and claimed that they were the owners… However, they did not list the sellers as parties to the claim. Proof of payment under the sales contract was also not provided. Despite their alleged purchase of the property, ownership remained with the corporation, which continued to receive rent from the

Legal Regulation of Contractual Relations in the Hanafi Madhhab

shops built on the site. The plaintiffs did not provide any explanation as to why they bought the property when the sellers did not transfer them to their actual or legal ownership, and also did not give them the right to collect rent from the tenants of the shops. At the time of the alleged sale, and thereafter, throughout the term of the agreement, the rent was received by the corporation and not by the plaintiffs or alleged sellers. The lower court ignored all these shortcomings. It also placed the burden of proof on the corporation and ruled to grant the claim because the corporation was unable to establish its ownership of the property… In addition, Article 126 of the eve of E-Shahadat provides that when another “owns the property, the burden of proving that he is not the owner lies with the person who claims that he is not the owner” (Official website of the Supreme Court of Pakistan, 2021). The word “bai” (equivalent) means “to give something in order to get back something else” in Arabic. In a legal sense, it means the transfer of property in order for the opposing party to transfer some equivalent (ivad) to the property (Berg, 2006). Here we turn to property relations, in the center of which, in any case, is the concept of a thing. In the Arabic language, a thing is called she, and this term means what exists. But in the Hanafi madhhab, only objects included in the legal turnover and possessing the characteristics of property (mal) are understood as things. The madhhab classifies all things into: movable (menkul) and immovable (akar); replaceable (misliy) and non-replaceable (kymy), corporal (mal) and non-corporeal, or rights (haqq); main (rukn), that is, juridically independent, and belonging (teba), following the fate of another thing; specified (ain) and unspecified (dein) (Rakhmanov & Ab, 2003). Islamic law states that only an adult, sane and prudent person can be a merchant. Minors were forbidden to engage in trade, even with parental consent. However, they could act as intermediaries between buyer and seller (Rakhmanov & Ab, 2003). The norms of the Hanafi madhhab provide for the ability to sell leased property, but the tenant retains the right to own the leased property (mulk) until the lease expires. Mazhab allows the new owner to terminate the purchase and sale agreement if the remaining lease term does not suit him. The sales contract was sealed by reading the formula of the legal act (siga). Muslim law established a number of prohibitions when making a purchase and sale transaction. So, it was forbidden to sell goods in installments without determining the price, at a clearly inflated price, as well as to sell someone else’s goods without the consent of the owner. In Russian legal and commercial reality, it is common to define an installment plan under the word “credit”. But from the point of view of its legal and economic essence, this term

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is not entirely correct in Muslim law, because it necessarily provides for the “payment” of an installment plan, which is directly prohibited by Sharia (riba). The Hanafi School of Law in the field of commercial turnover established specific terms for the protection of rights. Thus, the spheres of property and legal relations (both contractual and non-contractual) were formed quite a long time ago in Muslim law and in the Hanafi madhhab. The above-mentioned AAOIFI standards are designed to strengthen the systematic and normative regulation of these relations. These standards do not relate to independent sources of law, but group disparate legal regulations in a way that allows them to be applied in combination to traditional contracts that have developed in business. Let’s analyze the translated into Russian standards of Mudarab, Musharak, Ijara, Murabakh, Mubarah for the final buyer, Sukuk, Transformation of a traditional bank into an Islamic bank with an illustrative example. The purpose of Shariah Standard No. 13 “Mudarabah”, issued on May 16, 2003 by the Shariah Council in Medina (Saudi Arabia), is to clarify and interpret the rules of the Hanafi madhhab for the Mudarabah (limited and unrestricted) contract, without regarding whether the interested party acts as Mudariba (entrepreneur, manager) or as an investor (Baishev et al., 2011a). The Mudarabah or “Kirad” agreement is a partnership agreement for making a profit. The content of the agreement is the combination of the capital of one party (rabbul-mal) and the entrepreneurial activity of the other party (mudarib) for capital management. In other words, this is an agreement in the investment sphere between an investor and an entrepreneur with the division of profits in accordance with established proportions. Mudarabah contracts are unlimited and limited and, in terms of their essential characteristics, refer to contracts of trust management of property (similar to the norms of Chap. 53 of the Civil Code of the Russian Federation). This type of contracts was previously very actively used in the field of trade, and in modern conditions, in addition to the sale and purchase of goods, they are very widely used in the provision of services, agricultural and industrial production. The business philosophy of traditional banks, based on the practice of granting loans and receiving from interest income, is prohibited by the fiqh and the Hanafi imazhab, because it has signs of usury (riba). The Mudaraba agreement has become an investment instrument for the development of Islamic business. It is actively used to attract investment funds in various areas of the economy and business. The purpose of Musharak, Shariah Standard No. 12, dated May 16, 2002, is to clarify and interpret the general

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Shariah clauses of contractual partnerships (sharika), including provisions on joint partnerships with joint and several liability (sharika al-inan), partnership of obligations (sharika al-wujukh), professional partnership (sharika al-amal), partnership with a gradual buyout of a share of one of the parties (musharaka al-mutanakis) and modern types of partnership. The essence of a contractual partnership (sharika) is an agreement between several parties in order to combine assets, labor and other resources to make a profit. Sharika agreements are divided into forms of partnership established by fiqh and modern corporations. Fiqh partnerships include the following types: contractual partnerships, limited partnerships, professional partnerships and partnerships for complex work. The forms of modern corporations include: joint stock company (sharika al-musahama); joint and several liability company (sharika at-tadamun); limited partnership (sharika at-tausiya al-basita); limited liability company (sharika at-tausya bil-askhum); simple partnership (sharika al-muhassa); “diminishing” partnership (musharaka al-mutanakis). As we can see, in a general sense, the above provisions comply with the norms of Russian civil legislation on legal entities (Chap. 4 of the Civil Code of the Russian Federation), but are not limited to this, because they include provisions and contractual obligations. In Islamic law, the most common partnership is mutual partnership (shirkat al-inan). It is mentioned by both the Qur’an and the Sunnah. So, Sura 38 “Sad”, ayah 24 of the Qur’an reads: “Truly, many partners act unjustly towards each other, except for those who believe and perform righteous deeds. But there are few of them” (Baishev et al., 2011b). On this occasion, the words of the prophet are known: “Truly, it is better for you to leave your heirs with prosperity than to leave them poor and asking others for help” (Sahih al-Bukhari (Summary) 2002). Partnership is the main organizational form in the Islamic business turnover. It is considered to be embodied in practice by the unanimous opinion on the admissibility and legality of associations for the purpose of making a profit. Various forms of partnerships, for which many generations of Islamic lawyers have developed legal support, have become the basis for legal registration of various types of modern corporations. This primarily applies to joint stock companies, whose financial condition and entrepreneurial potential are derived from the volume and quotations of shares, and not from the individual qualities of shareholders. Sharia law allows for the extrapolation of general rules for partnerships to modern corporations. However, at the same time, Sharia norms on representation in partnerships, on the regulation of administrative and accounting procedures are based on the concept of public good (maslaha). This concept is socially oriented and acts as the main

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criterion for assessing the social usefulness and significance of actions performed by people. The basis of sharika contracts is the concept of agency relations (wakala), in which each partner of the contractual relationship simultaneously acts as a principal, and at the same time, acts in the interests of partnership as an agent of other partners (the analogue in the Russian legal system is Chap. 52 of the Civil Code of the Russian Federation). Sharika al-mufawada is a specific type of partnership and, unlike other partnerships, combines the characteristics of agency relations and guarantees at the same time. The Hanafi madhhab legalized the permission to conclude partnership agreements with persons of non-Muslim faith and banks of non-Muslim countries, provided that they would be guaranteed to comply with the rules and principles of Sharia in their joint activities. The basis for this, from the point of view of Sharia lawyers, is the hadith that Muhammad forbade entering into partnerships with Jews and Christians, unless the purchase and sale is in the hands of a Muslim and, accordingly, the rules of fiqh will be observed and applied (Baishev et al., 2011b). The issue of the distribution of proceeds and profits, which is the termination of the existence of indivisible property due to the division of assets, when the rights of each partner are determined, and the common shares are divided into individual shares of each partner, by virtue of which this procedure is defined as the identification of shares or profits of specific persons, is interesting. A contractual partnership (sharika al-aqd) in a khanifat madhhab is an agreement between several parties on the combination of their assets, services and obligations, as well as responsibility for the purpose of making a profit. A property-based partnership (sharika al-milk) is the pooling of assets of two or more persons on the basis of sharing the profits or income received, or benefitting from an increase in the partnership’s assets. This combination of assets for the purpose of making a profit assumes liability for losses (if any arise). Ownership partnerships can arise from circumstances beyond the control of the parties, such as inheritance rights arising from the death of a person. This type of partnership can also be created at the request of partners, for example, when two or more parties acquire shares of one asset. Sharika al-muzaraa (crop sharing partnership) is a partnership where one party provides land to the other to cultivate and processing in exchange for a certain share of the crop. Sharika al-Mugarasa (agricultural partnership) is a partnership where one of the parties provides a piece of land free from trees to the other party for planting trees on the terms of the subsequent division of trees and fruits in a certain ratio. Sharika al-moussaka (irrigation partnership)—a partnership where one of the parties provides certain plants that

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produce edible fruits to the other party for irrigation in exchange for a certain share of the harvest of these fruits. Sharika al-mufawada is understood as any partnership where the parties are equal in all respects, including the size of the contribution, the degree of ownership of the rights to act, as well as the degree of responsibility from the date of formation of the partnership until the date of expiration of the partnership.

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Conclusion

Shariah standard No. 9 “Ijara” in terms of legal regulation is similar to the institution of lease in Russian law (Chap. 34 of the Civil Code of the Russian Federation). This standard, adopted on May 16, 2002, synchronizes leases and leases with the subsequent transfer of ownership, including rules relating to the promise to lease property, and ending with the rules for restoring the lessor’s rights to the ownership of the leased property with Sharia law (Gusmanov, 2011). Ijara is a lease agreement in which a business entity acquires and leases property to a client for rent. The subject of the contract may be unused property, and its use must strictly comply with the requirements of Sharia. Also, the subject of an Ijarah agreement can be an asset that is in the indivisible shared ownership of the lessee and the lessor, regardless of whether they are partners or not. In this case, the lessee can use the leased share of the property in the same way as the lessor, that is, with a temporary division or identifying a separate part of the property. The subject of the Ijarah agreement can be both immovable and movable property. The agreement admits persons of non-Muslim religion as one of the parties, provided that the leased property will be used in accordance with the requirements of Sharia. It is strictly forbidden to conclude a contract if the lessor knows in advance or has reason to believe that the property will be used for purposes prohibited by Shariah. Ijarah is legal in accordance with the Qur’an, Sunnah, as well as Ijma and Qiyas. The legitimacy of Ijarah has also been unanimously confirmed by scientists because it is necessary for reasonable reasons—it is a convenient way for people to use property that is not their property, which is beneficial because not everyone can own the property they need.

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As for the Ijarah muntahiyya bittamlik deal, it differs from the usual Ijarah only in the landlord’s promise to transfer ownership after the expiration of the Ijarah contract. From the point of view of Sharia, the legality of this form of lease is confirmed by the resolution of the International Islamic Academy of Jurisprudence, which in its Resolution No. 110 (4/12) (p. 253–255) clarified the permitted and unauthorized forms of Ijara muntahiyya bittamlik. It should be noted that the permitted form of Ijara muntahiyya bittamlik differs from the sale and purchase on credit (financial leasing, purchase and sale in installments), which is usually practiced by banks, as follows. Both the sale and purchase rules and the rules on lease apply to the subject of the contract in lease and purchase, therefore, ownership passes to the lessee (buyer) when he pays the last part of the amount, without concluding a separate contract for the transfer of ownership. In relation to Ijara muntahiyya bittamlik, the Ijara rules apply to the Ijara subject until the end of the contract, after which the tenant acquires title to the property in the manner described in the standard. The reason for terminating the Ijara agreement in case of unforeseen circumstances is that the lessee will be forced to incur losses, fulfilling the obligation to pay rent payments for the unnecessary right to use the property, without having the right to terminate it due to these circumstances, despite the fact that, it wasn’t his fault.

References Baishev, R. I., et al. (2011a). Mudarabah: Sharia, Standard No. 13. Organization of accounting and auditing of Islamic financial organizations, pp. 28–39. Baishev R. I., et al. (2011b). Sharika (musharaka) and modern corporations: Sharia, standard No. 12. Organization of accounting and auditing of Islamic financial institutions (AAOIFI), pp. 40–49. Gusmanov, G. F. (2011). Ijara, Ijara by subsequent redemption. Shariah standard, 9, 36. Official website of the Supreme Court of Pakistan. https://www. supremecourt.gov.pk/latest-judgements (Data accessed: October 15, 2021). Rakhmanov A., & Rakhmanov Ab. (2003). Islamic law. Tashkent, 216. Sahih al-Bukhari (Summary) (2002). 1, pp. 327–329. Van den Berg, L. V. S. (2006). The basic principles of Islamic law according to the teachings of the imams Abu Hanifa and Shafi’i. M., pp. 75–109.

Unifying Transformations as a Condition for the Sustainable Development of Consumer Cooperation Marina I. Drozdova , Lydia P. Nagovitsina , Zoya A. Kapelyuk , Svetlana A. Gorodkova , and Vera V. Bakaeva

cooperative organizations and the system of consumer cooperation as a whole.

Abstract

The deep and protracted systemic crisis in consumer cooperation is triggering science and practice to find solutions to the current situation and thus ensure its sustainable development. The authors recognize unifying transformations, and primarily sectoral ones, as one of the most appropriate ways to solve this problem, because only the symbiosis of interrelated activities of a diversified, integrated and diversified subject of the rural economy allows effective functioning and realizing the goal of consumer cooperation activities—meeting the needs of its members. The article discusses the advantages of the procurement-production-trade complex with the key industry “harvesting”, confirmed by practical results. The scientific novelty of the study lies in the characterization of the types of functioning of sectoral transformations, a new format for combining industries is proposed: the procurement, production and trade complex of public catering, in which public catering is a priority activity, which implements not only economic, but also social tasks. Public catering complexes are proposed to be created in those cooperative organizations in which there is no interconnected association of industries, as well as in remote and hard-to-reach, but large centers of trade services for the population. The functions of the complex will expand by adding the function of a communications center that forms and complements the cultural and leisure infrastructure of rural settlements, which together will ensure the sustainable development of regional M. I. Drozdova (&) . L. P. Nagovitsina . Z. A. Kapelyuk . S. A. Gorodkova . V. V. Bakaeva Siberian University of Consumer Cooperation, Novosibirsk, Russia e-mail: [email protected] L. P. Nagovitsina e-mail: [email protected] Z. A. Kapelyuk e-mail: [email protected]

Keywords

..

Unifying transformations Consumer cooperation Sustainable development Integrated diversified complexes Public catering

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.

JEL Classification

Q13

1

. . . . . P13

Q56

L30

L73

L83

Introduction

Modern cooperation is in the deepest crisis, and in the light of this all-Russian problem, the task of getting it out of a state that threatens the very existence of the system is of particular relevance. The problem of ensuring the sustainable development of consumer cooperation is not new (Solovieva & Gavrilova, 2016). It implies the development without any destruction or negative transformations of the rural mentality, the formed economic ties between the subjects of the economy, the resource potential of rural areas and its use, the habitat of the population, etc. The specifics of the activity of consumer cooperation does not imply the creation of innovative networks, technology parks and entry into special economic zones. Consumer cooperation has a different goal: to meet the needs of its members, who mainly live in rural areas, where the possibilities for the development of rural industry are limited and the population's monetary income is relatively low (Kapelyuk, 2013; Zolotareva, 2009). Therefore, intra-industry complexes, as the most appropriate form of unifying transformations for real conditions, receive the greatest development in cooperation.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_50

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The essence of unifying transformations is considered by the authors in the article “Unifying Transformations are a Necessary Vector for the Development of Cooperatives”, published on the pages of the first issue of the scientific and theoretical journal “Fundamental and Applied Research of the Cooperative Sector of the Economy” in 2020 (Nagovitsina & Drozdova, 2020). It shows the content of sectoral, industry and territorial unifying transformations, but in the context of this article, only industry unifying transformations are considered, because they determine the trajectory of sustainable development, since only large associations— conglomerates are able to survive and survive in the era of globalization. As conglomerates, whose quantitative characteristics in consumer cooperation will be an order of magnitude lower than in corporate business, sectoral unifying transformations in the system are represented by wholesale and retail associations, procurement-production and procurement-production-trade complexes. The history of the problem of creating such complexes is not new. We first identified it in the Program for the Stabilization and Development of Consumer Cooperatives for 1998–2002, later the authors addressed this problem more than once in their studies, however, only some regional unions of consumer societies understood and appreciated in practice the advantages of industry associations in which the success of one industry ensured the achievements of another interconnected industry and the complex as a whole (Consumer cooperation in Russia, 2016). Procurement-production and procurement-productiontrading complexes have become quite widespread. They include procurement, production and trading activities in a single interconnected chain, and the most important element that sets the tone for its functioning is the procurements from the population (products of agriculture and livestock from their own farmsteads, collection of wild mushrooms, berries, ferns, hunting and fishing products), which belong to the traditional branches of consumer cooperation and are in demand by the population (Khramtsova, 2013). The scale and efficiency of the entire complex depend on their volumes, therefore procurement, without a doubt, acts as a conglomerate industry, a driver of sustainable socio-economic development, increasing the place and role of consumer cooperation in the rural economy.

2

Methodology

In the course of the study, general scientific methods, including comparison, deduction, induction, generalization and interpretation of the data obtained, as well as the author's method: structural and logical construction of chains of dependencies and relationships of socio-economic phenomena and processes, were used.

3

Results

The system of consumer cooperation in Russia has proved and continues to prove its importance, necessity, usefulness and effectiveness over 190 years of existence. Unlike private business entities, the purpose of which is to make a profit and to use it for personal purposes and for the development of their own business, consumer cooperation, the purpose of which is to meet the material and other needs of its members, is directly involved in the implementation of programs for the socio-economic development of territories, is a significant budget-forming organization, satisfies the various needs of not only shareholders, but also the non-cooperative population living in its area of activity, that is, it ensures the sustainability of its own business and the development of rural areas. Consumer cooperation is developing in Russia autonomously and independently, which is in line with the principles of the international cooperative movement (Zolotareva, 2013). Autonomy and independence are realized by the creation and functioning of all major industries and activities in rural areas: agriculture, procurement of agricultural products and raw materials, production and primary processing of raw materials (fermentation, salting, pickling, drying, etc.), trade and public food, services (Koveshnikova & Lishchuk, 2020). Their goal is to ensure the livelihoods of the rural population through joint efforts. Each of the industries and activities can become and actually becomes unprofitable from time to time (Lishchuk & Chistyakova, 2020). But the combination of interconnected industries allows obtaining a guaranteed high cumulative economic effect. The consumer society itself acts as a rational, historically established association of industries and activities in the territory. Probably, this is the reason why in cooperation (association of shareholders, association of industries and activities) neither clusters, nor technoparks, nor innovative networks take root as superfluous; cooperation does not become a subject of special economic zones. As a diversified system, it has accumulated experience in combining industries within a single business entity. Its modern branch diversification is considered as one of the competitive advantages of the system, but intra-cooperative associations in the form of complexes create the greatest effect. Their peculiarity lies in the fact that the industries or types of activity that are most in demand on the market, as a rule, are characterized by an increased level of costs, and therefore are ignored by manufacturers. Procurement is the most costly and labor-intensive branch of cooperative activity. Therefore, most consumer unions hastened to get rid of it during the period of “perestroika”. This immediately affected the types of activities related to procurement: the volumes of

Unifying Transformations as a Condition for the Sustainable Development of Consumer Cooperation

processing, production, public catering, and trade fell. And here is a direct consequence: the system of consumer cooperation in Russia has lost many consumer societies and even unions. But if procurements are combined with supporting industries, then a positive synergistic effect is created for the entire complex, including the previously unprofitable industry. Procurements are becoming a driver of socio-economic development, an object of priority capital investments that ensure infrastructural, technical and technological reconstruction. An example is the procurement and production complex of the Krasnoyarsk Territory Consumer Union. In the Krasnoyarsk Territory Consumer Union, procurements have been designated and have actually become a strategic driver of the socio-economic development of consumer cooperation in the Krasnoyarsk Territory. The funds invested in the construction of new procurement centers, the reconstruction of old ones, the technical re-equipment and the maintenance of coop animal farms, warehouses and refrigerator warehouses, have long been paid off. The increased scale of procurement of wild, medicinal plants, products from the households of the population, own agriculture (all this is local, environmentally friendly raw materials not burdened by transportation costs and not spoiled by delivery time), made it possible to significantly increase the volumes of primary processing, production, trade, public catering. The number of positions in the list of such goods produced from goods-preparations exceeds 200 items. Export volumes, especially for mushrooms, bracken, berries of various types of processing, and in the group of non-food products—furs, have grown. The basis of the complex—procurements—are being developed through territorial diversification—the economic development of new territories (and this is the north of the Krasnoyarsk Territory and the neighboring Kemerovo and Novosibirsk Regions, Altai Territory and the Republic of Khakassia). Procurement-production and procurement-productiontrade complexes have common features with the agroindustrial complex. They have a common goal—to provide the population of the country with food and common tasks—to produce, process agricultural and wild products and bring it to the consumer. The tasks of the agro-industrial and procurementindustrial-commercial complexes coincide, they differ only in scale. Therefore, in our opinion, regional procurementproduction-trade complexes can be considered as a subject of the agro-industrial environment of the territory. As it is known, the agro-industrial complex functions in three directions: firstly, it is a set of industries that ensure its development, secondly, agriculture and, thirdly, processing, storage and sale of agricultural products (harvesting, food and light industry, trade and catering) (Lishchuk et al.,

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2021). The agro-industrial complex and cooperative procurement-production-trade complexes do not act as competing economic entities. Each of them has its niche. The niche of consumer cooperatives is the purchase of surplus agricultural products produced in personal subsidiary plots of citizens, as well as the purchase and harvesting of non-timber forest products (nuts, mushrooms, berries, medicinal herbs, etc.), hunting, and fishing. Along with procurement-production and procurement-production-trading complexes, where procurement is the key industry, we propose the creation of another type of complex of industries, in which public catering will become the main industry. The centralized production of semi-finished products, culinary and confectionery products, which complemented the range of cooperative retail trade and catering enterprises with products of their own production, was organized in each rural area before the transition to market relations. Production shops were part of self-supporting branch associations of cooperative organizations. They became the prototype of our catering complexes. The functioning of cooperative public catering is considered by us as the functioning of not so much an economic as a social subject of the rural economy, leading a socially responsible business. The social component corresponds to the purpose of the activity of consumer cooperation (as opposed to privately owned catering enterprises). It is especially important in rural areas, where the way of life of the inhabitants, for obvious reasons, differs from the way of life of the townspeople. Cooperative catering enterprises spontaneously became centers of communication and centers of organized and unorganized leisure of residents in the conditions of limited cultural and leisure infrastructure in rural settlements or its complete absence in remote settlements. Considering this specificity of cooperative public catering, we characterize the industry as follows: public catering is a socio-economic industry that manufactures products, rationally uses material and labor resources, as well as provides services, including communication and leisure. Cooperative public catering solves not only internal, but also regional tasks, as well as tasks on a national scale, which contributes to the increase in the stability of the system, increasing its significance. An important direction in the organization of a socially responsible business in public catering is the inclusion of cooperative enterprises in the procurement, production and trade sectors of activity in the public catering complex. It must provide not only for the preparation of ready-to-eat products, but also for their release to the retail network, and to other intermediate and final consumers. The creation of complexes with the priority of public catering is economically feasible, as well as the

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implementation of social functions by them. Economic feasibility is confirmed by a higher efficiency in the use of material, labor and financial resources, and social feasibility is confirmed by the addition of functions of communication and leisure centers for the rural population. The inclusion of procurements in the composition of public catering complexes will give an additional impetus to the development of the procurement activities of the cooperative. The high labor intensity of the production of public catering products necessitates the equipping of enterprises with modern high-performance equipment that makes it possible to rationalize the production process and ensure the efficiency of its use, thus forming the competitive advantages of cooperative public catering. Consumer society catering enterprises can offer their products to shareholders and the entire population served, using a loyalty system as a sales promotion, through a network of their own departments for the sale of culinary and confectionery products, as well as through retailers. Two types of functioning of complexes should be distinguished: induction and induction-deduction. Procurement and production complexes operate according to the induction type, concentrating raw materials harvested in different areas on a single production base and producing products. Procurement-industrial-trading complexes and catering complexes offered by us function according to the induction-deduction type. This type of functioning of the complexes at the final stage involves the sale of products to both intermediate and final consumers. The range of products sold to intermediate consumers (finished products—to school canteens, confectionery and semi-finished products of various degrees of readiness—to public pre-cooking catering establishments, own shops and departments for the sale of culinary and confectionery products and to a retail network) and to end consumers in the event that a public catering facility has been organized at the public catering complex. We offer the organization of branches of a public catering complex for settlements in remote northern territories and settlements, which are centers of trade services, but are located at a considerable distance from the centers of the region. Public catering complexes as producers of specific services and the rural population as their consumers are mutually interested subjects of the rural economy, including the economy of consumer cooperation. There is a need to maximize the satisfaction of the population’s demand for public catering products, expand its social function, initiate industry enterprises to diversify their activities in various areas based on a combination of effective use of the resource potential of the territory, integration of consumer cooperation sectors—the creation of complexes, product and technological innovations, the latest achievements of scientific

M. I. Drozdova et al.

and technical progress and professional qualities of industry workers—factors contributing to the sustainable development of cooperation and the socio-economic development of rural areas. The resource potential of the industry on the territory of the zone of activity of consumer cooperation has the main significant difference from enterprises located in cities. It consists in the availability of a guaranteed source of supplies of environmentally friendly raw materials as close as possible to the place of production, which allows to reduce its losses during transportation and storage and produce competitive organic products, the demand for which has increased significantly in recent years. Product innovations are the material result of the implementation of the professional competencies of industry employees, which is expressed in the creation of new dishes and types of products intended for the end consumer. Technological innovations can only be implemented in large enterprises. They are represented by such latest technologies as pacojetting (a special technology of molecular gastronomy, in which products that have been frozen to −22 °C during the day turn into a finely textured and puree-like mass); Cook and Chill (combined process of cooking a large volume of dishes and their rapid cooling); low-temperature Sous-Vide (Suvid)—(multifunctional cooking technology based on the use of a large number of devices), etc. Innovative technologies make it possible to ensure the preservation of the nutritional value of products, maximum efficiency of the production process, energy saving, which affects the prices for products and services of the industry and their competitiveness. The implementation of innovative technologies in public catering is impossible without the use of the latest equipment (combi steamers, shock freezing chambers, heat tables, decarbonizers, planetary mixers, vacuum packers)—the achievements of scientific and technological progress. Such equipment is widely used in modern enterprises of the industry. The use of innovative technologies and the latest equipment is possible only at large enterprises designed to produce a large volume of various products, which allows for effective interaction to maximize the production capacity of the complexes, to ensure the rational use of productive forces—the totality of means of production and people involved in the production of public catering products.

4

Conclusion

The integration of the diversified activities of consumer cooperation, and above all, the procurement of agricultural products and raw materials, non-timber forest products and

Unifying Transformations as a Condition for the Sustainable Development of Consumer Cooperation

public catering should become the basis for the creation of integrated diversified public catering complexes. Such complexes can also include cooperative trade enterprises that sell products produced by public catering enterprises. The creation of such complexes is economically expedient and efficient. The study showed that inter-industry complexes are the most effective type of associations in consumer cooperation in Russia. The practice of the procurement and production complex has shown that they really act as drivers of socio-economic development. The authors recommend, according to their model, the creation of intersectoral complexes with the priority of public catering. Such a complex is recommended for remote hard-to-reach, but large settlements served by consumer cooperation. Creation of a public catering complex is relevant. The authors emphasize the features of the cooperative public catering complex, which consist in the interconnectedness of industries, the addition of the functions of communication centers that form and supplement the cultural and leisure infrastructure of rural settlements, and also ensure the sustainable development of rural areas.

References Consumer Cooperation in Russia: Monograph. (2016). Tarasova E. E. (Eds.), BUCEL publishing house, Belgorod, 657p.

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Kapelyuk, S. D. (2013). Consumer cooperation of Russia and the WTO. Agricultural Science, 8, 3–5. Khramtsova, T. G. (2013). Statistical aspect of the study of the procurement activities of cooperative organizations. Bulletin of NSUEM, 4, 126–135. Koveshnikova, V. A., & Lishchuk, E. N. (2020). Studying the activities of the consumer society and its environment to identify the risk assessment of material misstatements in the accounting (financial) statements. In Economics of the 21st Century: Collection of Materials of the International Scientific and Practical Conference (pp. 291–300). Siberian University of Consumer Cooperation, Novosibirsk. Lishchuk, E. N., Chistiakova, O. A., & Boronina, E. S. (2021). Rural labor market and digitalization: New challenges and opportunities. Studies in Systems, Decision and Control, Springer, 316, 159–164. Lishchuk, E. N., & Chistyakova, O. A.: Sales expenses as a subject of management of the activities of consumer cooperation organizations. In Modern Cooperation in the System of Sustainable Development Goals: Materials of the International Scientific and Practical Conference (pp. 298–305). Russian University of Cooperation, Moscow (2020). Nagovitsina, L. P., & Drozdova, M. I. (2020). Unifying transformations are a necessary vector for the development of cooperatives. Fundamental and Applied Research of the Cooperative Sector of the Economy, 1, 53–63. Solovieva, V. N., & Gavrilova, T. V. (2016). Interaction of the cooperative movement in the field of sustainable development. Bulletin of the Siberian University of Consumer Cooperation, 2, 3– 9. Zolotareva, E. A. (2009). Cooperative model of socio-economic development. Bulletin of the Belgorod University of Consumer Cooperatives, 2, 298–303. Zolotareva, E. A. (2013). Trends in the development of the largest cooperatives in the world. Bulletin of the Siberian University of Consumer Cooperation, 1, 19–28.

Cooperation of Resident Institutional Units as a Segment of Cluster Interaction of Constructive High-Technological Development Margarita A. Shumilina , Ivan V. Trifonov , Alexey M. Gubernatorov , Lyudmila A. Shmeleva , and Maxim S. Chistyakov

Abstract

Keywords

Purpose To consider cooperation from the perspective of vertical and horizontal links of interaction in cluster geometry in the post-industrial era of the IV industrial revolution, contributing to the expansion of the range of competitive advantages of resident institutional units. Methodology The work used general scientific methods of cognition: dialectical, observations and generalizations, complex and cluster approaches; method of comparative analysis and scientific abstraction; a systematic approach that made it possible to analyze the complex structural content of cooperation ties in a cluster structure as an element of economic activity and high-tech development. Results The article analyzes the interdependence of cooperation links on the evolution of cluster geometry, the influence of the cluster approach on the formation of constructive cooperation interaction in the general concept of information post-industrial development. Conclusions The opinion of the authors of the collective work is that the cluster approach, despite its effectiveness, is not a universal tool for the formation of cooperative ties among resident institutional units of the cluster. Nevertheless, a set of mutually interrelated tools will contribute to the formation of more intensive diverse cooperation ties.

Cluster Cooperation Horizontal and vertical links High technology Networks Cluster-network approach

M. A. Shumilina (&) . M. S. Chistyakov Vladimir branch of the Russian University of Cooperation, Vladimir, Russia e-mail: [email protected] I. V. Trifonov . L. A. Shmeleva Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] L. A. Shmeleva e-mail: [email protected] A. M. Gubernatorov Vladimir Branch of the Financial University Under the Government of the Russian Federation, Vladimir, Russia

.

. . .

.

JEL Classification

O10

1

Introduction

The central motive for cooperative interaction between actors in the course of economic activity is to obtain a certain economic effect. The central motive for cooperative interaction between actors in the course of economic activity is to obtain a certain economic effect. In other words, cooperation ties are long-term stable economic (and other) relations that contribute to a positive synergistic (emergent) effect. The value of the effect of cooperative interaction is greater than the total value of individual economic effects of disparate economic entities with autonomous existence.

2

Methodology

The theoretical and methodological basis of this review was the conceptual scientific provisions and the results of research studies by scientists of domestic and foreign schools devoted to the evolutionary formation of cluster structures, the development of modern cooperative relationships in cluster geometry, contributing to the high-tech development of the post-industrial society of the VI technological mode of the IV industrial revolution. The research tools were general scientific methods of cognition: dialectical, observation and generalization, complex and cluster approaches; method of comparative analysis and scientific abstraction; a systematic approach that made it

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_51

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possible to analyze the complex content of cooperation ties in a cluster structure as an element of economic activity and high-tech development.

3

Results

In the economic literature, there are various interpretations of the definition of “cluster”. In general, they state a high degree of aggregation, focused on the integral links of diverse industries and branches of economic activity in the contours of territorial networking (Gorsheneva, 2006; Kuzin et al., 2019). Variable economic processes, including globalization and deglobalization, taking place in modern reality, contribute to various key success factors due to the specifics of the organization of economic activity. The network is an organizational and legal form of cooperative interaction and integration of economic activities, as well as an institutional element that regulates the directions of interaction and integration processes of resident institutional units based on shared system of values, including in a cluster.

4

Discussion

According to the well-known scientist and economist Porter, clusters contribute to the growth of the competitiveness of the industrial potential in the region (Porter, 2010). Shutskaya (2006) notes that the term “cluster” was first used in circulation in 1939 and subsequently studied in detail by Porter in the general concept of cluster development. According to Porter, a cluster is a combination of horizontal (technology, intermediaries, shared customers) and vertical (buyer–supplier) relationships. The more extensive the network structure of horizontal connections, the larger the organizational structure of the cluster in which cooperative interaction is carried out (Zenina, 2012). The institutional concept considers the organization as a system of relationships that contribute to minimizing transaction costs and expanding competitive advantages. Horizontal and vertical linkages have a forward and backward direction of different functional load (conditionality). A complex combination of links of cluster geometry is formed regardless of the conditions for the formation of a cluster—both in the process of state regulation measures and initiation of the formation of a cluster and in the process of the evolutionary impact of market mechanisms. Significant vertical links can exist both within the boundaries of one organizational structure (for example, in a large vertically integrated cluster of a corporate format), and as a set of legally independent enterprises. At the same time, intensive

vertical ties stimulate the processes of cooperative communications in horizontal ties involved in the generation of a territorial-production formation. The formation of a high-tech environment for economic development in the digital format of the development of the era of post-industrial society implies certain pragmatic and constructive management decisions, including additional measures to support the cooperative interaction of various formats of cluster initiatives (Kuzin et al., 2019). This thesis is confirmed by Matveev, Matveev, Trubetskaya, who indicate in their definition that “a cluster is a platform for cooperation of economic actors that transform their actions towards consolidation” (Matveev et al., 2016). Yalov gives the following interpretation of the definition of “cluster”—a network of suppliers, manufacturers, consumer institutions, interconnected in the process of creating surplus value (Yalov, 2004). Considering this semantic interpretation of “cluster”, we supplement the definition with the following wording: a cluster as a network configuration is a cooperation of business relationships that ensure and accompany its functioning, which contributes to the formation of competitive advantages and the ecosystem of an economic entity, as well as affects the immediate environment. At the same time, the intensification of links due to intra-cluster interaction contributes to the development of the high-tech potential of science-intensive industries. The cluster-network approach in convergence with cooperative relationships contributes to the formation of a fundamentally different management of interaction between cluster resident institutional units. The cluster concept of building cooperation is based on the synergistic effect of the interaction of resident units of the cluster association. Stable connections in established economic niches of business entities of the network structure of cluster geometry form a synergy effect, including on the platform of emergent integration of cooperative interaction (Chirkov & Chistyakov, 2020). In turn, the cluster approach is a consequence of certain contractual relations of stakeholders, which, however, are competitively limited in their actions in relation to each other (Agarkov & Golov, 2016). The following algorithm can be used as a direction for the optimal construction of cooperative interaction of a cluster configuration (Belyakova et al., 2019): 1. Defining and verifying the goal-setting of the activities of resident institutional units of a cluster configuration; 2. Verification and construction of organizational structure; 3. Monitoring of resource potential; 4. Analysis of market niches, the development of which will contribute to the development of cooperative interaction in the cluster. In turn, cooperative relationships will strengthen the cluster structure itself;

Cooperation of Resident Institutional Units as a Segment of Cluster Interaction of Constructive High-Technological Development

5. Adoption of a consolidated managerial position in the general philosophical concept of a cluster configuration for the subsequent generation of an effective organizational structure and communication interaction, corresponding to the already established connections and foresight connections; 6. Analysis of the advantages and disadvantages of the existing cooperative ties, including potential and existing threats, the level of trust between the resident units of the cluster. Infrastructural networks, which are a complex set of appropriate enabling conditions for economic activity, including production, socially significant decisions, are of great importance in the process of building cooperative interaction. Such networks that promote cooperative interaction include transport and logistics, communication, financial and institutional networks. Cluster cooperative relationships, intercompany interaction are a catalyst for the development and transfer of high technologies, including in industry, which, of course, has positive trends both for individual economic entities and for the economy as a whole. At the same time, the synergy effect of cooperative interaction is one of the key characteristics of the cluster structure—both in one industry and in the range of complementarity of industries. The synergy effect occupies a special place among the cluster effects (the effect of sustainability, environmental responsibility, lower transaction costs, economies of scale, market coverage) (Kolmakov et al., 2019). At the same time, it should be noted that during the formation and evolution of a cluster, both new intersectoral (Mokhova et al., 2019) and inter-cluster relationships are created, which, in turn, enhances the effect of cooperative interaction between the actors of cluster structures (Kolmakov et al., 2019). The effect of cluster synergy, which contributes to the development of high technologies, thus indirectly affects the convergence of “Industry 4.0” into the economic space and society (Lapygin & Lapygin, 2020). The concept of “network society” (Jan Van Dijk, M. Castells) states that information, as an integral element of high technology, reflects the essence of modern civilizational development. At the same time, networks perform the function of an organizational structure. The influence of the concept of “network society” on the study of processes occurring in the manufacturing sector can be described in the context of its dominant role assigned to horizontally integrated systems. Network platforms for the protection of horizontal connections of institutional systems are links of this linear-nodal structure in stable connections of the cluster structure (information, technology, resource, etc.) that form a network configuration (Vlasova et al., 2021). In this context,

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cluster information networks represent a resource potential based on the use of intelligence and knowledge on a high-tech platform as a renewable source of economic activity. Cooperative constructive interaction can be viewed from the perspective of innovation networks. Joseph Schumpeter’s ideas about competition can serve as a methodological justification for building innovative networks. In this case, innovations are the dominant principle of the dynamics of economic evolution in conjunction with the institutional component of innovation activity, which directly affects the structure and content of development. These networks assume the following content: • principle of voluntariness; • principle of unity; • principle of independence of actions of the resident institutional units of the innovation network; • principle of choosing the relationship between the actors of the network; • principle of economic stability (sustainability); • principle of distribution of rights and responsibilities on the basis of dialectical laws of interaction; • principle of permanent development and renewal; • principle of coordination; • principle of purposeful concentration of assets and property; • principle of maintaining constructive relationships in the team at an optimal level.

5

Conclusion

The network model of cooperative interaction is characterized by more pronounced system integration structure based on flexibility and adaptability to the turbulent processes of the external environment; sustainable communication channels; mobility of the resource component, mechanisms of transfer by external and internal technologies and knowledge; involvement of management in the systemic processes, pragmatic management decisions. An important element of the development of the cooperative construct of a cluster organization are components of endogenous nature (resource availability, favorable territorial and geographical position, favorable economic and political conditions, developed infrastructure). The trend towards the formation of alliances strengthen the interconnection of cooperation and creative connections of cluster recipients in the framework of coordination of joint projects, including R&D and educational programs (Guidelines for the implementation of cluster policy in the northern regions

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of the Russian Federation. The Ministry of Economic Developmnt of the Russian Federation, 2021). As an eventual practice of implementing the clusternetwork approach to the evolution of cooperative relationships between resident institutional units, the use of the so-called the “digital twin of production” (Watts, 2020) (virtual cluster) can be used. Such a virtual resource will allow, in convergence with the potential of the information virtual space, to calculate the risks and opportunities for the formation and evolution of cooperative relationships in a cluster in the context of the development of “Industry 4.0”. In conclusion, it should be noted that the cluster approach is not a universal tool for the formation of cooperative ties of its resident institutional units, limiting its possibilities only in this direction of interaction between economic entities, but, nevertheless, it is a proven tool for establishing constructive interaction between various economic entities.

References Agarkov, A. P., & Golov, R. S. (2016). Design and formation of innovative industrial clusters: monograph. Publishing and trade corporation “Dashkov and K”. Belyakova, G. Y., Kalinina, A. A., Okuneva, M. A., Mamedov, E. N., Ryabchenko, T. S., Klochko, A. S., & Duleikina, A. E. (2019). Investigation of the mechanism for constructing a model of interfirm interaction of cluster participants. Economics and Entrepreneurship, 7(108), 820–826. Chirkov, M. A., & Chistyakov, M. S. (2020). Cluster interaction in the formation of cooperation ties // collection of materials of the III international scientific and practical conference “Cooperation in the changing world of digital technologies. Kazan: Publishing house: “Printing service XXI century”. Guidelines for the implementation of cluster policy in the northern regions of the Russian Federation. The Ministry of Economic Developmnt of the Russian Federation. http://old.economy.gov.ru/ minec/activity/sections/innovations/politic/doc201001081642. Data accessed: October 09, 2021. Gorsheneva, O. V. (2006). Clusters: Essence, types, principles of organization and creation in the regions. Bulletin of the Rostov State University of Economics, 4(2), 75–80.

M. A. Shumilina et al. Kolmakov, V. V., Polyakova, A. G., Karpova, S. V., & Golovina, A. N. (2019). Cluster deveplopment based on competitive specialization of regions. Economy of the Region, 15(1), 270–284. Kuzin, V. F., Lachinina, T. A., & Chistyakov, M. S. (2019). A cluster model of an import-substituting strategy for innovative high-tech development. In: Collection of scientific papers of the International Scientific and Technical Symposium “Economic Mechanisms and Management Technologies for Industrial Development” of the International Kosygin Forum “Modern Tasks of Engineering Sciences” (October 29–30, 2019) (pp. 99–103). Moscow: Russian State University named after A.N. Kosygin. Lapygin, Y. N., & Lapygin, D. Y. (2020). Cluster synergy mental map. Bulletin of the Moscow State Regional University. Series Economics, 3, 91–100. https://doi.org/10.18384/2310-6646-2020-391-100 Matveev, Y. V., Matveev, K. Y., & Trubetskaya, O. V. (2016). The role of clusters in the formation of the competitiveness of the national and regional economy. Bulletin of Samara Economic University, 7 (141), 39–46. Mokhova, E. A., Tumanyan, Y. R., & Ivanov, N. P. (2019). Clusters in economics: Evolution of definitions and classification. Management of Economic Systems: Electronic Scientific Journal, 4(122). http:// uecs.ru/regionalnayaekonomika/item/5512-2019-04-27-06-08-38. Data accessed: October 11, 2021. Porter, M. (2010). Competition. Moscow: Publishin House “Williams”. Shutskaya, L. P. (2006). Features of the functioning and development of clusters in the Khmelnytsky region. Bulletin of Khmelnitsky National University, 4(166), 5, 351–355. Vlasova, N. V., Kuznetsov, D. V., Mehdiev, S. Z., Timofeeva, E. S., & Chistyakov, M. S. (2021). Information technologies in the context of forming the synergy of post-industrial consciousness and digital economy. In: Popkova, E. G., & Sergi, B. S. (Eds.), Modern global economic system: evolutional development vs. revolutionary leap (Vol. 198, pp. 1241–1247). Springer Nature. https://doi.org/10. 1007/978-3-030-69415-9_135 Watts, S. (2020). Digital twins and the digital twin of organization, DTO. BMC. https://www.bmc.com/blogs/digital-twins/. Data accessed: October 11, 2021. Yalov, D. A. (2004). Cluster approach as a technology for managing regional development by economic development. Compass of Industrial Restructuring, 2. Zenina, N. N. (2012). Properties of forest clusters. Actual problems of the forest complex, Vol. 33. https://cyberleninka.ru/article/n/ svoystva-lesnyh-klasterov. Data accessed: October 10, 2021.

The Potential of Cooperation in the Sustainable Development of Rural Areas of the Chuvash Republic Yulia V. Pavlova , Tamara Ya. Silvestrova , and Andrey N. Zaytsev

Abstract

This article explores the essence of the concept of cooperation and its significance in the sustainable development of agribusiness. The paper presents a new approach to cooperation, which provides for the implementation of the practice of corporate social and environmental responsibility as a mechanism for resolving the conflict of common and private interests when unifying participants in the interests of sustainable development of rural areas. Based on the study, directions for using the potential of cooperation were determined. Keywords

..

. .

Rural areas Agribusiness Sustainable development Resources Potential Cooperation

.

JEL Classification

Q01

1

. . . Q10

R13

E24

Introduction

The issues of the agrarian structure of rural areas continue to occupy a special place in science and in practice since the time of Chayanov (1917). As he notes in his work, the economic development of the country depends on its correct solution; from the changing conditions of economic life and the political structure of the country, the issues under Y. V. Pavlova (&) . T. Ya.Silvestrova Cheboksary Cooperative Institute (branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] T. Ya.Silvestrova e-mail: [email protected] A. N. Zaytsev LLC “Atalanu”, Cheboksary, Russia

consideration of the agrarian structure of the countryside should change radically. Cooperation is understood as a form of organizing the interaction of various participants in order to achieve a common goal, which provides for the simultaneous division of functions, roles and responsibilities between these participants. There are various types of cooperation, which include agricultural, industrial, service, credit, etc. Many researchers note that for the further development of rural areas of the Russian Federation, service cooperation is most needed (Garaeva, 2020; Repushevskaya & Bolotnova, 2021). The socio-economic role of cooperation in Russia lies in the need for efficient use of resources available in rural areas, the need to develop the rural economy, the social and economic infrastructure of rural areas, and the uninterrupted functioning of the country’s food supply system (Federal State Statistics Service (Rosstat) 2020) (Fig. 1). Figure 1 shows, that about half of agricultural production is produced by small categories of farms. Households of the population occupy 26.6%, peasant (farmer) households— 14.9%, and agricultural organizations—58.5%. In 2016 All-Russian Agricultural Census in Russia, as of July 1, 2016, 80% of private subsidiary plots (PSPs) produced agricultural products. At the same time, 13% of private subsidiary plots produce agricultural products to obtain an additional source of funds, and for 0.3% of private subsidiary plots. Another part of the agricultural products of private subsidiary plots goes for further sale to the population and business entities. But they do not have full access to all the necessary resources for the production and sale of agricultural products. Other participants in the agricultural market, such as the state, the business community, the scientific community, do not always take them seriously and do not understand their difficulties associated with organizing their living or production space. This difference depends on the socio-economic level of rural areas development in the regions.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_52

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Y. V. Pavlova et al.

Agricultural organizations

14.9 26.6

58.5

Households of the population Peasant (farm) households

Fig. 1 Agricultural production in Russia, 2020. % Source authors based on (Federal State Statistics Service (Rosstat) 2020)

Modern difficulties of small categories of agricultural producers and the rural population associated with the provision of resources or with the sale of manufactured products have been taken over by consumer cooperation. In those rural areas where there are organizations of consumer cooperation, entrepreneurial activity of the rural population is observed.

2

Methodology

The paper presents a new approach to cooperation, which provides for the implementation of the practice of corporate social and environmental responsibility as a mechanism for resolving the conflict of common and private interests when uniting participants in the interests of sustainable development of rural areas. The sources of information are the data of Rosstat and Chuvashstat.

3

Results

According to Fig. 2 and Table 1 we will analyze, which categories of farms are available in the agriculture of the Chuvash Republic for 2020. Table 1 shows that cooperative organizations are created mainly in rural areas, because there is a demand for their services from the population. The issues of marketing of manufactured products and supply of both material and financial resources remain unresolved (Pavlova, 2013). To

14.3 46.3 39.4

Agricultural organizations Households of the population Peasant (farm) households

Fig. 2 Structure of agricultural production in the Chuvash Republic by category of farms for 2020. % Source authors based on (Territorial body of the Federal State Statistics Service for the Chuvash Republic (Chuvashstat) 2020)

address the issues of rural development, it is necessary to develop cooperative forms of organization, depending on the goals and tasks to be solved.

4

Discussion

Maksaev et al. (2019), Akhmetov and Gataullin (2020) and Maltseva (2020) in their works note the importance in the implementation of the goals of sustainable development of rural areas, the formation of local initiatives, the search for local reserves for the development of the rural economy through the system of agricultural consumer cooperation. She proposes that for the development of agriculture and rural areas it is advisable to apply a cooperative model aimed at involving entrepreneurs from various industries and households in cooperative activities and the formation of open cooperatives. Nabiyeva () and Garayeva (2020) in their works substantiate the need for the development of consumer cooperation in purchasing and marketing activities in rural areas. In particular, agricultural cooperation is one of the ways to support and survive small agricultural producers in competition with large agribusiness. Borisov (2021) notes that consumer cooperation contributes to the preservation of the integrity of regional and national markets, takes care of society and each member of the cooperative organization. In his work (Golovina et al., 2021; Volkov, 2021), he analyzed programs to support small agribusiness. Using CSA to directly sell agricultural products through digitalization, under the pressure of anti-COVID measures, European small-scale agricultural producers have demonstrated the high resilience of their food systems. Paptsov (2020) considers in his work that Israel made the main emphasis in the agricultural sector on the development of agricultural cooperatives, while purposefully allocating funds for their creation. Cooperatives have passed significant milestones in their development. The liberalization of the world economic complex offered its own tools for the development of the Israel economy, proclaiming the supremacy of market principles, which imply a sharp reduction in state interference in the activities of the cooperative system. Today, Israel’s modern, highly efficient cooperatives continue to play a dominant role in agriculture. The transition from a virtual monopoly in the agricultural sector with the need, on the one hand, to diversify the structure of production and management, on the other hand, while deepening specialization in accordance with the emerging conjuncture of the domestic and international food markets,. It should be emphasized that the experience of Israel in the development of agricultural cooperation can and should, after a critical review, be used in the form of its individual aspects in Russian practice.

The Potential of Cooperation in the Sustainable Development of Rural Areas of the Chuvash Republic Table 1 Types and dynamics of cooperative organizations of the Chuvash Republic for 2017–2021

269

Types of cooperatives

2017

2021

Deviation (+, −)

Agricultural production cooperative

118

103

−15

Production cooperatives (except agricultural production cooperatives)

26

36

10

Agricultural consumer service cooperatives

45

31

−14

Consumer cooperative

32

29

−3

Consumer credit cooperative

39

25

−14

Cooperative society

22

21

−1

Agricultural consumer processing cooperatives

19

20

1

Agricultural consumer marketing (trading) cooperatives

26

20

−6

Agricultural consumer supply cooperatives

15

20

5

Credit consumer cooperatives of citizens

11

7

−4

Horticultural, gardening or housing community consumer cooperatives

5

4

−1

Source Compiled by the authors based on (Territorial body of the Federal State Statistics Service for the Chuvash Republic (Chuvashstat) 2020)

Kuliyev (2019), Vorobyeva and Vorobyov (2020) note that the reserve for growth in the volume of sales of small categories of farms in the countryside due to the development of production and marketing cooperation is practically not used. Evarestova and Basenkova (2020) note the need for state support for small farms in the countryside, including consumer cooperatives, in order to increase their socio-economic effect in the development of regions. Repushevskaya and Bolotnova (2021) in their work consider the relationship between the sharing economy and consumer cooperation. They note that, unlike other spheres of society, the sharing economy entered consumer cooperation relatively recently, but has already helped to ensure the development of various IT technologies in consumer cooperation. So, with their development and implementation in consumer cooperation, new services are introduced to simplify the traceability of orders; in addition, through services with the support of investors, you can enter the consumer cooperation system and become a shareholder in it. The authors argue that society and consumer cooperation need various kinds of services and information and communication innovations. For the further successful development of agriculture, it is necessary to organize various types of cooperation, which is confirmed by the experience of developing cooperation in foreign countries.

5

Conclusion

Summarizing the work carried out, several conclusions should be drawn. The main one is that it is cooperation in the countryside that makes it possible to use its limited resources in the most optimal way, because cooperation is a form of organizing the interaction of various participants to achieve a

common goal, which provides for the simultaneous division of functions, roles and responsibilities between these participants. There are various types of cooperation, which include agricultural, industrial, service, credit, etc. For the further development of rural territories of the Chuvash Republic service cooperation is needed.

References Akhmetov, V. Y., & Gataullin, R. F. (2020). Revival and sustainable development of consumer cooperation as a factor in the development of depressed rural areas. Russian Agricultural Economics, 11, 87–93. https://doi.org/10.32651/2011-87 Borisov, V. D. (2021). Theoretical aspects of the development of agricultural cooperatives. Bulletin of the North-Eastern Federal University. M.K. Ammosov Series: Economy Sociology Culturology 1(21), 27–32. https://doi.org/10.25587/SVFU.2021.21.1.011 Chayanov, A. V. (1917). What is the agrarian question? Universal Library. Evarestova, M. S., & Basenkova, S. V. (2020). Regional aspect of the development of rural cooperation. Fundamental and Applied Research of the Cooperative Sector of the Economy, 4, 23–30. https://doi.org/10.37984/2076-9288-2020-4-23-30 Federal State Statistics Service (Rosstat). (2020). Retrieved from https://rosstat.gov.ru. Accessed: September 14, 2021. Garaeva, A. F. (2020). Cooperation as the main form of agricultural development: Domestic and foreign experience. Colloquium-Journal, 29–1(81), 64–68. https://doi.org/10.24411/ 2520-6990-2020-12217 Golovina, S. G., Mikolaichik, I. N., & Smirnova, L. N. (2021). Agricultural cooperation: Implications for farmers and rural development. Bulletin of the Kurgan State Agricultural Academy, 2(38), 22–33. https://doi.org/10.52463/22274227_2021_38_16 Kuliev, T. A. (2019). The role of agricultural cooperation in the development of rural areas of the Azerbaijan Republic. Nikon Readings, 24, 304–307. Maksaev, A. A., Tkach, A. V., & Zhukova, O. I. (2019). Features of realization of the potential of entrepreneurship in the system of

270 consumer cooperation in Russia. Fundamental and Applied Research of the Cooperative Sector of the Economy, 2, 3–9. Maltseva, I. S. (2020). Agricultural cooperation is an important link in the sustainable development of the rural economy of the northern region. Business Education Law, 4(53), 198–203. https://doi.org/10. 25683/VOLBI.2020.53.440 Nabieva, A. R. (2020). Consumer cooperation in improving the efficiency of the development of rural areas. Russian Journal of Management, 8(2), 96–100. https://doi.org/10.29039/2409-60242020-8-2-96-100 Nabieva, A. R. (2021). Prospects for cooperation in the development of rural areas in Russia. Fundamental and Applied Research of the Cooperative Sector of the Economy, 2, 3–11. https://doi.org/10. 37984/2076-9288-2021-2-3-11 Paptsov, A. G. (2020) Modern trends in the development of cooperation in agriculture in Israel. International Economics, 12, 56–65. https://doi.org/10.33920/vne-04-2012-06

Y. V. Pavlova et al. Pavlova, Y. V. (2013). Sources of financing the investment process of the regional agro-industrial complex. Topical Issues of Science and Education: Collection of Scientific Articles, pp. 235–239. Repushevskaya, O. A., & Bolotnova, O. I. (2021). The economy of sharing: The reasons for the emergence and ways of development in consumer cooperation. Bulletin of the Russian University of Cooperation, 2(44), 65–69. https://doi.org/10.52623/2227-4383-244-12 Territorial body of the Federal State Statistics Service for the Chuvash Republic (Chuvashstat). (2020). Retrieved from https://chuvash.gks. ru. Accessed: September 14, 2021. Volkov, S. G. (2021). Small agribusiness in Europe: Factors for the viability of local food systems. Russian Agricultural Economics, 4, 87–92. https://doi.org/10.32651/214-87 Vorobyeva, V. V., & Vorobyev, S. P. (2020). Prospects for the development of consumer cooperation in the region’s agriculture. Economy Profession Business, 4, 47–53. https://doi.org/10.14258/ epb201999

Cluster as a Form of Interaction Between Government, Business, and Science Elvira V. Dubinina , Ekaterina V. Zhilina , Guzel A. Musina , Angelica A. Nikitina , and Zulfiya Z. Sabirova

Abstract

As part of the policy pursued in the Russian Federation aimed at creating, developing, and maintaining the infrastructure to support the innovation activities of regional educational, scientific, and industrial enterprises (organizations and institutions), as well as for the purpose of state support for small and medium-sized businesses and industry initiatives, effective activities are carried out to develop and implement projects for the creation and development of clusters in the territories that promote economic growth and satisfy the interests of interested economic entities. Keywords

..

..

Cluster Ecological cluster Cluster initiative approach Cooperation Entrepreneurship

.

Cluster

JEL Classification

L26

1

.

M21

. . . . O30

O44

Q57

R11

Introduction

The development and implementation of cluster development strategy depend on the position of the regional leadership and effective cooperation between public

authorities, business, and science. Clusters are the locomotive of the innovation process due to the fact that the socio-economic development of regions and the country requires the search and use of new forms of organization of enterprises and their interaction. Thus, the cluster approach is relevant in solving the environmental problems of particular territories and the country (erosion and deterioration of soil fertility, reduction in forest resources, lack of fresh water, acid rains, etc.). The paper aims to consider the essence, necessity, and positive aspects of the creation and functioning of clusters, including an ecological cluster. Research objectives are to reflect the economic essence of the cluster approach and identify the need to create clusters, their current state, and the features of the interaction between government, business, and science during the application of the cluster approach using an ecological cluster as an example. It is shown that the cluster approach is applicable in different areas of activity. It has different content and forms of manifestation. In Russia, cluster initiatives aim to develop a system of interaction between the state and cluster members in the information sector, biotechnology, and industry. It is necessary to develop tourism, environmental, educational, and other clusters. Small and medium businesses play a special role in the development of clusters. As a form of network interaction, clusters make it possible to switch to an innovative path of socio-economic development.

2 E. V. Dubinina . E. V. Zhilina (&) Bashkir State University, Ufa, Russia e-mail: [email protected] E. V. Dubinina e-mail: [email protected] G. A. Musina . A. A. Nikitina . Z. Z. Sabirova Bashkir Cooperative Institute (Branch) of the Russian University of Cooperation, Ufa, Russia

Materials and Methods

The authors identify two specific areas of interaction between the state, business, and science: system and cluster approaches. High flexibility of interaction between elements should be ensured through methodological, consulting, informational, and organizational support for development.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_53

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3

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Results

Today’s economy and fierce competition in the markets of goods, works, and services require business structures to find and implement more effective methods and technologies of interaction and management. It is also necessary to form partnerships with suppliers and consumers of goods, works, and services to reduce production costs and increase the level of competitiveness. Under competitiveness, it is necessary to understand the ability of business entities to resist and counteract rivals. Competitiveness is associated with the process of identifying and applying competitive advantages in practice. In the system of competitive interaction, an important place is given to the choice of typical strategies based on competitive advantages. The author of the choice of strategic competition is Porter. According to the model he developed, the competitive advantage is represented by two types: the strategy of leadership in terms of costs by reducing them and the strategy of product differentiation. Low costs of production and sales of products determine a lower price than competitors and, accordingly, the possibility of making a profit. Product differentiation means providing consumers with higher quality value, high consumer properties, and better after-sales service. The manufacturer sets a high price for a differentiated product and receives a high profit. Each of the presented strategies has inherent risks. Thus, when business entities choose a cost reduction strategy, there is a possibility of losing consumers due to the release of standard and non-branded goods and focusing demand on a competitor’s product. A high level of risk while differentiating a product arises due to the emergence of preferences for it only in one segment; it leads to a decrease in the financial stability of the manufacturer due to the high costs of brand improvement. According to Porter, the main mistake of entrepreneurs is their simultaneous application of all the strategies, which are considered by the authors. The identification of the essence of the country’s competitiveness should be considered as the merit of Porter, presented through the prism of the competitiveness of not particular enterprises but clusters of associations of firms in different industries. Goods, works, and services, the quality of which is usually at the same level, do not compete with each other. Competition develops between enterprises, the competitive superiority of which is revealed through competencies and opportunities to reduce the costs of promoting goods, works, and services. Most enterprises (manufacturers) are unable to do this. In this connection, the territorial association of industry producers into clusters is relevant (Konovalova, 2011).

Over the past 20–25 years, there has been an increased interest in the formation of clusters on the part of politicians, managers, and businesses. It is believed that clusters are the most perspective model of the network organization of production in the twenty-first century. The clustering of the economy, in turn, is a prerequisite for its transition to an innovative one. There are many definitions of the category “cluster”: groups of enterprises that are geographically close and specialize in producing similar goods (services); set of firms using the same technologies, including in interaction with each other. Scientific ideas about clusters have developed under the influence of various economic schools and differ significantly from each other. Porter gave a more precise definition of a cluster: “A cluster is a group of related competitive sectors of the economy” (Porter, 2005). In the author’s opinion, a cluster should be considered as a group of organizations (companies, firms, banks, institutions, etc.) concentrated in one territory, which are complementary and interact to enhance the competitive advantages of their particular elements and the whole cluster. The merger of companies and organizations has high rates of cooperation. The cluster has a center (specialized organization) dealing with methodological, organizational, analytical, and informational support of development. Clusters can include small networks of small and medium-sized businesses in the micro-territory (less than 50 entities) and a large number of enterprises and structures (6–7 thousand) (Kuleshko, 2017). As a special form of cooperation, the cluster allows more effectively using resources and achieving the desired result for all cluster members. Clusters contribute to the development of the region’s economy, improve the quality of the product and employment of the population, increase the competitiveness of the region and inflow of foreign investment, and also allow training a wide range of entrepreneurs, establishing effective cooperation, and increasing the mobility and flexibility of companies. The purpose of the creation and functioning of clusters is to search for new niches for investment, diversify, and increase competitive advantages. Cluster is a multi-valued concept, i.e., it may have different content for different areas. The cluster approach applies to various areas of activity of economic entities: the gaming industry, urban planning, manufacturing, economics, culture, tourism, linguistics, electronics, ecology, etc. Activities (projects, programs) aimed at the activation and development of the cluster are called cluster initiatives. Unfortunately, the formats of state support in the area of clusters have recently changed: the largest number of cluster initiatives falls on information, biotechnologies, and industrial clusters.

Cluster as a Form of Interaction Between Government, Business, and Science

As the practice of implementing cluster initiatives shows, many regions, regardless of the federal center, independently seek to build cooperation chains between science, universities, and the real sector of the economy. According to experts, cluster policy must support the most efficient industries, considering their specifics and existing potential, the availability of qualified personnel. Clusters are considered as one of the types of business-type networks. Entrepreneurship brings together representatives of small and medium businesses that are not geographically tied, and their locality allows for significant flexibility and adaptability of entrepreneurial activity. In contrast to business networks, clusters are sectoral and regional (intersectoral) associations of a wider range of participants. Thus, as a form of network organization of intercompany interaction, clusters allow changing innovative adaptation of internal structures to the external environment. The successful functioning of clusters is characterized by the interrelations of participants, cooperation and collaboration, focus on market needs, ensuring that the strategy of each type of business activity complies with the overall development strategy of the region. Long-term vertical and horizontal interaction of business entities is effective if five conditions are met (the “Five ‘I’” concept developed by M. Voynarenko): initiative, innovation, information, investment, and interest. The principle of synergy, implemented in this case, allows combining the advantages of small forms of entrepreneurship and large-scale industries while maintaining their autonomy. Thus, the cluster can aggregate the advantages of the industrial location of companies and regional management. Within the framework of the activation of cluster initiatives, it is necessary to review the forms of state support for clusters in other areas, including tourism, medicine, agriculture, science, ecology, education, etc. Such forms include, for example, training and consulting, the creation of special tax regimes for medium and small entrepreneurs, business risk insurance, availability of capital, etc. An important part of the regional policy is to improve the ecological state of the territory. Environmental protection and strengthening control over the rational and efficient use of various kinds of resources are essential conditions for ensuring the competitiveness of the national economy and improving the population’s quality of life. Stimulating the development of an environmentally efficient business is one of the priority areas for implementing state policy. State support for business can be provided through regulatory assistance and the introduction of financial incentives. Ecological clusters use “green technologies” (“green projects”) that contribute to maintaining the ecological

273

balance of the location region and reducing the production costs of cluster members due to a decrease in the required volume of purchases of new raw materials and energy. The ecological cluster should be considered from two positions. Thus, in a broad sense, the ecological cluster is a set of natural, social, and economic entities that affect the environment. In a narrow sense, the environmental cluster is a set of enterprises and organizations using green technologies (waste management, air and water pollution control, land restoration, energy production from renewable sources, reduction of harmful emissions into the atmosphere, etc.). As part of the functioning of the ecological cluster, decisions are made regarding the delivery of waste (forest industry, pulp and paper mills, etc.), its sorting and processing, the formation and sale of secondary raw materials, and the creation of energy-efficient fuel. The ecological clusters form the conditions for rational, balanced, scientifically based, and integrated use of resources (information, material values, intellectual potential, energy, finance, etc.). Clusters contribute to the reproduction of the ecological environment, provide economic growth, and increase the well-being and quality of life of the population, the growth of ecological culture, etc. In clusters, the efforts of participants are combined to analyze information flows to create new highly effective “green projects” and conduct scientific developments and research. Inter-cluster interaction increases the mutual trust of cluster members, stimulates compliance with environmental standards, and minimizes damage to the environment. The implementation of “green projects” involves the use of economic instruments (taxes, subsidies, etc.), state regulation measures (implementation of standards), and noneconomic measures (voluntary initiative, open information). Therefore, the cluster approach, presented in the target program of the Republic of Bashkortostan “Improving the system of solid domestic waste management,” allows dividing the territory of the region into eight zones. The center of these zones is inter-municipal complexes, represented by solid waste landfills, waste sorting lines, and waste transfer stations. The proposed program provides the removal of the waste remaining after processing to landfills. The implementation of the project contributes to the elimination of unauthorized landfills and the return of the lands occupied by them to economic circulation (Bashinform, 2014). The functioning of the waste processing cluster in the Republic of Bashkortostan contributes to the creation of a complex of interconnected enterprises that ensure the following:

274

• Processing of municipal solid waste (MSW) and the use of secondary raw materials in production processes; • Implementation of an innovative technological approach for deep processing of MSW; • Improvement of the ecological situation in Bashkortostan; • Development of ecological culture and responsibility of the population and business (Bart & Peresada, 2021). Scientific research gives a special place to the issues of reducing the material consumption of production and the use of new technologies in the economic activities of organizations. The importance of environmental entrepreneurship in solving environmental problems is great. SMEs are realizing the benefits of cleaner production while reducing material costs, complying with environmental regulations, and improving customer relationships. The development of the environmental business as one of the conditions for introducing innovative technologies in Russia involves the organization of environmental protection, the development of environmental technologies, and the production of profitable and resource-saving goods (services). Green business is based on eco-efficiency, which leads to lower production costs and contributes to changing the mechanisms of the market. Simultaneously, there is a reduction in the production of energy-intensive and material-intensive goods (services) and the creation of new goods based on environmentally friendly technologies. The introduction of “green” taxes should be singled out as the primary tool for stimulating environmental business.

E. V. Dubinina et al.

4

Conclusion

Thus, regions with effectively functioning clusters have high indicators in the development dynamics; clustering is one of the directions of their socio-economic development. Cluster formations combine the successful coexistence of state interests, science, business, and education.

References Bart, T. V., & Peresada, A. V. (n.d.). Prospects for creating a waste processing cluster in the Republic of Bashkortostan. Retrieved from https://bstudy.net/786680/ekonomika/perspektivy_sozdaniya_ musoropererabatyvayuschego_klastera_respublike_bashkortostan. Accessed October 16, 2021. Bashinform. (2014, October 18). Eight ecological clusters are to appear in Bashkiria. Retrieved from https://www.bashinform.ru/ news/social/2014-10-18/v-bashkirii-poyavyatsya-vosemekologicheskih-klasterov-2218740. Accessed October 16, 2021. Konovalova, M. E. (2011). Cluster approach and its role in the structural balance of social reproduction. Advances in Current Natural Sciences, 12, 93–96. Retrieved from https://naturalsciences.ru/ru/article/view?id=29034. Accessed October 16, 2021. Kuleshko, Y. Y. (2017). Cluster as a special form of cooperation. Sciences of Europe, 14–3, 31–34. Retrieved from https:// cyberleninka.ru/article/n/klaster-kak-osobaya-forma-kooperatsii. Accessed October 16, 2021. Porter, M. E. (2005). On competition (Pelyavsky, O. L., Usenko, E. L., & Shishkina, I. A. Transl. from English). Publishing house “Williams.” (Original work published 1998).

Stereotype and Reputation of Consumer Cooperation Nadezhda L. Rogaleva

Abstract

Concept for the development of consumer cooperation 2017–2021 puts one of the strategic tasks of popularizing consumer cooperation, determining the degree of implementation of this task and actualization of the research direction. The article examines in detail the concepts of “reputation”, “stereotype”, defines the origins of the formation of concepts and their modern application to various areas of activity, territorial entities, including consumer cooperation. The purpose of the study is to determine the characteristics of reputations and stereotypes of consumer cooperation. The basis of methods and methodology are: monographic, logical methods of cognition, induction and deduction, as well as statistical. The results of the assessment of the stereotype and reputation of consumer cooperation by specialists in this area, residents of cities and rural areas are presented. Keywords

..

.

. .

Stereotype Reputation Image Consumer cooperation Sustainable development Strategic sessions JEL Classification

L14

1

. . . L30

L39

M30

.

M39

Introduction

The process of popularization and formation of a positive image of consumer cooperation enterprises consists of a combination of opinion and sensual perception by the public N. L. Rogaleva (&) . L. E. Venyaminova Kamchatka Branch of the Russian University of Cooperation, Petropavlovsk-Kamchatsky, Russia e-mail: [email protected]

and Lyubov E. Venyaminova

of the image of consumer cooperation, which leads to the formation of impression, further reputation, and stereotype. The formed image of consumer cooperation lingers in the minds of the public, fills all areas of their human activity and largely controls consumer behaviour (Rogaleva, 2007). Studying the problem of perception of consumer cooperation by the public, it’s impossible not to touch upon the concepts: stereotype and reputation. Well-known domestic and foreign researchers in the area of the etymology of words define these categories as follows.

2

Materials and Methods

The definition of “stereotype” is very diverse, experts in the literature note its failure, vagueness, and even non-terminology (Shchekotikhina, 2008), but these characteristics allow the authors to use this word to refer to many phenomena because the concept of “stereo typicality” is a very capacious and multidimensional formation. “In a metaphorical sense, a stereotype is a firmly entrenched image, a standard, permanent pattern. The basis for the application of this term to our ideas about being of ourselves and other individuals was “the wide distribution of stereotypy products, huge number of elements combined in a “set”, as well as their stability” (Shchekotikhina, 2008). The inherent nature of the phenomenon of stereotyping of any activity contributed to its application in characterizing objects of any orientation: sociology, political science, economics, etc., and various territorial and sectoral transformations, including consumer cooperation (Nikolaeva, 2000). Reputation is a component of the image of enterprises, is considered as one of the indicators for assessing the competitiveness and image of economic entities (Nikitina, 1995). Reputation is a public assessment of its qualities, advantages, and disadvantages acquired by the object by means of image formation; an image is a purposefully and

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_54

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(or) spontaneously formed image (Rogaleva, 2007), which is designed to have an emotional and psychological impact on someone with its stable idea of the object to popularize it (Donets, 2001). The points of contact between the concepts of “image” and “reputation” are confirmed by the following characteristics: both concepts are structured on information and exist in a single information space, but similar features end there. The main difference between these concepts lies in the fact that the keyword in the definition of the concept of “image” is the word “image”, and in the concept of “reputation”—the words “assessment” and “opinion”. The concepts of “reputation” and “stereotype” are similar to each other, they are also formed over time, have an impact both on public consciousness as a whole and on the individual, can transform, form, consolidate, and disappear in consciousness. There are also differences, “reputation” is formed faster than “stereotype” in time and is fixed in the mind, “reputation” can be characterized differently by different groups of the public, “stereotype”, as a rule, is formed in all groups in the same way. “Reputation” is different over time and can be changed. “Stereotype” is a firmly fixed temporal characteristic; it will historically exist together with the object. If “reputation” can be formed immediately in the mind of the consumer, “stereotype” is formed over a long period in the enlarged social group. The assessment of the concepts of “reputation” and “stereotype” determined their inseparable connection with the concept of “image”: firstly, “image”, secondly, “reputation”, and thirdly, “stereotype” (Fig. 1).

3

Results

In the Concept for the development of the consumer cooperation system 2017–2020, one of the strategic directions is the popularization of the system of consumer cooperation, in this regard, it’s necessary to determine the characteristics of the stereotype and reputation of consumers cooperation enterprises (Nashirvanova, 2020). To determine the stereotypes and reputation of consumer cooperation enterprises, the authors used data from an exploratory study conducted by interviewing specialists in the area of consumer cooperation and the public of different ages, the survey was conducted in different territorial subjects of the Russian Federation, the chronological path was 2016–2020 years. The results of the research of specialists determine the following stereotypes and characteristics of the reputation of consumer cooperation enterprises (Fig. 2). The data in Table 2 determined that the stereotypes of the image of consumer cooperation are generally positive:

“Sustainable development”, “Entrepreneurial unity of command”, “Help to rural residents”, “Strategic sessions”, consumer cooperation is the foundation for the development of agriculture in the regions and the country as a whole. The reputation of consumer cooperation in most cases is also determined by the positive characteristics “Development of small business”, “Joining forces”, but there are also negative ones “Unpopular among the urban population”, etc. One expert defined the reputation of consumer cooperatives positively, and motivated it as “Prospects for the development of the countryside”. The study also confirmed the hypothesis that reputation is formed first, and then the serotype. Now it’s necessary to determine the opinions of the public about the stereotype and reputation of consumer cooperatives. The results of the study demonstrated that urban residents under the age of 30 don’t know the system of consumer cooperation, only 32% of respondents aged 30–60 know consumer cooperation and define its stereotype and reputation as follows (Table 1). Analyzing the results of Table 1, the authors note that most urban residents associate consumer cooperation with rural areas. The reputation of consumer cooperatives “through the eyes of urban residents” is generally satisfactory, but positive characteristics “Reviving entrepreneurship”, negative formulations, mainly of the following order: “Negative”, “Fading” etc. are taking place here. It should be noted that no single respondent identified the system of consumer cooperation as a way of sustainable development, which can be observed in the results of a survey of specialists. Next, the authors consider the results of a study of the stereotype of the image and reputation of consumer cooperation, taking into account the opinions of rural residents of the districts. The survey data showed that of the total number of rural residents surveyed, about 35% don’t know the consumer cooperation system as a whole. This group mainly includes men and women under the age of 35. Other 65% of respondents know consumer cooperation enterprises, the opinions of respondents about the stereotypes and reputation of this structure are presented in Table 2. Table 2 determined that rural residents, in contrast to the urban population, characterize consumer cooperation from a positive point of view. So, they define the stereotype of the image of consumer cooperation stores as “Discount stores”, “Everything for the rural population”, the characteristics of reputations as follows “Positive”, “Always fresh products”, “Good” and “Wide range”, and others. The study also determined that the respondents define the system of consumer cooperation from a negative point of

Stereotype and Reputation of Consumer Cooperation

277

Fig. 1 Relationships between the concepts of image, reputation, stereotype. Source Compiled by the authors

Fig. 2 Stereotypes and characteristics of the reputation of consumer cooperation, identified as a result of the survey of specialists. Source Compiled by the authors

Rural poverty alleviation

Positive

Reputation Feature Unpopular among the urban population

Small business development Joining forces

Sustainable development

Strategic session

One system

Stereotypes Agricultural Development Path

Help to rural residents Entrepreneurial unity of command

Table 1 Stereotype and characteristics of the reputation of consumer cooperation, identified as a result of a survey of urban residents

Image stereotype

Reputation Feature

Harvesting activities Countryside Collective farm trade Sells goods from the countryside Stores are located in the countryside Help to rural residents

Fading activity Revives entrepreneurship Renewable activity, but unwilling Satisfactory Negative Bad

Source Compiled by the authors

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Table 2 Stereotypes and characteristics of the reputations of consumer cooperation, identified as a result of a survey of rural residents

Stereotypes

Reputation Feature

Discount stores Large, grey, gloomy poorly lit buildings No consumer cooperation Everything for the rural population Stores are located in the countryside There are no exclusive and expensive products in the assortment A number of organizations interacting with each other Everything for the rural population

Negative Narrow range of products Negative Positive A wide range, always fresh products at an Affordable price Known among retirees Selling non-fresh food Always fresh food Their employees are paid low wages Poor trade service to the population

Source Compiled by the authors

view. For example, image stereotypes are: “Large, gray, gloomy, poorly lit buildings”, “There are no exclusive and expensive products in the assortment”, and “Poor trade service for the population”. Negative reputation characteristics: “Bad”, “Sell non-fresh food”, and “Their employees are paid little wages”.

reputation of consumer cooperation is mostly positive; it’s very necessary and indispensable for rural residents. The strategic goal of promoting consumer cooperation is rudimentary and requires adjustment of tasks, taking into account the results of the international session “Consumer Cooperation 2030”.

4

References

Conclusion

Thus, the study showed that the stereotypes and reputations of the consumer cooperation system are different. Urban residents associate consumer cooperation with the countryside. The reputation of consumer cooperatives “through the eyes of urban residents” is generally satisfactory and is represented by the following statements “Negative”, “Fading”, etc. At the same time, the authors note that no one of the respondents defined the system of consumer cooperation as a “Positive” characteristic. Rural residents define the system of consumer cooperation, both from a positive point of view and from a negative one. Positive image stereotypes: “Discount stores”, “Everything for the rural population”, the characteristics of the reputations are as follows: “Positive”, “Always fresh products”, “Good”, and “Wide range”. Negative image stereotypes are: “Large, gray, gloomy, poorly lit buildings” and “There are no exclusive and expensive goods in the assortment”, etc. Reputation characteristics: “Negative”, “Bad”, “Sell non-fresh products”, and “Their employees are paid low wages”. The above study established the stereotype of consumer cooperatives as a system associated with rural areas. The

Donets, P. N. (2001). On the typology of stereotypes (pp. 183–188). Publishing house of Voronezh State University. Nashirvanova, Y. F. (2020). Methodology for assessing the investment attractiveness of cooperative organizations. Economics and Management: Problems, Solutions, 1, 9 (105), 10–16. Nikitina, S. E. (1995). Stereotypical judgments and speech clichés as cultural barriers, speech and mental stereotypes in synchronicity and diachrony. Moscow, pp. 81–83. Nikolaeva, T. M. (2000). Speech, communicative and mental stereotypes: sociolinguistic distribution. Language as a means of broadcasting culture. Nauka, pp. 112–131. Rogaleva, N. L. (2007). Formation and assessment of the image of trade organizations: speciality 08.00.05 “Economics and management of the national economy (by industry and spheres of activity, including economics, organization and management of enterprises, industries, complexes; innovation management; regional economics; logistics; labour economics; population economics and demography; environmental economics; business economics; marketing; management; pricing; economic security; standardization and product quality management; land management; recreation and tourism)”. Dissertation for competition scientific degree of candidate of economic sciences, p. 187. Shchekotikhina, I. N. (2008). Stereotype: aspects and perspectives of research, Bulletin of the Leningrad State University named after A. S. Pushkin, 1, 5 (19), 69–80.

Spiritual and Moral Foundations of Consumer Cooperation in the Light of Ethnocultural Traditions (Using the Activities of Chuvashpotrebsoyuz as an Example) Erbina V. Nikitina , Elizaveta M. Mikhailova , Tatiana N. Evgrafova , Kristina V. Fadeeva , and Marina N. Grigorieva Business (2005). Since the 2000s, the Chuvashpotrebsoyuz has been among the leaders of regional consumer unions of the Centrosoyuz system in Russia. High results in the activities of Chuvashpotrebsoyuz are achieved because many of its employees recognize the relevance and importance of the moral principles and rules for the workers of consumer cooperatives. This is facilitated by the fact that cooperative principles and cooperative philosophy are consonant with the ethnocultural traditions and mental qualities of the Chuvash people. The Chuvash mentality is based on such traits as collectivism in everyday life, love of the land, reverence for nature, respect for labor, honesty, and loyalty to one’s oath and duty. A comparative analysis of the ethnocultural traditions of the peoples of Russia allows us to see the influence of ethnicity on the effectiveness of consumer cooperation in a new light. The research results are also of practical value. They can be considered when making managerial decisions related to the differentiation of tasks of the cooperative movement in different regions of the country.

Abstract

The paper aims to reveal the relationship between the effectiveness and efficiency of the activities of enterprises and organizations of consumer cooperative unions of Russia and the spiritual and moral foundations of consumer cooperation, and the ethnocultural specificity of the regions. Consumer cooperation is a sociallyoriented system, and one of its main tasks is the social protection of the population in rural areas. In considering the problem of preserving the spiritual and moral foundations and social mission of consumer cooperation, the authors rely on the analysis of socio-philosophical, historical, cultural, and economic texts published in Russian and English over the past twenty years. The authors also implement content analysis of topical publications in the media and the Internet. The paper deals with the moral principles and rules of the consumer cooperation workers developed by Centrosoyuz of Russia, which is actively used in the work of cooperative organizations for the spiritual and moral education of employees. These moral principles and rules are based on the ideas of the Declaration on Cooperative Identity (1995) and the Code of Moral Principles and Rules in

Keywords

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Consumer cooperation Centrosoyuz of Russia Cooperative philosophy Moral principles Ethnic mentality Chuvash Republic

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E. V. Nikitina (&) . E. M. Mikhailova . T. N. Evgrafova . K. V. Fadeeva . M. N. Grigorieva Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected]

JEL Classification

I31

. . . J54

J43

Z13

E. M. Mikhailova e-mail: [email protected] T. N. Evgrafova e-mail: [email protected]

1

K. V. Fadeeva e-mail: [email protected]

Consumer cooperation is an essential element of the material and spiritual life of society. The essence of this concept mainly lies in the formation of the social infrastructure of

M. N. Grigorieva e-mail: [email protected]

Introduction

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_55

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rural areas and life support. The content of the consumer cooperation activity is determined by the intermediate position between non-profit organizations and organizations engaged in entrepreneurial activity. Consumer cooperation is based on the principles of cooperative philosophy and cooperative democracy. For the first time, these ideas were expressed in the nineteenth century by a group of philosophers, namely, R. Owen, L. Blanc, and S. Fourier. These philosophers put morality in human relations at the forefront of the cooperative movement, which presupposes equal rights, collective labor, and common ownership. Subsequently, these provisions were put into practice in the activities of European consumer cooperatives. Today, cooperators are guided by the Statement on the Cooperative Identity proposed by the International Cooperative Alliance in 1995. The Statement includes such cooperative maxims as autonomy and independence, voluntary membership, economic interaction of cooperative members, membership control based on the norms of democracy, education, and professional development. The document also defines ethical principles and values, such as honesty, concern for society, and social responsibility. The goals and objectives that have a philosophical nature include the participation of cooperative movements from different countries in coping with current global problems, joint concern for the environment, provision of high-quality food to all segments of society, the desire to reduce unemployment among the working-age population. One of the leading participants in the international cooperative movement is the Central Union of Consumer Societies of the Russian Federation (Centrosoyuz of Russia). Russia joined the International Cooperative Alliance in 1903. According to the principles of the International Cooperative Alliance, the Russian consumer Cooperation strives to promote the preservation of humanistic values and the attitude to creativity in society in every possible way, relying on the development of an innovative social economy based on the principle of justice (Centrosoyuz of the Russian Federation, 2021). The cooperative system of Russia is large; it covers 71 regions and 111 regional consumer unions. Researchers are interested in the problem associated with the conditions for implementing cooperative principles and philosophy, which guide the Centrosoyuz of Russia, in regional unions of consumer societies, that is, in specific territories. According to our working hypothesis, an important factor in the effective development of the cooperative movement in the region is the conformity of the spiritual and moral foundations of consumer cooperation with the ethno-cultural traditions and the peculiarities of the mentality of the native people living in the territory. The paper aims to test the hypothesis and identify the relationship between the high-performance indicators of

E. V. Nikitina et al.

the Chuvash Consumer Union (Chuvashpotrebsoyuz) operating on the territory of the Chuvash Republic with the basic mental characteristics of the Chuvash people. According to the All-Russian Population Census of 2010, the number of the Chuvash people in the Chuvash Republic is 67.7%.

2

Materials and Methods

The research rests upon the analysis of socio-philosophical and historical-cultural sources published in Russian since the 2000s that are devoted to the spiritual and moral foundations of socio-economic activity of consumer cooperation: Borisov (2012), Vakhitov (2007), Golovko (2015), Gurov (2008), Ermakov (2003), Ismukov (2005). We also studied English-language texts on the theory, history, and current problems of cooperation: Anania and Rwekaza (2016), Develtere et al. (2008), Egorov et al. (2020), Kumar et al. (2015), Münkner (2012), Petrescu (2013), Tenesgen (2017), Zachernuk and Liu (2014), and others. We used content analysis of thematic materials in the media (Pravoslavie.ru., 2005; Russian Cooperation: Weekly newspaper of cooperators of the system of the Centrosoyuz of Russia, 2021; World Russian People’s Council, 2004) and publications on official internet portals (Centrosoyuz of the Russian Federation, 2021; Chuvashpotrebsoyuz., 2021). In order to identify the specifics of the activities of cooperative organizations of the Chuvash Republic that are part of the Chuvashpotrebsoyuz, we applied a comparative method to assess the general and special qualities of regional consumer associations. The starting point for the study is the document “Moral principles and rules of the consumer cooperation worker,” which is valid in all associations and unions of consumer societies that are part of the structure of cooperation in Russia. This document can be considered the moral code of the consumer cooperation worker since it describes an ideal business model, which every employee should strive to implement to complete the social mission and humanize the results of economic globalization.

3

Results

Consumer cooperation is a socially-oriented system. Unlike other economic entities, its tasks, in addition to making a profit, include the social protection of the population. Russian and international scholars noted the relevance of cooperative organizations in the current world (Centrosoyuz of the Russian Federation, 2021; Develtere et al., 2008; Egorov & Inshakov, 2021; Gurov, 2008; Ismukov, 2005; Kumar et al., 2015; Münkner, 2012; Tenesgen, 2017; Vakhitov, 2007; Zachernuk & Liu, 2014).

Spiritual and Moral Foundations of Consumer Cooperation in the Light of Ethnocultural Traditions …

To solve acute social problems in rural areas related to the capitalization of agriculture (the main of which is the elimination of poverty), the Russian consumer cooperative intends to use the potential of collective labor, focusing on the equality of its members and maintaining the intellectual and moral qualities of cooperators. The Centrosoyuz of Russia, uniting 2.1 thousand consumer societies and 1.3 million shareholders, has formulated “Moral principles and rules of the consumer cooperation worker.” This document is a guideline for cooperative organizations when working on the intellectual and moral image of cooperators. These principles and rules are based on the Statement on Cooperative Identity approved in 1995 by the International Cooperative Alliance and the Set of Moral Principles and Rules in Management fixed in 2005 at the VIII World Russian People’s Council. The code of moral principles and rules in economic management establishes the moral basis of the national economy, which should take into account the human desire for a decent life and a clear conscience, characteristic of the Russian mentality, as well as the rich religious and moral heritage of the Russian Federation. These ethical rules are suitable for use in commerce, business, and production; they can help harmonize partnerships and find a compromise in disputes between an employee and an employer (Pravoslavie.ru., 2005; World Russian People’s Council, 2004), pp. 40–41. Despite the seeming naivety of these principles in a market economy, they humanize the activities of consumer cooperation, bringing it closer to social entrepreneurship. Considering the moral and economic aspirations of Russian cooperators, Gurov noted that the Centrosoyuz of Russia and its local organizations are attempting to combine the material and spiritual, economics and morality to find the basis for their interaction (Gurov, 2008). In the combination of “economic activity—moral principles of management,” the economy is primary. The moral principles and rules of the consumer cooperation worker play an important role in the spiritual and moral education and professional activity of the employees of the Chuvashpotrebsoyuz (2021). The Presidium of the Council of the Centrosoyuz of Russia awarded the Chuvashpotrebsoyuz the first place for the development of common activities. In the field of improving the efficiency of activities, the development of procurement activities and joint purchases, one can distinguish the Morgaushskoe, Ishleyskoe, and Yadrinskoe district consumer societies, which are part of the Chuvashpotrebsoyuz. In our opinion, good results in the activities of the Chuvashpotrebsoyuz are due to high-quality management, whose representatives make up most of the employees of enterprises and organizations of the Chuvashpotrebsoyuz. Among the basic elements of the Chuvash mentality, researchers distinguish a collectivist approach to solving

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everyday social problems, a reverent and careful attitude to the land and nature in general, the priority of honest work, an acute sense of duty and loyalty to the commitment, and others (Evgrafova, 2014; Mikhailova, 2010; Nikitina, 2012). When identifying the origins of the mental specificity of the Chuvash, one should mention the values and spiritual traditions of the people that have been formed over the centuries. There is an influence of the natural and geographical features of the Chuvash territory (Chuvashia is located on the Middle Volga) and historical vicissitudes and cultural parallels in the fate of the Chuvash people. According to sociological research data, these mental characteristics are actively manifested in the lives of many Chuvash today (Boyko et al., (2011), which stimulates their desire for collective activity (joint production, procurement of products, and trade).

4

Conclusion

Chuvashpotrebsoyuz is quite successful; its total volume for the year is at least 10 billion rubles. Organizations of the Chuvashpotrebsoyuz working in the field of trade and public catering are trusted by 60% of the rural population. The products manufactured by the enterprises of the union are estimated at 1 billion rubles a year. These items include bread, culinary products, canned fruits and vegetables, soft drinks, meat products, and fish products. According to the best traditional recipes, these goods are manufactured under strict sanitary control of production. In 2018, at a working meeting with the Chairman of the Council of the Chuvashpotrebsoyuz M. V. Ignatiev and the Head of the Chuvash Republic, V. M. Pavlov thanked the employees of the collective for their effective work, emphasizing the importance of employing residents of villages of the republic (Petrova, 2018). The success of the activity of union is largely explained by the commitment of employees to the “Moral Principles and Rules of the Consumer Cooperation Worker,” which are quite consistent with the basic attitudes of the Chuvash mentality. Recognition of the humanistic basis of the material and economic sphere, a prudent attitude to property and wealth, collective work, and responsibility guide the ethics of the activities of enterprises and organizations of the Chuvashpotrebsoyuz in all sectors (Ismukov, 2005), p. 12. The social orientation of consumer cooperation is manifested in the organization of social protection of the village, the creation of new jobs, the development of new forms of small business, and the fight against poverty. The high demand for consumer cooperation by the population of Russia proves the existence of its morality at the proper level. Nowadays, Russian consumer cooperation faces two tasks. On the one hand, this organization must modernize,

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develop, and adapt to the conditions of socio-economic changes, especially in the field of digital capitalism. On the other hand, consumer cooperation should preserve its identity and promote standards of behavior based on corporate decency and conscience while focusing on the consumer’s well-being. Consumer cooperation should adapt to global changes in the social environment, economy, and politics, accompanied by an irrepressible desire for the enrichment and the perpetuating inequality of people, to a lesser extent. Russian moral traditions, consistent with the ethnocultural specifics of the Russian state, should become a deterrent in this process. The development of the cooperative movement in rural areas can stop the spread of hideous forms of capitalization of agriculture and private trade, combine business and morality in practice, establish parity of state laws and moral norms.

References Anania, P., & Rwekaza, G. C. (2016). The determinants of success in agricultural marketing cooperatives in Tanzania: The experience from Mweka Sungu, Mruwia and Uru North Njari agricultural marketing cooperatives in Moshi district. European Journal of Research in Social Sciences, 4(3), 62–75. Retrieved from https:// www.researchgate.net/publication/306118870. Accessed October 10, 2021. Borisov, V. D. (2012). Shared values and a cooperative business code in the organizational culture of consumer cooperation. Problems of Modern Economics, 4(44), 170–173. Boyko, I. I., Kharitonova, V. G., & Shabunin, D. M. (Eds.). (2011). Chuvash Republic: Sociocultural portrait. Chuvash State Institute of Humanities. Centrosoyuz of the Russian Federation. (n.d.). Official website. Retrieved from https://rus.coop. Accessed October 15, 2021. Chuvashpotrebsoyuz. (n.d.). Official website. Retrieved from https:// coop21.ru. Accessed October 15, 2021. Develtere, P., Pollet, I., & Wanyama, F. (Eds.). (2008). Cooperating out of poverty: The renaissance of the African cooperative movement. France: International Labour Office; World Bank Institute. Retrieved from https://www.ilo.org/wcmsp5/groups/ public/—ed_emp/—emp_ent/—coop/documents/publication/ wcms_735490.pdf. Accessed October 15, 2021. Egorov, V., & Inshakov, A. (2021). Cooperation as an integral part of the social and solidarity economy (SSE). In SHS Web of Conferences (Vol. 94, p. 01009). https://doi.org/10.1051/shsconf/ 20219401009 Egorov, V., Egorova, S., Inshakov, A., & Markarov, A. (2020). Consumer cooperation as a tool for sustainable rural development. In E3S Web of Conferences (Vol. 208, p. 03003). https://doi.org/10. 1051/e3sconf/202020803003

E. V. Nikitina et al. Ermakov, V. F. (2003). Social and moral foundations of consumer cooperation: A tutorial. Moscow University of Consumer Cooperatives Publishing House. Evgrafova, T. N. (2014). Revisiting the ethnocultural identity of the Chuvash people. St. Petersburg State Polytechnical University Journal: Humanities and Social Sciences, 2(196), 59–65. Golovko, V. B. (2015). Evolution of cooperative philosophy and development of credit consumer cooperation. Universum: Economics and Law, 7(18). Retrieved from http://7universum.com/ru/ economy/archive/item/2310. Accessed October 15, 2021. Gurov, Yu. S. (2008). Consumer cooperation problems philosophical analysis. Vestnik of the Cheboksary Cooperative Institute, 2(2), 11–14. Ismukov, N. A. (2005). The philosophy of consumer cooperation (moral aspect). Development prospects and spiritual and moral foundations of the socio-economic activity of consumer cooperatives: Materials of the Interuniversity scientific-practical conference (Part 1) (pp. 8–14). Russika Publishing House. Kumar, V., Wankhede, K. G., & Gena, H. C. (2015). Role of cooperatives in improving livelihood of farmers on sustainable basis. American Journal of Educational Research, 3(10), 1258– 1266. https://doi.org/10.12691/education-3-10-8 Mikhailova, E. M. (2010). Conservative paradigm as a factor in the preservation of national identity. Bulletin of the Chuvash Branch of the Russian Philosophical Society, 4, 100–105. Münkner, H.-H. (2012). Cooperation as a remedy in times of crisis agricultural cooperatives in the world their roles for rural development and poverty reduction (September 1). Euricse Working Paper, 41, 12. Retrieved from https://ssrn.com/abstract=2145317. Accessed October 10, 2021. Nikitina, E. V. (2012). Chuvash ethnic mentality: Essence and features. Chuvash State University Publishing House. Petrescu, C. (2013). The importance of cooperatives in the Romanian society. Calitatea Vietii, 24(2), 213–244. Retrieved from https:// www.revistacalitateavietii.ro/2013/CV-2-2013/07.pdf. Accessed October 10, 2021. Petrova, N. (2018, March 15). Employment is important for the village. Rossijskaya Kooperaciya [Russian Cooperation], 10, 7. Pravoslavie.ru. (2005, March 4). Representatives of the state and the business community supported the set of moral principles. Retrieved from http://www.pravoslavie.ru/12877.html. Accessed October 10, 2021. Russian Cooperation: Weekly newspaper of cooperators of the system of the Centrosoyuz of Russia. (2021). Official website. Retrieved from https://rkoop.ru. Accessed October 15, 2021. Tenesgen, A. (2017). Exploration of the role of Ethiopia Cooperative Unions in rural development and their challenges. Journal of Agriculture, Food Natural Resources, 1(1), 80–88. Vakhitov, K. I. (2007). The history of consumer cooperation in Russia. Dashkov and Co. World Russian People’s Council. (2004). Code of ethical principles and rules in business. Pravoslavnaya beseda [Orthodox conversation], Vol. 2, pp. 39–43. Zachernuk, T., & Liu, G. (2014). Cooperatives and poverty reduction in China. In Gijselinckx, C., Zhao, L., & Novkovic, S. (Eds.), Co-operative innovations in China and the West (pp. 179–197). Palgrave Macmillan. https://doi.org/10.1057/9781137277282_12

Problems of Legal Regulation of Agricultural Cooperation Igor A. Vladimirov , Ravil Kh. Gizzatullin , Radmir A. Iksanov , and Svetlana A. Lartseva

Abstract

Purpose identification of legal problems of the organization of agricultural cooperation. Design/methodology/ approach legal methods are used for identification of the problems of legal regulation of agricultural cooperation. Conclusions Agricultural cooperation is a phenomenon of law that is polysystemic, since it combines, on the one hand, civil law features of production and consumer cooperatives, reflecting the specifics of agricultural activity. Originality/value in the conditions of the unprofitability of agro-industrial production. Keywords

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Agricultural cooperatives Agricultural organizations Legal status Legal regulation

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JEL Classification

K15

1

. . . K22

K29

K39

Introduction

The development of non-state forms of organization of the rural population, such as, for example, agricultural cooperatives, is a difficult but feasible task. Agricultural cooperatives are known for their ability to reduce economic costs. The cooperative sector has a special place in all sectors, including agriculture. Today, agricultural entrepreneurship is I. A. Vladimirov (&) . R. Kh. Gizzatullin Bashkir State University, Ufa, Russia e-mail: [email protected] R. A. Iksanov Bashkir Cooperative Institute (branch) of the Russian University of Cooperation, Ufa, Russia S. A. Lartseva Ufa State Aviation Technical University, Ufa, Russia

seen as the engine of the economic and cultural development of society. Agricultural entrepreneurship can provide an environment in which the right of all members of an agricultural cooperative to participate in entrepreneurial activities will be realized.

2

Materials and Methods

The problems of legal regulation of agricultural cooperation were studied in the works of (Feisali & Niknami, 2021; Rajaei et al., 2011; Voronina, 2019; XiangyuGuo, 2010).

3

Results

At any stage of the country’s development, social well-being and the reduction of unemployment, the reduction of poverty, the increase in the balance of income, are the most important factors that should be followed for a more successful implementation of rural development programs. Cooperatives provide farmers with the opportunity to develop their small businesses. The development of innovative products and new agricultural business, agrarian entrepreneurship should be the main political and legal priority at the present stage, which is manifested in the expansion of innovative products in rural areas, the launch of new enterprises, the promotion of rural development programs and the provision of sustainable employment in rural areas, as well as in the control of migration by creating and developing production cooperatives and increasing the participation of rural residents in cooperative activities. Small businesses in rural areas, in particular those involved in food processing, play an important role in creating jobs and are competitive in food markets. An innovative direction for the development of agricultural cooperatives is to conduct training programs for members of agricultural cooperatives and develop entrepreneurial skills

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_56

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in them for the development of agriculture, animal husbandry and agriculture, the creation of social networks and websites to provide training opportunities, information for members of cooperatives and start-ups.

4

Discussion

Since the establishment of one of the first cooperatives in Western Europe in the 1800s, cooperatives in the Western world have grown exponentially and have played an important role in making agriculture more sustainable. Since then, this type of organization has been operating and spreading to other industrialized countries as a selfsustaining means of combating poverty and hunger. Accordingly, to create a market-oriented entrepreneurial business in agriculture, applied training should be carried out in agricultural cooperatives (Feisali & Niknami, 2021). This means that it is necessary to strengthen the need for cooperative entrepreneurship training and improve its quality, developing an entrepreneurial culture in agriculture (Rajaei et al., 2011). It seems necessary, at the legislative level, to improve the system for supporting entrepreneurs and creating jobs. Currently more and more attention is paid by the state to the issue of the safety of food products produced by agricultural cooperatives. In recent years, the use of new technology, consumer demand and public administration in the field of food safety have changed significantly. The global trend in the field of food safety is that management methods in this area have changed from final control to control of ongoing procedures, on a “field to market” basis. This forces the subjects of agricultural business in the production of food products to face greater pressure from state bodies that carry out control and supervisory activities, as well as increasing pressure from market competition. In case of detection of violations, control and supervisory authorities bring violators to legal liability. The way out of this situation is the production of high-quality and safe agricultural products while providing the necessary technologies. The subjects of agricultural business experience certain difficulties in providing products with the required technologies, financial capital and labour resources to control agri-food security. Thus, the solution to this problem is seen in the creation by the subjects of agricultural business of a cooperative organization that will take responsibility for monitoring the safety of the quality of agri-food products, that is, an agricultural cooperative. Cooperatives can assist the authorities in monitoring and managing the quality of agricultural products. This is also confirmed by world practice (XiangyuGuo, 2010). The production of unsafe food by agricultural cooperatives, in violation of environmental and sanitary

requirements, poses a threat to the health and life of consumers. Also, such production undermines the credibility of agricultural cooperatives and in the future, this affects the economic situation of the economic entity. The adoption of legislation that strengthens environmental and hygienic requirements for food production will, in our opinion, make it possible to ensure nutrition and food safety, as well as control from the production of raw materials to the final production. The quality safety of food produced by agricultural cooperatives is becoming a key issue in agricultural production. Objectively, there is a need to reform the traditional methods of agricultural production. Ensuring the safety of food produced by agricultural cooperatives is necessary to meet consumer demand, as well as the development of regional, national and international competition, and increase the efficiency of agricultural cooperatives. The search for efficiency also encourages agricultural cooperatives to engage in agricultural land consolidation projects. In rural areas, agricultural land mobility is low. This is caused, among other things, by complex legal, organizational and administrative mechanisms and procedures. The joint management of ploughed fields does not affect the ownership of the land and allows agricultural cooperatives to control the process of using agricultural land. Letting or leasing land to an agricultural cooperative can minimize economic costs, avoid the transfer of ownership of the land, and, as a result, the legal procedures associated with this transfer. In the long term, the survival of agri-food cooperatives depends on their ability to involve young people in agricultural activities. This allows farms to grow in size, forming profitable production units. Cooperatives that can continue to provide their marketing services and, in addition, offer the opportunity to create profitable farms, can be an excellent starting point for new participants in this activity in the long term. As social enterprises, agricultural cooperatives play a key role in reducing poverty, promoting social harmony, stimulating equitable economic development, and ultimately contributing to the sustainability of agricultural production. The modernization of agriculture has raised several social, economic and environmental issues in the food chain, causing gaps between agriculture, nature and society, including depletion of natural resources and a food safety crisis (Wiskerke et al., 2003). By adjusting production systems, agricultural cooperatives can increase the resilience of the agricultural supply chain and enhance the resource integration of economic and ecological systems. The cooperatives produce both conventional and organic food, which are considered more valuable than chemically produced food. Agricultural cooperatives provide significant economic benefits to cooperative members, agricultural producers and local communities through the sharing and pooling of

Problems of Legal Regulation of Agricultural Cooperation

resources, improved market access, support for rural development and rural resilience. In addition to developing economic benefits, agricultural cooperatives have proven effective in alleviating poverty and meeting the demand for agricultural products. Agricultural cooperatives play an important role in providing the necessary conditions for farming, saving and lending, educating the rural population and providing markets with agricultural products. The cooperative movement in other parts of the world differs significantly from its Western origins due to specific cultural, social and institutional differences in developing countries. Western cooperatives embody the origins of the cooperative movement and therefore deserve special attention from scientists.

5

Conclusion

Agricultural cooperation is a phenomenon of law that is polysystemic, since it combines, on the one hand, civil law features of production and consumer cooperatives as a form of economic activity, and on the other hand, its content, reflecting the specifics of agricultural activity. Agricultural cooperation must be understood in two senses—narrow and broad. In a narrow sense, agricultural cooperation is a set of agricultural cooperatives and their associations (Voronina, 2019). This approach is formalized in the Law on Agricultural Cooperation. In a broad sense, agricultural cooperation is an economic association of all small forms of agricultural producers (peasant farms, household plots, agricultural cooperatives) for joint

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processing, storage, marketing, sale of agricultural products, lending, supply, etc. Comparative analysis of models of legal regulation of agricultural cooperation in foreign countries (EU countries, USA, Latin America, CIS member states, China, Japan, etc.) and Russia highlighted legal regulation of agricultural cooperation. The general patterns of regulation of agricultural cooperation of a special regulatory legal act on agricultural cooperation (agricultural cooperatives) or a section of the general regulatory legal act on cooperation (cooperatives) are identified.

References Feisali, M., & Niknami, M. (2021). Towards sustainable rural employment in agricultural cooperatives: Evidence from Iran’s desert area. Journal of the Saudi Society of Agricultural Sciences, ISSN 1658-077X. https://doi.org/10.1016/j.jssas.2021.05.004 Rajaei, Y., Yaghoubi, J., & Donyaei, H. (2011). Assessing effective factors in the development of entrepreneurship in agricultural cooperatives of Zanjan province. Procedia—Social and Behavioral Sciences, 15, 1521–1525. ISSN 1877-0428. https://doi.org/10.1016/ j.sbspro.2011.03.323 Voronina, N. P. (2019). Legal regulation of agricultural cooperation in Russia and foreign countries. Doctor of Law thesis. Moscow State Law University named after O.E. Kutafin (MGYuA). Wiskerke, J. S. C., Bock, B. B., Stuiver, M., & Renting, H. (2003). Environmental co-operatives as a new mode of rural governance. NJAS—Wageningen Journal of Life Sciences, 51(1–2), 9–25, ISSN 1573-5214. https://doi.org/10.1016/S1573-5214(03)80024-6 XiangyuGuo, M. (2010). Study on functions of the agriculture cooperative in food safety. Agriculture and Agricultural Science Procedia, 1, 477–482.

Study of Sustainability and Manageability of Economic Objects of the Cooperative Sector Nikolai T. Katanaev , Natalia A. Volkova , Tatyana A. Panteleeva , Liudmila L. Koroleva , and Aleksanr I. Boikov

economic objects of the cooperative sector and reveal the dependence of the forced motion of the object on external macroeconomic factors. The problem to be solved involves fundamental theoretical research and is relevant at all stages of economic development.

Abstract

Nowadays, demand for products in the market of consumer goods is determined mainly by the consumer properties of products. To increase the share of sales, market participants reduce the price of goods or increase the quality of products, considering the cost of newly created goods, which challenges producers with the task of optimizing in a given amount of resources. The evolutionary nature of operations in the market can collapse it, and, consequently, they can collapse the production of goods, in a short time. That is why research on the stability and controllability of an object is so relevant. The analysis of stability and manageability of economic objects of the cooperative sector is based on the study of quantitative estimates of the output of motor and tractor machinery. The normalized relative coordinates help identify the considered economic processes, changing over time in a class of functions, and analyze them, which helps to determine the trajectory of movement toward a given goal. The market factor and the resource factor are considered in determining the necessary amount of goods produced to maximize profit and ensure the continuity of the production process with labor, material, and financial resources. The use of the developed apparatus allows us, based on the classical theory of stability of systems, to study the inherent stability of

N. T. Katanaev Moscow Polytechnic University, Moscow, Russia N. A. Volkova (&) Moscow State University of Civil Engineering (National Research University), Moscow, Russia e-mail: [email protected] T. A. Panteleeva . A. I. Boikov Institute of World Civilizations, Moscow, Russia L. L. Koroleva Russian State Social University, Moscow, Russia

Keywords

.

..

.

Sustainability Manageability Production factors Automotive and tractor industry Monetization factor JEL Classification

C82

1

.

E27

Introduction

In an earlier publication, the authors of the article presented an analytical apparatus that helped analyze mathematical models that help establish functional relationships of external and internal factors with the key indicators of the production activities of economic entities, which include cooperative communities of individuals and organizations. The analysis was based on statistical data using polynomial, exponential, and other functions. This analysis helped achieve reliable results in identifying economic processes in these classes of functions. Based on the classical theory of stability of systems, the described tool allowed studying the intrinsic stability of economic objects of the cooperative sector and revealing the dependence of the forced motion of the object on external macroeconomic factors. Thus, to analyze the stability and manageability of economic objects, we will use the most important research object—the economy of the Russian Federation with its main indicator—GDP. However, it is hardly advisable to take this indicator as a key one, because we may face several difficulties associated with the prices we

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_57

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will have to consider (current or base). Further, it is necessary to consider several constantly changing factors affecting GDP, including money supply, inflation, crisis, imperfect methodology for calculating this indicator, various kinds of reforms, etc. Therefore, the main indicators are objective quantitative estimates of the output of motor vehicles, which are regularly published in the bulletin of banking statistics of Russia by the Central Bank of Russia.

2

Methodology

We will proceed from the situation that developed in the market of tractor equipment since 1965, when, in fact, there was a balance of supply and demand, forming an equilibrium point and making a movement in time (Fig. 1). In contrast to the Cournot equilibrium point adopted as the basis of research in many works (Aganin, 2018; Balter, 2013; Bulow et al., 1985; Cournot, 1838; Levina & Pokatovich, 2015; Malykhinn & Gataullin, 2011; Volkova & Katanaev, 2019; Zhukovsky et al., 2015) related to market models, the use of the balance point of supply and demand allows us to solve problems that involve a large number of market participants. The production of motor and tractor machinery is presented in normalized relative coordinates, for which the 1985 outputs were taken as reference values, as indicated in the names of the machinery output curves under the graphs in Fig. 1. Let us consider the sustainability of the automotive and tractor industry in all phases of the industrial cycle: recovery, rise, latent phase of a crisis, crisis, and stagnation. For this purpose, it is necessary to obtain an equation of the production dynamics of tractors, passenger cars, and trucks.

Fig. 1 Industrial cycles of the production of tractors and vehicles, beginning from 1965. Source Compiled by the authors

After that, it would be possible to obtain the solution for each equation and then analyze the convergence (stability) of these solutions. However, data in the graph (Fig. 1) is the graphical representation of solutions in the ready form. It is sufficient to identify these processes in the class of functions, in which solutions of differential equations are found, and analyze them. This procedure can be performed in relative (Fig. 1) and absolute coordinates. Let us perform this operation in absolute coordinates for the total values of cars and trucks, presented for one complete cycle including all above phases. As a result of the identification of output of cars in the class of exponential functions in this cycle, we obtained a description of the growth of output Ng in the phases of growth and the latent period of crisis, as well as a description of (2) the fall of car production Nf in the phase of the structural crisis in the Russian economy. Ng ¼ 1750 * ð1 - 1:5 * expð-t=6Þ þ 0:5 * expð-t=2ÞÞ þ 450; at : 0 ≤ t\22: ð1Þ Nf ¼ 1750 * ð1 - 1:5 * expð-t=6Þ þ 0:5 * expð-t=2ÞÞ * expðð-t þ 22Þ=3Þ þ 450; at : 22 ≤ t\34; ð2Þ In these equations, all exponents were negative. This fact indicates that all roots of the characteristic equation, which represents the virtual differential equation that we ignored, were real and, first of all, negative, which is characteristic of stable aperiodic systems.

Study of Sustainability and Manageability of Economic Objects of the Cooperative Sector

Thus, the automotive and tractor industry, as one of the most important branches of the economy, can be evaluated as a sustainable system. The same procedure can be applied to the analysis of the stability of the whole economy, with the same result as in the example considered. It should be noted that the analysis was carried out on its own component of the solution, which evaluates the nature of the processes of the object itself. The forced component of the general solution of the system’s dynamic equation is determined by the type of the right-hand side of this equation, which lays down the desired trajectory of motion, leading the object to a given target. The goal can be achieved if the object is stable and controllable. As for the forced component, it depends on a considerable number of factors, among which we will highlight only two—the market factor and the resource factor.

3

Results

The existence of the market is caused by the need to sell the goods and services produced for profit and ensure the continuity of the production process with labor, material, and financial resources (Panteleeva et al. 2021a; b). The presence of a considerable number of market participants predetermines a fiercely competitive struggle (Amirova et al., 2018). The theory of market relations goes back many decades. The earliest theoretical works in this field include the mathematical description of competition and cooperation of a limited number of firms in a commodity market, proposed over 180 years ago by Cournot (Cournot, 1838), as well as the works of numerous followers of this theory (Aganin, 2018; Balter, 2013; Bulow et al., 1985; Levina & Pokatovich, 2015; Malykhinn & Gataullin, 2011; Vysokos & Zhukovsky, 2015; Zhukovsky et al., 2015).

Fig. 2 Influence of the coefficient of monetization of the economy on the level of production of tractor machinery. Source Compiled by the authors

289

However, it is appropriate to note that in today’s conditions, dozens or hundreds of manufacturers of goods participate in the market. Moreover, participation in market relations is delegated to the consumer properties of goods, which provide a corresponding demand (Volkova & Katanaev, 2019). The struggle to increase the share of sales of their product on the market is conducted in different directions. The first direction is lowering the product’s price. Then, by increasing the sales volume, one can get more profit. The primary constraint, in this case, is the cost of goods. The second direction is an increase in the quality of products, allowing for increased demand. However, again, it is necessary to consider the increase in the cost of production due to additional costs. The third direction is the simultaneous improvement of quality and lowering of the product’s price. In each case, it is necessary to build a target function and solve the optimization problem in a given number of resources. Transactions in the market are predominantly evolutionary and cannot collapse the market in the short term and, consequently, the production of the commodity itself. This is possible only as a result of an external influence formed at the macroeconomic level, which is precisely the reason for the appearance of the forced component in the general solution of the differential equation describing forced quantitative changes in the production of goods (Sycheva et al., 2018, 2019). Let us pay special attention to financial resources and connect them with such a macroeconomic indicator as the monetization coefficient KM, which is the inverse value of the number of money supply turns (unit M2). The sharp drop with only a slight lag, an adequate drop in the production of tractors (Fig. 2), which are the basis of development, including the development of production cooperatives in agriculture (Vrazhnova et al., 2019).

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N. T. Katanaev et al.

The prolonged contraction of the money supply contributed to keeping KM so small that it was impossible to restore the automotive and tractor industry fully. It was the external influence that provided the mechanism that caused the structural crisis in the Russian economy, which fatally affected the real sector in the first place. A description of this mechanism can be found in our previous research (Katanaev, 2019), which provides a rationale for the emergence of unstable systems in the financial sector, causing an inflationary explosion that depreciated the money supply with tragic consequences for the whole economy.

4

Conclusion

Thus, the conducted calculation-theoretical studies of stability and controllability of economic objects allow us to formulate the following conclusions: 1. On the example of the automotive and tractor industry, it was shown that the eigenvalue component of the analytical solution of the dynamic model of this branch has a convergent solution, which is characteristic of stable systems that perform forced motion to the desired point (or to a certain state) determined by an external influencing factor. 2. The study of the processes of production of the automotive and tractor industry showed that the growth of the resource base (material, labor, and financial) led to the rise of the industry; the reduction of monetization level to an extremely low level (from 0.78 to 0.125) led to a sharp drop in production. In both cases, the movement was stable, the object was manageable, so it was possible to move the object to a crisis state by external management through the organization of hyperinflation. In the face of fierce competition at all hierarchical levels, such a tool against competitors can effectively achieve a given goal. 3. The financial resource is directly related to the monetization rate. The analysis showed that the sharp drop caused, with only a slight lag, an adequate drop in the production of tractors, which significantly impacted the agricultural industry. This trend had a disastrous effect on the whole industry, showing that it was almost impossible to restore the tractor industry to its former size.

References Aganin, Yu. I. (2018). Optimal investment management in the vicinity of the Cournot point. Bulletin of the University (state University of Management), 8, 99–105. https://doi.org/10.26425/1816-42772018-8-99-105

Amirova, E. F., Voronkova, O. Y., Pyurveeva, K. A., Panteleeva, T. A., & Sorokina, O. A. (2018). Functioning of agroindustrial complex in the conditions of digital economy. International Journal of Mechanical Engineering and Technology, 9(13), 586–594. Retrieved from https://iaeme.com/MasterAdmin/Journal_uploads/ IJMET/VOLUME_9_ISSUE_13/IJMET_09_13_061.pdf. Accessed October 16, 2021. Balter, E. B. (2013). Model of a posteriori dissemination of information between firms in the Cournot market. Scientific Notes of the Russian State Social University, 5(120), 110–119. Bulow, J., Geanakoplos, J., & Klemperer, P. (1985). Multimarket oligopoly: strategic substitutes and complements. Journal of Political Economy, 93(3), 488–511. Retrieved from https://www. jstor.org/stable/1832005. Accessed October 16, 2021. Cournot, A. (1838). Recherches sur les Principes Mathematiques de la Theorie des Richesses. Hachette. Katanaev, N. T. (2019). The automotive and tractor industry in the hotbed of inflationary explosion. Automotive Industry, 2, 37–39. Levina, E. A., & Pokatovich, E. V. (2015). Cournot and Bertrand competition: Choosing a strategic variable on the example of the Russian automotive market. Journal of Modern Competition, 9(6), 52–62. Malykhinn, V. I., & Gataullin, T. M. (2011). Cournot model of collaboration and competition. LAP Lambert Academic Publishing. Panteleeva, T. A., Boykov, A. I., Kuleshov, S. M., & Bykov, M. Y. (2021a). Digital technologies in cooperative enterprises: The case of online cash registers. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, O. V. Kaurova, & S. V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics (pp. 529–535). Springer. https://doi.org/10.1007/978-3030-57831-2_56 Panteleeva, T. A., Panasuk, A. A., Matunin, L. V., Dubanevich, L. E., & Kozlova, E. G. (2021b). Risk mapping methodology for agricultural cooperative sector enterprises. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, O. V. Kaurova, & S. V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics (pp. 879–888). Springer. https://doi.org/10. 1007/978-3-030-57831-2_94 Sycheva, I. N., Akhmetshin, E. M., Dunets, A. N., Panteleeva, T. A., & Potashova, I. Y. (2018). Labour relations in research of socio-economic systems. European Research Studies Journal, 21 (4), 356–367. Retrieved from https://www.ersj.eu/dmdocuments/ 2018_XXI_4_28.pdf. Accessed October 16, 2021. Sycheva, I. N., Chernyshova, O. V., Panteleeva, T. A., Chernyavskaya, S. A., & Khout, S. Y. (2019). Human capital as a base for regional development: A case study. International Journal of Economics and Business Administration, 7(1), 595–606. Volkova, N. A., & Katanaev, N. T. (2019). From the Cournot equilibrium model to the multifactor market model. The Bulletin of Eurasian Science, 11(2). Retrieved from https://esj.today/PDF/ 21ECVN219.pdf. Accessed October 16, 2021. Vrazhnova, M. N. Panteleeva, T. A., Vysotskaya, N. V., Chekadanova, M. V., Reznik, E. A., & Freydina, I. A. (2019). The economic security of companies within the petroleum machine-building sector in a climate of changing market conditions: Modeling risks. International Journal of Recent Technology and Engineering, 8 (2), 4425–4429. Retrieved from https://www.ijrte.org/wp-content/ uploads/papers/v8i2/B3330078219.pdf. Accessed October 16, 2021. Vysokos, M. I., & Zhukovsky, V. I. (2015). The Golden rule in the model of Cournot duopoly. Tauride Bulletin of Informatics and Mathematics, 2(27), 48–56. Zhukovsky, V. I., Kudryavtsev, K. N., & Gorbatov, A. S. (2015). The Berge equilibrium in Cournot’s model of oligopoly. Bulletin of the Udmurt University. Mathematics. Mechanics. Computer Science, 2 (25), 147–156.

Advanced Digital Technologies and Their Contribution to Sustainable Development

Organizational and Institutional Support of Digital Competitiveness for the Sustainable Development of the Green Economy and the Fight Against Climate Change Nikolay N. Nadezhin

Abstract

1

We elaborate on the specifics of using digitalisation (institutional foundations and organizational conditions) to deal with the environmental risks to the UN Sustainable Development Goals. We compiled a list of directions for the use of the indicators or organisation and institutional infrastructure within the increase in ecologization as an element of sustainability of national economies. We use the following research methods: the index method, the method of universalisation and the comparative method. The novel approach of this paper consists in the development of the directions for integration of the conditions of the digital provision of the economy with the sphere of the environmental component of national sustainable development. Adaptation of the suggested optimisation directions for implementing green energy will allow developing countries to ensure economic growth and will influence the balance with environmental indicators. Keywords

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Ecologisation Green economy Renewable energy Financing Low-carbon economy JEL Classification

K32

. . . . . . O13

O14

O31

O32

O33

Q01

N. N. Nadezhin (&) Moscow Regional Branch of the Russian Academy of National Economy and Public Administration Under the President of the Russian Federation, Moscow, Russia e-mail: [email protected]

.

Introduction

The fight against climate change and the achievement of the UN SDGs in the context of the green economy are effectively implemented in developed countries. At that, the important conditions in these activities are the institutional and organisational components of digital competitiveness. The focus on these innovative digital tools allows creating competitive products (services) and leads to the reduction of costs of human labour, resources, emissions from the functioning of economic sectors, the level of negative influence on climate change and energy consumption. Achievement of high environmental indicators and reduction of the negative climate footprint from the economy are the key components of environmental SDGs of the UN, which are declared at the level of countries and corporations that support their countries’ development. The leading manufacturing, service, trade and industrial companies of the world have adopted responsibilities within these Sustainable Development Goals. Achievement of these goals will raise the companies’ image at the national and international levels and facilitates the development of the state strategy in the sphere of ecologization. The effectiveness of the achievement of the declared environmental goals is connected with a range of organisational and institutional conditions of economic digitalisation. Their creation is connected with the activation of the efforts of business and government in the provision of the economy’s functioning to save ecology and reduce the effect on climate. In this paper, we try to determine the characteristics of the conditions of institutional and organisational provision of digitalisation. For this, we assess a ranking of countries by the indicators of the level of formation of the institutional and organisational conditions of digital competitiveness development and determine the specifics of these conditions in countries that are leaders in the sphere of the digital economy.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_58

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Materials and Method

Scientific works that deal with the analysis of the formation of the institutional basis and organisational aspects that influence the digitalisation of the economy include (Bergaentzlé et al., 2021; Grunfelder et al., 2019; Karhu & Linkola, 2019; Majava et al., 2022; Morales & Sariego-Kluge, 2021). In the above works, the authors study achievements at the level of national development. However, there is no general picture of potential directions for the impact of the conditions of the organisational and institutional character of digitalisation on the ecologization of sectors. In this paper, we use the index method to identify the values of ranking indices in the sphere of provision of the institutional and organisational aspects of the development of the economy’s digital competitiveness, which facilitate the achievement of the environmental SDGs. The following indicators are used: 1. Sustainable Development Index (indicator a); 2. Indicators of the organisational provision of digitalisation for the achievement of the environmental components: • Business agility, which demonstrates the business environment’s readiness and the ability for the implementation of innovations (indicator o1); • Technology, which allows identifying the organisation of technological provision of the economy to achieve the SDGs in the context of the environmental component (indicator o2);

Table 1 Indicators of the institutional provision and organisational aspects of digitalisation to achieve sustainability in the sphere of ecologization

Country

Denmark

3. Indicators of the institutional conditions of the digital economy development, focused on the achievement of SDGs in the environmental sphere: • E-Government (indicator I1); • Public–private partnerships (indicator I2). The comparative method is used to compare the results of the selected countries in the sphere of digital competitiveness and the indicator of sustainable development. The method of universalisation is used to provide a list of directions for the formation of the institutional basis and the organisational foundations of the economy digitalisation economy to achieve the indicators of the environmental parameters of sustainable development.

3

Results

Table 1 presents countries that are leaders by the level of provision of the organisational and institutional aspects of digital competitiveness. As shown in Table 1, the highest results in the sphere of achievement of the organisational and institutional conditions of using digital tools for the ecologization of the economy are demonstrated by Denmark. The country is ranked 2nd by the sustainability of development, 1st by the level of business agility, 7th by the development of technologies and 1st by the provision of institutional indicators. We should note Finland, which is ranked 1st by the level of achievement of the UN SDGs, 16th by the level of

Values of indicators, Rank Organisational conditions

Institutional aspects

Indicator o1

Indicator o2

Indicator I1

Indicator I2

1

7

1

1

Indicator a 2

Korea Rep

2

13

2

46

27

China

3

18

40

6

56

USA

4

9

9

18

41

Switzerland

7

12

16

7

8

Sweden

10

5

6

11

3

Netherlands

8

4

10

5

17

Singapore

9

1

11

2

60

Iceland

12

11

12

32

22

Norway

13

10

13

16

4

Germany

15

27

24

43

6

Finland

16

8

4

4

1

Lithuania

17

32

20

34

39

Ireland

18

37

25

29

9

Source Prepared by authors based on materials from Cambridge University Press (2022), IMD.ORG (2022)

Organizational and Institutional Support of Digital Competitiveness …

business agility, 8th by technology development and 4th by the level of institutional indicators. As for Sweden, it is ranked 6th by the level of e-government, 11th by the level of creation of public–private partnerships, 10th by business agility and 5th by technology organisation. This allowed Sweden to take the 3rd position by the level of sustainable development. Using the indicators of the development of Denmark and Finland, let us dwell on the specifics of the institutional and organisational conditions of digitalisation, which facilitate the provision of the environmental parameters of sustainability development in these countries. In the context of SDG 13 and SSG 7, Denmark implements the national projects of decarbonisation of the energy sphere. This project suggests the interaction of the three following elements (Bergaentzlé et al., 2021): • Technological provision of equipment that is used for the production of energy with the help of solar batteries or wind turbines. Large volumes of energy production with the help of energy are allowed by the use of innovative equipment, which includes high-tech bearings of the Swedish company SKF (Evolution.skf, 2022). These components are unique in the world, and their use allows raising the exploitation characteristics of wind turbines. Technological support in this sphere includes robotics, AI and big data; • Institutional support, which is formed on the basis of judicial and executive regulation in the sphere of tariffs for consumers (including companies), energy taxes and subsidies for projects that started using renewable energy from the EU assets. Here government and local authorities of different levels are involved; • Public–private partnership in the sphere of implementation of the national project of transition to renewable energy sources, which envisages stimulation of the subjects of the economy and private consumers to use green energy. The analysis has shown that in the first half of 2022, the implementation of this project allowed ensuring a high level of production of electric energy and its export, which influences the indicator of the economic component of Denmark’s sustainable development. During this period, wind turbines and solar batteries produced 10.9 TWh, which exceeds the 2020 production by 12% (Stateofgreen, 2022). Analysis of the scientific (Karhu & Linkola, 2019; Majava et al., 2022; Morales & Sariego-Kluge, 2021) and programme materials on the development of the digital support for the economy in the sphere of achievement of environmental SDGs in Finland (EC. Europa.EU, 2022;

295

Grunfelder et al., 2019) has shown that the country implements a set of tasks to raise the level of the country’s sustainability in view of the modern external challenges and threats. An important place in the sphere of sustainable development belongs to the indicators of the environmental component. In 2022, Finland adopted a plan of reforms, which suggests a focus on the main spheres of management and life activities, including the achievement of the indicators of environmental development and restoration of climate (EC. Europa.EU, 2022). While in the past, Finland used mainly coal to produce heat energy, in the 2000s and 2010s the country started using biomass from wood processing productions. During the preparation of a plan for the restoration of the country’s economic sustainability in 2022, there were detected the facts of the quick depletion of biomass, since there were no regulations for its use at the level of the energy market subjects. This led to the creation of roadmaps of recommendations for various sectors of the economy and households on the top-priority sources of renewable energy, with active works on the norming of the usage of biomass as fuel (Morales & Sariego-Kluge, 2021).

4

Discussion

Based on the results obtained, let us determine the opportunities for using the experience in digital competitiveness (institutional elements and organisational conditions) for the development of eco-oriented approaches in developing counties. The following directions implementing the economy ecologization can be offered: • Using managing structured on the large-scale implementation of public–private partnerships, connected with open access of subjects that consumer energy resources to the sources of renewable energy. This direction requires bringing the legislation to the norms and standards of countries that are oriented toward ecologization. It is also necessary to consider the possibility to attract national and foreign capital. In this case, the guarantor of the return of credits could be government; • Formation and management of the roadmaps of implementing renewable energy at the level of subjects of various sectors of the economy, which includes digital registration of participants, providing them with a choice of energy sources and suppliers; digital support for participants during payments and preparation of documents. Such an approach will simplify and provide guarantees to consumers regarding the procedure of selection of equipment and its installation and the methods of financing.

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Conclusion

We have distinguished the directions for using the institutional and organisational conditions of digital competitiveness in the context of the achievement of the environmental parameters of the sustainable development of the economy. Their adaptation may help developing countries that do not have traditional types of energy resources or that aim to refuse them in order to reduce the negative impact on climate. The choice of renewable types of energy depends on the potential and resources of specific territories (countries). The issues of financing of transition to renewable sources of energy should be the object of the strategies for sustainable development. These issues should be solved within the provisions of roadmaps for individual consumers (or companies) and network entrepreneurial structures, which activities are connected with the mass consumption of energy. The procedure of financing must not become a problem for consumers (corporations). It should be developed at the level of public discussions, with the following decision on the selection of the most acceptable options and forms of attraction of assets for the given purposes. Developing countries with low GDP can raise the economic component of economy sustainable development by focusing on the mass production and export of renewable energy. Such an approach can be implemented with a focus on the considered institutional aspects and organisational foundations of digitalisation, with the attraction of the assets from international funds.

References Bergaentzlé, C., Bolwig, S., Juhler-Verdoner, H., Kubeczko, K., Liu, X., Nørregaard, K., Rossi, J., Steen, D., Stengel, A., & Wieczorek,

A. (2021). A transition perspective on demand-side flexibility in the integrated energy system. In Insights from The Danish ISGAN Annex 7 Project 2017–2021. UNEP DTU Partnership. Published in September 2021 in Copenhagen. URL: https://unepccc.org/wpcontent/uploads/2021/09/a-transition-perspective-on-demand-sideflexibility-in-the-integrated-energy-system.pdf. Accessed: October 30, 2022. Cambridge University Press. (2022). Sustainable development report. https://dashboards.sdgindex.org/rankings. Accessed: October 30, 2022. EC.Europa.EU. (2022). Finland’s National Reform Programme 2022. Economic Prospects. Publications of the Ministry of Finance— https://ec.europa.eu/info/sites/default/files/nrp_2022_ 2022:35. finland_en.pdf. Accessed: October 30, 2022. Evolution.skf. (2022). Dänische Windkraft. https://evolution.skf.com/ de/danische-windkraft/. Accessed: October 30, 2022. Grunfelder, J., Norlén, G., Mikkola, N., Rispling, L., Teräs, J., & Wang, S. (2019). State of the Lapland Region. Nordregio report. https://lapinluotsi.fi/wp-content/uploads/2019/10/state-of-thelapland-regionfinal-version.pdf. Accessed: October 30, 2022. IMD.ORG. (2022). Digital Ranking. https://www.imd.org/centers/ world-competitiveness-center/rankings/world-digitalcompetitiveness/. Accessed: October 30, 2022. Karhu, J., & Linkola, L. (2019). Circular Economy in the Built Environment in Finland—A case example of collaboration. IOP Conference Series: Earth and Environmental Science, 297. https:// doi.org/10.1088/1755-1315/297/1/012024. Accessed: October 30, 2022. Majava, A., Vadén, T., Toivanen, T., Järvensivu, P., Lähde, V., & Eronen, J. T. (2022). Sectoral low-carbon roadmaps and the role of forest biomass in Finland’s carbon neutrality 2035 target. Energy Strategy Reviews, 41. https://www.sciencedirect.com/science/ article/pii/S2211467X22000360. Accessed: October 30, 2022. Morales, D., & Sariego-Kluge, L. (2021). Regional state innovation in peripheral regions: Enabling Lapland’s green policies. Regional Studies. Regional Science, 8(1), 54–64. Stateofgreen (2022). Green Danish energy production at a record high in the first half of 2022. https://stateofgreen.com/en/news/greendanish-energy-production-at-a-record-high-in-the-first-half-of-2022/ . Accessed: October 30, 2022.

Financial Management of the Digital Economy Development Under Current Conditions Natalia V. Kandybko , Vladimir K. Spilnichenko , and Viktor A. Splender

Abstract

JEL Classification

We dwell on the peculiarities of financial management of digitalisation of the national economies of the leading countries in the sphere of modern ICT. We identify the competitive advantages of India, which ensured successful public–private partnership, which is oriented toward the policy of digital financial affordability, aimed at the growth of socio-economic development and growth of certain spheres (including agriculture and banking sphere). We determine the main directions of financial management of the economy digitalisation of two other leading countries in this sphere, namely the Netherlands and the USA. These countries sustain their world leadership due to the achievements in the sphere of implementation of ICT. The systematised specifics features of financing of ICT, implemented in the development of national economies, ensure the development of scientific provisions on the characteristics of modern approaches to the implementation of these processes. This study is based on the assessment of indicators that characterise the capitalisation of the IT market and financing of the national digital economies for 2020– 2022.

G18

Keywords

..

..

. . .

Digitalisation Economic development Financial management Financing Financial literacy ICT Public–private partnership Scale effect N. V. Kandybko (&) . V. A. Splender Military University Named After Pr. Alexander Nevsky of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] V. A. Splender e-mail: [email protected] V. K. Spilnichenko Russian State University for the Humanities, Moscow, Russia

1

. . . G32

L86

M15

.

O32

Introduction

Financing of digitalisation is an important precondition for competitiveness and growth of the effectiveness of the activities of enterprises and sectors of the economy, as well as the reduction of regional socio-economic problems. Quality, completeness, timeliness and types of financing predetermine the achievement of the goals of implementing ICT in the selected infrastructures. Financial management implies the implementation of the main elements of managing the capitalisation of national digital economies. Various approaches to the management of financing of ICT are predetermined by the specifics of using the methods of economy management, namely the focus on administrative, market or mixed levers of influences on this process. Research of the specifics and characteristics of the experience of managing the financial provision of digital technologies implementation in certain spheres is necessary for the determination of modern tendencies. The aim of this research lies in studying the modern specific features of the financial management of digitalisation in the economic development of countries. Given the above aim, we determine the dynamics of changes in the financing of the digital economy in the leading countries in this sphere and identify the specifics of the organisation of financing of ICT.

2

Materials and Method

By analysing the theoretical and empirical works, we evaluate the effective practices of financing of digital technologies of different sectors of countries. Among these works, it

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_59

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is possible to distinguish (Andersen & Coffey, 2018; Anita, 2019; Hagen et al., 2022; Hasan et al., 2021; Malladi et al., 2021; Prasad et al., 2018). Provisions and results of the above works have an important scientific and practical value in the context of determining local achievements in the context of separate countries. In this paper, we’re interested in determining a set of effective directions for financial management in this sphere. For this, we attempt at analysing the achievements in the financing of ICT in countries that demonstrate the best results in this sphere. The methods used in this research include the following: the complex method—to determine the system of approaches to the financing of economy digitalisation; statistical analysis—to discover the factual level of financing of ICT in the sectors of the analysed countries; comparative analysis— to identify countries that demonstrate the maximum level of financial provision of the economy’s ICT; the ranking method—to determine the ranking of countries with the maximum level of financial investments in the digitalisation of sectors. For the purpose of the research, we use the following indicators:

Table 1 Rankings of countries by the indicators of ICT financing for 2020–2022

Country Luxembourg

• IT and media stock market capitalization Rank (Indicator A) (IMD, 2022); • Funding for technological development Rank (Indicator A) (IMD, 2022).

3

Results

Analysis of the ranking of countries in financial provision of digitalisation in the time dynamics (Table 1) allows determining the activities on raising the competitive positions in the world market and financial potential. Analysis of the specific features of managing the financing ICT in India has shown that the policy of financial accessibility of digital technologies is implemented at the level of public–private partnership, which is oriented toward the market and administrative methods. Such policy was started to be implemented in 2018–2019. The main provisions of the policy of financial accessibility of digitalisation of the Indian economy in 2020–2022 were as follows (Malladi et al., 2021):

Indicator A, Rank

Indicator B, Rank

2020

2021

2022

2020

2021

2022

3

3

2

22

13

32

Netherlands

4

4

3

4

6

6

Korea Rep

2

2

4

38

34

30

USA

6

7

6

2

3

4

South Africa

7

8

7

56

58

58

Lithuania

6

6

8

29

30

25

India

13

12

9

33

29

23

Japan

9

10

10

39

36

41

Germany

10

11

11

25

31

27

Israel

17

9

12

13

21

8

Greece

11

14

13

50

41

44

UAE

8

13

14

11

8

11

Indonesia

21

26

15

34

32

35

Finland

15

23

16

1

2

1

Malaysia

23

25

18

23

28

31

Canada

24

15

19

14

15

15

China

22

24

24

20

16

17

Sweden

19

21

25

5

1

5

Czech Republic

12

17

27

32

38

24

Singapore

26

31

31

3

4

2

Denmark

46

50

54

6

5

3

Source Created by the authors based on the materials of IMD (2022)

Financial Management of the Digital Economy Development Under Current Conditions

• Provision of subsidised and affordable loans to SMEs and micro businesses in the sphere of agrarian production, in the non-cash form and with the use of electronic services. Subsidised crediting of this sector implies the individual provision of grants for production projects in agriculture. A large share of subsidies accounts for farmers who do not have their private land, but who issue products that are popular in the world market (approximately 55% of all participants in the agricultural market) (Prsindia, 2022). Thus, the government supports a high level of agrarian sectors products’ export; • Provision of free services supporting the financial digital literacy of the representatives of small business and micro companies, which stimulates the growth of the number and speed of transactions, increase in monetary assets turnover and the growth of the main infrastructures of economic and social spheres (Anita, 2019; Prasad et al., 2018; Ravikumar et al., 2022). This allowed for an increase in the economic activity of rural regions and GDP per capita; • Reduction of costs of financial digital transactions was ensured through banking and non-banking financial establishments reducing the number of operations with cash. Mass transition to electronic payments allowed small and micro businesses to save time on the work with cash. The measures on the provision of low tariffs on digital financial transaction, which is implemented at the level of public–private partnership, facilitate the implementation of SDG 1. The above measures also led to an increase in GDP per capita (Ceicdata, 2022); • Geo-spatial digital technologies, based on big data and artificial intelligence, which are used for continuous monitoring of human resources development, allowed creating better services on financial digital transactions in the territories with the growth of population density. This measure led to the growth of financial transactions, an increase in the digital literacy of users, an increase in the level of purchases and the development of the accompanying infrastructures. The Netherlands demonstrated an increase in the level of ICT capitalisation in the main sectors of the economy and a decrease in the volumes of financing of digital technologies. A high level of financing of digitalisation is an indicator of the sustainable development of the country. The most effective approaches to the financial management of digitalisation of the Dutch economy are as follows: • Partner programmes (projects) of trade companies in the financing of collective digital tools for the provision of goods (services) in certain territories (regions). Such measure is used by trade and production companies that

299

are not rivals in the market of specific territories, at which marketing communications are aimed. Here we speak of the creation and administration of profiles in social networks, the development and administration of websites and the constant update of information in electronic form. This direction concerns 750 organisations of a virtual type, which work in the main cities of the country (Hagen et al., 2022). This approach implies the use of the resource-oriented approach, which is connected with joint financing of the given categories of management of promotion, sales and maintenance. It allows saving on marketing communication due to the scale effect; • Projects on mobile payments at the level of B2C market interaction allowed supporting the development of the country during the COVID-19 pandemic (Hasan et al., 2021). For example, GDP per capita was USD 52,295.04 in 2019, USD 52,304.06 in 2020 and USD 58,061 in 2021. Small and medium companies, which account for more than 50% of all subjects of entrepreneurship in the Netherlands, were not able to effectively implement mobile payment projects, unlike large businesses. This was due to the absence of systemic support from the government and due to the low level of strategic planning of expenditures for ICT (OECD, 2021). The growth of ICT capitalisation was also observed in the USA. The general positions of the USA in the sphere of financial management of economic spheres’ digitalisation were high. The analysis has shown that financing of R&D for ICT is performed primarily by the federal government. There is also private financing, but it is less significant because the existing tax climate does not facilitate its implementation. Recent years marked a substantial decrease in the financing of R&D in the sphere of innovations in ICT, which led to worse positions of the country as a leader in the digital economy (Andersen & Coffey, 2018). The problem of further development in this aspect is the tax burden, which does not allow using private finances in the development of the country’s ICT. Therefore, financial provision for implementing ICT at the sectoral level in the USA is performed primarily with the participation of federal authorities (special programmes).

4

Discussion

The considered approaches of countries to the financial management of digitalisation of economic spheres have shown the usage of market, administrative and synthetic methods. Conditions and traditions of economic development influence the financing of ICT within the sectors. These directions of financial management could be easily adapted

300

N. V. Kandybko et al.

to the conditions of developing and developed countries, namely: • Mass implementation of financial electronic transactions with the help of (virtual) payment cards allows reducing expenditures for cash services and work of personnel and attracting customers with the help of low commissions. Such measure allows raising the level of financial provision for various groups of the population, including low-income groups of the population; • Subsidised financial crediting, based on the administrative and market methods, is very important under the condition of observing the balance of return from subsidies and supporting socio-economic well-being in the society; • Collective subject integration in the sphere of management of financing and organisation of digital marketing communications could be used under the conditions of joint participation.

5

Conclusion

The results of this research allow stating that sectoral development and the level of the national economy depend on the state of financing of digitalisation of economic development. Various approaches and directions of the financial management of ICT implementation are based on the indicators of the development of sectoral structures of countries, the level of digitalisation and digital literacy, the financial potential of countries and terms of financing. Public–private partnerships allow ensuring the competitive positions of a country in the sphere of ICT and lead to the growth of the economy and its global integration. A synthesised approach to the management of financing of development and implementation of ICT is the most optimal variant of the financial provision in this sphere. However, the focus only on administrative methods, connected with the country’s priority in the management of financing and the absence of stimulation of private partners, does not allow for constant support for the continuous development of the economy. Stimuli that facilitate the attraction of private financing in the sphere of ICT in the economy include the creation of an

attractive tax climate for investors; the government’s participation in the creation and financing of centres for the development of new ICT; attraction of private partners to such projects by the terms of joint participation, which may lead to an increase in the competitive positions of a country’s digitalisation.

References Andersen, J. C., & Coffey, D. (2018). U.S. ICT R&D Policy Report: The United States: ICT Leader or Laggard? TIA Innovation White Paper: U.S. ICT R&D Policy Report. https://www.tiaonline.org/wpcontent/uploads/2018/02/TIA-U-S-ICT-RD-Policy-Report.pdf. Accessed: October 24, 2022. Anita, D. (2019). Financial Literacy in India: A critical review of digitalization and demonetization. International Journal of Economic Research, 16(2), 267–271. Ceicdata. (2022). India GDP per Capita. https://www.ceicdata.com/en/ indicator/india/gdp-per-capita. Accessed: October 24, 2022. Hagen, D., Risselada, A., Spierings, B., Weltevreden, J. W. J., & Atzema, O. (2022). Digital marketing activities by Dutch place management partnerships: A resource-based view. Cities, 123. https://www.sciencedirect.com/science/article/pii/ S0264275121004479. Accessed: October 24, 2022. Hasan, R., Ashfaq, M., & Shao, L. (2021). Evaluating drivers of Fintech adoption in the Netherlands. Global Business Review, 0(0). https://doi.org/10.1177/09721509211027402. Accessed: October 24, 2022. IMD. (2022). World digital competitiveness ranking. https://www.imd. org/centers/world-competitiveness-center/rankings/world-digitalcompetitiveness/. Accessed: October 24, 2022. Malladi, C. M., Soni, R. K., & Srinivasan, S. (2021). Digital financial inclusion: Next frontiers-challenges and opportunities. CSI Transactions on ICT, 9, 127–134. https://doi.org/10.1007/s40012-02100328-5 OECD. (2021). OECD economic surveys Netherlands. https://www. oecd.org/economy/surveys/Netherlands-2021-OECD-economicsurvey-overview.pdf. Accessed: October 24, 2022. Prasad, H., Meghwal, D., & Dayama, V. (2018). Digital financial literacy: a study of households of Udaipur. Journal of Business and Management, 5(I), 23–32. Prsindia. (2022). Demand for grants 2022–23 analysis: Agriculture and farmers’ welfare. https://prsindia.org/budgets/parliament/ demand-for-grants-2022-23-analysis-agriculture-and-farmers%E2% 80%99-welfare. Accessed: October 24, 2022. Ravikumar, T., Suresha, B., Prakash, N., Vazirani, K., & Krishna, T. A. (2022). Digital financial literacy among adults in India: Measurement and validation. Cogent Economics & Finance, 10(1). https:// doi.org/10.1080/23322039.2022.2132631. Accessed: October 24, 2022.

Cyclicity of the Digital Economy Development and the Perspectives of Its Counter-Cyclical Management Elena E. Alenina , Vera V. Ziulina , and Natalia A. Rykhtikova

specifics of forming cyclicity and perspectives of counter-cyclicity of the digital economy in the context of the dependence on the phases of the national economy’s economic cycle.

Abstract

Purpose This paper is aimed at establishing the fact of the development of the modern digital economy depending on the cycles of the development of national economies and determining the possibility of the creation of counter-cyclical perspectives of digitalization. Design/methodology/approach The following methods were used: generalization, comparative method, statistical method, and trend method. Findings We evaluate the dependence of cyclicity of the modern digital economy’ development depending on the phases of the economic cycle of the national economies’ formation and discover the possibility of creating the counter-cyclical perspectives of digitalization. We reveal the dependence in countries that do not use the anti-crisis mechanisms of forecasting and do not form the optimal portfolios of products (services) in the ICT (information and communication technologies) sector in the context of planned development of demand and offer (do not create the strategies of the digital economy with a focus on crisis prevention). It is also revealed that during the crisis, such countries as China and Japan functioned and developed digitalization in view of the focus on the provision of counter-cyclicity (prevention of the negative phases of the economic cycle or reduction of its consequences for the national economy). We prove that the USA, India, and Russia were not able to achieve and form the perspectives of counter-cyclicity due to the insufficient flexibility of management in the sphere of portfolio management in the digital economy sector. Originality/value The scientific novelty of this research is the development of the E. E. Alenina (&) . V. V. Ziulina Moscow Polytechnic University, Moscow, Russia e-mail: [email protected] N. A. Rykhtikova Moscow Regional Branch of Russian Presidential Academy of National Economy and Public Administration, Krasnogorsk, Russia

Keywords

..

. . .

.

Digital economy National economy Phases of the economic cycle Counter-cyclicity Fall Upturn Portfolio of services (works) JEL Classification

L81

1

.

M50

.

N10

Introduction

A comprehensive study of the problems and perspectives of the development of the national digital economies is very topical, for we observe a transition from the resource-based economy to high-tech production. The current trends of new technological solutions and opportunities and the global informatization activate this process. The current processes of digitalization in separate countries are formed with a focus on the creation of international and regional cooperation for integration and entering the world market. Digitalization is also a tool of economic growth through the increase in effectiveness, efficiency, and competitiveness. Besides, the effective application of the tools of the digital economy is a means of ensuring the security and stability of a national economy. The formation and transformations of the digital economy take place under the influence of factors that influence the state of national economies. The development of a national economy, including digitalization, is subject to cyclicity, which is connected to the change of business activity and the economic state of countries. The choice of the directions of the digital economy depending on

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_60

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the level of the national economy is a regular process of opposing the crisis phenomena. At that, the creation of new directions of digitalization can lead to the formation of counter-cyclical preconditions of the development of the economy and ensure the prevention of the crisis phenomena. Research of these issues will allow expanding the characteristics concerning this connection between the variables under the conditions of cyclicity and will allow determining their counter-cyclical perspectives. The key hypothesis of this research is the assumption that the modern development of the digital economy takes place depending on the cycles of the development of national economies, and that the formation of new directions of digitalization can lead to the creation of the counter-cyclical preconditions of protection against the negative crisis phenomena. The purpose of this research is to establish the fact of the development of the modern digital economy depending on the cycles of the national economies’ development and discover the possibilities of creating the counter-cyclical perspectives of digitalization. The following tasks are solved to achieve the above goal: 1. evaluating the dependence of the cycles of formation of the digital economy on the cycles of the national economies’ development; 2. revealing the potential counter-cyclical perspectives of digitalization as a landmark of opposition and prevention of the crisis phenomena.

2

Literature Review

Research of the scientific works devoted to the issue of development of the modern digital economy and the problems of the economic cycles’ formation in this sphere shed more light on the studied issues. A study by Adair and Nezhyvenko presented the materials on the issues of evolution, development of industrial crises in France in the twentieth century, considered in view of the adapted Tugan-Baranovsky’s business cycle theory (Adair & Nezhyvenko, 2021). In the work of Kehoe et al., the authors study the evolutional aspects of the theory of economic cycles (Kehoe et al., 2018). Atkinson distinguishes and analyses the modern strategic tasks of the USA in the sphere of the digital economy (Atkinson, 2021). The provisions of the work by Molnar et al. are devoted to the assessment of the investment development of China (Molnar et al., 2021). The investment development of India is considered in the work by Jaswal et al. (2022). A study by Senhaji et al. is aimed at characterizing robotization as the key structural element of Japan’s digital economy (Senhaji et al., 2021).

The issues of the cyclicity of the digital economy are not considered in the above works, though there are empirical and theoretical developments regarding the set of initial data that are required for further research. The works devoted to the theory of economic cycles include primarily theoretical provisions and do not envisage a clear substantiation of the application for evaluating the cyclicity of the digital economy. Accordingly, the issue of cyclicity and countercyclicity of the digital economy’s development requires a complex elaboration given the theoretical component and factual characteristics of development.

3

Materials and Method

The following methods were used in this research. The method of generalization was used for the classification and analysis of using the theory of economic cycles with the digital economy and national economy. The comparative method was used to compare the statistical and analytical data. The statistical method was used to collect statistical data on such estimated variables as the state of the digital economy and the national economy. The trend method allowed discovering the cycles of the development of the digital economies and national economies of particular countries. The research was performed by the example of the USA, China, India, Japan, and Russia. Let us present statistical data on the development of the national economies of the selected countries over 2015– 2020. The given parameter is considered through the indicator of gross domestic product (GDP) (Table 1). The presented statistical data shall be used to discover the cycles of the development of the studied countries’ national economies. Table 2 presents the quantitative characteristics of studied countries’ digital economies, which is determined with the help of the indicator of sales revenues in this sphere in 2015– 2020. Based on the above data, we discover the cycles of the digital economy development in 2015–2020. We study the cyclicity of the national economies and digital economies’ development using the theory of economic cycles. An overview of scientific works (Adair & Nezhyvenko, 2021; Kehoe et al., 2018) allows stating that scholars distinguish four types of economic cycles: • Kondratiev waves (duration—40–60 years), which are connected to the consideration of economy through the lens of the development of inequality of technical and scientific achievements, investments, and qualitative changes of the economic level. We do not consider this approach to cyclicity, since it is aimed at a large period;

Cyclicity of the Digital Economy Development and the Perspectives … Table 1 Volumes of GDP of the USA, China, India, Japan, and Russia for 2015–2020

Country

303

Volumes of GDP, USD billion 2015

2016

2017

2018

2019

2020

USA

18,240

18,750

19,540

20,610

21,430

20,940

China

11,062

11,233

12,310

13,890

14,280

14,721

India

2104

2295

2651

2701

2871

2623

Japan

4389

4923

4867

4955

5065

5048.7

Russia

1363

1277

1574

1657

1687

1483

World

75,230

76,420

81,330

86,340

87,610

84,710

Source Created by the authors on the basis of World Bank (2022)

Table 2 Sales revenues in the digital economy in the USA, China, India, Japan, and Russia in 2015–2020

Country

Sales revenues in the sphere of the digital economy, USD billion 2015

2016

2017

2018

2019

2020

USA

1616

1694

1741

1850

1906

1817

China

2937

3482

4063

5444

5809

6071

India

128

135

139

150

151

145

Japan

331

338

344

352

359

363

Russia

35

36

45

46

48

46

Source Created by the authors on the basis of UNCTAD (2022)

• Kuznets cycles (15–23 years), which are connected directly to the construction complex; • industrial cycles (business cycles) (duration—7– 12 years), discovered by C. Juglar and described in the works of Mikhail Tugan-Baranovsky—they are characterized by an upturn depending on the growth of investments in fixed capital; • Kitchin cycles (duration—3–5 years), discovered by Joseph Kitchin and connected to investments in the development of assets. In this research, we use the theory of industrial cycles to study the period of 2015–2020. According to Adair and Nezhyvenko (2021); Kehoe et al., 2018), the founders of the theory of industrial cycles (C. Juglar, M. Tugan-Baranovsky and others) distinguish four phases of an economic cycle of the development of a system (object), namely: phase of fall (decrease in the production volume and trade, growth of bankruptcy, unemployment, and direct investments); phase of depression (critical state of the economy, peculiar for a large decrease in the main indicators of development); recovery phase (state of the economy that is peculiar for the modernization of production processes, restoration of investment flows, growth of demand, and increase in capital and employment); phase of upturn (state of the economy that is peculiar for full employment, use of full production capacities, expansion of productions, and growth of wages, profits, prices, and direct investments). Accordingly, we assess the cyclicity of the development of the national economy and the digital economy focusing on these phases.

4

Results

Let us assess the dependence of the cycles of the digital economy formation on the cycles of the national economy’s development of the studied countries (USA, China, India, Japan, and Russia) in 2015–2020. This is six years of an industrial cycle. Based on this, let us find the counter-cyclical perspectives of digitalization as a landmark of opposition and prevention of the crisis phenomena. In 2015–2020, the USA demonstrated a full correspondence of the phases of an economic cycle of the digital economy and the national economy; the assumption on the dependence of development is confirmed. Namely, the recovery phase took place in 2015–2016, and the phase of upturn—in 2016–2017, 2017–2018, and 2018–2019. Statistical data show that the following growth of direct investments took place in the period of upturn: 2016–2017 —by 6.7%, 2017–2018—22.8%, and 2018–2019—8.5% (Economic Research Resources, 2022). At that, the phase of fall of the national economy and the digital economy coincides with the decrease in the volume of direct investments (by 50.3%). Such indicator of the national economy as direct investments also influences its cyclicity and leads to the development of demand and consumption in the national digital economy (UNCTAD, 2022; World Bank, 2022). Dynamics of the development of the phases of the U.S. economic cycle demonstrate the direct dependence of the digital economy on the indicators of the national economy. This shows that the government did not form—at all levels 0 the portfolio of services (products) of the digital economy

304

that would have ensured the state of counter-cyclicity. Counter-cyclicity in this case is considered as implementing such a mechanism of the digital economy management or using such a portfolio of services (products) that would have ensured the opposition to the decrease in the development’s indicator. According to Atkinson, a decrease in the digital economy and the national economy in the USA was a result of the lockdown and the policy of protectionism concerning the technological and industrial companies in certain countries of Europe and China (Atkinson, 2021). The external protectionism as to the USA was formed before 2020, but no corresponding measures of developing new products (services) that would have supported the sales level in the digital economy were created. That is, there was no countercyclicity of the digital economy’s development; it depends on the phases of the national economy. The phases of an economic cycle of the development of the Chinese digital economy develop according to the phases of the economic cycle of its national economy. According to Molnar et al. (2021), China ensured the growth of direct investments in the development of directions that supported GDP and the digital economy. An optimal portfolio of new products (services) connected to the digital economy was formed. China was able to create a state of counter-cyclicity of the national economy and the digital economy’s development using the anti-crisis approach based on high effectiveness of the forecasting of crisis processes. Such an approach allowed avoiding the negative consequences of the trade war with the USA and the lockdown. The perspective directions of the counter-cyclicity of the development of China’s digital economy China are software provision and technical consulting, which are popular in the internal and external markets. India demonstrated the dependence of the phases of the economic cycle of the digital economy on the phases of the national economy’s economic cycle that was similar to the USA. According to Jaswal et al. (2022), the phase of fall in the economy caused by the 2020 lockdown led to the reduction of direct investments in the main sectors, including the digital economy. Accordingly, India develops its digital economy with a focus on the cyclicity of the national economy, but there is no portfolio of innovative products (services) that would protect the achieved economic indicators, and the offer does not conform to the demand that appeared in the new crisis conditions. Based on studying the results of cyclicity of the development of Japan, we found out the following: traditional phases of an economic cycle were not peculiar for the national economy (phase of fall in 2016–2017 was replaced in 2017–2018 by not a traditional depression but the revival phase). The period of 2018–2019 was peculiar for the phase of upturn, and 2019–2020—the phase of fall, which was

E. E. Alenina et al.

insignificant (decrease in GDP by 0.3%, a slight reduction of employment, investments, and demand/offer in the markets). The above was largely ensured by the provision of counter-cyclicity of the digital economy’s development, namely: Japan used the optimal portfolio of services (products) of this sector to support the level of the national economy (a slight decrease in 2020). The analysis of scientific materials (Senhaji et al., 2021) has shown that in the structure of this portfolio an important place belonged to new robots that could replace the human workforce during the lockdown and perform social work. The use of robots is the top-priority direction of counter-cyclicity of the development of Japan’s digital economy. The cyclicity of Russia’s digital economy depends on the cyclicity of its national economy. The period of 2015–2016 was peculiar for the phase of depression, linked to a critical aggravation of all economic indicators; 2016–2017—the recovery phase (growth of investments, modernization of equipment); 2017–2018 and 2018–2019—the phase of upturn; 2019–2020—phase of fall, caused by the reduction of direct investments in all sectors, including the digital economy.

5

Conclusion

We assessed the dependence of cyclicity of the development of the modern digital economy on the phases of the economic cycle of national economies and discovered the possibilities of creating the counter-cyclical perspectives of digitalization. We discovered this dependence in countries that do not use the anti-crisis mechanisms of forecasting and do not form the optimal portfolios of products (services) in the sphere of ICT in the context of planned development of demand and offer. During the world crisis, China and Japan developed digitalization with a focus on the provision of counter-cyclicity (prevention of the negative phases of the economic cycle or reduction of its consequences for the national economy). The USA, India, and Russia were not able to form the perspectives of counter-cyclicity due to insufficient flexibility of management in the sphere of portfolio management in the digital economy sector.

References Adair, P., & Nezhyvenko, O. (2021). Tugan-Baranovskys business cycle theory and French economists: Inspiration and legacy. NaUKMA Research Papers, 6(1), 3–7. Atkinson, R. A. (2021). A U.S. Grand Strategy for the Global Digital Economy. Information Technology and Innovation Foundation, 1. https://itif.org/publications/2021/01/19/us-grand-strategy-globaldigital-economy. Data accessed: March 06, 2022.

Cyclicity of the Digital Economy Development and the Perspectives … Economic Research Resources. (2022). Net domestic investment: Private: Domestic business. https://fred.stlouisfed.org/series/ W790RC1A027NBEA. Data accessed: March 06, 2022. Jaswal, I., Narayanan, B. G., & Jain, S. (2022). Can the Post-COVID FDI Boost the Indian Economy? The Journal of Business Perspective. https://doi.org/10.1177/09722629211066286. Data accessed: March 06, 2022. Kehoe, P. J., Midrigan, V., & Pastorino, E. (2018). Evolution of modern business cycle models: Accounting for the great recession. Journal of Economic Perspectives, 32(3), 141–166. Molnar, M., Yan, T., & Li, Y. (2021). China’s outward direct investment and its impact on the domestic economy. OECD Economics Department Working Papers, 1685. https://www.oecd-

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ilibrary.org/docserver/1b1eaa9d-en.pdf?expires=1646757395&id= id&accname=guest&checksum=48D1AA79673DD03D942D7BDA 70897AF1. Data accessed: March 06, 2022. Senhaji, S., Faquir, S., & Jamil, M. O. (2021). Towards robotics and artificial intelligence for the prevention of Covid 19 pandemic. In ICCSRE’2020, Vol. 01035. https://www.e3s-conferences.org/ articles/e3sconf/pdf/2021/05/e3sconf_iccsre2021_01035.pdf. Data accessed: March 06, 2022. UNCTAD. (2022). Digital economy report. https://unctad.org/topic/ ecommerce-and-digital-economy/digital-economy-report. Data accessed: March 06, 2022. World Bank. (2022). Data. https://data.worldbank.org/country/. Data accessed: March 06, 2022.

The Impact of the Digital Economy on Healthcare for Sustainable Development—A Post-pandemic Analysis Papu M. Alieva , Zumrud K. Buchaeva , and Arsen S. Abdulkadyrov

Abstract

JEL Classification

One of the most perceptible implications of the crisis due to COVID-19 was the wide use of technology solutions for the collection of information about the virus distribution and the physiological status of citizens. This was made possible due to cheapening, and, accordingly, wider use of smartphones and wearables—devices that collect data about the way of living of their owners, by citizens. Digital healthcare has the potential to improve efficiency, accessibility, and quality of health care. The COVID-19 pandemic has made digital healthcare tools an urgent necessity, and currently, the time has come to develop strategies that will preserve their added value and take into account the role of people, privacy, inequality, and leadership. This paper is aimed at studying the way digital healthcare contributes to reducing the advance, improving the efficiency of the fight against the pandemic and contributing to the radical transformation of the healthcare system in the post-COVID age. This paper considers the way how the digital transformation caused by the pandemic, has had its impact on healthcare for sustainable development.

H51

Keywords

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..

Healthcare Digital economy COVID-19 Pandemic

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Sustainable development

P. M. Alieva . Z. K. Buchaeva Dagestan State Medical University, Makhachkala, Russia e-mail: [email protected] Z. K. Buchaeva Dagestan Republican Organization of the Trade Union of Healthcare Workers of the Russian Federation, Makhachkala, Russia A. S. Abdulkadyrov (&) Dagestan State Technical University, Makhachkala, Russia e-mail: [email protected]

1

. . . I15

I18

Q01

Introduction

The new coronavirus has led to an upsurge in interest in robotics, unmanned aerial vehicles, and Artificial Intelligence. Technologies are aimed at finding the answer to the massive lack of personnel in healthcare, manufacturing, and supply chains, to facilitate “social distancing”, diagnostics and treatment, as well as to optimize the work of health professionals and staff engaged in disinfection in hotbeds of the pathogen, ensuring the occupational safety of this staff. The pandemic has caused an unprecedented demand for digital healthcare technologies and has identified effective solutions, such as population screening, infection tracking, identification of priorities in the use and allocation of resources, and development of targeted response measures. Amid the COVID-19 pandemic, many governments in many parts of the world, in close cooperation with private companies and research organizations, make active use of high-end computing systems—both conventional supercomputers and cloud (grid) computing technologies, based on the mass use of capacities of common computers combined into a global data-processing network via standard communication protocols. Access to high-end computing systems is critically important for the successful implementation of fundamental and applied molecular genetic studies of the COVID-19 pathogen. To find new methods of the fight against COVID-19, many countries have launched national programmes for selecting and financing start-ups that offer innovative solutions in diagnosticating and treatment of the new coronavirus, as well as solutions for the existing problems. The German government held a specialized hackathon that attracted 42,000 participants and more than 800 projects.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_61

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The start-up from DOCYET has created an online chatbot that analyses the physiological parameter of a user, makes a risk assessment and offers options for remote consultations. That said, the Ministry of Health has launched the “Innovative healthcare hub” that hosts, among other things, approved services for remote medical advisement, most of which are free of charge. The British Space Agency, with the participation of the European Space Agency, has established a fund in the amount of 2.6 million pounds sterling (3.26 million US dollars) to finance projects and start-ups which use hi-tech solutions and achievements of the space industry in solving the most pressing problems of the national healthcare system amid the pandemic, such as the use of drones for the delivery of medical tests and personal protective equipment for healthcare professionals, or the use of satellite data to control outbreaks.

2

Materials and Methods

Studying the modern tools of the digital economy that are used in modern medicine is important from the position of determination of the leading experience and its adaptation in developing countries. A sustainable development goal, which is connected with countries’ focus on the achievement of the indicators of strong health of citizens, is declared in the UN programme documents. It is especially important in the period of the fight against the threats and consequences of the COVID-19 pandemic. Challenges for the systems of healthcare in many countries, which appeared during the pandemic, demonstrated unpreparedness for problems that are connected with the need for precise remote diagnostics and assessment of the state of patients that suffer from a range of systemic and polysystemic diseases, surgical diseases, disease of unknown origin and rare diseases; the need for care for patients without a threat of infecting the personnel; complexities in the protection of patients with a weak immune system; needs for the individualisation of the remote compilation of a medical protocol of treating patients with concomitant diseases. Such problems predetermine the need for search, development, production and implementation of information and communication technologies that would be accessible to consumers and medical establishments. Developed countries should focus on the facilitation of social justice and humanism in the support of other countries, especially countries most of which population is below the poverty line. Analysis of ICT tools that demonstrate a high level of effectiveness in medicine under the conditions of unpredictable events of the pandemic is performed with the help of a range of methods. The method of systematisation is used to identify the categories of modern ICTs that

demonstrate the effectiveness and reliability of evaluation of the states of citizens and patients with concomitant diseases or special states of an organism that require particular attention. Such categorisation is performed by the types of diseases and states and types of diagnosed citizens (initial diagnostics, patients with certain diseases). Such a systematisation allows determining the level of the development of digitalisation at the level of each direction in medicine. In this work, this assessment concerns the possibilities for analysis of the structure of ICT tools that are used in the healthcare system at the global level. It implies the designation of the best examples of diagnostics and medical examination of human conditions. It is also possible to distinguish a complex analysis of advantages that is used for the identification of positive characteristics of the use of digitalisation, which is a peculiar feature of the modern diagnostics tools of ICT. Such analysis is necessary for the provision of a comprehensive and full analysis of the conditions of patients, which minimises mistakes in diagnostics. The results of this analysis allow deciding on the possibility of use of the considered tools of ICT for certain diagnostic and medical goals. Analytical materials that are used in this research concern the state and potential of the development of ICT in healthcare system establishments in developed countries.

3

Literature Review

Digital breakthrough has become a phenomenon of the twenty-first century, which is transforming all conventional commercial contexts (Banga & Velde, 2020), affecting all levels of business and society (Gabryelczyk, 2020). The implementation of digital solutions in organisations calls for systematic variations of “work, roles, and business proposals” (Lyytinen et al., 2016). Corporate efficiency is influenced by new technologies and the interaction between all the parties concerned in the value-added chain (Borisova et al., 2020). The DT concept includes digital tendencies at various levels, including technologies, processes, organisational aspects, especially the disruption of business models and society (Garnov et al., 2020). The introduction of ICT has had an impact on the HC sector starting 1950s (Klunder et al., 2019). They have been adding the aspects of “pilot projects, such as self-monitoring, e-healthcare, mobile healthcare, interactive medical trials, online communities of patients, and collaborative decision making in diagnostics and e-therapy” (Kituyi, 2021). Big Data in HC is based on the results of clinical trials, electronic health records (EHR), as well as on personal data of consumers that are received from the self-monitoring devices, for example, wearables for the monitoring of work of sports activities (Vial, 2019).

The Impact of the Digital Economy on Healthcare …

4

Results

Let us perform the systematisation of the modern tools of ICT that are characterised by high efficiency in the practice of functioning of the modern healthcare system’s establishments. It is expedient to consider such an element as an “intelligent pill”. The mechanism of using this tool is as follows: a patient takes this pill as a regular medicine, but it has a special function of diagnostics of the main indicators of a person’s health and parameters of assessing the level of effectiveness of the influence on the organism; information on the indicators is transmitted to sensors that are fixed on the patient’s body; with the patient’s consent, these data are further transmitted to his doctor (Saher & Anjum, 2021). This digital tool allows for systemic diagnostics of patients with viral diseases, without additional burden on medical personnel or the creation of necessary safety measures. The use of this tool is actual in the diagnostics of patients of vulnerable categories (HIV, diabetes, systemic cancer, etc.) in the period of various types of pandemics. Mass and quick implementation of such tools as “intelligent pill” is a large financial burden on pharmaceutical companies, which do not have the experience of promoting and selling such products at a large scale. There are concerns regarding the demand for such medicine among all categories of patients, but, since experience has shown positive results, there are prospects for its implementation. Assessment will still be essential in advancing digital healthcare, but it can also be more flexible. Drawing on the experience of the Global Digital Exemplar programme, new pilot projects can be assessed as they progress; further, they can be adjusted, improved or removed using the training that is distributed via NHS. The integrated fieldwork allows testing minor innovations, and integrated care systems are instrumental in sharing best practices to accelerate regional progress. Telecheck-AF.8 is yet another excellent mobile healthcare application/software which is extremely useful during the current pandemic. It provides auricular fibrillation suspects with the possibility to receive teleconsultation during which they can perform online monitoring of the heart rate and cardiac rhythm with their cardiologist. This application that was developed by the Maastricht University is accessible free of charge to other institutions and patients during the COVID-19 pandemic. The results of the wide-scale multicentre study have been published recently (Holman, 2020). An example of digitalisation during the post-pandemic season is the development of sensors that are used for the monitoring of vital factors, Analog Devices creates next-gen wearables that can bring the industry of digital medical

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technologies (and patients) to a more positive path. These devices improve the quality of life of diabetics while expanding opportunities for physicians by helping patients to better cope with their diseases and potentially even inhibit their advance (Reynolds, 2020). The wearable health monitor from Analog Devices looks like a common smartwatch, but it constantly collects data on the user’s heart rate, body temperature, and other vital signs. In addition, Analog Devices is cooperating with a leader in the field of nanosensor diagnostics for the delivery of health care to present rapid virus-testing and bacteria-testing technologies which may have a significant impact on the detection and prevention of COVID-19 and future pandemics.

5

Discussion

Therefore, the main digital healthcare tools that can help European healthcare systems in achieving their goals, in particular, during and after the COVID-19 pandemic, are as follows: • people (e.g. end-users) play a pivotal role in the transformation of the healthcare system; • patients and citizens who may be more open to sharing their data if they are aware of the cause for the need of them and the method in which they will be used; • public–private partnerships which can be an essential element of the digital transformation of healthcare; however, they have their issues, including trust-related issues; • overall, leadership and political partisanship are decisive for the provision of changes and development of trainable healthcare systems that can be adapted to provide conditions for changes in the existing healthcare system. The purpose of this research was to analyse the major digital healthcare tools that are used in the fight against COVID-19. These tools help governments and people participate in strategies of the fight against the COVID-19 pandemic by meeting the most immediate needs, including immediate response measures to outbreaks and mitigation of consequences.

6

Conclusions

The pandemic has caused an unprecedented demand for digital healthcare technologies and has identified effective solutions, such as population screening, infection tracking, identification of priorities in the use and allocation of resources, and development of targeted response measures.

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Amid the COVID-19 pandemic, many governments in many parts of the world, in close cooperation with private companies and research organizations, make active use of high-end computing systems. Currently, we can observe a flow of innovations in using digital healthcare and telehealth related to COVID-19. The COVID-19 pandemic has dealt a large damage to all aspects of our life, allowing us to fully feel that our plans are not always realized, since plans can change in the flicker of a second. At the same time, coronavirus gave an big impulse to the development of organizations: it provided the opportunity to assess employees, discover their new talents and abilities and introduce technologies and solutions which will contribute to the improvement of efficiency of operations further on.

References Banga, K., & te Velde, D. W. (2020). Covid-19 and disruption of the digital economy; Evidence from low and middle-income countries (Vol. 7). Digital Pathways at Oxford Paper Series. Borisova, A. A., Neshenko, A. V., Miroshnichenko, E. N., & Borisov, D. N. (2020). Economy digitalization in Germany and Russia: Ethical aspect. In Proceedings of the Russian Conference on Digital Economy and Knowledge Management (RuDEcK 2020) (pp. 101– 107). https://doi.org/10.2991/aebmr.k.200730.019. Accessed March 12, 2022. Gabryelczyk, R. (2020). Has COVID-19 accelerated digital transformation? Initial lessons learned for public administrations. Information Systems Management, 37(4), 303–309.https://doi.org/10.1080/ 10580530.2020.1820633. Accessed March 12, 2022.

P. M. Alieva et al. Garnov, A. P., Garnova, V. Y., Shabaltina, L. V., Begishev, I. R., & Panferova, L. V. (2020). New opportunities for the digital economy: The implementation of an effective state innovation policy. Journal of Environmental Treatment Techniques, 8(4), 1321–1325. https:// doi.org/10.47277/JETT/8(4)1325. Accessed March 12, 2022. Holman, J. (2020). Americans adopting E-commerce faster than ever amid pandemic. Bloomberg. https://www.bloomberg.com/news/ articles/2020-03-31/americans-adopting-e-commerce-faster-thanever-amid-pandemic. Accessed March 12, 2022. Kituyi, M. (2021). ‘Going Digital’: How to build an inclusive digital economy in the wake of COVID-19. In UNCTAD. https://unctad. org/news/going-digital-how-build-inclusive-digital-economy-wakecovid-19. Accessed March 12, 2022. Klunder, T., Dorseln, J. N., & Steven, M. (2019). Procurement 4.0: How the digital disruption supports cost-reduction in procurement. Production, 29, 1–11. https://doi.org/10.1590/0103-6513.20180104 . Accessed March 12, 2022. Lyytinen, K., Yoo, Y., & Boland, R. J. (2016). Digital product innovation within four classes of innovation networks. Information Systems Journal, 26(1), 47–75. https://doi.org/10.1111/isj.12093. Accessed March 12, 2022. Reynolds, M. (2020). State of the internet amid coronavirus pandemic. S&P Global Ratings. https://www.spglobal.com/marketintelligence/ en/news-insights/latest-news-headlines/state-of-the-internet-amidcoronavirus-pandemic-8211-s-p-podcast-59001571. Accessed March 12, 2022. Saher, R., & Anjum, M. (2021). Role of technology in COVID-19 pandemic. In Researches and applications of artificial intelligence to mitigate pandemics (pp. 109–138). https://doi.org/10.1016/B9780-323-90959-4.00005-5. Epub 2021 Apr 30. PMCID: PMC8084752. Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28 (2), 118–144.https://doi.org/10.1016/j.jsis.2019.01.003. Accessed March 12, 2022.

Crisis Management of the Development of the Digital Economy and Its Post-COVID Perspective Julia F. Anoshina , Valery L. Boyko , and Vladimir Yu. Melnikov

Abstract

Keywords

Purpose: This paper is aimed at revealing the influence of implementing the directions of the digital economy on the economic growth of countries amid the pandemic and lockdown restrictions and in the long term. Design/methodology/approach: The following methods were used: comparative analysis, statistical method, and factor analysis. Findings: We reveal the influence of implementing the directions of the digital economy on the economic growth of countries (USA, India, Japan, China, and Russia) amid the pandemic and lockdown restrictions and in the long term. The analysis shows that the USA, India, Japan, China, and Russia occupied the leading economic positions in the world market over 2015–2020. We also discover the connection between the use of the perspective directions of the digital economy and the economic growth of countries and prove that it is achieved due to the significant development and position of this sphere in the national economy. We also determine the main perspective solutions of crisis management in the sphere of stimulating the development of the digital economy as an important component of the national economy. Originality/value: The scientific novelty of this research consists in the development of the specifics and characteristics of the influence of the digital economy’s directions on the state of the economy at the national level under the conditions of unpredictable phenomena (lockdown, pandemic) and the identification of the factors of connection between these phenomena.

Digital economy Pandemic Lockdown restrictions National economy Software Digital technologies Technological underrun Crisis management

J. F. Anoshina (&) Russian State Social University, Moscow, Russia e-mail: [email protected] V. L. Boyko . V. Yu. Melnikov Moscow State Regional University, Mytishchi, Russia e-mail: [email protected]

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JEL Classification

L81

1

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M50

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N10

Introduction

The new conditions of the development of society, which are connected to the lockdown restrictions and the consequences of the COVID-19 pandemic, created preconditions for a long economic crisis in many sectors at the national and global levels. At present, one of the types of management that are aimed at revealing the signs of crisis phenomena and creating the corresponding preconditions for their timely prevention and overcoming for the development of sectors of the economy and prevention of economic subjects’ bankruptcy is crisis management. The basis of its use is the development of digital technologies that are aimed at the modernization of the real sector of the economy, which allows optimising the financial and administrative expenditures for the functioning and increasing the level of activities’ efficiency. The use of digital technologies allows the subjects of the real sector of the economy to increase the economic volumes in various spheres, which, in its turn, has a positive influence on a country’s GDP. Therefore, there’s a necessity for the formation of a new anti-crisis set of tools, since the current tools do not ensure the survival of the economy and its subjects under modern conditions. Thus, a very important issue is the research of the effectiveness of using the new directions of digitalization in the development of an economic system. The key research hypothesis is the idea of the link between

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_62

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the perspective directions of the digital economy and the economic growth of countries. The purpose of this work is to reveal the influence of implementing the directions of the digital economy on the economic growth of countries amid the pandemic and lockdown restrictions and in the long term. The following tasks are solved to reach the above goal: • Studying the state of the change of countries’ economic development due to the influence of the lockdown restrictions and the consequences of the COVID-19 pandemic; • Assessing the directions of the digital economy that are used before and after the lockdown restrictions and the consequences of the COVID-19 pandemic; • Analysing the influence of the change of the directions of the digital economy that are used before and after the lockdown restrictions and the consequences of the COVID-19 pandemic on the state of the national economy.

sector of Russia, presenting the theoretical approaches in this direction. The authors of Wu et al. (2018) present the experience and achievements in the sphere of using robotics (one of the directions of the digital economy) in Japan, the USA, Germany, France, and China. The influence of robotics on the state of the industry is studied. Zhang and Chen (2019) dwell on the theoretical framework, factual state, opportunities, and risks of the development of China’s digital economy in the modern state. The authors determine the main factors that ensure the country’s high positions in this sphere. Szunomár (2020) presents a study of the digital economy and notes the factors of competitiveness in this sector. The author elaborates on the necessity to study the systemic problems in this sphere and analyses a new model of a country’s growth, which includes the use of the digital economy’s components.

3 2

Literature Review

An analysis of the works devoted to the issues of the economic transformations as a result of the pandemic, digitalization, and its influence on the economic state of countries has been performed. The authors of Zadorozhniuk et al. (2017) present theoretical and practical research of IT outsourcing as a sphere of the digital economy’s development in various directions and an analysis of certain countries’ experience in the external transfer and completion of various projects in this sphere. Chen et al. (2019) and Fajgelbaum et al. (2020) consider the specific features of the protectionist policy of the USA, including in the technological sphere. The authors note the effect of these measures on the development of the digital economy of countries after the U.S. returned to this practice of sector regulation. Lenchuk and Filatov (2019) study the issue of strategic planning of overcoming the technological underrun of the IT Table 1 Dynamics of GDP of the USA, India, Japan, China, and Russia for 2015–2020

Materials and Method

In this work, we seek proof of the assumption of the influence of implementing new directions of the digital economy on the economic growth of countries. For this, the following methods are used: statistical method, which is required for determining the factual state of the studied indicators in dynamics; comparative method, which is used to discover the changes of the states of the indicators studied; and factor analysis, which is applied to reveal the key directions of the digital economy that influence the transformations of the economic state of countries (tools of crisis management). During the analysis, the statistical data on the development of the digital economy and economic development of the selected countries for 2015–2020 are studied. The state of economic development of the selected countries is studied by the example of the indicator “Gross domestic product (GDP)” of the USA, India, Japan, China, and Russia. Table 1 presents the dynamics of GDP of the USA, India, Japan, China, and Russia.

Country

GDP, $ million/year 2015

2016

2017

2018

2019

2020

USA

18,240,000

18,750,000

19,540,000

20,610,000

21,430,000

20,940,000

India

2,104,000

2,295,000

2,651,000

2,701,000

2,871,000

2,623,000

Japan

4,389,000

4,923,000

4,867,000

4,955,000

5,065,000

5,048,690

China

11,062,000

11,233,000

12,310,000

13,895,000

14,280,000

14,721,000

Russia

1,363,000

1,277,000

1,574,000

1,657,000

1,687,000

1,483,000

Source Created by the authors based on World Bank (2021)

Crisis Management of the Development of the Digital Economy and Its Post-COVID Perspective Table 2 Dynamics of the state of the digital economy in the USA, India, Japan, China, and Russia in 2015–2020

Country

313

Sales volume of digital technologies (services), $ million/year 2015

2016

2017

2018

2019

2020

USA

1,615,800

1,694,000

1,741,000

1,850,000

1,906,000

1,817,000

India

127,600

134,500

139,200

149,800

151,200

145,000

Japan

331,450

338,200

344,160

351,500

359,400

363,400

China

2,937,000

3,482,000

4,063,100

5,444,100

5,809,120

6,071,300

Russia

35,040

36,100

45,156

45,580

48,187

45,560

Source Created by the authors based on UNCTAD (2021)

The above statistical data are used to analyse the change of the economic state of the countries and to evaluate the influence of the digital economy on the GDP changes due to the crisis phenomena. Table 2 presents the dynamics of the state of the digital economy in the USA, India, Japan, China, and Russia in 2015–2020. The above statistical data are further considered during the assessment of the digital economy’s effect on the change of national GDP.

4

Results

Let us consider the main characteristics of the digital economy in the USA, India, Japan, China, and Russia in 2015– 2020. The research shows that there was a growth of the volumes of sales of software, cyber-physical systems (including the sphere of e-commerce), robotics, and technical consulting in the sphere of systems integration in the USA in 2015– 2019. However, such component of cyber-physical systems as e-commerce demonstrated a decrease. This is due to the level of prices for products and services that were manufactured in the USA. In 2020, the volume of sales of software decreased by 6%, equalling 19% of the total volume of sales in the sphere of the digital economy. Adequate market prices were not ensured. Since many subjects of the market and the population were oriented at cutting down expenditures during the 2020 crisis, prices for products and services in this sphere did not conform to the capabilities and could not compete with the prices of foreign rivals. This is true also for cyber-physical systems and robotics. All directions, except for 3D technologies, were not able to ensure the growth of the U.S. digital economy, though their development ensured its functioning at a high level. The main directions of India’s digital economy did not ensure an increase or support of the level of this sector due to external challenges connected to COVID-19. In 2020, India did not demonstrate the growth of the digital economy but there was no substantial decrease either, which was due to

rather significant demand for the products (services) of this sector and investments in the development. Zadorozhniuk et al. (2017) state that the development of software was connected to government investments and the creation of a favourable climate in this sphere (guarantees for crediting, tax credits, and promotion of national IT companies in the international markets of IT outsourcing). Despite the growth of sales in this direction, there was a low level of wages, caused by specialists training (insufficient knowledge of foreign languages and other skills in software development). This influenced the quality of software and contract termination. According to Fajgelbaum et al. (2020), the USA introduced protectionist measures in 2018, which limited the outsourcing of IT projects (with Indian IT companies). In 2020, the indicator of the sales of software from India’s IT companies to the U.S. subjects was almost zero. Despite the large government investments, India’s digital economy did not ensure highly competitive positions by the quality of IT services or products (namely, software), but allowed supporting sales, demonstrating a certain underrun. In 2015–2020, the volume of sales of digital technologies (services) in Japan demonstrated growth in all directions, except for cyber-physical systems. It is necessary to note the experience and perspective of the development in the sphere of robotics, which is confirmed by the growth of sales (Wu et al., 2018). Compared to other studied countries, Japan was able to achieve high results in this sphere. Accordingly, the list of directions selected by the Japanese IT sector allowed opposing the external challenges. These spheres will be important in the long-term, since they are competitive by quality and price and conform to the changing demand. The volume of sales of digital technologies (services) in China demonstrated a stable growth, and this tendency did not change in 2020, amid the COVID-19 pandemic. According to Zhang and Chen (2019), the growth of the volume of sales for all directions of the digital economy was supported by the government. The volume of sales of cyber-physical systems (including sales in the sphere of e-commerce) decreased due to the trade conflicts with the USA, which led to the reduction of turnover in this sphere.

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As is justly noted in Chen et al. (2019), this conflict influenced the decrease in China’s positions in the sphere of digital technologies in the world market and the reduction of revenues from the export of IT services (products). The Chinese digital economy used the optimal—for its potential —portfolio of products (services), ensuring the growth of the sales volume. The positive growth was ensured despite the pandemic and lockdown, given the technological conflict with the USA. This is proof of the effectiveness of Chinese IT companies’ approach to crisis management. The volume of sales of digital technologies (services) reduced in 2016 compared to 2015 and in 2020 compared to 2019. In the first case, the decrease in the indicator was caused by the technological underrun of the Russian digital economy (Lenchuk & Filatov, 2019), and in the second—by the influence of the above factor and the additional crisis reduction due to the pandemic and lockdown. Due to the insufficient market attractiveness (mismatch between the quality and prices for information technologies) in 2020, the volume of sales in this sphere decreased. Thus, it is possible to state that subjects of this sector did not create a necessary mechanism of crisis management for such situations. Based on the evaluation of the results of systematizing the data of the dynamics of changes, we revealed that in most countries the growth of the digital economy positively influences the level of economic development due to the optimization of the portfolio of products (services) in this sphere. This is seen in the period of the stable state of the economy at the national and international levels (2015– 2019). At that, even in case of the influence of unpredictable situations (pandemic, lockdown restrictions of business and activity), the positive influence is ensured through the effective choice of the directions of the digital economy (competitive by the main parameters) and its position in the national economy. As could be seen, despite the growth of the digital economy amid the crisis, Japan did not ensure the growth of the national economy—which confirms our assumption. The example of China demonstrates the direct influence of the two variables since the condition of the digital economy's provision of a large share of national GDP is observed. It is possible to state that the main solutions of crisis management in this sphere for the post-COVID perspective could be as follows: • the creation of the forecasts of the changes and the influence of the digital economy on the state of the national economies in the conditions that are similar to the pandemic and lockdown restrictions, which were characteristic of 2020, and other extreme conditions, which are subject to forecasting;

J. F. Anoshina et al.

• selection of the optimal portfolio of products (services) in the sphere of digital technologies at the level of subjects that create them and sell in the market (participants of the sector of the digital economy) for the planned period given the forecast of the development of demand, pricing parameters, technological requirements, and own potential; • provision of the technological growth of the participants of the sector of the digital economy by the government, at the level of public–private partnership.

5

Conclusion

We have discovered the influence of the directions of the digital economy on the economic growth of countries (USA, India, Japan, China, and Russia) amid the pandemic and lockdown restrictions and in the long term. The analysis has shown that the USA, India, Japan, China, and Russia occupied the leading economic positions in the world market over 2015–2020. China is the leader in the sphere of the digital economy, while the USA is ranked 2nd. We have also revealed the connection between the use of the perspective directions of the digital economy and the economic growth of countries; it has been proved that it is achieved due to the quick development and high position of this sphere in the national economy. China demonstrates the most significant manifestation of this connection due to the use of successful crisis management. We have also determined the main perspective solutions of crisis management in the sphere of stimulation of the development of the digital economy as an important component of the national economy.

References Chen, A. W., Chen, J., & Dondeti, V. R. (2019). The US-China trade war: Dominance of trade or technology? Applied Economics Letters, 27(11), 904–909. Fajgelbaum, P. D., Goldberg, P. K., Kennedy, P. J., & Khandelwal, A. K. (2020). The return to protectionism. The Quarterly Journal of Economics, 135(1), 1–55. Lenchuk, E. B., & Filatov, V. I. (2019). Strategic planning as a tool to overcome Russia’s technological backwardness. The World of the New Economy, 13(2), 32–42. Szunomár, Á. (2020). The digital great leap forward mapping China’s 21st-century attempt to create a new growth model. AKJournals, 70, 95–115. UNCTAD. (2021). Digital economy report. https://unctad.org/topic/ ecommerce-and-digital-economy/digital-economy-report. Accessed February 23, 2022.

Crisis Management of the Development of the Digital Economy and Its Post-COVID Perspective World Bank. (2021). GDP. https://data.worldbank.org/indicator/NY. GDP.MKTP.CD. Accessed February 23, 2022. Wu, Q., Liu, Y., & Wu, C. (2018). An overview of current situations of robot industry development. ITM Web of Conferences, 17, 3–19.

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Zadorozhniuk, N. A., Pustovoy, A. V., & Shevel, A. A. (2017). International experience of IT-outsourcing development. Scientific Journal of Kherson State University, 27(1), 26–29. Zhang, L., & Chen, S. (2019). China’s digital economy: Opportunities and risks. IMF Working Papers, 016, 1–24.

The Model of Sustainable Development of Economy Based on Digital Competitiveness Management Ahmed G. Buchaev , Yahya G. Buchaev , Salihbek G. Abdulmanapov , Zalina M. Abdullaeva , and Abakar S. Mudunov

national economies’ sustainable development. An important contribution to the provision of empirical research is the establishment of a connection between the variable of digital competitiveness and the model of sustainable development of a national economic system.

Abstract

Purpose: The purpose of this paper is to study the state and transformations of the model (character) of sustainable development of national economies depending on digital competitiveness. Design/methodology/approach: The methods used during this research include the statistical method, comparative analysis, and identification. Findings: During the assessment of the Digital Competitiveness Rankings, we distinguish countries that are leaders in this sphere: USA, Singapore, Denmark, Sweden, Hong Kong, etc. It is determined that a high value of this indicator is due to the high values of its components, namely economic, social, and environmental. The analysis has shown that Kazakhstan and Russia had a similar level of this indicator in 2018–2020—35– 40. We have formulated the models of sustainable development of national economies in 2018–2020 and discovered that the high level (high balance) is observed only with Switzerland; medium (balance)—with the USA, the Netherlands, Sweden, Denmark, Norway, Hong Kong, Singapore, and Taiwan; and low (underrun)—with Russia, Kazakhstan, and China. We prove the connection between the development of digital competitiveness and the sustainable development of the economy. Originality/value: The scientific novelty of this research consists in further development of the methodological framework of evaluating the Sustainable Development Index of national economic systems. We also formulate an approach to identifying the model (character) of A. G. Buchaev (&) . Y. G. Buchaev . S. G. Abdulmanapov . Z. M. Abdullaeva . A. S. Mudunov Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected] Y. G. Buchaev e-mail: [email protected] A. S. Mudunov e-mail: [email protected]

Keywords

. .

.

. .

Digital competitiveness Sustainable development Economic system Technologies Model Balance JEL Classification

L81

1

.

M50

.

N10

Introduction

An increase in the rates of growth of the volumes of material production and population, which were the key factor of the civilizational development over the nineteenth and twentieth centuries, influenced a quick growth of the anthropogenic burden on the national ecosystems. The modern systemic studies show that the natural assimilation potential does not ensure the restoration of the national environment anymore —substantial irreversible changes started in a lot of structural components of ecosystems. Many countries begin to realise the necessity for a radical reconsideration of the strategy of their development only after the processes of degradation of the biosphere have acquired the scales that influenced the emergence of clear changes of its global components (land, water, and air). It should be noted that the entire history of humans is linked to the continuous growth of the scales of consumption of natural resources, primarily energy. Over the last hundred years, the rates of natural resources consumption grew significantly. The volume of resources attracted in the production sphere could be compared to the volume that was used in all previous years. In

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_63

317

318

A. G. Buchaev et al.

the second half of the twentieth century, the extraction and consumption of mineral resources doubled every decade, energy capacities grew, and the volumes of industrial products and equipment increased twice as fast as the population. The early twenty-first century is characterised by economic development that is based on further growth of the scales of extensive use of natural resources. The preservation of traditional volumes of their consumption in the long-term could lead civilization to a critical lack of all natural resources, which will negatively influence the economic development and the activity of the entire society. The use of digital technologies in the modern world is a current process, which belongs to the sphere of human activity. In the age of the wide implementation of high technologies in everyday life, digitalisation becomes not only a means of increasing the effectiveness and achieving maximum convenience but also a necessary factor that ensures constant development that is required for supporting the competition. This process means the implementation of high technologies in the existing objects, as well as the creation of new products in the digital form. Countries that are oriented at the provision of sustainable development of all spheres, including the economy, implement the latest digital technologies, which stimulate the substantial support of well-balanced energy consumption, environmentally safe production, etc. Taking into account the wide opportunities of digital technologies in different spheres of life activities, the main hypothesis of this research is the assumption on the development of a model (character) of sustainable development of national economies depending on the level of development of digital technologies. The purpose of this work is to study the state and transformations of the model (character) of the sustainable development of national economies depending on digital competitiveness. To achieve this goal, the following tasks are solved: • studying the Digital Competitiveness Rankings; • identifying the model (character) of sustainable development of national economies; • establishing the connection between the development of digital competitiveness and the models (character) of national economies’ sustainable development.

2

Literature Review

To study the issue of the relation between the development of digital competitiveness and the models (character) of sustainable development of national economies, let us analyse the theoretical framework in this sphere.

The work (Khanova & Skibina, 2017) is devoted to the methodological framework of analysing the level of sustainable development of the EU member states. This indicator implies a complex evaluation of a range of components, which include economic indicators; indicators defining the state of social development; and environmental indicators. Based on these estimates, the authors analyse the given complex indicator of EU member states and reveal substantial differences in the values of this indicator within the regions of the EU, which depend on the state of the economy. The author of Safronchuk (2018) studies the impact of digital technologies on the transformations of the economic behaviour and living environment and assess the changes in the sphere of the business environment, the behaviour of business subjects (emergence of new business strategies, opportunities for marketing activity, directions of the competitive interaction, new factors of provision of competitive positions, and new directions of profit-making). The authors of Laitsou et al. (2020) study the effect of digital competitiveness on the state of the national economy and the competitive advantages of a country’s business environment. The work (Laitsou et al., 2020) considers the factual state of this effect and forecast the connection between this phenomenon and the country’s economic development (by the example of Greece). The authors present important conclusions on the main directions of the national policy in the sphere of provision of digital competitiveness of Greece and other EU member states. In Stankovic et al. (2021), the authors identify the role of digital technologies and digitalisation in the formation and transformations of most sectors of the economy (by the example of the countries of Northern Europe). The authors study the structure of digital competitiveness and present the assessment of the connection between the development of digital technologies and certain economic indicators by the example of the countries of Northern Europe. In Folea (2018), the author elaborates on the change of such important component of national economic potential as labour resources. The research is conducted by the example of the EU countries in 2015–2017. The author proves a substantial influence of digital transformations that ensure digital competitiveness on the formation of labour resources of countries in the main directions of their adaptation to the new conditions. The theoretical provision of the model of economy digitalisation and the systematisation of the models of digital competitiveness of small countries of the EU are considered in Stolyarova (2020). In the research Kosolapov and Strovskiy (2018), the authors present the perspective directions of the activity that influence the successful implementation of the modern ways of economy’s functioning and substantiate the perspectives of the development of the mining

The Model of Sustainable Development of Economy Based on Digital Competitiveness Management

sector of industry under the conditions of the required provision of environmentalization. Despite a large number of scientific works, there is a need to present a modern picture of the interconnection between such variables as digital competitiveness and sustainable development of national economic systems.

3

Materials and Method

This research implies the identification of the connection between the development of digital competitiveness of countries and the formation of a model (character) of national economies’ sustainable development. To study the level of development of countries’ digital competitiveness, the following methods are used: statistical method—for collection and processing of the statistical data; method of comparative analysis—for discovering the changes of the indicator’s value. Determining the model (character) of national economies’ sustainable development is linked to the use of the statistical method for establishing the quantitative values of this indicator’s development; identification method, which allows forming a model (character) of this phenomenon. Establishing a connection between the development of digital competitiveness and the models (character) of sustainable development of national economies is performed with the use of the comparative method, which is required for comparing the indicators of the state of two variables. This research is based on the use of the statistical data of digital competitiveness and the indicators of national economies’ sustainable development in 2018–2020. The authors of this research use the data of the World Digital Competitiveness Rankings, which includes three main components. 1st: element of knowledge (which is used to assess the abilities to understand and study new technologies (characteristics of digital abilities skills, R&D)); the element of technologies (identification of economic conditions for the creation of innovative digital technologies, including the legal climate of the regulation of this sphere, access to capital, and technological basis); the element of readiness for the future (evaluation of the readiness of citizens, business environment, and government systems for implementation of digital innovations and the state of digital adaptability (use of online services and online interaction at various levels), and mobility and level of electronic development) (IMD, 2021; Pizhuk, 2019). A study of the methodological and scientific materials shows that the IMD World Digital Competitiveness Rankings demonstrates the state of potential capabilities and the level of readiness of various countries to adapt to the processes of digital transformations of the economy (IMD, 2021; Pizhuk, 2019).

319

Table 1 contains the values of WDCR for the studied countries in 2018–2020. According to Khanova and Skibina (2017), the level of the economy’s sustainability is usually studied with the help of the sustainability index, which is based on a complex value of the economic, social, and environmental components. Before 2018, this index was prepared every two years according to the methodological provision developed by the Sustainable Society Foundation. Since 2018, this research has been conducted in a research institute in Cologne (TH Köln). Below the authors’ results of the research of this index based on the complex value of its components’ rankings are given. Table 2 presents the values of the sustainable economy index (SEIa) for the studied countries in 2018–2020. It should be noted that the traditional abbreviation of this index has been changed from SSI to SEIa, since its value for 2018– 2020 is presented based on the authors’ research. The economic component (Reconomy) is compiled based on the ranking of the level of GDP (Euroosvita, 2019; NONEWS, 2020) of the studied countries; social component (Rsociety) —based on the Human Development Index, which published annually by the UN (Gtmarket, 2020; UNDP, 2019); ecological component (Recology)—based on the Environmental Performance Index (NONEWSCO, 2020). Given the fact that the Environmental Performance Index is updated every two years, its value is usually assessed at the same level for 2018 and 2019. The above indicators shall be used in the process of studying the connection between the development of digital competitiveness and the models (character) of national economies’ sustainable development.

4

Results

Based on the presented statistical materials (Table 1) it is possible to state that the key positions in the Digital Competitiveness Rankings in 2018–2020 belonged to the following countries: • USA (1st position), which has a high level of development of knowledge (1st position), technology (1st position), and future readiness (7th position); • Singapore (2nd position), Denmark (3rd position in 2020, 4th position in 2018 and 2019), Sweden (4th position in 2020, 3rd position in 2018 and 2019), and Hong Kong (5th position in 2020, 11th position in 2018 and 8th position in 2019). Figure 1 presents the dynamics of the change of the WDCR values for certain studied countries in 2018–2020. The largest changes are observed with China in 2018–2019,

320 Table 1 Values of WDCR for the studied countries in 2018– 2020

A. G. Buchaev et al. No

Indicator/country

Value 2018

2019

2020

1

2

3

4

5

1

USA (WDCR)

1

1

1

k

4

1

1

t

3

5

7

2

3

4

5

6

7

8

9

10

fr

2

1

2

Hong Kong (WDCR)

11

8

5

k

5

7

7

t

6

4

2

fr

24

15

10

Sweden (WDCR)

3

3

4

k

7

4

4

t

5

7

6

fr

5

6

7

Denmark (WDCR)

4

4

3

k

8

6

6

t

10

11

9

fr

1

2

1

Singapore (WDCR)

2

2

2

k

1

3

2

t

1

1

1

fr

15

11

12

Switzerland (WDCR)

5

5

6

k

6

2

3

t

9

10

11

fr

10

10

5

Netherlands (WDCR)

9

6

7

k

12

13

14

t

8

6

8

fr

4

3

4

Taiwan (WDCR)

16

13

11

k

19

17

18

t

11

9

5

fr

22

12

8

China (WDCR)

30

13

11

k

30

17

18

t

34

9

5

fr

28

12

8

Norway (WDCR)

6

9

9

k

16

16

16

t

2

3

3

fr

6

8

6 (continued)

The Model of Sustainable Development of Economy Based on Digital Competitiveness Management

321

Table 1 (continued) No

Indicator/country

Value 2018

2019

2020

1

2

3

4

5

11

Kazakhstan (WDCR)

38

35

36

k

35

32

34

t

39

39

41

12

fr

40

35

33

Russia (WDCR)

40

38

43

k

24

22

26

t

42

43

47

fr

51

42

53

k—level of the development of knowledge; t—level of the development of technology; fr—level of the development of future readiness Source Compiled by the authors based on IMD (2018, 2021)

Table 2 Values of the sustainable economy index for the studied countries in 2018–2020

No 1

2

3

4

5

6

7

Indicator/country USA (SEIa)

Value 2018

2019

2020

43

45

42

Reconomy

1

1

1

Rsociety

15

17

17

Recology

27

27

24

Hong Kong (SEIa)

66

66

71

Reconomy

34

34

35

Rsociety

4

4

4

Recology

28

28

32

Sweden (SEIa)

37

35

52

Reconomy

24

23

37

Rsociety

8

7

7

Recology

5

5

8

Denmark (SEIa)

51

50

62

Reconomy

37

37

51

Rsociety

11

10

10

Recology

3

3

1

Singapore (SEIa)

92

93

88

Reconomy

34

33

38

Rsociety

9

11

11

Recology

49

49

39

Switzerland (SEIa)

23

23

39

Reconomy

20

20

34

Rsociety

2

2

2

Recology

1

1

3

Netherlands (SEIa)

45

43

44

Reconomy

17

17

25

Rsociety

10

8

8

Recology

18

18

11 (continued)

322

A. G. Buchaev et al. Table 2 (continued) No

Indicator/country

Value 2018

8

9

10

11

12

2019

2020

Taiwan (SEIa)

72

86

94

Reconomy

20

32

33

Rsociety

29

31

30

Recology

23

23

31

China (SEIa)

207

207

207

Reconomy

2

2

2

Rsociety

85

85

85

Recology

120

120

120

Norway (SEIa)

45

44

62

Reconomy

30

29

52

Rsociety

1

1

1

Recology

14

14

9

Kazakhstan (SEIa)

203

205

176

Reconomy

52

53

40

Rsociety

50

51

51

Recology

101

101

85

Russia (SEIa)

112

115

116

Reconomy

11

11

6

Rsociety

49

52

52

Recology

52

52

58

Reconomy—ranking of the economic component; Rsociety—ranking of the social component; Recology— ranking of the ecological component Source compiled by the authors based on NONEWS (2020), NONEWSCO (2020), Euroosvita (2019), Gtmarket (2020), UNDP (2019)

when the indicator reduced by 17 positions (which is a sign of the growth of the position in the rankings), and Russia in 2019–2020 (decrease in the value by 5 positions; Kazakhstan, Taiwan, and the Netherlands went up in the rankings by 3 positions in 2018–2019. It should be noted that digital competitiveness, unlike other indicators of the development of the economy and society, did not demonstrate a substantial decrease in 2020 compared to 2019, due to the influence of the global economic crisis and lockdown. It is possible to state that a high value of digital competitiveness conforms to a high level of the sustainable development of economy (high balance) in Switzerland; medium value—to a medium level of the sustainable development of economy (balance) in the USA, the Netherlands, Sweden, Denmark, Norway, Hong Kong, Singapore, and Taiwan; and low value—to a low level of the sustainable development of economy (underrun) in Russia and Kazakhstan. This influence does not conform to the conditions of the development of China, since China performed a large leap in the development of digital

competitiveness in 2020. However, on the whole, the assumption on the mutual influence of these variables is confirmed.

5

Conclusion

The state and transformations of the model (character) of national economies’ sustainable development depending on digital competitiveness have been studied. The assessment of the ranking of the development of digital competitiveness allowed distinguishing countries that are leaders in this sphere: the USA, Singapore, Denmark, Sweden, Hong Kong, etc. It has been established that a high value of this indicator is due to the high values of its components, namely the economic, social, and environmental. The models (character) of national economies’ sustainable development over 2018–2020 have been identified. Also, the connection between the development of digital competitiveness and the sustainable development of the economy has been proved.

The Model of Sustainable Development of Economy Based on Digital Competitiveness Management Fig. 1 Dynamics of the change of the WDCR for the studied countries in 2018–2020. Source Compiled by the authors based on IMD (2018, 2021)

323

5 -2 1 -3 0 3 -2 -17 -2

2019-2020

-3

2018-2019

1 -3

30

1 0 -1 0 1 0 -3 -3 -20

References Euroosvita. (2019). Country ranking by GDP 2019. http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed February 12, 2022. Folea, V. (2018). Digital competitiveness of European union member states from the perspective of human capital. European Journal of Engineering and Formal Sciences, 2(1), 27–36. Gtmarket. (2020). Human development index 2020. http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed February 12, 2022. IMD. (2018). World digital competitiveness ranking. https://www.imd. org/. Accessed February 12, 2022. IMD. (2021). World digital competitiveness ranking. https://www.imd. org/centers/world-competitiveness-center/rankings/world-digitalcompetitiveness/. Accessed February 12, 2022. Khanova, Ye. V., & Skibina, S. O. (2017). Sustainable development of EU countries: Assessment methodology and indicators. Economic Problems, 3, 20–32. Kosolapov, O. V., & Strovskiy, V. E. (2018). Model of sustainable development: Conditions for its implementation. News of the Ural State Mining University, 4(52), 122–126.

-15

-10

-5 rating units

0

5

10

Laitsou, E., Kargas, A., & Varoutas, D. (2020). Digital competitiveness in the European Union era: The Greek case. Economies, 8, 85. NONEWS. (2020). Gross domestic product (GDP). https://nonews.co/ directory/lists/countries/gdp-ppp. Accessed February 12, 2022. NONEWSCO. (2020). Environmental performance index. https:// nonews.co/directory/lists/countries/ecology. Accessed February 12, 2022. Pizhuk, O. I. (2019). Modern methodological approaches to assessing the level of digital transformation of the economy. Business-Inform, 7, 39–47. Safronchuk, M. V. (2018). The impact of digital transformation on business and business environment. Digital Economy, 2, 38–44. Stankovic, J. J., Marjanovic, I., Drezgic, S., & Popovic, Z. (2021). The digital competitiveness of European countries: A multiple-criteria approach. Journal of Competitiveness, 13(2), 117–134. Stolyarova, E. (2020). Models of digitalization of European countries with a small open economy. Bank Gazette, 11, 60–72. UNDP. (2019). Human development report 2019. https://hdr.undp.org/ sites/default/files/hdr2019.pdf. Accessed February 12, 2022.

The Strategy of Advanced Development of Economy and Its Implementation Based on Digital Competitiveness Arsen S. Abdulkadyrov , Gamid A. Buchaev , Svetlana A. Buchaeva , Nurziyat Yu. Kazavatova , and Ahmed G. Buchaev

Abstract

The digital economy effectiveness is the issue of the national strategies of achieving economic growth and socioeconomic development. In the modern conditions of the wide integration of digitalisation in diverse spheres of human activities, competition acquires a new character. Technologies change quickly and influence not only the effectiveness of isolated businesses but also each country and its readiness for the digital future. The ability to adapt to the processes of globalisation and technological transformation is one of the most important factors of the stable development of a country and the formation of the digital economy. Digital transformations that take place in the world make countries form and develop new competitive advantages. Keywords

.

.

Digital competitiveness Digital economy Technologies World market

.

JEL Classification

M15

1

. . . O14

O32

O33

Introduction

The digital economy is based on ICT (information and communication technologies). Investments in ICT stimulate the growth of efficiency, employment, and GDP. The A. S. Abdulkadyrov (&) Dagestan State Technical University, Makhachkala, Russia e-mail: [email protected] G. A. Buchaev . S. A. Buchaeva . N. Yu. Kazavatova . A. G. Buchaev Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected]

digitalisation of the economy is treated as the main cause of innovations, economic growth and social changes (Olbert & Spengel, 2017). The main specific features of the digital economy are the following: geographic location is no longer a competitive benefit; the main role belongs to trade platforms and communication networks (Valenduc & Vendramin, 2016). Companies have to reconsider the methods of creation, exchange, and receipt of value in the new digital environment. Competitiveness is a country’s ability to redistribute the cost that is created in the world economy in its favour. This is ensured through creating the conditions for larger added value to support the high quality of life in a country. According to the WEF (Shaping the Future of Digital Economy & New Value Creation, 2020), it is expected that more than 60% of the world GDP will be digitalised in 2022. As of now, around 50% of the world are not involved with the digital economy. According to Shaping the Future of Digital Economy and New Value Creation (2020), an increase of the indicator of a country’s digitalisation by 10% leads to an increase in GDP per capita by 0.75% and a significant decrease in the unemployment level. At present, an effective infrastructure of the digital economy is the mandatory condition for the increase of the international competitiveness of countries with medium income, which desire to reduce the gap in development and avoid the problem of traps of medium income (Balcerzak & Bernard, 2017; Domazet & Lazić, 2017; Gazzola et al., 2017; Tsyganov & Apalkova, 2016).

2

Methods

The COVID-19 pandemic has shown that digital technologies define not only the countries’ prosperity but also their ability to live through hard times. Effective use of digital technologies allows transferring education and work from schools and offices to homes and ensure more effective

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_64

325

326

A. S. Abdulkadyrov et al.

means of the organisation of processes in companies and governments. New technologies—3D print, virtual reality, sensors, AI, quantum calculations, and robototronics—could also change almost any sphere. The competitiveness of countries in these technologies will define the prosperity of the countries in the decades to come. High-quality digital infrastructure is the foundation of almost every sector of the modern innovative economy and society. Within the general concept of competitiveness, digital competitiveness is a multi-dimensional structure, which covers various factors of the process of digital transformation. We suggest using a methodology of measuring digital competitiveness, utilising the approach of the composite index, which includes a lot of various indicators. To assess European countries’ digital competitiveness, we use multi-criterial analysis in the two-stage procedure. This paper is aimed at studying the level of digital competitiveness of European countries. The method of the objective assessment of the indicators’ importance in the composite index is CRiteria Importance through Intercriteria Correlation (CRITIC).

3

Literature Review

Competitiveness, productivity, and innovations develop according to technological tendencies and socio-economic needs. The digital age showed a range of non-material assets that acquire larger value for effective digitalisation and successful implementation of technologies (Weresa, 2019), though productivity in the digital age is still important for the competitiveness (Aiginger & Vogel, 2015; Radman & Belin, 2017). Within the concept “Industry 4.0”, competitiveness is also described with the focus on quality or technologies (Ahmad & Schreyer, 2016). As for technological competitiveness, the whole concept could be connected to the following: • Innovative capabilities and ability for adaptation (Fagerberg, 1996); Fig. 1 Dynamics of digital competitiveness of regions of the world in 2017–2020. IMD (2021 Source Developed by the authors using)

• Ability to develop new economically sound technologies (Aschhoff et al., 2010); • technological innovations or increase of efficiency (Hemais et al., 2005; Radman & Belin, 2017; Weresa, 2019). The digital economy and its competitiveness were studied through the information economy (Rotz et al., 2020; Sutherland & Jarrahi, 2019; Trushkina, 2019), implementation of the digital market (Gupta & Bose, 2019; Lutz, 2019), Industry 4.0 (Backhaus et al., 2019), and new sources of obtaining competitive advantages (Hoła et al., 2015; Ketels & Porter, 2019).

4

Results

In 2020, International Institute for Management Development (IMD, 2021) published the World Digital Competitiveness Ranking, which analyses and ranks countries by the level of development and implementation of digital technologies that lead to the transformation of the activities of government, business models, and society on the whole. The ranking covers 63 economies of the world and is calculated based on 51 indicators (31 indicators are measured, and 20 indicators are determined as a result of surveys). Figure 1 shows the dynamics of digital competitiveness of regions of the world for the last five years. In 2020, countries of North America, East Asia and Western Europe preserved their leadership in the development, implementation, and research of digital technologies. At that, the average ranking of the competitiveness of North America and Western Europe remains stable, while East Asia improved its positions—from 18.6 in 2019 to 15.2 in 2020. Growth of average indicators of digital competitiveness is observed also in countries of South Asia and the Asia–Pacific region (from 33.3 in 2019 to 31.9 in 2020), as well as in the CIS and Central Asia (from 46.3 to 45 in 2020). Average indicators for West Asia and Africa and Eastern Europe remained unchanged. Countries of South America are still behind other regions; the indicators of their digitalisation somewhat decreased as compared to 2019.

The Strategy of Advanced Development of Economy and Its Implementation Based on Digital Competitiveness

The five leaders of the 2019 world digital competitiveness ranking—the USA, Singapore, Sweden, Denmark, and Switzerland—kept their positions in 2020. In 2020, Canada and the UK left the top 10. In 2018, the Swedish government adopted a goal of becoming the world leading country in the implementation of the opportunities provided by digitalisation. A range of policies and programs for achieving this goal was started, including large-scale investments in the digital infrastructure. In 2020, Sweden was first in the Networked Readiness Index (NRI)—an annual global comparison of countries’ abilities to use the capabilities of digitalisation. At that time, Sweden already had a high level of digitalisation, as compared to other OECD countries (OECD, 2017). However, the transition to a fuller inter-sectorial digitalisation is not that fast. Stimuli for expanding remote work, implementing digital communications, and reforming obsolete IT systems in government organisations were absent since the necessity was not considered urgent—until the start of the pandemic in early 2020. The method TOPSIS is used to evaluate countries by their digital competitiveness (Table 1). Digital platforms continue to increase coverage and offer various complex services. Costs of users’ transfers to other service providers will start growing. Global digital platforms made certain steps to strengthen their competitive positions,

Table 1 Ranking of countries by the level of achieved digital competitiveness Country

Indicator of digital competitiveness

Rank

Finland

0.76

1

Netherlands

0.74

2

Denmark

0.73

3

Sweden

0.70

4

Norway

0.69

5

Belgium

0.66

6

UK

0.59

7

Ireland

0.57

8

Austria

0.56

9

Slovakia

0.48

16

Spain

0.47

17

Estonia

0.46

18

Portugal

0.44

19

Serbia

0.43

20

Cyprus

0.38

22

Latvia

0.37

23

Croatia

0.35

24

Source Developed by the authors using IMD (2021)

327

including mergers and acquisitions and offering the accompanying goods and services (The Global Competitiveness Report, 2020). All this leads to the development of advanced strategies of economic development. The examples of the most vivid strategies of the economic development is Microsoft starting LinkedIn social network and Facebook purchasing WhatsApp. Alphabet (Google) and Microsoft invested in telecommunication equipment, merging smaller Motorola and Nokia, accordingly. Large platforms also performed other large-scale mergers in the retail, advertising, and marketing sectors, as well as real estate. Other measures include strategic investments in R&D and lobbyism in policy-making authorities.

5

Discussion

Mastering the process of digital transformation requires solid managerial and technical skills, institutes of leadership, policy, and regulation of the digital economy, as well as a competitive communication infrastructure and the sphere of ICT. Investments in the digital infrastructure and creation of the digital economy are treated as the main conditions for preserving and enhancing international competitiveness. The digital economy development could bridge the gap in development of regions. In this context, the results of the comparative analysis prove the assumption on the key role of digitalisation of the modern global economy. It is possible to see that countries with a high level of national competitiveness usually have high living standards. The analysis shows that the strategy of competitiveness of countries and regions must be founded on the main role of digitalisation.

6

Conclusions

The general development of information society should be aimed at the use of the potential of ICT for increasing effectiveness, economic growth, and raising employment to raise the quality of life of all citizens of a country. Digital transformation is the opportunity for European countries to solve a range of their problems. In recent decades, the importance of digitalisation became the object of intense research, since digitalisation changed the lives of individuals and groups of people. However, as for measuring digitalisation and digital competitiveness of countries, there is no common view on the composite indicator that would cover all aspects of digitalisation. Statistics show that countries of Northern Europe reached the highest level of digital competitiveness, while countries of Eastern Europe are outsiders. Statistics and results show that groups of countries with a

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lower-middle value of digital competitiveness have lower economic indicators, and developed countries are among countries with high digital competitiveness.

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A. S. Abdulkadyrov et al. medium-sized companies using selected polish construction enterprises as an example. Journal of Civil Engineering and Management, 21, 1014–1026. IMD. (2021). World digital competitiveness rankings 2020. IMD World Competitiveness Center website. https://www.imd.org/wcc/ world-competitiveness-center-rankings/world-digitalcompetitivenessrankings-2020/. Accessed January 30, 2021. Ketels, C. H., & Porter, M. E. (2019). Towards a new approach for upgrading Europe’s competitiveness. Harvard Business School. Lutz, S. U. (2019). The European digital single market strategy: Local indicators of spatial association 2011–2016. Telecommunications Policy, 43, 393–410. OECD. (2017). OECD digital economy outlook 2017. OECD Publishing. https://doi.org/10.1787/9789264276284-en. Accessed January 30, 2021. Olbert, M., & Spengel, C. (2017). International taxation in the digital economy: Challenge accepted. World Tax Journal, 9(1), 3–46. Radman, G., & Belin, A. (2017). Competitiveness in technology and innovation: How to keep on? International Journal of Digital Technology & Economy, 2, 45–56. Rotz, S., Gravely, E., Mosby, I., Duncan, E., Finnis, E., Horgan, M., & Pant, L. (2020). Automated pastures and the digital divide: How agricultural technologies are shaping labour and rural communities. Journal of Rural Studies, 68, 112–122. (2020). Shaping the future of digital economy and new value creation. https://www.weforum.org/platforms/shaping-the-future-of-digitaleconomy-and-new-valuecreation. Accessed January 30, 2021. Sutherland, W., & Jarrahi, M. H. (2019). The sharing economy and digital platforms: A review and research agenda. International Journal of Information Management, 43, 328–341. The Global Competitiveness Report. (2020). https://www3.weforum. org/docs/WEF_TheGlobalCompetitivenessReport2020.pdf. Accessed January 30, 2021. Trushkina, N. (2019). Development of the information economy under the conditions of global economic transformations: Features, factors and prospects. Virtual Economics, 2, 7–25. Tsyganov, S., & Apalkova, V. (2016). Digital economy: A new paradigm of global information society. Economic Review, 45. Valenduc, G., & Vendramin, P. (2016). Work in the digital economy: sorting the old from the new (Vol. 03, p. 52). Working papers— European Trade-Union Institute (ETUI). Weresa, A. M. (2019). Technological competitiveness of the EU member states in the era of the fourth industrial revolution. Economics and Business Review, 5, 50–71. https://ideas.repec.org/a/ vrs/ecobur/v5y2019i3p50-71n5.html. Accessed: January 30, 2021.

Risk Management of Digital Competitiveness in the Interests of a Sustainable and Advanced Economic Development Nikita A. Lebedev , Galina A. Terskaya , and Svetlana V. Zubkova

Abstract

Keywords

The purpose of this work is to study and scientifically substantiate the existence of risk management of digital competitiveness in the interests of sustainable and advanced economic development. The review of existing literature sources showed that they have formed an insufficient scientific basis for a clear definition of the existing risk management of digital competitiveness. To fill the identified gap in the system of scientific knowledge, this article uses the method of comparative and correlation analysis of statistical data. The top countries in the digital competitiveness ranking are selected as objects for study. In the process of conducting this study, methods of identification, assessment, risk management, management methods in the field of creating and promoting innovations, methods of comparative analysis, expert assessments are used to argue the main conclusions and results of the study. It is substantiated that from a scientific point of view, the existing arguments in the direction of researching the risk management of digital competitiveness in the interests of sustainable and advanced economic development are not presented sufficiently thoroughly, which makes it necessary to study this issue using the example of leading, competitive countries in the field of digitalization. A study of risk management of digital competitiveness in the interests of sustainable and advanced economic development is presented.

Risk management Digital competitiveness Sustainable economic development Advanced economic development

N. A. Lebedev (&) Moscow State Academy of Veterinary Medicine and Biotechnology—MVA named after K.I. Skryabin, Moscow, Russia e-mail: [email protected] G. A. Terskaya . S. V. Zubkova Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected]

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.

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JEL Classification

D81

1

. . . . F63

G32

Q01

O11

Introduction

Nowadays, there is a transition to new development models, which are based on the active introduction of digital technologies (Table 1). The development of digital competitiveness and risk management in this direction implies the need for a combination of the main provisions of the theory of risk management that are currently the basis of risk management. The purpose of this study is to solve some problems and fill some gaps related to the risk management of digital competitiveness in the interests of sustainable and advanced digital development.

2

Materials and Method

General issues of digital competitiveness are considered in the works of Bell (1974), Makarevich (2007), Zakharov et al., (2018). The problems of the development of digital technologies, digital strategies as the basis of a new model for the introduction of digital technologies were studied by Butrova (2021), Khachaturyan (2021), Knickrehm et al. (2016), Kupriyanovskiy et al., (2017).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_65

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Table 1 Top 10 countries by digital competitiveness in 2021 Place in the ranking

Country

Points in the ranking, compared to 2020

1

China

+ 211

2

Saudi Arabia

+ 169

3

Brazil

+ 88

4

Argentina

+ 80

5

Turkey

+ 77

6

Indonesia

+ 48

7

Canada

+ 47

8

Italy

+ 34

9

France

+ 28

10

Korea

0

Source Compiled based on data from New Digital Riser (2021), (World Digital Competitiveness Ranking)

The issues of introducing digital solutions and developing digital projects in the conditions of a sustainable and advanced economy were identified by Sirazetdinova (2012). Scientists have studied the main barriers to the implementation of digital competitiveness in the context of the digitalization of sustainable and advanced economies (Frolov et al., 2019, 2020). The study of the basic concepts of risk management and project risk in terms of digital competitiveness was carried out by Chernova and Kudryavtsev (2009), Elliott (2007), Kornienko and Makarova (2015), Mazur et al., (2004), Shapkin and Shapkin (2005), Sidorenko et al., (2017), Zakharova and Mityakova (2020) and others. Risk management as a part of the competitive activity is considered by Aubakirova and Isataeva (2021), Khachaturyan (2021), Natorina (2018), Pechatkin and Vildanova (2021), Shestakova (2015), Tskhurbaeva and Farnieva (2009) and others. Despite the rather large research base devoted to the concept of risk management in various areas of economic development, there are quite a few works devoted to risk management of digital competitiveness and especially few works devoted to risk management of digital competitiveness in a sustainable and advanced economy.

3

Results

Digital risk management refers to digital processes to improve risk assessment and monitoring, which may include cybersecurity risk, third party risk, operational risk, and many other types of risk. These risks may affect the financial performance, operations or reputation of the organization.

A digital risk management solution can include process automation, decision automation, digital monitoring and early warning systems, and can provide in-depth analytics to help the organization better track compliance status and current threat levels across all risk factors. Today, digitalization has radically changed the way business is conducted in a changing environment at an unprecedented rate, expanding the areas of communication with online shoppers, where the main advantages are convenience, instant response from managers, and low costs. Modern fast-growing shoppers purchase online through social media personalization and expect instant order processing and delivery. As a result of studying and analyzing the works of leading scientists and economists (Volkodavova & Zhabin, 2020), the key blocks of business digitalization have been identified, which make it possible to respond promptly to the market demands of online buyers (Fig. 1). Figure 1 provides an interpretation of the key blocks of business digitalization. Thus, the general administration of data, their coherence and quality, as well as efficient business models allow the accumulation and processing of large amounts of data (structured, unstructured). Advanced statistical methods and algorithms in combination with artificial intelligence (taking into account cognitive agents) contribute to the development of alternative solutions based on analytics. The modernized data environment containing the data architecture and underlying systems becomes flexible through virtualization and the use of cloud technologies. Relevant infrastructure ensures stable and well-coordinated interaction between online buyers and managers simultaneously on different devices. In turn, online tools and applications provide online buyers and managers with the ability to control, monitor and analyze the totality of their sequential actions online. Partnering with online actors expands digital business opportunities and accelerates the expansion of the required market share. The staff has digital knowledge, skills, and sufficient experience to work in the field of digital business, which is directly related to analytics. And a flexible organizational culture encourages effective collaboration (Glezman et al., 2020). Digitalization has ensured the mass creation of online platforms where business entities can sell goods, provide online services, and also contributed to the popularization and development of digital business. In turn, digital business formats the imperatives of digital risk management and information security through the implementation of innovative technological business approaches in order to generate many alternative management solutions and prevent market threats (Volkodavova & Zhabin, 2020). When forming a sample of acceptable alternative administrative decisions, the author proposed five patterns of

Risk Management of Digital Competitiveness in the Interests of a Sustainable and Advanced Economic Development Fig. 1 Key blocks of digitalization. Sources Compiled by the author based on information (Glezman et al., 2020)

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Key blocks of business digitalization

Data administration

Smart visualization

adaptation and/or sequestration of the current set of marketing programs and activities: 1. Development of a sound vision of digital risk management and information security, taking into account the specifics of increasing the level of online trust and the obligatory attributes of digital business sustainability. Developing a sound vision for digital risk management and information security is the impetus for the long-term sustainable development of digital business and is based primarily on online trust. 2. Adaptation of the strategic goals of programs and measures for managing digital risks and information security ascertainment as a part of following the new realities of digital business. The starting point of the digital risk management and information security program is the development of a vision that is relevant to all areas of digital business, which is the vector of strategic planning. The typical goal of such a program is to apply an iterative methodical approach to planning, generating and implementing information security solutions that are consistent with the current business order in the online space. 3. Renovate the online trust background and promote the sustainable proliferation of digital business. 4. Designing accommodative context-dependent information security architecture. It is important to note that the results of studies of the functioning of Ukrainian enterprises in the context of digitalization (Volkodavova & Zhabin, 2020) make it possible to assert that the prevailing majority of them have developed only a basic vision of the information security program, based on existing international IT standards, such as ISO/IEC 27001:2013. However, the vision must be tailored by identifying and taking into account the positive and negative impacts on digital business drivers, technologies and digital risks that are unique given the particular nature of the business. 5. Implementation of a set of digital risk management programs and measures to ensure the information security of digital business, based on innovative business processes and contributing to the permanent dilatation of market segments.

Personnel competence

Relevant infrastructure

Automation of business processes on optimization and standardization of tasks of various levels

The implementation of differentiated digital business approaches in practice is changing the traditional environment for the administration and control of the digital business. When using new digital technologies, digital business expands the boundaries of its autonomy in the market and stimulates the transition of offline buyers to online, which requires high-level information security. And the rapid increase in the omniscience of the digital business (for example, through information systems, devices, applications, and extensive IT interconnections) identifies problems associated with its scalability, as well as with many traditional information security management solutions. Reality makes adjustments to the existing practice of digital risk management and information security since most traditional business technologies and methods do not allow scaling digital business. Thus, the importance of the principle of least privilege for digital business is significantly reduced due to the active implementation of agile methods (Volkodavova & Zhabin, 2020). Taking this into account, digital business rationally assesses its digital risks and reformats the set of marketing programs and activities in such a way that they do not interfere, including the implementation of innovation policy. The competitiveness of a digital business largely depends on the ability of managers to rationally implement innovative technological approaches in practice to correctly adapt the strategic goals of a marketing program, in particular, to increase the range of potential online buyers. The digital business environment is associated with unprecedented digital risks that go beyond business operations, covering the digital business ecosystem and not individual lines. Therefore, the vision of digital risk management and information security should contribute to the design of a digital endogenous ecosystem and should be aimed at the long-term successful development of business in the online space. When arguing and justifying the vision of the digital business, it is recommended to take into account the following references: 1. Persistence of business processes and systematic implementation of different technologies. Full-scale digital business transforms standard business processes, modifies typical business functions. This proves the

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3.

4.

5.

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fundamental importance of the persistence of business processes and digital business technologies, which emphasizes the need for managers to permanently focus not only on strategic digital risks but also operational ones. Therefore, at the stage of implementing business functions, it is advisable to follow agile principles. The persistence of business processes and technologies requires significant investments. Increase stakeholder awareness to develop online trust. Conducting information campaigns is the key to a productive digital business. Support for a bimodal IT strategy. One of the tasks of specialists in levelling digital risks and ensuring information security in the process of active cooperation with stakeholders should be the development of a set of alternative promising IT projects with a direct focus on bimodality. The uniqueness of the business plan and the direction of action. The unstable conditions of digital transformation make it impossible to predict digital risks, therefore, in order to achieve the set strategic goals, digital business managers need to consider the most likely digital risks and develop non-standard effective solutions for them. Adequate rapid reaction in an unprecedented market situation catalyzes the progressive development of digital business. Protection of depersonalized IT assets that are not owned or controlled by the digital entrepreneur (cloud services, mobile applications, etc.). Purchasing and operating IT technology outside of the visibility or control of IT departments (IT departments) is a sound practice when running a digital business. Decentralized spending on IT indirectly determines digital risks that help minimize the negative consequences for digital business and also leads to minimal costs associated with the elimination of negative consequences.

As can be seen from Table 2, the range of these threats relates primarily to technical, technological and criminal law risks. Therefore, in the process of characterizing these risks and the consequences of their manifestation, one should take into account the sources and threats directly related to the use of information and information technologies. Where possible and appropriate, in the business risk classification system, these risks should be supplemented with appropriate specific risks, which will allow expanding the classification without destroying it (Bilenko et al., 2017). It should be noted that threats, discussed in Table 2, are associated with a direct impact on the company’s information system. However, as the analysis shows, some significant factors are affecting the final results of the company’s

activities, risk factors associated with the use of information and information technology, but not directly affecting the company’s information system. Such threats include the dissemination of false information concerning the company, which can negatively affect its image, as well as materials containing information that is characterized by a negative attitude towards the company. Since we are talking about any unwanted information content (content) in relation to the company, the risks resulting from the implementation of the relevant threats can be attributed to the so-called content risks of the company (Volkodavova & Zhabin, 2020). In terms of content and direction, such information can be classified as unethical, the purpose of which is to negatively influence the company’s image and damage it by manipulating the consciousness and actions of other parties (partners, competitors, consumers, etc.). Therefore, from the point of view of the casual approach, such actions by their nature can be attributed to socio-psychological groups. Based on the composition of risks included in the existing classification of business risks, it may be most reasonable to consider content risks as a component of social risks. The desire to implement digital transformation and their implementation naturally lead to the expansion of the company’s activities in cyberspace, where information is created, distributed, exchanged and consumed. The network, as a natural environment for information, on the one hand, provides new opportunities for its participants, on the other hand, it creates a range of dangers that a company and its employees can face when integrating into digital ecosystems. A high level of interdependence of elements increases the vulnerability of the system and increases the threats to its participants. This is especially true for companies that have had an average or high level of digitalization from the very beginning of their existence (ICT companies, as well as companies that operate based on digital platforms) (Beilin & Khomenko, 2018). It is known that there are some factors, the presence of which is a necessary condition for the success of any interaction. These include trust, coordination of actions, coherence of strategies, quality of communications between interacting enterprises, the ability to resolve conflicts through joint problem solving, etc. Their absence gives rise to a range of threats for companies engaged in partnerships in the process of implementing joint business projects. This may be a violation of partnership agreements, a lack of understanding and unity between representatives of partner companies, increased dependence on other companies in the business network, as well as several other threats that companies may face in the process of information and network interaction (Aubakirova & Isataeva, 2021).

Risk Management of Digital Competitiveness in the Interests of a Sustainable and Advanced Economic Development Table 2 Components of information risks, coinciding with components of management risk

333

Characteristics of the threats manifestation

Connection with the components of risk management

Destruction, failure or inoperability of technical means as a result of natural disasters, loss of software, information databases, etc

Natural and climatic

Destruction, failure or transition to a non-working state of technical means as a result of accidents, loss of software, information databases, etc Problems with utilities (interruptions in the supply of electricity, etc.) There may be errors in models, information processing algorithms, programs Reducing the reliability, completeness and relevance of information at the stage of its receipt and entry into the information system Various personnel errors (administrators, tellers, etc.)

Technical and technological

Interfering with the functioning of the information system by entering, transferring, damaging, violating, a configuration of information data Theft of personal and service databases, fraud associated with their use Abuses of personnel associated with illegal actions on information resources

Criminal law

Source Compiled by the author based on Istvanic (2017), (OECD broadband statistics update)

It should be noted that the partnership interaction of companies inherent in economic activity has always been associated with the so-called partnership (integration) risks. However, for a considerable time they did not affect entrepreneurial activity. Their influence in the general system of entrepreneurial risks was insignificant. The situation for companies has changed due to the intensification of digital transformation processes and, as a result, the widespread dissemination of information and networking. Since digital transformation is gradually covering the activities of traditional companies, in our opinion, partnership risk should be included in the classification of entrepreneurial risk as to its independent component (Butrova, 2021). To do this, as in the case of content risk, it is necessary to determine the place of partner risk in the classification system, as well as give a definition. Since the choice of partners, as a rule, is the result of a conscious activity of the company, then, from the point of view of the cause-and-effect approach, undesirable results (risks) of such a choice, by their nature, can be attributed to the group of organizational and managerial risks and its component—selective risk is the result of an insufficient level of substantiation of management decisions. In this case, using the rule of construction through genus and species difference, partner risk can be defined as follows (Volkodavova & Zhabin, 2020). For the development of digital competitiveness, it is important to identify possible digital risks. After identifying the risk, it is necessary to classify it and calculate the level of possible consequences in the interests of a sustainable and advanced economy (Pechatkin & Vildanova, 2021). In the theory of risk management, the main stages of assessing the existing risks of digital competitiveness and

their classification are formed and described. The final step in calculating the level of risks in the risk management of digital competitiveness is the calculation of the risk matrix. Planning and risk analysis takes place according to the ranking of this matrix.

4

Conclusion

Thus, there is a need to create a risk management model that will improve the quality of risk management decision-making in the context of the digitalization of sustainable and advanced economic development. This study presents a description of the main phases of the project that would identify possible risk situations. The presence of control points in the developed risk classification was also presented. Having studied the digital competitiveness of countries according to the dynamics of changes in positions in the world ranking of digital competitiveness, we note that the countries occupying the top 10 of the ranking gradually increased the pace of digitalization development and reduced the number of risks. In these countries, work has been carried out to manage risks in the following areas: criminal liability has been introduced regarding obstruction of the functioning of the information system by entering, transferring, damaging, violating, configuring information data, stealing personal and service databases, fraud associated with their use; a set of measures was taken to combat the decrease in the reliability, completeness and relevance of information at the stage of its receipt and entry into the information system. The potential benefits of digital risk

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initiatives include increased efficiency and productivity, increased risk efficiency, and increased revenue. Efficiency and productivity increase include a potential cost savings of 25% or more in end-to-end lending processes and operational risk through deeper automation and analytics. The effectiveness of risks can be improved through greater transparency through improved management and regulatory reporting, and greater accuracy of modelling results through improved data.

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Risk Management of Digital Competitiveness in the Interests of a Sustainable and Advanced Economic Development network business by digitalizing the team building process]. Leadership and Management, 7(2), 257–270. World Digital Competitiveness Ranking. https://www.imd.org/centers/ world-competitiveness-center/rankings/world-digitalcompetitiveness/. Accessed February 20, 2022. Zakharov, V. Ya., Trofimov, O. V., Frolov, V. G., Kaminchenko, D. I., & Pavlova, A. A. (2018). Kontseptualnye osnovy otsenki faktorov i sistemnyh effektov sbalansirovannogo razvitiya slozhnyh ekonomicheskikh sistem v sootvetstvii s kontseptsiey “Industriya 4.0” [Conceptual framework for assessing the factors and system effects

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of balanced development of complex economic systems in accordance with the concept of “Industry 4.0”]. Bulletin of the Nizhny Novgorod University. N.I. Lobachevsky. Series: Social Sciences, 3 (51), 7–23. Zakharova, E. V., & Mityakova, O. I. (2020). Otsenka innovatsionnogo potentsiala predpriyatiya s uchetom tsifrovizatsii ekonomiki [Assessment of the innovative potential of the enterprise taking into account the digitalization of the economy]. Russian Journal of Innovation Economics, 10(3), 1653–1666. https://1economic.ru/lib/ 110601. Accessed February 20, 2022.

Financial Support of Digital Competitiveness for Sustainable and Advanced Economic Development Vezirhan K. Giraev , Nazim L. Balamirzoev , and Inara K. Shakhbanova

Abstract

1

The article discusses the areas of financing digital technologies for various categories of economies and explores their features in modern conditions. The results of the impact of the financial provision of ICT on the indicators of the formation of the economy and sustainable development are determined. The transformations of financing models that have occurred in the development of some developing countries, demonstrating outstripping growth, are revealed. The possibilities of achieving the UN SDGs in the conditions of effective and high-quality management of such a digital tool as e-government are shown. Among the research methods used in the study, it is worth noting the method of indirect identification, the method of direct identification, comparative analysis, and statistical analysis. The scientific novelty of this study is related to the development of a list of modern models of financial support for the digitalization of various categories of the economy that have emerged in the post-COVID period. Keywords

..

. .

. . .

Financial security Digital technologies E-government Corporate finance Advanced development UN SDGs Digital competitiveness Industrial robots JEL Classification

F63

. . . . . G32

H11

O32

O33

Q01

V. K. Giraev (&) . N. L. Balamirzoev . I. K. Shakhbanova Dagestan State Technical University, Makhachkala, Russia e-mail: [email protected]

Introduction

The formation of elements of digital competitiveness in order to ensure faster economic development and achieve the UN SDGs requires systemic funding. Rapid development is based on the rapid increase in GDP and the development of the state economy, such a process is often observed in rapidly developing countries that have invested in technological development. Examples include India, Indonesia, China and other countries demonstrating significant progress in digitalization and economic growth. They implement strategies in the development of the economy using individual digital technology tools, contributing to the formation of the information society. It can be noted that these countries are mainly aimed at financing those industries that are guaranteed to provide an increase in international competitive positions and high value-added products (services). At the same time, problems remain in development in those industry areas that often include critical infrastructure facilities but do not produce competitive products (services). Accordingly, in countries with rapid economic development, subsidized industries often operate where decent market wages are not provided, social standards are violated, and there is no guideline for maintaining the greening of production. Respectively, the financing of tools for the digital competitiveness of the economy of these states has a targeted local character, while the problems of regional imbalance in the economic, social and environmental spheres are not taken into account. Countries that are focused on the implementation of the SDGs and their subjects create and finance highly competitive positions of digitalization in terms of maintaining a balance of economic, environmental and social parameters. In this direction, in addition to focusing on the individual corporate responsibility of companies, legislative mechanisms are created and operated to ensure the level of working conditions, wages, waste and emissions levels, and fines for exceeding environmental standards.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_66

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Because of the above, in order to identify the features of the formation of a modern economy, it is relevant to study the features of each of the two categories of financial security. In this article, we determine determine the characteristics of the development of financing of digital competitiveness tools for countries aimed at leading economic results and countries focused on the implementation of the UN SDGs. To achieve this goal, the following tasks have been set: to determine the digitalization tools that have received priority funding and development for countries with advanced and sustainable development; to formulate the features of financing within the framework of the two indicated directions of development of the economy of states.

2

Materials and Method

The development of digitalization financing problems in different economic systems of states was dealt with by Cheng et al. (2022), Heo and Seo (2021), Osifo (2018), Pérez-Morote et al. (2020), Saleem et al. (2020) and others. Given the actualization of the research problem, there is a need to highlight the main provisions of financial support for two categories of economies (advanced growth and sustainable development), which shows a certain fragmentation or, in some cases, a generalizing nature of the listed studies. The study is associated with the use of some methods that contribute to the solution of the identified problems. Using the method of indirect data identification, the characteristics of financial security (their intensity) were determined, information about which is represented in the rating reports. The method of direct identification of information made it possible to single out the studied characteristics in terms of theoretical and empirical materials. Statistical analysis and comparative analysis were used, respectively, to determine and compare the actual data on the development of digitalization tools due

Table 1 Rating of advanced development economies by the level of financial support of digitalization tools for 2020–2021

Country

to financing and indicators of advanced development of the economy and sustainability of development.

3

Results

Let us consider the ranking of countries with advanced economic growth by the level of financial support of digital competitiveness tools (Table 1). It should be determined that the rating of ICT financial support is selected according to the digitalization tool that had the highest rating from the state. The instruments under study will be identified in the work as follows: • • • • •

indicator indicator indicator indicator indicator

a—World robots distribution; b—Use of big data and analytics; c—E-Participation; d—Cyber security; e—E-Government.

Based on the results of the analysis (Table 1), we state that at the current stage (2020–2021), six rapidly developing countries of the world are among the main countries with advanced economic development. With their high economic rating (all of them were among the twenty leading countries in terms of GDP in 2021), we note the fact that India, Brazil, Mexico and Indonesia have seen a decrease in GDP in 2020 compared to 2019. During this period, China and Saudi Arabia experienced an increase in this indicator. This decrease in economic growth is due to the impact of the COVID-19 pandemic, which also negatively affected many developed countries. Despite a certain decline in GDP in the four countries, they continued to maintain high economic positions. This is especially true for India, which in 2021 is the same as in 2020, continued to stably occupy the 6th position in the world ranking for this indicator. This fact, in our opinion, is

2020 GDP rating, rank

2021 Change in GDP volume, %, ±

China

2

4.1

India

6

− 5.9

ICT funding rating, rank

GDP rating, rank

Change in GDP volume, %, ±

ICT funding rating, rank

1(a), 8(b), 9 (c)

2

13.4

1(a), 9(c), 11(b), 12(d)

12(a)

6

10.7

12(a)

Brazil

12

− 22

12(a), 18(c)

12

13.9

18(a), 18(c)

Mexico

15

− 15.4

10(a)

15

19.7

9(a)

Indonesia

16

− 5.3

17(b)

16

8.5

27(a)

Saudi Arabia

21

12.8

2(d)

19

20.3

3(d)

Source Developed by the author from data IMD (2022), Statisticstimes (2022)

Financial Support of Digital Competitiveness for Sustainable and Advanced Economic Development

products of the chemical industry (OEC.world, 2022c). To protect production technologies in this industry, the state pays great attention to financing and using such a digitalization tools as cybersecurity. Let us analyze the ranking of the leading countries in the field of sustainable development in terms of the level of funding for digital competitiveness tools (Table 2). It turned out that the leading countries in the field of sustainable development in 2021 compared to 2020 also showed economic growth, and some of them (Finland, Denmark, the Netherlands, and Ireland) were able to achieve this growth during the difficult period of the pandemic in 2020. The above has been implemented mainly due to the high digitalization of the economy. The introduction of digital technologies in these countries assumed stable financial support, Finland and Belgium were able to maintain the level of competitiveness of this indicator, Denmark maintained the level of financial support for e-government, the Netherlands and Ireland improved the stability and quality of financial support in this area. Let us formulate the features of financial support for the digitalization of advanced economies and countries of sustainable development. Let us first of all dwell on the practices of financial support for digital technologies in the economy of China (a country with advanced economic growth). According to an empirical study (Cheng et al., 2022), such a funding priority for China’s digital competitiveness as industrial robots is funded by corporate capital. In recent years, high-tech industries that do not require state support, do not produce defence industry products, have received more financial freedoms and companies themselves provide funding in these areas. First of all, this applies to large industrial corporations. The highest level of robotization in the Chinese industry is observed in the export-oriented industries listed above. Regarding the financial support of such a tool as Big Data and Analytics, it should be noted that since 2019 it has been massively implemented by both large and medium and small

associated with a significant level of exports of goods and services, which amounted to 18.7% of GDP in 2019, 2020, and 20.8%—in 2021 (Worldbank, 2022b). Maintenance in 2019–2020 and the increase in the level of India’s exports in 2021 is due to the fact that in its structure, in addition to the products of the commodity market (refined oil 25.3 billion US dollars in 2021), there are products that have a high added value, namely: pharmaceutical products (provides a second place in terms of exports); jewellery; diamonds; rice (OEC.world, 2022b). Large-scale production of products with high added value, including medicines, which were in high demand during the pandemic in 2020, while overcoming its consequences in 2021, requires the use of modern technological equipment, and the transfer of most of the operations to the performance of robots machines. Accordingly, India is implementing a robotization tool to ensure the production of high-tech products that ensure the growth of exports and GDP. Regarding the two countries that were able to maintain rapid development both during the pandemic and in 2021, the following can be determined. The share of China’s exports in GDP showed stable growth, namely, in 2019 this figure was 18.4%, in 2020— 18.5%, and in 2021—20% (Worldbank, 2022a). The main components of China’s export are radio and television broadcasting equipment, computer equipment, office equipment components, integrated circuits for electronic equipment, and textiles (OEC.world, 2022a). Accordingly, the state exports high-tech products, the production of which requires financing and the use of various digital competitiveness tools. Namely, if in 2020 priority funding concerned robots in industry, electronic communications, and the use of Big Database tools, then in 2021 cybersecurity was added to these tools. Saudi Arabia was notable for the growth in the share of exports in GDP in 2021 (34.8%) compared to 2020 (26.2%) (Worldbank, 2022c). Such a rapid export development is associated both with the growth of commodity market products (oil) and with an increase in exports of high-tech

Table 2 Rating of countries for the implementation of the UN SDGs in terms of financial support for digitalization tools for 2020–2021

Country

2020 UN SDG ranking, rank

Finland

3

339

2021 Change in GDP volume, %, ± 1.2

Denmark

2

2.4

Belgium

11

− 2.5 − 10

ICT funding rating, rank

UN SDG ranking, rank

Change in GDP volume, %, ±

ICT funding rating, rank

4(e), 5(d)

1

10

4(e), 5(d)

1(e), 12(b)

3

11.5

1(e), 13(b)

24(a)

5

14.9

24(a)

Norway

6

6(b)

7

33.1

9(b)

Netherlands

9

0.4

20(b)

11

11.3

17(b)

14

6.7

18(b)

13

17

13(d)

Ireland

Source Developed by the author from data Cambridge University Press (2022), IMD (2022)

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V. K. Giraev et al.

companies (Saleem et al., 2020). The focus on the need to use this digitalization tool is due to the fact that medium and small businesses are integrating with large ones, and for effective interaction, it is necessary to be competitive, since large companies cooperate with flexible, adaptive participants. An example of such interaction is the large trading platform AliExpress.com (owned by Alibaba Group), within which small, medium-sized trading, trade and manufacturing enterprises sell their products at retail and small wholesale. At the same time, interaction with clients, the main trading platform is implemented using the specified Big Data and Analytics tool. Participants of the specified trading platform pay the costs of digital management based on this instrument within the framework of the number of transactions. It is noteworthy to consider the features of financing ICT for sustainable development on the example of the economy. In Finland, to achieve the UN SDGs within the framework of the main components (environmental, social and economic), such a tool as e-government is used, which is most popular at the level of regions, cities, municipalities (Heo & Seo, 2021; Osifo, 2018). The focus on territorial e-government management of sustainable development is largely due to the fact that the Finnish society and the business environment support this approach, actively participating in the life of communities using digital technologies (about 86% of residents and business entities consider it reasonable to introduce e-government, it’s functioning in the main areas of life in electronic form, as this reduces the cost of time, money for transport) (Pérez-Morote et al., 2020).

4

Discussion

During the study, the features of financing digital competitiveness tools that ensure sustainable development and faster economic growth were highlighted. We can note that these features (directions) can be adapted by states that are focused on maintaining one of the two categories of economic development and applied in general to improve the efficiency of functioning. Regarding financing in the context of corporate capital, there are always risks of loss of solvency for the state, although the assumption by the large business of obligations for the technological development of the economy relieves the government of the task of finding financial resources to ensure the development of the economy. In view of the above, the development of the direction of corporate financing of digitalization is promising for the conditions of a stable economy, not characterized by serious recessions, and a decrease in the purchasing power of buyers. Corporate financing is relevant for industries involved in the production (trade) of mass-market products that do not have a strategic or military purpose. The above will help protect

capital from state participation in the regulation of various areas of production and sales management. An important area of corporate financing is the integrated subjective distribution of financing volumes at the level of participants in the business environment. This approach is relevant for the conditions of electronic commerce on large trading platforms when there is a need for financial support for the management of such a tool as Big Data and Analytics. The implementation of the UN SDGs by states requires continuous interaction between the state at all levels of government (between the centre and territories, at the level of structural components), at the level of territorial government-business and territorial government-population. Such interaction is effectively carried out in countries where the digital literacy of society and business has been formed. The choice of such a digitalization tool is associated with the possibility of reducing the time spent on queues, the road, and saving transport costs is also relevant, which is especially important for large municipal, often hard-to-reach areas. Financing of e-government functions can be carried out both at the expense of the state and territorial budgets.

5

Conclusion

In conclusion of this study, we would like to note the dynamics of changes in the sources of financing of digitalization tools for different types of economic systems (developing countries demonstrating outstripping growth rates and developed countries with high achievements in achieving the UN SDGs). For example, countries with economies in transition, such as China, due to the achievement of higher financial freedoms, are implementing the development of corporate financing, including in the context of the subject direction of spending distribution (except for strategic industries, where a high level of state control remains). The implementation of corporate financing and its modifications suggests that market methods of managing the economy are increasingly being used in the global space, and direct administrative intervention by the state is decreasing. The abovementioned allows for increasing the level of competitive positions in the field of digital technologies, ensuring the development within the framework of selected economic models. It is worth noting the relevance and validity of the transition of sustainable development states to the use of digitalization of public administration both at the national and at regional and territorial levels. This approach is relevant for countries where there is no high digital divide, but, in our opinion, it can be implemented using financing with the involvement of foreign funds.

Financial Support of Digital Competitiveness for Sustainable and Advanced Economic Development

References Cambridge University Press. (2022). Sustainable development report. https://dashboards.sdgindex.org/rankings. Accessed November 04, 2022. Cheng, X., Lyandres, E., Zhou, K., & Zhou, T. (2022). Industrial robots and finance. https://papers.ssrn.com/sol3/papers.cfm? abstract_id=3736000. Accessed November 04, 2022. Heo, K., & Seo, Y. (2021). Anticipatory governance for newcomers: Lessons learned from the UK, the Netherlands, Finland, and Korea. European Journal of Futures Research, 9. https://eujournalfuturesresearch.springeropen.com/articles/https://doi.org/10.1186/s40309021-00179-y#citeas. Accessed November 04, 2022. IMD. (2022). World digital competitiveness ranking. https://www.imd. org/centers/world-competitiveness-center/rankings/world-digitalcompetitiveness/. Accessed November 04, 2022. OEC.world. (2022a). China. Profile Country. https://oec.world/en/ profile/country/chn. Accessed November 04, 2022. OEC.world. (2022b). India. Profile Country. https://oec.world/en/ profile/country/ind. Accessed November 04, 2022. OEC.world. (2022c). Saudi Arabia. Profile Country. https://oec.world/ en/profile/country/sau. Accessed November 04, 2022. Osifo, O. C. (2018). Examining digital government and public service provision: The case of Finland. In 41st International Convention on

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Information and Communication Technology, Electronics and Microelectronics (pp. 1342–1347). Pérez-Morote, R., Pontones-Rosa, C., & Núñez-Chicharro, M. (2020). The effects of e-government evaluation, trust and the digital divide in the levels of e-government use in European countries. Technological Forecasting and Social Change, 154. https://www. sciencedirect.com/science/article/pii/S0040162519313150. Accessed November 04, 2022. Saleem, H., Li, Y., Ali, Z., Mehreen, A., & Mansoor, M. S. (2020). An empirical investigation on how big data analytics influence China SMEs performance: Do product and process innovation matter? Asia Pacific Business Review, 26(5), 537–562. Statisticstimes. (2022). Projected GDP ranking. https://statisticstimes. com/economy/projected-world-gdp-ranking.php. Accessed November 04, 2022. Worldbank. (2022a). Exports of goods and services (% of GDP)— https://data.worldbank.org/indicator/NE.EXP.GNFS.ZS? China. locations=CN. Accessed November 04, 2022. Worldbank. (2022b). Exports of goods and services (% of GDP)— https://data.worldbank.org/indicator/NE.EXP.GNFS.ZS? India. locations=IN. Accessed November 04, 2022. Worldbank. (2022c). Exports of goods and services (% of GDP)— Saudi Arabia. https://data.worldbank.org/indicator/NE.EXP.GNFS. ZS?locations=SA. Accessed November 04, 2022.

Marketing Mix of the Digital Competitiveness of the Economy as the Basis of Its Sustainable and Advanced Development Shamil M. Tagirov , Zalmu K. Omarova , Napisat I. Gazalieva , Zaur Z. Omarov , and Ibragimkhalil C. Askhabaliev

Abstract

1

The objective of this paper is to study marketing mix of the digital competitiveness of the economy as the basis of its sustainable and advanced development. The research objects are the top countries by the ranking of digital competitiveness. The methods of identification, evaluation, comparative analysis, and expert evaluations are used to substantiate the main conclusions and results of the research. We substantiate the existing arguments in the elaboration of marketing mix of digital competitiveness for sustainable and advanced development. These are arguments are not extensive in the existing literature, which makes it expedient to study this issue by the example of one of the leading countries in the sphere of digitalisation. Keywords

.

.

.

Marketing mix Digital competitiveness Sustainable development of economy Advanced development of economy JEL Classification

F12

. . Q01

M31

S. M. Tagirov (&) Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected] Z. K. Omarova State Budgetary Institution RD “Center for Continuous Professional Development of Teachers”, Makhachkala, Russia e-mail: [email protected] N. I. Gazalieva Dagestan State University, Makhachkala, Russia Z. Z. Omarov . I. C. Askhabaliev Makhachkala Branch of the Moscow Automobile and Road Technical University (MADI), Makhachkala, Russia

Introduction

Knowledge acquires the role of the main production factor, which is used to generate a product that is different compared to previous stages—new knowledge (also, the intellect becomes the main production force due to which it is created). In other words, a creative individual becomes the main production force. Only a creative individual can produce the main resource of the information economy. Besides, individuals with high qualifications, i.e., knowledge, become the recipients of a new type of income—intellectual rent. In the context of the transition to a new socio-economic formation, international marketing—as the modern philosophy of business—must propose efficient tools of influencing the market participants under the conditions of the increase of global competition and react, in a timely manner, to the quick changes of the macro-environment. Marketing assets could become such a universal tool. Over 30 years of evolution, the approaches to defining the notion, structure, and role of marketing assets underwent multiple changes. The level of digital competitiveness is measured among countries of the world. This ranking is based on determining the level of implementing digital technologies in the national economy and the government support for this implementation. The development of digital competitiveness and marketing mix in this direction implies the necessity to combine the main directions of marketing in the sphere of digital competitiveness.

2

Materials and Method

Taking into account the differences in the scholars’ views of the identification of their key characteristics, these concepts could be divided into three independent groups. The first group would include the authors of Kotler (2011), Kotler and Armstrong (2012), Oman Chamber of Commerce and Industry (OCCI) (2016), which noted a high strategic status

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_67

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of marketing assets during the formation of operational and long-term marketing programmes. Another group of scholars identified the absence of the material form as one of the key peculiarities of marketing assets. Alternative views are presented in the works of well-known classics of marketing (Dojl', 2001; Srivastava et al., 1998). In these works, the basis of the generation of marketing assets is intellectual capital. The term “marketing mix” was first introduced in 1953 by Neil Borden (based on the works of James Culliton). According to the most widespread treatments, marketing mix is the totality of marketing means, a certain structure of which ensures the achievement of the set goals and solution of marketing tasks. The number of these tools is large (Singh, 2012). McCharty (1960) suggested classifying them into four groups: product, price, place, and promotion. In the literature sources, this approach was called the four Ps (Product, Price, Place, Promotion). Marketing mix unifies four main elements: product, process, place, and promotion. Meffert (2009) said that the problem of combining these tools for a company implementing the policy of sales is connected to different theories. In fact, the traditional theoretical basis as for implementing activities on managing the process of marketing uses the concept of marketing mix (Festa et al., 2016). The formulation of marketing mix measures depends on the character of the organisation’s activities and the character of the target market. It should be compiled in such a way so that the organisation could satisfy the needs and desires of its customers (Oman Chamber of Commerce and Industry (OCCI) 2016). The concept of the marketing mix works as a tool that is used by an organisation for survival in a competitive environment. This concept is controlled by the organisation and consists of four elements—product, price, place, and promotion (Owomoyela et al., 2013). The organisation must have a data base of its customers for determining the most effective marketing mix given the macro- and micro-environment of the organisation. The 4 Ps are considered to be a coordination centre in the creation of the marketing structure within the organisation by providing quality products with affordable prices in the required place (Ho & Hung, 2008). Despite a rather large research framework on marketing mix in various spheres of economic development, not many works are devoted to marketing mix of digital competitiveness or marketing mix of economy’s digital competitiveness.

3

Results

Modern marketing mix contains all measures implemented by a company for the creation and increase of demand for their products. This is planning and development of

products, provision of pricing policy, formation of the channels of product distribution, information support of products, creation of trademarks and brands, creation of packaging (Berens et al., 2005), and development and support of mutually profitable relations with partners, customers, etc. As a universal marketing tool, marketing mix is the key to almost any market. In 1960, for the purpose of training of skilled personnel, E. J. McCharty synthesised marketing mix of such parts as product, price, placement, and promotion, creating the 4 Ps model (McCharty, 1960) (Fig. 1). Other studies used the same structure in other countries (Ibidunni, 2011). Another type of marketing strategy is the 7 Ps model (product, price, promotion, place, people, process, and physical evidence). The 7Ps model was developed by McCharty (1960) and published in his book “Basic Marketing: A Managerial Approach” (1960). Later, the 7 Ps was supplemented with another, eights, P —perceptual psychology. Thus, the 8 Ps concept emerged. In the 8 Ps, perceptual psychology means psychological perception of the service by consumer. These models are a simplification of the initial concept of N. Borden, who considered 12 elements of marketing mix. C. Grönroos showed that marketing mix and the 4 Ps model are a definition of marketing that is oriented at product, not market (Grönroos, 1989). Especially in the sphere of marketing services and industrial marketing, the 4 Ps model often does not cover all resources and types of activities and processes that take place in the interrelations between company and buyer at different stages of the product’s life cycle. When implementing marketing mix, it is necessary to take into account the fact that the dominating tools must be the tools aimed at market segments and target groups, i.e., market participants that are important for the company (Sashi, 2012). Thus, optimal marketing mix is a combination of marketing tools that ensures the achievement of the set goals with the rational use of the current assets of the marketing budget. The relative significance of each separate tool of marketing mix depends on different factors: type of organisation, type of product, or behaviour of buyers (Owomoyela et al., 2013). The success of marketing mix is determined by the quality of management, especially its creative approach and the sense of the market. From the moment of its emergence, the 4 Ps concept became very popular and turned into the basic or even main element of the theory of marketing and practical marketing activities (Latif & Abideen, 2011). In the process of the evolution of the marketing theory, some marketing researchers tried to expand the content of the 4 Ps, while others criticised it. There are four elements of marketing mix that are the controlled tools of marketing

Marketing Mix of the Digital Competitiveness of the Economy … Fig. 1 Marketing mix—the 4 Ps concept. Source Built by the authors based on Owomoyela et al. (2013)

345

Product

Promotion

Target market Price

Placement

mix (product, price, place, and promotion). All other deviations from these four elements disturb the integrity and unity of the concept and cannot be considered together with the “classic: elements of marketing mix” (Ibidunni, 2011). Considering the digital competitiveness of the country as the object of evaluating the marketing mix model, it is possible to distinguish isolated aspects of the digital competitiveness that correspond to each P element (Table 1). Analysis of marketing mix of country’s digital competitiveness in terms of the 7 Ps allows evaluating the relative significance of the elements (R P = 1.0) (Table 2). Thus, marketing mix of the digital competitiveness of country has the following specific features (Goi, 2009): Analysing the digital competitiveness of a country with the use of marketing tools, it is necessary to take into account that large importance belongs not to natural but artificial and organisational factors of development, e.g., innovative approaches to the organisation of a country's digital activity. Accordingly, these factors will increase competitiveness, so special attention should be paid to them (Barlett et al., 2001). Marketing mix is used in the prevailing number of countries from the top 10 of the Digital Competitiveness Ranking. Marketing mix 7 Ps of the digital competitiveness of the economy is used in China, Brazil, Argentina, Saudi

Table 1 Marketing mix of the digital competitiveness of country (7 Ps)

Arabia, Turkey, Indonesia, Canada, Italy, France, and South Korea. The main task of marketing mix of the digital competitiveness of the economy is increasing the level of attractiveness of digital resources. Marketing mix is also the basis for the joint work of all participants of the digitalization market.

4

Conclusion

A study of the development of marketing mix of the digital competitiveness of the economy as the basis of its sustainable and advanced development was performed. In the process of using marketing mix, the dominating tools should be the tools aimed at market segments and target groups—i.e., participants of the market that are important for the company. The optimal marketing mix is a combination of marketing tools that ensures the achievement of the set goals with the rational spending of the existing assets of the marketing budget. The success of marketing mix is defined by the quality of management, especially its creative approach and the sense of the market. There is a mutual dependence between the digital competitiveness in the market and the marketing mix concept. This stimulates the growth of their competitive advantages in

Product (P1)

Type, category, assortment, and nomenclature of provision of digital services

Price (P2)

Price, level of discounts, payment, accessibility of digital services

Place (P3)

Placement, accessibility of digital adaptation in the country

Promotion (P4)

Advertising and propaganda

People (P5)

Qualification and skills

Physical evidence (P6)

Essence and structure of digital adaptation

Process (P7)

National policy of digital adaptation

Source Compiled by the authors based on Festa et al. (2016)

Table 2 Relative significance of the elements of the 7 Ps

Pi

P1

P2

P3

P4

P5

P6

P7

Significance

0.20

0.15

0.10

0.10

0.25

0.8

0.12

Source Compiled by the authors based on Owomoyela et al. (2013)

346

the digitalisation market. A further perspective of research is the study of the competitive advantages of a country’s digitalisation strategy.

References Barlett, J. E., Kotrlik, J. W., & Higgins, C. C. (2001). Organizational research: Determining appropriate sample size in survey research. Information Technology, Learning and Performance Journal, 19 (1), 43–50. Berens, G., Riel, C. B. V., & Bruggen, G. H. V. (2005). Corporate associations and consumer product responses: The moderating role of corporate brand dominance. Journal of Marketing, 69(3), 35–48. Dojl’, P. (2001). Marketing, orientirovannyj na stoimost’ [Value driven marketing] [Transl. from Eng in: Ju. N. Kapturevskiy (Eds)] (480 P). Piter. Festa, G., Cuomo, M. T., Metallo, G., & Festa, A. (2016). The (r) evolution of wine marketing mix: From the 4Ps to the 4Es. Journal of Business Research, 69, 1550–1555. Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal of Marketing Studies, 1(1), 2–15. Grönroos, C. (1989). Quo vadis marketing? Toward a relationship marketing paradigm. Journal of Marketing Management, 10(5), 347–360. Ho, H. F., & Hung, C. C. (2008). Marketing mix formulation for higher education: An integrated analysis employing analytic hierarchy process, cluster analysis and correspondence analysis. International Journal of Educational Management, 22, 328–340.

S. M. Tagirov et al. Ibidunni, O. S. (2011). Marketing mix as tools for achieving competitive advantage in Nigerian market place: Multi-national and indigenous companies in perspective. Journal of Marketing Development and Competitiveness, 5, 81–94. Kotler, P. (2011). Philip Kotler’s contributions to marketing theory and practice. In N. K. Malhotra (Ed.), Review of marketing research: Special issue—Marketing legends (pp. 87–120). Kotler, P., & Armstrong, G. (2012). Marketing: An introduction (11th ed., pp. 29–42). Emerald Group. Latif, A., & Abideen, Z. U. (2011). Effects of television advertising on children: A Pakistani perspective. European Journal of Economics, Finance and Administrative Sciences, 30(4), 38–49. McCharty, E. J. (1960). Basic marketing: A managerial approach. Irwin. Meffert, H. (2009). Interaction marketing. Concept. Strategies. Efficiency. Publishing House Peter. Oman Chamber of Commerce and Industry (OCCI). (2016). Research, studies and working papers (OCCI directories). http://www. chamberoman.om/economicinformation/research-studies-workingpapers/. Accessed March 01, 2022. Owomoyela, S. K., Oyeniyi, K. O., & Ola, O. S. (2013). Investigating the impact of marketing mix elements on consumer loyalty: An empirical study on Nigerian Breweries Plc. Interdisciplinary Journal of Contemporary Research in Business, 4, 485–496. Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management Decision, 50, 253–272. Singh, M. (2012). Marketing mix of 4P’s for competitive advantage. Journal of Business and Management, 3(6), 40–45. Srivastava, R. K., Shervani, T. A., & Fahey, L. (1998). Market-based assets and shareholder value: A frame work for analysis. Journal of Marketing, 62(1), 2–18.

Human Resources Management in the Knowledge-Intensive Model of Digital Competitiveness: Advantages for the Sustainable Development of Economy Khadizhat M. Khadzhalova , Zaira Z. Abdullaeva , Pirmagomed G. Abdulmanapov , and Lyudmila A. Borisova Abstract

Keywords

This paper analyses the main tendencies in the sphere of human resources management under the conditions of the knowledge-intensive model of digital competitiveness. The quick transformation of digital technologies and economic and social conditions raises the issue of the reconsideration of the important aspects of human capital management. This includes not only the increase of requirements to company employees due to the implementation of high-tech products but also the change as a response to new requirements of the business model of HR management. HR managers must have skills with modern technologies and transform the basic HR processes, with a new approach to personnel selection, talent management, corporate training, etc. The transition to working with personnel in the digital form includes a lot of options of the interaction between employers and employees, as well as platforms and tools for building flexible organisations and creating jobs of a new type. Automatisation, intellectualisation, and cognitive systems expand the capabilities of labour resources, change the approaches to HR planning, and raise the need for new HR competencies. More and more companies offer products and services of digital technologies in the sphere of human capital management.

Human resources Knowledge-intensive model Digital competitiveness Sustainable development Economy

K. M. Khadzhalova (&) . Z. Z. Abdullaeva . P. G. Abdulmanapov Dagestan Federal Scientific Center of the Russian Academy of Sciences, Makhachkala, Russia e-mail: [email protected] Z. Z. Abdullaeva e-mail: [email protected] L. A. Borisova Dagestan State University of National Economy (DSUNE), Makhachkala, Russia

..

..

JEL Classification

D83

1

. . . E24

J24

O15

Introduction

Modern organisations are under a strong influence of digital competitiveness—at different levels and to a different extent. Digitalisation has a different effect on all processes within an organisation and external concerned parties. In this essence, digitalisation is a process of primary importance for the economy and society. The modern economy has been converted into a digital knowledge-based economy. In this economy, knowledge is a non-material asset which improves the production efficiency and ensures the economic advance. The transition to knowledge and the digital domain is an essential problem for the global community and the primary goal on the way toward the Sixth Technological Mode, the primary areas of which include such technologies as alternative energy, nanotechnologies, global telecommunication networks, biotechnologies, cognitive technologies, AI-based systems, etc. (Hascher et al., 2021). Nationwide education and occupational training are the vital values of the country’s population and the basis of the national advance as well as political and economic stability. Refinement of the higher education system, which involves the significant improvement of its contents and functions, envisages the establishment of a new model of the university, which is reflective of the specific features of the contemporary state of national socioeconomic development and is in line with the tasks of the knowledge economy. The

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_68

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academic community has been focusing its attention on the study of the functional model of the university over the recent decades. Changes in the factors of external environment have given rise to new functions of universities and the entire educational system. The essence, goals, and tasks of a university and its establishment as a social institution, which changes along with the cultural and socio-economic development of society, are the scope of research for many Russian scholars. This results in the emergence of new forms of universities with a particular set of functions: corporate universities, innovative universities, entrepreneurial universities, as well as online universities and virtual universities.

2

Methods

In this paper, human resources management in the knowledge-intensive model of digital competitiveness is analysed with the help of the data received during a survey. The processes of HR management, as well as technologies that ensure them, are not separate spheres. This is connected to the process of a comparative analysis of knowledgeintensive digital competitiveness in two isolated government sectors (Ignat, 2020). The comparative analysis raises transparency and efficiency after becoming a public domain. The employees of postal services and universities were the respondents of the survey. Postal services use digital technologies but have a small number of employees. Universities also use digital technologies but have a larger number of employees.

3

Literature Review

According to some researchers, knowledge-intensive digital technologies change a lot of organisational processes and structures, apart from the impact on the interactions between various concerned parties of economic subjects (Fischer et al., 2020; Mizintseva & Gerbina, 2017). During the intensive use of digital technologies, companies test new methods of the search for knowledge, make decisions, generate data, and develop their strategies. This is even more intensive in the sphere of knowledge, given that knowledge is a unique resource of companies’ competitiveness (Nonaka & Teece, 2001). Lanzolla et al. (2021) state that digital technologies have a deep impact on the search and recombination of knowledge. Digital technologies allow companies to be more perceptive to the development of the innovative process, which creates access to new external knowledge (Torres & Sidorova, 2019). This will require additional efforts in the research and use of knowledge,

regardless of the fact whether it is new or existing knowledge.

4

Results

Development of the new knowledge-based digital economy is highly dependent on hi-tech and knowledge-intensive industries, which rely on nano- and bio-technologies, electronics, robotics, and energy efficiency. These fields have become the drivers of efficiency, turning basic technologies into knowledge-based technologies (Arntz et al., 2016). The role of science, R&D, and knowledge-based technologies in the global economy has increased over the past few years. In 2019, the world’s total research & development costs were $2172.1 billion; 60% of this amount accounted for three countries—the US, Japan and China. Like in 2018, Russia was ranked 10th on this list, with research & development costs to the amount of $38.54 billion (Table 1). In 2018, according to the pattern of internal research & development expenditures, the primary goals of the scientific and technological development included biological sciences (32.4%), energy efficiency, energy-saving technologies, nuclear-power engineering (27.5%), and transport and space systems (15.1%). In 2018, 66.2% of R&D expenditure was financed by the government. The higher education sector is a sector of Russian science that is developing very intensely. Its annual growth rates are very high. As for the entrepreneurial sector, its organisations are stakeholders of the results of R&D, so it is necessary to attract large business structures to finance innovations. The development of small innovative businesses which form the basis of innovative ideas in developed economies, is of paramount importance. Commercially attractive ideas can be put into life

Table 1 The main indicators of high-tech and knowledge-intensive sphere in Russia in 2012–2018, % Year

Share of knowledge-intensive products in GDP, %

R&D expenditure, % of GDP

2012

19.7

1.01

2013

20.3

1.03

2014

21.1

1.03

2015

21.8

1.07

2016

21.3

1.1

2017

21.6

1.1

2018

21.7

1.11

2019

21.3

–

Source Compiled by the authors based on Gorodnikova et al. (2020)

Human Resources Management in the Knowledge-Intensive …

of during the integration of science and innovative entrepreneurship, i.e., in the framework of universities. In the environment of the knowledge-based digital economy which is different from the former socio-economic models due to such characteristic features as the development of education, science, and technologies, their integration and commercialisation processes, labour intellectualisation, internationalization and globalisation, as well as the development of web structures and the ICT, higher education modernisation process has changed its essence and contents in accordance with the modern economic realities. It should be noted that knowledge-intensive digital competitiveness allows the HR management department in an organisation to develop reliable strategies of planning the succession by determining and reconsidering the most important roles and creating the plans of actions in unexpected circumstances, with the use of planning based on scenarios, instead of the traditional planning of personnel management. Digital transformation of the function of personnel management is predetermined by the implementation of such technologies like artificial intelligence, virtual reality, alternate reality, and blockchain. It is necessary to distinguish the main elements that will characterise the perspectives of human resources management under the conditions of digital competitiveness. These are as follows: • Consumerisation of the system of human resources management (employees use the processes of personnel management as consumers, not just as employees); • Digital dialogue (establishment of digital dialogue between employees and managers); • Analytics (in-depth analysis, which provides information on the employees’ actions to managers); • Influence on goal-setting. The use of digital tools positively influence the optimisation of work processes and allows for quick and effective achievement of an organisation’s goals (Nagibina & Schukina, 2017). The main positive aspects of implementing the knowledge-intensive economy are as follows (Torres & Sidorova, 2019): • Growth of the speed of managerial decision-making; • Increase of the audience’s loyalty as a result of using AI and big data; • Increase of the level of digitalisation and reengineering; • Expansion to new markets.

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The main advantage of digital competitiveness is that it ensures the outstanding functions of analysis and accounting of employees and allows measuring the efficiency and forecasting the actions of employees that previously were difficult to register, thus significantly improving the interaction and cooperation with HR specialists and company management (Benedikt & Osborne, 2017).

5

Discussion

The changes in the socioeconomic paradigm, globalisation and internationalization processes, as well as the establishment of the knowledge-based digital economy set new requirements to higher education and charge the universities with a task to enable the creation of new ideas, knowledge and technologies as well as their transfer to the manufacturing industry and their use in co-operation with the companies of the high-tech economic sector. Universities have become an hub for the interconnection of government authorities and industry, knowledge transfer, and generator of new knowledge and technologies; they are the drivers of opportunities and the development strategy of a country and the economic competitiveness. Therefore, the educational system should focus on the training of skilled innovative personnel. As for digital transformation, it led to substantial changes to the organisation of work in companies. This change is also reflected in the change of the role of human resources management in measuring the employees’ efficiency. The use of digital technologies allows creating a system of efficiency management that is oriented at the assessment of the achieved results of employees, not at the time spent for work. This also implies the transformation of the system of employees’ evaluation and its harmonisation with new circumstances and needs that appear due to the implementation of the process of digital transformation in a company. The use of big data analytics and AI for the digitalisation of jobs led to the changes in the organisation of the work environment and the implementation of modern methods of work. The transformation of human resources management, caused by the use of modern digital technologies, also influenced the general effectiveness of business. The processes of digital competitiveness in organisations led to the decrease in the need for physical and recurrent work operations and created an increased need for a skilled workforce. The use of digital technologies changed the methods of selection and hiring of personnel. Digital competitiveness led to radical changes in the organisation of labour and the functioning of companies at all levels.

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Conclusions

It could be concluded that the key tendencies in human resources management are the use of HR analytics and digital technologies. The digital economy changes the essential HR processes: it streamlines the mass employment procedures and the corporate training process; furthermore, it opens the potential in terms of management of human resources efficiency. Besides, the digital technological expansion drives up demand for digital skills, setting new trends in education. Thus, companies that can identify the future methods and implement new digital solutions, particularly in HR, in line with them, obtain a distinct competitive advantage.

References Arntz, M., Gregory, T., & Zierahn, U. (2016). The risk of automation for jobs in OECD countries: A comparative analysis (Vol. 189, p. 34). OECD Social, Employment and Migration Working Papers. Benedikt, C. F., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 114(C), 254–280. Fischer, M., Imgrund, F., Janiesch, C., & Winkelmann, A. (2020). Strategy archetypes for digital transformation: Defining meta objectives using business process management. Information &

Management, 103262. https://doi.org/10.1016/J.IM.2019.103262. Accessed March 03, 2022. Gorodnikova, N. V., Gohberg, L. M., & Ditkovsky K. A. (2020). Statistical collection (320p). National Research University Higher School of Economics. Hascher, T., Beltman, S., & Mansfield C. (2021). Teacher wellbeing and resilience: Towards an integrative model. Educational Research, 63(4). https://doi.org/10.1080/00131881.2021.1980416. Accessed March 03, 2022. Ignat, V. (2020). Digitalisation and the global technology trends. IOP Conference Series: Materials Science and Engineering, 227, 012062. Lanzolla, G., Pesce, D., & Tucci, C. L. (2021). The digital transformation of search and recombination in the innovation function: Tensions and an integrative framework. Journal of Product Innovation Management, 38(1), 90–113. https://doi.org/10.1111/ jpim.12546. Accessed March 03, 2022. Mizintseva, M. F., & Gerbina, T. V. (2017). Knowledge management: A tool for implementing the digital economy. Scientific and Technical Information Processing, 45(1), 40–48. https://doi.org/ 10.3103/S0147688218010094. Accessed March 03, 2022. Nagibina, N. I., & Schukina, A. A. (2017). HR-Digital: Digital technologies in human resource management. Science Study [Naukovedenie], 9, 1(38). https://naukovedenie.ru/PDF/ 24EVN117.pdf. Accessed March 03, 2022. Nonaka, I., & Teece, D. J. (2001). Managing industrial knowledge: Creation, transfer and utilization. Sage. Torres, R., & Sidorova, A. (2019). Reconceptualizing information quality as effective use in the context of business intelligence and analytics. International Journal of Information Management, 49, 316–329. https://doi.org/10.1016/j.ijinfomgt.2019.05.028. Accessed March 03, 2022.

Comparison of the Approaches to the Provision of the Digital Competitiveness from the Positions of Sustainable and Advanced Development of Economy Albina O. Ramazanova , Larisa A. Gadzhimuradova , Muslimat H.-H. Yusupova , Arslan A. Minatullaev , and Nazira I. Magomedova Abstract

1

Sustainable digital competitiveness makes countries not only satisfy the needs of the current generation bus also support and even increase the national wealth in the future, without depletion of natural and social capital. This paper considers the global and configurational approaches to the provision of digital competitiveness, which allows determining at which necessary and sufficient conditions digitalisation stimulates the achievement of economy’s better sustainable development. Switching attention from pure effects to the analysis of the configuration improves the understanding of international differences in sustainability through the consideration of the digitalisation factors’ unifying to strengthen the influence of digital competitiveness in different countries. Keywords

.

.

.

.

Digital competitiveness Global approach Financial sustainability Advanced development of economy Tendencies JEL Classification

E44

. . . . F36

R37

F38

Q01

A. O. Ramazanova (&) Makhachkala Branch of the Moscow Automobile and Highway State Technical University (MADI), Makhachkala, Russia e-mail: [email protected] L. A. Gadzhimuradova . A. A. Minatullaev . N. I. Magomedova Dagestan State University of National Economy (DSUNE), Makhachkala, Russia M. H.-H. Yusupova Dagestan State University (DSU), Makhachkala, Russia

Introduction

As for the approaches to the provision of digital competitiveness in different countries, it is important to understand that it is used differently, depending on the characteristics and expectations of its key participants. Let us consider the main representatives that use the global approaches to the provision of digital competitiveness (Paiola & Gebauer, 2020). Private companies treat digitalisation as a means of conquering new markets with one strategic purpose—survival in the future. Digital competitiveness allows companies to increase their growth at least by 5%. Government companies are actually government tools. They have a large budget for developing technologies and investments for accelerating the implementation of tested technologies and moving them to the mass market. Within digitalisation, they implement mainly government programs. Startups are active participants in this process. They create new ideas and technologies. Some of them might reach great success and become technological giants. Another key participant of digitalisation is the public authorities (at the municipal, regional, or federal levels). The goal is to attract in a city, region, or country a large number of prospective individuals and companies, to improve the entity’s ranking and become more profitable and attractive (Graham et al., 2021). In Russia, the role of the government is very strong. Moscow is a vivid example of digitalisation at which the city’s administration was able to provide one entry point for all citizens—the platform Mos.ru—and tries to help businesses in the dialogue with technological companies through different initiatives. According to the configurational approach, the final goal of sustainable digital competitiveness is the development of a set of mechanisms and policies to raise the level of efficiency of nations, with a guarantee of the future generation’s satisfaction of its needs in the future. Over the recent decades, the digital revolution changed the society and economy and opened new opportunities and

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_69

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ways, which also changes the lives of people. Studies show that digital competitiveness might become an important factor in achieving sustainability. It led to the formation of new mechanisms for the preservation and promotion of natural resources, natural wealth, and well-being. Accordingly, it is proposed that countries develop programmes and take up initiatives on digitalisation to achieve the Sustainable Development Goals. However, it is necessary to study the key factors of sustainable competitiveness. Digital competitiveness, as a multi-dimensional phenomenon, could stimulate sustainable development. Digital transformation changes business models and production and distribution methods, as well as competition among companies (Zheng & Sivabalan, 2020). Digital technologies reduced the cost of entry to certain markets since platforms allow small companies to sell products to foreign customers and become “micro-transnational corporations”. Digitalisation also decreased the costs of expansion of distribution, production and advertising for new participants. For example, the accessibility of cloud computing services provides small companies with flexible access to substantial computing power without any investments in the physical infrastructure. This may allow innovative companies to grow and conquer their share of the market after bringing their product to the market, often with a small number of employees, small material assets, and limited geographical presence.

2

Methods

The following scientific methods are used in this paper: • Analysis during the study of components of the index of digital economy and society; • Graphical method of presenting the stage of development of the digital competitiveness level in ten most developed economies of the EU; • Comparison during the analysis of the main indicators of sustainable and accelerated economic growth.

3

Literature Review

Digitalisation and digital competitiveness are studied in a large number of Russian and foreign scholarly works. Digitalisation belongs to the “socio-technical process of using the digitised products or systems for the development of new organisational procedures, business models, or commercial offers” (Saarikko et al., 2020). Thus, digitalisation means a partial or full transformation of the elements of activity and business models of the firm’s value creation chain into digital platforms, with the help of new digital

technologies: cloud computing, robotics, AI, blockchain, 3D print, and the Internet of Things (Soto-Acosta, 2020). Digital technologies—websites, social networks, smartphones, platforms for content exchange, blockchain, technologies of automatization, etc.—allowed companies to make a path to effective participation in innovations, R&D, and conquer of new markets (Lupton, 2020). Still, companies have not yet realised the entire potential of digitalisation, and the COVID-19 pandemic stimulates the implementation of the latest technologies. Effah and Nuhu (2017) focus on the analysis of various indicators that are used to measure the activity on digitalisation. Five main levels, including the indicators of the digital economy, society, sphere, companies, and customers, were analysed. Studies show that digital competitiveness can become an important factor in achieving sustainability and created completely new mechanisms for the preservation and promotion of natural resources, national wealth, and well-being (Skliarov & Prokopov, 2019).

4

Results

National programmes and strategies for the development and promotion of digital technologies and digitalisation are developed and implemented at the present day. Official figures of the European Commission claim that there were more than 30 nationwide and regional branch-wise digitalisation initiatives in the EU member states as of year-end 2021. Germany was the first country which started the implementation of the Industry 4.0 Programme. Furthermore, Germany has been developing and implementing many other strategies and initiatives of similar form and direction, including Smart Networking Strategy, at the domestic level (Matt et al., 2019). The government of the Netherlands adopted a forwardlooking Smart Industry programme. Internet+, China’s national big-picture strategy, has outlined several key directions of further development of digital transformation in partnership with the production sector, agriculture, finance, and government institutions. A successful example is the initiative French Tech, which was developed in 2013. According to the survey of Ernst & Young in 2020, French Tech became the first technological ecosystem in the EU to attract almost EUR 5.4 billion. This is a joint project on the support and promotion of perspective innovative start-ups. According to the data of IoT-Analytics, we shall see the active development of digitalisation in the post-COVID world. Four directions will dominate in this process: digitisation at the company’s scale, access to remote assets, automatization of business processes, and cyber security (Analytics, 2022).

Comparison of the Approaches to the Provision of the Digital …

While before 2020 the leaders in digitalisation were countries of Europe and the USA, the balance of powers will change in favour of countries of East Asia and the Asia– Pacific region. Experts from IoT-Analytics predict the average annual growth rate of digitalisation of 29% in this region, while in Europe it will equal 21%, and in the USA— 23%. The DESI index (The Digital Economy and Society Index) is used as a means of evaluating the level of technological development of the European Union countries and the level of penetration of innovative technologies in society and economy. As can be seen from the 2021 DESI index, Denmark, Finland, Sweden, the Netherlands, Ireland, Malta, Estonia, Luxembourg, Spain, and Austria are the leaders by digital technologies’ development in the EU (Fig. 1). Digital economic development has allowed small and medium enterprises (SMEs) to move to the global level. This predetermines the special character of the third wave of globalisation and its inclusivity. SMEs can be efficient and competitive in case of extensive implementation of digital technologies and digital economic development (Manyika et al., 2021). The digital development level is measured by ranking according to the Digital Transformation Index (DTI), which is a milestone received with the help of comparative expert evaluations of companies (Andersson et al., 2021). Analysing the state of digital competitiveness in the EU, let us dwell on the distribution of the DTI coefficient by the sectors (Fig. 2). As for the specific features of the configurational and global approaches, the main advantage of the configurational approach to the provision of digital competitiveness is envisaging an in-depth analysis of an organisation’s business

Fig. 1 Arithmetic means of the values of DESI sub-indices for EU member states in 2021. Source Compiled by the authors based on The Digital Economy and Society Index (DESI) (2021)

0.7

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processes to discover the spheres of optimisation. In this particular case, digital transformation envisages the use of high technologies as the primary optimization tool. The key feature of using this approach is the need for a detailed analysis of processes, down to isolated manual operations. The drawbacks of this approach are as follows: • The high labour intensity of the execution of the states of this approach; • High requirements for the qualification and methodology. The basic advantage of the global approach to the promotion of digital competitiveness is that in the context of the current systems of management, their readiness for the effective functioning in case of an unexpected entrance of other participants in the market is important—which takes place in many spheres of industry. On the whole, the management of digital transformation is not only an intra-corporate or operational problem. On the contrary, it could be considered as a strategic and social problem, since, for example, the monopolistic power of digital platforms has a negative influence on final consumers.

5

Discussion

The intensive growth of the digital economy has been recently observed on a world-wide scale. This is the major driver of innovations, digital competitiveness, and sustainable economic growth across the globe. The digital economy’s key products are those products and services of the traditional economy that are provided through the computer equipment and involve digital systems. The main advantage in the above fact consists in the increased accessibility of

0.63

0.6

0.55

0.55 0.48

0.5

0.37

0.4 0.3 0.2 0.1 0 Connectivity

Human capital

Digital public services indices

Use of Internet services

Integration of digital technology

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A. O. Ramazanova et al.

Fig. 2 Distribution of the DTI coefficient by the sectors, as of 31.12.2021. Source Created by the authors based on Andersson et al. (2021)

certain markets of products and services for regular users, reduced transaction costs, as well as improved effectiveness and competitiveness. The specifics of the promotion of digital competitiveness lies in its relation to the on-demand economy, which envisages the access to goods and services at the right time rather than selling them. The advantages of the on-demand economy are presented below: • fast obtainment of necessary goods and services; • reduction of their cost for an end-consumer through the decrease in the number of intermediary companies.

6

Conclusions

Digital competitiveness allows organisations to perform transformations that conform to their comprehensive ambitions while remaining open to the future changes of the strategy. Eventually, they help develop adaptive business processes and technological architectures, which imply constant changes and reconfiguration in the face of constant failures and risks to ensure the compatibility for several possible options of the future. It is proposed that countries develop programs and undertake initiatives on digitalisation for the achievement of the Sustainable Development Goals.

References Andersson, P., Movin, S., Mähring, M., Teigland, R., & Wennberg, K. (2021). Managing digital transformation. Stockholm School of Economics Institute for Research (SIR).

Effah, J., & Nuhu, H. (2017). Institutional barriers to digitalization of government budgeting in developing countries: A case study of Ghana. Electronic Journal of Information Systems in Developing Countries, 82(1), 1–17. Graham, M., Hjorth, I., & Lehdonvirta, V. (2021). Digital labour and development: Impacts of global digital labour platforms and the gig economy on worker livelihoods. Transfer: European Review of Labour and Research, 23(2), 135–162. IOT Analytics. (2022). 10 IoT technology trends to watch in 2022. https://iot-analytics.com Lupton, D. (2020). ‘Better understanding about what’s going on’: Young Australians’ use of digital technologies for health and fitness. Sport, Education and Society, 25(1), 1–13. Manyika, J., Bughin, J., Lund, S., Nottebaum, O., Poulter, D., Jauch, S., & Ramaswamy, S. (2021). Global flows in a digital age: How trade, finance, people, and data connect the world economy. McKinsey Global Institute. Matt, C., Hess, T., & Benlian, A. (2019). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339–343. Paiola, M., & Gebauer, H. (2020). Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms. Industrial Marketing Management. Saarikko, T., Westergren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally conscious firm. Business Horizons, 63(6), 825–839. Skliarov, V., & Prokopov, O. (2019). Industry 4.0 and digitalization of the national measurement standards. Ukrainian Metrological Journal, 3. https://doi.org/10.24027/2306-7039.3.2019.182353. Accessed February 07, 2022. Soto-Acosta, P. (2020). COVID-19 pandemic: Shifting digital transformation to a high-speed gear. Information Systems Management, 37(4), 260–266. The Digital Economy and Society Index (DESI). (2021). International DESI. https://digital-strategy.ec.europa.eu/en/policies/desi. Accessed February 07, 2022. Zheng, P., & Sivabalan, A. S. (2020). A generic tri-model-based approach for product-level digital twin development in a smart manufacturing environment. Robotics and Computer-Integrated Manufacturing.

Advanced Development of Economies Based on the Digital Competitiveness: Consequences for the Balance and Financial Sustainability of the World Economic System Baktygul B. Esenalieva , Aida K. Karabekova , and Razet S.-A. Makkaeva

Abstract

1

In this paper, we generalise the analytical and methodological developments and rankings of international organisations to distinguish groups of indicators for the analysis of the ratio of advanced development of economies and the level of formation and development of digital competitiveness in countries of the world. It is proved that the components of the global rankings of economic development that define digital competitiveness in a country are such characteristics as the quality of learning, education and science, technological conditions, favourability of the legal framework, presence of the developed venture and financial market, digital literacy of the population, and readiness of business and government institutions for investing in the leading digital technologies. We also substantiate the correlation between the level of national economies’ development and the level of digital competitiveness. Keywords

.

. .

.

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Digital competitiveness National economies Financial sustainability Balance Tendencies Automatisation JEL Classification

D53

. . F12

O16

B. B. Esenalieva (&) . A. K. Karabekova Kyrgyz National University named after Zh. Balasagyn, Bishkek, Kyrgyzstan e-mail: [email protected]

Introduction

The growing digitalisation changes the actions and interactions of humans. One of the specific features of various digital transformations is the exponential growth of the volume of machine-readable information and digital data on the Internet. Such data are the basis of all quickly developing digital technologies: data analysis, AI, blockchain, the Internet of Things, cloud calculations and all Internet services, and they have become the fundamental economic resource. The COVID-19 pandemic accelerated the processes of digitalisation since more and more people continue their activities through online channels, e.g., for work, learning, communication, buying and selling, or entertainment. The data and flows of data—internal and international— can bring a lot of profit and help solve social problems, which are connected to the Sustainable Development Goals. These profits should be used and distributed fairly, for the creation of social value. The current process of digitalisation is connected to the imbalance of powers and inequality which should be reduced. The data is something larger than an economic resource since they are also connected to confidentiality and other aspects of human rights, as well as national security. This shows the necessity for a complex comprehensive approach to the development of policy on data. In the quickly changing world, economies and societies have to change their traditional models. Countries and supra-national organisations—e.g., the European Union— change their traditional economic landscape. The methods of measuring and the traditional tools cannot easily convey the situation in the digital world. Besides, the assessment of digital development and competitiveness of the economy cannot be performed with the use of only statistical data, which led to the development of various indices, which try to compare and rank the digital economies.

R. S.-A. Makkaeva Kadyrov Chechen State University, Grozny, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_70

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Methods

In this research, we use the general scientific methods: abstract-logical method and critical analysis for identifying the essence of the notion of “digital competitiveness”; correlation analysis for discovering the connection between the level of the development of national economies and the level of digital competitiveness. The research results, conclusions, and recommendations are substantiated with the help of a complex approach. The IMD World Digital Competitiveness Ranking, developed by International Institute for Management Development (IMD), provides a lot of valuable information. It focuses on the analysis and classification of countries by the level of their treatment and use of digital technologies as a factor of transformation of interrelations of government, population, and business, the changes in business models of companies, and life of society on the whole. According to the method, the countries are ranked by the level of digital competitiveness based on three groups of factors, with 3 sub-factors, and 51 criteria. These include indicators evaluating the development of educational and scientific potential, quality of the legal framework, accessibility of financial capital and technological conditions, and business’s ability to adapt to the changing environment. The top 5 competitive countries by the digital economy are the USA, Hong Kong, Sweden, Denmark, and Singapore. Thus, the USA is the leader by the factors of level of knowledge and readiness, and Singapore is by the level of the use of technologies (Table 1). Another important index is the Digital Adoption Index by the World Bank. It compares the level of digital adaptation of 180 countries by three groups of consumers of digital products and services—individuals, government organisations,

Table 1 Top countries according to the IMD Digital Competitiveness Ranking, change of position in 2020–2021 Country

2020

2021

USA

1

1

Hong Kong SAR

5

2

Sweden

4

3

Denmark

3

4

Singapore

2

5

Switzerland

6

6

Netherlands

7

7

Taiwan, China

11

8

Norway

9

9

Finland

10

11

Source Developed by authors with the use of Digital Competitiveness Ranking (2020, 2021)

and businesses. The general index is calculated as a simple average of three sub-indices that cover the analysis of technologies that are necessary for stimulating the development in the digital age, e.g., an increase in efficiency and acceleration of the growth of the business, expansion of the opportunities for the improvement of population’s well-being, an increase in effectiveness and accountability of provision of services to the government. The view of the digital economy development in the EU member states is formed primarily due to the Digital Economy and Society Index, which is prepared by the European Commission. Its components are five groups of factors in the following directions: • Connectivity (broadband communications development, mobile communications development, share of 4G coverage, cost of broadband communications); • Human capital (share of Internet users, development of ICT competencies of population, share of ICT specialists, and share of specialists in natural sciences and engineering); • Research & Development in ICT; • Integration of digital technology (the use of electronic document turnover, RFID, cloud services, etc.); • digital public services.

3

Literature Review

According to Weresa (2019) the digital age has shown a range of non-material assets that acquire a large value for the effective digitalisation and implementation of technologies that make this world digital (Weresa, 2019), though sustainable economic development in the digital age is still the main issue for reaching competitiveness (Radman & Belin, 2017). In recent years, there were a lot of studies that attempted to track the indicators of a country’s or groups of countries’ digital economy with the use of electronic indices. These studies often use the DESI index, as well as other indices, e.g., NRI. In 2016, DESI and NRI were used to compare the digital competitiveness of Latvia and other European countries (Vidruska, 2016). The authors tried to distinguish the aspects that required improvement and determine problems that had to be solved. Nagy (2017) focused on the interconnection between digital competitiveness and the economic development of society in Hungary and the comparison with similar indicators in Russia. Based on this comparison, the conclusions regarding the future tendencies of digital development were made (Bukht & Heeks, 2017).

Advanced Development of Economies Based on the Digital Competitiveness: …

4

Results

At present, the implementation of digital technologies is the main purpose of entrepreneurial activities. Transformations in the production processes of many economic spheres take place. For online stores, innovations are accompanied by the growth of sales and, accordingly, the growth of revenues (Fig. 1). The current information on buyers and successful sales of different categories of products allow the management to clearly build the strategy of sales and pricing. Thus, the level of digital competitiveness helps to increase an organisation’s profitability and create a more effective system of management. The ten largest markets of e-commerce are the markets of China, the USA, the UK, Japan, Germany, France, South Korea, Canada, Russia, and Brazil. According to the notion of “digitalisation”, the most “digital” economy in the world is the U.S. economy. 33% of the GDP of the USA is influenced by digital technologies, and 60% of the financial sector of the USA has been transferred to the digital basis, which makes the U.S. financial sector the leader of the

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global market of digital services. However, it is supposed that China could overcome the USA in 2022 (Fig. 2). At the same time, many countries face new problems in economic development based on digital competitiveness. As for the consequences for the balance and financial sustainability of the world economic system, it is possible to distinguish several opportunities: • growth of the level of labour efficiency; • reduction of the level of fraud; growth of the level of transparency and simplicity of operations; • automatization of production; • expansion of product sales channels. Attention should be paid to the economies of South Korea, Singapore, and Hong Kong. Together with other countries, such as Estonia, Taiwan, and the UAE, they are among the leaders in this index and demonstrate adaptability and institutional support of digital development. The USA also demonstrates great dynamics for the economy of such size and complexity, ranked second by digital evolution, after Singapore.

Fig. 1 Total volume of Internet sales in the world, $ trillion. Source Developed by authors with the use of Digital Competitiveness Ranking(2020, 2021)

Fig. 2 Forecast for digital markets B2C in the USA, China, and Europe, $ billion. Source Developed by authors with the use of European Statistics Service (2020)

900 800 700 600 500 400 300 200 100 0

2019

2020 USA

China

2022 forecast Europe

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China’s digital evolution is much higher compared to other countries, largely due to the combination of the growing demand and innovations. Indonesia and India are also strong members of this group, ranked 3rd and 4th by dynamics, despite their large economies. Large economies with high digital impulse—China, India, and Indonesia— could be an example for other developing countries, such as Brazil and Nigeria, which might want to accelerate their digital impulse soon. The analysis has shown that successful “breakthrough” economies prioritised the following aspects: 1. Improvement of access to mobile Internet; accessibility and quality for stimulating its wider implementation. 2. Strengthening of the institutional environment. 3. The attraction of investments in digital companies, financing of digital R&D and digital talents, and using digital applications to create new jobs. 4. Adoption of measures to decrease inequality in the access to digital tools depending on sex, class, ethnicity, and geographical borders.

5

Discussion

As of now, many countries set the goal of transitioning all key services for citizens and companies in the online mode by 2030. The digital competitiveness grew in the recent decade and especially accelerated due to the COVID-19 pandemic, during which digital interaction should have become a norm. The implementation of basic digital services moves forward (access to online forms, online registration, etc.), but the accessibility of more advanced services that use innovative digital technologies (such as AU, big data, robotics, etc.) still requires substantial investments. DESI tracks the online provision of public services, assessing countries by the possibility of performing each stage of the key services online.

6

Conclusions

To support sustainable economic growth and to ensure the growth rates of labour efficiency in economically developed countries and certain industrial countries, they develop and

implement new digital technologies, which increase the indicators of labour, in particular its efficiency, as compared to the traditional technologies. Digital technologies, which are the basis of the digital economy, affect the quality of the population’s life and ensure the country’s economic growth. The implementation of digital technologies in different sectors of the economy and levels of production leads to substantial economic profits, which are expressed also in the growth of GDP. The digital economy is of a larger scale and more mature in developed countries than in developing countries. The average share of the digital economy in developed countries’ GDP varies from 10 to 35%, while in developing countries—from 2 to 10% of GDP.

References Bukht, R., & Heeks, R. (2017). Defining, conceptualising and measuring the digital economy. Global Development Institute, SEED. Working Paper Series. No. 68. https://www.researchgate. net/publication/327356904_Defining_Conceptualising_and_ Measuring_the_Digital_Economy. Accessed January 31, 2022. Digital Competitiveness Ranking. (2020). IMD world competitiveness center. https://www.imd.org/wcc/world-competitiveness-centerrankings/world-digital-competitiveness-rankings-2020. Accessed January 31, 2022. Digital Competitiveness Ranking. (2021). IMD world competitiveness center. https://www.imd.org/wcc/world-competitiveness-centerrankings/world-digital-competitiveness-rankings-2021. Accessed January 31, 2022. European Statistics Service. (2020). Official website. https://ec.europa. eu/eurostat. Accessed January 31, 2022. Nagy, S. (2017). Digital economy and society. A cross country comparison of Hungary and Ukraine. Bulletin of Kharkiv National Technological University, Kharkiv Politech Institute of Economic Sciences, 46, 174–179. Radman, G., & Belin, A. (2017). Competitiveness in technology and innovation: How to keep on? International Journal of Digital Technology & Economy, 2, 45–56. Vidruska, R. (2016). The digital economy and society index and network readiness index: Performance of Latvia on European union arena. In New challenges of economic and business development– 2016. University of Latvia. Weresa, A. M. (2019). Technological competitiveness of the EU member states in the era of the fourth industrial revolution. Economics and Business Review, 5, 50–71. https://ideas.repec.org/a/ vrs/ecobur/v5y2019i3p50-71n5.html. Accessed January 31, 2022.

The Green Economy of the Future and the Prospects for Its Development Based on the Leading Digital Technologies Vladimir K. Spilnichenko , Alexandra V. Gridchina , and Irina V. Avvakumova

Abstract

1

A green economy is the practice of sustainable development through the support for public and private investment, for the purpose of creation of an infrastructure that stimulates social and environmental sustainability. The importance of a green economy lies in its facilitating economies to become more sustainable and low-carbon. Digitalisation has successfully manifested itself during the pandemic, allowing technology companies to cope with a part of the negative consequences of the crisis. During the pandemic, the importance of the technologies of increasing transparency, digital identification, monitoring, risk assessment and contactless economy has grown. Also, digitalisation influences the development of the green economy. The Green Deal is a large-scale European plan of action in the sphere of sustainable development and low-carbon transformation. About 1 trillion euros are to be spent on it in the next ten years. The main tasks of the green economy are the provision of zero net emissions and greenhouse gases emissions until 2050. Keywords

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Green economy Digital technologies AI Decarbonisation

.

Digitalisation

JEL Classification

Q55

. . . Q01

Q53

O30

V. K. Spilnichenko (&) Russian State University for the Humanities, Moscow, Russia e-mail: [email protected] A. V. Gridchina Moscow Polytechnic University, Moscow, Russia e-mail: [email protected] I. V. Avvakumova Plekhanov Russian University of Economics, Moscow, Russia

.

Introduction

According to Green Economy (n.d.), green economy “is defined as low carbon, resource-efficient and socially inclusive. In a green economy, growth in employment and income are driven by public and private investment into such economic activities, infrastructure and assets that allow reduced carbon emissions and pollution”. Recently, the concept of green economy was considered as the future of the world. This is because of the challenges humanity faces and will face in the future. Population of the earth is experiencing climate change, loss of biodiversity loss, continuing countries’ inequality, etc. These problems influence climate and the development of countries. A green economy can help to solve these problems. Adoption of the Green Deal means the European Union’s course toward full decarbonisation until 2050. The EU is planning to become the leader in the green race, reduce the dependence on imported energy sources and remain the economic centre that can set standards in new perspective markets. At present, most countries understand the importance of transitioning to more sustainable means of production and consumption. Many countries have performed concrete steps toward the ecologisation of the economy and an increase in environmental awareness. A wide coalition of supporters of using the crisis for the acceleration of the economic transformation to the green mode has formed in Europe. In April 2020, a range of countries of the EU backed green recovery and an increase in investment in renewable energy. The observations of the development of green technologies markets in different sectors and the level of creation of internal value, which is connected to different technologies, can show the gaps and opportunities for the programs of development of qualification. Big challenges, which appear due to this, are solved with the help of a set of recent European policies, which are linked to digitalisation and

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_71

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V. K. Spilnichenko et al.

transformation towards an innovative and sustainable society. As for the digital technologies that could be used for building and development a green economy, they include 5G networks, high-performance computing, quantum computing and quantum communication, blockchain, the IoT, AI big data. These technologies might and should be used to work on climate adaptation.

2

Literature Review

According to recent studies, the COVID-19 pandemic has become an ideal driver for an increase in digital efficiency, positively influencing the growth of the speed of adaptatiEuropean Commission, DG Connect (European Commission & DG Connect, 2022). Some scholars state that digitalisation, digital transformation, and green economy have become the most widely used words in recent years; this is caused by the fact that for business to be still competitive in the market, it has to provide green products and services that require a different approach to the managerial practice (Albiman & Sulong, 2017). It is also possible to state a range of strong links between the variables of DESI and GDP per capita, which are directly connected to the use of certain Internet services and the integration of technologies in all business processes and operations (Pilinkiene & Liberyte, 2021). In this context, countries seek solutions to adapt their economies to the new conditions and use new opportunities for their progress in the aspect of digitalisation at the national and global levels (Rachinger et al., 2019). According to Mustafa et al. (2020), the notion of Green Infrastructure is very important, and the factors that it influences are as follows: air purification, Climate and radiation regulation, water purification, soil and nutrient cycling, decomposition of waste, control of noise pollution, air quality, energy and material cycling, water quality, ecosystem resilience, etc. In the context of anthropogenic and technogenic interaction, a separate direction of the research is the mutual dependence of the state of development of digital technologies and elements of the green economy (Ciocoiu, 2011), which is described from the position of production (Khan et al., 2022) and regional development (Chen et al., 2022). In addition to the process of decarbonisation, digitalisation may create solutions that would stimulate the transition to a sustainable and circular economy. Many scholars also support the thought that financing of innovations in the sphere of green technologies and digital solutions facilitations the reduction of carbon print and the use of natural resources and materials, as well as an increase in the life cycle of products and services.

3

Materials and Methods

This research is based on the monographic method, which is aimed at a comprehensive and in-depth study of problems, phenomena and processes and the determination of the cause-and-effect links between them and the specifics of their formation. The key research task is the empirical substantiation of the comprehensive influence of digital technologies on separate aspects of the green economy. According to this, we use the methods of generalization and analysis, as well as expert methods, to determine the factors of positive and negative influence on the state, indicators and processes that are peculiar for the green economy. Certain aspects are described with the help of the methodological tools of the systems approach, which allows for a more detailed elaboration on the structure and elements of certain processes and phenomena of digital technologies and the green economy. We also discover the character of the interaction and mutual connections between different processes from the position of the possibility to affect them to achieve the key Sustainable Development Goals.

4

Results

The importance of the green economy's smart development, using the principles of digitalisation and decarbonisation of the economy with the help of digital technologies, is obvious. There is a direct link between digitalisation and the development of the green economy. The environmental advantages of digitalisation include the following: transition to the electronic document turnover, reduction of physical logistics flows, improvement of the systems of monitoring of production, reduction of the use of renewable and non-renewable energy sources, reduction of air pollution, decrease in anthropogenic load, and reduction of the risks of industrial disasters. Another eco-friendly effect of digitalisation is the smart nature of automatized (robotized) industrial systems, which improves the systems of real-time monitoring and control, raises the effectiveness of business processes, and reduces losses. Smart energy systems and ventilation/climate control systems in buildings, 3D print, automatized systems of product quality control, industrial robots, and smart logistics facilitate the improvement of production, economy of resources, optimization of stock, etc. There are also certain environmental disadvantages of digitalisation. These include the emergence of new technologies of information signal transfer, increase in energy consumption (industrial and household), growth of greenhouse gas emissions, growth of industrial consumption of

The Green Economy of the Future and the Prospects for Its Development …

rare-earth metals, growth of electronic waste, which often contains toxic elements, increase in the risk of industrial disasters due to imperfection of digital technologies and system failures European Green Deal (n.d.). The research of the digital economy’s influence on the environment is divided into four categories: the influence of the ICT sectors; the influence of electronic devices; the influence of e-commerce; socio-economic effects (Ciocoiu, 2011). Concerns regarding the necessity to evaluate the impact of digital technologies on the indicators of the green economy's development have a serious foundation. The period of the industrial revolution and industrialisation led to substantial degradation of ecology. In this context, digital technologies are less dependent on the use of material resources, but they still need electric energy. A study of the influence of digital technologies on the green economy’s development is implemented within different models. According to the study of the influence of Industry 4.0, the key elements of which are closely connected with digital improvements, on the state and mechanisms of the green economy, positive results were discovered. Apart from the positive influence of digital technologies on the green economy's development, there is a widespread statement regarding digital processes’ stimulating municipal and regional environmental development. Such positive effect is achieved due to technological digital innovations and their implementation in the processes of regional management, optimization of the industrial production structure and improvement of the state of monitoring of the ecological norms observation. However, scholars also note certain differences in the character and strength of such positive influence in various regions. This is primarily due to differences in the effectiveness of the government policy, aimed at the development of digital infrastructure and its integration in the traditional economy, with the following adaptation to the conditions of the green economy (Chen et al., 2022). The discovered differences, which demonstrate a weaker character of the positive effect of digital technologies on environmental processes, are very often connected with drawbacks of the infrastructure development or the system of administration of the interaction between the elements of the digital and traditional economy with the aspects of municipal administration. The development of regional administrative and digital infrastructure will allow strengthening the potential of digital technology solutions and creating new opportunities for their wide use in the practical activities of enterprises and municipalities.

5

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Discussion

The process of the economy’s ecologisation might have a large impact on the labour markets around the world. Since the rates and diversity of dissemination of green technologies will be growing in the decades to come, new markets will appear—which will raise the demand for green jobs and related skills. In this context, the policymakers face unprecedented problems in effectively satisfying the need for skills for the economy’s ecologisation. Transition to the green economy is unique in itself given its inter-sectoral effects, absence of precedents, and the deficit of experience. That's why training, experiments, and forecasts during the development and implementation of the policy are more important compared to previous attempts at development. The future will have lower dependence on the forms of formal education—instead, the right skills and lifelong learning will have a larger value for reducing the mismatch between skills and the development of a workforce that can adapt to the changing labour conditions. Under such conditions, to achieve the maximum effect, the use of digital technologies should be imposed on a clear and integrated system of interaction, which includes legal regulation, the presence of technological infrastructure and financial and economical motivational mechanism. This will allow ensuring quick rates of development in the digital sphere and will create opportunities for the implementation of its innovative potential.

6

Conclusions

The green economy has six main directions: renewable energy, sustainable construction and energy-saving; sustainable transport; water resources management; waste management; land resources management and sustainable cities. In this paper, we elaborated on the green economy and its development based on digital technologies and considered its future perspectives by the example of countries of the European Union. According to UNESCO, green economies are an important means to reach what sustainable development ultimately aims at: the well-being of people with respect for the environment. Despite certain concerns regarding the risks of quick development of digital technologies from the position of damage to the environment, the performed research demonstrated an opposite result. According to this, the influence of digital technologies on environmental processes is favourable. An important factor

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of positive impact of digital technologies on the green economy’s development is the availability of rational digital infrastructure, with a clear system of economic processes regulation.

References Albiman, M. M., & Sulong, Z. (2017). The linear and non-linear impacts of ICT on economic growth, of disaggregate income groups within SSA region. Telecommunication Policy, 41, 555–572. Chen S, Yang, Y, & Wu, T. et al. (2022). Digital economy and green development—based on the empirical research on the resource-based prefecture-level city, 20 September 2022, Preprint (Version 1) available at Research Square. https://doi.org/10.21203/ rs.3.rs-1983324/v1 Ciocoiu, C. N. (2011). Integrating digital economy and green economy: Opportunities for sustainable development. Theoretical and Empirical Researches in Urban Management, 6(1), 33–43.

V. K. Spilnichenko et al. European commission, DG connect. Digital economy and society https://digital-agenda-data.eu/datasets/desi/ index. (2022). visualizations. Accessed 10.04.2022 A European Green Deal. https://ec.europa.eu/info/strategy/priorities2019-2024/european-green-deal_en. Accessed 14.04.2022. Green Economy. UN Environment Programme. https://www.unep.org/ regions/asia-and-pacific/regional-initiatives/supporting-resourceefficiency/green-economy. Accessed 14.04.2022. Khan, S. A. R., Umar, M., Asadov, A., Tanveer, M., & Yu, Z. (2022). Technological revolution and circular economy practices: a mechanism of green economy. Sustainability, 14, 4524. https://doi.org/ 10.3390/su14084524 Mustafa, A. U., Afzal, H., & Zahoor, Z. (2020). Green economy and its future. Journal of Sustainable Tourism and Entrepreneurship, 2(2), 119–131. https://doi.org/10.35912/joste.v2i2.650 Pilinkiene, V., Liberyte, M. (2021). Conceptualization of business digitalisation and its impact on economics. In Proceedings of the IEEE International Conference on Technology and Entrepreneurship (ICTE), Kaunas, Lithuania, 24–27 August, 1–6. Rachinger, M., Rauter, R., Müller, C., Vorraber, W., & Schirgi, E. (2019). Digitalisation and its influence on business model innovation. Journal of Manufacture Technology Managing, 30, 1143–1160.

Contribution of Digital Education to the Digital Economy’s Development in Modern Conditions Olga V. Budzinskaya

Abstract

1

Purpose The aim of this paper is to discover the connection between the development of digital education and the digital economy under the modern conditions. Design/methodology/approach This study performed with the help of the methods of a systemic approach, comparative analysis, trend method, and statistical method of grouping. Findings The authors identify the tendencies of the digital economy as a result of the formation of digital education, the level of which is constantly improved. The authors discover the direct dependence between the studied phenomena and determine the key component of the impact of digital education on the economic development of countries (level of the use of special knowledge in the electronic environment). Originality/value The scientific novelty of the presented results and conclusions consists in the development of the theoretical and empirical framework in the sphere of determining the modern state of digital education and the digital economy at the national level of Russia, the USA, and China, as well as substantiation of the influence of the growth of the former phenomenon on the level of development of the latter phenomenon under the conditions of constant transformations. Keywords

. .

.

.

Digital education Electronic environment Special knowledge Digital economy Applied programmes Electronic products Electronic commerce

.

JEL Classification

A29

. . . . I21

I25

L81

M53

O. V. Budzinskaya (&) National University of Oil and Gas “Gubkin University”, Moscow, Russia e-mail: [email protected]

.

Introduction

The sector of the digital economy (economic activity that is based on digital technologies) grows dynamically, and the number of users and processes increase. Thus, information and digital technologies become a powerful technologies driver in all spheres in the socio-economic life of society; the leading global companies define the processes of digitalisation and informatisation as the driving force of the modern innovative development, growth of economy’s competitiveness, quality of life, and public progress. The active development of digital information technologies is linked primarily to the economic subjects’ search for new sources and assets that would ensure stable and long economic growth. A specific feature of the digitalisation processes, as indicators of economic development, is their influence on an economic system through changing the processes of production, turnover, distribution, and consumption and ensuring their dynamic interaction. In each society, transformations have certain differences, but, due to the comprehensive development of the globalisation processes, this phenomenon develops even in countries with closed economies. It is impossible to use the means of the digital economy without the digitalisation of education and training processes. At that, digital education is not just a tool of provision of personnel potential of the digital economy—it also ensures the acceleration and functioning of its infrastructure. In view of the above, the key research hypothesis is the assumption on the direct influence of the development of the state of digital education on the state of the digital economy’ development on the example of the selected countries of the world. To achieve the purpose of this research, the following research tasks are solved: • discovering the state of digital education’s development on the example of the selected countries of the world at the modern stage of society’s functioning;

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_72

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• evaluating the state of the digital economy’s development of the selected countries; • discovering the interdependence of transformations between the two assessed phenomena.

2

Literature Review

The objects of this literature review are the works on digital education and digital economy, which have an important theoretical and practical value for solving the research task of this paper. Muhammad (2020) prove the direct linear connection between the implementation of digital technologies and the formation of higher education and dwell on the dependence of digital education’s development on national GDP. Though the author considers the connection between digital education and the development of the economy, he does not describe the impact of this element on the level of the digital economy as a component of the national economy. The author uses the empirical data of the digital education’s development in the system of higher education and the data on GDP of Bangladesh for 1988–2018. To assess the linear connection, the author applies the adapted model of co-integration and correction (VECM). Butenko (2020) presents a complex overview of the scientific approaches regarding the characteristics and structure of the modern digital economy. The author treats digital education and digital science as the main components of the digital economy, which form the intellectual capital that is required for further operationalisation. Goloventchik (2020) devoted his work to the systematisation of the key trends of digitalisation and digital education. The author reveals that the digitalization of modern society influences digital education, its forms, and its transformation; also, its key role in the provision of human resources of the digital economy is noted. Goloventchik (2020) focuses on the importance of the modern tendency of the transborder interactive environment in digital education. It is pointed out that there are educational courses that use open content that is accessible to users around the world, which allows participating in the active exchange of knowledge and experience and the generation of new skills and approaches to the work with digital technologies. Zhang et al. (Zhang et al., 2021) prove that digital education, among such factors as political stability, investments, and information and technological infrastructure, has an important role in the digital economy’s transformation. The digital economy and digital education reach a high level of development in the environment that can provide a high level of digital infrastructure: Internet, modern information

and communication means, and possibilities to teach in the electronic form. Thus, it is possible to see that scholars acknowledge the influence and connection between digital education and economic development, but there is no clear proof of this connection with a specific component of the digital economy that would be confirmed by empirical studies. This issue has to be studied in the context of identifying and characterising such connection and influence.

3

Materials and Method

The hypothesis of this work: the development of the state of digital education directly influences the state of formation of the digital economy of different countries. To determine the character of direct linear connection, the following methods are used: systemic approach—to evaluate the elements of the complex of digital education and the digital economy; comparative analysis—to compare the character of the digital economy development as a result of the formation of digital education; trend method—to reveal the tendencies of the studied phenomena at the modern stage; statistical method of grouping—to systematise the statistical data on the indicators of studied phenomena’s development. This work uses the statistical materials of the development of digital education and the digital economy of Russia, the USA, and China in 2016–2020. Table 1 shows the statistical indicators of the digital economy’s development in the selected countries in 2016– 2020.

4

Results

The dependence of digital education and the digital economy development in the studied countries (Russia, the USA, and China) shall be considered. Based on the obtained data on the influence of two variables, the conclusions on the character of connections between them are made. The following should be noted: • the indicator “share of digital economy’s GDP in total GDP” is used to identify the development of the digital economy; its values are given in the provided statistical materials; • the indicator “level of the implementation of digital education in the general system of secondary vocational and higher education” is used in this work for determining the level of digital education’s development in the studied countries. The values of this indicator are given above within the statistical estimate indicators.

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Table 1 Statistical indicators of the digital economy’s development in the selected countries in 2016–2020 No.

Indicator

Values

1

Russia

1.1

GDP of national economy, $ billion

2016

2017

2018

2019

2020

1277

1574

1657

1687

1483

1.2

Share of digital economy’s GDP in total GDP, %

2.82

2.87

2.75

2.86

3.1

1.3

GDP of the digital economy, $ billion

36.0

45.2

45.6

48.2

46.0

2

USA

2.1

GDP of national economy, $ billion

18,745.08

19,542.98

20,611.86

21,433.22

20,936.6

2.2

Share of digital economy’s GDP in total GDP, %

9.03

8.91

8.97

8.89

8.68

2.3

GDP of the digital economy, $ billion

1,693.6

1,740.4

1,849.3

1,905.6

1,816.4

3

China

3.1

GDP of the national economy, $ billion

11,230

12,310

13,890

14,280

14,720

3.2

Share of digital economy’s GDP in total GDP, %

31

33

39.1

40.67

41.2

3.3

GDP of the digital economy, $ billion

3,481.3

4,062.3

5,443.3

5808

6070

Source Created by the authors based on (Abdrahmanova et al., 2021; News.cn, 2022; Statista, 2022; UNCTAD, 2021)

Based on the study of the development of two variables (Fig. 1), it is possible to state that Russia’s digital economy demonstrated a slight growth in 2016–2019 (growth of the share of GDP of the digital economy in GDP of the national economy from 2.82% in 2016 to 2.86% in 2019), followed by an insignificant increase in 2020. The latter is connected with the growth of the level of digital education and the quick reaction of the sector of the digital economy to the growth of the need for products (services) in this sphere, caused by the COVID-19 (increase in demand for online products and services that are necessary for the existence of many sectors under the conditions of remote functioning). Digital education in Russia demonstrated certain changes over the period of 2016–2019 (level of the implementation of digital education in the general system of secondary vocational and higher education in 2016 equalled 22%, in 2017—25%, in 2018—30%, and 2019—45%). In 2020, this indicator was at the level of 60%. Accordingly, digital education demonstrated substantial growth.

The fact that digital education developed quicker than the digital economy was caused by several reasons, which include the following: • migration of students in the sphere of digital technologies abroad, remote work for foreign companies (Kriesberg, 2021); • large underrun of Russia’s digital education from the USA and China in the directions that are required in the practical sphere. Namely, in skills of the use of applied programmes (43% in Russia, 54% in the USA, and 70% in China (2020)); skills of the use of special knowledge in the electronic environment (37% in Russia, 60% in the USA, and 65% in China (2020)). Figure 2 demonstrates the dynamics of digital education and the digital economy in the USA in 2016–2020. Analysis of the materials of the development of the two studied spheres has shown that the level of digital education’s development in the USA demonstrated a quick growth 60

60 40 %

45 30 22

25

Digital Education Digital Economy

20 2.87

2.82

2.75

3.1

2.86

0 2016

2017

2018

2019

2020

Fig. 1 Dynamics of digital education and the digital economy in Russia in 2016–2020. Source Created the authors based on (Abdrahmanova et al., 2021; HSE University, 2021)

366

O. V. Budzinskaya

100 80 %

55

90

70

65 60

60

Digital Education

40

Digital Economy

20

8.97

8.91

9.03

8.68

8.89

0 2016

2017

2018

2019

2020

Fig. 2 Dynamics of digital education and the digital economy in the USA in 2016–2020. Source Created by the authors based on (Statista, 2022; The U.S. Department of Education Office of Educational Technology, 2022; UNCTAD, 2021)

over the period of 2016–2020. This indicator (level of the implementation of digital education in the general system of secondary vocational and higher education) grew from 55% in 2016 to 90% in 2020. Despite the significant growth of digital education, it is necessary to mention an insufficiently high level of the digital economy. The indicator that determines the state of this direction (share of digital economy’s GDP in total GDP) was 9.03% in 2016, and 8.68% in 2020. This is largely caused by the following:

in 2016 to 95% in 2020) and the growth of the digital economy (share of digital economy’s GDP in total GDP grew from 31% in 2016 to 41.2% in 2020). Unlike Russia and the USA, China’s digital education is peculiar for a high level of the use of special knowledge in the electronic environment: students have substantial applied knowledge, especially in the sphere of e-commerce.

5 • large decrease in GDP of the USA, which began in the fourth quarter of 2019 and continued through 2020 (Bauer et al., 2020); • outsourcing of works in the sphere of electronic services in countries with cheap workforce and insufficient level of digital education (India, Vietnam, etc.) (Solanki & Sinha, 2017). Figure 3 demonstrates the dynamics of digital education and the digital economy of China in 2016–2020. Having studied the data on the development of two variables, it is possible to say that there is a direct connection between the growth of digital education (level of the implementation of digital education in the general system of secondary vocational and higher education grew from 65%

100 80 60 % 40

The performed analysis allowed discovering a direct connection between the development of the components of digital education and the indicators of the digital economy. It was revealed that under the influence of destabilising factors, the growth of digital education could become a stimulating factor and influence the support of the level of the indicators of a country’s digital economy. If favourable conditions are created—especially, in the case of a high level of digital infrastructure—the digital economy will stimulate the quick growth of a country's economic development. It was revealed that the decisive role in the impact on the digital economy belongs to such element of digital education as the level of the use of special knowledge in the electronic environment. 95

78

75 65

Conclusions

70 39.1

33

31

41.2

40.67

Digital Education Digital Economy

20 0 2016

2017

2018

2019

2020

Fig. 3 Dynamics of digital education and the digital economy in China in 2016–2020. Source Created by the authors based on (Iresearch, 2021; News.cn, 2022; Xiao, 2019)

Contribution of Digital Education to the Digital Economy’s Development in Modern Conditions

References Abdrahmanova, G. I., Vishnevskiy, K. O., & Gohberg, L. M. (2021). Digital economy indicators: 2021. National Research University Higher School of Economics. Bauer, L., Broady, K., Edelberg, W., O’Donnell, J. (2020). Ten facts about COVID-19 and the U.S. economy. Brookings. https://www. brookings.edu/research/ten-facts-about-covid-19-and-the-u-seconomy/#:*:text=From%20the%20most%20recent%20peak,% 5BBEA%5D%202020a%3B%20authors. Accessed 07.02.2022. Butenko, E. D. (2020). Definition of digital economy. Opinions, views, assessments. Bulletin of North Caucasian Federal University, 3(78), 209–223. Goloventchik, G. G. (2020). current trends in digital education reform. Digital Transformation, 4(13), 5–20. HSE University. (2021). Education indicators. https://www.hse.ru/ primarydata/io2021. Accessed 07.02.2022. Iresearch. (2021). 2020 China’s online education industry report. https://www.iresearchchina.com/content/details7_66009.html. Accessed 07.02.2022. Kriesberg, A. (2021). From Russia with code: Programming migrations in post-soviet times. Information & Culture, 56, 109–110. Muhammad, M. R. (2020). Impact of digital technology in higher education: Perspective from Bangladesh. International Journal of Research in Business and Social Science, 9(5), 318–325.

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News.cn. (2022). China’s digital economy reaches 39.2 trln Yuan in 2020. http://www.news.cn/english/2021-09/26/c_1310210883.htm. Accessed 07.02.2022. Solanki, D. K., & Sinha, K. (2017). Innovation and development in information technology in India: Specific to software industry. Journal of Technology Management for Growing Economies, 8(2), 129–144. Statista. (2022). Value added to the total economy (GDP) by the digital economy in the United States from 2005 to 2018, by type. https:// www.statista.com/statistics/961963/digital-economy-goods-andservices-value-add-to-gdp-usa/. Accessed 07.02.2022. The U.S. Department of Education Office of Educational Technology. (2022). National Education Technology Plan. https://tech.ed.gov/. Accessed 07.02.2022. UNCTAD. (2021). Digital economy report 2021. https://unctad.org/ webflyer/digital-economy-report-2021. Accessed: 07.02.2022. Xiao, F. (2019). Digital transformation in higher education: Critiquing the five-year development plans (2016–2020) of 75 Chinese universities. Distance Education, 40(4), 515–533. Zhang, W., Zhao, S., Wan, X., & Yao, Y. (2021). Study on the effect of digital economy on high-quality economic development in China. Study on the effect of digital economy on high-quality economic development in China. PLoS ONE, 16(9). https://www.ncbi.nlm. nih.gov/pmc/articles/PMC8454970/. Accessed 07.02.2022.

Investments in the Digitalization of the Agro-Industrial Complex for the Future Growth of the Global Economic System Mikhail A. Babeshin, Natalia V. Boyko , and Karina V. Karpova

in the AIC in view of high-tech processes and characterise their directions and interconnection with other economic sectors.

Abstract

Purpose In this paper, we determine and analyse the directions and volumes of investments in agro-industrial production and discover the impact of the given processes on the development of the global economic system. Design/methodology/approach We use the systems approach, which allows determining the connection between the processes of digital technologies implementation in the AIC and general economic global processes. Such an approach forms a methodological basis for the grouping and classification of the directions for using digital solutions in the AIC, as well as structuring the sectors of using technologies in the agricultural and food sectors. The use of the process approach allows grouping digital technologies, which are used in the AIC, by the stages of value chain formation. Findings We discover that the AIC has an important role in the structure of global production, provision of food security and population employment. In the twentieth century, the agro-food sector ensured a large growth of productiveness due to mechanisation and the green revolution. A decrease in the growth of productiveness in the sector could be compensated by using the opportunities of digital technologies, which are actively implemented in the production, logistics, trade and service sphere. These innovations cover all stages of the chain of formation of agro-food products’ chain, as well as the production processes in other economic sectors: industry, IT, finance, construction, etc. Originality/value We note an increase in the role of the agro-food sector in the structure of global production, determine the main directions for investing

M. A. Babeshin (&) . N. V. Boyko . K. V. Karpova Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] K. V. Karpova e-mail: [email protected]

Keywords

. .

..

.

Digital technologies Digitalisation Investments Agro-industrial complex Agriculture Food Tech JEL Classification

F01 O31

1

.. .. . . . . . . F20 F21 F29 O39 Q17

O10

O13

O19

O30

Introduction

The dynamic development of the agro-industrial sector of the world economy is one of the key factors in achieving certain Sustainable Development Goals of the UN, in particular, SDG 2, which is aimed at overcoming hunger, ensuring food security, improving nutrition and stimulating sustainable development of agriculture (UNDP, 2022). The quick growth of the population sets serious challenges before the agro-food system of the world, according to which satisfaction of food needs should be achieved with limited land resources. Such a situation is not new for the sector. Over the long history of agricultural development, humankind repeatedly dealt with the problem of the limited possibility of the growth of productiveness of agricultural production. In the twentieth century, we can mention mechanisation of the 1920s–1930s; the so-called “Green revolution” of the 1960s–1980s allowed for a substantial increase in productivity and a decrease in food cost in the world due to the growth of speed and volumes of production operations, the invention of high-yielding varieties and means for plant protection from pests and diseases, etc. (AgFunder, 2022; Dongoski, 2021).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_73

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According to the Food and Agriculture Organization of the United Nations (FAO), the agro-industrial complex faces new challenges, which include the necessity to increase the food production volumes by 70% by 2050, to meet the needs of the expected population of 9.6 billion people (Dongoski, 2021). Over the last decade, there were often heard statements about the next agrarian revolution, which will allow for the growth of production and productiveness in the agro-food sector. The role of the driver of such changes is assigned to digital technologies. It is expected that their wide usage will lead to a gradual transformation of traditional agriculture, based on skills, to digital agriculture, based on knowledge and technologies (Shivappa, 2018).

2

Materials and Methods

The methodology of this paper is based on the systems approach. It allows studying the processes of digitalization of the AIC and investments in R&D from the position of establishing interconnections between the processes in the agro-food sector and the global economy. The systems approach also allows studying the directions for investing and digital technologies, which are peculiar to the development of the agro-industrial complex. According to this, we determine the top-priority digital technologies that ensure the sector’s development and group the components of the markets of digital agro-food start-ups. The process approach allows identifying the directions for using digital solutions at all stages of the value chain formation in the agro-industrial complex. The issue of digitalization of the agro-industrial complex is a comparatively new research direction. It is rather widely presented in scientific works, which elaborate on its different aspects, which include the influence of scientific developments on the state of agriculture (Alston et al., 2021), a description of the main trends of digitalization of the AIC (Das, 2022), the study of the possible influence of the digital agro-industrial complex on the growth of the global economy (Dongoski, 2021) and the future (ECLAC, 2021), the study of the volume and dynamics of investments in digital technologies of the agro-industrial complex (Shivappa, 2018), dynamics and structure of investments in the leading digital startups in the spheres agriculture and food (Ventures, 2020), etc.

3

Results

According to the World Bank, agriculture accounts for 4.3% of the world’s GDP (The World Bank, 2022). In the late 1960s, this indicator equalled 10%. However, in 1968–2006, the sector's contribution to world production reduced from

10.6% to 3.2%. An increase in the volumes of production and productiveness led to low prices for food, which became one of the decisive factors of such dynamics. Starting in 2007, the negative trend was replaced with a positive one. Over the last 14 years, there have been stable positive dynamics–an increase in the share of agriculture in the world production by 0.06% per year on average (Das, 2022). Despite a small share in the structure of world production, the role of the agrarian sector is larger than it might seem. The key role of the sector in food provision, against the background of population growth, and the resource value of agricultural products in industry and bioenergy have led to significant interest in its development. Agriculture is critically important for countries with a medium or low level of development, in which GDP agriculture accounts for more than 25%. Besides, it positively influences the situation with employment and leads to the growth of income of the poorest groups of the population. As of now, the reserves of previous radical transformations reduce, the efficiency of most types of products comes close to biological potential and the return from improvements in the traditional spheres gradually decreases. Under such conditions, the key driver of the growth of the agro-industrial sector is digital technologies. As of 2022, the sector of digital agro-industrial production is not yet formed. Its outlines and structure change. The key digital technologies that ensure the quick development of the AIC include artificial intelligence, vertical farming, blockchain, autonomous machines and robotics, Big Data, cloud services and digital platforms, the Internet of Things, 3D print, etc. (Das, 2022; ECLAC, 2021; Smith, 2016). These technologies are united into one system of Agriculture 4.0, similarly to Industry 4.0, or are presented by two sectors in the sphere of startups—AgroTech (agriculture technology, which covers processes that are directly connected with agricultural production) and Foodtech (technologies that are connected with processing, storing and distribution of food products). Over the entire history of its existence, the agro-industrial complex was at the vanguard of scientific progress only at the initial stages of civilisation’s development. The modern model of the digital economy, which envisages the unification of the potential of different sectors to solve important social problems, has formed a new view of the agro-food sector, which, due to the use of new technologies, does not differ from traditional high-tech sectors. This increases the influence of the AIC on the dynamics of global economic development and assigns it with additional advantages. According to this, weaknesses of the agro-industrial complex, which are connected with the low level of productiveness, high labour intensity, dependence on natural and climatic factors, etc. are gradually reduced. This is achieved due to smart devices and software products, which

Investments in the Digitalization of the Agro-Industrial…

replace human labour, raise the precision of technological operations, propose optimal technological solutions, etc. The opportunities and examples of using digital technologies at each stage of the cost formation chain in the agro-industrial complex are given in Table 1. The above processes and technologies start to play an important role in the structure of global production. Events of recent years raised economic interest in the sphere of integration and use of digital technologies in the AIC. In 2021, global investments in the studied sector equalled USD 22.3 billion, of which USD 5 billion were invested in AgTech, and USD 17.3 billion—in FoodTech (Finistere Ventures, 2020). Since 2010, the total volume of venture capital invested in the sphere of agro-food digital technologies equalled USD 65.4 billion (AgroTech—USD 15.9 billion, FoodTech—USD 49.5 billion). The last contracts in this market include the following: • Pivot Bio (investments—USD 430 million)—solution aimed at obtaining nitrogen from air and creation of the conditions for its assimilation by plants; • Nature’s Fynd (USD 350 million)—development of food vegan protein of microbes; • Goleta (USD 350 million)—development of plant-derived shelf life extension technologies (Metinko, 2022).

Table 1 Using digital technologies in the agrarian chain of cost formation in the agro-industrial complex

371

A combination of current needs, the potential of agriculture and the capabilities of digital technologies forms new markets and opportunities and accelerates the development of traditional markets. As a result, the AgroTech market has seven main directions: • Crop protection and input management—according to AgFunder (2022); Finistere Ventures (2020), the largest investments were attracted by Indigo Ag ($ 1.1 billion) and Anuvia Plant Nutrients ($ 508.3 million); • Plant sciences—Benson Hill ($302 million), Inari ($192 million); • Animal technologies—Ynsect ($474.3 million), Innova Feed ($165.3 million); • Imagery—XAG ($246.2 million), Drone Deploy ($150 million); • Sensors & smart farm equipment—Semios ($126.6 million), Hortau ($56.2 million); • Precision agriculture—Gro Intelligence ($112.3 million), Farmers Edge ($78.2 million); • Agriculture marketplace and Fintech—Farmers Business Network ($629.3 million), ProducePay ($293.4 million); • Indoor agriculture—Plenty ($541 million), AeroFarm ($531.5 million). • The FoodTech market has eight main directions:

Stage

Characteristics and examples of digital technologies

1

Supply of resources, materials and equipment

• Digital commercial platforms (marketplaces) for purchasing resources, materials, technology, equipment and special transport (Agrofy and Agroads)

2

Sowing, watering, fertilizers and struggle with pests

• Digitalised management of irrigation with the help of the IoT; • Platforms of monitoring of crops for processing of information and decision making with the help of cloud geoinformation systems; • Autonomous robots for automatized inspection (Mineral from Alphabet); • Monitoring of crops with the help of drones

3

Harvesting, transportation and storing of products

• Sensors and advanced analytics for the automatization of the choice of period of harvesting; • Intelligent stock and assets management with the help of radio frequency identification and other technologies

4

Final processing of agricultural products

• Leading tools of analytics for the optimisation of routes and management of car pool; • Industrial robots for the automatization of production processes at factories

5

Logistics to the destination and product marketing

• Sensors for predictive maintenance of production machinery and equipment • Platforms of digital trade (marketplaces) for marketing and sales of final products • Tools of digital marketing for advertising and promotion of products (Agroads); • Sensors for monitoring of temperature chain

Source Compiled by the authors based on (ECLAC, 2021)

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• E-commerce—(Instacart $ 2.5 billion) (Weee! $ 600 million); • Consumer health—(ORIG3N $ 111.8 million), (FRS Healthy Energy $ 143.5 million); • Alternative protein—(JUST $ 372.5 million), (Perfect Day $ 361.4 million); • Supply chain—(Cloud Kitchens $ 700 million), (Berkshire Grey $ 327.6 million); • Processing and packaging—(Apeel Sciences $ 415 million), (Clear Labs $ 63.2 million); • Novel ingredients—(Geltor $ 117.5 million), (BrightSeed $ 51.9 million); • Meal kits & delivery—(Swiggy $ 2.9 billion), (Zomato $ 2.4 billion); • Hardware enabled—(Farmers Fridge $ 115.8 million), (June $ 93.5 million). Thus, a rational combination of digital technologies in the sphere of the agro-industrial complex creates entire clusters of high-tech, organisational and economic interaction, which accumulate large financial resources and ensure the development of not only the agro-food sector but also the system of trade and logistics, IT and R&D, financial sector, construction, etc. Given the expected growth of investments, high-tech and digital agro-industrial complex might accept the role of the driver of economic processes.

4

Discussion

The discovered tendencies and structure of investing in the digitalisation of companies of the agro-industrial complex pose a high scientific interest from the position of further research of the impact of technological processes on the general state of the sector's development. These processes require the application of complex mathematical tools and improvement of the methodology for determining the cause-and-effect links. Digital materials, which were used in this paper, reflect on the data of official international organisations and expert studies aimed at the analysis of the processes of investing in technological developments in the sphere of the agro-industrial complex. A special role of digitalization of the AIC is manifested in the sphere of development and implementation of start-ups, which accumulate large funds. The spheres of AgroTech and FoodTech contain different processes, each of which solves certain issues of the development of the agro-food sector and attracts more investments. Under such conditions, the digitalization of the AIC might accelerate the development of the global economy.

5

Conclusions

The agro-industrial complex plays a very important role in the system of the global economic system, though its share in production is not very large in terms of costs. The growth of the population of our planet sets new demands regarding food provision, which meet the limitation of resources and decrease in the rates of the growth of productiveness. Under such conditions, an important factor of improvement is the digitalisation of all processes that are connected with agro-food provision, which is based on the technologies of Big Data, blockchain, the IoT, AU, autonomous machines and robotics, vertical farming, etc. These processes are most active in startups that form the market structures of AgTech and Foodtech. These spheres of digitalization have a high level of investment attractiveness. Innovative projects in this sector combine the efforts and interests of many economic spheres, including industry, logistics, IT, and construction. Thus, an increase in investments in AgroTech and FoodTech projects will stimulate the development of the agro-food sector and the entire global economic system.

References AgFunder. (2022). AgriFoodTech investment report. https://agfunder. com/research/2022-agfunder-agrifoodtech-investment-report/ Alston, J. M., Pardey, P. G., & Rao, X. (2021, May 3). Rekindling the slow magic of agricultural R&D. Issues in Science and Technology. https://issues.org/rekindling-magic-agricultural-researchdevelopment-alston-pardey-rao/ Das, Ch. (2022). Agrifood tech industry is currently focusing on these 4 trends. Krishi Jagran. https://krishijagran.com/blog/agrifood-techindustry-is-currently-focusing-on-these-4-trends/ Dongoski, R. (2021). Digital agriculture: enough to feed a rapidly growing world? EY: Ernst & Young Global Limited. https://www. ey.com/en_ua/digital/digital-agriculture-data-solutions ECLAC. (2021). Digital technologies for a new future (LC/TS.2021/43). Economic Commission for Latin America and the Caribbean. Santiago. Finistere Ventures. (2020). Agrifood tech investment review. https:// finistere.com/wp-content/uploads/2021/04/Finistere-Ventures-2020AgriFood-Tech-Investment-Review.pdf Metinko, Ch. (2022). Why VC investors are plowing record sums into Agtech. Crunchbase News. https://news.crunchbase.com/startups/ agtech-startups-vc-funding-data/ Shivappa, H. (2018). Digital revolution and Big Data: A new revolution in agriculture. CAB Reviews: Perspectives in Agriculture, Veterinary Science, Nutrition and Natural Resources, 13. https://doi.org/ 10.1079/PAVSNNR201813021 Smith, Ph. (2016). R&D in agriculture. Forrest Brown. https:// forrestbrown.co.uk/news/agriculture-and-r-and-d-agri-tech/ The World Bank. (2022). Agriculture and Food. https://www. worldbank.org/en/topic/agriculture/overview UNDP. (2022). The SDGS in action. The Sustainable Development Goals (SDGs). https://www.undp.org/sustainable-development-goals

Digital Agro-Industrial Complex and the Future Perspectives of Food Security Based on Digitalization Sharip I. Sharipov , Shakhmardan S. Muduev , Bakhu Sh. Ibragimova , Islam K. Kerimov , and Gusein U. Yakhyaev

farming and vineyards; functioning of research and experimental centres; implementation of digital means in the automatization of milking systems (AMS) in the sphere of dairy farming. The above developed countries can provide food security at the national level, and their experience may be used by countries that produce commodities with low value added.

Abstract

This paper’s purpose consists in describing the influence of digitalization on the development of the agro-industrial complex (AIC) and determining the perspectives of food security at the national level. The methods of systematization, comparative analysis and statistical analysis are used. We evaluate the influence of digitalization on the development of the AIC and describe the perspectives of food security at the national level. Analysis of digitalization in the AIC by the example of developed countries (the USA, Switzerland, Norway and the United Kingdom) showed that the technologies they use ensure the growth in this sector. Due to the implementation of these technologies, the above countries manufacture products with high value added, which ensures the growth of export revenues. The main directions of digitalization that are used in agro-industrial complexes of the above countries include the implementation of 5G technologies; the development of real-time kinematics that is a requirement for navigation systems management in crop research; development and use of crop sprayer drones in fruit

S. I. Sharipov (&) . S. S. Muduev . G. U. Yakhyaev Dagestan State University of National Economy (DGUNH), Makhachkala, Russia e-mail: [email protected] B. Sh. Ibragimova All-Russian Institute of Agrarian Problems and Informatics named after A.A. Nikonov—Branch of the Federal Research Center of Agrarian Economy and Social Development of Rural, Areas—All-Russian Research Institute of Agricultural Economics, Moscow, Russia I. K. Kerimov Research Institute of Management, Economics, Politics and Sociology, Dagestan State University of National Economy (DSUNE), Makhachkala, Russia

Keywords

.

. .

Agro-industrial complex Digital technologies Digitalization Food security Crop research

.

JEL Classification

L15

1

. . . O33

Q13

Q16

Introduction

Leading countries of the world actively use in agriculture the data from various participants of the production chain which allows receiving information on a new quality, finding regularities, minimising risks and improving business processes and market manageability. Also, e-commerce is widely implemented; it is connected to the organisation of transactions in the electronic form: calculations, promotion and sales of products of the AIC. The efficiency of the functioning of the AIC is an important precondition for the provision of future food security on a global scale. As is known, many countries that do not have prominent results in the digitalization of the AIC (Russia, Ukraine, India, Turkey, Iran, etc.) are suppliers of food to a lot of regions of the world (Africa, Asia). Given the fact that countries with a high level of development of digitalization in the AIC have a large experience in its implementation and organisation, it is important to study their achievements in this sphere.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_74

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Literature Review

The aspects of the influence of digital technologies on the functioning of agricultural companies and the AIC at national levels under the conditions of the digital transformation of agrarian production were studied by various scholars. Qin et al. (2022) is a study of the state of sustainable development of the AIC in the EU and China in view of the influence of digitalization in the main spheres. Birner et al. (2021) dwell on the modern opportunities for digitalization to raise the efficiency and productiveness of the AIC. The authors consider the advantages of implementing digital technologies on the example of the functioning of the leading companies in this sphere in the USA and the EU and determine the directions of cooperation with the key participants of the technological market. Pauschinger and Klauser (2021) present a complex analysis of the implementation of digitalization means in the AIC of Switzerland. The authors of Klerkx et al. (2019) elaborate on the overview of scientific works in the sphere of digitalization in the AIC and consider the main directions of research on the implementation of digital technologies in various spheres of agrarian production. Vik and Petter (2019) contain the analysis of the results and consequences of implementing digital means in the automatized milking systems in dairy farming in Norway. Jans-Singh et al. (2020) is devoted to the description of the advantage of using digital technologies in the development of the British AIC.

Table 1 Digital competitiveness ranking of the considered countries in 2019–2021

Country USA

The literature review has shown that there are works devoted to isolated aspects of the implementation of digitalization in the AIC of various countries. However, these scientific results are of a fragmentary character and do not provide proof of the influence of digitalization on the development of the AIC at the national level.

3

Materials and Method

In this research, we use the method of systematization to reveal the main types of digital technologies that are used in the AIC; comparative analysis—to compare the dynamics of the changes in the Digital Competitiveness Ranking and the volumes of product sales of the studied countries’ AIC; statistical analysis—to determine the main statistical indicators of development in this direction. For the purpose of this research, we need to have the materials digital competitiveness of the considered countries (Table 1). This indicator is formed based on the three components of development in this sphere: knowledge, technology and future readiness. This indicator is calculated and published annually by Switzerland-based IMD World Competitiveness Centre (IMD World, 2022). The sales volumes of the products of the agricultural sector are given in Table 2. The analysis was made by the example of fifteen countries that are leaders by digital competitiveness, which includes the USA, Switzerland, Norway and the UK.

Change, ±

Digital competitiveness ranking 2019

2020

2021

1

1

1

2019–2020

2020–2021

0

0

Switzerland

5

6

6

1

0

Norway

9

9

9

0

0

15

13

14

–2

1

UK

Source Created by the authors on the basis of IMD World (2022)

Table 2 Dynamics of the volumes of sales of the products of the agricultural sector in 2019– 2021

Country

Volumes of product sales of the agro-industrial complex, $ million

Changes, ±, %

2019

2019–2020

2020

2021

2020–2021

USA

5,143.48

5,765.16

6,572.3

12.1

14.0

Switzerland

388.17

412.15

434.5

6.2

5.4

Norway

144.67

179.47

185.7

24.1

3.5

United Kingdom

2,769.4

3,022.17

3,020

9.1

– 0.1

Source Created by the authors on the basis of OECD Stat (2022)

Digital Agro-Industrial Complex and the Future Perspectives of Food Security Based on Digitalization

4

Results

Let us study the development of digitalization in the AIC and evaluate the perspectives of national food security by the example of the selected countries. According to the analysis (Table 1), the USA was the leader in digital competitiveness in 2019–2021. As for the digitalization of the U.S. AIC, the following features could be noted: • Active implementation of 5G in all spheres of the AIC, strategic perspectives of investing in this sphere for 2022–2032—$ 9 billion (Qin et al., 2022). This will stimulate the development of the main components of the digitalization of the AIC (technology, knowledge and future readiness); • High level of kinematics in real-time, which is necessary for managing navigation systems in crop research. The USA is the world leader in this sphere, which ensures high crop yield and productiveness. The main IT companies of the USA (SAP, IBM, Microsoft) are investors of the largest national projects on the implementation of these technologies in the country (Birner et al., 2021). The USA remained the leader in the Digital Competitiveness Ranking over 2019–2021. The growth of the indicator of the development of the U.S. AIC could be noted (increase in product sales by 12.1% in 2019–2020 and 14% in 2020–2021) (Table 2). Improvement of the parameters of development of digitalization (5G and new technologies in the navigation sphere) stimulated the growth of the indicators of development in this sphere. The decrease in Switzerland's place in the Digital Competitiveness Ranking in 2020 was due to the influence of the negative tendencies of the pandemic and a slight reduction of investments in digital technologies. The main directions of digitalization of Switzerland’s AIC are as follows (Pauschinger & Klauser, 2021): • use of startups in the sphere of development and use of crop sprayer drones in fruit farming and vineyards; • functioning of the experimental and demonstration centre of development of the AIC, which is financed by the terms of public–private partnership. Within this centre, various institutions and companies present results of new experimental developments in the sphere of digitalization of the AIC, perform the transfer of technologies and help their implementation in the activities of local companies (farm businesses). Despite a certain decrease in Switzerland’s position in the Digital Competitiveness Ranking, there was no aggravation

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of digitalization in the sphere of the AIC. In 2021, the IT sector allowed for the growth of the efficiency of the AIC (growth of product sales by 5.4%) (Table 2). It is possible to state the influence of the high level of digital competitiveness on the efficiency of the sector’s functioning. The large scale implementation of crop sprayer drones allows sustaining high crop yield and ensuring high value added of the products for export. Similarly to the USA, Norway retained its position in the Digital Competitiveness Ranking over 2019–2021 (Table 1). This position allowed for the high efficiency of the AIC. Analysis of the materials of Klerkx et al. (2019) allowed distinguishing the main features of digitalization of the AIC in Norway, which include the implementation of digital means in AMS systems in dairy farming. This led to the reduction of physical load on workers, reduction of working hours, and allowed for more time for workers’ development and leisure. The UK demonstrated a decrease in its position in the Digital Competitiveness Ranking over 2019–2021 (Table 1). In 2020, against the background of the aggravation of the economic situation in the world, the UK demonstrated the improvement of this indicator, which was ensured by the development of the three main components: technology, knowledge and future readiness. Investments in the described directions grew, digital technologies were implemented and the volume of R&D in the aspect of the development of digital competitiveness increased in different sectors. A comparison of the changes in the Digital Competitiveness Ranking and the development of the AIC of the UK shows the direct dependence between these variables. Improvement of the position in the Digital Competitiveness Ranking ensured the growth of the volume of product sales of the AIC by 9.1%, while the decrease in the position in 2021 compared to 2020 led to the reduction of this indicator by 0.1%. Thus, there is a direct dependence between these variables. The UK has high positions in the Digital Competitiveness Ranking and demonstrates a high level of efficiency of AIC due to the high value added of its products. The main specific features of the digitalization of the British AIC at the modern stage include the use of the means of precise evaluation of the environment (temperature, humidity, air pollution, etc.) for increasing the level of the productiveness of crop research (creation of smart farms); implementation of the modern digital technologies in cattle breeding (Jans-Singh et al., 2020). The analysis results have shown that the considered countries are leaders in the sphere of digitalization, development and efficiency of the AIC. High rates of development of the digitalization of these countries show that they are oriented at further improvement of efficiency in production, logistics and processes of organization of the work process

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in agriculture (use of robots, etc.). It is possible to state that the orientation at the selection of the optimal portfolio of digital technologies could allow countries that are main food suppliers in the world but do not demonstrate high value added of products ensure their own national and global food security. The character of the implementation of digitalization and efficiency of the AIC in the considered developed countries has shown that due to the growth of sales volume and efficiency they will be able to ensure food security. This has been confirmed by their development during the influence of the crisis factors of the 2020 pandemic.

5

Conclusion

Analysis of the development of digitalization in the AIC by the example of developed countries (the USA, Switzerland, Norway and the UK) has shown that the technologies they use ensure the growth on this sector. Due to the implementation of these technologies, these countries manufacture products with high value added, which raises export revenues. The main directions of digitalization that are used in the AIC of the above countries include 5G technologies, real-time kinematics for navigation systems in crop research; crop sprayer drones; functioning of R&D and experimental centres for development; use of the means of precise assessment of the conditions of the environment в crop research. The considered developed countries are able to provide their food security at the national level, and their experience in this sphere might be used by countries that produce commodities with low value added.

References Birner, R., Daum, T., & Pray, C. (2021). Who drives the digital revolution in agriculture? A review of supply-side trends, players and challenges. Applied Economic Perspectives and Policy, 43(4), 1260–1285. IMD WORLD. (2022). Digital competitiveness ranking 2021. https:// www.imd.org/centers/world-competitiveness-center/rankings/ world-digital-competitiveness/. Accessed: 04.04.2022. Jans-Singh, M., Leeming, К., Choudhary, R., Girolami, M. (2020). Digital twin of an urban-integrated hydroponic farm. Data-Centric Engineering, 1. https://www.cambridge.org/core/journals/datacentric-engineering/article/digital-twin-of-an-urbanintegratedhydroponic-farm/74D49985183A21CE8C510E0E61405A7D. Accessed: 04.04.2022. Klerkx, L., Jakku, E., & Labarhe, P. (2019). A review of social science on digital agriculture, smart farming and agriculture 4.0: New contributions and a future research agenda. NJAS—Wageningen Journal of Life Sciences, 90–91. https://www.sciencedirect.com/ science/article/pii/S1573521419301769. Accessed: 04.04.2022. OECD Stat. (2022). Monitoring and evaluation: Single commodity indicators. https://stats.oecd.org/. Accessed 04.04.2022. Pauschinger, D. & Klauser, F.R. (2021). The introduction of digital technologies into agriculture: Space, materiality and the public– private interacting forms of authority and expertise. Journal of Rural Studies. https://www.sciencedirect.com/science/article/pii/ S0743016721001911?via%3Dihub. Accessed 04.04.2022. Qin, T., Wang, L., Zhou, Y., Guo, L., Jiang, G., & Zhang, L. (2022). Digital technology-and-services-driven sustainable transformation of agriculture: Cases of China and the EU. Agriculture, 12, 297. https://stats.oecd.org/. Accessed 04.04.2022. Vik, J., Petter, E. (2019). The political robot—The structural consequences of automated milking systems (AMS) in Norway. NJAS— Wageningen Journal of Life Sciences, 90–91. https://www. sciencedirect.com/science/article/pii/S157352141830215X. Accessed 04.04.2022.

Improving Control Activities and International Cooperation of Customs Authorities in the Context of Digitalization Nadezhda A. Moshkina , Daria A. Kondrashchenko , Veronika V. Bekher , Leyla A. Gelyahova , and Margarita H. Mashekuasheva

Abstract

Keywords

Current achievements of information science and technology are actively introduced into various areas of the life of the country and society due to their serious positive impact on the effectiveness of ongoing processes. The COVID-19 pandemic led to the intensification of the digitalization of the activities of public authorities, and customs authorities are no exception. The large-scale introduction of information and digital technologies in the control activities of customs authorities has become a natural result of the development of international and domestic approaches to improving the customs service, as well as increasing the efficiency of foreign economic activity in general. In this connection, the scientific understanding of the current state of digitalization of the activities of customs authorities and the determination of prospects for further development of information and digital technologies in the context of improving control activities is of particular relevance. Based on the analysis of the effectiveness of the use of information and digital technologies in the control activities of customs authorities, the authors conclude that such methods of improving customs practice are progressive. There is significant potential for developing international customs cooperation to create a single digital space, which will improve the efficiency of interaction between the customs authorities of different states in the future.

Digitalization Control activities Customs authorities International cooperation Information technology

N. A. Moshkina (&) Volga Cooperative Institute (Branch), Russian University of Cooperation, Engels, Russia e-mail: [email protected] N. A. Moshkina . D. A. Kondrashchenko . V. V. Bekher Saratov State University, Saratov, Russia L. A. Gelyahova . M. H. Mashekuasheva North Caucasus Institute for Advanced Studies (Branch), Krasnodar University of the Ministry of Internal Affairs of Russia, Nalchik, Russia

.

. .

.

JEL Classification

H70

1

. . . . K30

K33

F15

F42

Introduction

Automation and informatization of end-to-end business processes of the customs service facilitate the simplification and acceleration of international trade. This task is being implemented through the introduction of digital technologies. In the era of widespread digitalization, the latest information technologies are actively introduced into the activities of customs authorities, the rules for the use of which are regulated at the international level. The use of information technologies is carried out to support the conduct of customs operations; the conditions for their use are determined directly by the customs services of the countries. Nowadays, electronic customs services have been put into operation and successfully operate in the Russian Federation, such as an electronic declaration of goods, remote release of goods, preliminary information, etc. Universal and regional international organizations pay close attention to the unification and systematization of existing approaches to the digitalization of customs relations to effectively implement and develop them. The objective conditionality and relevance of the full implementation of information and digital technologies in customs activities had significantly increased in the context of the COVID-19 pandemic, when remote interaction in electronic form turned out to be the only possible way to implement state-significant processes, including in the area

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_75

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of foreign economic activity. The current crisis conditions are unique, and the practice of international customs cooperation has undergone major changes in the current situation of massive restrictions and the increasing role of digital interactions on an international basis. This paper aims to comprehensively analyze the current state of digitalization of the activities of customs authorities.

2

Materials and Methods

The research tasks, which have been set above, were solved using general scientific methods of cognition: analysis— during the study of the views of scientists on the stated issues; synthesis and formal-logical methods—in the course of establishing digital opportunities for improving the control activities of customs. This research also used the comparative-legal method of cognition, which, along with scientific intuition, allowed determining the vector for the further development of the customs service in the context of digitalization.

3

Results

The introduction of information technologies in various areas of the life of society and the country is objectively determined by the opportunities, which are provided through their use, i.e., the implementation of many processes at a qualitatively new level in relatively simplified forms in a short time. It is important to note that there is currently fragmented use of information and digital technologies in certain areas. However, economic activity in the context of its priority for any state has become one of the first in this direction to improve domestic and international practice. The digitalization of the economy served as a vector for reforming the entire system of customs authorities and affected the quality and the efficiency of control activities, which is confirmed by the practice of taking appropriate measures to prevent the illegal import (export) of goods across the border. Thus, as part of improving control activities, in 2020, customs authorities ensured an increase in the share of automatically issued electronic declarations for exported and imported goods by 93.7% and 86%, respectively, which significantly exceeded the figures for previous years. As part of control measures, in Q1 and Q2 of 2021, customs authorities identified 54,631 cases of non-compliance with restrictions established by law. To combat the illegal import of sanctioned goods and other products for which there are established prohibitions and restrictions, control activities are carried out by mobile groups near certain sections of the state border. Mobile groups have the right to independently stop trucks weighing

more than three and a half tons outside the customs control zones in 25 constituent entities of the Russian Federation. Mobile groups are equipped with mobile complexes based on Ford Transit and KamAZ vehicles, equipped with advanced inspection equipment, computer equipment with software from customs authorities, and communication equipment, which allows them to quickly detect all kinds of customs legislation violations. Simultaneously, it should be noted that it is impossible to fully control the illegal import of sanctioned goods on mobile groups because, given the length of the state border of the Russian Federation, mobile groups are undeniably insufficient. In this regard, it seems appropriate to increase the number of mobile groups and put into operation additional special vehicles equipped with advanced technical means of customs control, as well as provide such groups with highly qualified personnel (Kinsfator & Shakurova, 2019). However, advanced training of customs personnel is relevant not only for mobile groups but also for inspectors of electronic declaration centers, whose activities in the new conditions of the digital economy require improved skills in using advanced software tools that are being actively introduced into customs practice. The high level of qualification of these employees will allow fully using the potential of innovations, which will positively affect the efficiency of the functioning of customs authorities. To improve the control activities of the customs authorities, various mechanisms and tools can be used, among which the “single window” mechanism can be distinguished (Bakaeva & Moshkina, 2021). Over the past years, it proved effective, which led to its expansion to other categories of goods (medicines, tobacco products, shoes, perfumes, cameras, tires, light industry goods, and dairy products). The traceability system is universal for all types of goods and modes of transportation, which will allow citizens of the EEU countries to receive reliable information about goods; business community to reduce transaction costs in transport logistics; governments to ensure control over the payment of taxes, respect for consumer rights, and reduce the illegal movement of goods across borders. This will speed up the processes of free movement of goods in the EEU, increasing the relevance of statistical and analytical reporting and optimizing logistics and transport infrastructure. It should be assumed that this system will significantly simplify and speed up the customs control procedures and contribute to the elimination of counterfeit products from the market. It is assumed that the goods traceability system will make the goods market on the territory of the Russian Federation and the EEU much more open and will guarantee the authenticity of all goods registered in the system.

Improving Control Activities and International …

To improve control over compliance with prohibitions and restrictions, artificial intelligence methods are being gradually introduced into the practice of customs authorities: a neural network trained on a set of images of homogeneous cargo makes a decision whether the goods in the cargo compartment correspond to goods declared in the documents. Artificial intelligence at checkpoints is a single information system that receives data from inspection, screening, weight and size complexes, radiation monitoring systems, and customs control facilities. It is assumed that the basis of artificial intelligence will be based on the principle of “single window,” i.e., the built-in automated passport control system will allow carriers with biometric passports to pass through passport control simultaneously, which will reduce the time spent on registration and will eliminate face-to-face contact with a representative of state authorities, thereby eliminating the probability of corruption during control activities. Currently, the transition to the digital economy is considered by the EEU as the main driving force for the economic growth of the member countries and the EEU. Over the past few years, the EEU member countries have seen significant progress in many areas of digital development, including the control activities of customs authorities. The latter implies the effective use of the achievements of science and technology in the activities of public authorities and focuses foreign economic activity on the development of innovative industries, the dynamic improvement of new types of services, and a significant increase in cross-country interactions (The World Bank, 2016). In this context, it is necessary to emphasize the fundamental importance of the development of international customs cooperation because current international relations clearly demonstrate that most countries of the world cannot develop in isolation. The effectiveness of international customs cooperation is largely dictated by the presence of common approaches in the countries to the development of foreign economic activity and the digitalization.

4

379

technologies. The above processes are feasible only in the case of comprehensive improvement in the control activities of customs authorities because the effectiveness of its implementation is of fundamental importance for the development of the foreign economic activity. As rightly noted in the scientific literature, an important direction in improving the efficiency of customs authorities is the development of cooperation with similar administrations of other countries (Kovarda et al., 2021). International customs cooperation is currently essentially focused on the large-scale introduction of information and digital technologies based on the existing positive experience of individual states and regions. The unification and systematization of existing approaches to the implementation of information technologies in the activities of customs authorities worldwide is ensured through the activities of specialized international organizations, among which the World Customs Organization is of particular importance for the analyzed area. The fulfillment of international obligations implies the implementation of specific behavior by the subjects at the international level. It involves large-scale domestic activities, ranging from improving the relevant legislation and implementing international norms to changes in law enforcement practice in terms of digitalization of the activities of customs authorities to ensure their effective interactions outside a particular country. The specified project group directly develops the basis for the formation of risk profiling for all customs administrations of the world in the context of the digitalization of their activities. Undoubtedly, the digitalization of the activities of the customs authorities will increase the transparency and certainty of the decision-making process, which will simultaneously reduce the likelihood of fraud associated with illegal trade or criminal activity. It should be emphasized that the ultimate goal of introducing digital technologies into customs practice will improve the activities of customs authorities, aimed at reducing the time and material costs of customs operations and improving the efficiency and quality of the control activities.

Discussion

The issues of improving the control activities of customs authorities in the context of digitalization are quite often raised in specialized literature. Thus, some authors note the need to organize a comprehensive digitalization of customs support for foreign economic activity, while others focus on the prospects of using individual digital technologies (Melnik, 2021). In the scientific literature, the process of digitalization is often considered in the context of informatization of various areas of the life of society and the country; it is also limited to the study of existing practices of using specific

5

Conclusion

The use of digital technologies in the control process allows ensuring the reduction of time and administrative costs in customs operations, increasing their efficiency and quality, and ensuring the smooth functioning of the mechanism for implementing prohibitions and restrictive measures in the area of foreign trade. The digitalization of the control activities of the customs authorities positively impacts domestic processes; it is also of paramount importance for the transformation of today’s

380

international customs cooperation. In this context, it is necessary to note significant results of the coordinated policy pursued in the EEU on the organization of a single digital space and the improvement of international customs cooperation, considering the existing economic, legal, information, and technical realities.

References Bakaeva, O. Yu., & Moshkina, N. A. (Eds.). (2021). Activities of customs authorities: Legal support: Main directions; prospects for development in the context of digitalization of the economy.

N. A. Moshkina et al. Kinsfator, S. A., & Shakurova, A. M. (2019). Improving the activities of mobile groups of customs authorities of the Russian Federation in the context of the functioning of the Eurasian Economic Union. Social Sciences, 1(24), 32–37. Kovarda, V. V., Laptev, R. A., Bolycheva, E. A., & Bobyreva, E. V. (2021). Areas of improving the activities of the customs authorities of Russia to ensure the national security of the country in the context of large-scale digitalization. The Eurasian Scientific Journal, 13(2), 1–19. Melnik, D. P. (2021). Digitalization of the activities of customs: Results and prospects. Economic Systems, 14(3), 126–139. The World Bank. (2016). Digital Agenda of the Eurasian Economic Union until 2025: Perspectives and recommendations. Overview Report. Retrieved from https://documents1.worldbank.org/curated/ en/850581522435806724/pdf/EAEU-Overview-Full-ENG-Final.pdf. Accessed 15 October 2021.

Cooperative Platforms: The Practice of Digital Participation Alexander V. Sobolev , Sviatoslav E. Bednyagin , Irina F. Kalinina , Andrey M. Sokolov , and Helena A. Yurmanova

Abstract

1

The paper aims to review cooperative platforms and some challenges of the practices of digital participation. Platform cooperatives are organized all over the world. However, they are still small and limited in scope. Cooperative platform or platform cooperativism serves as an alternative in the area of ownership and the control of workers over the platform. The analysis shows the insufficient engagement in digital participation compared to their potential. Cooperative organizations do move to a digital society, but the issues of the barriers to this transition and the driving forces have not been fully clarified, although they are critical because they allow for better predicting digitalization processes. Therefore, the authors outline some potential ways of the development, show how cooperative platforms can exist in the digital environment. Keywords

Platform cooperatives organizations

.

Digital innovation

.

JEL Classification

H49

. . . . J54

D83

V13

O39

Cooperative

Introduction

Cooperative platforms operate based on cooperative labor and democratic management. This opens up the possibility of guaranteeing the rights of workers and, therefore, improves local development and the entire economy (Srnicek, 2017). However, for the formation and feasibility of digital platforms, it is necessary to remove limiting factors such as the legal environment based on the provisions of traditional business. According to Scholz (2016), the platform cooperative consists of three parts: 1. The technological core of platforms (e.g., Uber, Airbnb, Facebook, Amazon, Google, etc.) is preserved. The technology does not change, but there is a replacement of one ownership model with another that does not move away from democratic values. The cooperative platform offers a positive alternative to platform capitalism, which benefits only a few. In other words, the platform cooperative offers a change of ownership, a structural change. 2. The platform cooperative represents solidarity, which is catastrophically lacking in an economy in which the management process is often carried out in a labor surplus. Platforms can be owned and operated by various forms of cooperatives. These cooperatives are formed with multi-stakeholder, worker-owned, and producer-owned cooperative platforms. Platform cooperatives themselves may have an advantage over traditional cooperatives because they can use digital platform technology to achieve better collective management.

A. V. Sobolev (&) . S. E. Bednyagin . I. F. Kalinina . A. M. Sokolov Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. M. Sokolov e-mail: [email protected] H. A. Yurmanova Donbass Law Academy, Donetsk, Ukraine

2

Methodology

This study is based on collecting data, describing and analyzing the status of different platform cooperatives in particular countries, and determining their mission, origin,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_76

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business model, legal status, governance, and other parameters. Subsequently, scientific research is performed on a broader database (Arvaia., 2020; Europe, 2016b; Soc and Coop. n.d.; Foodcoop. n.d.; MIDATA, 2020; Neonomia., 2020; Pwiic. n.d.).

3

Results

Cooperatives have become involved in supporting the activities of their members through the use of digital platforms. In Italy, for example, the Doc Servizi worker cooperative model has been developed that uses digital platforms. Doc Servizi started in 1990 in Verona. Today, it is a large network (Soc and Coop. (n.d.). The cooperative was created to manage and protect the labor of music, theater, and art professionals (n.d.). In 2018, it had 6000 members and 33 branches all over Italy with a budget of 52 million euros. Doc Servizi helps artists receive social protection and ensures their rights through a legal contract. Cooperatives like Doc Servizi (Italy) or Coopaname and the CAE model (France) are emerging in other European countries. For example, the Swiss cooperative Neonomia (2020) unites entrepreneurs. It was founded in 2016 in Geneva and included 19 cooperatives. It is the only cooperative in Switzerland that aims to offer entrepreneurs the opportunity to become entrepreneur-employee. Neonomia also offers its members a shared workspace and specific ways and types of entrepreneurial learning. In New York (the USA), a cooperative supermarket was created (Food Coop) (n.d.). Its members are involved in the normal trading activities and operational management of the supermarket. But in terms of the collective sharing of agricultural products and direct farming, the cooperative Arvaia (2020) arose in Bologna. This cooperative involves its members in growing, selecting. They exercise cooperative management, which, for some of them, may last from a few limited hours to a few days over the course of a year, all on a voluntary and spontaneous basis. The cooperative platform Pwiic (n.d.) was created in France; it is already present in other European countries. It is a combination of the words “professional” and “consumer,” meaning that certain people are not only consumers of the company’s services but also have a professional interest in the company, its services, and products. MIDATA is a medical data cooperative based in Switzerland MIDATA. (n.d.). In many countries, the legislation does not prevent the creation of platform cooperatives. Additionally, the statutes of cooperatives contain rules that ensure the rights of members and their democratic participation in the activities of the organization and during its management. Platform cooperatives face great challenges in various sectors.

The most serious problems for platform cooperatives are as follows: • Management: Platform cooperatives have organizational problems because they lack a geographically rooted community, so there are clashes of interest among stakeholders. • Technology: Platform cooperatives are often immune to certain technologies (e.g., big tech and artificial intelligence).

4

Discussion

“Platform economy” or “platform capitalism” continues to reproduce existing inequalities, benefiting from the labor of individuals who work to support it (Hauben et al., 2020). Therefore, it is necessary to raise the question of supporting cooperatives either through information or funding to organize digital processes, generally move work into an online environment, or to provide services and products online. Cooperatives may also find that digitalization will pay dividends in key areas, and it remains one of the most interesting areas for change within the cooperative movement. The most notable examples are platform coordinators, such as online shopping, cab or delivery cooperatives, photography, and web development cooperatives, which seek to democratize the online space and reach out to a previously dispersed community of people (Harvey, 2016; Schneider, 2018a, 2018b; Scholz, 2016, 2018; The New School, 2018). The main issues that relate to cooperative platforms and platform cooperativism boil down to discussions on problems about the way in which digital platforms are managed. Another significant issue is the problem of protection and involvement of workers and consumers in the digital economy in the functioning of cooperative organizations. Considering platform cooperatives from a discussion perspective, we would like to get convincing answers to the following questions (Borkin, 2019; Europe, 2016a, 2016b, 2017; Soc and Coop. (n.d.); Foodcoop. (n.d.); Harvey, 2016; Hauben et al., 2020): • Are these organizational structures capable of guaranteeing social protection and supporting permanently unemployed workers, including those in the shadow economy? • Is the platform cooperative model based on democratic principles so well that it never deviates from them? • Are platform cooperatives an alternative to the typical profit-maximizing economy?

Cooperative Platforms: The Practice of Digital Participation

• What challenges must be addressed for the cooperative model to evolve into a better, fairer, and more inclusive local economy? • How do cooperatives orchestrate their own transition to a digital society across three thematic areas: cooperatives and their use of digital tools, digital cooperatives, and platform cooperatives?

5

Conclusion

In a cooperative platform, the cooperative members own the digital platform. A digital platform is created in the activities of the cooperative, allowing each of its members to participate according to their needs. Digitalization will be crucial if cooperatives are to remain innovative and relevant in the future. The use of technological tools and techniques for better management and communication will also be critical. Work should also be done to ensure that collaborative approaches are developed for new and emerging areas of work, including platforms, and that the collaborative model can remain at the forefront of these new areas. The cooperation ensures mutually beneficial relationships and exchanges among members. In a cooperative, each member is a consumer or supplier (employee), so they participate in an organization engaged in digital transformation, which raises the level of people’s engagement in socio-economic activities much higher (Sobolev et al., 2018). Consequently, the members of such a cooperative are nominated to such positions as are intended for entrepreneurs. Apparently, playing the role of an entrepreneur means engaging in appropriate risk-taking activities. Using platforms, many small digital cooperatives seek to promote data autonomy, and we can see how they protect their members from the excesses of existing platform capitalism.

References Arvaia. (n.d.). Agricultural cooperative field Arvaia. Retrieved from www.arvaia.it. Accessed November 18, 2020. Borkin, S. (2019). Platform co-operatives—Solving the capital conundrum. COOP UK. Retrieved from: https://media.nesta.org.uk/ documents/Nesta_Platform_Report_FINAL-WEB_b1qZGj7.pdf. Accessed December 8, 2021.

383 Cooperatives Europe. (2016a). Working Group on collaborative economy: Meeting outcomes (undisclosed). Cooperatives Europe. (2016b). Annual report, 2016b. COOP. Retrieved from https://coopseurope.coop/sites/default/files/ COOPERATIVESEUROPE_ANNUALREPORT_2016b.pdf. Accessed December 8, 2021. Cooperatives Europe. (2017). CoopStarter 2.0” Erasmus+ Application Form (undisclosed). Doc Servizi Soc. Coop. (n.d.). We are a network of professionals connected through a platform co-operative. Retrieved from https:// www.docservizi.it; www.iprofessionistidellospettacolo.docservizi.it . Accessed November 18, 2020 Foodcoop. (n.d.). The most successful supermarket in New York City. Retrieved from: http://foodcoop.film/. Accessed December 8, 2021. Harvey, R. (2016, November 1). Could blockchain technology put co-ops at the front of the digital revolution? Coop News. Retrieved from https://www.thenews.coop/110675/sector/retail/blockchaintechnology-put-co-ops-front-digital-revolution/. Accessed December 8, 2021. Hauben, H., Lenaerts, K., & Waeyaert, W. (Eds.) (2020). The platform economy and precarious work. European Parliament; Committee on Employment and Social Affairs. Retrieved from: https://www. europarl.europa.eu/RegData/etudes/STUD/2020/652734/IPOL_ STU(2020)652734_EN.pdf. Accessed December 8, 2021. MIDATA. (n.d.). Mission. Retrieved from https://www.midata.coop/en/ home/. Accessed November 18, 2020. Neonomia. (n.d.). Employers’ cooperative. Retrieved from https:// www.neonomia.ch. Accessed November 18, 2020. Pwiic. (n.d.). Find or give help easily. Retrieved from https://pwiic. com/. Accessed November 18, 2020. Schneider, N. (2018a). An Internet of ownership: Democratic design for the online economy. The Sociological Review, 66(2), 320–340. https://doi.org/10.1177/0038026118758533 Schneider, N. (2018b). Platform co-ops are a new way of working. Retrieved from: https://inthemesh.com/archive/platform-coopsinterview-nathan-schneider/. Accessed November 11, 2020. Scholz, T. (2016). Platform cooperativism: Challenging the corporate sharing economy (1st edn.). Rosa Luxemburg Stiftung. Retrieved from https://monoskop.org/images/5/5b/Scholz_Trebor_Platform_ Cooperativism_Challenging_the_Corporate_Sharing_Economy.pdf . Accessed December 8, 2021. Scholz, T. (2018). Own this! A portfolio of platform cooperativism, in progress. Retrieved from https://publicseminar.org/2018/08/ownthis/. Accessed December 8, 2021. Sobolev, A., Kurakin, A., Pakhomov, V., & Trotsuk, I. (2018). Cooperation in rural Russia: Past, present and future. Mir Rossii, 27 (1), 65–89. https://doi.org/10.17323/1811-038X-2018-27-1-65-89 Srnicek, N. (2017). Platform capitalism. Polity Press. Sutton, M., Johnson, C., & Gorenflo, N. (August 16, 2016). A shareable explainer: What is a platform co-op? Shareable. Retrieved from https://www.shareable.net/blog/a-shareable-explainer-what-is-aplatform-co-op (Accessed 8 December 2021) The New School. (2018). The platform cooperativism consortium (PCC). At the new school, receives $1,000,000 Google.Org Grant. Retrieved from https://ww2.newschool.edu/pressroom/ pressreleases/2018/treborscholz.htm. Accessed November 11, 2020.

Prospects for the Development of the Digital Economy Based on Advanced Technologies of Industry 4.0: Robots, Big Data and Artificial Intelligence Andrey V. Kurkin

and Akim V. Giraev

Abstract

The article studies the directions of using Industry 4.0 technologies as a component of the digital economy of states. The prospects for the introduction of technologies of this category at the level of developing countries of an industrial type are revealed. The experience of digitalization of the economy of China and the United States (the leaders in this direction that allow them to maintain a global advantage in terms of GDP) was evaluated. The study involves the use of the rating method, system analysis and comparative analysis. The focus on these methods made it possible to determine data regarding achievements in the field of digitalization in the context of the main sectors of the economy. The scientific novelty of this study is related to the expansion of provisions on the prospects for the development of an industrial-type digital economy in the context of a focus on the results of the digitalization of leading technological countries. Keywords

...

. .

. .

Technology Industry 4.0 Digitalization Digital economy Industry development Employment Industrial type Stimulation JEL Classification

E24

1

.

M15

.

M16

. . . O14

O31

O32

Introduction

The progress of economic development in the second decade of the twenty-first century is determined by achievements in the production of high-tech, high-quality products (services). A. V. Kurkin (&) . A. V. Giraev St. Petersburg State Marine Technical University (SMTU), Saint-Petersburg, Russia e-mail: [email protected]

Economies focused on the introduction of modern advanced Industry 4.0 technologies differ significantly in most industries from economies aimed at industrialization based on the growth of production of low value-added products (mining, processing sectors). The latest ones are constantly under the influence of the negative factor of price fluctuations in the commodity markets, which affects the emergence of problems associated with low income from product exports, the refusal of many partner countries from certain types of raw materials if their consumption is contrary to the greening parameters established at the strategic level. In return for success through technological innovation, large industrial enterprises in many developing countries generate income due to low wage costs. This approach leads to low achievements in the context of the UN SDGs related to the social component and product quality, which affects price parameters and the income market. Accordingly, many developing economies do not achieve all the declared goals of sustainable development and are not sufficiently competitive in global markets, since their development doesn’t provide for the massive introduction of innovative digital technologies. A distinctive feature of the current stage of the introduction of innovative technologies is the rapid growth of individual developing countries that are oriented towards international integration and compete with the developed ones (China, India). These countries are also the leaders in the field of digitalization, and the experience of its implementation is also important for industrial states to determine development prospects. The purpose of the article is to identify promising directions for the introduction of digitalization in the area of Industry 4.0 in order to develop the digital economy and increase competitiveness. Achieving this goal is related to the implementation of the following tasks: to establish indicators for the introduction of innovative digital technologies 4.0 at the level of leading states in the field of digitalization; establishing the features of the implementation of innovative solutions for sectoral development related

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_77

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to the introduction of these technologies, which are promising for implementation in countries with developing economies.

Table 1 Level of use of advanced technologies 4.0 (ranking of countries) (2022) Country

Value of indicators, rank a

2

Materials and Method

To assess the issues of introducing the latest technologies related to the use of artificial intelligence tools, Big Data, and robotics, the following works were analyzed (Brave et al., 2019; Gu et al., 2022; Leigh et al., 2022; Ma et al., 2022; Tang et al., 2021; Zhao et al., 2022; Zhuang et al., 2021). These studies present important results demonstrating certain areas and prospects for improving the digital economy. To solve the problem associated with determining the directions of digitalization of the economy using 4.0 technologies, it is necessary to systematize the provisions presented by the authors and determine their prospective adaptability in the current development conditions. An important component of the research materials is the rating materials, which show data on the rating values of countries regarding the achievement of indicators for the implementation of digitalization elements. Accordingly, a rating method is used regarding the assessment of digital competitiveness indicators: • robotization in the context of World robots distribution (parameter a); Big data within the Use of Big Data and analytics (option b) (IMD, 2022); • artificial intelligence-based (parameter c) (Scimagojr, 2022). For the study, countries with high and low values of the three mentioned indicators were selected, and their measurement is carried out in the index measurement (Rank is used, a high index value corresponds to 1, and its decrease is measured with an increase from 1). The work is also related to the comparative analysis necessary to match the significance of the data on the introduction of innovative technologies in the economic development of countries. In addition, the method of system analysis was applied, which was used to extract information from empirical data about the features and directions of the application of Industry 4.0 technology tools.

3

Results

Let us present the indicator of the level of technology implementation 4.0 in the system of digitalization of the economy of states (Table 1).

China

b 1

c 5

1

Japan

2

63

4

Korea Rep

3

34

12

USA

4

1

2

Germany

5

52

6

Taiwan

7

2

13

France

8

43

7

India

12

13

3

Canada

13

4

10

Singapore

14

11

19

United Kingdom

15

19

5

Netherlands

20

16

16

Denmark

29

6

39

Finland

33

15

33

Israel

38

8

36

Norway

40

7

43

Qatar

56

3

66

Peru

53

53

69

Venezuela

55

58

78

Source Determined according to data fromIMD (2022), Scimagojr (2022)

The study of the indicated results (Table 1) allows us to state that the leaders of robotization are China, Japan, the Republic of Korea, the USA, Germany, Taiwan, France, India, Canada, Singapore, the United Kingdom, and the Netherlands. Countries whose digital economy is massively implementing Big Data include the USA, Taiwan, Qatar, Canada, China, Denmark, Norway, India, Finland, and the United Kingdom. Leadership in the use of the artificial intelligence tool belongs to China, the USA, India, Japan, the United Kingdom, Germany, France, Canada, the Republic of Korea, Taiwan, the Netherlands, and Singapore. Accordingly, China and the USA are the countries with the highest results in the implementation of Industry 4.0 technologies, while the other countries listed above have separate high achievements in each of the three indicators. Separately, it should be noted Japan, Germany and France, are among the top ten countries in the field of robotics and artificial intelligence, and Taiwan has a high level of use of Big Data and robots in the main sectors of the economy. Studying the experience of these countries is important to determine the prospects and opportunities for the development of the digital economy of many developing countries that have not achieved significant results in this direction.

Prospects for the Development of the Digital Economy Based on Advanced Technologies …

Let us formulate the main features of the introduction of Industry 4.0 technologies in the digital economy of countries demonstrating leadership positions and high results in the digitalization of the economy. It is necessary to define the areas of the introduction of three technological directions (robotics, artificial intelligence and big data) in China. The national features of the development of robotization in the state have been established, namely, the highest density of robots is used in Zhao et al. (2022): • the sphere of the restaurant business, sale of drinks and food (10–15%). Robots for the sale of drinks and food are used, and installed both in the premises of cafes, restaurants and in public places; • sphere of household and communal services (15–20%). Machines are used for cleaning territories, checking the level of public services, carrying out domestic work on the premises (programmed robots that perform elementary and complex functions) (in homes, hotels, healthcare institutions and others); • production of household appliances (robots for home, offices, public sector premises) (15–20%); • in the field of education (use for automatic testing of the level of knowledge, presentation of information) (20%). Other industries account for about 25–30% of robotization, the least implementation of these tools was noted in the mining industry and agriculture. It is noted that these industries are more focused on a low level of value-added products. It was revealed that the introduction of robotization (about 140 thousand units of robots were installed, which is higher than in Europe and the USA) in China affected the growth in employment. Although, this phenomenon was typical for the so-called third economic sector of China (which doesn’t include mining, manufacturing and agriculture) (Tang et al., 2021). In agriculture, manufacturing and extractive industries, unemployment has risen due to the transition of the economy to more competitive sectors that can ensure competitiveness in world markets (Zhao et al., 2022). It is worth highlighting the features of the implementation of such a digitalization tool as artificial intelligence in the context of the development of industries and regions of China, namely, the most developed (Ma et al., 2022): • the field of development and production of medical technologies focused on the prevention and treatment of brain diseases, the field of diagnostics of various diseases (production of equipment, technologies and test materials); • the sphere of production management of high-precision electronic, automotive, aviation, space and military

387

products (production of electronics, smart cars, high-precision missiles, drones); • the sphere of design and control over the construction of factories, mines, production lines, and installation of ultra-precise or large equipment (intelligent technological software solutions). It was determined that China ensured the rapid growth of investments in the development of the digital economy tool under study, namely if in 2015 this figure was 180 million Yuan, then at the beginning of 2021 it reached 2.2 billion Yuan (an increase of 1122%). Accordingly, during this period, achievements in the development and production of innovative solutions based on artificial intelligence have allowed China to provide undisputed world leadership in this area. It was found that the digitalization tool being evaluated has a lesser negative impact on the level of employment in comparison with robotization (Gu et al., 2022). Particularly noteworthy is such a segment of human resources as workers with an average level of qualification, which, according to the materials of empirical studies, are practically not affected by artificial intelligence tools (a slight decrease in employment in the amount of 2–3%). Regarding the use of Big Data in China, high results can be noted, namely, the state occupies the 5th place in the world ranking. One of the top priorities for Big Data implementation in China, as in the United States, is e-commerce. It was found that at the beginning of 2021, e-commerce in China accounted for about 24% of total retail sales, and about 9% in the United States (Zhuang et al., 2021). Among the main leaders in China’s e-commerce industry is the trading company Alibaba Group (net income of which in 2021 was 143.284 billion Yuan, capital— 1690.218 billion Yuan) (Alibabagroup, 2022). In view of the growing demand for e-commerce in the world, including for Chinese products, we can argue about the prospects for the development of this area of the digital economy. The development of e-commerce is carried out on the basis of the Big Data tool, which allows this area to carry out large-scale calculations, assessments, regulation of customer behaviour, determine demand and form an offer in the form of advertising to regular and potential customers. It is necessary to analyze the main characteristics of the introduction of category Industry 4.0 technologies at the level of the US digital economy, which can be adapted to the conditions of the developing countries of the world. As noted above, an important use of the Big Data tool in the US is e-commerce (Amazon, Ebay, Carters, Disneystore, Gap and others). Also, the area of economic analysis, forecasting and modelling of the development of industries, the main areas of government and business entities is an actual direction for using Big Data (Brave et al., 2019). The use of

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this tool for these purposes makes it possible to assess the actual state, and development risks, which was very important in the context of the development of the pandemic and while overcoming its impact on all spheres of life in the United States. Based on the materials of the analysis of the introduction of the innovative Big Data tool, the researchers show the improvement in the level of reliability of the data of the national statistical system of the state. It was revealed that although this tool was originally focused on application in other areas, its use has become widely used in the management of state statistics, economics and finance, the regulation of which, in turn, affects the country’s economy (Abraham, 2022). An assessment of the experience of introducing robotics in the US manufacturing and service sectors shows that this tool of the digital economy is being implemented on a large scale in the automotive industry (Tesla Inc., General Motors, Ford, Chrysler and others), in the space industry (SpaceX, Orbital ATK Inc., Sierra Nevada Corporation and others), the pharmaceutical industry (Pfizer Inc. and others), the manufacturing industry of medical equipment and equipment (Bausch and Lomb, Abbott Laboratories and others), less actively—at the level of other industries. At the present stage in the United States, there is a tendency for the state to stimulate the private sector to use robots in production and logistics processes as the basis for greening the economy (Leigh et al., 2022). To do this, programs to support the business environment (soft loans, discounts and other incentive measures) are implemented. Artificial intelligence tools in the United States are used at the level of large companies in most sectors of the economy, in the activities of some medium-sized commercial, industrial and agricultural enterprises, in managing the economy at the state level, and in managing large social networks (Twitter, Meta). It should be noted that the focus on market methods of economic regulation does not allow influencing the saving of the level of employment in the state at the level characteristic of the period of industrial growth in the United States, in which Industry 4.0 technologies were not used. At the same time, the introduction of these technologies opens up great opportunities for the active working-age population, ready for change (the ability to seek, accept, and master new knowledge, and skills, improve qualifications, and change professions).

4

Discussion

As part of the study of the characteristics and features of the introduction of Industry 4.0 technologies in the digital economy development of states, a number of promising areas have been identified for countries striving to increase

competitive industry parameters and international integration. Among these areas we can highlight: • technologically oriented with a secondary consideration of the problems of fluctuations in the employment market. This direction is implemented in the example of the digital economy of China and the United States. This approach ensures the rapid growth of industries that increase GDP through the production of high value-added products that are in high demand among various consumer segments. At the same time, if states have problems in the field of employment, including if there are regions that are not focused on the production of highly competitive products, the application of this approach will not reduce the social imbalance and achieve sustainable positions in the field of socio-economic development of the population; • technologically oriented with a priority focus on reducing the negative impact on the environment and energy. Within the framework of this direction, a measure can be implemented to encourage business entities to use Industry 4.0 technologies, namely, at the state level, partnerships between the state and international funds, a program of discounts for renting premises, territories, free removal of industrial waste, if there are any demand in other countries (as resources for energy production), consultations in the field of implementation of various technologies, and more. The focus on such a direction has confirmed its effectiveness in the example of the United States, where projects in this area have been implemented in recent years.

5

Conclusion

An analysis of the achievements of states in the digitalization of the economy indicates that category Industry 4.0 technologies have great advantages and disadvantages. Among these advantages, it should be noted: the growth of the digital economy as an element of the national economy, affecting the increase in GDP through the production and sale of competitive products (services); increasing the level of international integration by increasing the competitive position of products (services); creation of conditions for human resources development, ready for future changes in production (provision of services); improving the quality of public administration through the use of new administrative tools. At the same time, this area is distinguished by a number of problems (disadvantages) that need to be resolved both at the state level and within public–private interaction, namely: a decrease in the level of employment due to a reduction in

Prospects for the Development of the Digital Economy Based on Advanced Technologies …

the activity of industries in the production of products with low added value, in which do not use modern technologies; the need to finance technologies from external sources, including at the expense of the state, which often leads to a loss of control over management.

References Abraham, K. G. (2022). Big data and official statistics. https:// onlinelibrary.wiley.com/doi/epdf/10.1111/roiw.12617. Accessed: October 29, 2022. Alibabagroup. (2022). Alibaba Group Annual Report 2021. https://doc. irasia.com/listco/hk/alibabagroup/annual/2021/ar2021.pdf/. Accessed: October 29, 2022. Brave, S. A., Butters, A., & Kelley, D. (2019). A new, “big data” index of U.S. Economic activity. Economic Perspectives, Federal Reserve Bank of Chicago, 1, 1–30. Gu, T.-T., Zhang, S.-F., & Cai, R. (2022). Can artificial intelligence boost employment in service industries? Empirical analysis based on China. Applied Artificial Intelligence, 36(1). https://www.tandfonline.com/doi/full/https://doi.org/10.1080/08839514.2022. 2080336. Accessed: October 29, 2022.

389

IMD. (2022). World Digital Competitiveness Ranking. https://www. imd.org/centers/world-competitiveness-center/rankings/worlddigital-competitiveness/. Accessed: October 29, 2022. Leigh, N. G., Lee, H., & Kraft, B. (2022). Disparities in robot adoption among U.S. manufacturers: A critical economic development challenge. Industry and Innovation, 29(9), 1025–1044. Ma, H., Gao, Q., Li, X., & Zhang, Y. (2022). AI development and employment skill structure: A case study of China. Economic Analysis and Policy, 73, 242–254. Scimagojr. (2022). Artificial intelligence. https://www.scimagojr.com/ countryrank.php?category=1702. Accessed: October 29, 2022. Tang, C., Huang, K., & Liu, Q. (2021). Robots and skill-biased development in employment structure: Evidence from China. Economics Letters, 205(C). https://ideas.repec.org/a/eee/ecolet/ v205y2021ics0165176521002378.html Accessed: October 29, 2022. Zhao, Y., Said, R., Ismail, N. W., & Hamzah, H. Z. (2022). Effect of industrial robots on employment in China: An industry level analysis. Computational Intelligence and Neuroscience, 1. https:// www.hindawi.com/journals/cin/2022/2267237/.Accessed: October 29, 2022. Zhuang, W., Wang, M. C., Nakamoto, I., & Jiang, M. (2021). Big data analytics in E-commerce for the U.S. and China through literature reviewing. Journal of Systems Science and Information, 9(1), 16– 44.

Sustainable Development of Industry 4.0 as a Pioneering Line of Industry in the Post-pandemic Period Ruslan A. Mammaev , Gadzhimurad I. Idziev , Fatima N. Ismailova , Rasul M. Magomedov , and Naida G. Omarova

Abstract

JEL Classification

COVID-19 has hit us all hard. No nation could avoid the devastating effect it brought in terms of daily living, business or finance. It completely disrupted our understanding of business operations and performance. When the pandemic broke out, it seemed that organisations that implemented technologies to expand opportunities of Industry 4.0 turned out to get an advantage in fighting against the crisis. They were even able to thrive and grow during this period. Modern digital technologies have allowed these companies to transfer their business model to the Internet. They have managed to continue their operations without compromising the quality of their customer service; moreover, they have managed to improve it. Thus, COVID-19 has accelerated the digital transformation of society towards Industry 4.0 (the Fourth Industrial Revolution). The purpose of the research is to identify, systematise and generalise the key trends and consistent patterns of development of Industry 4.0 as a pioneering line of industry in the post-pandemic period. Methods employed: general scientific, statistical, survey.

Q01

Keywords

Industry 4.0 development Intelligence

..

. .

Digital economy Sustainable Post-pandemic period Artificial

R. A. Mammaev (&) . F. N. Ismailova . R. M. Magomedov Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected] G. I. Idziev Institute of Socio-Economic Research of the Dagestan Federal Research Center of the Russian Academy of Sciences, Makhachkala, Russia N. G. Omarova Makhachkala Branch of Moscow Automobile and Road Construction State Technical University (MADI), Makhachkala, Russia

1

. . . . O31

O32

O33

O38

Introduction

COVID-19 has had a catastrophic impact on the world. The first statement for the media that was made by the WHO in 2019 mentioned viral pneumonia; however, by March 2020, the pandemic was announced, following its advance in 120 countries. To reduce the advance, governments introduced such limitations as lockdown, self-isolation, stay-at-home decrees, and other measures. By April 2020, more than four billion people throughout the world have been ordered to stay at home. Stay-at-home decrees have resulted in huge changes in the way people work and live. Work from home is no longer an uncommon concept since people can adapt to changes through high technologies. The COVID-19 has changed the world, and many of these changes will be permanent. The research proves that COVID-19 has accelerated the implementation of digital and intelligent technologies. The results show far-reaching shifts in terms of the attitude of industry leaders to the use of high technologies. The first industrial revolution used the energy of water and steam for the mechanization of production. The second industrial revolution used electricity, enabling mass production. The third technological mode used electronics and information technology for the modernization of production. The fourth Industrial Revolution, known as Industry 4.0, constitutes IT-based digital transformation which improves the correlation between a machine and a man to improve the self-optimization of the system. The COVID-19 pandemic has accelerated this digitalisation along with the use of new technologies of Industry 4.0. This digital revolution contains a variety of new initiatives and technologies. Several studies discussed particular technologies in general or their influence on particular fields. Nevertheless, more comprehensive

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_78

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research is yet to be carried out to identify and describe technologies of Industry 4.0 after COVID-19. This research is aimed at filling this gap through a literature review to identify new subjects in Industry 4.0 and assess their particular contribution to the management of natural disasters.

2

Materials and Methods

COVID-19 has significantly disrupted the standard healthcare model. Digital healthcare has reached out to the stage as a way to reproduce some form of delivery of medical care and the key functions of healthcare systems. From outpatient care to emergency care and evaluations after procedures, the healthcare system should have adapted to the need for social distancing and self-isolation. The pandemic has forced most hospitals to promptly prepare, adjust and implement a wide range of telehealthcare services in the complex network of providers. Infrastructure and software were on-site in many fields, while in other fields they had to be promptly acquired or adjusted. The operating procedures that supported hundreds of interactions between the patient and health care provider, had to be scaled up and improved to support hundreds of thousands of people. The COVID-19 has revealed the implications of the growing inequality in a lot of developed countries (Cheng et al., 2016), as well as the actual digital divide inside as well as between the developed and developing economies. Indeed, the lockdown measures, laws on social distancing and stay-home limitations adopted by governments as a reaction to the pandemic were introduced in the absence of reliable Internet infrastructure in a lot of developing economic and rural areas and led to business failures, financial difficulties, and other adversities. One of the consequences of the pandemic is the identified digital divide in the countries and its implications for the aggravation of inequality both between the poor and the rich and between urban and rural areas. Although the accessibility of new technologies and the Internet throughout the world is continuously improving, all of this limits the opportunities that were accessible to many enterprises. Moreover, the pandemic is accompanied by a transition from common stores to e-stores, which results in the underinvestment of brick-and-mortar office spaces. The needs in digital infrastructure are constantly growing due to the explosive growth of digital innovations. In the age of digital transformation, the process of continuous interaction between healthcare organizations at all levels becomes essential. During the second wave of the pandemic, large companies are continuously searching for new growth points, which include, inter alia, the further introduction and development of telehealth.

3

Literature Review

The existing literature on the basics of Industry 4.0 is largely focused on the use of diverse technologies, such as the Internet of Things, Big Data, cloud computing, and additive manufacturing in the context of manufacturing, instead of the integration of supply chain management methods (Javaid & Haleem, 2019). Since the concept of Industry 4.0 and adjacent technologies has been developed not long ago, previous studies of epidemics hardly ever considered the use of new technologies in the recovery process (Haleem & Javaid, 2019). Ienca and Vayena (2020) demonstrated the potential of Big Data analytics in the improvement of supply chain transparency. Zeng et al. (2020) revealed the prospects of the IoT in the food supply chain. Grasselli et al. (2020) demonstrated the role of the digital supply chain in the improvement of the sales planning and operation strategies. Manogaran et al. (2017) suggested studying the role of new technologies of Industry 4.0 in the regulation of consequences of COVID-19. The current research has made a systematic review of the literature to fill this gap.

4

Results

In 2020, industrial digitalisation has faced the most major challenge to date. Having faced the largest healthcare and economic crisis in contemporary history, the companies from various sectors were forced to take extraordinary measures for the protection of their employees and maintenance of their operations (Ahmed et al., 2020). The analysis of results of a new survey by McKinsey involves three results: a win for those companies that have already scaled digital technologies, a reality check for those companies that are still scaling them, and a wake-up call for those who have not started to tread their path to Industry 4.0. Since 2017, the progress of Industry 4.0 has been tracked through the annual survey of global major manufacturing companies concerned with Industry 4.0, and the most recent survey of more than 400 companies all over the world provides a glimpse of the prospects of the leaders six months after the beginning of the coronavirus pandemic (Ren et al., 2020). Overall, 94% of respondents said that Industry 4.0 helped them maintain their activities during the crisis, while 56% claimed that these technologies played a crucial part in responding to the crisis. The companies that were scaling up the use scenarios of Industry 4.0 before the COVID-19 pandemic, turned out to get an advantage in responding to the crisis (Fig. 1). an Asian manufacturer of For example, consumer-packaged goods (CPG) created a digital twin of its

Sustainable Development of Industry 4.0 as a Pioneering Line of Industry in the Post-pandemic Period

supply chain before the COVID-19 pandemic. The company was able to use this to launch several scenarios during the pandemic, making preparations for sudden suspensions of production or interruptions in raw material supply. On the opposite side of the globe, a North American manufacturer of personal protective equipment (PPE), in the process of expanding its capacity by setting up a new manufacturing line, was able to set the line in operation through tele-assistance based on augmented reality for the project implementation. These and many other success stories resulted in a surge of interest in the potential of technologies of Industry 4.0, having put an end to a two-year plateau. About 65% of respondents said that they were more optimistic about the prospects of digital technologies than the year before (Fisher & Wilder-Smith, 2020). While technologies of Industry 4.0 turned out to be critically important to the first users in their response to the crisis, the pandemic has also forced the companies to reconsider the process of their digital transformation. Technologies of Industry 4.0 are no longer assessed judging from their ability to add value in the ordinary course; instead, it is expected that they will turn out to be useful in rugged times, such as the COVID-19 crisis. Second, supposedly the tests of their platforms of Industry 4.0 during the crisis showed the companies that they will have to go through a lot more obstacles than they expected before their implementation will be fully scaled. In particular, many companies discover that they can no longer ignore limitations created by the shortcomings of the essential infrastructure of information technologies/operational technologies (IT/OT). The pursuance of the fastest possible implementation forced many organisations to bypass their outdated IT and OT systems during the initial deployment of Industry 4.0, but currently, this approach reaches its limits (Zeng et al., 2020). The companies that had not implemented Industry 4.0 before COVID-19, received a wake-up call. According to the survey, such companies were not only confronted with difficulties during COVID-19, but were also lacking experience, were lagging in terms of most crucial stacks of IT/OT, and were experiencing the pressure for money caused by COVID-19; all of the above prevents them from making up for the lost time. Overall, 56% of respondents who did not implement technologies of Industry 4.0 before COVID-19 turned out to have limited capabilities of responding to COVID-19 due to the lack of digital technologies for their support. The crisis forces the companies to reconsider the lines of their operating strategies, changing both the business tasks they want to cope with and the technologies of Industry 4.0 which they use for this purpose. It is no wonder that, considering the unique circumstances of the pandemic, agility and operational flexibility rather than productivity and cost

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minimization, which used to be the major purpose for the majority, have become the top strategic priorities. In the same way, technologies that ensure remote work and teamwork, have topped the list of top-priority use scenarios in Industry 4.0, and more than half of respondents are working on projects in this field. The second and third positions were occupied by technologies that assisted cooperation and provided transparency of a direct supply chain, which reflects the need to manage unstable and disrupted supply networks (Haleem & Javaid, 2019). The coronavirus crisis changes the digital game for the industry. The pandemic has increased the value of Industry 4.0, but it has also exposed the limitations of modern implementations and set a higher bar for success (Haleem et al., 2020). Moreover, the transition to the next normality after COVID-19 has changed the context for many digital projects. Months of unforeseen costs and decreasing sales have left many enterprises with a lack of money for investing in technologies. And the crisis has had a major impact on talents (Haleem et al., 2019). Before the pandemic, 43% of top managers had already reported skill gaps in their companies; today, many of them are also forced to fight against new limitations on labour mobility and access to workplaces. The crisis changes the strategic context as well, affecting various sectors in different ways. Some industries, such as the aerospace industry, may face the prospect of an extended period of deferred demand. The companies in the energy and material sector faced a decline in both demand and prices, which was aggravated by the price pressure (Ruan et al., 2020). Other sectors, including consumer goods and medical goods, are trying to cope with high and unstable demand; that said, sales in some categories are record-breaking, while others remain much lower than the average historical figures.

5

Discussion

Industry 4.0 provides an automated solution for different manufacturing fields and other adjacent fields. Digital technologies enable people to work from home; people discover new office cultures, work schedules, virtual offices, virtual meetings, and extensive written communication. Industry 4.0 provides the opportunity for remote work using intelligent technologies, which is beneficial in the case of the COVID-19 outbreak. This revolution accelerates digital transformation through the improved management of crowd, transport, and public security. Digital technologies allow creating a virtual clinic through the use of telehealthcare. This will decrease the degree of physical presence of patients in hospitals. These technologies allow keeping track of a patient's health history and preventing unnecessary consultations of a patient in a hospital.

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Conclusions

The following conclusions can be drawn based on this research. The COVID-19 pandemic has not only foregrounded the development of international cooperation in the field of vaccine development and implementation, but also the explosive development of several other high-tech industries. Among several technological trends that have been distinguished by the experts of the World Economic Forum, a special place is held by online trade, e-payments, 3D printing, supply chain 4.0, 5G, and robotics. These lines of technological development can assist in developing a sustainable society in a post-COVID world. The coronavirus crisis changes the digital game for the industry. The pandemic has increased the value of Industry 4.0, but it has also exposed the limitations of modern implementations and set a higher bar for success. Industry 4.0 promotes technologies that can contribute to the fight against the pandemic. In particular, IoT and CPS simplify the collection of information on the number of infected people, encrypting them through the use of blockchain-based technologies, and then saving them in the cloud storage.

References Ahmed, S. F., Quadeer, A. A., & McKay, M. R. (2020). Preliminary identification of potential vaccine targets for the COVID-19 coronavirus (SARS-CoV-2) based on SARS-CoV immunological studies. Viruses, Mar, 12(3), 254. Cheng, G. J., Liu, L. T., Qiang, X. J., & Liu, Y. (2016). Industry 4.0 development and application of intelligent manufacturing. In 2016

International Conference on Information System and Artificial Intelligence (ISAI) (pp. 407–410) Jun 24 IEEE. Fisher, D., & Wilder-Smith, A. (2020). The global community needs to swiftly ramp up the response to contain COVID-19. Lancet (London, England) Apr 4. Grasselli, G., Pesenti, A., & Cecconi, M. (2020). Critical care utilisation for the COVID-19 outbreak in Lombardy, Italy: Early experience and forecast during an emergency response. Jama, Mar 13. Haleem, A., & Javaid, M. (2019). Additive manufacturing applications in industry 4.0: A review. Journal of Industrial Integration and https://doi.org/10.1142/ Management, 4(4), 1930001. S2424862219300011 Haleem, A., Javaid, M., & Vaishya, R. (2020). Effects of COVID 19 pandemic in daily life. Current Medicine Research and Practice, 10 (2). https://doi.org/10.1016/j.cmrp.2020.03.011 Haleem, A., Javaid, M., & Vaishya, R. (2019). Industry 4.0 and its applications in orthopaedics. Journal of Clinical Orthopaedic and Trauma, 10(3), 615–616. Ienca, M., & Vayena, E. (2020). On the responsible use of digital data to tackle the COVID-19 pandemic. Nature Medicine, 26, 463–464. Javaid, M., & Haleem, A. (2019). Industry 4.0 applications in medical field: a brief review. Current Medicine Research and Practice, 9(3), 102–109. Manogaran, G., Thota, C., Lopez, D., & Sundarasekar, R. (2017). Big data security intelligence for healthcare Industry 4.0. In Cyber security for Industry 4.0: Analysis for design and manufacturing (pp. 103–126). Springer. Ren, J. L., Zhang, A. H., & Wang, X. J. (2020). Traditional Chinese medicine for COVID-19 treatment. Pharmacological Research, 155, 104743. Ruan, Q., Yang, K., Wang, W., Jiang, L., & Song, J. (2020). Clinical predictors of mortality due to COVID-19 based on an analysis of data of 150 patients from Wuhan, China. Intensive Care Medicine, 46(5), 846–848. Zeng, J., Huang, J., & Pan, L. (2020). How to balance acute myocardial infarction and COVID-19: The protocols from Sichuan Provincial People’s Hospital. Intensive Care Medicine, 46, 1111–1113.

Robotization as a Vector of the Innovative Development of Industry Under the Post-pandemic Conditions Alexandr A. Ryazanov , Suren A. Khachaturyan , and Valentina V. Grigoreva

upgrade of industrial robotization, which influenced the growth of industrial production. Originality/value The scientific novelty of this research is the expansion of the characteristics of the influence of the innovative development of the readiness of countries to implement robotization on the state of the industry.

Abstract

The purpose of this work is to identify the influence of innovative development of the readiness of countries to implement robotization on the state of the industry. Design/methodology/approach The following methods were used during the research: systematization; statistical method; comparative method. Findings The authors study the influence of the innovative development of the readiness of countries to implement robotization on the state of the industry and evaluate the level of robotization implementation in the industry of the studied countries (South Korea, Germany, China, France, and Russia). It is established that South Korea, Germany, China, and France demonstrate the growth of this indicator, while Russia is not characterized by such dynamics. Only South Korea and China were able to show a high level of industrial robotization in the crisis conditions of the lockdown. It is proved that the growth of the volumes of industrial production in these countries is caused by the use of new models of robots that ensure the innovative character of products. The specifics of implementing industrial robotization in the studied countries are discovered. It is noted that South Korea and China have a high potential of innovative development of industry under the post-pandemic conditions since these countries chose a correct vector of functioning to overcome the crisis (implementing the new models of industrial robots in the most optimal spheres). It is discovered that Germany, France, and Russia did not ensure the required

A. A. Ryazanov (&) University of Word Civilizations, Moscow, Russia e-mail: [email protected] S. A. Khachaturyan Expert and Analytical Center, Moscow, Russia V. V. Grigoreva Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia

Keywords

..

.

...

.

Innovative development Robotization Industrial robots Readiness of countries State of industry Models Innovativeness of products Routine processes JEL Classification

014

1

.

033

Introduction

Under the conditions of the post-pandemic development of society, there emerged a threat of reduction or full disappearance of many industrial sectors. This is connected to the decrease in investments in the upgrade of equipment, decrease in production, absence of materials, absence of raw materials, and reduction of personnel, caused by the impossibility to pay wages and taxes, aggravation and full destruction of the logistics chains. The production systems of certain sectors are insufficiently flexible to oppose the crisis phenomena and new external challenges. The improvement of the effectiveness of production is predetermined by the acceleration of technological progress and the implementation of automatization. A real direction of the innovative development, as an element of an increase in the effectiveness of industry, is the use of flexible production systems. Industrial robots, which are the work machines of production systems, ensure the automatization of certain technological processes and connect them to the systems of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_79

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production complexes. Their implementation allows raising the level of the development of industrial complexes and ensuring the support of the stable state under the conditions of a crisis that are similar to those that existed before the pandemic. The state of the implementation of robotization predetermines the potential and opportunities of each state to ensure the support of the industry. Due to this, the study of this direction allows revealing the level of readiness of certain states to ensure industrial development under crisis conditions. The main research hypothesis is connected to the assumption on the impact of the innovative development of the readiness of countries to implement robotization on the state of the industry. The purpose of this work is to discover the influence of the innovative development of the readiness of countries to implement robotization on the state of the industry. To achieve this goal, the following tasks are solved: • Assessing the level of the implementation of robotization in the industry of certain states; • Analysing the level of the development of the studied countries’ industry; • Establishing the influence of the innovative development of the readiness of countries to implement robotization on the state of the industry.

2

Literature Review

The overview of the scientific works devoted to the theoretical, methodological, and empirical aspects of using robotization in the industrial sectors has shown the following. Jung and Lim (2020) consider the factors of industrial robotization and personalize the dynamics and causes of the change of the level and structures of population's employment due to the replacement of the human workforce with robots in many spheres. The research results have shown that the important factors of implementing industrial robots are the growth of expenditures related to employees’ wages; level of hourly wages. There are problems in the sphere of replacement of workforce with industrial robots. Acemoglu et al. (2020) present the results of the influence of implementing robots of various categories on the development of the processing sectors of industry in France. The important results of the research include discovering the character of the development of industrial robotization in a country. de Vries et al. (2020) provide the assessment of the impact of industrial robotization on the availability of jobs in a country. A model of implementing industrial robots in China at the model stage is set.

Zhang et al. (2018) provide the framework of the development of robots and determine that their main directions at the model stage are intellectualization of robots, their flexibility in use, and increase in the level of interaction with humans. Gasparetto and Scalera (2019) distinguish the main stages of development of robotics in industry and present the classification of the evolutionary formation of robots in this sphere at the level of their various generations. Also, the authors provide the characteristics of each group of industrial robots. The overview of the scientific approaches of the studied problems has shown that, at the modern stage, the existing scientific works do not present a comprehensive picture of the state of industrial robots and their impact on the state of the industry. The issue of the state of robotization of the studied countries’ industry in the structural aspect, within the discovery of the AI errors, is not elaborated. Thus, it is possible to state that the resolution of certain research tasks in this sphere requires complex research and evaluation of the state of variables at the current stage.

3

Materials and Method

This work aims to reveal the influence of the innovative development of the countries’ readiness to implement robotization on the state of the industry. The following methods were used. The method of systematization was used to generalize the characteristics of the state of robotization within isolated countries. The statistical method was used to find the data regarding the development of robotization and the volumes of the countries’ industrial production. The comparative method is used to ensure the comparison of the data on the studied indicators within the estimated period at the level of various countries. The research was performed based on the statistical data that identify the indicators of the state of robotization and the volumes of industrial production of the countries over 2018–2020. The level of robotization is determined with the help of the indicator “Robot density in the manufacturing industry”—the number of robots per 10,000 workers of a country’s industry. This indicator is provided within the annual reports of the International Federation of Robotics (2022). Table 1 contains the characteristics of this indicator for 2018–2020 in the studied countries. Another estimate variable is the indicator of the volume of industrial production of countries over 2018–2020. Table 2 presents the dynamics of this indicator. These statistical data shall be used in the course of studying the given problem.

Robotization as a Vector of the Innovative Development of Industry Under the Post-pandemic Conditions

397

Table1 Characteristics of the state of the indicator “Robot density in the manufacturing industry” in 2018–2020 in the studied countries Country/indicator “robot density in the manufacturing industry”

Change, ±

Value 2018

2019

2020

2018–2019

2019–2020

1. South Korea, units per 10,000 industrial workers, including:

920

918

932

−2

14

1.1. Manufactured in the country, %

100

100

100

0

0

1.2. Latest, %

52

48

62

−4

14

2. Germany, units per 10,000 industrial workers, including:

334

346

371

12

25

2.1. Manufactured in the country, %

47

52

53

5

1

2.2. Latest, %

51

43

38

−8

−5

3. China, units per 10,000 industrial workers, including:

169

187

246

18

59

3.1. Manufactured in the country, %

100

100

100

0

0

3.2. Latest, %

54

44

63

−10

19

4. France, units per 10,000 industrial workers, including:

165

177

194

12

17

4.1. Manufactured in the country

38

42

53

4

11

4.2. Latest, %

52

41

40

−11

−1

5. Russia, units per 10,000 industrial workers, including:

5

6

6

1

0

5.1. Manufactured in the country, %

5.5

5

5

−0.5

0

5.2. Latest, %

0

0

0

0

0

Source Compiled by the authors based on Eurasian Economic Commission (2021), Federal State Statistics Service (2022), The International Federation of Robotics (2022), Worldbank (2022)

Table 2 The volume of industrial production over 2018–2020 in the studied countries Country/indicator “robot density in the manufacturing industry” 1. South Korea

Change, $ billion, ±

Value, $ billion 2018

2019

2020

2018–2019

2019–2020

459.5

409.8

554.0

−49.7

144.2

2. Germany

810.11

755.8

698.8

−54.31

−57

3. China

3,868.5

3,823.5

3,853.1

−45

29.6

4. France

277.9

273.7

244.4

−4.2

−29.3

5. Russia

1,372.2064

1,340.0453

1,301.184

−32.1611

−38.8613

Source Compiled by the authors based on Worldbank (2022)

4

Results

Let us evaluate the level of robotization implementation in the industry of the studied countries. Based on the research of the statistical materials (Table 1), (Worldbank, 2022), it was revealed that South Korea is ranked 1st in the world by the level of robotization of industry. The indicator “robotization of industry” demonstrated certain fluctuations (920 points in 2018, 918 points in 2019, and 932 points in 2020. It is possible to state that robotization covers approximately 10% of the country's industry. This is a very high indicator, which shows a high added value of the products of innovative character that are produced in the country. The key companies that use industrial robots in South Korea are Hyundai Motor

Company, LG Electronics, Samsung, Korea Electric Power Corporation, and SK Group. 100% of the industrial robots of South Korea are manufactured domestically. Over 2018– 2020, there was a fluctuation in the use of new models of robots in the industry: 52% in 2018, 48% in 2019, and 62% in 2020. According to Jung and Lim (2020), the specific features of the robotization of South Korea include the tendency for the growth of using industrial robots in the spheres that use unskilled labour force. The analysis (Table 1) has shown that Germany has a rather high position in the provision of industry robotization in the EU. In 2018–2020, this indicator demonstrated an increase (334 units per 10,000 workers in 2018, 346 units— in 2019, and 371—in 2020). Approximately 50% of industrial robots were manufactured domestically, but the production of new models decreased (51% in 2018, 43% in

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2019, and 38% in 2020), which is a sign of a decrease in the level of innovativeness of products in the industry in the aspect of the technological provision of production. The leading German companies that use industrial robots are as follows: KUKA Robots (uses and manufactures robots for industrial and other purposes); Deep Drive (uses robots to develop engines for electric transport); Promethion (use of robots for provision of autonomous systems, creation of synthetic data, and image analytics); Unchained Robotics (use of industrial robots to create control systems in the sphere of AI and electronics); Micropsi Industries (use of robotics for the innovative solutions in the sphere of management of technological processes and robots in difference spheres), etc. China has strong positions in the implementation of robotization of industry (169 units per 10,000 workers in 2018, 187 units—in 2019, and 246 units—in 2020). All industrial robots used in all sectors were manufactured domestically. At that, there was a fluctuation of the level of using new models: 54% in 2018, 44% in 2019, and 63% in 2020. According to Vries et al. (2020), robots are used in Chinese industry primarily in the sphere of routine processes and tasks. This is a specific feature of the development of robotization in the country. According to the statistical data (Table 1), France demonstrated a rather high level of robotization of industry (165 units per 10,000 employees in 2018, 177 units—in 2019, and 194 units—in 2020). In 2018–2020, there was a growth of production of industrial robots used within the country, but the level of upgrade of their models decreased (from 52% in 2018 to 40% in 2020). Based on the analysis of scientific sources (Acemoglu et al., 2020), it was discovered that the specific feature of the robotization of France is the growth of the use of industrial robots in the spheres that are peculiar for high wages. The main companies that use industrial robots include Staubli (manufacture of industrial automatons and spare parts) and Durr (production of robots and spare parts). Russia is characterized by the low robotization of industry. This indicator did not change much (5 units per 10,000 workers in 2018, 6 units in 2019, and 6 units in 2020). Approximately 50% of industrial robots were manufactured domestically, but there are no new models due to insufficient investments in innovative development. The situation was not improved under the crisis conditions—due to the decrease in sales after the lockdown. The key manufacturers of industrial robots are as follows: Gazprom Neft (operations with oil and gas), Alros and OMZ (innovative projects), Severstal (production of drones and AI), Sibur (innovative projects), and Tsifrovaya Ekonomika (manufacture of robot components). Based on the analysis of the statistical data (Table 2), it was revealed that only South Korea and China were able to

A. A. Ryazanov et al.

ensure the growth of industrial production volume. Though South Korea—compared to China and Germany—has a lower value of this indicator, its products have a higher level of value-added and are more innovative. It is possible to state the existence of the influence of the innovative development of the countries’ readiness to implement robotization on the state of the industry. The following aspects could be noted: • An increase in the use of new models of industrial robots led to an increase in the volume of industrial production under the conditions of an economic crisis caused by the pandemic and lockdown in 2020 (shown by the example of South Korea and China); • Growth of the use of industrial robots that do not have high innovative characteristics is not a tool of the growth of a country’s industry. It is possible to state that the assumption on the impact of innovative development of the countries’ readiness to implement robotization on the state of the industry was confirmed. The results of the analysis allowed discovering that such connection between the two variables is achieved under the conditions of the provision of an upgrade of the industrial robots’ models. Namely, robotization of processes and operations at the level that would allow opposing the crisis and post-crisis phenomena takes place. Such opposition is ensured due to the innovative characteristics of industrial robots that take into account the required possibilities for the creation of highly competitive market positions under difficult market conditions. By the example of South Korea and China, the assumption of the impact of one variable on another was confirmed.

5

Conclusion

A study of the influence of innovative development of the countries’ readiness to implement robotization on the state of the industry was performed. An assessment of the level of implementing robotization in the industry of the studied countries (South Korea, Germany, China, France, and Russia) was conducted. It was proved that the growth of the industrial production volumes in the studied countries is connected to the use of new models of robots that ensure the innovative character of products. The specifics of implementing industrial robotization in the studied countries were established. It is possible to state that South Korea and China have a high potential for the innovative development of industry under the post-pandemic conditions since these countries chose a correct vector of the functioning to overcome the crisis (implementing new models of industrial robots in the most optimal spheres). The analysis has shown

Robotization as a Vector of the Innovative Development of Industry Under the Post-pandemic Conditions

that Germany, France, and Russia did not ensure the required upgrade of industrial robotization, which influenced the growth of industrial production. It is possible to assume that the provision of growth of the volumes of industry under the post-pandemic conditions in the above countries would require the use of robots that can satisfy the need for the workforce in certain areas and minimize the level of material intensity and the level of waste.

References Acemoglu, D., LeLarge, C., & Restrepo, P. (2020). Competing with robots: Firm-level evidence from France. National Bureau of Economic Research. Eurasian Economic Commission. (2021). Economic indicators. Eurasian Economic Union statistics. Federal State Statistics Service. (2022). About industrial production. https://gks.ru/bgd/free/B04_03/IssWWW.exe/Stg/d02/8.htm. Accessed: March 02, 2022.

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Gasparetto, A., & Scalera, L. (2019). A brief history of industrial robotics in the 20th century. Advances in Historical Studies, 8, 24– 35. Jung, J. H., & Lim, D. (2020). Industrial robots, employment growth, and labour cost: A simultaneous equation analysis. Technological Forecasting and Social Change, 159. https://reader.elsevier.com/ reader/sd/pii/S0040162520310283?token=CE26982471DBEBB7A E633BED3CBEFC9751FCEB9FF90A7BE77A0D7D6440FD6FD CD6F8BFFEA6FA05490E81DFDEF63E7386&originRegion=euwest-1&originCreation=20220303132836. Data Accessed: March 02, 2022. The International Federation of Robotics. (2022). World robotics. https://ifr.org/free-downloads/. Accessed: March 02, 2022. Vries, G. J.de, Gentile, E., Miroudot, S., & Wacker, K. M. (2020). The rise of robots and the fall of routine jobs. Labour Economics, 66, 101885. https://www.sciencedirect.com/science/article/pii/S092753 7120300890. Accessed: March 02, 2022. Worldbank. (2022). Data. https://data.worldbank.org/country/. Accessed: Maarch 02, 2022. Zhang, R., Chang, Z., & Weigang, Z. (2018). The status and development of industrial robots. In The electrochemical society (Vol. 423). https://doi.org/10.1088/1757-899X/423/1/012051/pdf. Accessed: March 02, 2022.

Green Industrial Innovation for Sustainable Development: A Post-COVID Perspective Arsen S. Abdulkadyrov , Natalia A. Stefanova , Aleksandr A. Zhigit , and Elena I. Meshchangina

Abstract

JEL Classification

This paper presents a comprehensive analysis of the implementation of innovative eco-oriented approaches to managing industrial companies in the context of the course on the achievement of sustainable development parameters. The analysed rankings of countries within the four directions of green innovation implementation show the existence of perspectives and needs for improvement in developing and developed countries. The assessment was performed with the help of statistical and forecast indicators of ecologisation of industrial development of countries. The perspectives were determined in the context of the focus on the conditions of the functioning of the industry in economies that are oriented toward energy saving. An important scientific result is the systematisation of the modern specifics of the industrial companies’ transition to the use of the newest eco-oriented technologies.

J24

Keywords

. . .

Ecologisation Sustainable development saving Emissions Renewable energy innovations

..

Energy Green

A. S. Abdulkadyrov (&) Dagestan State Technical University, Makhachkala, Russia e-mail: [email protected] N. A. Stefanova Povolzhskiy State University of Telecommunication and Informatics (PSUTI), Samara, Russia A. A. Zhigit Perm National Research Polytechnic University, Perm, Russia E. I. Meshchangina Moscow Polytechnic University, Moscow, Russia e-mail: [email protected]

1

. . . . Q01

Q21

Q25

Q28

Introduction

Transition to the use of green eco-efficient innovations in the sectors that are peculiar for substantial consumption of resources, big waste and pollution of the environment implies the industrial and government subjects’ focus on sustainable development. The use of environmental solutions and technologies in the industry conforms to the programme foundations of the UN SDGs, namely SDG 6, SDG 7, SDG 12, SDG 13 and SDG 14 (Sustainable development report, 2022). Certain developing countries, which are characterised by the growth of industrialisation, do not focus on the support of the given indicators of sustainable development, which negatively influences the state of the population's health (Rahman et al., 2021). A high level of environmental pollution, low energy efficiency and absence of access to environment-friendly resources are the preconditions of the growth of early death among the population. The COVID-19 pandemic led to failures in production and logistics and a lack of personnel. It was more difficult for developing countries to fight the challenges of the pandemic and the problems of post-COVID recovery. The pandemic demonstrated the necessity for large industrial companies and governments to reconsider their approaches to the management of resources, processes and technologies. The financial problem, which appeared after the pandemic, led to companies and governments’ implementing energy-saving programmes and paying attention to production waste management at the micro-level and national level. Given the above, it is very important to study the issue of implementing green innovative solutions in the industrial sectors. This paper aimed to determine positive eco-oriented innovations that would ensure the improvement of the level

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_80

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of national sustainable development in the post-COVID period.

2

Materials and Method

Consideration of the problems and state of the use of green technologies in industrial sectors for the achievement of environmental indicators of the sustainable development of countries requires the analysis of scientific and empirical data in this sphere. We analysed the works connected with the above directions, in particular (Astriani et al., 2021; Boeing et al., 2022; Lehtoranta et al., 2022; Liu et al., 2021; Najar & Persson, 2021; Okonkwo et al., 2021; Rahman et al., 2021). A study of the level of achievements of national industries in the implementation of green innovations was performed with the help of the statistical method and the following indicators (Sustainable development report, 2022): • Level of industrial wastewater treatment, measured in % (variable V); • Level of renewable energy in the general balance of energy resources, measured in % (average level: 28.1%) (variable E); • R&D expenditures/GDP ratio (including expenditures for green innovative solutions, measured in % (2–3% being a high value) (variable RD); • Level of industrial SO2 emissions, measured in kg/capita (eco-oriented management of the indicator is assessed at the level below 30 kg/capita) (variable S).

3

Results

Using the indicators of the environmental components of UN SDGs, let us present a ranking of countries with high and low levels of implementing green innovations in industry for seven months of 2022 (Table 1). Based on the data from Table 1, it is possible to state that high indicators of industrial wastewater treatment are observed in Finland and Sweden (100%) and Germany (97%), while low indicators—with China (9.4%), Azerbaijan (3.8%), Pakistan (0.1%), Nigeria (0.2%) and Indonesia. The absence of industrial wastewater treatment negatively influences the population's access to clean water (SDG 6). In the post-COVID period, a low level of the population’s (workers’) access to elementary benefits leads to an increase in the death rate and problems with personnel. A study of analytical data on the Indonesian government's participation in the resolution of the problem of clean water provision and attraction of industry subjects to this issue demonstrated a low level of responsibility in this regard. Such an approach was particularly incorrect during the pandemic and the fight against its consequences when companies of the mining industry were not able to work normally due to a high number of COVID-19 cases and a high death rate of employees (Astriani et al., 2021). There’s an annual increase in the death rate by 0.95% with factual economic growth (Macrotrends, 2022). Analysis of the resolution of the problem of wastewater treatment in Finland showed that the projects of installation of purification systems at the exits from buildings are

Table 1 Ranking of countries by the level of implementing green innovations in the industry (for seven months of 2022) Country

Values of the indicators

The character of industry eco-friendliness

V, %

E, %

RD, %

S, kg/capita

Finland

100

34.9

2.8

26.6

Very high level of industrial wastewater treatment, high level of R&D

Sweden

100

40.1

3.3

15.7

Germany

97

15

3.1

11.2

High level of expenditures for R&D in the sphere of green innovations and high level of industrial wastewater treatment

Canada

67.4

16.2

1.5

24.8

Industrial wastewater treatment at the level that is above medium

Lithuania

51.4

20.5

0.9

8.5

Medium level of industrial wastewater treatment, normal level of other indicators

United States

58.9

7.9

2.8

30.4

Significant level of industrial wastewater treatment and R&D expenditures

China

9.4

9.7

2.1

18

Low level of industrial wastewater treatment, low level of renewable energy resources

Turkey

30.4

15.9

1

15.1

Low, but acceptable, characteristics of industrial development ecologisation

Azerbaijan

3.8

1.4

0.2

5

Negative level of industry ecologisation by all parameters, except for industrial SO2 emissions

Indonesia

0

23.9

0.2

8

No industrial wastewater treatment, low % of R&D expenditures

Pakistan

0.1

35.7

0.2

4.9

Medium level of renewable energy, other indicators of ecologisation are low

Nigeria

0.2

75.1

0.1

0.4

High level of renewable energy in the general balance of energy resources, low level of industrial wastewater treatment and R&D expenditures

Source Created by the authors based on Sustainable Development Report (2022)

Green Industrial Innovation for Sustainable Development: A Post-COVID Perspective

implemented at the municipal level. These installations clean water from nitrogen and phosphorus. The cost of these systems is high, but their usage might be actual for territories that fall under the reconstruction projects through the attraction of targeted investments (Lehtoranta et al., 2022). Analysis of the work of the industrial wastewater treatment system in Sweden showed that the country uses two approaches (Najar & Persson, 2021): • Installation of internal treatment systems, which do not create anthropogenic threats to the environment and which are exploited at the level of local enterprises; • Industrial wastewater treatment at the level of municipal services of the territories that use expensive innovative technologies. Their cost is covered by the payments received from enterprises and residential houses that do not have an internal purification system. As for the projects on the implementation of renewable sources of energy, developing and developed countries have had success in this direction. It is necessary to note the quick growth of green innovations in this sphere, which were implemented over 2019–2022 in Nigeria. Due to a high level of CO2 emissions, which appear during the traditional production of electric energy, the country began a transition to solar energy. This helps reduce the pollution level and increase the number of jobs in the energy sphere (Okonkwo et al., 2021). While 32,000 people were employed in the sphere of solar energy in early 2019, this indicator is expected to reach 76,000 by 2023 (Powerforall, 2022; Stakeholderdemocracy., 2022). This indicator of employment will exceed the number of employed in the oil and gas sphere, which previously accounted for the largest number of workers in the industrial sector of Nigeria. An important aspect of the development of solar energy in Nigeria is that its development does not lead to the growth of unemployment in the sphere of traditional energy but instead to the retraining of personnel. Implementation of this project in the sphere of energy and support for employment is especially important in the post-COVID period, which requires energy efficiency and an increase in productiveness. Most of the considered developed countries demonstrate a high level of research in the sphere of R&D (Table 1). Among the considered developing countries, it is necessary to note China, which R&D expenditures / GDP ratio is 2.1% in 2022. This level of R&D corresponds to the quick growth of Chinese industry sectors and the increase in products’ value added through the implementation of digitalisation tools at the level of process and technical components and the use of innovative materials. The growth of sectors that are new for the Chinese industry was implemented due to expenditures for R&D, which are covered mainly by the

403

government. Accordingly, state subsidies, based on the non-market transition, allowed raising the competitive positions of China in the sphere of development of high-tech production (Boeing et al., 2022). A study of legal regulation and the experience of development of the industry of Chinese regions has shown that the implementation of energy-saving technologies allows— even with the focus on the traditional sources of energy production—achieving progress in the reduction of SO2 emissions (Liu et al., 2021).

4

Discussion

The distinguished effective directions of implementing green innovative solutions for the development of industrial sectors of countries allowed determining the possibilities for their adaptation in the post-pandemic period. Countries that do not have an experience in industrial wastewater purification, especially those that focus on mining and processing sectors (Indonesia, China, Azerbaijan, Nigeria and Pakistan) might use the experience of Finland in the sector of the upgrade of the wastewater treatment system. It is possible to implement investment and innovative projects with the use of assets from international funds. Sweden's approach, based on the motivation and administrative principles, which imply high tariffs for the absence of high-tech purification technologies for cleaning industrial wastewater, is also very useful. Countries that focus on the implementation of renewable sources of energy instead of using fossil fuels, may use the experience of Nigeria, which, to avoid unemployment in the sphere of traditional energy, resorted to retraining of workers. Demand and affordability of process for solar energy in the country allowed raising the level of regions’ development, which raised their investment attractiveness. Adaptation of this experience might help countries with a low level of energy resources or countries that want to refuse energy sources that negatively influence the future development of the environment. An important aspect of implementing green innovations is the growth of R&D in development of modern industrial sectors. Implementation of R&D requires investments that might be attracted at the level of public–private partnership and the level of government subsidies (example of China). In this direction, it is advisable to assess the risks of managing the critically important infrastructures of the country. Energy-saving measures are an important direction for the development of green innovations. The creation and mass production of energy-saving technologies and equipment will allow ensuring the protection of the environment from the growth of emissions from industrial productions. This

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direction will remain very important in the future since there is a global focus on the responsible consumption of resources.

5

Conclusion

In the course of the research on the direction for implementing green innovative solutions in industrial development, we have discovered various problems in different categories of countries. The pandemic and its consequences led to new tendencies in the functioning of industrial sectors. Energy saving became a priority in the use of energy sources. Energy efficiency forms new tendencies in the sphere of R&D and the manufacture of equipment and technologies that are used in industrial spheres. Analysis of eco-oriented innovations allowed discovering the possibilities for increasing the quality of development of sectoral directions, which have a negative influence on ecology, quality of life and economy. Effective functioning of modern industrial sectors in the current conditions is possible in the case of the focus on the achievement of the balance of ecological, social and economic parameters. Understanding of this concept of industrial development in the long term is observed in the functioning of most countries of the world.

References Astriani, N., Rubiati, B., Adharani, Y., Afifah, S. S., Salsabila, R., & Diffa, R. (2021). The responsibility of the Indonesian government to fulfill the rights to water during the COVID-19 pandemic: Some legal issues. Environmental Policy and Law, 51, 327–341.

Boeing, P., Eberle, J., & Howell, A. (2022). The impact of China's R&D subsidies on R&D investment, technological upgrading and economic growth. Technological Forecasting and Social Change, 174, 121212. https://www.sciencedirect.com/science/article/pii/ S0040162521006454. Accessed: October 26, 2022. Cambridge University Press. (2022). Sustainable development report. https://dashboards.sdgindex.org/rankings Accessed: October 26, 2022. Lehtoranta, S., Malila, R., Särkilahti, M., & Viskari, E.-L. (2022). To separate or not? A comparison of wastewater management systems for the new city district of Hiedanranta, Finland. Environmental Research, 208. https://www.sciencedirect.com/science/article/pii/ S0013935122000913 Accessed: October 26, 2022. Liu, H., Zhong, Y., & Zhang, C. (2021). Energy costs of reducing industrial Sulphur dioxide emissions in China. Sustainability, 13, 10726. https://doi.org/10.3390/su131910726 Macrotrends. (2022). Indonesia Death Rate 1950–2022. https://www. macrotrends.net/countries/IDN/indonesia/death-rate Accessed: October 26, 2022. Najar, N., & Persson, K. M. (2021). A sustainability index within water and wastewater management in Sweden: An evaluation of eight case studies. Water, 13, 1879. https://doi.org/10.3390/w13141879 Okonkwo, C. C., Edoziuno, F. O., Adediran, A. A., Ibitogbe, E. M., Mahamood, R., & Akinlabi, E. T. (2021). Renewable energy in Nigeria: Potentials and challenges. Journal of Southwest Jiaotong University, 56(3), 528–539. Powerforall. (2022). Powering jobs census 2022: Focus on Nigeria. https://www.powerforall.org/countries/nigeria?gclid=CjwKCAjw2 OiaBhBSEiwAh2ZSP5iNePM6nGJYJGKt-96YorBFPP_iFYXktp TWEO-QnMSRXUJvARJDMhoCQ2gQAvD_BwE Accessed: October 26, 2022. Rahman, M. M., Alam, K., & Velayutham, E. (2021). Is industrial pollution detrimental to public health? Evidence from the world’s most industrialised countries. BMC Public Health, 21, 1175. https:// doi.org/10.1186/s12889-021-11217-6 Stakeholderdemocracy. (2022). Renewable Energy Potential in Nigeria Low-carbon approaches to tackling Nigeria’s energy poverty. https://www.stakeholderdemocracy.org/portfolio/renewable-energypotential-in-nigeria/?gclid=CjwKCAjw2OiaBhBSEiwAh2ZSP2sRl xuPfn4LpANEbPsTot9iQmxnGyZ7a32izqreTQBkUha7uvklpxoC DtgQAvD_BwE. Accessed: October 26, 2022.

Quality of Life in the Big Data and AI Economy: Modern Experience and Future Perspectives Sabina E. Savzikhanova , Zarema A. Gasanova , Natalia M. Fomenko , Tamila I. Isabekova , and Nigara E. Eminova

Abstract

Keywords

The purpose of this paper is to discover the connection between the Big Data and AI economy and the quality of life in developed countries. For this, the following methods are used: systematisation, statistical method, and method of comparison. We elaborate on the influence of the Big Data and AI economy on the quality of life under the conditions of the functioning of developed countries and consider the directions of the development of intellectualization in the main spheres of economy and society’s activities in 2020–2021 in the USA, Germany, Ireland, and Canada. We determine that in these countries, which are the leaders in implementing intellectualization, the main spheres of innovations are as follows: healthcare (USA); security and civil rights protection (USA, Germany, and Canada); management of trade (e-commerce), economic, and financial directions in the main spheres, including human resources management (Germany); innovations in material engineering, machine learning in chemical industry; the sphere of consulting for provision of logistical operations, outsourcing operations, and HR policy (Ireland). We prove the connection between the development of intellectualization within the development of the Big Data and AI economy and the quality of life of the population and describe the perspectives of further formation and development of these two variables and the necessity for their activation in developing countries.

Big data AI Intellectualization Civil rights protection

S. E. Savzikhanova (&) . Z. A. Gasanova . N. E. Eminova Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected]

. .

.

Quality of life

.

JEL Classification

L86

1

. . L90

O30

Introduction

A current economic tendency is the transition to the new technological mode, which is related to the change in productive forces and production relations. A challenge for the society, formed by the digital transformation, led to the emergence of new technological products and services, the formation of new forms of socio-economic relations, methods of digital interaction between the subjects of commodity markets, and the integration of isolated sectoral markets and sectors of the economy. Digitalization of the economy, which is based on the advantages of the use of Big Data, accelerates the use of AI, robotics, and cloud technologies in managerial and production processes. However, the dynamic formation of the global digital market in the international economic system is accompanied by substantial socio-economic contradictions between developed countries and institutionally underdeveloped countries. Thus, we shall consider the dependence between the development of the Big Data and AI economy and the quality of life. To achieve the goal of this research, we shall determine the state of the quality of life in the given developed countries of the world and assess the countries’ ranking by the criterion of the development of Big Data and AI.

N. M. Fomenko Plekhanov Russian University of Economics, Moscow, Russia T. I. Isabekova Dagestan State Technical University (DSTU), Makhachkala, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_81

405

406

2

S. E. Savzikhanova et al.

Literature Review

Let us consider the literature sources on the issues of evaluation of the quality of life and the analysis of the implementation of the Big Data and AI economy. Pruinelli (2021) presents the analysis of the level of implementing Big Data and AI in the work of the U.S. healthcare system, paying special attention to the assessment of the American developers’ approaches to the formation of the clinical solutions’ models that ensure high effectiveness of the interaction between medical personnel and patients and their treatment at different stages. The materials of (Krass et al., 2021) include the classification and description of the modern information and analytical products that are created with the use of AI means in evaluation and forecasting of the risks of COVID-19 with persons from different social groups. Sun et al. (2021) contains the analysis of the modern state of security governance at the global and national levels. The authors formulate a range of systemic solutions for the improvement of the data security sphere within the development of intellectual products of AI. Кaya and Aydin (2019) studies the issues of using the intellectual and information platforms of a German company SAP in various spheres of trade (including in the aspect of the use of the e-commerce mechanism). Rodrigues et al. (2021) presents the analysis of the directions of implementing the intellectualization means in the innovative development of the chemical industry of Ireland. The literature review has shown that many scientific works elaborate on the isolated directions of implementing the Big Data and AI economy, but there is a need for a comprehensive search of the issues of dependence between the distinguished estimated parameters.

3

Materials and Methods

We use the method of systematization to determine the leaders in the sphere of implementing the Big Data and AI economy. The statistical and comparative methods are used to analyse and compare the statistical materials on the quality of life, with the help of the Quality of Life Index. The Quality of Life Index has been developed by Economist Intelligence Unit since 2013. The analysis of (Economist Intelligence Unit, 2022) shows that this index includes data characterizing nine factors that describe the quality of life of the population. Table 1 presents the dynamics of this indicator for 2020–2021 on the example of the selected developed countries of the world (the USA, Germany, Ireland, and Canada). The analysis of the materials allows determining the position of the studied countries in the world ranking of

implementation of the Big Data and AI economy (Table 2). This ranking was formed based on the evaluation of the results of achievements of the largest companies in these countries in the sphere of Big Data and AI in 2020–2021.

4

Results

As shown in Table 2, the USA is the leader in the sphere of using the products and tools of Big Data and AI in various spheres of the economy. These sectoral directions are as follows: • Healthcare. According to Pruinelli (2021), the USA uses interactive apps for managerial decision making in the clinical work of nurses (these products are based on the integration of Big Data and AI). According to Krass et al. (2021), the USA started a wide implementation of the information and analytical products related to the use of AI means in the assessment and forecasting of COVID-19 risks with people from various social groups in 2020– 2021. • Sphere of security and civil rights protection. The information solutions in this sphere are connected to software that is used for the monitoring of the information content and protection of civil rights under the conditions of the use of network resources (Sun et al., 2021). The leading companies that develop, implement, and maintain software and apps in the sphere of security and protection of rights are IBM, Oracle, Google, and BigPanda. As one of the leaders in the sphere of implementing the Big Data and AI economy, the USA does not have the key positions in the Quality of Life Index (14th in 2020 and 15th in 2021). Despite the fact that the USA is not among the top 10 countries in the Quality of Life Index, the country’s positions in this sphere are very high, which is due to the development and implementation of the Big Data and AI economy, which was particularly important during the 2020 pandemic. In 2020, social distancing increased and the necessity to use the products of the Big Data and AI economy (in medicine, e-commerce, etc.) grew. Accordingly, an important identifier of the influence of the development of the Big Data and AI economy on the Quality of Life Index in the USA is the growth of the population's employment (from 56.8% in 2020 to 58.4% in 2021) (Statista, 2022a). Assessment of the data from Table 2 allows stating that Germany is ranked 2 ns in the sphere of using the products and tools of Big Data and AI in everyday activities and sectors of the economy. According to Кaya and Aydin (2019), the spheres of their use are as follows:

Quality of Life in the Big Data and AI Economy: Modern Experience and Future Perspectives

407

Table 1 Dynamics of the quality of life index in the USA, Germany, Ireland, Canada in 2020–2021 No

Indicator/country

2020

2021

3

4

5

Rank

14

15

1

Score

172.11

166.98

−5.13

Element with the highest score—level of material well-being of citizens

109.52

102.58

−6.94

Rank

9

8

−1

Score

179.78

176.76

−3.02

Element with the highest score—level of material well-being of citizens

102.36

93.72

−8.64

Rank

18

20

2

Score

163.47

159.99

−3.48

Element with the highest score—level of material well-being of citizens

95.09

82.76

−12.33

Rank

27

27

0

Score

153.53

150.89

−2.64

Element with the highest score—level of geographical and climate data

89.13

89.13

0

1

2

1

USA

2

3

4

Change, ±

Values

Germany

Canada

Ireland

Source Prepared by the authors based on Numbeo (2022)

• sphere of managing the trade (e-commerce), economic, and financial directions in the main sphere, including in the aspect of human resources management (intellectual and analytical solutions in the sphere of HR policy, interactive apps for the interaction between the government and citizens in the social sphere); • sphere of national and personal security (interactive apps and platforms for the interaction between the government and citizens). Germany’s rank in the Quality of Life Index grew by 1 position. However, there was observed a decrease in the material well-being of citizens caused by the consequences of the COVID-19 pandemic and the global economic crisis. On the whole, a high level of implementation of the Big Data and AI economy in the main spheres of economy and everyday activities allows the German government to retain positions in the Quality of Life index. In 2020–2021, Canada was ranked 3rd in the sphere of implementation of the Big Data and AI economy. The sphere of security is the key direction of implementing the products and means of the Big Data and AI economy (Jensen, 2021). The products of intellectualization in the sphere of data protection provision are used in all sectors of the economy. As is seen in Table 2, Ireland is ranked 4th in the world by implementing the products and tools of the Big Data and

AI economy at the level of economic sectors and everyday activities of the population. 2021 saw an increase in the volume of this market from USD 2.27–2.39 billion, which was caused by the growth of the number of intellectual products and forms of integration of platforms and participants of the market. The largest use of the products and solutions of the Big Data and AI economy in Ireland was noted in the following spheres: • innovations in material engineering and machine learning in the chemical industry (Rodrigues et al., 2021) (highest achievements—Accenture); • consulting on the provision of logistical operations, outsourcing operations, and HR policy (highest achievements—Accenture). In 2020–2021, Ireland was ranked 27th in the Quality of Life Index. Thus, we can see the dependence of the influence of the implementation of the Big Data and AI economy on the level of the Quality of Life Index, which was stable during the pandemic and the overcoming of the negative consequences of this phenomenon and the global economic crisis. We are able to state that the demonstrated connection between the development of the Big Data and AI economy and the quality of life in the studied developed countries will

408

S. E. Savzikhanova et al.

Table 2 Position of the selected countries in the world ranking of the implementation of the big data and AI economy in 2020–2021 No

Indicator/country

Change, ±

Rank 2020

2021

1

2

3

4

5

1

USA

1

1

0

List of the leading companies

IBM, Oracle, Google, SAS, Microsoft, Alteryx, Cloudera, Tibco, AWS, Teradata, Sisense, Informatica, HPE, Salesforce, Splunk, Qlik, Cogito, VMWare, BigPanda, CenterField, Imply, Bigeye, YugabyteDB, Syncari, Rivery, Cardagraph, Airbyte

IBM, Oracle, Google, SAS, Microsoft, Alteryx, Cloudera, Tibco, AWS, Teradata, Sisense, Informatica, HPE, Salesforce, Splunk, Qlik, Cogito, VMWare, BigPanda, CenterField, Imply, Bigeye, YugabyteDB, Syncari, Rivery, Cardagraph, Airbyte

Growth of the number of products

Volume of the market, USD billion

21

50.1

29.1

List of the leading companies

SAP, RIB datapine

SAP, RIB datapine

Growth of the number of products and forms of partnership

Volume of the market, USD billion

4.48

4.59

0.11

List of the leading companies

Ataccama, Synergo Group, Adastra

Ataccama, Synergo Group, Adastra

Element with the highest score

Volume of the market, USD billion

2.641

2.905

0.264

List of the leading companies

Xilinx, Accenture, Veritas, Nuritas

Xilinx, Accenture, Veritas, Nuritas

Growth of the number of products and forms of partnership

Volume of the market, USD billion

2.27

2.39

0.12

2

3

4

5

6

Germany

Canada

Ireland

Other countries of the world Volume of the market, USD billion

127.509

102.615

-24.894

Volume of the world market, USD billion

157.9

162.6

4.7

Source Prepared by the authors based on Businesswire (2022), Market data forecast (2021), Mordor intelligence (2022), Prnewswire (2021, 2022), Research and markets (2022), Shiau (2022), Statista (2022a, 2022b)

be growing in the long-term. The information high-tech intellectualization of all sectors of the economy and life activities of humans allows ensuring the development of new directions of activities and influences the possibility of development of innovative products, materials, and services, as well as the growth of employment.

5

Conclusion

In this paper, we elaborated on the influence of the Big Data and AI economy on the level of the quality of life under the conditions of functioning of developed countries. We

Quality of Life in the Big Data and AI Economy: Modern Experience and Future Perspectives

considered the directions of the development of intellectualization in the main spheres of economy and society’s activities in 2020–2021 in the USA, Germany, Ireland, and Canada. In these countries, which are the leaders in implementing intellectualization, the main spheres of innovation are as follows: healthcare (USA); security and civil rights protection (USA, Germany, and Canada); sphere of managing trade (e-commerce), economic, and financial directions in the main spheres, including in the aspect of human resources management (Germany); the sphere of innovations in material engineering and machine learning in chemical industry; the sphere of consulting for provision of logistical operations, outsourcing operations, and HR policy (Ireland). We have proved the dependence between the development of intellectualization within the Big Data and AI economy and the quality of life of the population and described the prospects for further formation and development of these two phenomena.

References Businesswire. (2022). Global $243 billion big data market trajectory and analytics to 2027: Age of analytics provides the cornerstone for the disruptive growth and proliferation of big data technologies. https://www.businesswire.com/news/home/20201208005685/en/ Global-243-Billion-Big-Data-Market-Trajectory-Analytics-to-2027Age-of-Analytics-Provides-the-Cornerstone-for-the-DisruptiveGrowth-Proliferation-of-Big-Data-Technologies— ResearchAndMarkets.com. Date of Access April 9, 2022. Economist Intelligence Unit. (2022). The economist intelligence unit’s quality of life index. https://www.economist.com/media/pdf/ qualityoflife.pdf. Date of Access: April 09, 2022. Jensen, K. F. (2021). Big data surveillance and security intelligence: the Canadian case. Intelligence and National Security. https:// www.tandfonline.com/doi/abs/10.1080/02684527.2021.1911394? af=R&journalCode=fint20. Date of Access: April 9, 2022. Кaya, A., & Aydin, Ö. (2019). E-commerce in Turkey and SAP integrated E-commerce system. International Journal of e-Business and e-Government Studies, 11(2), 207–225. Krass, M., Henderson, P., Mello, M. M., Studdert, D. M., & Ho, D. E. (2021). How US law will evaluate artificial intelligence for

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COVID-19. BMJ, 372. https://www.bmj.com/content/372/bmj. n234. Date of Access: April 09, 2022. Market Data Forecast. (2021). Big data market size and growth (2022– https://www.marketdataforecast.com/market-reports/big2027). data-market. Date of Access: April 09, 2022. Mordor Intelligence. (2022). Ireland data center market—Growth, trends, COVID-19 impact, and ForecastS (2022–2027). https:// www.mordorintelligence.com/industry-reports/ireland-data-centermarket. Date of access: April 09, 2022. Numbeo. (2022). Quality of life index by country. https://www.numbeo. com/quality-of-life/rankings_by_country.jsp?title=2021. Date of Access: April 09, 2022. Prnewswire. (2022). Global big data market (2021–2026)—Rise in adoption of technologies and big data analytics presents opportunities. https://www.prnewswire.com/news-releases/global-big-datamarket-2021-to-2026—rise-in-adoption-of-technologies-and-bigdata-analytics-presents-opportunities-301484718.html. Date of Access: April 09, 2022. Prnewswire. (2021). Global big data market to reach $234.6 billion by 2026. https://www.prnewswire.com/news-releases/global-big-datamarket-to-reach-234-6-billion-by-2026–301322252.html. Date of Access: April 09, 2022. Pruinelli, L. (2021). Nursing and data: Powering nursing leaders for big data science. Revista brasileira de enfermagem, 74(4). https://www. scielo.br/j/reben/a/wWDpN9JYhyYbY63yjRLXwxb/?lang= en&format=pdf. Date of Access: April 09, 2022. Research and Markets. (2022). Germany data center market—Investment analysis and growth opportunities 2021–2026. https://www. researchandmarkets.com/reports/5351536/germany-data-centermarket-investment-analysis. Date of Access: April 09, 2022. Rodrigues, J. F., Florea, L., Oliveira, M., Diamond, D., & Oliveira, O. (2021). Big data and machine learning for materials science. Discover Materials, 1(1), 12. https://pubmed.ncbi.nlm.nih.gov/ 33899049/. Date of Access: April 09, 2022. Shiau, W. (2022). Canadian big data and analytics software forecast, https://www.idc.com/getdoc.jsp?containerId= 2021–2025. CA46273521. Date of Access: April 09, 2022. Statista. (2022a). Employment rate in the United States from 1990 to 2021. https://www.statista.com/statistics/192398/employment-ratein-the-us-since-1990/#:*:text=In%202021%2C%20the%20U.S.% 20employment%20rate%20stood%20at%2058.4%20percent. Date of Access: April 09, 2022a. Statista. (2022b). Size of the German big data market from 2015 to 2020. https://www.statista.com/statistics/507715/germany-big-datamarket-size/. Date of Access: April 09, 2022b. Sun, L., Zhang, H., & Fang, C. (2021). Data security governance in the era of big data: Status, challenges, and prospects. Data Science and Management, 2, 41–44.

Improvement of Technical Regulation of Foreign Economic Activity in the EAEU Maryana V. Arkhipova , Igor P. Antonov , Ekaterina A. Redkina , Victoria B. Gorbunova , and Artur A. Pozdnyakov

Abstract

Each participant of foreign economic activity in customs clearance is faced with the need to process a huge number of documents, which must be checked when crossing the border. Among these documents, a special place is occupied by permits. The most common permits are declarations of conformity and certificates of conformity. This may be a certificate of product quality based on technical regulations of the Eurasian Economic Union (TR EAEU), national GOSTs, or other necessary documents, without the presence of which the goods cannot be passed through customs. The methodological basis of the research is represented by logical and comparative-legal methods, methods of system analysis, and the method of theoretical and legal forecasting, the use of which allowed the authors to make proposals to improve technical regulation in the EAEU. Currently, intensive work is carried out in the field of technical regulation, namely, the introduction of unified technical regulations on the territory of the EAEU, developed based on the European models. Many manufacturers, suppliers, and other applicants are already familiar with the conditions of certification and declaration under the TR EAEU and comply with their requirements, which differ significantly from previous standards. However, quite a few participants M. V. Arkhipova (&) . I. P. Antonov . A. A. Pozdnyakov Kaliningrad Branch of the Russian University of Cooperation, Kaliningrad, Russia e-mail: [email protected] I. P. Antonov e-mail: [email protected] A. A. Pozdnyakov e-mail: [email protected] E. A. Redkina Russian State University for the Humanities, Moscow, Russia e-mail: [email protected] V. B. Gorbunova Kaliningrad State Technical University, Kaliningrad, Russia e-mail: [email protected]

in foreign trade activities try to obtain permits without following the required procedures. The control and supervisory bodies of the EAEU regularly identify a considerable number of goods that do not meet the safety conditions. To ensure that the products do not cause harm to the life and health of citizens, customs authorities will introduce strict customs control over compliance with all necessary safety rules of imported products. In other words, the customs authorities check the correctness of all documents required to confirm the conformity of products. When objects of technical regulation are imported into the territory of the EAEU, the need for a permit document is determined depending on the scope of application of the technical characteristics, the Foreign Economic Activity Commodity Nomenclature, and the purpose of the import of goods. The legislation of EAEU member countries and the legislation of the Russian Federation establish certain rules for the import of products for which mandatory conformity assessment is required. According to statistics, about 1000 new types of products are developed every day in different countries. Thus, it is necessary to determine the requirements for the indicators that characterize the quality of these products. As with any system, the system of technical regulation has its flaws. This paper identifies the most pressing problems of technical regulation and proposes measures to address them. The analysis of current problems of technical regulation of foreign economic activity in the EAEU has allowed the authors to justify the need to form a unified system of TR EAEU as a basic tool for developing integration in the EAEU. Keywords

Technical regulation goods

.

Customs control

.

Marking of

JEL Classification

F02

. . F13

K33

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_82

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Introduction

One of the most important goals of economic integration is to ensure the free movement of goods between countries. One of the significant goals of creating the EAEU was to unify the provisions of the legislation on technical regulation to ensure freedom of trade between EAEU members. This issue is regulated in Section X of the Treaty on the Eurasian Economic Union. The prospects for the development of this issue are defined in the Strategic Directions for Developing Eurasian Economic Integration until 2025. The list of 10 measures and 23 mechanisms established by the strategy is actually a road map of this development area. It provides for the development, signing, and implementation of 18 new EAEU legal acts and the introduction of about ten amendments and additions to the Treaty. “This list of measures and mechanisms covers all areas of technical regulation—from the establishment of mandatory requirements for products, where significant results have already been achieved by a single policy within the Union, to such promising areas as product quality assurance systems” (Smitienko, 2012). Customs authorities act as an integral part of this system because they control the importation of goods subject to compliance by checking the correctness of compliance certificates and the accuracy of the information declared (Gorbunova et al., 2020). The current organizational and economic mechanism of customs control of goods subject to conformity assessment allows unscrupulous participants in foreign economic activity to present falsified and invalid certificates of conformity during clearance (Berlova & Chadova, 2019). This legal loophole allows importing goods that do not meet safety requirements into the territory of the EAEU. The compliance with technical regulations of the Eurasian Economic Union (TR EAEU), established by international and national law, must be ensured by customs authorities. The primary goals are as follows: • To ensure the safety of products and all processes related to the sale of these products; • To ensure the safety of exploitation of these products; • To protect the environment and animal and plant life; • To protect consumers from substandard goods and services. The need for a reliable mechanism for controlling the safety of imported goods makes this research relevant. Currently, the range of products released on the market is very large, so the issue of the safety of manufactured goods is of great relevance (Arkhipova et al., 2021).

2

Materials and Method

All data used in the research were obtained from publicly available sources, including Internet resources, official websites of state authorities, materials of international and all-Russian conferences, etc.

3

Results

Technical regulation is a type of state regulation, which implies the introduction of legal instruments to implement the socio-economic and political activities of the state. Rather simplified, technical regulation is a list of specific rules beyond which manufacturers must not go to protect products (goods). Based on the definition of technical regulation, there are services that require specific safety standards (e.g., medical services). These norms must be binding. According to paragraph 1 of Article 2 of the Customs Code of the Eurasian Economic Union, measures of technical regulation are part of the system of prohibitions and restrictions applied to goods transported across the customs border of the Eurasian Economic Union. The outlined approach allows us to define technical regulation as a system of state measures implemented by ensuring the protection of consumers from unsafe products. During the formation of the current Russian economy, it became apparent that the functioning system of standardization and certification needed changes (reforms). The initial step to such changes was the Federal law “On technical regulation” (December 27, 2002 No. 184-FZ), which included the legal norms of the safety of goods and aimed to form a unified policy for quality control of products and services (standardization and certification) (Federation, 2002). It should be noted that standardization and certification are two interrelated concepts. Standardization is an activity that aims to develop, publish, and use standards and norms, as well as to establish characteristics to ensure the protection of goods. A certification is a form of confirmation of compliance of objects to the established requirements carried out by a certification body. Previously, different requirements for different groups of goods were established and defined in unrelated regulatory acts. Thus, the Federal law “On technical regulation” established a unified concept of requirements in the area of ensuring the safety of goods on the market for the first time.

Improvement of Technical Regulation of Foreign Economic Activity in the EAEU

The Federal law “On technical regulation” forms the principles of technical regulation, which are considered the main guidelines for the implementation of activities related to technical regulation, as well as for the development and research of regulatory documentation. Legal acts of national and supranational levels apply to the application of technical regulations. Technical regulations are adopted to ensure the safety of citizens, legal persons, and state property, protect the environment and prevent actions misleading buyers (Republic of Belarus, Republic of Kazakhstan and Russian Federation, 2014). For the free movement of such goods within the EAEU, it is sufficient to obtain a certificate of conformity in any EAEU country. The state law on customs regulation of the EAEU is not authorized to independently carry out customs regulation; its influence extends only to the territory of a particular country, but it must comply with the customs legislation of the EAEU. It should be emphasized that the customs legislation of the EAEU is valid throughout its territory. For facilities located outside the EAEU, there are two levels of regulatory and legal support: national and supranational. Supranational support is a priority. An effective formation of integration processes is rationally implemented considering the existing international skills and experience. The activities of customs authorities are related to management functions in the field of customs affairs on the territory of Russia. Currently, control and supervisory bodies of the EAEU regularly identify a considerable number of goods that do not meet the safety conditions. To ensure that the products do not cause harm to the life and health of citizens, customs authorities introduce strict customs control over compliance with all necessary safety rules of imported products. In other words, the customs authorities check the correctness of all documents needed to confirm the compliance of products. To carry out verification, the customs authorities consult the unified register of certificates (declarations) of conformity, which is presented on the official website of the Federal Service for Accreditation (RusAccreditation). Any interested person can check the registration of the declaration of conformity or certificate directly on the website of RusAccreditation. Customs authorities have an agreement on information exchange with the RusAccreditation. Various technologies for marking and identifying goods and cargoes for customs purposes are currently used worldwide.

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Goods that require mandatory confirmation of compliance with the TR EAEU must be marked with a single circulation mark on the market—EAC. The EAC mark is placed exclusively on products with a certificate or declaration of conformity. Accordingly, if such documentation is not provided, the customs authority has the right to decide to refuse release. In the absence of a conformity mark, the customs authorities may also not let the goods pass the customs border. The customs authorities can verify the authenticity and reliability of the certificate (declaration) of conformity even if the information about the document is presented in the unified register of RusAccreditation. Currently, dozens of technical regulations of the Customs Union for various goods and services have been established and approved. However, all of them have general requirements that must correspond to a certain quality of goods circulating on the territory of the Customs Union. The requirements of technical regulations are applicable to new goods manufactured at the enterprises of the Customs Union and foreign goods imported into the countries of the EAEU. All imported goods, with no exceptions, must meet the criteria of technical regulations. The only difference is that some part of the goods is required to obtain a Certificate of conformity of the Customs Union, and the other part is required to obtain a Declaration of conformity to technical regulations. To understand which of these two documents should be used, one can check the technical regulations for a particular product. Declaration of conformity is issued to the applicant—resident of the EAEU country. This document will indicate that the declared goods meet all requirements of technical regulations. The document is signed by the applicant and sealed. The law provides two types of documents to certify the quality of goods: a certificate and a declaration. When a Declaration of conformity is issued, the applicant is responsible for the quality of the goods, and the certification center is responsible for the quality of the goods for which the certificate is issued. To determine the quality of goods in the EAEU countries, it became necessary to develop technical regulations, which replaced the national standards in each country. New technical regulations are being introduced as countries manage to develop a common approach to standardization. The single EAC sign (“Eurasian Conformity”) shows that the goods marked with it conform to the customs regulations of the Customs Union and can be present on the market of the EAEU. There are two types of marks: black on a white background and white on a black background.

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The declaration must be registered in the appropriate registry maintained by RusAccreditation. As a result, the declaration will be stored under a certain number so that it can be printed or created and saved electronically. Types of declarations of conformity depend on the type of certified products and technical regulations. The document is issued for goods to be produced in series or in batches. If the document is issued for the series, there is a time limit on the validity but no restrictions on the amount of goods imported. The declaration can be issued for a year, two years, or five years. The absence of an EAC mark on the goods transported across the customs border at the time of declaration of goods or incorrect application of this mark is a violation. Participants in the foreign economic activity must comply with all rules for the application of the mark of conformity. Also, to avoid problems at customs, it is recommended to mark the goods before importation into the territory of the EAEU because customs officials strictly control this process, and any violation regarding labeling may lead to administrative responsibility. There is also a problem of presence in the unified register of certificates of conformity and declarations of conformity issued by bodies that do not have the appropriate accreditation or the accreditation of which has already expired. As a solution to this problem, we recommend that participants in a foreign economic activity independently verify the accuracy of the documents used before submitting the declaration to the customs authority. Using the official website for the accreditation of participants in FEA, one can get information about accredited bodies for certification of goods and accreditation deadlines. This information will allow persons moving goods to ensure the authenticity of the documents used in advance. The long period of development and implementation of technical regulations is also the main problem in the area of technical regulation. As a solution to the problem, it is envisaged to accelerate the process of adopting uniform technical regulations, reduce transition periods, and ensure strict regulation of transition periods, which will help avoid double interpretation of regulatory legal acts and ensure compliance with legislation in terms of controlling the compliance of goods with established requirements. One of the activities of customs authorities is control over compliance with the prohibitions and restrictions on the movement of goods across the customs border. The indicator of granting permits, to a certain extent, characterizes this type of activity of customs authorities as state supervisory bodies. In recent years, considerable work has been undertaken to improve the system of technical regulation and control over compliance with it.

M. V. Arkhipova et al.

4

Conclusion

Most of the goods moved across the customs border are subject to conformity assessment. Despite the work performed in the field of technical regulation within the EAEU, there remain many problems and unresolved issues. We can formulate the main problems of technical regulation. One of the acute problems that have arisen recently is the control of customs authorities over the importation of samples for testing to obtain compliance documents. This problem is justified by the fact that the regulatory authorities (e.g., customs authorities, RusAccreditation, Rospotrebnadzor, and other bodies) have tightened control over permits and the conformity assessment procedure. To prevent risks associated with causing harm to human life, health, property, and the environment, a bilateral clarification by the Federal Accreditation Service and the Federal Customs Service of Russia was published on the official website of the Federal Accreditation Service at the end of 2017. This clarification referred to the procedure for importing samples to confirm the compliance of products. Samples are goods that are imported only for testing, research, and sampling. The primary purpose of the clarification was to inform all participants of foreign economic activity (certification bodies, interested parties) about the rules and procedures of importing goods into the Russian Federation, as well as to reduce the time to minimize costs when performing customs operations in relation to products subject to mandatory conformity assessment. The analysis revealed that business entities do not properly ensure the procedure for the importation into the Russian Federation of controlled goods for research and testing of products; the importation of such goods might not be carried out at all. This leads to the fact that the issued certificates of conformity and declarations contain inaccurate information about the documents used as the basis for issuing permits. The only way to solve the problem is the observance of the established procedure for carrying out actions on the control of the conformity of goods by the participants of foreign economic activity and certification bodies. That is, samples of goods must be imported for certification, which, according to the prescribed manner, must be declared to the customs authorities because the declaration of goods is the main document that gives the right to conduct tests and issue documents of conformity. It is also important to note that each technical regulation prescribes its own specific requirements and conditions for labeling.

Improvement of Technical Regulation of Foreign Economic Activity in the EAEU

First, it should be applied to each production unit, packaging, and all necessary supporting documentation for this type of product. However, there are still certain peculiarities for some products (Panova, 2013). An important condition for the application of this sign is readability. That is, the marking must be visible on any background, and the sign of the EAC, respectively, must be clear. Until recently, any inaccuracy or misprint in the labeling of goods transported across the border of the EAEU was considered a valid reason for declaring a certificate or declaration of conformity invalid and initiating an administrative case against a participant in foreign trade. The initiation of cases on administrative offenses for violations related to the requirements of technical regulations and certification and labeling of products is not the responsibility of customs authorities. Customs authorities should transmit information about such violations to the relevant state control authorities for subsequent prosecution of persons. To solve the problem, it is necessary to develop the technical resources of customs services: opening new warehouses, supplying them with all necessary facilities and personnel, and allowing importers to affix the necessary signs on the spot. These measures will significantly shorten the time to release the product. Currently, there is a need to create a unified system of technical regulation that will act as a basic tool for the development of integration in the EAEU. The rapid removal of technical barriers in mutual trade, reliable protection of the domestic market from unsafe products, and improvement of the quality and competitiveness of goods imported into the EAEU depend on how

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quickly and qualitatively the problems hindering the effective application of technical regulation measures are solved.

References Arkhipova, M. V., Bormotova, E. G., Yakushevskaya, E. A., Golovin, Y. O., & Arsentyeva V. S. (2021). International cooperation in the fight against environmental crime: A modern mechanism for combating illegal trade in wildlife. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, O. V. Kaurova, & S. V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics (pp. 889–897). https://doi.org/10.1007/9783-030-57831-2_95 Berlova, N. V., & Chadova, T. V. (2019). The analysis of the current system for ensuring the security of goods transported across the customs border of the Eurasian Economic Union. The Eurasian Scientific Journal, 11(1). Retrieved from https://esj.today/PDF/ 46ECVN119.pdf. Accessed 25 Sept 2021 Gorbunova, V. B., & Pozdnyakov, A. A. (2020). Certain legal aspects of economic security in the field of maritime activities in the Russian Federation. In A. V. Karpushkina (Ed.), Problems of economic security: New solutions for key economic development trends (pp. 222–231). Publishing House of the South Ural State University. Panova, A. S. (2013). On the peculiarities of the technical regulation on the WTO law. Business, Management and Law, 1(27), 60–65. Republic of Belarus, Republic of Kazakhstan and Russian Federation. (2014). Treaty on the Eurasian Economic Union (May 29, 2014, as amended October 1, 2019). Retrieved from https://docs.eaeunion. org/docs/ru-ru/0027353/itia_05062014. Accessed 23 Sept 2021 Russian Federation. (2002). Federal law “On technical regulation” (December 27, 2002 No. 184-FZ). “Consultant Plus” law assistance system. Retrieved from http://www.consultant.ru/document/cons_ doc_LAW_40241/. Accessed 25 Sept 2021 Smitienko, B. M. (Ed.). (2012). International economic relations: Textbook (2nd ed.). INFRA-M. Retrieved from http://www.library. fa.ru/ve_files/works/international.pdf. Accessed 23 Sept 2021

Prospects for the Sustainable Development of Countries: Review of International Experience

Program-Targeted Approach to the Innovative Development of Industrial Economies Under the Modern Post-COVID Conditions Igor V. Chistov , Sergey E. Zakutnev , and Igor V. Bulava

innovative and industrial development during the period of crisis phenomena.

Abstract

Purpose: The purpose of this work is to assess the perspectives of using the directions of the programtargeted approach to the innovative development of industrial economies under the modern post-COVID conditions. Design/methodology/approach: The following methods were used: systematization, comparative method, and trend method. Findings: We assessed the perspectives of using the directions of the programtargeted approach to the innovative development of industrial economies under the modern post-COVID conditions. This research allowed proving the proposed hypothesis on the experience of using the directions of the program-targeted approach to the innovative development of only those productions that have competitive positions (issue of products with high value-added). Such countries as China, Ireland, and Switzerland were able to ensure high results of the economic development (including industrial) due to the effective industrial and innovative policy, which is oriented at the development and increase in the main advantages of the leading spheres and manufacture of products with high value-added. We proved that there is an urgent necessity for the modernization of industry and the search for new perspectives of production to implement innovations. Originality/value: The scientific novelty of this research is connected to expanding the approaches to the assessment of using the directions of the program-targeted approach to the innovative development of industrial economies under the modern post-COVID conditions and developing the empirical data on the formation of strategies of the I. V. Chistov (&) . S. E. Zakutnev Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] I. V. Bulava Financial University Under the Government of the Russian Federation, Moscow, Russia

Keywords

. .

.

.

Program-targeted approach Post-COVID conditions Industrial economies Value-added Global innovation index Modernization of industry

.

JEL Classification

L6

1

. . . . L7

N1

N5

O3

Introduction

The necessity to raise the level of competitiveness of the industrial sectors implies an increase in the level of products’ value-added and the growth of product’s innovative characteristics. Orientation at the reduction of export of resources and growth of export of innovative products in all sectors of industry predetermined the need to create of own technologies and the use of external technologies and innovative solutions. The processes of modernization of national industries with the use of innovative technologies require substantial financial, material, and technological resources and a perspective planning of the procedures of their accumulation and distribution for the achievement of the set goal. The effective use of financial, material and human resources requires preliminary long-term planning of their use in the strategically important—for the development of the national economy—directions. At the current stage of development, the targeted programs are an inseparable tool of the effective management in countries that are oriented at industrial development, which ensures the effective use of the approaches of targeted programming in the sphere of innovative and technological activity and influences the stimulation of high growth rates through the issues of products

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_83

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with high value-added. The main research hypothesis of this research is the idea of the experience of using the directions of the program-targeted approach to the innovative development of only those productions that have competitive positions (manufacture of products with high value-added). Achieving the goal of this research supposes solving the following tasks: (1) Discovering the character of the directions of the program-targeted approach to the innovative development of industrial economies under the modern post-COVID conditions; (2) Evaluating the post-COVID perspectives of using these directions by the example of the tendencies of factual implementation during the pandemic.

2

Literature Review

The issues of using the program-targeted approach to the innovative development in the economy (including the industrial sector) were studied by various scholars at the theoretical, methodological, and empirical levels. There are also studies on the assessment of the innovative development of national economies and their sectors under the influence of a crisis. Alidrisi (2021) presents a study of the issues of new modern directions of production innovations, which are connected to the environmental concept of development. Alidrisi (2021) and Roukanas (2021) formulate the comparative characteristics of GII industrial economies of various levels. These results form an idea of the connection between this indicator, its transformations, and the level of national industries. Schlegel et al. (2022) dwell on the problems of development of applies studies in Switzerland and assess their effectiveness at the level of regions. The authors found out that the effects of applied innovations and return on expenditure on them, allocated by the state within the targeted programs, take place within the territories with high-tech industrial companies. Gonnova and Razuvaeva (2021) formulate directions and topics of R&D that are implemented by Russia within the cooperation with R&D institutions of CIS Countries. Yasinskii and Kozhevnikov (2022) studied a new economic strategy of China for 2020–2035 (“Double Circulation”). This strategy implies the modernization of industry with an orientation at two circles of consumers, namely internal market and world market. Cunningham et al. (2020) and Jeannerat & Theurillat (2021) dwell on the establishment of industrial sectors in the

context of the orientation at the use of the program-targeted approach in the innovative sphere. Analysis of the above scientific works showed that they elaborate only on certain aspects and are fragmentary (determining the use of the program-targeted approach at the level of isolated economies and productions). Thus, there is a need for further research on the given topic.

3

Materials and Method

This work is aimed at evaluating the perspectives of using the directions of the program-targeted approach to the innovative development of industrial economies under the modern post-COVID conditions. The following methods were used for this. The method of systematization was used to assess the programs of technological and innovative development of countries. Comparative analysis was used to compare the characteristics of the innovativeness of countries’ development. The trend method was used to determine the characteristics of implementing the directions of the program-targeted approach to the innovative development of countries during the pandemic. This research was performed by the example of the leading industrial countries of the world: China, Ireland, Switzerland, and Russia. For the purpose of this research, it is necessary to identify the state of innovative development of the studied countries. This is done with the help of the indicator GII (Table 1). This indicator is calculated as a ratio of the resource component that is necessary for the innovative development (five estimated parameters: institutional, R&D and human capital, infrastructural, state of the internal market, and state of the business environment) to the component connected to the practical results of innovations (economic results, growth of the knowledge economy, and technological growth). According to the researchers (Alidrisi, 2021; Yasinskii & Kozhevnikov, 2022), large values of the indicator GII and high positions in the ranking belong to countries with the industrial economy that is oriented at the manufacture of products with high value-added (innovative products). That is, the authors emphasize the connection between high innovativeness and high results of the industrial sector's products. Accordingly, apart from determining the innovativeness of countries, it is necessary to present information about their expenditures for R&D (including in the sphere of the industrial sector). This indicator shall be assessed with the help of the parameter Gross domestic spending on R&D (% of GDP) (GDS on R&D (% GDP)), which is published by the OECD. Its value over the studied period is presented in Table 1.

Program-Targeted Approach to the Innovative Development of Industrial Economies …

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Table 1 Score and Rank GII, Gross domestic spending on R&D in China, Ireland, Switzerland, and Russia over 2018–2020 Country / Indicator

Transformations, ±

Value 2018

2019

2020

in 2019 compared to 2018

In 2020 compared to 2019

2

3

4

5

6

Score

53.06

54.82

53.28

1.76

−1.54

Rank

17

14

14

−3

0

GDS on R&D (%GDP)

2.141

2.235

2.14

0.094

−0.095

1 1. China GII

2. Ireland GII Score

57.19

56.1

53.05

−1.09

−3.05

Rank

10

12

15

2

3

GDS on R&D (%GDP)

1.166

1.228

1.31

0.062

0.082

Score

68.4

67.24

66.08

−1.16

−1.16

Rank

1

1

1

0

0

GDS on R&D (%GDP)

3.115

3.124

3.126

0.009

0.002

3. Switzerland GII

4. Russia GII Score

37.9

37.62

35.63

-0.28

−1.99

Rank

46

46

47

0

1

GDS on R&D (%GDP)

0.99

1.039

1

0.049

−0.039

Source compiled by the authors based on (INSEAD, & the WIPO, 2021; OECD, 2022)

These materials are used to evaluate the factual and prospective efficiency of using the directions of the program-targeted approach to the innovative development of industrial economies.

4

Results

The main directions of the program-targeted approach to the innovative development of industrial economies are considered in Table 2. Their perspectives in the post-COVID conditions are also analysed. Analysis of the results from Tables 1 and 2 showed the following. (1) Before the pandemic, in 2018–2019, China demonstrated the domination of the orientation at the government programs of investing in innovative development with provision of conditions for private investments in certain spheres. In 2018 and 2019, the share of private investments in the industrial sector equalled 30%. During the pandemic, this indicator grew by 4%, equalling 34%. In 2020, the investment

development of industry was reoriented at the strategy of double circulation of production. China’s approach to the innovative development of industry demonstrates effectiveness, which is proved by the results of the economic development (2nd position in the world by GDP) under the conditions of the negative influence of the pandemic and trade conflicts. Accordingly, the selected strategy of the innovative development with the focus on the modernization of industry is a perspective for the post-COVID period. (2) Before the pandemic (2018–2019) and during the 2020 pandemic, Ireland developed private investing in the innovative development of the industrial sector (growth from 69 to 73.8% in the total R&D expenditures). Despite a decrease in the country’s positions in the sphere of innovations, investments in the targeted programs were effective. This led to the growth of GDP in 2020 compared to 2019. (3) Switzerland uses the targeted programs of investing in innovations with the focus on the growth of the share of private investments. Swiss targeted programs are very effective now and in the long term.

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Table 2 The main directions of the program-targeted approach to the innovative development of the industrial economies of China, Ireland, Switzerland, and Russia before the pandemic and in the modern post-COVID conditions Transformations, ±

Country

Directions / characteristics 2018–2019

2020

In 2020 compared to 2018–2019

1. China

Domination of the government programs of investing in the innovative development, the existence of the conditions for private investment in innovations in certain spheres (30% of financing). The program-targeted approach is the main tool of the government's influence on the technological development of the country. A special role in the practice of the program-targeted planning and management belongs to the programs of mastering the achievements of science and technology. Innovations are oriented at the modernization of industry

Tendencies of investing in the innovative development of industry given the orientation at a high quality and sustainable production for internal consumers, and external standards—for the world market. Orientation of innovations—at sustainable modernization of industry

Growth of the share of private investing in innovations: by 4% in the total volume of expenditures for R&D

2. Ireland

Public–private partnership in investments in innovative development (including in the industrial sector) Domination of private investments in innovative development (in 2018–2019— 69% in the total volume of R&D expenditures) Spheres of application of the targeted programs—the ones oriented at the manufacture of products with high value-added (aviation industry, machine building, electric energy, sewing industry, and food industry)

Share of private investment in innovative development—73.8% in total R&D expenditures

Growth of the share of private investing in innovations: by 4.8% in the total R&D expenditures

3. Switzerland

Public–private partnership in investments in innovative development (also in the industrial sector) Domination of the share of private investments in innovative development (in 2018–2019 – 65% in the total R&D expenditures) Spheres of the implementation of targeted programs of investing in innovations are those aimed at the manufacture of products with high value-added (watchmaking, specialized equipment, precision machines, and chemical and pharmaceutical products)

Share of private investment in innovative development—67.2% in the total R&D expenditure

Growth of the share of private investing in innovations: by 2.2% in the total expenditures for R&D

4. Russia

Public–private partnership in investing in innovative development (also in the industrial sector) 47% accounted for private partnership in the total R&D expenditures in 2018 Spheres of implementation of the targeted programs of investing in innovations are the ones traditional for industry (Basic metals, Food industry, Mining industry)

Share of private investments in innovative development—44.5% of the total R&D expenditures

Decrease in the share of private investing in innovations: by 0.5% in the total R&D expenditures

Source Compiled by the authors based on (Cunningham et al., 2020; Gonnova & Razuvaeva, 2021; Jeannerat & Theurillat, 2021; Schlegel et al., 2022)

Program-Targeted Approach to the Innovative Development of Industrial Economies …

(4) Over 2018–2020, Russia moved towards a reduction of the share of private investment in the innovative development of the industrial sector. An important feature is an orientation at the financing of the upgrade of production capacities that are used in the manufacture of products with low value-added. Russia does not have strategic preconditions for the development of industrial spheres through implementing the targeted innovative programs. The current targeted programs of support for innovations are aimed at the traditional spheres of industry.

5

Conclusion

We evaluated the perspectives of using the directions of the program-targeted approach to the innovative development of industrial economies under the modern post-COVID conditions. We proved the hypothesis on the experience of the use of directions of the program-targeted approach to the innovative development of productions that have competitive positions (manufacture of products with high value-added). Such countries as China, Ireland, and Switzerland ensured high results of the economic development (including industrial) due to the effective industrial and innovative policy, which is oriented at the development and increase in the main advantages of the leading spheres and manufacture of products with high value-added. As for the use of the program-targeted approach in the innovative development of Russia’s industrial sector, we found out that innovations are used in the spheres connected to the manufacture of products with low value-added. Such policy did not ensure the

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economic effect during the 2020 pandemic. So there is a need to modernize industry and search for new perspective productions for implementing innovations.

References Alidrisi, H. (2021). The development of an efficiency-based global green manufacturing innovation index: An input-oriented DEA approach. Sustainability, 13(22). https://www.mdpi.com/20711050/13/22/12697/htm. Accessed 18 Mar 2022 Cornell University, INSEAD, and the WIPO. (2021). Global Innovation Index 2020. Who Will Finance Innovation? http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed 18 Mar 2022 Cunningham, J. A., Collins, P., & Giblin, M. (2020). Evolution of Ireland’s industrial, science and technology policy. Annals of Science and Technology Policy, 4(2), 80–210. Gonnova, S. M., & Razuvaeva, E. Y. (2021). Cooperation in the field of science and technology innovation between the CIS Countries. Scientific and Technical Information Processing, 48, 194–199. Jeannerat, H., & Theurillat, T. (2021). Old industrial spaces challenged by platformed value-capture 4.0. Regional Studies, 55, 10(11), 1738–1750. OECD. (2022). Gross domestic spending on R&D Total, % of GDP, 2000–2020. https://data.oecd.org/rd/gross-domestic-spending-on-rd.htm. Accessed 18 Mar 2022 Roukanas, S. (2021). “Measuring innovation of Countries” in economies of the Balkan and Eastern European Countries. KnE Social Sciences, 1, 157–189. Schlegel, T., Pfister, C., Harhoff, D., & Backes-Gellner, U. (2022). Innovation effects of universities of applied sciences: An assessment of regional heterogeneity. The Journal of Technology Transfer, 47, 63–118. Yasinskii, V. A., & Kozhevnikov, M. Y. (2022). Double circulation: A growth model for the chinese economy in the next fifteen years. Studies on Russian Economic Development, 33, 118–125.

State and Corporate Management of Industrial Economies for Their Sustainable Development and Recovery After the Pandemic Sergey A. Golubtsov , Alexey I. Laptiev , and Maxim A. Polezhaev

Abstract

JEL Classification

In this paper, we identify the approaches to using state and corporate management of industrial economies to ensure the parameters of sustainable development and the post-pandemic recovery of the economy. For this, we use the statistical method, trends method and method of systematisation. The novel approach of this research consists in the elaboration on a system of approaches to the management of industrial development as a factor of sustainable development and economic growth of countries in the course of the fight against the consequences of crises (including pandemics). We identify the effective approaches to managing industrial development, which allow overcoming the crisis situations in the economy and implementing the UN SDGs. We also determine countries that were able to reach the positive influence of the use of such approaches in the context of efficiency growth.

L16

1

. . . . L21

L23

L51

L53

Introduction

S. A. Golubtsov (&) Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected]

Modern society is developing under the conditions of various cultures, economies and traditions of organisation of corporate and state and corporate connections, which predetermines the specifics and efficiency of development (market share, level of GDP, level of implementation of the UN SDGs and the level of socio-economic development). Globalisation envisages the focus on maintaining the universal market (corporate) characteristics of managing industrial sectors, but not all countries are equally committed to international standards, though they demonstrate an active desire to export products in the leading markets of the world. Given the above, studying the approaches to the management of industrial development is important in the context of determining the positive experience of reformation and improvement of managerial mechanisms and strategies. The goal of this paper lies in determining the modern approaches to using corporate and state management of national industries for the provision of parameters of sustainable development and recovery of the economy after the pandemic. The tasks solved in this research are as follows: determining the level of influence of industrial development on sustainable development and economic development of the selected countries (after the pandemic); characterising approaches to industrial development in the context of state and corporate management.

A. I. Laptiev LLC “Gazprom Mezhregiongaz Makhachkala”, Makhachkala, Russia e-mail: [email protected]

2

Keywords

. . .

. . . .

Approaches to management UN SDGs Economic growth Industrial development Corporate management State management Responsible production Industrial potential

M. A. Polezhaev LLC “Logistics System”, Moscow, Russia e-mail: [email protected] RUDN University, Moscow, Russia

Materials and Method

Directions and practical problems of approaches to the industrial development of certain countries are considered in Brown (2020; Camacho et al. 2020; Du & Yang, 2022;

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_84

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Nykänen, 2020; Yılmaz, 2019), etc. However, the scholars do not dwell on the problems of the impact of transformations of industrial on the state of the economy and sustainable development, including under the conditions of the fight against the negative manifestations of COVID-19. Thus, it is necessary to systematise the provisions of fragmentary studies and to perform a comprehensive analysis of the influences of industry changes on the economy and sustainable development. Analysis of the results of the transformations of industrial development, economic state and sustainable development of countries is performed based on the statistical method, which is necessary for the collection of official indicators. The trends method is used to determine the dynamics of the indicators in the course of overcoming of the consequences of the pandemic in the selected countries. The method of systematisation is utilised to generalise the characteristics of managing industrial development and to identify the approach that is most typical for a specific country during its fight against the pandemic’s consequences. Indicators that are used in this research are as follows: • Industrial Production Index (IPI), which characterises the state of industrial production of countries for 07.2021– 07.2022 (the period of overcoming of the consequences of the pandemic) (Countryeconomy, 2022); • Sustainable development Index (SDI), which determines the level of sustainable development of countries for the studied period (Sustainable development report, 2022); • Economic Performance Ranking (EPR), which is the indicator of national economic development (IMD, 2022). We further consider countries that demonstrated the growth of the industry during the period of overcoming of the pandemic’s consequences (07.2021- 07.2022).

3

Results

Let us study the influence of the development of industry (IPI) on the dynamics of sustainable development (SDI) and the level of economic development (EPR) of the selected countries in 07.2021―07.2022. The state approach is the influence of the state on the support for certain industrial companies, sectors and regions that were focused—for a long time—on the production (processing) of a certain type of products (Du & Yang, 2022; Nykänen, 2020). Such support implies a breach of market balance, since the needs for the development of other subjects of industry and sectors are ignored, and the top-priority direction of support is selected at the government level. At that, corporate management suggests the focus on the market mechanism of the development of industrial sectors and companies.

Analysis of the results presented in Table 1 allows determining the following provisions of the impact of industrial development (IPI) on the indicators of achievement of the UN SDGs (SDI) and economic development: 1. High industrial development in Peru in the studied period (37.1%) led to the improvement of sustainable development (by 0.84 points) and improvement of the ranking of the economic state (by 20 positions). This is due to the loyal policy of the central and municipal governments toward the development of corporate management that is connected with foreign capital. Since 2011, Canadian corporations invested in and performed the management of the mining sector in Peru (Brown, 2020). The main directions of investments are the upgrade of equipment and technologies, increase in living standards of personnel and growth of employment of the territories in which productions are located. This is a corporate stimulation & innovative approach. This led to the growth of GDP per capita (2011‒ $5,738.13, 2013‒$6,631.3, 2017‒$6,728.08, 2019‒ $6,963, 2022‒$7,034.45) (Statista, 2022). Accordingly, the selected approach to industrial management allowed ensuring the development of such a component of sustainable development as human development, with an increase in GDP, which is an indicator of economic growth. The use of such an approach to the management of the mining industrial sector of Peru allowed supporting the economy and population after the pandemic, during which (in 2020 compared to 2019) HGDP per capita reduced by 12% (Statista, 2022). This approach’s peculiar feature is the commitment to responsible corporate management, which is based on the focus on the achievement of SDG 8. 2. Sufficient growth of industrial production in Turkey (8.7%) led to improvement in the achievement of the UN SDGs (growth of SDI by 0.03 points) and provision of positive results within the ranking of economic development (EPR). The management of industry is based on such an approach as corporate political connections (a form of public–private partnership that is implemented in Turkish business). This approach suggests a balance of interests of the government and corporate sectors. The mechanism of management, which is based on corporate political connections, implies the formation and creation of productiveness, provision of employment, and participation in the projects of product supply (including international). Among Turkish enterprises that demonstrated integration in the world markets and that use such an approach, it is possible to distinguish the companies of the defence industry:

State and Corporate Management of Industrial Economies …

427

Table 1 Dynamics of the changes of IPI, SDI and EPR of the selected countries in the period of 07.2021–07.2022 Country

Dynamics of the indicators, ± IPI (+ positive result, −negative result), %

Peru

37.1

SDI (+positive result, −negative result), points 0.84

EPR (-positive result, + negative result), rank −20

Romania

13.5

2.75

15

Slovenia

12.2

−1.65

−5

Cyprus

10.5

−0.64

25

Turkey

8.7

0.03

−9

Sweden

8.5

−0.42

5

Czech Republic

8

−0.92

−5

Poland

7.7

0.32

Lithuania

7.6

−0.98

Estonia

7.1

Germany

6.8

-0.96 −0.3

2 10 4 2

Spain

5.7

0.44

−7

Latvia

5.5

1.13

10

Italy

4.9

−0.42

2

Austria

4.9

0.24

4

France

4.6

−0.43

Hungary

4.5

0.23

Finland

4.3

Ireland

3.8

−0.3

0.61

Netherlands

3.4

−1.71

China

2.9

0.32

USA

2.7

−1.46

−11 0 10 −15 17 0 −2

Source Created by the authors based on (Countryeconomy, 2022; IMD, 2022; Sustainable development report, 2022)

• SaSaD (a government-owned organisation that manages all corporations in the defence industry); • Aselsan (a private company that deals with large defence orders from the government at the national and international level; revenue: $2.25 billion in 2021) (Hurriyetdailynews, 2022); • YONCA-ONUK JV (a private corporation that is among the top 10 enterprises in the sphere of military production (military boats of various categories); it cooperates with 8 ministries and government departments in Turkey and is actively involved in international cooperation) (Yonca-onuk, 2022); • Nurol Makina (a private company that manufactures armoured vehicles; public–private cooperation in the issues of international integration in the markets of Europe and Asia) (Nurolmakina, 2022). Analysis of the development of the companies of the Turkish defence industry shows that the government actively participates in this development given the high

value added of their products. The selected sectors of Turkish industrial production develop at the level of Organized Industrial Zones (OIZs). Their number was 346 at the beginning of 2022. These territorial forms of industry organisation are located in 81 cities of Turkey, and their activities account for approximately 30% of national export and employment for more than 30% of the population employed in industry (two million people). OIZs function on the basis of the considered approach to management within corporate political connections. Within these industrial areas and at the level of public–private partnership, favourable conditions for the development of production are created (communal sphere, scientific base, offices, logistics bases, outsourced services on the processing of production waste). The pandemic demonstrated the problem aspects of the industrial development of companies in the functioning of these industrial areas. The year 2021 saw the creation of a project on reformation, which suggested two directions for raising competitiveness and efficiency (Worldbank, 2021):

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• Reformation of the infrastructural sphere and provision of affordable energy and water (green investments), based on the implementation of SDG 6, SDG 7, SDG 12 and SDG 13; • Upgrade of technological and technical provision of production, which is necessary for the growth of the quality of products and reduction of waste. 3. Spanish industry grew by 5.7%, which was among the drivers of improvement in the level of sustainable development (by 0.44 points) and improvement in the economic state. This is a positive result of industrial companie’s management during a difficult period. Industrial companies used the approach of corporate social responsibility in the sphere of environmental protection and human development. According to Camacho et al. (2020), this allowed raising the efficiency of the sectors that had been unprofitable (mainly in the resources markets). The use of the approach of corporate social responsibility in the period of post-pandemic recovery in Spain was especially important for industrial companies, which had been unprofitable or had had low profitability. It is worth mentioning that the Spanish mining sector has been demonstrating high results since 2020, due to investments and production management by foreign investors (Canadian) (Panglobalresources, 2022). Canada participates in the provision of sustainable development (primarily in the social and economic spheres) of the industrial sectors of other countries, which have a large export resource potential but do not have investment funds for the upgrade of equipment and technologies or financing of social projects. For Spain, reliable and continuous investments in the development and recovery of industrial sectors that suffered from the pandemic’s consequences and from a long financial crisis (2008–2015), are very important.

4

Discussion

The described approaches to the management of industrial development to achieve sustainable development and recovery after the pandemic demonstrated that variants of state and corporate management are used. Each of the variants will be effective if there are corresponding preconditions for the development. The example of implementation of corporate political connections (a variant of public–private partnership), which is used in Turkey, could be successfully adapted in countries with reliable support for business and domination of certain aspects of the regulatory management of the economy.

Depending on the resource, economic and socioenvironmental potential, countries with a market economy can focus on the use of the described variants of corporate management of industry (corporate stimulation and innovative approach, approach of corporate social responsibility). Adaptation of these approaches is possible in the case of the emergence of a need for improvement of the strategies of industrial development at the level of territories, regions and countries. Implementation of corporate stimulation and innovative approach is possible in the case of the presence of the following factors: high industrial potential with an export character; the existence of interested corporations-investors that are focused on production management or participation in it on the contractual basis (these might be foreign investors if this is allowed by the national legislation).

5

Conclusions

It is very important to assess the possibilities, advantages and problems of implementing the described approaches to the reformation or improvement of national industry. It is also very relevant to perform a forecast evaluation of possible scenarios of the emergence of negative consequences of the development of industry and economy on the whole as a result of the implementation of a certain approach. Countries without the necessary methodological, organisational, legal and financial basis cannot quickly implement green energetics projects in industrial sectors that might influence the achievement of SDGs and economic growth. Accordingly, in this case, it is necessary to attract international organisations that can ensure the conditions for the achievement of the project goals. Industrial companies and territories with a high potential of international integration, which are located in countries with a socially oriented economy, search for the optimal directions and variants of sustainable balancing of the economic, environmental and social components and determine such a course in their strategies of development. In countries where business does not formulate SDGs there emerge problems in the social and environmental spheres, which eventually influence the level of the economy, which is especially dangerous in the period of pandemics and post-pandemic recovery.

References Brown, S. (2020). Foreign aid, the mining sector and democratic ownership: The case of Canadian assistance to Peru. Development Policy Review, 38, O13–O31. https://doi.org/10.1111/dpr.12454 Camacho, J. A., Ruíz-Peñalver, S. M., & Rodríguez, M. (2020). Identification of leading hazardous waste generating industries with

State and Corporate Management of Industrial Economies … high improvement potential in Spain. Science of the Total Environment, 731, 139207. https://www.sciencedirect.com/science/article/abs/ pii/S0048969720327248. Accessed 15 Oct 2022 Cambridge University Press. (2022). Sustainable development report. https://dashboards.sdgindex.org/rankings Accessed 15 Oct 2022 Countryeconomy. (2022). Industrial Production Index. https:// countryeconomy.com/business/industrial-production. Accessed 15 Oct 2022 Du, W., & Yang, Y. (2022). The coordinated development of manufacturing industry and logistics industry in the Yangtze River economic belt: Empirical study by stages based on Haken Model. PLoS ONE, 17(2), e0263565. https://doi.org/10.1371/journal.pone. 0263565 Hurriyetdailynews. (2022). Turkish firms among world’s top defense companies. https://www.hurriyetdailynews.com/turkish-firms-amongworlds-top-defense-companies-176018. Accessed 15 Oct 2022 IMD. (2022). Economic performance ranking. https://www.imd.org/ centers/world-competitiveness-center/rankings/world-competitiveness/. Accessed 15 Oct 2022 Nurolmakina. (2022). Mission and Vision. https://www.nurolmakina. com.tr/en/corporate#section_kalite_metin. Accessed 15 Oct 2022

429 Nykänen, N. (2020). Strategic path dependence and state management: Exploring historical roots of regional lock-in. In Paper presented at Academy of Management Annual Meeting, Virtual, Online. https://doi.org/10.5465/AMBPP.2020.18659abstract Panglobalresources. (2022). About Pan Global Resources. https://www. panglobalresources.com/about-pan-global. Accessed 15 Oct 2022 Statista. (2022). https://www.statista.com/statistics/459326/gross-domesticproduct-gdp-per-capita-in-peru/. Accessed 15 Oct 2022 Yılmaz, N. B. (2019). The performance implications of corporate political ties: Government-business relations in Turkey. In Ç. Doğru (Ed.), Handbook of Research on Contemporary Approaches in Management and Organizational Strategy (pp. 317–336), IGI Global. https://doi.org/10.4018/978-1-5225-6301-3.ch016 Worldbank. (2021). Turkey’s Organized Industrial Zones to Become More Effient, Environmentally Sustainable with Help from World Bank. https://www.worldbank.org/en/news/press-release/2021/01/ 25/turkeys-organized-industrial-zones-to-become-more-effientenvironmentally-sustainable-with-help-from-world-bank. Accessed 15 Oct 2022 Yonca-onuk. (2022). About Yonca-onuk. https://www.yonca-onuk. com/about. Accessed 15 Oct 2022

Credit Cooperation in Russia: Problems and Possible Solutions Daria O. Maslakova , Ksenia A. Nefedova , Olga B. Yares , Svetlana A. Galaktionova , and Elena V. Kirova

Abstract

Keywords

The article carries out a study, which aims at identifying problematic parties and searching for proposals for their solution and also at developing the sector of credit cooperation in the regions of Russia. In the course of the study, the methods of comparative analysis, synthesis, a systematic approach to data evaluation, as well as the dialectical method are used. This study provides an assessment of the development of credit cooperation in Russia in general and in the context of individual regions in particular. The main factors are grouped according to the directions of the total number of credit cooperatives operating, ceasing their activities and undergoing liquidation or reorganization from 2017 to 2020. The article also provides clarifications on the implementation of various measures aimed at the development of credit cooperatives. The work identifies and analyzes the most promising directions for the development of credit cooperation in Russia, which makes it possible to ensure the formation of positive dynamics of key indicators in this area.

Cooperation cooperative

D. O. Maslakova . O. B. Yares Vladimir State University named after Alexander and Nikolay Stoletovs, Vladimir, Russia e-mail: [email protected] K. A. Nefedova (&) . S. A. Galaktionova . E. V. Kirova Vladimir branch of the Russian University of Cooperation, Vladimir, Russia e-mail: [email protected] S. A. Galaktionova e-mail: [email protected] E. V. Kirova e-mail: [email protected]

..

.

Microfinance Lending Financial market

.

Consumer

JEL Classification

G21

1

Introduction

For a general understanding of the development of credit cooperation in Russia, an analysis of the main statistical data and data, which is provided by the Central Union of the Russian Federation on the number of consumer cooperatives, was carried out. Currently, there are about 2300 cooperatives in this country located in 71 constituent entities of Russia. In the context of this number, 102 regional consumer unions and more than 1,300,000 shareholders can be distinguished (Official Website of the Centro Soyuz of the Russian Federation 2021). Let's analyze the basic regulatory framework that defines norms and concepts according to the research topic. Federal Law No. 190-FZ of 18.07.2009 “On Credit Cooperation” discloses the concept of “credit cooperation” presenting it in the form of interrelated elements of the system of credit consumer cooperatives, distinguishing them by the species composition and levels of unions or associations, as well as other communities (Federal Law No, 2009). Federal Law No. 196-FZ of July 13, 2020 “On Amendments to Certain Legislative Acts of the Russian Federation” clarifies the concept of “credit consumer cooperative”. In the context of this law, the following interpretation of this concept is formulated and designated “in the form of legal entities or individuals based on membership of a voluntary association, which has certain principles: territorial, social, and (or) professional” (Federal Law No, 2009 ).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_85

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The data presented above make it possible to form the basis for further research on the development of credit cooperation in Russia, as well as identify key problems and possible solutions.

2

Materials and Methods

The study is based on data from the regulations of the Central Bank of the Russian Federation and the Ministry of Economic Development of Russia. The existing registers were systematized by the subjects of the microfinance market for the main purpose of analysis.

3

Results

Ezrokh notes in his research that “after a significant period of the formation of a market economy, the direction of credit cooperation is in a disorderly state, and it’s also unstable”. The authors agree with his judgment because the purpose of the study is based on the search for problem points in the development of this direction and the formation of various ways to solve them (Ezrokh, 2018). While creating favourable and promising conditions for the credit cooperative movement, it’s necessary to analyze the factors that may affect the development of credit cooperation in Russia today (Nagumanova, 2013). They will allow the development of a credit cooperative network, within which “proven” financial services will operate. An opportunity to educate members of the cooperative movement in the basics of economics would be also provided if it’s necessary. In Russia, the number of consumer credit cooperatives increased in 2020 compared to 2019. In the country as a whole, the growth rate of this indicator amounted to 129.1%,

in Moscow and the Moscow region the increase was 141.7%, in St. Petersburg and the Leningrad region— 111.2%, the regions showed an increase of 127.9%. All of the results of these statistics are presented in Fig. 1. Considering the dynamics of the quantitative indicator of credit consumer cooperatives, presented in Fig. 2, it can be determined that 2020 was unsuccessful for the Russian Federation as a whole, and the total losses amounted to 22.8%. Directly Moscow and the Moscow region lost about 55.3%, for St. Petersburg and the Leningrad Region is also characterized by negative dynamics by 42.8%, the regions of the Russian Federation showed a minimum loss of 3.5%. Thus, despite the overall growth of consumer credit cooperatives, their share in the total composition of NPOs significantly decreased in 2020, which is caused, among other things, by the spread of the new coronavirus infection and the closure of some enterprises of various forms of ownership and activities—of clients of credit companies. One of the key problems facing the credit cooperative movement is the lack of a collective resource base to provide a quality financial product (Krivoshapova & Vetlugin, 2019). This analysis showed that the degree of involvement of the economically active population in credit cooperation is quite high in several countries. So, in the USA this figure is about 50%, and in Ireland, it’s about 100% involvement of the economically active population in the cooperative movement. In European countries, credit cooperatives are advanced ecosystems with their mobile developments, ATMs, logistics, and shops. Many cooperatives have already started to implement new technologies, such as blockchain and neural networks. In addition, cooperative banks are actively developing in world practice. Let’s start a selective analysis of the system of credit cooperation in Russia with an analysis of its main elements:

Russian Federation

1,525

1,969

316 223

Moscow and Moscow Region 89 80

St. Petersburg and Leningrad Region Subjects of the Russian Federation

1,222 0

500

2020

Fig. 1 The number of credit consumer cooperatives in 2019–2020. Official website of the Central Bank of the Russian Federation 2019– 2020 Source Compiled by the authors based on the reports of the

1000

1500

1,564 2000

2019

Central Bank of the Russian Federation “Registers of Microfinance Market Entities” (2021)

Credit Cooperation in Russia: Problems and Possible Solutions Fig. 2 The number of credit consumer cooperatives used to determine at least 26% of the total number of financial institutions from 2017 to 2020 within NPOs. Source Compiled by the authors based on data from the Central Bank of the Russian Federation (registers of microfinance market entities) Official website of the Central Bank of the Russian Federation (2021)

433

108 Russian Federation 83 21 Moscow and Moscow region 20

97

140

47

29

4

7 5 8

St. Petersburg and Leningrad region

Subjects of the Russian Federation 55 0 2020

• Infrastructure; • Methods of protecting the interests of shareholders and cooperative identity; • Regulatory environment. Considering the “infrastructure” element, the authors identified such features, as the inaccessibility of a well-functioning settlement system for credit cooperatives, the lack of stable functioning, and the lack of guarantees for the safety of savings (Pozhar, 2020). Such the existing problems, as the absence of a system for attracting resources and capital to carry out operational activities, the insufficient approaches used to form an insurance base associated with emerging risks of the activities of credit cooperatives, the lack of a mechanism for training, retraining, and assessing the qualifications of personnel can be also noted. To eliminate the identified problems and ensure the growth of the credit cooperative movement in the context of the infrastructure element, it’s necessary to pay attention to the barriers in the regulatory area (Androsova, 2016) that exist not only in Russia but also in foreign legislation. One of the key problems mentioned is the limited opportunities for credit cooperatives (non-profit organizations) to create commercial legal entities. There is an opinion that to resolve this issue, it also needs to develop the Russian movement of credit cooperatives, which will allow solving the issues of competitiveness in the financial market and the problem of pooling resources. The next point is the protection of the interests of shareholders and cooperative identity (Zhilina, 2011). The lack of uniform “standards” in the ideology and principles of work of credit cooperatives led to a partial loss of the

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cooperative model and, as a result, to a decrease in the number of active members participating in the public life of society. Currently, such credit cooperatives are aimed only at generating profits, which are often obtained through the sale of consumer credit cooperatives. Another problematic point is the functioning of credit cooperatives based on the business model of microfinance organizations, which prevents them from adhering to basic principles and moving towards the regional and interregional expansion of their zones. It should be noted, that the problem of fraud associated with financial pyramids is also relevant. The authors believe that it arose due to the lack of an effective mechanism for protecting the interests of shareholders and personal savings. The solution to the identified problems in the context of this element consists in the development and implementation of standards and the improvement of existing mechanisms, which will allow separating “real” from pseudo-cooperatives and attract new participants, forming a positive image of credit cooperation. The third element, which is highlighted within the framework of this study, is the regulatory environment that can be difficult and burdensome for credit cooperatives. Let’s note that the Central Bank of Russia determines the regulation of the credit cooperation system through the adoption and use of legal norms (Official Website of the Central Bank of the Russian Federation, 2021). But the participants in the credit consumer cooperation movement have an opinion about the presence of unworked directions. From the author’s point of view, it’s necessary to focus on measures of state support, due to consumer credit cooperatives being small businesses and they need it like no one

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else. Another right should be the receipt from the state of appropriations for programs included in the list of national development of the country’s economy, as well as the development of the self-regulatory function of the market. It’s necessary to improve the principle of proportional regulation, supervision and inspection actions, which will be correlated with the volume of activities of credit cooperators.

4

Discussion

For the required level of development of credit cooperation, it’s necessary to develop a development strategy capable of differentiating into modern economic and legal conditions of national, as well as global fluctuations. The main change has to be the development of a draft law that can make it possible to use the norms of cooperative management and create conditions for the real involvement of members of cooperatives in management. The result of these innovations should be the minimization of the risks of creating financial pyramids in the form of credit cooperatives.

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Conclusion

Thus, in this study, the authors talk about pressing problems in the area of credit cooperation, caused by various macroeconomic factors (Zhilina, 2011). To solve the problems, which were discussed in the article, infrastructural

regulatory cooperative changes are needed to eliminate the identified shortcomings and ensure the competitiveness of credit cooperatives in the financial market.

References Androsova, L. (2016). Credit cooperation of the Russian Federation: Problems of development. Innovative Science, 8(1), 1–5. Ezrokh, Y. (2018). Credit cooperation in Russia: Accumulated problems and ways to solve them. Bulletin of the Moscow State University, 6(1), 82–103. Federal Law No. 190-FZ of July 18, 2009 “On Credit Cooperation”. http://www.consultant.ru/document/cons_doc_LAW_89568/. Accessed 10 Sept 2021 Federal Law No. 196-FZ of 13.07.2020 “On Amendments to Certain Legislative Acts of the Russian Federation”. http://www.consultant. ru/document/cons_doc_LAW_357069/ . Accessed 10 Sept 2021 Krivoshapova, S., & Vetlugin, D. (2019). The Role of Credit Cooperatives on the financial market of Russia. Azimuth of Scientific Research: Economics and Administration, 8(1), 1–8. Nagumanova, E. (2013). Credit cooperation of the Volgograd region: History and current state. The Strategy of Sustainable Development of the Regions of Russia, 14(1), 1–6. Official Website of the Central Bank of the Russian Federation. https:// cbr.ru/microfinance/registry/. Accessed 17 Sept 2021 Official website of the Centro Soyuz of the Russian Federation. https:// rus.coop/ru/geography/. Accessed 10 Sept 2021 Pozhar, A. (2020). Agricultural and credit cooperatives in the context of globalization, 10(1), 1‒11. Zhilina, N. (2011). Credit consumer cooperatives of citizens in the credit system of the Russian Federation. Finance and Credit, 43 (475), 27–41.

Leasing as an Effective Tool for the Implementation of Investment Projects in Different Countries Edward A. Arustamov , Leonid P. Dashkov , Dmitry I. Valigursky , Ilgiz I. Nurtdinov , and Diliara R. Abdrakhmanova

Abstract

JEL Classification

First of all, the essence of leasing is substantiated as an economic category for the development of production, technology and business. The current state of the economic situation is substantiated from the point of view of the need for business development. It is concluded that a large number of domestic enterprises are in dire need of updating fixed assets, in technical re-equipment and production, the introduction of the latest technology, new generation machines, modern technologies.

G22

Keywords

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. . . ..

Leasing Investment project Fixed assets Re-equipment of production facilities New generation machines Modern technologies Competitiveness Leasing company Lease agreement Leasing agreement

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E. A. Arustamov (&) . L. P. Dashkov . D. I. Valigursky Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] L. P. Dashkov e-mail: offi[email protected] D. I. Valigursky e-mail: [email protected] E. A. Arustamov State University of Education, Mytishchi, Russia I. I. Nurtdinov Kazan Cooperative Institute (Branch) Russian University of Cooperation, Kazan, Russia Kazan State Medical University of the Ministry of Health of the Russian Federation, Kazan, Russia D. R. Abdrakhmanova Kazan Federal University, Kazan, Russia

.

1

Introduction

The aggregate volumes of leasing services performed are analyzed. It is especially substantiated that, in the conditions of the global crisis, leasing is becoming the most important stimulating factor in the development of many types of business. It is important that the advantages and disadvantages of leasing in the context of the normalization of the economic state of the state are revealed. Further, the most important indicators of the development of the leasing market in Russia are analyzed and an assessment of the activities of the top 10 of its leasing companies by the volume of activities of this type of business for the first half of 2021 is given. Further, it is noted that large corporate segments such as rail, air and water transport were recognized in 2020 as the most affected by the pandemic. The cost of leasing increased, and the growth in the number of new contracts concluded had a positive effect on the amount of leasing contracts. The article not only discloses the importance of leasing as an effective tool for the implementation of investment projects, but also reveals the results of their leasing activities in a highly competitive market environment using the example of real companies.

2

Methodology

In the theoretical substantiation of leasing as an effective tool for the implementation of investment projects, scientific and educational developments of the authors (Arustamov et al., 2001; Nurtdinov, 2016a, 2016b, 2016c; Vakhitov et al., 2020) and the Internet information given in the literature

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_86

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(Agency & “Expert RA”, 2021; Equipment Leasing & Finance Association, 2021; Leasing, 2021; Leasing & in the US-Market Size, 2021; Unidroit Convention on International Financial Leasing 1988 are used.

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Results

In the current economic situation, a large number of domestic enterprises are in dire need of updating their fixed assets, technical re-equipment of production facilities, introduction of modern competitive technology, a system of machines and automated lines of a new generation. Technologies are required and are being consistently developed. In this situation, the development of leasing and leasing business, the most effective financial instrument in all areas of the economy, is capable of rendering assistance to entrepreneurs. The growth in the volume of leasing operations in monetary terms every year more and more noticeably outstrips the growth of the main macroeconomic indicators. And the popularity and growth of leasing operations, to some extent, is a kind of evidence of the development of the country's economy as a whole. Further analysis of the state and development of the leasing market is based on materials from the following Internet sources (Agency & “Expert RA”, 2021; Equipment Leasing & Finance Association, 2021; Leasing, 2021; Leasing & in the US-Market Size, 2021; Nurtdinov, 2016b; Unidroit Convention on International Financial Leasing 1988). The total volume of leasing services as of 01.07.2021 amounted to 5.6 trillion rubles, which is 7% more than the total volume of financed funds. The national economy and its structural subsystems are at the investment and innovation stage of competitiveness. The factors of the competitive advantages of business entities today are investments and innovations. The success of consumer cooperation organizations will largely be determined by their investment opportunities and susceptibility to technical, technological, organizational, managerial and other innovations. In the context of the global financial and economic crisis, the availability of financial resources for enterprises in all spheres of activity has significantly decreased. Now leasing is one of the real solutions to financial problems, investment problems, both at the national level and in the regions. As an example, we note that the Republic of Tatarstan currently has regional programs to support technical re-equipment using leasing of various sectors of the republic's economy, including enterprises of the consumer cooperation system. A confirming example is the activity of the “Leasing Company of Small Business of the Republic of Tatarstan” (LLC), which, within the framework of the “Leasing-Grant” program, purchases the necessary technical means and equipment for the winners of this program,

including for the enterprises of “Tatpotrebsoyuz”. According to the Agency for Investment Development of Retail Trade, the interest of enterprises and consumer cooperation organizations in the state support program, which has grown significantly, has significantly increased. This program of state support for leasing projects gives consumer cooperation great opportunities to upgrade outdated machinery and equipment and switch to the production of higher quality products in the interests of success in the competition in this market segment. It is possible to solve the problem of renewing fixed assets and find a lever for financial recovery, using leasing as a tool for developing the consumer cooperation system, which will contribute to an increase in the efficiency of the functioning of not only the organizations of the consumer cooperation system, but also the entire agro-industrial complex of the Russian Federation. Leasing is one of the active forms of business, which has not yet received proper distribution in the economies of many countries and even in the United States. For example, the equipment leasing finance industry in the United States exceeds 1 trillion dollars. This sector includes companies and manufacturers involved in financing the production of capital goods. One of the largest leasing companies is the Equipment Finance and Leasing Association (Equipment Leasing Equipment Leasing and Finance Association—ELFA), which has 580 members. These include independent and exclusive leasing and finance companies, banks providing financial services to corporations, investment and brokerage banks, and equipment and service manufacturers and suppliers. According to ELFA, about 80% of US companies lease some or all of their equipment. The main advantages of leasing are as follows: 1. The fastest, sometimes immediate, access to the world's most advanced technique and technology; 2. The equipment received is shown in the income statements as leased, and not by purchasing it, which makes the company's balance sheet less liquid; 3. Monthly payments become lower than when applying for loans; 4. Obtaining a fixed rate of financing, instead of a floating one, as well as tax incentives; 5. Possibility of receiving large advance payments; 6. Working capital preservation. Leasing also has its drawbacks: 1. In the long term, the price of equipment may rise, 2. Leasing obliges to keep the equipment for a set period of time, which can become problematic if the business is in constant motion.

Leasing as an Effective Tool for the Implementation of Investment Projects in Different Countries

For many small businesses, leasing is the only way to equip a company and office with new equipment. Large enterprises use leasing to receive permanent service and periodic renewal of equipment. The 12 main industries in which leasing is used and their areas of activity over the past 10 years are listed below. This list includes the following industries: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Agriculture, Building, Use of materials, Other industrial applications, Medicine, Oil and mining industry, Aircraft construction, Shipbuilding, Railway industry, Freight industry, Computer industry, Software.

Let's look at the main provisions of leasing agreements, in which it is necessary to: 1. Fully define the role of all parties to the contract, even if it goes with a subsidiary or leased facility; 2. Reflect duration, terms, rental conditions, amount and payment options; 3. Establish the responsibility of the parties for maintenance and repair; 4. Reflect the policy and legislative governing agreements included in the contract; 5. Reflect the terms of contract closure. In the United States, for example, there are hundreds of lease agreements and laws in every state, and they must comply with the laws of the landlord's state, regardless of who the other parties to the agreement represent. Analysis of the leasing market in Russia for 2020 indicates the following: 1. There was a 6% decrease, the reason for which was a decrease in the volume of large transactions in the segments of railway, aviation technology and real estate. 2. Problematic contracts of retail leasing companies amounted to 10% on 01.01.2021, and in corporate companies it was 23%; 3. The overall asset quality of corporate companies was largely dependent on the state of the aviation industry.

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An analysis of the volumes of completed leasing operations led us to the following conclusions: (1) The resulting reduction in profits pushed banks to actively develop the leasing business; (2) Operating leasing may become one of the main trends in the coming years if low interest rates in the economy continue; (3) The demand for operating leasing will grow not only in car leasing, but also in the segments of electronic and household appliances; (4) At the same time, the pandemic that has occurred has contributed to the acceleration of the process of digitalization of the business of leasing companies; (5) It also stimulated the demand for leasing of telecommunications equipment, the volume of which increased by 57%. 2020 had the following impact on the leasing industry: 1. The first half of 2020 ended with a sharp drop in the Russian leasing market by 22%; 2. The second half of 2020 made it possible to significantly reduce the contraction of the Russian market, and, as a result, at the end of the whole year, its volume in the Russian Federation amounted to 1 410 billion rubles, showing a negative trend of 6%. At the same time, leasing volumes in Europe decreased even more—by 32% (according to Leaseurope). The reason was longer and tighter restrictions due to the situation and tighter coronavirus restrictions. In the first half of 2021, according to the “Expert RA” rating agency, the volume of the leasing business amounted to 945 billion rubles, which is 66% more than the same period last year. The growth of the market, compared to last year, is due to the low indicators of the previous year due to the significant restrictions imposed at that time due to the epidemiological situation. However, the segment of car leasing showed a large increase (+73%). This is mainly due to the recovery in car sales and growth in demand for car sharing and taxi services. Business recovery in 2021 after last year's lockdown contributed to the growth of new construction equipment business by 88%. According to the indicators presented by the Expert RA Rating Agency, the leader on July 1, 2021 in terms of the volume of new leasing agreements is “Gazprombank Leasing” in the amount of 147,029 million rubles, followed by “Sberbank Leasing” with a volume of 123,938 million

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rubles, then there is “Transport Leasing Company” with a volume of 114,502 million rubles and “VTB Leasing” closes the top four with new leasing agreements in the amount of 105,166 million rubles. According to these data, the following conclusions can be drawn: 1. The largest decrease occurred in the real estate leasing segment (−87%), which can be explained by the high base of 2019; 2. There was a decrease in the volume of transactions of the largest state-owned companies; 3. The decrease in the volume of transactions in such large corporate segments as railway equipment and aircraft equipment was due to the epidemiological reason; 4. The adopted quarantine restrictions and the related drop in demand for carrier services exacerbated the situation and led to a reduction in leasing in the segments of large corporations by 26 and 15%. In general, over the past 5 years, the leasing market has decreased, which was largely due to the negative dynamics of large corporate companies. In contrast to this, the main market driver—car leasing—showed an increase in the volume of new business by 8% thanks to the development of the taxi fleet and the growth of car-sharing services.

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Discussion

A significant increase in prices for leasing entities and an increase in the number and volume of transactions in concluded agreements had a positive effect on the volume of leasing activities, as a result, according to the results of the first half of 2021, it increased by 66%. The total volume of leasing transactions as of July 1, 2021 amounted to 5.6 trillion rubles, which is 7% more than at the beginning of 2021. Basically, for these reasons, at the end of the first half of 2021, there were significant changes: the leader was replaced and Gazprombank Leasing, which significantly increased the volume of its activities in the first half of this year by 2.7 times compared to last year for the same period, moved up to the first place. The second place belongs to Sberbank Leasing, which added 21%. The 3rd position was taken by STLC (+27%). However, in aggregate, the share of the first three companies in the 1st half of 2021 decreased from 30% a year earlier to 25%.

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Conclusion

Thus, the article not only discloses the importance of leasing as an effective tool for the implementation of investment projects, but also reveals the results of their leasing activities in a highly competitive market environment using the example of real companies. The participation of co-authors in the study and coverage of this topical problem in the world is reflected in the literature below (Agency & “Expert RA”, 2021; Arustamov et al., 2001; Equipment Leasing & Finance Association, 2021; Leasing, 2021; Leasing & in the US-Market Size, 2005– 2027, 2021; Nurtdinov, 2016a, 2016b, 2016c; Unidroit Convention on International Financial Leasing 1988; Vakhitov et al., 2020), and the experience of other countries is based on a personal study of the situation during the period of creative trips abroad by one of the authors.

References Arustamov, E. A., Pakhomkin, A. N., Platonov, A. P., & Rykova, I. V. (2001). Organization of entrepreneurship. Tutorial. Moscow University of Cooperation. Commercial Leasing in the US-Market Size 2005–2027. (2021). https:// www.ibisworld.com/industry-statistics/market-size/commercialleasing-united-states/#:*:text=The%20market%20size%2C% 20measured%20by,to%20increase%208.7%25%20in%202021. Data Accessed 02 Dec 2021 Equipment Leasing and Finance Association. (2021). http://www. elfaonline.org. Data Accessed 9 Dec 2021 Equipment Leasing. (2021). https://www.entrepreneur.com/ encyclopedia/equipment-leasing. Data Accessed 25 Nov 2021 Nurtdinov, I. I. (2016a). Leasing as a tool for renewing fixed assets of consumer cooperation. Fundamental and Applied Research of the Cooperative Sector of the Economy, 3, 98–102. Nurtdinov, I. I. (2016b). Leasing as a tool for renewing fixed assets of consumer cooperation. Scientific Journal “Fundamental and Applied Research of the Cooperative Sector of the Economy”, 3, 98–102. Nurtdinov, I. I. (2016c). Using insurance instruments for reduction the risks in international leasing operations. Globalization and its socio-economic consequences. In 16th International Scientific Conference Proceedings. ZU - University of Zilina, 5th-6th October 2016c, Rajecke Teplice, Slovak Republic. (pp. 1579–1587). (Web of Science). Rating Agency “Expert RA”. (2021). https://www.raexpert.ru/ researches/leasing/9m2021a. Data Accessed 25 Nov 2021 Unidroit Convention on International Financial Leasing. (1988, May 20). https://online.zakon.kz/Document/?doc_id=1016273. Data Accessed 9 Dec 2021 Vakhitov, D. R., Samovich, Y. V., Nurtdinov, I. I., & Sharifullin, R. A. (2020). International legal and domestic leasing regulation at the current stage of government administration implementation in the conditions of scientific and technological development. Revista Inclusiones, Issues, 7(3–5), 665–675 (Web of Science).

Optimization of the Use of the Potential of Specially Protected Natural Areas Within the Framework of the Sustainable Development of Domestic Tourism in the Russian Federation Valeriya S. Khetagurova , Elena M. Kryukova , Sergey G. Erokhin , Natalya V. Lutovinova , and Vera V. Chizhikova different anthropogenic pressure. In general, the conducted research contributes to the convergence of the tourism industry with the system of protected areas for its sustainable development.

Abstract

The paper aims to substantiate recommendations for optimizing the rational use of specially protected natural areas to develop ecotourism in Russia effectively. During the research, the authors use several methodological approaches, including analytical method, method of tourist and recreational zoning, cartographic method, and complex analysis of anthropogenic pressure on protected areas. Based on the analysis of international practice, the authors form proposals for the selection of territories for the priority development of ecotourism; the preference is given to federal protected areas with a high tourist and recreational potential. This work discusses the results of the development and application of a unified comprehensive methodology for assessing and calculating the anthropogenic and tourist load on specially protected natural areas of various types, considering the entire range of factors determining them. This also allows functional zoning of the territory, considering the maximum allowable load for each of the zones. The method proposed in this research for a comprehensive assessment of indicators related to various areas of regulation of the load on specially protected natural areas (SPNA) allows unifying the system of indicators for various types of SPNA, comparing the results for all types of SPNA, and analyzing the state of various functional zones with V. S. Khetagurova (&) . E. M. Kryukova . S. G. Erokhin . N. V. Lutovinova . V. V. Chizhikova Russian State Social University, Moscow, Russia e-mail: [email protected] E. M. Kryukova e-mail: [email protected] S. G. Erokhin e-mail: [email protected] N. V. Lutovinova e-mail: [email protected] V. V. Chizhikova e-mail: [email protected]

Keywords

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Tourist and recreational potential Domestic tourism Ecological tourism Specially protected natural areas Rationing of anthropogenic load Sustainable development

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JEL Classification

R10 P48

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R100

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Z3

O1

O3

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P45

P47

Introduction

In recent decades, the world community has been actively discussing the problems of sustainable development of the world. The World Conservation Union has proposed the following formulation of sustainable development: “Sustainable development is a process in which development occurs without damage to resources and their depletion, which makes development possible” (Maloletko et al., 2018). The travel and tourism industry can contribute to environmental and social sustainability. The “Agenda for the twenty-first century” formulated a very profound idea that the tourism industry has enormous potential, allowing it to make a constructive contribution to the sustainable development of regions (United Nations Conference on Environment and Development (UNCED) 1992). Tourism allows earning much money, improving the economy, creating jobs, and attracting significant investments from international financial institutions, which is indirectly important for the environment. After all, a favorable environmental situation

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_87

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is also important to attract tourists. Even when tourism is not aimed at obtaining recreational resources, the funds raised allow investing in environmental protection and the education of environmental behavior in people, which, in turn, positively affects nature. The main thing to keep the balance is to create favorable conditions for tourists and not disturb the balance of the region’s ecosystem with the huge number of tourists. The growing globalization of the world economy also requires a global responsibility for the conservation and protection of nature. The crisis in the global tourism industry market, caused by the sanitary and epidemiological situation, the main reason of which is the COVID-19 pandemic, poses the task of a detailed analysis and optimization of the use of the tourist and recreational potential of Russian territories to determine the strategy for the development of the domestic tourism industry (Kryukova & Khetagurova, 2020). The lack of environmentally oriented tourism planning and management can lead to socio-economic and environmental problems, which, in turn, will lead to a decrease in tourist interest in destinations that are often surrounded by unique and, at the same time, highly vulnerable ecosystems (Tsyrenova, 2010). To solve emerging problems, it is advisable to use rational nature management and planning based on a deep analysis of the situation, assessing the loads on the environment (Kryukova et al., 2021). Reorientation to the domestic tourism market determines the need to involve new territories in the tourism sector (Kaurova et al., 2013). Specially Protected Natural Areas (SPNA) can serve as the object of a reasonable integrated approach. The development of tourism in protected areas is an example of nature conservation and reasonable human interaction with it. Ecotourism becomes one of the best means of counteracting consumer attitudes towards nature (United Nations Conference on Environment and Development (UNCED), 1992). It allows learning the surrounding world without harming it. Ecotourism also has a range of additional opportunities for rational cooperation between government, business, and non-governmental public organizations (Information and Analytical System “Specially protected natural territories of Russia” (IAS “SPNA RF”), 2021). Thus, tourism does not run counter to environmental problems; on the contrary, realizing the importance of preserving nature, it is looking for ways to use it rationally to meet the needs of tourists.

2

Materials and Methods

The primary purpose of the research is to substantiate recommendations for optimizing the rational use of SPNA within the framework of implementing the concept of developing domestic tourism in the domestic market (Federation, 2018). The research is based on the following methodological approaches: the analytical method, the

method of tourist and recreational zoning, the cartographic method, and comprehensive analysis of the anthropogenic load on protected areas. The result of the work at this stage of the research is a set of proposals for the optimization and rational use of the tourist and recreational potential of SPNA to develop ecological tourism. An assessment of the possibilities of using the analyzed methods (the templeological method, the method of identifying tourist capacity, the calculation of permissible and optimal loads, and the method for identifying the main functions of SPNA), considering different approaches to assessing the various components of SPNA, revealed their features and the impossibility of their application to all types of protected areas (Astanin, 2019). A comprehensive assessment of the anthropogenic pressure on SPNA, including the value of natural and cultural objects in the assessment of the indicator, and a unified system for monitoring the state of the environment can increase the opportunities for the development of ecological tourism in SPNA, considering their status position.

3

Results

Tourism, for which the natural complex is a resource, is highly interested in its preservation (Matraeva et al., 2019). Compared with other industries, tourism is interested in regulating anthropogenic impacts on natural complexes, creating environmentally efficient technologies (Andros, 2017). Currently, ecological tourism has received significant development, which has become a noticeable socioeconomic and environmental phenomenon on an international scale. According to the World Trade Organization (WTO), ecotourism accounts for 20% of the global tourism market. Ecotourism makes a certain contribution to nature protection through the support of SPNA (Volkov et al., 2018). SPNA do not often compete and have an economic incentive for their existence. Ecotourism is an important source of funding for such areas. Ecotourism requires fewer material resources per unit cost of the product, which is especially true for tourism, in which living conditions are as close as possible to natural and local production (eco-friendly local products, traditional local housing instead of hotels, etc.). Traditional culture often becomes the object of ecotourism (Ministry of Natural Resources & Ecology of the Russian Federation, 2021). This is connected with creating a special kind of protected area, where attempts are made to preserve the foundations and traditions. Due to the fact that the most important characteristic of territorial ecotourism complexes is functional zoning, such complexes are often SPNA (Ovcharov & Makhov, 2017). The development of tourism in SPNA generates funds, part of which goes to the protection of nature and traditional culture. Moreover, not only direct costs for various environmental protection

Optimization of the Use of the Potential of Specially Protected Natural Areas …

measures are covered, but also alternative ones, for example, those associated with the withdrawal of territories from economic use. In turn, the protection of nature and culture ensures the renewal of resources for tourism development. Thus, with proper planning and management, the development of ecological tourism contributes to the transition of territories to a sustainable development model. When planning tourist and recreational activities in protected areas, clear zoning based on a geographical and ecological study of the territory is necessary to preserve nature and ensure rational nature management. As world experience shows, zoning differs from country to country. For example, in Yellowstone National Park (USA), seven zones for various purposes are allocated, in France—three zones, in the national parks of Australia—4 zones are distinguished (conservation of the environment, special purpose, reception and recreation of tourists, and wildlife) (Dudley, 2008). In Russia, it is considered that the zoning of national parks must be the following: • Especially valuable territories for the protection of biotypes and research; • Zone of extensive recreational development, intended mainly to ensure ecological balance without human intervention in the recreational landscape; • Buffer (peripheral) zone intended for recreation and accommodation of some part of the material base of tourism. Outside the buffer zone, at the main entrances to SPNA, it is advisable to develop centers that provide maximum comfort (hostels, motels, hotels, tourist excursion enterprises, information services, rental offices, and administration) (Stishov & Dudley, 2019). Based on the analysis of international practices for promoting ecotourism in SPNA, the following recommendations can be formulated for its more effective development in the Russian Federation: (1) The use of the functional zoning tool of the territory to optimize the rational use of natural resources, while the zones of territories with a strict protection regime will be located inside specially protected natural areas with a milder regime of nature management (Miller, 1987); (2) The use of systems of target indicators (e.g., the volume of tourist flows, the number of protected biotypes, etc.) as management tools. (3) Promotion of environmental education aimed at forming a socially responsible attitude towards the environment and implemented by informing potential visitors of SPNA about the importance of biodiversity conservation through various events and programs;

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(4) The formation of user experience management concept based on the implementation of individual tourism functions (e.g., accommodation and transportation of tourists) and the implementation of loyalty programs, i.e., building communication with clients even before they visit SPNA and after it through the Internet; (5) Involvement of small and medium businesses in the organization of service support for ecotourism in SPNA to stimulate the development of the regional economy.

4

Discussion

The intensity of recreational flows in SPNA is explained by the attractiveness of objects, the growing importance of nature-oriented types of tourism, and high accessibility. Under the influence of anthropogenic loads of recreation, the landscapes of specially protected natural areas experience inevitable disturbances. Therefore, to identify changes and control loads on SPNA, it is necessary to monitor its state and take a set of measures to minimize the negative impact on nature (Vasyutina et al., 2020). The development of tourism in SPNA cannot be built only considering market conditions; primarily, the main environmental tasks must be fulfilled, and the decisive factor, in this case, is environmental restrictions. It is impossible to manage SPNA and implement various recreational programs without considering the maximum allowable recreational and tourist load. This problem can be solved by rationing, establishing the maximum allowable norms for recreational and tourist loads, and the regime for using the territory while observing the sustainable development of ecosystems. The existing methods for calculating the anthropogenic load are different. Based on quantitative and qualitative indicators, they depend on the conservation status and nature management regime in SPNA. If the qualitative characteristics consider specially protected natural areas as a single system, which is resistant to various loads, the quantitative characteristics are based on the measurements of indicators and their derivatives, such as the number of visitors per unit area or time, tourist and recreational infrastructure, the timing of the tourist seasons, types of tourist and recreational activities and their environmental consequences, as well as the number of groups. There is no unified comprehensive methodology for normalizing the tourist and recreational load on SPNA. The analysis of the available methodologies allows the authors to conclude that each of them has its advantages, features, and possibilities of use. Nevertheless, no methodology considers the characteristics of the ecosystems of the considered territory, or there is no differentiation by type of tourism, or it is distinguished by a

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rather complex interpretation of the results. According to the integrated methodology proposed in the research, six functional zones are distinguished for all SPNA: • Specially protected (protection of individual natural complexes and objects; visiting by unauthorized persons is limited); • Protected area (especially valuable territories are the core, as well as areas used for scientific observations; visits by unauthorized persons are strictly regulated); • Tourist (intended to provide some material base for tourists—tourist routes, trails, and information centers); • Recreational (intended for recreation—rest at nature); • Historical and cultural (territory, which contains objects of historical, cultural, and ethnographic value; it may also include small villages, especially, if they have natural and ethno-historical values); • Economic and administrative (contains objects for ensuring the activities of protected areas). Considering the protected status of SPNA and the nature management regime, zoning is carried out, and standards are developed for each type of specially protected natural area based on average percentage indicators. The next step is to determine, using the developed system, the value coefficients of complexes and objects, the vulnerability of zones, and the maximum allowable load. The indicators contain four blocks: • • • •

Environmental situation; Environmental significance; Tourist indicators; Infrastructure.

Because of the fact that not all zones have the possibility of their determination, these indicators are averaged. Each indicator has a set of internal criteria for various functional areas of SPNA. As a result of the evaluation of all zones for different types of SPNA, in accordance with all indicators, a table is created, in which the ratio of the identified points to the maximum possible as a percentage is shown for each block. This allows determining the value of a particular factor for the state of SPNA. The advantages of the proposed methodology are the comprehensive nature of the assessment for all types of protected areas and a representative unified system of indicators. The complexity of the analysis lies in considering the various characteristics of the territories in their assessment.

V. S. Khetagurova et al.

5

Conclusion

As a result of the research, the following recommendations were proposed for optimizing the use of the potential of SPNA in the framework of the sustainable development of tourism in Russia: • Based on the analysis of international practice, to form proposals for the selection of territories for the priority development of ecotourism, giving preference to federal protected areas with high tourist and recreational potential; • The use of a single integrated methodology for assessing the anthropogenic and tourist pressure on SPNA, based on functional zoning and the application of the criteria of four blocks for each zone to control the ecological state of the territory of protected areas during tourist and recreational development; • To allocate a separate criterion of significance and include in the assessment the indicator of ecological significance, characterizing the value of natural and cultural complexes and objects. The advantages of the proposed methodology are as follows: • Comprehensive assessment of indicators that relate to various areas of normalization of the load on SPNA; • Unifying the system of indicators for various types of SPNA; • The ability to compare the results for all types of SPNA; • Analyzing the state of various functional zones with different anthropogenic loads (Vinichenko et al., 2016). In general, the conducted research allows reducing the negative impact on the natural area and contributes to the convergence of the tourism industry with the system of SPNA to ensure its sustainable development.

References Andros, I. A. (2017). The basic preconditions of ecotourism origin and development. Sociological Almanac, 8, 483–492. Astanin, D. M. (2019). Ecological and cultural aspects of the evolutionary development of ecological tourism models. CITISE, 2(19), 1–25. Dudley, N. (2008). Guidelines for Applying Protected Area Management Categories. Best Practice Protected Area Guidelines Series,

Optimization of the Use of the Potential of Specially Protected Natural Areas … 21. Retrieved from https://portals.iucn.org/library/sites/library/files/ documents/PAG-021.pdf. Accessed 15 Oct 2021 Information and Analytical System “Specially protected natural territories of Russia” (IAS “SPNA RF”). (2021). Boundaries of specially protected natural areas. Retrieved from https://oopt. kosmosnimki.ru/. Accessed 15 Oct 2021 Kaurova, O., Maloletko, A., & Yumanova, O. (2013). Ways to counter retrival of “shadow income” from businesses with fixed assets in hospitality. Middle East Journal of Scientific Research, 15(5), 757– 762. https://doi.org/10.5829/idosi.mejsr.2013.15.5.11404 Kryukova, E. M., & Khetagurova, V. S. (2020). Modern methods and approaches to the management of the hotel services promotion. Revista Turismo Estudos and Práticas, 3, 2–14. Kryukova, E. M., Khetagurova, V. S., Soshenko, M. V., Lutovinova, N. V., & Filimonova, N. N. (2021). The current state of the economy of religious tourism and orthodox pilgrimage in Russia. Laplage Em Revista, 7(3A), 67–77. https://doi.org/10.24115/S24466220202173A1367p.67-77 Maloletko, A., Volkov, D., Vishnyakova, V., & Shatsky, A. (2018). The effect of supply chain and consumer preferences on the formation of economic model. International Journal of Supply Chain Management, 7(5), 684–689. Matraeva, L., Solodukha, P., Erokhin, S., & Babenko, M. (2019). Improvement of Russian energy efficiency strategy within the framework of “green economy” concept (based on the analysis of experience of foreign countries). Energy Policy, 125, 478–486. https://doi.org/10.1016/j.enpol.2018.10.049 Miller, K. (1987). Planning national parks for ecodevelopment: Cases and methods from Latin America (Vols. 1–2). Ann Arbor, MI, University of Michigan, School of Natural Resources, Center for Strategic Wildland Management Studies. Ministry of Natural Resources and Ecology of the Russian Federation. (n.d.). Interactive map of Federal Pas. Retrieved from https://www. mnr.gov.ru/activity/regions/. Accessed 15 Oct 2021 Ovcharov, A. O., & Makhov, S. Y. (2017). History of tourism development in Russia. Science, 2020, 3(14), 108–115.

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Russian Federation. (2018). Concept of the Federal Target Program “Development of domestic and inbound tourism in the Russian Federation (2019–2025)”. Moscow, Russia. Retrieved from http:// www.consultant.ru/document/cons_doc_LAW_297883/18eb24005 fd062573c142fb7f98769137ce7d974/. Accessed 15 Oct 2021 Stishov, M. S., & Dudley, N. (2019). Specially protected nature areas of the Russian Federation and their categories. Official Site of the World Wildlife Fund. Retrieved from https://wwf.ru/en/resources/ publications/booklets/okhranyaemye-prirodnye-territoriirossiyskoy-federatsii-i-ikh-kategorii/. Accessed 15 Oct 2021 Tsyrenova, I. Z. (2010). Peculiarities of tourism and recreational activities in national parks of Russia. Bulletin of the Buryat State University. Biology. Geography, 4, 79―83. United Nations Conference on Environment and Development (UNCED). (1992). Agenda for the XXI century—Conventions and agreements. UNCED. Retrieved from https://www.un.org/ru/ documents/decl_conv/conventions/agenda21.shtml. Accessed 10 April 2021 Vasyutina, E. S., Korolkova, N. A., & Belyak, A. V. (2020). Green Economy: Benefits, risks and challenges. In Kh. S. Soliman (Ed.), Excellence in education and innovation management through Vision 2020: Proceedings of the IBIMA: 34st international business information management association conference (pp. 3278–3287). International Business Information Management Association. Vinichenko, M. V., Kirillov, A. V., Frolova, E. V., Kaurova, O. V., & Makushkin, S. A. (2016). Monitoring of working conditions and the nature of their influence on health of students and academic staff. International Journal of Environmental and Science Education, 11 (11), 4564–4577. Retrieved from http://www.ijese.net/makale_indir/ IJESE_641_article_57a778863f6c8.pdf. Accessed 15 Oct 2021 Volkov, D. V., Maloletko, A. N., & Kaurova, O. V. (2018). Formation of bounded consumers’ rationality based on micro-segmentation. European Research Studies Journal, 21(4), 754–762. https://doi. org/10.35808/ersj/1243 Zorin, I. V., & Kvartalnov, V. A. (2003). In Encyclopedia of tourism: Directory. Finance and Statistics.

Changes in Cooperative Legislation in the Context of Solving Socio-economic Problems Andrey A. Zhukov , Ruslan M. Dzidzoev , Tatyana V. Martynova , Irina A. Yakovenko , and Nellya I. Orfanidi

Abstract

Keywords

This article analyses changes in cooperative legislation in 2021 in the context of a pandemic and the effectiveness of consumer cooperatives in the area of housing construction, as well as the elimination of housing shortages in the real estate market. Dialectical, logical, concrete historical, statistical, formal legal, comparative legal method, and other methods are used. They analyse changes in cooperative legislation in modern Russian conditions of permanent socio-economic crisis are as well as the role and importance of citizens’ self-organization in the form of cooperatives in solving the housing problem in the past and present. An analysis of the federal legislation amended in 2021 made it possible to draw the following conclusions: about the legislator’s attempt to expand the availability of cooperation for the population; about empowering members of the cooperative. It’s concluded that the transformation of approaches to bankruptcy has also affected cooperative legislation, and changes in the financial market have also affected cooperative legislation. For the first time, an attempt was made to analyse the changes in the cooperative legislation of 2021 aimed at solving socio-economic problems in the context of the crisis caused by the COVID-19, as well as at tracing the relationship of the transformation of cooperative legislation in the system of all-Russian law. Given the particular importance of the housing sector of the economy for our citizens and for the socio-economic situation in the country as a whole, to give an additional impetus to the development of the housing sector of the economy.

Cooperation Cooperative legislation Housing cooperative Economic crisis Consumer cooperation Cooperative ideology Social problems Legal regulation Changes in legislation

A. A. Zhukov (&) . T. V. Martynova . I. A. Yakovenko . N. I. Orfanidi Krasnodar Institute of Cooperation (branch) of Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] R. M. Dzidzoev Kuban State University, Krasnodar, Russia

.. .

JEL Classification

R1

1

. . R5

К380

.

. . Q13

.

.

.

.

J540

Introduction

The first European co-operators, workers, and the exiled Decembrist revolt being in a rather difficult situation, actively looked for opportunities to improve it. For all of them, cooperation has become such an opportunity. Cooperation at all times served as a means of optimizing the consumption and production of goods, so, it also allows them to survive and even succeed in difficult market conditions. The ubiquitous spread of capitalism in its worst manifestations and its negative impact on the life of the population has become a key reason for the emergence of cooperation because the capitalist structure forced people to look for some form of association to meet their needs. Currently, the permanent crisis in the Russian economy has been exacerbated by the outbreak of the COVID-19 pandemic. In modern conditions of market economy, when commodity markets have been made dependent on unpredictable financial platforms which are convenient for speculation when exchange trading has become a significant price-determining factor, cooperation can become a lifeline for stabilizing macro- and microeconomics (Kovaleva et al., 2015). Under such conditions, according to Shipitsyn, cooperation has significant competitive advantages both in domestic and foreign markets (Shipitsyn, 2020). The authors agree

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_88

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that cooperation can become an essential factor in stabilizing the complex socio-economic situation in Russia and the whole world.

2

Materials and Methods

The article provides a legal examination of legal documents regulating the organization and management of cooperative processes in the Russian economy. Using the method of systematization, a comprehensive review of the legal framework is carried out, its strengths and weaknesses are assessed through problem analysis. All of this allowed the authors to prove the high importance and great role of cooperation in solving significant socio-economic issues.

3

Results

Cooperative legislation periodically undergoes changes that sometimes affect seemingly unshakable pillars. Changes, on the one hand, are associated with the regular updating of civil legislation and the need to adapt related industries, sub-sectors and institutions to it. On the other hand, the legislator, of course, is looking for new opportunities to stabilize the socio-economic situation in the country and expand cooperation, its introduction to the masses. Cooperation is one of the worthy forms of organizing small and medium-sized businesses under capitalism. Legal regulation of the cooperative sector of the economy is based on the formed broad regulatory framework. This research was focused on the following regulatory legal acts: • The Constitution of the Russian Federation (http://www. consultant.ru/document/cons_doc_LAW_28399/); • The Civil Code of the Russian Federation (http://www. consultant.ru/document/cons_doc_LAW_5142/); • Federal Law No. 193-FZ of 08.12.1995 “On Agricultural Cooperation” (http://www.consultant.ru/document/cons_ doc_LAW_8572/); • Federal Law No. 215-FZ of 30.12.2004 “On Housing Savings Cooperatives” (as amended on 27.06.2019) (http:// www.consultant.ru/document/cons_doc_LAW_51058/); • Federal Law No. 70-FZ of 05.04.2021 “On Amendments to the Federal Law “On Agricultural Cooperation” and Article 9 of the Federal Law “On Production Cooperatives” (http://www.consultant.ru/document/cons_doc_ LAW_381367/); • Federal Law No. 192-FZ of 11.06.2021 “On Amendments to Certain Legislative Acts of the Russian Federation” (http:// www.consultant.ru/document/cons_doc_LAW_386889/); • And other regulatory legal acts.

The right of citizens to create cooperatives, as well as to create any legal entity, is based on those enshrined in Art. 30 and 34 of the Constitution of the Russian Federation, provisions on the right of everyone to associate and to freely use their abilities and property for entrepreneurial and other economic activities not prohibited by law. An analysis of Federal Law No. 70-FZ suggests an attempt to expand the availability of cooperation for the population. So, for example, even before April 16, 2021, a consumer cooperative had been organized by at least five citizens, but from April 16, 2021, three citizens were enough as was the case in the first law on cooperation adopted in the USSR on May 26, 1988 (https://www.consultant.ru/ cons/cgi/online.cgi?req=doc&base=LAW&n=1361&dst= 1000000001%2C0#K0L1olSghlwEA7M41). Also, the new law No. 70-FZ provides for the possibility of issuing not only cash loans but also loans, which, in the author’s opinion, indicates the empowerment of members of the cooperative. It should be emphasized that in contradistinction with credit, a loan is a free type of debt, and a loan can be cash and other items. However, the Federal Law “On Agricultural Cooperation” envisages the interest rate on loans, which are provided by credit cooperative to its members—individuals for purposes not related to their entrepreneurial activities (http://www.consultant.ru/document/ cons_doc_LAW_381367/). Thus, in the edition of 2021, the circle of subjects entitled to be elected to the chairmen and the board of the cooperative is specified—individuals and representatives of legal entities are distinguished, which indicates their equal legal status. The same clarification is provided for the supervisory board (http://www.consultant.ru/document/cons_doc_LAW_ 381367/). The new edition of 2021 also provides for an increase in the number of members of the board of the cooperative, depending on the total number of members of the cooperative. So, if the number of members of the cooperative is less than one hundred, the board will consist of three people, and if it’s more than one hundred, the board will consist of five people. It should be also noted that the previous version allowed the charter of the cooperative to establish a different size of the board. In the new edition, under the charter, only an increase in the number of the board is possible (http:// www.consultant.ru/document/cons_doc_LAW_381367/). The transformation of approaches to bankruptcy has also affected cooperative legislation. Thus, until 2021, if there were signs of bankruptcy of the cooperative, then the board of the cooperative or the liquidation commission of the cooperative was obliged to develop an action plan to prevent bankruptcy. But from 2021, the emphasis is on developing a plan to restore the cooperative's solvency. In the new edition, other issues related to the bankruptcy of a cooperative are

Changes in Cooperative Legislation in the Context of Solving Socio-economic Problems

also regulated in much more detail. In particular, four stages of distribution of property after the completion of the bankruptcy procedure of the cooperative have been identified. At the same time, claims for payments of each subsequent priority are satisfied only after the satisfaction of claims for payments of the previous priority (http://www. consultant.ru/document/cons_doc_LAW_381367/). Under the requirements of Federal Law No. 223-FZ “On self-regulatory organizations in the financial market”, there have been significant changes in the cooperative legislation (http://www.consultant.ru/document/cons_doc_LAW_182662/). That’s why, since 2021, a credit cooperative has been obliged to provide an individual, who intends to conclude an agreement with a credit cooperative aimed at raising funds, reliable information about such an agreement, including its conditions and risks associated with its execution (http:// www.consultant.ru/document/cons_doc_LAW_386889/). This is principally due to the new standards for the protection of the rights and interests of individuals and legal entities in the financial market. Separately, it’s necessary to dwell on the housing cooperative legislation. In the Russian Federation, throughout its history, among all social issues, housing has always stood out especially sharply, because housing is a matter of paramount importance and the most valuable material in the life of every person. The first housing savings cooperatives have begun to appear in 2005. The organization and operation of housing savings cooperatives make a significant contribution to the formation of private housing stock and the elimination of housing shortages in the real estate market, expanding the possibilities of the population to purchase housing (Krylov, 2018; Sidorenko et al., 2021; Skripnichenko, 2019). Currently, the organizational, legal and economic issues of the functioning of the HSC are regulated by Federal Law No. 215-FZ “On housing savings cooperatives”. The authors of this article can agree with the position of Krylov that the HSC have significant advantages over mortgages.

4

Conclusion

In the modern conditions of market economy, when commodity markets are made dependent on unpredictable financial platforms, convenient for speculation when exchange trading has become a significant price-determining factor, cooperation can turn into a lifeline for stabilizing macro- and microeconomics. Analysis of the federal legislation amended in 2021 allows the authors to conclude an attempt to expand the availability of cooperation for the population. The authors also decided that the legislator is trying to empower members of the cooperative.

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In addition, the aforementioned law of 2021 specifies the circle of subjects entitled to be elected to the chairmen and board of the cooperative—individuals and representatives of legal entities are allocated, which indicates that the legislator emphasizes their equal legal status (the same clarification is provided in regarding the supervisory board). It should also be noted that the previous version allowed the charter of the cooperative to establish a different size of the board. In the new edition, according to the charter, only an increase in the number of the board is possible. The transformation of approaches to bankruptcy has also affected cooperative legislation. So, if there were signs of bankruptcy of the cooperative until 2021, the board of the cooperative or the liquidation commission of the cooperative was obliged to develop an action plan to prevent bankruptcy, then from 2021, the emphasis is on developing a plan to restore the cooperative's solvency. In the new edition, other issues related to the bankruptcy of a cooperative are also regulated in much more detail. In particular, four stages of distribution of property after the completion of the bankruptcy procedure of the cooperative have been identified. At the same time, claims for payments of each subsequent priority are satisfied only after the claims for payments of the previous priority are fully satisfied. The changes in the sphere of the financial market haven’t bypassed the cooperative legislation either. There have been significant changes. So, from 2021, the credit cooperative is obliged to provide an individual, who intends to conclude an agreement with the credit cooperative aimed at raising funds, reliable information about such an agreement, including its conditions and risks associated with its execution. This is largely due to the new standards for the protection of the rights and interests of individuals and legal entities in the financial market. The state tightened control over the cash flows of citizens-shareholders by updating the legislation in the area of the housing cooperative sector of the economy, and that has secured and stabilized the real estate market. Based on the above material, the authors can draw a general conclusion that cooperation can become an essential factor in stabilizing a difficult socio-economic situation in Russia and the whole world.

References Federal Law No. 193-FZ of 8.12.1995 “On Agricultural Cooperation”. http://www.consultant.ru/document/cons_doc_LAW_8572/. Accessed: 10 August 2021. Federal Law No. 215-FZ of 30.12.2004 “On Housing Savings Cooperatives” (as amended on June 27, 2019). http://www. consultant.ru/document/cons_doc_LAW_51058/. Accessed: 8 Oct 2021.

448 Federal Law No. 223-FZ of 13.07.2015 “On Self-regulatory Organizations in the Financial Market” (as amended on 02.07.2021). http:// www.consultant.ru/document/cons_doc_LAW_182662/. Accessed: 10 August 2021. Kovaleva, E. I., Lomakina, M. V., & Miroshnichenko, V. V. (2015). Development of the HSC in the Belgorod region: Results and prospects. Economics and Business: Theory and Practice, 9, 54–58. Krylov, M. V. (2018). The advantage of a housing savings cooperative over mortgage lending. Economics and Law, 1(1), 68–73. Law of the USSR No. 8998-XI of 05.26.1988 “On Cooperation in the USSR”. https://www.consultant.ru/cons/cgi/online.cgi?req=doc &base=LAW&n=1361&dst=1000000001% 2C0#K0L1olSghlwEA7M41. Accessed: 10 August 2021. On amendments to the Federal Law “On Agricultural Cooperation” and Article 9 of the Federal Law “On Production Cooperatives”: Federal Law dated No. 70-FZ of 05.04.2021. http://www.consultant.ru/ document/cons_doc_LAW_381367/. Accessed: 10 August 2021. On amendments to certain legislative acts of the Russian Federation: Federal Law No. 192-FZ of 11.06.2021. http://www.consultant.ru/ document/cons_doc_LAW_386889/. Accessed: 8 Oct 2021.

A. A. Zhukov et al. Shipitsyn, I. V. (2020). Consumer cooperation in the light of the implementation of national projects and strategic development of Russia until 2024. Quality of Life: Business Standard. http:// business-standard.rf/upload/iblock/e52/e5215f90d46d6c013263025 60e775566.pdf. Accessed: 13 Oct 2021. Sidorenko, T. N., Zhukov, A. A., Averyanova, V. R., Orfanidi, N. I., & Klyuev, A. A. (2021). Protecting the rights of members of housing cooperatives using criminal law as an important element of economic development. Studies in Systems, Decision and Control, 316, 679–686. Skripnichenko, D. A. (2019). The right to purchase or build housing by a housing savings cooperative for a member of the cooperative after making a share contribution. Gaps in Russian Legislation, 2, 69–73. The Civil Code of the Russian Federation (part one) No. 51-FZ of 30.11.1994. http://www.consultant.ru/document/cons_doc_LAW_ 5142/. Accessed: 10 August 2021. The Constitution of the Russian Federation. http://www.consultant.ru/ document/cons_doc_LAW_28399/. Accessed: 10 August 2021.

Development of Legislation on Cooperation in Ukraine in 1992–2014 Mikhail P. Belyaev , Oleg V. Golikov , Ekaterina A. Korotenkova , Maksim V. Feoktistov , and Anna Sh. Elyazyan

Abstract

2

This paper analyzes the legislation of Ukraine on cooperation in 1992–2014. At the same time, chronological, comparative historical and dialectical methods were used. The drawbacks of the existing legislative framework were revealed and the ways of their elimination were proposed. Keywords

. . .

.

Methodology

The methodological apparatus of the study is based on the application of the historical method, which is used to study Ukrainian legislation on cooperation in the post-Soviet period are considered in the works of Finashyna (2013), Korinets (2012), Gerds and Korinets (2016), Gladky (2016), Kendus and Mykhalsky (2013) and Koverznev (2017). This study used chronological, comparative-historical and dialectical methods.

Law Regulation Agricultural cooperation Consumer cooperation Agricultural service cooperative

3

Results

JEL Code

K11

1

. . . . . K15

K23

K31

K40

K49

Introduction

The article is intended to form a systematic economic and legal view of the reform and state regulation of cooperative processes in Ukraine during the period of 1991–2014 and to develop proposals for their elimination (Koverznev, 2017, p. 153).

M. P. Belyaev (&) . O. V. Golikov . E. A. Korotenkova . M. V. Feoktistov . A. Sh.Elyazyan Russian University of Cooperation, Mytischi, Russia e-mail: [email protected] E. A. Korotenkova e-mail: [email protected] M. V. Feoktistov e-mail: [email protected]

At the time of the proclamation of independence, the legislative base of the USSR, which no longer met the requirements of the time, because it could not work in the conditions of the economy’s transition to a market basis, was in force in Ukraine. Given this state of affairs, in May 1991, at the 3rd meeting of the 15th convocation, the Council of the Central Union of Consumer Associations of Ukraine (Ukoopsoyuz) adopted the Program of transition of consumer cooperation in Ukraine to a market economy. One of its sections was devoted to the training of consumer cooperation personnel and new requirements for them in a market economy, freedom of entrepreneurship, the development of competition, etc. Significant changes in the content of the work of educational institutions of consumer cooperation were envisaged. New subjects promoting the study of markets for goods, labor, securities, marketing activities, foreign economic relations, etc. were introduced into the curriculum. The Program of transition of consumer cooperation of Ukraine to a market economy did not disregard the issues of social protection of members and employees of consumer cooperatives. However, the economic crisis did not allow consumer cooperation to work effectively, properly provide appropriate social protection, maintain jobs, timely pay wages, improve the living conditions of their employees, etc.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_89

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Consumer cooperation in Ukraine, like in other union republics of the USSR, was deeply integrated into the economy of the state and has always been an integral part of it, helping to solve important socio-economic problems. After the proclamation of independence, public bodies often resorted to alienation of cooperative property, interfered in its activities, built their relations without considering its nature and essence, and even tried to extend the principles of privatization of state enterprises to it. The consumer cooperation system often had no place in government concepts, programs, laws and regulations, its needs were not considered, interests were ignored. The possibilities of strengthening its direct ties with industrial enterprises and agricultural producers were artificially limited. These shortcomings could be eliminated with the help of law that would regulate the place and the role of cooperation in the state. In Ukraine, the preparation of the law on cooperation was carried out in 1991–early 1992. But the first projects did not guarantee comprehensive protection of the rights of such a large organization as consumer cooperation (Gladky, 2016, pp. 144–145). The first law of independent Ukraine on the development of cooperation was the Law «On consumer cooperation», adopted on April 10, 1992. It regulated the peculiarities of the activity of the consumer cooperation system. This law was adopted with the aim of creating a legal framework for the effective operation of the system of consumer societies. The state officially recognized the social significance of cooperatives and guaranteed their economic independence and ownership of cooperative property. It should be noted that this Law exclusively regulates relations between subjects of consumer cooperation with executive authorities. Thus, a significant range of relations that arise between the subjects of consumer cooperation, on the one hand, and local governments and the state, which is an independent subject of law, on the other hand, remains outside of its regulation (Gladky, 2016, p. 145; Kendus & Mykhalsky, 2013, p. 70, 99]. The consumer society was a voluntary association of citizens created to meet their economic and social needs. The main document governing its activities is the charter. The supreme governing body of the consumer society was the general assembly, which adopted the charter, determined the size of the entrance and mandatory share contribution, elected governing and control bodies, and also decided other issues related to its activities. Various advantages and benefits in using the services of cooperative organizations could be introduced for shareholders (Gladky, 2016, p. 146; Korinets, 2012, p. 153). Consumer societies are part of regional, urban and rural consumer unions. These consumer unions, in turn, are part of the regional consumer unions, which are united by Ukoopsoyuz. In contrast to other types of cooperative

M. P. Belyaev et al.

organizations, consumer cooperatives have an established and clearly structured system and management bodies, which include: the congress of consumer cooperatives, the Council of the Ukoopsoyuz and the board. These governing bodies have delegated powers to adopt regulations that are binding on all cooperatives, enterprises and organizations subordinate to them. They also adopt acts of a recommendatory nature, on the basis of which consumer cooperatives develop their own local acts (statutes, regulations, etc.) (Gerds & Korinets, 2016, p. 43; Gladky, 2016, p. 145; Kendus & Mykhalsky, 2013, p. 102). The law adopted on April 10, 1992 did not provide significant changes in the activities of consumer cooperatives by itself. A clear mechanism for its implementation was needed. The board of the Ukoopsoyuz prepared draft resolutions on the implementation of the Law of Ukraine «On Consumer Cooperation», which were adopted on June 17, 1992 by the 5th meeting of the Council of the Ukoopsoyuz of the 15th convocation. Documents on property rights in consumer cooperatives were also adopted at the meeting of the Council. This mechanism for the implementation of the law has found support from the state. As noted at the 6th meeting of the Ukoopsoyuz Council in April 1993, most cooperative organizations have practically completed all measures to implement the Law on Consumer Cooperatives. The 18th (extraordinary) congress of consumer cooperatives of Ukraine in December 2000 approved new approximate charters of a consumer society, a regional consumer union, a regional (republican) union of consumer societies and the Charter of Ukoopsoyuz (Gladky, 2016, p. 146; Kendus & Mykhalsky, 2013, p. 103). In 1996, the Constitution of Ukraine, which guaranteed citizens the right to unhindered creation of cooperative organizations, and cooperative organizations—an equal position in relation to other subjects of legal relations, as well as the independence and autonomy of their activities, was adopted (Kendus & Mykhalsky, 2013, p. 97). Service cooperatives meet the needs of their members and do not aim to make a profit. In accordance with the charter, they provide services to other persons in volumes not exceeding 20% of the total turnover. Service cooperatives are divided into processing, procurement and marketing, supply, service, depending on the type of activity. Multifunctional cooperatives were involved in several activities. Associations of cooperatives could be created, including by industry or territory (Kendus & Mykhalsky, 2013, p. 99; Korinets, 2012, p. 22; Koverznev, 2017, p. 154). The law contains the concept of «model statutes of agricultural cooperatives», which does not apply to other types of cooperatives. These model statutes are developed by the Ministry of Agrarian Policy and Food of Ukraine (hereinafter—Ministry of Agrarian Policy). The Model Charter of an agricultural service cooperative was approved

Development of Legislation on Cooperation in Ukraine in 1992–2014

by Order of the Ministry of Agrarian Policy No. 315 dated 21 May 2013, the Model Charter of an agricultural production cooperative—by Order No. 1 dated 8 January 2014. Each cooperative adopts its own charter based on model charter. In accordance with the Law, each agricultural service cooperative must have «rules of domestic economic activity», which establish the mechanism and methods for implementing the provisions of the charter, detail its provisions, considering the specifics of the cooperative’s activities. The rules of domestic economic activity are mandatory for all members of the cooperative, as well as the charter, but their characteristic feature is mobility. The model rules of domestic economic activity of an agricultural service cooperative were approved by Order of the Ministry of Agrarian Policy No. 643 dated 30 October 2013 (Finashyna, 2013, pp. 11–12). However, most of the problems associated with the functioning of cooperatives in the economic system of the state have not been resolved. The legislative base needed supplementation and thorough systematization (Gladky, 2016, p. 147; Koverznev, 2017, p. 154). According to this Concept, the future development of Ukrainian cooperation is associated with the development of production, service, consumer and diversified cooperatives in agriculture and forestry, extractive industries, industry, construction, transport, in the field of trade, household, social, cultural and financial services. In June 2001, the constituent assembly of authorized representatives of the Ukoopsoyuz, the All-Ukrainian Union of Agricultural Cooperatives and the Association of Credit Unions of Ukraine created the National Cooperative Alliance of Ukraine. Its main tasks were determined by the objective needs of the further development of Ukrainian cooperation. Unfortunately, the unions of production cooperatives were not included in the National Cooperative Alliance of Ukraine, due to their actual absence in Ukraine (Kendus & Mykhalsky, 2013, p. 82). The Law of Ukraine «On Cooperation» was adopted on 10 July, 2003—this is the basic regulation in this area. Some sections of this law are devoted to the activities of cooperative associations and the regulation of labor relations in cooperatives, because this issue has a certain specificity (Kendus & Mykhalsky, 2013, pp. 98–99; Koverznev, 2017, pp. 154–155). The Civil and Commercial Codes of Ukraine, which contain a number of provisions on cooperation, entered into force in January 2004. Civil Code of Ukraine as the main act of civil legislation defines the concept, property regime and the issue of membership in production cooperatives; the concept of consumer cooperation ownership as one of the forms of collective ownership. Chap. 10 of the Economic Code of Ukraine is devoted to the activities of production cooperatives and consumer cooperation enterprises. This

451

chapter formulates the concept of a production cooperative, consumer cooperation and consumer society; principles of activity and conditions for the creation of a production cooperative; conditions for the acquisition and termination of membership, rights and obligations of members of the cooperative; the procedure for the formation of its property; governing bodies of the cooperative and their powers; principles of carrying out economic activities by a production cooperative, the procedure for liability and termination of its activities. Consumer cooperation enterprises are classified by the code as entrepreneurial structures (Gladky, 2016, p. 147; Kendus & Mykhalsky, 2013, p. 98). It should be considered that the norms of the code are special in regulating the activities of production cooperatives, and therefore they have priority in application, considering that the provisions of the Law «On Cooperation» regulate the activities of all types of cooperative organizations (consumer, service and production), and the norms of the Economic Code—only the activities of production cooperatives. By analogy, it can be concluded that the norms of the laws «On consumer cooperation» and «On agricultural cooperation» are special in relation to the norms of the Law «On cooperation». The legislation of Ukraine regulating cooperative relations consists not only of norms related to the field of commercial law, but also of norms of other branches of law, in particular, civil, labor, land, tax, international law, etc. The dominant role in the system of norms of cooperative law belongs to the norms of economic law. Other branches of law in this area are of an auxiliary (complementary) nature, because they are intended to regulate derivative relations arising from the implementation of economic activities by cooperative organizations. In Ukraine, legal precedent is not officially recognized as a source of law. However, the amendments made to the Civil and Commercial Procedural Codes and the Code of Administrative Procedure established that decisions of the Supreme Court of Ukraine, adopted as a result of the revision of decisions of the courts of cassation, based on the unequal application of substantive law, are binding for all general courts and authorities carrying out law enforcement activities. This indicates the introduction of elements of case law in Ukraine since 2010. Therefore, the acts of the highest courts of Ukraine are of great importance, including when considering disputes arising from cooperative relations. However, the jurisprudence is controversial. On the one hand, the Supreme Court points out that if an individual is a party to the case, then cases involving the participation of cooperatives are not subject to consideration in the course of economic proceedings. On the other hand, the Supreme Economic Court makes the opposite conclusion that corporate relations also arise in cooperatives (Kendus & Mykhalsky, 2013, p. 67, 94, 99, 107–108).

452

Other sources of cooperative law in Ukraine are acts of the President and executive authorities. A number of normative legal acts were adopted in this direction: among them the Order «On the development of agricultural service cooperatives» dated 31 August 2000. Its tasks are: to promote the irreversibility of the processes of agrarian reform, market transformation of agriculture and the revival of the Ukrainian countryside as the fundamental basis for the development of a democratic society through the revival and development of agricultural cooperation; formation of an integral cooperative movement in agriculture, the interaction of cooperatives with other business entities in the formation of the agricultural market; to ensure the formation of agricultural entities on a cooperative basis, which will be in the interests of agricultural producers. Accordingly, this Program was not implemented due to the lack of interest of the owners of agricultural enterprises (Koverznev, 2017, pp. 155–156). The annual address of the President of Ukraine to the Verkhovna Rada has no real mechanisms of state assistance (Gladky, 2016, p. 147). In 2003–2004 its goal is to enhance the activity of this type of cooperatives, to expand their presence on the exchange market. The main objectives of the Program are: improving the legal framework for formation of elements of the infrastructure of the agrarian market on a cooperative basis; stimulating the process of creating cooperatives in the field of agriculture and the creation of rural infrastructure. Achieving the goal of the Program and the implementation of its tasks required the implementation of targeted measures, one of which is the development and approval of recommendations to service cooperatives by attracting property of enterprises and organizations and the common property of citizens obtained in the process of reforming collective agricultural enterprises, as well as from other sources. Recommendations for the preservation and improvement of the efficiency of the use of integral property complexes of the former collective farms and the creation of agricultural service cooperatives on the basis of this property were issued by the Ministry of Agrarian Policy in order to implement this program on March 18, 2003. The relevance of the development and adoption of this Program is due to the emergence of a number of problems in the agricultural sector of Ukraine. First of all, this is the implementation of an ineffective policy in the development of agricultural cooperatives and other non-profit associations. Promotion of service cooperatives and other associations was indicated among the objectives of the Program related to the development of entrepreneurship and solving problems of employment in the countryside. Budgetary support for the establishment and development of agricultural service cooperatives in livestock raising was provided by the Decree of the Cabinet of Ministers of 20

M. P. Belyaev et al.

August 2008. The state budget of Ukraine for 2011 provided for expenditures to support agricultural service cooperatives in the amount of 5 million hryvnia. The procedure for using these funds was approved by the Cabinet of Ministers on March 9, 2011. However, the Cabinet of Ministers has reduced the volume of expenditures on support programs for agricultural service cooperatives by its decree on December 5, 2011. This demonstrates the inconsistency and incoherence of the state policy to support the development of service cooperation. The potential of agricultural cooperation in Ukraine remained unfulfilled. The number of service cooperatives increased, but most of them were created only «on paper» with the aim of obtaining possible government funding. A number of shortcomings and roughnesses that hindered the development of cooperation were revealed in the legislative framework in force in 1992–2014. The main feature inherent in business entities—making a profit is not reflected in the status of a production cooperative. State registration of agricultural service cooperatives was carried out as subjects of entrepreneurial activity. The activation of the cooperative movement is possible with the development of integration processes between service cooperatives and credit unions. There is no such cooperation, although the Law «On Credit Unions» has been in effect in Ukraine since 2001. The development of credit cooperatives was hampered by the lack of a system of guarantees for deposits of members of credit unions (as it is observed among bank depositors); the lack of real mechanisms to protect the rights of members of credit unions, who are both their owners and clients. The lack of a purposeful and systematic state policy to support the development of agricultural cooperation also had a negative impact (Koverznev, 2017, pp. 156–159). The law «On Credit Unions» enshrines the principles of activity, the legal status of the credit union, the procedure for the creation and termination of activities, membership relations are regulated, the bodies of the union and their competence, the legal regime of the property of the credit union are determined (Kendus & Mykhalsky, 2013, pp. 99– 100).

4

Conclusion

So, in the period under review in Ukraine, the legislation did not provide the existing cooperative organizations with the possibility of effective activity and competitiveness in the commodity markets, this led to the disappearance of interest in this organizational form of management, which proved its effectiveness and stability in the face of economic crises in many developed countries of the world (Kendus & Mykhalsky, 2013, p. 83; Koverznev, 2017, p. 160).

Development of Legislation on Cooperation in Ukraine in 1992–2014

Cooperatives did not have enough funds to cover the costs of creation and initial development at the beginning of their activities. The allocation of public funds was provided only to support agricultural service cooperatives. The policy regarding the support of agricultural cooperation should be long-term, predictable and understandable to the peasants. As practice has shown, the efforts of investors to assist in the creation of cooperatives in the most promising regions and industries were often brought to naught due to imperfect legislation. It is necessary to eliminate the existing legal conflicts, to streamline corporate legislation based on the experience of other countries with developed cooperative economies, considering national realities through the adoption of one law on cooperation (Finashyna, 2013, p. 26).

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References Finashyna G. V. (2013). Legal support for the development of cooperation in Ukraine in 1991–2012. Bulletin of the Lviv Commercial Academy, 11, 151–162. Gerds, M., & Korinets, R. (2016). Development of cooperation in Ukraine and Germany—Agrarian and political proposals for Ukraine (p. 56). Gladky S. O. (2016). Cooperative law: A textbook (p. 263). Kendus, O. Z., & Mykhalsky, Yu. V. (2013). Evolution of cooperative legislation of independent Ukraine and its impact on international cooperation. Bulletin of Lviv Commercial Academy, 11, 143–151. Korinets, R. (2012). Agricultural service cooperation in Ukraine (p. 122). Budapest. Koverznev, V. O. (2017). Economic and legal support of cooperation in Ukraine (p. 433). The dissertation is submitted for the degree of Doctor of Laws.

Assessment of the Socio-Economic Sphere of the Countries of the European Union in the Context of the Implementation of Joint Strategies and Programs Tatiana S. Malakhova , Svetlana N. Zagnitko , Lileliya B. Luchishina , Tatyana L. Ishchenko , and Anastasiya I. Pavliv of Social Rights in the integration group are described, and their impact on the population of the countries is assessed.

Abstract

The purpose of this article is to study the current state of the European Union countries through the prism of their socio-economic inequality, to assess key socio-economic indicators in the context of global imbalances, as well as to identify areas for strengthening inter-country relations through programs and development strategies in these areas. As a theoretical and methodological basis, the article uses the historical and logical, dialectical principles and contradictions, as well as the method of scientific abstraction. Of particular importance is the issue of arguing the need for the formation of inter-country programs and strategies in the socio-economic sphere of the EU countries, which has acquired a process-system approach, which was used in an in-depth analysis of the key macroeconomic indicators of the member countries of the association. The index of consumer confidence of the population, the level of employment in the EU countries for 2017–2020 is analyzed; the unemployment rate of the EU countries has been assessed, etc. Particular attention is paid to the study of the dynamics of the unemployment rate in Greece from 2017 to 2020 and calculating the forecast for this indicator before 2023. Based on fundamental and applied research by scientists on the socio-economic development of the EU countries, directions for the implementation of the European Pillar

T. S. Malakhova Kuban State University, Krasnodar, Russia S. N. Zagnitko . L. B. Luchishina . T. L. Ishchenko . A. I. Pavliv (&) Krasnodar Institute of Cooperation (branch) of Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] S. N. Zagnitko e-mail: [email protected] L. B. Luchishina e-mail: [email protected]

Keywords

. .

Integration group European Union Employment Social inequality

.

Unemployment

.

JEL Classification

F02

1

. . . . F15

F63

F66

H53

Introduction

In modern conditions, the EU countries are faced with internal and external problems and threats that directly affect their socio-economic sphere. The global economic crises (2008–2011), the migration crisis, and other problems have made adjustments to the increase in socio-economic inequality within the integration group (Malakhova, 2019a). On this basis, it is necessary to analyze the key economic indicators: employment rate, unemployment rate, as well as consumer confidence index. Their analysis will make it possible to assess the current socio-economic state of the countries, identify existing problems in these areas, etc. The governments of the EU countries, their institutions and other organizations form joint programs to stabilize the socio-economic indicators of the EU countries (https://eurlex.europa.eu/legal-content/EN/ALL/?uri=celex:52010DC 2020), develop progressive strategies in the area of industry (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX: 52020DC0102), green economy (https://ec.europa.eu/ environment/strategy/biodiversity-strategy-2030_en; https:// eur-lex.europa.eu/legal-content/EN/TXT/?qid=1576150542719 &uri=COM%3A2019%3A640%3AFIN), aimed at stabilizing and ensuring the economic security of partner countries

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_90

455

456

T. S. Malakhova et al.

(https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583 933814386&uri=COM:2020:98:FIN). Using all of these materials, the authors analyze the positions and approaches of scientists engaged in research on the socio-economic development of EU countries.

2

Materials and Methods

Today, scientists study the socio-economic inequality of the EU countries from different positions and approaches. So, Zeitlin, Nicoli, and Laffan pay special attention to the evolution of the development of European integration, the processes of deepening, as well as the expansion of integration processes in the EU in their studies. Sequential crises that directly affect the members of the association destroy the cohesion of the member states and the forms of their relationship. The consequences of crises strongly affect the countries of the southern region of the EU, the gap between the center and the periphery is increasing (Zeitlin et al., 2019). Biysmans deeply analyzes the impact of crises on the socio-economic situation of the EU countries, assesses the views of scientists and experts on the development of the integration group and its policy (Bijsmans, 2021). Analyzing the socio-economic state of the EU countries, Mazheikaite et al. have noted that there are large differences in the health status of the population today. They assess the differences in the demographic indicators of the partner countries, the level of education, the characteristics of the labor market, and the income of the population through the prism of the impact of these areas on the health of the EU population (Mazeikaite et al., 2021). Tøge notes that unemployment as one of the most important socio-economic indicators has several negative consequences associated with a decrease in the income of the population, their state of health, etc. On this basis, he analyzes the relationship between unemployment, income, and health of the population, because these areas have not been fully studied in total (Tøge, 2016). Ganzleben and Kazmierczak focus on the preservation of the environment of the EU countries, as well as environmental risks, which are affected the health of the population. At present, there are new opportunities to study the complex relationships between environmental quality, socio-economic state, as well as health and well-being of the population of partner countries (Ganzleben & Kazmierczak, 2020). Based on the presented studies, the authors analyze the socio-economic indicators of the EU countries and identify the problems associated with the increase in inequality of the partner countries of the association.

3

Results

The authors pay special attention to the level of employment in the countries of the European Union, while analyzing the key socio-economic indicators (Table 1). In Austria in 2017, the employment rate was 72.2%, in 2018—73.0, in 2019—73.6, in 2020—72.4%. In 2020, compared to 2017, the employment rate increased by 0.2%. The calculation of forecast data didn’t show significant changes in this indicator. So, in 2021 the employment rate may reach 73.1%, in 2022—72.8, in 2023—72.6%. If this forecast is realized, the employment rate will increase by 0.4% compared to 2017 in 2023. In Belgium, by analogy with Austria, there are also no significant changes in the level of employment in the country. This indicator from 2017 to 2020 ranged from 63.1 to 65.3%. In 2021, this indicator may be 65.8%, in 2022—65.9%, in 2023—66.2%. In Bulgaria, based on the calculation of forecast data, there is an increase in the analyzed indicator: in 2021—70.1%, in 2022—70.5%, in 2023—70.5%. If this forecast is realized, the employment rate will increase by 3.6% compared to 2017 in 2023. In Hungary, the employment rate was 68.2% in 2017, 69.2% in 2018, 70.1% in 2019, and 69.7% in 2020. In 2020, compared to 2017, this indicator increased by 1.5%. Forecast data show an increase in employment in Hungary (in 2021—70.7%, in 2022—70.9, in 2023—71.2%). In Germany, for the entire analyzed period, there was a high level of employment in the country. This indicator varied from 75.2% to 76.7%. It is predicted that this indicator will amount to 77.0% in 2021, 77.1% in 2022, and 77.2% in 2023. In Greece, the employment rate in 2017 was 53.5%, in 2018—54.9, in 2019—56.5, in 2020—56.3%. In 2020, compared to 2017, the employment rate increased by 2.8%. Nevertheless, the calculation of the forecast data did not show significant positive changes in the level of employment in the country. In Denmark, by analogy with Germany, there was a high level of employment. It ranged from 2017 to 2020, from 73.2 to 75.0%. In Ireland, there is no significant change in the country’s employment rate, based on analysis. In Spain in 2017 this indicator was 61.1%, in 2018—62.4, in 2019—63.3, in 2020—60.9%. In 2020, compared to 2017, the employment rate decreased by 0.2%. Italy showed a similar trend as Spain. In 2020, compared with 2017, the employment rate in Italy decreased by 0.1%. Cyprus employment rate from 2017 to 2020 ranged from 65.6% to 70.5%. In Latvia, the employment rate in 2020 compared to 2017 increased by 1.5% and in Lithuania by 1.2%. Calculations of forecast data show an increase in this indicator in Latvia and Lithuania before 2023.

Assessment of the Socio-Economic Sphere of the Countries … Table 1 Dynamics of the employment level in the countries of the European Union for 2017– 2020 and calculation of the forecast of this indicator until 2023, %

Countries

2017

457 2018

2019

2020

Forecast 2021

2022

2023

Austria

72.2

73.0

73.6

72.4

73.1

72.8

72.6

Belgium

63.1

64.5

65.3

64.7

65.8

65.9

66.2

Bulgaria

66.9

67.7

70.1

68.5

70.1

70.5

70.5

Hungary

68.2

69.2

70.1

69.7

70.7

70.9

71.2

Germany

75.2

75.9

76.7

76.2

77.0

77.1

77.2

Greece

53.5

54.9

56.5

56.3

57.8

58.5

59.1

Denmark

73.2

74.1

75.0

74.4

75.3

75.5

75.6

Ireland

67.7

68.6

69.5

67.7

68.6

68.2

67.7

Spain

61.1

62.4

63.3

60.9

62.0

61.3

60.6

Italy

58.0

58.5

59.0

58.1

58.6

58.4

58.2

Cyprus

65.6

68.6

70.5

69.9

72.4

73.0

73.9

Latvia

70.1

71.8

72.3

71.6

72.7

72.6

72.8

Lithuania

70.4

72.4

73.0

71.6

72.9

72.5

72.5

Luxemburg

66.3

67.1

67.9

67.2

68.0

68.1

68.1

Malta

69.2

71.9

73.1

73.8

75.8

76.7

78.0

Netherlands

75.8

77.2

78.2

77.8

79.0

79.3

79.7

Poland

66.1

67.4

68.2

68.7

69.8

70.4

71.2

Portugal

67.8

69.7

70.5

69.0

70.4

70.0

69.9

Romania

63.9

64.8

65.8

65.6

66.6

66.9

67.3

Slovakia

66.2

67.6

68.4

67.5

68.6

68.6

68.7

Slovenia

69.3

71.1

71.8

70.9

72.2

72.1

72.2

Finland

70.0

72.1

72.9

72.1

73.6

73.6

73.9

France

64.7

65.3

65.6

65.3

65.8

65.8

65.8

Croatia

58.9

60.6

62.1

62.0

63.6

64.3

65.1

Czech Republic

73.6

74.8

75.1

74.4

75.2

75.0

75.0

Sweden

76.9

77.4

77.1

75.5

75.6

74.7

73.9

Estonia

74.1

74.8

75.3

73.7

74.3

73.8

73.3

Source compiled and calculated by the authors based on materials Population and social indicators of the CIS countries and individual countries of the world 2017–2020 (2021)

In Luxembourg, the employment rate was 66.3% in 2017, 67.1% in 2018, 67.9% in 2019, and 67.2% in 2020. In 2020, compared to 2017, this indicator increased by 0.9%. The calculation of forecast data shows a further increase in the level of employment in the country: in 2021—68.0%, in 2022—68.1%, in 2023—68.1%. The analysis of the employment level of Malta presents that indicator ranged from 69.2% to 73.8% from 2017 to 2021. In 2020, compared to 2017, it increased by 4.6%. In the Netherlands, by analogy with Austria and Germany from 2017 to 2020, there was a high level of employment in the country: in 2017—75.8%, in 2018—77.2, in 2019—78.2, in 2020—77.8%. In Poland, the employment rate was 66.1% in 2017, 67.4% in 2018, 68.2% in 2019, and 68.7% in 2020. In 2020, compared to 2017, this indicator increased by 2.6%. In Portugal in 2017, the employment rate was 67.8%, in 2018—69.7%, in 2019

—70.5%, and in 2020—69.0%. In 2020, compared to 2017, this indicator increased by 1.2%. In Romania, from 2017 to 2020, the employment rate ranged from 63.9% to 65.8%. The calculation of forecast data shows an increase in this indicator: in 2021—66.6%, in 2022—66.9, in 2023—67.3%. As for Slovakia, in 2017 the employment rate was 66.2%, in 2018—67.6, in 2019—68.4, and in 2020—67.5%. In 2020, compared to 2017, this indicator increased by 1.3%. In Slovenia, the employment rate was 69.3% in 2017, 71.1% in 2018, 71.8% in 2019, and 70.9% in 2020. In Finland, by analogy with Austria, Germany and the Netherlands, during the analyzed period, epy following high employment rates were being observed: in 2017—70.0%, in 2018—72.1, in 2019—72.9, and in 2020 year—72.1%. In France, the employment rate was: in 2017—64.7%, in 2018—65.3%, in 2019—65.6%, in 2020—65.3%. In Croatia, this indicator

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from 2017 to 2020 ranged from 58.9% to 62.1%. The forecast data show further growth in the employment rate in the country. In the Czech Republic, the employment rate in 2017 was 73.6%, in 2018—74.8, in 2019—75.1, and 2020 —74.4%. In the Czech Republic, the named indicator is one of the highest in comparison with other countries of Central and Eastern Europe of the European Union. In Sweden, the employment rate was 76.9% in 2017, 77.4% in 2018, 77.1% in 2019, and 75.5% in 2020. In Estonia, from 2017 to 2020, the employment rate ranged from 73.7% to 75.3%. In general, the analysis demonstrated that the most unstable state for this indicator was being observed in Spain and Italy from 2017 to 2020. The unemployment rate is also important socio-economic indicator. It should be noted that the unemployment rate in 2020 increased compared to 2019 in many Western European countries (Population & social indicators of the CIS countries & individual countries of the world, 2021). For example, the unemployment rate in Austria in 2019 was 4.6%, and in 2020—5.4%. In 2020, compared to 2019, this indicator increased by 0.8%. In Belgium, over the same period, the unemployment rate increased by 0.2%. In Ireland, it was 5.1% in 2019 and 5.8% in 2020. In Luxembourg, in 2020 compared to 2019, the unemployment rate increased by 1.2%. In the Netherlands, this indicator was 3.4% in 2019, and 3.9% in 2020. The countries of Central and Eastern Europe (the European Union) also demonstrate an increase in the unemployment rate. So, for example, in 2019 in Bulgaria this indicator was 4.3%, and in 2020—5.2%. In 2020, compared to 2019, the unemployment rate increased by 0.9%. In Hungary, over the same period, the indicator increased by 0.8%. As for Latvia and Lithuania, the unemployment rate has increased significantly. In 2019 in Latvia it was 6.5%, and in 2020—8.4%. In 2020, compared to 2019, it increased by 1.9%. In Lithuania, this indicator in 2019 was 6.5%, in 2020— 8.8%. In Poland, on the contrary, there was a decrease in this indicator for the analyzed period (in 2019—3.3%, in 2020— 3.2%). In Romania, the unemployment rate was 4.0% in 2019, and 5.2% in 2020. In 2020, compared to 2019, this indicator increased by 1.2%. Slovakia and Slovenia also demonstrate an increase in this indicator. So, in Slovakia in 2019 it was 5.8%, in 2020—6.8%. In Slovenia, this indicator increased by 0.5% in 2020 compared to 2019. In the Czech Republic, the unemployment rate in 2019 was 2.1%, in 2020 —2.6%. In Estonia, there was a significant increase in this indicator: in 2019—4.6%, in 2020—7.0%. In 2020, compared to 2019, it increased by 2.4%. It is especially important to analyze the countries of the Southern region of the EU according to this indicator. In

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Greece, due to the global crisis (2008–2011), the unemployment rate has been one of the highest in the European Union. In 2017, it was 21.7%, in 2018—19.5%, in 2019— 17.5%, in 2020—16.5%. In 2020, compared to 2019, the unemployment rate decreased by 1.0%. However, this indicator continues to be one of the highest in the EU today. The dynamics of the unemployment rate in Greece from 2017 to 2020 was analyzed, and the forecast of this indicator before 2023 was also calculated (Population and social indicators of the CIS countries and individual countries of the world, 2020, 2021). If a similar downward trend in the unemployment rate in Greece remains, then the calculation of the forecast (with high and low probability) has showed its further decline. If the forecast is realized with a high probability, the unemployment rate in Greece in 2021 will be 15.36%, in 2022— 13.64, and in 2023—11.93%. As for the forecast with a low probability, it also shows a decrease in the unemployment rate: in 2021—13.75%, in 2022—11.99, in 2023— 10.23%. In Spain, the unemployment rate was 14.2% in 2019 and 15.6% in 2020. In 2020, compared to 2019, this indicator increased by 1.4%. In Italy, on the contrary, the unemployment rate for the analyzed period decreased from 10.2% in 2019 to 9.4% in 2020. In Cyprus in 2019, this indicator was 7.3%, in 2020—7.8%. As for Malta, in 2020 compared to 2019, the unemployment rate increased by 0.8%. In Portugal, there was also an increase in this indicator for the analyzed period by 0.4%. In general, global economic imbalances, internal contradictions within the integration group significantly influenced the increase in this indicator in many EU countries (Malakhova, 2019b). The index of consumer confidence of the population is also an important socio-economic indicator. Let us analyze this indicator for individual countries of the European Union. In 2019, the index of consumer confidence of the population in all countries of the European Union was negative. So, this indicates the prevalence of negative assessments in society in the area of changes in the financial situation, the economic situation, as well as favorable conditions for large purchases. The lowest rates were recorded in Bulgaria (−22.7%), Spain—(−10.3%), Italy—(−16.1%), Slovenia—(−13.6%), etc. Also, the negative indicator was in some countries of Western Europe EU: in Belgium— (−12.0%); in Germany—(2.0%); in Luxembourg—(−2.7%), etc. The average indicator of the consumer confidence index in the EU was generally negative and amounted to −6.3%. Based on the analysis and the identified trends, the authors study the key programs and strategies of the EU countries to stabilize the socio-economic indicators of the countries of the integration group.

Assessment of the Socio-Economic Sphere of the Countries …

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Discussion

In modern conditions, the countries of the European Union and their institutions have developed a European Action Plan for the Social Rights of Citizens. It includes three ambitious goals for this integration group: (1) No less than 78% of the population aged 20–64 must be employed by 2030; (2) No less than 60% of all adults must be trained every year by 2030; (3) Reducing poverty or social exclusion by 15 million people. So, according to the European Commission, only 37% of citizens participated in training events annually as of 2016. In addition, about 91 million people (17.9 million were children aged 0–17) were at risk of poverty or social exclusion in the studied integration group in 2019 (https://ec. europa.eu/info/strategy/priorities-2019-2024/economyworks-people/jobs-growth-and-investment/european-pillarsocial-rights/european-pillar-social-rights-action-plan_en). Based on these assessments, the governments of the EU countries are actively developing plans and strategies to stabilize the socio-economic situation in the countries of the integration group and reduce the existing inequality in the union. They also have developed 20 principles of the European pillar of social rights, which will guide the European society towards stabilizing the social sphere and reduce economic inequality between partner countries. The European Commission has already presented several actions (steps) based on each principle of this program with the aim of further strengthening social rights in the European Union. In general, the formation of this program is based on joint efforts and developments of EU institutions, national, regional, and local authorities, as well as civil society (https://ec.europa. eu/info/strategy/priorities-2019-2024/economy-workspeople/jobs-growth-and-investment/european-pillar-socialrights_en). Figure 1 presents the key principles of the European pillar of social rights, priority areas for the implementation of these initiatives and the possible results of their promotion. Thus, in the first chapter of the program “Equal Opportunities and Access to the Labor Market”, special attention is paid to education, vocational training, and lifelong learning. The second chapter of the document “Fair working conditions” is about improving the working conditions of citizens, encouraging innovative forms of work, entrepreneurship, self-employment, etc. In general, this chapter covers a fairly wide range of areas of labor relations. The third chapter of

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Key principles of the European Pillar of Social Rights aimed at stabilizing the social sphere and reducing economic inequality Chapter I. Equal Opportunity and Access to the Labor Market Education, vocational training, and lifelong learning. Gender equality. Equal opportunity. Active employment support. Chapter II. Fair working conditions Reliable and adaptable employment. Wage. Information on the conditions of employment, and protection upon dismissal. Social dialogue and employee participation. The balance between work and personal life. Healthy, safe, and well-adapted work environment, as well as data protection. Chapter III. Social protection and inclusion Childcare and support for children. Social protection. Unemployment benefits. Old age income and pensions. Healthcare. Inclusion of people with disabilities. Longterm care. Housing and assistance for the homeless. Access to basic services, etc. The implementation of the key principles will increase the standards of working conditions, reduce inequality, reduce the level of poverty, unemployment, etc.

Fig. 1 Directions for the implementation of the European Pillar of Social Rights in the European Union and their impact on the socio-economic status of the population. Source compiled by the authors based on materials European Pillar of Social Rights (https://ec. europa.eu/info/strategy/priorities-2019-2024/economy-works-people/ jobs-growth-and-investment/european-pillar-social-rights_en)

the document “Social Protection and Inclusion” presents most of the principles from the European Pillar of Social Rights. They affect childcare and support for children, unemployment benefits, old-age income, pensions, etc. In modern conditions, the governments of the EU countries and their institutions are striving to stabilize the socio-economic indicators of the countries of the union. The analysis showed that individual indicators in the EU countries are either unstable or negatively affecting the socio-economic sphere of the member countries of the association. This program covers a wide range of issues and problems that, in the opinion of the European Commission, need to be addressed today. The exacerbation of problems in the integration group is also significantly influenced by external factors: the global crisis (2008–2011), the migration crisis, a pandemic, etc., therefore, only a comprehensive approach to solving acute problems can have a positive effect.

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Conclusion

Thus, the works of scientists and experts related to the socio-economic state of the EU countries, an increase in their inequality within the association have been investigated. Particular attention is paid to the analysis of the following economic indicators: employment rate, unemployment rate, and index of consumer confidence of the population. Key problems and trends in individual EU countries according to these indicators have been also identified. In addition, the programs and strategies of the governments of the EU countries, their institutions, aimed at stabilizing the socio-economic sphere of the countries of the integration group, have been studied.

References Bijsmans, P. (2021). The Eurozone crisis and Euroscepticism in the European press. Journal of European Integration, 43(3), 331–346. Biodiversity strategy for 2030. European Commission. https://ec.europa. eu/environment/strategy/biodiversity-strategy-2030_en. Accessed: 29 Sept 2021. Europe 2020: strategy for smart, sustainable and inclusive growth. European Commission. https://eur-lex.europa.eu/legal-content/EN/ ALL/?uri=celex:52010DC2020. Accessed: 3 March 2010. European Pillar of Social Rights. European Commission. https://ec. europa.eu/info/strategy/priorities-2019-2024/economy-workspeople/jobs-growth-and-investment/european-pillar-social-rights_ en. Accessed: 20 Jan 2021. Ganzleben, C., & Kazmierczak, A. (2020). Leaving no one behind— understanding environmental inequality in Europe. Environmental Health. https://doi.org/10.1186/s12940-020-00600-2.pdf. Accessed: 11 Oct 2021.

Malakhova, T. S. (2019a). Transformation of the world economy in the context of global instability. In Kondratieff waves: The spectrum of opinions (pp. 213–217). Uchitel Publishing House. Malakhova, T. S. (2019b). Foreign trade and marketing processes in the context of sustainable development. In T.S. Malakhova, M.A. Dubinina, A.A. Maksaev, R.V. Fomin (Eds.). International Journal of Economics and Business Administration, Greece, 2, 195–202. Mazeikaite, G., O’Donoghue, C., & Sologon, D. M. (2021). What drives cross-country health inequality in the EU? Unpacking the role of socio-economic factors. Social Indicators Research, 117–155. New Circular Economy Action Plan for a Cleaner and more Competitive Europe. European Commission. https://eur-lex.europa.eu/ legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98: FIN. Accessed: 11 March 2020. New Industrial Strategy for Europe. https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX:52020DC0102. Accessed: 10 March 2020. Population and social indicators of the CIS countries and individual countries of the world 2016–2019. (2020). Interstate Statistical Committee of the CIS, 20–23. Population and social indicators of the CIS countries and individual countries of the world 2017–2020. (2021). Interstate Statistical Committee of the CIS, 20–30. The European Green Deal. European Commission. https://eur-lex. europa.eu/legal-content/EN/TXT/?qid=1576150542719&uri=COM %3A2019%3A640%3AFIN. Accessed: 11 Dec 2019. The European Pillar of Social Rights Action Plan. European Commission. https://ec.europa.eu/info/strategy/priorities-2019-2024/economyworks-people/jobs-growth-and-investment/european-pillar-socialrights/european-pillar-social-rights-action-plan_en. Accessed: 03 Oct 2021. Tøge, A. G. (2016). Health effects of unemployment in Europe (2008– 2011): a longitudinal analysis of income and financial strain as mediating factors. International Journal for Equity in Health. https:// doi.org/10.1186/s12939-016-0360-6.pdf. Accessed: 8 Oct 2021. Zeitlin, J., Nicoli, F., & Laffan, B. (2019). Introduction: The European Union beyond the polycrisis? Integration and politicization in an age of shifting cleavages. Journal of European Public Policy, 26(7), 963–976.

Role of Consumer Cooperatives in Overcoming Unemployment in Contemporary Russian Society Natalya V. Nikishova

cooperation system has economic and educational resources to meet the challenges.

Abstract

The formation of the labor market in any country is always accompanied by such a complex socio-economic phenomenon as unemployment. It occurs when the supply of labor exceeds the demand for it. An increase in the unemployment rate causes significant damage to the economic sphere (i.e., a decrease in the gross domestic product, lower tax revenues, additional state expenditures to support the unemployed people, etc.) and the social sphere (i.e., an increase in social tension and a decrease in creative and labor potential). These facts necessitate a comprehensive study of the problem of unemployment and the search for effective mechanisms to reduce it. The paper aims to analyze the current growth of unemployment in Russian society and the role of consumer cooperation in combating it. The methodological basis of the research is based on a comprehensive and systematic approach, comparative-historical analysis, and general scientific methods, including synthesis, comparison, and analogy. The problem of unemployment in Russia is very acute. The reasons for the aggravation of the situation are economic and socio-political in nature. The measures taken by the government to address these problems are not effective enough, which leads to a decline in the standard of living of the population, the establishment of social imbalance in society, and the formation of negative attitudes towards government. Young people are in a challenging situation. Consumer cooperation has always played an important role in the economic activity of society. With proper attention and government support, consumer societies could be more effective and have a positive impact on solving the problem of unemployment in Russia. The consumer

N. V. Nikishova (&) Saransk Cooperative Institute (Branch) of Russian University of Cooperation, Saransk, Russia e-mail: [email protected]

Keywords

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Labor Employment Unemployment rate Poverty Public policy Cooperation Cooperative education

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JEL Classification

A14

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Z13

Z18

Introduction

The high level of well-being of the country’s population serves as the main characteristic of society’s development in the social sphere. All countries strive to improve the standard of living of each of their citizens through the development of productive forces and industrial relations, which will provide them with the necessary material and spiritual benefits. This reflects the implementation of public policy with a social orientation to maintain stability in society, beneficial to the country. In today’s conditions, Russia faces a growing problem of unemployment. It is a serious socio-economic phenomenon, which has the most substantial negative impact on all areas of society at the level of macroeconomic development. Loss of jobs and the inability to find work quickly leads to increased social tension and decreased creative and labor potential. At the level of the economy, there is a decrease in gross domestic product and tax revenues. The government has to take measures aimed at supporting the unemployed and, in this regard, redistributing budgetary funds, reducing funding for other areas of the country’s development. This necessitates a comprehensive study of the problem of unemployment and the search for effective mechanisms to reduce it.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_91

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The paper aims to analyze the growth of unemployment in Russian society and the role of consumer cooperation in combating this trend. The set goal is achieved by solving the following tasks: • Analysis of the phenomenon of unemployment from a philosophical approach; • Consideration of the primary causes of increasing unemployment in the country and the public policy in this area; • Definition of the place of consumer cooperation in the system of measures to prevent the growth of unemployment.

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Materials and Methods

The theoretical basis of the research is the works of Atukov (2009), Karmova and Aslanova (2020), Lukichev and Starodubtseva (2017), Maklakova and Cherkasskaya (2018), and Shakirova (2016). These works reveal the essence of unemployment from the standpoint of philosophical and economic approaches and analyze the role of consumer cooperation in overcoming it. The causes of youth unemployment are considered in the works of Lyashok (2021) and Orekhovskaya (2017). The research is based on a comprehensive and systemic approach, which allowed the author to consider unemployment as one of the most important phenomena of the socio-economic sphere of human existence. A methodological tool used in this research includes the methods of comparativehistorical analysis, identification of the socio-economic relations of the internal and external environment, and the study of foreign experience in the development of cooperation. The author also applied general scientific methods, including synthesis, comparison, and analogy. This methodology allowed the author to comprehensively examine the peculiarities of unemployment in Russian society and reveal the place of cooperation in overcoming it.

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Results

One of the objects of research in the system of social knowledge is the content of such a socio-economic phenomenon as unemployment. During scientific development, ideas about unemployment constantly changed, forming new approaches to its comprehension. Nowadays, the main approach is the economic one. According to the Federal law of the Russian Federation “On employment of the population in the Russian Federation” (April 19, 1991 No. 1032-1),

the essence of unemployment is “the presence in the country of able-bodied citizens who do not have work and salary, are registered in the employment service agencies to find appropriate work, seek work, and are ready to begin it” (Federation, 1991). It seems similarly appropriate to study unemployment from a philosophical approach, where this phenomenon is seen through the prism of being society and the individual. According to the doctrines on society of ancient philosophers, in particular, Plato (1994) and Aristotle (Gasparov, 1978), the social origin of a person determines activity (employment). Simultaneously, each stratum was obliged to perform all the duties and functions assigned to it, which shielded the country from economic and social damage. Unemployment, especially among the lower classes, was prosecuted by law. Medieval philosophy studied all phenomena and processes from the position of theology. Physical labor was perceived as “God’s punishment,” and only the unemployed (i.e., people who could engage in spiritual enlightenment) could achieve the soul’s salvation. The Renaissance humanism gave rise to a complete rethinking of unemployment, branding it as a social evil, a source of poverty and crime. Protestantism exalted labor even further by making it a priority in life. In New Age and Enlightenment philosophy, the right to work is considered a human right transferred to the government. The government, in turn, was obliged to ensure its implementation. According to de Saint-Simon (1948) and Fourier (1938–1939), the leading cause of unemployment was scientific and technological progress, which replaced physical labor with machines. Since the end of the eighteenth century, there started an in-depth study of the effects of unemployment and its impact on everyday life. In his writings, Hegel notes that the absence of constant labor activity leads to a profound degradation of the personality and weakens the human will to live (Hegel, 2000). Sart saw unemployment as a crisis situation, with which, however, individuals must fight on their own because there is no one else to blame (Sartre, 1953). Nevertheless, not everyone saw only the negative impact of unemployment. Representatives of the philosophy of pragmatism (Dewey, 2002; James, 1997) believed that sometimes unemployment could be beneficial because it gives a person free time to rethink life orientations, get a new education, and search for a more suitable job. In this case, the government, paying a cash benefit to the unemployed, will support him or her during this period. In the second half of the twentieth century, representatives of Western philosophy (Marcuse, 2002 and others) came to the idea that unemployment was a pseudo-problem of society. Late capitalist society, where employment is the

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main economic value, inculcates a repressive culture, infringes on free will, and propagates myths that have nothing to do with reality. Russian philosophers have also made significant contributions to the study of unemployment. Of particular interest are the works of M. A. Bakunin and S. N. Bulgakov, representatives of two opposing doctrines. M. A. Bakunin, being the anarchist, believed that the highest value of a person—“freedom is a purely human act, labor activity, contributing to the formation of an individual as a person. Labor helps combat deprivation and reveals the virtues and qualities of the individual” (Bakunin, 1989, p. 127]. Bulgakov, relying on the position of religious philosophy, defines that the spiritual sphere is the basic position in the life of society. Labor is endowed with a special sacred meaning, and its implementation helps a person master the social canons. An unemployed person who does not participate in economic activity becomes an outcast (Bulgakov, 1990). Soviet philosophy, which took the proclaimed principle of universal employment as its basis, paid absolutely no attention to this social problem. Only the transition to a market economy and the worsening employment situation in Russian society led to a resumption of research in this area. The problem of unemployment is currently acute in Russia. There are several reasons for this. Primarily, these include the following economic reasons: • The financial and economic crisis of 2020 and the COVID-19 pandemic led to a sharp economic downturn, forcing many employers to reduce production or shut down. This was reflected in many bankruptcies among individuals—119,049 in 2020 (an increase of 72.6% over 2019) (Fedresurs, 2021); • Low wages, which leads to the refusal of part of the able-bodied population to get a formal job or the choice in favor of organizations with unofficial salaries; • The uneven income of employees depending on the region and production segment, which is associated with the export-raw nature of the Russian economy; • The unstable labor market, which is due to its inflexibility. The reasons mentioned above are further enhanced by political reasons: • Foreign restrictive measures (sanctions) against Russia, affecting important sectors of the country’s economy; • An increase in the working-age population due to an increase in the retirement age. It is noteworthy that even before the Federal law “On amending certain legislative acts of the Russian Federation regarding the assignment and payment of pensions” (October 3, 2018) came into force (Federation,

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2018), there was a situation with a shortage of jobs for young specialists because most of the positions were occupied by people of pre-retirement or retirement age. Social reasons are as follows: • Scientific and technological progress that caused structural improvements in the economy, which led to the elimination of jobs; • Discrimination of certain categories of workers (in particular young people) in the labor market; • Personal degradation (unwillingness to work and high self-esteem); • Poor education. An increase in unemployment has serious, and sometimes irreparable, economic consequences. First, it is the reduction in the country’s GDP growth, which has a highly negative impact on the Russian economy and faces the global task of narrowing its gap with international economic leaders. Second, the able-bodied part of the population is losing the ability to maintain their standard of living and is slipping below the poverty line. It should be borne in mind that this category of people also cannot pay taxes, which means reduced revenues to the national budget. Third, the country loses skilled workers because the individual loses his or her practical skills when unemployed for long periods. In this regard, when one gets a new job, there is a need for mandatory skills development, which requires employers to spend financial costs and more time on the infusion of a work unit into the organization’s structure. For this reason, many business leaders are reluctant to hire long-term unemployed. In addition to the economic consequences, unemployment entails the deterioration of the socio-psychological climate in society. Primary, it is the unemployed person who experiences the strongest stress. An unemployed lose their bearings in life, social ties are disrupted, which leads to the emergence of various diseases, the treatment of which is unaffordable to the unemployed. The negative impact, even if indirectly, is felt by close relatives—there is aggression in relationships, conflicts, and, in the end, the collapse of the family. The decline in the material well-being of people also exacerbates the criminal situation in the country. The lack of money motivates the commission of illegal acts, first to satisfy one’s needs and then out of an unwillingness to work. This trend has a particularly strong impact on young people, who are already in the zone of special risk (in July 2020, the unemployment rate in the group aged 15–24 was 21.3%) (Lyashok, 2021, p. 78). The problem of unemployment requires the government to take a competent and comprehensive approach to solve it.

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There is an active and passive state policy, which considers all possible methods and means to reduce the adverse effects of unemployment. The first type includes the following: • Organizing additional jobs at enterprises in the public sector of the economy; • Stimulation of small and medium-sized businesses; • Expanding the foreign market for their goods; • Protectionism; • Tax breaks for entrepreneurs, etc. The main goal of the passive policy is to create a favorable microclimate and form an attitude toward unemployment as a temporary phenomenon (Molchanov and Molchanova, 2021, p. 90). The Russian government tries to fight unemployment. The following methods are used for this purpose: 1. Countercyclical policies aimed at eliminating mass unemployment; 2. Support of the unemployed through the payment of state benefits, the maximum amount of which equaled 12,130 rubles in 2021; 3. Modernization of employment services as part of the national project “Demography” to reformat them into advanced state staffing agencies. There are 2114 employment centers on the territory of Russia; 4. Organization of courses for retraining employees in professions demanded in the labor market; 5. Improvement of the system of collecting and providing information on available jobs. For this purpose, the Ministry of Labor and Social Protection of the Russian Federation has developed a website “Work in Russia.” Unfortunately, all measures taken do not have the expected positive result. There is a unique situation—there are enough vacancies at employment centers, but there are no willing applicants, or they do not fit the criteria set by the employer. In the first case, the unemployed are not satisfied with the wages because the work involves performing many functions for minimum wage. The second case affects mostly young professionals. University graduates often do not have the knowledge and skills necessary for further employment. It reveals the problems of today’s education— the programs of educational institutions do not have time to adapt to the rapidly changing economy (Orekhovskaya, 2017, p. 23). In our opinion, one of the best measures to solve the problem of unemployment is to support and spread the cooperative movement in the Russian Federation.

N. V. Nikishova

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Discussion

In recent decades, the cooperative system has represented the most successful sector of the economy. The known forms and types of cooperation are improved, and new ones are created. The territory of its distribution is vast—from New Zealand (20% of GDP) to Finland (14% of GDP) (World Cooperative Monitor, 2016). The rapid development of enterprises based on cooperative principles is due to two reasons—the economic benefit and the social role. In economic terms, cooperation is the most advantageous organizational and legal form, allowing one to combine private ownership and market economy capable of competing in the market for goods and services. Together, the 300 largest cooperatives have annual revenues of about $3 trillion (Akhmetov et al., 2019). As a form of cooperation, social cooperatives provide an excellent basis for developing social partnerships. By uniting based on the principle of mutual aid, people help each other solve economic and social problems. For example, according to Italian law, “two types of social cooperatives” can operate on its territory. The first type focuses on providing social services to the population—medical, educational, and informational. The second type aims to support people in difficult life situations (Lukichev and Starodubtseva, 2017, p. 150]. In the first place, the question of employment is solved because it gives a person the opportunity to integrate into society and provide themselves with the necessary material benefits. Cooperation in Russia has enormous experience and potential. Before 1917, 30,800 cooperatives operated in the Russian Empire; the country lagged behind only Germany. After the October Revolution, there was a de facto governmentalization of enterprises of the cooperative sector and their transformation into the basis of the country’s distributive economy. Unfortunately, during this period of the country’s development, many cooperative principles (entrepreneurial and social) have lost their validity. However, establishing a market economy has opened up new horizons for cooperation. The potential of cooperation, especially consumer cooperation, in solving the problem of unemployment is very significant. First and foremost, this concerns the sustainable development of rural areas, where unemployment is exceptionally high (Atukov, 2009). Preserving and increasing cooperative enterprises in rural areas, in the form of small industries, stores, and home-based enterprises related to folk crafts, will help create new permanent jobs and attract people for seasonal work. Additionally, the issue of providing goods and services to people who live in settlements remote

Role of Consumer Cooperatives in Overcoming Unemployment in Contemporary Russian Society

from regional centers and cities will also be addressed. This is clearly seen in those regions of the Russian Federation where the consumer cooperation system continues to operate (e.g., Republic of Chuvashia, Ulyanovsk Region, Kemerovo Region, etc.). The dissemination of cooperative values and principles among young people contributes to the labor education of the younger generation. It is highly important to develop “the spiritual need to work, the ability to overcome difficulties, and a sense of responsibility, duty, and interest in the future” in young people (Yakhina and Minnigaleeva, 2017, p. 138). As the most important social capital of the country and society, youth should be based on a system of values, where interaction with each other is a guarantee of stability and a high standard of living. Today’s life requires young people to be more receptive to scientific and technological progress. With its products and technologies, an innovative economy pushes the population to constantly improve their skills, which requires the formation of a system of continuous education. In this case, cooperation also has some groundwork in the form of the Russian University of Cooperation—an educational organization that includes 13 branches across the country. This institution has a long history and acts as an institution of development, with uniform requirements for the quality of education, qualifications, and scientific activity of teachers. The main priority of the organization is the employment of students. For this purpose, close ties are maintained with employers by implementing project management and sending students to gain practical skills at leading industry enterprises. Educational programs are implemented at the levels of secondary vocational and higher education. In addition to serving as a base for promoting cooperative culture, cooperative education institutions can retrain personnel in professions demanded in the current economy.

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Conclusion

From the perspective of the philosophical approach, the content of unemployment is revealed through such fundamental economic categories as “labor” and “employment.” Each stage of the evolution of society characterizes the individual determinants of the development of this socio-economic phenomenon, dictated by the established type of social relations and political and cultural conditions of life. Unemployment negatively impacts all areas of society, especially the economy and the population’s social well-being. This pushes countries to pursue an active policy to reduce the level of unemployment. The analysis of the situation in Russian society shows that in addition to the

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evident economic causes (i.e., financial and economic crisis, low wages, and instability of the labor market) affecting its growth, there are also social and political causes (i.e., international economic sanctions, pension reform, scientific and technological progress, discrimination against young professionals, degradation of personality, and low level of education). Implementing measures to combat unemployment, the government of the Russian Federation often focuses only on eliminating causes of an economic nature, forgetting about the rest. The consumer cooperation system can act as an optimal tool in the fight against unemployment. Its specifics are that it acts as a non-profit, socially-oriented public system with its own ideology, principles, and values. One of the areas of cooperation is the social protection of the population, which goes beyond the classical model of market economy enterprises. The organizational structure of consumer cooperation also includes the educational system, which can be used as a measure to eliminate the social causes of unemployment. However, for the sustainable development of the consumer cooperation system and the implementation of all directions of its work, it is necessary to increase government support. By making a significant contribution to the rehabilitation of cooperatives in society, the government will increase the social capital of cooperation, which is currently very low compared with foreign countries.

References Akhmetov, V. Ya., Kuzyashev, A. N., Nasretdinova, Z. T., & Ahmedina, G. B. (2019). Economic realization of property through cooperation. The Eurasian Scientific Journal, 11(4). https://doi.org/ 10.15862/61ECVN419. Atukov, O. K. (Ed.). (2009). Development of agricultural consumer cooperation as a regional anti-crisis project to reduce unemployment and support small businesses in rural areas. ANOO “Volga House of Knowledge.” Bakunin, M. A. (1989). Philosophy, Sociology, Politics. In V. F. Pustarnakova (Ed.). Pravda. Bulgakov, S. N. (1990). Philosophy of economy. In V. V. Sapov (Ed.). USSR. de Saint-Simon, H. (1948). Selected works (L. S. Tsetlin, Trans. from French). Moscow; Leningrad, USSR: Publishing house of the Academy of Sciences of the USSR. Dewey, J. (2002). The public and its problems (I. I. Murberg, A. B. Tolstov, & E. N. Kosilova, Trans. from English). Moscow, Russia: Idea-Press (Original work published 1927). Fedresurs. (2021, January 15). Bankruptcies in Russia: Results of 2020. Retrieved from https://download.fedresurs.ru/news/Бaнкpoтcтвa% 20cтaтpeлиз%20Фeдpecypc%202020.pdf. Accessed 20 August 2021 Fourier, Ch. (1938–1939). Selected works in 4 vols. In A. Dvortsov (Ed.). Sotsekgiz. Gasparov, M. L. (Ed.). (1978). Aristotle and ancient literature. Nauka. Hegel, G. W. F. (2000). The phenomenology of spirit (G. G. Spet, Trans. from German). Moscow, Russia: Nauka (Original work published 1807).

466 James, W. (1997). The will to believe (S. I. Tsereteli, Trans. from English). Moscow, Russia: Respublika (Original work published 1896). Karmova, B. Z., & Aslanova, L. O. (2020). Features of unemployment in Russia at the present stage. Fundamental Research, 12, 88–92. https://doi.org/10.17513/fr.42914 Lukichev, P. M., & Starodubtseva, L. V. (2017). The social role of cooperation: Lessons from the past for modern development. Izvestiya Saint-Petersburg State Agrarian University. Series: Economics and Land Resources, 3(48), 146–153. Lyashok, V. Yu. (2021). Youth unemployment in Russia: Scope and issues. Russian Economic Developments, 28(4), 77–80. Maklakova, E. A. (2018). Unemployment in Russia: Status, causes, forecasts. In G. V. Cherkasskaya (Ed.), Problems and ways of socio-economic development: City, region, country, world (pp. 49– 56). Pushkin Leningrad State University. Marcuse, H. (2002). Eros and civilization; One-dimensional man: Studies in the ideology of advanced industrial society (A. Yudin, Trans. from English). Moscow, Russia: AST. Molchanov, I. N., & Molchanova, N. P. (2021). Government financial regulation in a period of increasing global instability. E-Journal Public Administration, 85, 84–103. https://doi.org/10.24412/20701381-2021-85-84-103. Orekhovskaya, N. A. (2017). Professional education is one of the factors of solving the problem of the youth unemployment.

N. V. Nikishova Scientific Notes of V. I. Vernadsky Crimean Federal University. Philosophy, Political Science, Culturology, 3(2), 20–25. Plato. (1994). Collected works in 4 vols. (Vol. 3) (A. F. Losev, V. F. Asmus, & A. A. Takho-Godi (Eds.), Trans. from Ancient Greek). Moscow, Russia: Mysl. Russian Federation. (1991). Federal law “On employment of the population in the Russian Federation” (April 19, 1991 No. 1032–1, as amended July 2, 2021). Moscow, Russia. Russian Federation. (2018). Federal law “On amending certain legislative acts of the Russian Federation regarding the assignment and payment of pensions (October 3, 2018 No. 350-FZ, as amended June 28, 2021). Moscow, Russia. Sartre, J.-P. (1953). Existentialism is a humanism (M. Gretzky, Trans. from French). Moscow, USSR: Foreign Languages Publishing House (Original work published 1946). Shakirova, N. V. (2016). Agricultural consumer cooperation as a means of fighting poverty. Problems of Modern Science, 21, 73–83. World Cooperative Monitor. (2016). Exploring the cooperative economy: Report 2016. Retrieved from https://monitor.coop/sites/ default/files/publication-files/wcm2016-final-web-1602953294pdf. Accessed 23 August 2021 Yakhina, L. T., & Minnigaleeva, V. Z. (2017). Consumer cooperation and its role in the development of a market economy. Scientific-Methodological Electronic Journal “Koncept,” 31, 136– 140.

Development of Cooperation Legislation in Germany Mikhail P. Belyaev , Andrey A. Boltaevskiy , Vitaly A. Maltsev , Anna V. Stadnyuk , and Anna Sh. Elyazyan

Abstract

Keywords

This paper analyzes the German legislation on cooperation. At the same time, chronological, comparative historical, as well as dialectical methods are used. Cooperative legislation originated in Germany in the second half of the nineteenth century. During its development in the twentieth century, there was a process of its improvement. Important changes concerning the issues of cooperative control were made in the 30 s. A committee for cooperative law was created at the German Law Academy. The main directions of the reform of cooperative legislation are prepared. The issues of this reform were repeatedly considered after the Second World War. The ban on the sale of products produced by cooperatives to persons, who wasn’t their members had been cancelled, the procedure for registering cooperatives was changed. The provisions concerning the bankruptcy of cooperative organizations and the transformation of companies into other legal entities were clarified. The decisions of the authorities of the European Community in terms of accounting and reporting had a significant impact on this branch of legislation. Another reform of cooperative legislation was carried out at the beginning of the twenty-first century. As a result, its status of cooperatives has largely approached the status of economic societies. The main directions of development and shortcomings of the existing legislative framework are revealed in this article.

Law Regulation Cooperative

M. P. Belyaev (&) . A. A. Boltaevskiy . V. A. Maltsev . A. V. Stadnyuk . A. Sh. Elyazyan Russian University of Cooperation, Mytischi, Russia e-mail: [email protected] A. A. Boltaevskiy e-mail: [email protected] V. A. Maltsev e-mail: kafi[email protected] A. V. Stadnyuk e-mail: [email protected]

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Partnership

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Bankruptcy

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Credit

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JEL Codes

K11

1

. . . . . К15

K23

K31

К40

К49

Introduction

The main purpose of this work is to analyze and identify the main directions of the development of German legislation on cooperation.

2

Materials and Methods

Questions of the history of the development of German legislation on cooperation are considered in the works of Gerds and Korinets. Chronological, comparative-historical, and dialectical methods are used in this research.

3

Results

All major developed countries of the West, including the USA, Great Britain, and Germany, have developed a system of cooperation. In Germany, there were about 7800 cooperatives with more than 20.4 million shareholders in cooperatives at the end of 2015 (Gerds & Korinets, 2016). German cooperative legislation is still based on the Cooperative Act. This regulation has a long history. Schulze-Delitzsch and Raiffeisen stood at the origins of German cooperation, which sought a legislative regulation of its activities. On March 27, 1867, a law was adopted in Prussia on the legal status of industrial and cooperative

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_92

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partnerships. These two people, independently of each other, founded the first cooperatives. In 1846, Raiffeisen in Weierbusch founded the first rural association, and in 1862, the Heddesdorf Loan Fund Society, which is considered the first cooperative in the modern sense today. At the same time, on the principles of mutual assistance, self-government and self-responsibility, Schulze-Delitzsch founded the “Raw Association” to support carpenters and shoemakers in 1847 and the “Society for the Promotion of Obtaining Credits”— the predecessor of today’s banks in 1850 (Gerds & Korinets, 2016). On the proposal of Schulze-Deltzsch, on July 4, 1868, the law of the North German Confederation on cooperation was adopted, and on May 1, 1889, the “Imperial Law Concerning Industrial and Cooperative Partnerships”. The adoption of the imperial law was influenced by the appeal of Schulze-Delitzsch “Material for the Revision of the Law on Cooperatives” in 1883. As a result, German cooperation received a legislative framework, with the help of which it successfully developed. In accordance with this law, limited liability of cooperatives was allowed, the status of members of partnerships and the grounds for loss of membership was settled, and audit was introduced, as well as the creation of central unions of partnerships and the receipt of loans through credit societies were allowed too. It was forbidden to transfer goods through consumer cooperatives to persons, who weren’t their members. Some changes and additions were made to the text of the law on May 20, 1898. On July 1, 1922, more and more changes were made to the law: for large cooperatives, a meeting of representatives was introduced as the supreme governing authority, and a simplified procedure was established for the merger of cooperatives. The law of May 18, 1933, made it possible, in case of long-term insolvency, to permit the members of the partnership to have access to the balance of the distributed funds. As a result of the adoption of the law of May 26, 1933, fines for gross violations of the cooperative’s charter were tightened. The Decree of May 30, 1933, extensively regulated the issues of providing balance sheets by registered partnerships and introduced appropriate changes regarding increased requirements for their publicity. The law of December 20, 1933, was intended to strengthen the legal protection of members of the association. It admitted their limited and unlimited liability. With the help of this, it was possible to eliminate the unreasonable claims of creditors in relation to the members of cooperatives about the obligation to make additional payments to the statutory fund. However, the definition of the type of responsibility remained unclear. The law regulated the procedure for forced liquidation in connection with the insolvency of the cooperative and the relationship between the cooperative and its members in the course of bankruptcy.

M. P. Belyaev et al.

As a result of the adoption of the law on October 30, 1934, the procedure for conducting inspections of the cooperative underwent fundamental changes. The review period for cooperatives with a certain balance amount was reduced to one year, and all cooperatives were required to be members of one of the associations that would have powers to conduct the review. The reason for the introduction of such compulsory membership was the fact, that during the crisis of 1929–1933, cooperatives, which were members of associations, were able to cope with the difficulties that arose better than cooperatives, which weren’t members of such associations. Due to this, associations, which had the corresponding functions, were defined as the only carrier of reviews. The civil and administrative-legal liability of the association, which had the functions of verification, and the controller were regulated in detail. The issue of a public cooperative economic controller was resolved, and the requirements for its personal and professional qualifications were determined. It had a lot of responsibility. Innovations in the legislation provided associations with the appropriate powers to demand the results of the audit and to insist on eliminating the identified shortcomings. In the Decree on Inspections and Annual Reports of Credit Institutions of July 7, 1937, it was (at first in limited scope) also ordered for credit institutions to be audited and to publish annual reports on the results of their activities. With the help of the law of April 13, 1943, following the example of the stock law of January 30, 1937, new legal provisions were formulated in order to facilitate and simplify the merger of cooperatives, without harming the interests of their members. In 1936, a committee on issues of cooperative law was created at the Academy of German Law, which was entrusted with the task of preparing a reform of this branch of law. The result of the study was published in 1940 in detailed note “Legal Norms of German Cooperatives”, but the war delayed plans for reforms of cooperative law. After the end of the war and the formation of the Federal Republic of Germany, the Bundesrat played an active role in the reform of legislation on cooperation. The Law on Streamlining Legislation on Trade and Legal Issues of April 18, 1950, was adopted. An audit of pre-war legislation was carried out in it. The Decree on economic controllers in cooperation of 07.07.1936 was no longer applied because the institutions that were created by it ceased to exist. The legal basis for the position of economic controllers in cooperation was streamlined as a result of the adoption of the relevant Law of July 17, 1952. The division of Berlin into eastern and western sectors necessitated the adoption of the Law of 01.09.1951 on the legal regulation of industrial and cooperative partnerships located in Berlin. Subsequent changes to the Law on Cooperation after the end of World War II were associated with the amendment of paragraph no. 1 of the Law on

Development of Cooperation Legislation in Germany

Industrial and Cooperative Partnerships and the adoption of the Law on Discounts of 07.21.1954. Paragraph No. 8 the 4th indent of the Law on Cooperation was repealed, which prohibited consumer associations from selling goods to persons, who weren’t their members. Its use in the old version has been criticized since the end of the war. Other provisions of paragraphs No. 31, 152, and 153, which were in connection with paragraphs No. 4 and 8, were successively cancelled (Gerds & Korinets, 2016). The Law on Amendments and Additions of July 26, 1957, was adopted to simplify the procedure for collecting court costs, the number of prescriptions for court costs were amended and supplemented. In connection with the adoption of the new Law on Notarization dated 08.28.1969, important provisions of the Law on Cooperation were also changed. Approaches to the certification of papers were unified, which should have passed only through a notary. All provisions of the Law on Cooperation were also changed, in particular, allowing for the direct entry of relevant documents into the court record. All of these were about the prescriptions, which are specified in paragraph No. 11, the 3rd indent, paragraph No. 28, the 2nd indent, paragraph No. 84, the 3rd indent, and paragraph No. 157, the 1st indent of the Law on Trade and Production Cooperatives (https://www.gesetze-im-internet. de/geng/). However, according to the provisions of paragraph no. 63 of the Notarial Act, the responsibility for public certifications carried out following the Land law by other persons or authorities could be assigned to other authorities. This exceptional opportunity was used in many cases by the federal states (https://www.gesetze-im-internet.de/beurkg/). While discussing the problem with the elimination of paragraph No. 8, the 4th indent of the Law on Trade and Production Cooperatives, economic circles that competed with cooperatives had questions about their position in today’s economic life and, in particular, in the area of trade. On December 10, 1953, a debate took place in the Bundestag on the abolition of the ban on the sale of goods to persons, who weren’t members of consumer cooperatives. After this issue was discussed in principle, the Bundestag and the Bundesrat approached the Federal Government in the summer of 1954 with a proposal to inspect the existing cooperatives and immediately start preparatory work for the reform. Based on this, in agreement with the Federal Ministry of Economics and other involved ministries, an expert committee of legal scholars and economists, representatives of cooperatives, the trade sector and artisans was created under the Ministry of Justice of the Federal Republic of Germany to discuss the fundamental issues of amending the Law on Cooperation. The consultations were completed in July 1958. The results of the work of the expert committee were published by the Federal Ministry of Justice in 3 volumes: “On the Reform of Cooperative Law”, “Abstracts”, and “Materials”. In the preface to the 1st volume, Neumeier,

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Minister of Justice of the Federal Republic of Germany in these years, noted that the current Law on Cooperation has justified itself as a legal basis for the existence of cooperatives. On February 23, 1962, the Ministry of Justice submitted for public discussion an expert draft law on cooperation and asked the leading unions in the area of economics, in particular the leading cooperative unions, to express their opinion on the proposed law. The cooperative unions carefully checked the expert draft and rejected it on March 29, 1963. In a wide circle of industry representatives and economists, the opinion prevailed that the proposed draft wasn’t suitable as the basis for future law on cooperation. In the course of the further development of the economy, new views were formed on the implementation of the reform of cooperative legislation. On October 9, 1973, the law was passed and entered into force from January 1, 1974, to improve the situation of cooperative capital, as well as to strengthen the leadership in cooperative societies. So, the charter of the cooperative could establish that its members during the bankruptcy procedure did not need to provide additional financial contributions to the property of the insolvent debtor. The charter could determine that the total amount of share contributions would generate a profit in the form of accrued interest. He could grant the right to members of the cooperative in case of withdrawal from its composition, the payment of a share from the participation fund, which was created for this purpose. The charter could determine that there was no increase in the amount of the guarantee (guarantee) for members of the cooperative. In accordance with the new law, the board managed the cooperative based on its responsibility; the representation of the cooperative, with the help of the charter, could be organized quite freely; members of the partnership were allowed to issue general trade powers of attorney and powers to others; the ban on granting loans to persons, who weren’t members of the cooperative had been no longer contained in the law (Gerds & Korinets, 2016). The 4th Directive of the European Community was intended to unify various legal requirements, especially accounting and reporting. Based on this Directive, the Federal Republic of Germany adopted the Law on the Balance Directive of December 19, 1985 (https://www.bgbl.de/). This law amended various norms of the Law on Cooperation. This concerned, for example, issues of accounting and reporting (paragraph No. 33) and mandatory cooperative reviews (paragraph No. 53). Due to amendments to the Law on Cooperation, they were also made to some by-laws and articles of the Commercial Code. The law on accelerating the registration procedure of 12.20.1994 contained significant changes for cooperatives, in particular, that the “list of members of the partnership” would no longer be maintained by the commercial court, but would be transferred to the sphere of cooperatives’

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responsibility. The law was also an occasion to replace the provisions of paragraph No. 43a of the Law “On Trade and Production Cooperatives and on the Obligation to Introduce Meeting of Representatives”. So, each cooperative was granted the right to establish in its charter meeting of representatives as the supreme body of the partnership, if the number of members of the partnership was more than 1500. This meant that cooperatives with a large number of shareholders could establish in the charter a general meeting again as the supreme authority in order to provide an opportunity for all its members to directly participate in the work (https:// www.gesetze-im-internet.de/geng/). The provisions of paragraphs No. 63e, 63i, 93a, and 93s of the Cooperation Act were repealed by the Law on the Transformation of Legal Entities of October 28, 1994. The consequence of these changes was the transfer of the provisions on the merger of cooperatives (paragraphs No. 93a to 93s) and on cooperative associations with verification functions (paragraphs No. 63e to 63i) from the Cooperation Act to the new Transformation Act (Section 1) (https:// www.gesetze-im-internet.de/umwg_1995/BJNR321010994. html). For this reason, the legislator met the wishes of economic circles and cooperatives, providing for the possibility of transforming business companies into cooperatives, so, the transformation of cooperatives, in particular, their separation (separation), division of property, as well as change in form. These changes in the legal regulation of cooperatives created the prerequisites for their further successful work. It should be noted, that cooperative law with all the changes and conflicts contains inalienable structural elements that reflect the basic principles of cooperation. Practice, science, and legislation call for the preservation and keeping of these basic principles. The Bankruptcy Law of October 5, 1994, as amended on August 31, 2013, which entered into force on January 1, 1999, established the bankruptcy procedure for legal entities (paragraph No. 11, the 1st indent) (https://www.gesetze-iminternet.de/geng/). In this law, the features of the bankruptcy of cooperatives were regulated. The legislator, who was influenced by the global financial crisis, saw the need to adapt the Bankruptcy Law to new economic and social challenges. This normative act was based on the basic principle of equal satisfaction of creditors’ claims. Since 2012, three levels of the legal form of bankruptcy had been applied for this, which also changed the Law on Cooperation. The first level entered into force on March 1, 2012, and expanded the instruments of rehabilitation (optional, a current committee of creditors; claims against the acquisition of company shares in terms of bankruptcy proceedings; expansion of personnel management and defence procedures

M. P. Belyaev et al.

on the American model). The second level, which came into force on July 1, 2014, regulated the procedure for consumer insolvency and release from residual debts. The law “On the Reduction of the Procedure for Releasing Residual Debts and Protecting the Rights of Creditors” of July 15, 2013, providing individuals, who were establishing their enterprise, the second chance from July 2014, if they would pay part of the debts and procedural costs (https://www.gesetzeim-internet.de/inso/). In 2006, another reform of cooperative legislation was carried out, which devalued the principles of cooperation. Initially, it was supposed to secure the participation in the cooperative only for members, who made investments. In this regard, property contributions were allowed. It was also possible to determine the minimum capital in accordance with the charter. The number of founders was reduced from seven to three. The Supervisory Board became an optional authority, and a one-person board was allowed. Thus, in terms of their structure, cooperatives have come much closer to economic societies. Even the concept of “comrade” was changed to “member” by the concept (Gerds & Korinets, 2016).

4

Conclusion

The development of cooperative legislation in Germany has come a long way since the nineteenth century. Currently, there is a gradual convergence of the legal status of a cooperative and a business entity. This process can’t be called positive, due to the significance of the basic principles of cooperation is being lost.

References Beurkundungsgesetz [Notarization Act]. https://www.gesetze-iminternet.de/beurkg/. Accessed: 26 Oct 2021. Das Bundesgesetzblatt [The Federal Law] (BGBl.). Bundesanzeiger Verlag [Federal Law Publisher]. https://www.bgbl.de/. Accessed: 26 Oct 2021. Gerds, M., & Korinets, R. (2016). Development of cooperation in Ukraine and Germany—agrarian and political proposals for Ukraine, 56. Gesetz betreffend die Erwerbs und Wirtschaftsgenossenschaften [Law on the acquisition and economic cooperation]. https://www.gesetzeim-internet.de/geng/. Accessed: 26 Oct 2021. Insolvenzordnung [Insolvency Code]. https://www.gesetze-im-internet. de/inso/. Accessed: 26 Oct 2021. Umwandlungsgesetz [Transformation Act]. https://www.gesetze-iminternet.de/umwg_1995/BJNR321010994.html. Accessed: 26 Oct 2021.

Agricultural Cooperatives in France: Toward Environmental Neutrality and Sustainability Svetlana V. Ivanova

Abstract

JEL Classification

The paper focuses on studying the current state of agricultural cooperatives in France in the context of growing instability and restructuring of the global economy. The paper aims to identify opportunities, risks, and trends in the functioning of cooperatives as carriers of a specific form of ownership with non-capitalist features. As a form of social and solidarity economy, agricultural cooperatives have faced the contemporary challenges of digitalization, transnationalization, EU Common Agricultural Policy reforms, and environmental issues. The authors analyze changes in the share of the cooperative sector in French agriculture and structural changes in the scale, specialization, organizational structure, and strategies of the research object. The thesis of the growing trend towards the enlargement of cooperatives and their stratification into cooperatives of “traditional” and “entrepreneurial” type is disclosed. The principles and practices of “fair trade” as a factor supporting traditional French cooperatives and thus sustainable development of territories are summarized. The authors conclude about the growth of organic farms and the active involvement of agricultural cooperatives in organic farming, including medium and small farms. In France, there is a growing demand for organic food, especially pronounced against the backdrop of the COVID-19 pandemic.

O35

Keywords

Agricultural cooperatives Sustainable development

..

France Risks

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Organic farming

S. V. Ivanova (&) Plekhanov Russian University of Economics, Moscow, Russia e-mail: [email protected]

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1

. . . . O52

P13

Q01

Q13

Introduction

France is famous for its cooperative traditions and practices dating back to the mid-nineteenth century. The famous French socialist utopians were cooperators in spirit. Cooperatives were actively created primarily in rural areas, where most of the country’s population lived. Nowadays, France remains a major producer and exporter of agricultural products to the EU and the rest of the world (Nazarenko, 2009). Historically, an extensive system of various forms of cooperation of farmers among themselves and with other participants in the reproductive process has developed in France. In particular, France produces 17% of all European milk (cow, goat, and sheep). The French dairy industry offers a variety of unique products, including more than 1000 cheeses, including 50 AOPs (Protected designation of origin). France exports 40% of its products. In this sector, 240 dairy cooperatives represent 55% of milk produced, 46% of milk processed, 20,000 employees, and 55,000 associate cooperators (Agricultural Cooperation in France, n.d). Agricultural cooperatives exist alongside large agricultural holdings, retail giants, and distribution systems. The cooperative form of ownership differs from the joint-stock (private) form and aims to unite people, not capitals. Historically, farmer cooperatives have been tied to a specific territory and have a vested interest in its sustainable development. Farmers unite primarily to reduce costs in the purchase and operation of expensive machinery and equipment to process harvested agricultural products, jointly develop consumer-recognizable brands, and achieve economies of scale. As understood by La Coopération Agricole (aka Coop de France), an agricultural cooperative is a contemporary business model that considers current economic, social, and environmental challenges. This

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_93

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S. V. Ivanova

business model of “cooperative capitalism” combines entrepreneurial freedom, economic solidarity, and territoriality, placing farmers at the center of the cooperative’s management and development project. According to La Coopération Agricole, agricultural cooperatives in France include 2300 agricultural and food cooperatives, uniting mostly very small (up to 10 people employed), small, and medium farms representing every third French food brand. Agricultural cooperatives unite three-quarters of all farmers in the country and employ 190,000 workers. These cooperatives are often vertically integrated, covering all stages of production from the field to the storefront. This allows distributing the income generated in the last stage to agriculture and creating certain sustainability of the riskiest activity area. Thus, the relevance of the research is determined by the importance of the cooperative sector in today’s agriculture in France in terms of the volume of products produced and in terms of ensuring sustainable development of territories. The paper aims to identify opportunities, risks, and trends in the functioning of cooperatives as carriers of a specific form of ownership, which has non-capitalist features. As a form of social and solidarity economy, agricultural cooperatives have faced the current challenges of digitalization, transnationalization, the reforms of the EU Common Agricultural Policy, and environmental issues. In this regard, the objectives of the study are as follows: • To analyze changes in the scale and organizational structure of agricultural cooperatives in France; • To identify new trends and the degree of involvement of the research object in producing organic agricultural products.

2

Materials and Methods

The research is based on the use of several methods, including abstract-logical method, content analysis, comparison, grouping, expert analysis, and monographic and graphic methods. The information basis of the study research includes the following data: • Official websites of particular French agricultural cooperatives and cooperative associations, especially La Coopération Agricole; • Scientific articles on the selected topic, in particular, the work of Filippi et al. (2008); • Relevant information from specialized newspapers and magazines.

3

Results

In France, cooperatives are differentiated according to their size, participation in territorial development, environmental responsibility, relationships with cooperative members and partners, and versatility or narrow specialization in the production of specific goods. Agricultural cooperatives cover 18 sub-sectors of agriculture, including honey, grapes and wine, liquor, tobacco, flax, perfume and medicinal plants, forest and wood, beets and sugar, fruits and vegetables, seeds, poultry, beef, pork, milk and dairy products. Among the top 10 largest French cooperatives by turnover, three cooperatives specialize in the production and sale of grain, one in the production and sale of sugar (TEREOS), two in milk production, one in the production of pork, and three cooperatives are universal (polyvalent). These cooperatives are among the top 20 largest European cooperatives, lagging behind German, Dutch, and Danish cooperatives in terms of revenue. As of 2020, the largest French cooperative is InVivo. The enlargement of cooperatives is carried out by combining (merging) several cooperatives into one and creating subsidiary structures and partnerships with enterprises of different forms of ownership (including foreign ones). This strategy is often used by multinational corporations (InVivo, n.d; Ivanova & Agibalova, 2020). Thus, the InVivo group was created in 2001 as the result of a series of mergers between French national unions of cooperatives of different specializations. It began in the postwar period with the formation of UNCAC (National Union of Agricultural Grain Cooperatives) and UNCAA for Supply (National Union of Agricultural Supply Cooperatives). InVivo is now an association of 192 cooperatives and their subsidiaries with an annual turnover of 5.1 billion euros. In 2020, the association acquired the private Soufflet group (a large trader of barley, wheat, rice, beans, malt, and flour) with an annual turnover of 4.9 billion euros. According to the group, its activities are divided into four areas (Ivanova et al., 2021): • Bioline InVivo (agriculture); • InVivo Grains (international trade); • InVivo Retail (garden center and food distribution) and Cordier by InVivo (wine); • InVivo Digital Factory; • Bioline InVivo is a division that specializes in the following areas; • Seed breeding and selection; • Production of special fertilizers and plant protection products and biocontrol; • Software for the digitalization of agriculture.

Agricultural Cooperatives in France: Toward Environmental Neutrality and Sustainability

Simultaneously, it is an umbrella brand with an annual turnover of 486 million euros placed in 14 countries. Multibranch, multibrand, and multichannel InVivo Retail operates in three B2C areas: gardening, pet care, and food distribution. Its turnover reaches 1.4 billion euros. Positioning itself as an intermediary between cooperatives working with InVivo in the field of grains and international buyers, InGrains ensures the export of grains of French origin produced in cooperatives (turnover— 1.23 billion euros, 12 port facilities) (InVivo, n.d.). Created by InVivo (earlier InVivo Wine) in 2015, Cordier, along with its partner cooperatives, helps build a sustainable wine industry and promotes the success of French wines worldwide. The nine cooperative groups that make up the InVivo Wine division allow Cordier by InVivo to benefit from a strong and reliable winery base that ensures its stocks. Rooted in different regions (Bordeaux, Rhone, Southwest, Languedoc, and Beaujolais), these groups bring together around 3600 grape growers and 25,000 ha of grapevines. According to the group’s website, since 2018, Digital Factory’s mission has been to harness the power of digital technology to support and accelerate the transformation of agriculture. In 2019, Digital Factory worked with nine pilot cooperatives to develop a digital platform for selling agricultural products and services—aladin.farm. It is a French e-commerce alternative that meets the needs of farmers and offers a complete professional catalog of products and services with local offerings managed by each cooperative and updated in real-time. Streamlined processes, 24-h availability, and a simple and intuitive customer interaction process are all benefits that make this scalable digital platform an asset for cooperatives, farmers, and their advisors. According to French researchers (Filippi et al., 2008), since 1990, there has been a tendency to increase the share of subsidiaries subject to commercial law in the total turnover of cooperative products to the detriment of the weight of independent cooperatives. The highest concentration level has been achieved in the production of sugar, malt, and vegetables, where markets tend to oligopoly. The most fragmented is the sphere of production of grapes and wine. Consolidation, along with the strengthening of the cooperative’s position in commodity markets, creates new problems (Agricultural Cooperatives Identity, Issues and Challenges. Debate, 2014). The increasing complexity of management leads to the dilution of the essence of the cooperative as a special form of economic management. There is a growing gap between ordinary farmers participating in cooperatives and managing directors. The presence of subsidiary structures and their internationalization exacerbates this trend. The issue of increasing the educational level of cooperative members (especially elected officials)

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and the transparency of information for all cooperative members to participate in and control the activities of management structures, especially regarding the terms of contracts and redistribution of financial flows within the cooperative, becomes increasingly acute. In response to the changing competitive environment, agricultural cooperatives have developed a variety of strategies. In addition to concentration and consolidation, cooperatives seek vertical integration, particularly in the dairy sector. Sodiaal (Société de diffusion internationale agro-imentaire) is the largest French group, consisting of Sodiaal Union, Sodiaal International, and their subsidiaries. Sodiaal Union is a dairy cooperative with 10,695 farms. Sodiaal International consolidates 1714 processing plants producing packaged liquid and powdered milk, a wide range of cheeses, baby food and milk ingredients, and several other dairy products (SODIAL, 2020). The total turnover is 5 billion euros. This integration includes processing agricultural products, commercial marketing, branding, and R&D. Another strategy is diversification and the creation of multiple alliances between diversified cooperatives. A large universal French cooperative is Terrena, whose roots go back to the late nineteenth century. Nowadays, the cooperative unites 21,500 farms and 14 thousand employees. The cooperative specializes in various sectors of livestock (including dairy and meat, poultry, pork, and rabbit and pig breeding), crop production (including horticulture and vineyards), distribution and logistics, production of agricultural machinery and equipment, development of technology and innovation, and organic farming (Terrena, n.d.). The internationalization of agricultural cooperatives is limited by their financial capabilities. The use of borrowed funds can lead to a conflict of interest between cooperative members and external investors. Nevertheless, the export orientation is characteristic of all agricultural cooperatives in the top 10 in terms of revenues. Instead of foreign direct investment in other countries, large cooperatives tend to use a partnership strategy, which saves them money. Direct financing to the cooperative’s subsidiaries is also used. The most internationalized cooperative in France is Tereos (sugar beet, cane, sugar, ethanol, and starch production). The cooperative has a cloud of subsidiaries and partners in 18 countries (Tereos, n.d.). There is a social demand for organic food in France, which has increased due to the problems caused by the COVID-19 pandemic. Organic farming is an integral part of sustainable development. It is a production method that eliminates the use of synthetic chemicals, including insecticides, herbicides, fungicides, chemical fertilizers, and genetically modified organisms. It is a way to conserve soil and water resources and biodiversity and produce healthy and safe food for animals and humans.

474

France is steadily among the top three European countries in organic farming (2 million hectares), the number of producers of organic products (more than 41.6 thousand households), the number of companies processing organic products (16.5 thousand households), the number of companies importing organic products (545 companies), the volume of sales through retail (9139 million euros), and the average annual growth rate of such sales (more than 10%). However, France lags behind Scandinavian countries and Switzerland in a number of relative indicators, including per capita consumption of organic products (Willer et al., 2020). Figure 1 shows an increase in the number of French farms engaged in organic farming. By 2020, the number of organic farms in France increased from 11,401 farms in 2005 to 53,255 farms (4.7 times). The most consumed organic foods in France include fruits, vegetables, dairy products, and eggs. Organic farming in France involves 750 cooperatives of various specializations. For farmers, cooperation is especially important during the transition from traditional to organic production, passing certification, purchasing seeds, seedlings, young animals, and equipment for harvesting, and storing and sorting products. As a result, the quality of the product, traceability of all stages of its production, and compliance with organic standards are ensured. The cooperative’s approaches to marketing allow these organic products to be marketed through all channels: supermarkets, specialty stores, canteens, local markets, wholesale markets, direct deliveries to processors, and other channels. Cooperatives account for three-quarters of the organic oilseed and

S. V. Ivanova

protein cereals and 40% of organic milk (Agricultural Cooperation in France, 2021). Cooperatives can help further expand the involvement of individual farmers in the ecological transition (Bianco et al., 2019).

4

Discussion

In France, there is a kind of antithesis to the excessive enlargement of cooperatives. It uses fair trade practices that combine support for small farms and cooperatives with their adaptation to the imperatives of greening and promoting local food to other regions of France and Europe. The notion of “fair trade” (commerce équitable) is linked to the law in favor of small and medium enterprises (French Republic, 2005) and the law on the social and solidarity economy. Article 94 of the Social and Solidarity Economy Act of July 31, 2014 (French Republic, 2014) defines the term “fair trade,” which is to ensure economic and social progress for workers in disadvantaged, precarious conditions through trade transactions with the buyer that meet the following conditions of fair trade: • A commitment between the parties to a contract to limit the exposure of these workers to economic risks for a specified period, which may not be less than three years. • Payment by the purchaser of workers’ compensation, established based on production cost determinations and balanced negotiations between the parties to the contract.

Fig. 1 The number of organic farms in France, 2005–2020. Statista, Source Compiled by the authors based on (2021)

Agricultural Cooperatives in France: Toward Environmental Neutrality and Sustainability

• The provision by the buyer of a mandatory additional amount for collective projects in addition to the purchase price or integrated into the price, aimed at building capacity and empowering workers and their organizations. The formalization of the term “fair trade,” including in relation to agricultural cooperatives and individual farmers, came about as a result of initiatives by Biocoop, Ethiquable, Alter Eco, several other organizations, and the movement of small-scale French farmers. Fair trade companies must use a special label and make three commitments in terms of the following: • Commitment to honest and responsible business dealings; • Commitment to sustainable and socially responsible agriculture that focuses on local resources; • Changes in business practices in favor of transparency and consumer awareness of the product. This approach is characteristic of certification by the label National Charter of Local Fair Trade (Charte nationale du commerce équitable local) (Local Fair Trade Chart, (n.d.)). It was launched by the French Fair Trade Platform (PFCE), a network of the Initiative for Civic and Territorial Agriculture (Inpact National), and the French National Federation of Organic Agriculture (Fnab). The essence of the action is to support the products of small-scale French agriculture, including through guaranteed purchase prices, long-term contracts, and the implementation of unified marketing actions to increase the sustainability of small farms. The Agri-Éthique approach is also based on long-term multilateral agreements between farmers, storekeepers, processors, and distributors for at least three years to ensure economic security and fair remuneration for the former. In 2019, the brand had a turnover of 252 million euros, i.e., 58% of the turnover of products labeled “Fair Trade, origin France” (Poos, 2021). In 2020, 27 agricultural groups representing 4000 producers, 26 organic farming companies, Scop Ethiquable and Biocoop, a network of 637 stores, formed an association to develop and promote the Bio Equitable En France label. The reproduction network involves family farms certified as organic, which receive greater guarantees in terms of price and marketing due to the label on their products.

5

Conclusion

The study of the experience of French agricultural cooperatives is of practical interest to Russian researchers, primarily in terms of identifying opportunities to adapt the option of solidarity economy to the current challenges of

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transnationalization, openness, and digitalization of the global economy. We revealed the trend to reduce the number of French agricultural cooperatives while enlarging their scale and preserving their position as the basic actors of today’s agriculture in France. There is an increasing stratification into traditional and entrepreneurial cooperatives. The advantages of the first group—self-government and the preservation of the socio-economic sustainability of territories—are supported by “fair trade” policies and the benefits of producing exclusive products. Transnational scaling and diversification of inherently entrepreneurial cooperatives lead to increased cash flows and profits, expand opportunities for commercialization of innovation, but dissolve the cooperative signs of economic management. There is a problem of transparency and efficiency in the management of the group formed from heterogeneous forms of ownership elements with diverse ties within and outside the group. The increase in the number of organic farms and active involvement of agricultural cooperatives in organic farming, including medium and small-sized farms, was revealed. In France, especially against the backdrop of the COVID-19 problems, there is a growing demand for organic food. The production of such certified products is a good chance to strengthen the sustainability of agricultural cooperatives in France.

References Agricultural Cooperation in France. (n.d.). Milk and dairy products. Retrieved from https://www.lacooperationagricole.coop/fr/lait-etproduits-laitiers (Accessed September 2, 2021). Agricultural Cooperation in France. (2021, September 20). Organic farming could represent 18% of land in 2022. Retrieved from https://www.lacooperationagricole.coop/fr/dossiers/agriculturebiologique/lagriculture-bio-pourrait-representer-18-des-surfaces-en2022 (Accessed November 11, 2021). Agricultural Cooperatives Identity, Issues and Challenges. Debate. (2014). Rural economy: Agricultures. Food. Territories, 344, 75–84. https://doi.org/10.4000/economierurale.4525 (Accessed September 11, 2021). Bianco, S., Arfa, N., Ghali, M., Turpin, É., & Daniel, K. (2019). Les coopératives agricoles dans la transition écologique des agriculteurs. Les dispositifs de preuve de l’intérêt économique. Économie Rurale, 368, 75–93. https://doi.org/10.4000/economierurale.6768 Filippi, M., Frey, O., & Mauget, R. (2008). Agricultural cooperatives in the face of internationalization and the globalization of markets. International Social Economy Review, 310, 31–51. https://doi.org/ 10.7202/1021102ar French Republic. (2014). The French law on the social and solidarity economy (July 31, 2014 No. 2014–856). Retrieved from https:// www.legifrance.gouv.fr/loda/id/JORFTEXT000029313296/ (Accessed October 15, 2021). French Republic. (2005). Law in favor of small and medium-sized enterprises (August 2, 2005 No. 2005–882). Retrieved from https:// www.legifrance.gouv.fr/loda/id/JORFTEXT000000452052/ (Accessed October 15, 2021).

476 InVivo. (n.d.) En bref. Retrieved from https://www.invivo-group.com/ fr/en-bref (Accessed September 10, 2021). InVivo. (n.d.). Wine. Retrieved from https://www.invivo-group.com/en/ wine (Accessed September 2, 2021). Ivanova, S. V., & Agibalova, E. L. (2020). Strategies of foreign multinational companies in the Russian dairy market. In K.S. Soliman (Ed.), Education excellence and innovation management: A 2025 Vision to sustain economic development during global challenges (pp. 290–298). IBIMA. Ivanova, S. V., Kuzmina, T. I., & Latyshov, A. V. (2021). Globalization of the Russian agri-food sector and market strategies of foreign companies. In A. V. Bogoviz (Ed.), The challenge of sustainability in agricultural systems (pp. 55–62). Springer. https://doi.org/ 10.1007/978-3-030-72110-7_6. Local Fair Trade Chart. (n.d.). Fundamental principles of fair trade applied to citizen and sustainable agriculture in France. PFCE; InPACT; FNAB. Retrieved from https://www.commercequitable. org/wp-content/uploads/notre-collectif/charte-du-ce-local.pdf (Accessed October 15, 2021). Nazarenko, V. A. (2009). Theoretical foundations of agrarian policy in the West and in Russia. Institute of Europe RAS.

S. V. Ivanova Poos, S. (2021, May 3). France, pioneer of local fair trade in Europe. TDC. Retrieved from https://www.tdc-enabel.be/en/2021/05/10/ france-pioneer-of-local-fair-trade-in-europe/ (Accessed October 9, 2021). SODIAL. (2020). Rapport Integre 2019. Retrieved from https://sodiaal. coop/sites/default/files/2020-06/200519_SODIAAL_RAPPORT_ INTEGRE_.pdf (Accessed September 12, 2021). Statista. (2021). Number of farms dedicated to organic farming in France from 2005 to 2020. Retrieved from https://www.statista. com/statistics/961247/organic-farms-number-france/ (Accessed October 10, 2021). Tereos. (n.d.). History. Retrieved from https://tereos.com/fr/groupe/ histoire/ (Accessed October 2, 2021). Terrena. (n.d.). Activities. Retrieved from https://www.terrena.fr/en/ category/activities/ (Accessed September 20, 2021). Willer, H., Schlatter, B., Travnicek, J., Kemper, L., & Lernoud, J. (Eds.). (2020). The world of organic agriculture: Statistics and emerging trends 2020. FiBL and IFOAM—Organics International. Retrieved from https://www.arc2020.eu/wp-content/uploads/2020/ 03/organic-world-2020.pdf (Accessed September 12, 2021).

A National Model of Cooperation as a Track of Sustainable Development of New Zealand Olga V. Kaurova , Alexander N. Maloletko , Lilia V. Matraeva , Ekaterina S. Vasiutina , and Sergey G. Erokhin

Abstract

1

The cooperative movement in the world is developing extremely differently, under the influence of some factors specific to a particular country, stable national models are formed, the analysis of the implementation practice of which is valuable from a practical point of view. In this regard, the article examines the activities of cooperatives in New Zealand to identify the features of their legislative regulation, key participants in the cooperative movement, existing types of cooperation, features and principles of activity. It is shown that at present, a unique national model of cooperation has been formed in New Zealand based on the existing institutional system, the ideology and principles of functioning of which can be considered as tracks for the implementation of sustainable development goals. Keywords

.

.

. .

Cooperatives National model of cooperation Sustainable development Development track Business model JEL Classification

D12

. . . D63

D71

D91

O. V. Kaurova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. N. Maloletko (&) Research Group ‘Omnibus’, Moscow, Russia e-mail: [email protected] S. G. Erokhin Russian State Social University, Moscow, Russia e-mail: [email protected] L. V. Matraeva . E. S. Vasiutina MIREA-Russian Technological University, Moscow, Russia e-mail: [email protected] E. S. Vasiutina e-mail: [email protected]

Introduction

At the moment, cooperation in some countries has become an important and necessary component of sustainable development. Traditionally, the cooperative movement has not only become widespread around the world but is also an important source of balancing the interests of the main stakeholders of business processes, spheres and goals of long-term development of countries. According to ICA, more than 12% of humanity are members of cooperatives, involved in various segments of the national economic system. At the same time, the number of cooperatives is constantly growing and as of 2020 exceeds 3 million. The 300 largest cooperatives in the world and their partners report a total turnover of 2,146 billion US dollars (Exploring the Cooperative Economy, 2020). If we take as a guideline the goals set by the UN within the framework of the formulation of the concept of sustainable development (Official site of the UN, 2021), then in some countries cooperatives have come to be regarded as the core of those transformational changes that form the basis of the sustainable development model, contributing to long-term economic growth and stable, high-quality employment, providing jobs and ensuring income growth. There are several basic points inherent like the cooperative model, within which cooperatives implement the basic imperatives of sustainable development. Firstly, cooperatives are the property of their members, serve their interests and needs, therefore, it is this form of activity that removes internal contradictions, making it possible to effectively solve the tasks of balancing the labour market, investments in human capital and the growth of living standards (Matraeva et al., 2018). Secondly, cooperatives demonstrate high survival and resilience in times of crisis, as their activities are based on self-help and mutual assistance. This track was especially relevant during the pandemic, demonstrating the unique potential for restoring the incomes and well-being of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_94

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cooperative members in those countries where the national cooperative system has transformed into a kind of ecosystem. An example of such a model is the national model of cooperation of New Zealand and the principles that are implemented in it to achieve a new quality and standard of living are unique in their history of formation and directions of transformation. In 2021, there are 331 member-owned enterprises in the country (cooperatives, mutual societies, friendly societies and credit unions), which employ more than 50,000 employees and have more than 1.5 million members—30% of the country's population. The cooperative sector represents 18% of GDP (The New Zealand Cooperative Economy, 2021). The business model is successfully applied in many sectors of the economy and underlies traditional values and attitudes, i.e. it affects the institutional level of business organization and conduct: the provision of goods and services. Therefore, it can not only be attributed to the category of highly differentiated models of the cooperative organization but it can also be argued that cooperatives have long been an integral element of the sustainable development of New Zealand. According to current estimates, the national model of cooperation created an excellent supporting mechanism during the pandemic, when most sectors of the national economy around the world experienced difficulties, stagnated and had to optimize costs by laying off workers, in New Zealand the situation was exactly the opposite. Thus, in the agri-food sector, the revenue of cooperatives has increased by about 10% since 2015, demonstrating a significant increase in income and assets, which indicates resistance and a decisive reaction to the economic consequences of COVID-19. Companies in the insurance, banking and financial sectors have also shown good results: since 2015, their revenue has grown by more than 40% (The New Zealand Cooperative Economy, 2021). A wide range of sectors is not the only argument in favour of the scaling and versatility of the model. Statistics show that cooperatives are the most stable enterprises in New Zealand, i.e. the organizational and legal form is most adapted to the national characteristics, traditions and mentality of the indigenous population (Fomicheva et al., 2017; Yudina et al., 2018). Another feature of the national model of cooperation is its intergenerational reach (Altman, 2017). Existing cooperatives are focused on different generations, and realize the goals that are close to this particular age group. All this leads, on the one hand, to ensuring profit and has a positive impact on their business on society and the environment, therefore it continues to be used in the life of New Zealanders.

O. V. Kaurova et al.

2

Materials and Method

The analysis of the model was carried out by the method of historical analogy when the formation of modern contours of the cooperative system in New Zealand occurred as a result of the evolution of public institutions. The study of the legal contour of regulation of this sphere showed that the legislative framework (formal institutions) consolidated the formed institutional contour, and was rather an addition to the existing informal institutions. Therefore, the institutional approach was laid as a methodological basis for analyzing the features of the national model of cooperation in New Zealand. The extensive use of statistical techniques and comparative analysis allowed us to identify the tracks of sustainable development of the national economic system of the country.

3

Results

An analysis of the reasons for the effective policies and the popularity of cooperatives in New Zealand showed that the reasons should be sought deep in the history of this country, that the source of such trends is in the specifics of the institutional structure of the national economy, which has been formed for centuries. So, currently about 72% of cooperatives in New Zealand work in the agri-food sector, which was formed based on special land ownership relations in the country (Boyd et al., 2000). Lots of lands belong to a lot of small private owners, there is not a single dominant whose land size would allow for calm commercial expansion. In conditions of strong fragmentation, people were forced to cooperate. This fragmentation arose because of the Maori tribes (Reddy & Locke, 2013). Historically, these tribes owned all the land on the islands before the arrival of the colonizers. Maori preserve their culture, customs and own many plots of land. As a nation of the traditional way of life, the spirit of capitalism and possessiveness is alien to them. This position could later influence the perception of the colonialists, who had to live side by side with the Maori. In addition, the lands of New Zealand remained fragmented for a long time due to chaotic agreements with the chiefs and numerous military repartitions (Report Prepared for the New Zealand Ministry of Agriculture and Forestry, 2021). Maori still have their own powerful cooperatives and prefer this form of organization. In the future, the formed national model of cooperation began to be guided by an ideology called “People-ProfitPlanet” (PPP), and, in fact, each word of which is an independent track of sustainable development, aimed at implementing the goals laid down in it (Table 1).

A National Model of Cooperation as a Track of Sustainable Development of New Zealand Table 1 Ratio of sustainable development goals and tracks implemented by the national cooperation model of New Zealand

479

Sustainable development goals

People

Profit

End poverty in all its forms everywhere

+

+

End hunger, achieve food security and improve nutrition and promote sustainable agriculture

Planet

+

Ensure healthy lives and promote well-being for all at all ages

+

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

+

Achieve gender equality and empower all women and girls

+

Ensure availability and sustainable management of water and sanitation for all

+

+

Ensure access to affordable, reliable, sustainable and modern energy for all

+

+

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

+

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

+ +

Reduce inequality within and among countries

+

+

Make cities and human settlements inclusive, safe, resilient and sustainable

+

+

+

Ensure sustainable consumption and production patterns

+

+

+

Take urgent action to combat climate change and its impacts

+

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

+

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation and halt biodiversity loss

+

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

+

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

+

Source Compiled by authors

3.1 Track “Profit” As can be seen from Table 2, over the past five years, the incomes of the top 30 cooperatives in New Zealand have increased by 0.7%, showing a good margin of safety during the pandemic. Cooperatives not only survived the upheavals but also turned a profit after only a year. While firms around the world declare bankruptcy, New Zealand cooperatives continue to create jobs and recruit even more members. The principle of collective support, common cash registers and subsidies introduced by the cooperatives themselves for their own members allowed this sector of the economy to survive

Table 2 Top 30 cooperatives main indicators dynamics

Revenue (NZD millions)

the external global shock relatively easily (Leaders’ Forum, 2021). Figure 1 shows that the bulk of income is generated in the agro-industrial sector—about 72%. The second most profitable is the retail sector (about 22%). While the distribution of assets looks somewhat different (Fig. 2). Thus, the share of the agro-industrial sector accounts for only 58.2%, and the second place in terms of assets is occupied by the insurance, finance and banking sector—24.6%. The analysis shows that the majority of members—87.6% —account for insurance and banking services. This is

2015

2020

$41373

$41652

Change (%) 0.7

Total Assets (NZD millions)

$33250

$39522

18.9

Employees

47319

41159

13.0

Members

1,217,107

1,517,570

24.7

Source Compiled by the authors based on Cooperative Business New Zealand (The New Zealand Cooperative Economy, 2021)

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O. V. Kaurova et al. Insurance, Banking & Finance; 4.9%

Other Services; 1.2% Wholesale&Retail; 21.8%

Agri-Food; 72.1%

Fig. 1 Income of the Top 30 cooperatives for 2020 by category. Source Compiled by the authors based on Cooperative Business New Zealand The New Zealand Cooperative Economy (2021)

Other Services; 1.0% Insurance, Banking & Finance; 24.6%

Wholesale&Ret ail; 16.3%

Agri-Food; 58.2%

Fig. 2 Assets of the Top 30 cooperatives for 2020. Source Compiled by the authors based on Cooperative Business New Zealand The New Zealand Cooperative Economy (2021)

logical, because banking and insurance services are required by the vast majority of citizens, and the choice falls on cooperatives because of the human-oriented policy of enterprises. The second and third places with a slight gap are shared by the retail and agriculture sectors—5.1% and 5.8%, respectively; other Services—1.5% (The New Zealand Cooperative Economy, 2021). These are the areas of greatest employment among cooperatives.

3.2 Track “People” The desire of cooperatives to be not only commercial enterprises but also to benefit society is reflected in the Seven Principles of the national model of cooperation (Nilsson & Ohlsson, 2007): 1. Voluntary and open membership; 2. Democratic control of members; 3. Economic participation of members;

4. 5. 6. 7.

Autonomy and independence; Education, training and information; Cooperation between cooperatives; Caring for the community.

Cooperatives implement many social projects, besides, enterprises receive prestigious awards for the quality of service and the creation of comfortable workplaces. So the Fonterra company implements the KickStart Breakfast program, which has been operating since 2009. The program distributes free healthy breakfasts to schools throughout New Zealand. Since the beginning of the program, more than 35 million breakfasts have been distributed. This project is being implemented jointly with the Government of New Zealand (Uniting New Zealand’s Coop’s, 2021). FMG Insurance company was named the best large Workplace in New Zealand in 2015 based on IBM Best. It supports not only high employment in the cooperative segment but also the quality of jobs. Thus, according to the survey results, the FMG cooperative has been a finalist every year since 2011, demonstrating consistently high workplace comfort and employee involvement in business processes. Fonterra won the Workplace Health and Safety Award in 2016 Workplace NZ for innovative initiatives in the field of employee health and wellness. The Farmer's Insurance Company has introduced its scholarship programs for graduate students of all universities of the country (Uniting New Zealand’s Coop’s, 2021). The top social activity of the cooperative movement is Cooperative Business New Zealand. The association promotes the cooperative movement, issues educational grants and loans, provides legal advice, subsidizes urgent treatment (Matraeva et al., 2020). Members of the association provide their services at discounted prices to all members. Financial, insurance, construction, legal, medical—all types of services are available.

A National Model of Cooperation as a Track of Sustainable Development of New Zealand

The Association cooperates with the government and distributes information about the cooperative device for its popularization (Uniting New Zealand’s Ccoop’s, 2021).

3.3 Track “Planet” Farmlands Cooperative has been implementing a program for eco-friendly waste disposal and garbage collection for several years in a row. Fonterra’s 2017 Sustainability Report was shortlisted for the 2019 CR Reporting Award in the “Best Report” category and the “Openness and Honesty” category. It was the only New Zealand organization at the World Annual Awards.“—ICA-AP (Uniting New Zealand’s Coop’s, 2021). In addition to implementing numerous garbage collection and sorting programs, production cooperatives make a significant contribution to reducing the New Zealand carbon footprint. In New Zealand, the lowest level of carbon production is in the production of dairy products on the farm, while this production there is 90% of the total. 9% is produced during processing in factories and 1% during distribution (Leaders’ Forum, 2021). Most of the country's cooperatives openly and with pleasure show the results of their activities to support the environment, as evidenced by numerous projects and programs (Leaders’ Forum, 2021).

4

Conclusion

Thus, based on the analysis carried out, it can be argued that the basic principles of the New Zealand cooperation model can be considered as the built-in tracks for the implementation of the sustainable development model. The highlighted principles of building a system of cooperation, on the one hand, are currently built-in stabilizers of the economic system, effectively resisting external shocks of various etymologies, and the system itself is based on mature, historically verified institutions, which contributes to its further integration into the national economic system and efficiency growth. On the other hand, the current ideology of the 3P national model of cooperation, “People-Profit-Planet”, can be considered as fundamental track for the implementation of the concept of sustainable development, overlapping the targets that make up the essence of this phenomenon.

481

References Altman, M. (2017). The importance of co-operatives to the New Zealand economy: Constructing a co-operative economy. International Journal of Social Economics, 44(12), 2086–2096. https://doi. org/10.1108/IJSE-06-2016-0174 Boyd, H., Evans, L., & Quigley, N. (2000). The efficiency of contractual arrangements in private agricultural markets. New Zealand Institute for the Study of competition and regulation. Victoria University of Wellington Law Review, 31(4), 1–31. https:// doi.org/10.26686/vuwlr.v31i4.5937. Exploring the Cooperative Economy. (2020). Report 2020. The world cooperative monitor is an international cooperative alliance imitative with the scientific support of euricse. https://monitor. coop/sites/default/files/publication-files/wcm2020-1727093359.pdf (Accessed: September 14, 2021). Fomicheva, T., Sulyagina, J., Kataeva, V., Kryukova, E., & Dusenko, S. (2017) Transformation of values in global society: managerial aspect. Espacios, 38(33), 31. Leaders’ Forum. (2021). Cooperative Business New Zealand, 2021. https://www.productivity.govt.nz/assets/Documents/LeadersForum-May-2021-for-Release.pdf (Accessed: September 14, 2021). Matraeva, L. V., Vasyutina, E. S., Kaurova, O. V., & Erokhin, S. G. (2018). A dynamic model in the labor market: Reasons of imbalances at the transition stage of the economy. European Research Studies Journal, 21(3), 206–217. https://doi.org/10. 35808/ersj/1054. Matraeva, L. V. Vasyutina, E. S., & Belyak, A. V. (2020). World experience of formation and development of microfinance institutions to stimulate small business. In 35th International business information management association conference (IBIMA): Proceedings of the 35th international business information management association conference (IBIMA), 01–02 April 2020 (pp. 5735– 5743). International Business Information Management Association (IBIMA). Nilsson, J., & Ohlsson, C. (2007). The New Zealand Dairy Cooperatives’ Adaptation to Changing Market Conditions. Journal of Raul Cooperation, 35(1), 43–70. Official site of the UN. (2021). Sustainable development goals. https:// www.un.org/sustainabledevelopment/ru/sustainable-developmentgoals/ (Accessed: September 14, 2021). Reddy, K., & Locke, S. (2013). History and development of cooperative business in New Zealand: A case study of Allied Farmers Limited. International Journal of Cooperatives Studies, 2 (1), 1–9. Report Prepared for the New Zealand Ministry of Agriculture and Forestry. (2021). New Zealand institute for the study of competition and regulation INC, 2021. https://core.ac.uk/download/pdf/ 41339127.pdf. (Accessed: September 14, 2021). The New Zealand Cooperative Economy. (2021). Cooperative business New Zealand, 2021. https://nz.coop/media-release-nz-cooperativeeconomy-report (Accessed: September 14, 2021). Uniting New Zealand’s Coop’s. (2021). Cooperative business New Zealand. https://nz.coop/Attachment?Action=Download&Attachment_id=5 (Accessed: September 14, 2021). Yudina, T. N., Fomicheva, T. V., Dolgorukova, I. V., Kataeva, V. I., & Kryukova, E. M. (2018). The value of happiness: Well-being on a global scale. International Journal of Engineering and Technology (UAE), 7(3.14 Special Issue), 14, 455–460.

Development of the Cooperative Sector in Canada: Features of the National Model Olga V. Kaurova , Alexander N. Maloletko , Lilia V. Matraeva , and Ekaterina S. Vasiutina

Abstract

1

The features and prerequisites of the development of cooperation in Canada as one of the success stories of the cooperative movement development as the most steadily developing in the world are considered. The focus of the study was shifted to the description of the specific task that Canada faced in the process of developing the cooperative movement, the reasons for choosing this solution and the results achieved. An overview of the current system and classification of cooperatives in Canada, features of regulation of the cooperative system at the national and regional level are presented. This paper identified the modern business model of Canadian cooperatives key elements and the features of the economic model (profit management model). Keywords

.

.

.

Canada Cooperatives National model of cooperation Sustainable development Business model JEL Classification

D12

. . . D63

D71

D91

O. V. Kaurova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. N. Maloletko (&) Research Group ‘Omnibus’, Moscow, Russia e-mail: [email protected]

.

Introduction

Immigration processes served as Canadian prerequisites in 1815–1850, a large number of residents of Great Britain and other European countries immigrated to Canada in order to create cooperative enterprises, following the example of the British cooperative movement, which began at the turn of the eighteenth and nineteenth centuries. At the present stage, Canada has one of the most developed laws on cooperation (Legal Ccooperative Framework Analysis, 2020). At the same time, its experience is relevant mainly for countries with a federal form of government. The CCA establishes the main parameters of the activities and regulations of cooperatives (Legal Сooperative Framework Analysis, 2020), the legislation of Provinces and Territories also regulates the activities of cooperatives operating in their jurisdiction. In addition, the activities of commercial cooperatives are regulated by general-purpose legislation applicable to commercial organizations. None of the management levels has exclusive jurisdiction over cooperatives. The cooperative sector in Canada is one of the most sustainably developing in the world. In Table 1 split by industry is presented: a significant part of cooperatives falls on the real estate, rental and leasing sector—33.60%. According to the National Statistical Service, nonfinancial cooperative sector alone has 104,969 employees. Figure 1 shows that the vast majority work in medium-sized cooperatives from 100 to 499 people (84%) (Fig. 1). At the same time, half of the cooperatives in Canada are not employers. In this context, a more in-depth study of the Canadian experience is interesting.

L. V. Matraeva . E. S. Vasiutina MIREA - Russian Technological University, Moscow, Russia e-mail: [email protected] E. S. Vasiutina e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_95

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Table 1 The cooperative sector in Canada by Industry in 2019

Industry sector

Count of co-operatives, 2019 (%)

Real estate and rental and leasing

33.60

Wholesale and retail trade

14.20 8.80

Health care and social assistance Other

43.30

Source Compiled by the authors based on Statistics Canada (2021) Fig. 1 Employment size groups in Canada Source Compiled by the authors based on Statistics Canada (2021)

No employees, 2%

1- 99 employees, 1%

500 employees or more, 13%

100 -499 employees, 84%

2

Materials and Method

Historical analysis used in this paper allowed us to identify the reasons for the formation of the peculiarities of cooperation in Canada. Period covers the range from the 1820s to the present with a more detailed consideration of the period of the 1950s-1970s, in which the unique characteristics of the Canadian model, different from the American and European, based on which it was originally formed, were formalized.

3

Results

The analysis of the regulatory framework revealed the modern parts of Canadian cooperatives established at the federal level: • Business goal: not to make a profit by the founders, but to provide products and/or services to its members at the lowest possible prices; • Cooperatives are not infrequently formed based on communities; • Features of the economic model (profit management model) of the cooperative: (1) the profit received as a result of business transactions is either reinvested in the organization or redistributed among members in the form

•

• •

•

•

of reimbursement of their costs; (2) the refund for costs is calculated in proportion to the use of the services provided by the cooperative by the member, and not the amount they invested in the cooperative; (3) special treatment for cooperatives operating on a non-profit basis; It is permissible to decide on the non-distribution of profits (in special cases: acquisition of the status of a non-profit organization); a cooperative operating on a non-profit basis must indicate in its founding agreement that it will not distribute profits among its members; a feature of the economic model (special regime): the profit is sent to the general reserve to achieve the stated goal and to obtain income tax-exempt status. To create a cooperative, at least 3–6 people are required who meet the requirements: at least 18 years old, in their right mind, not bankrupt; A cooperative is a simultaneous association of its members and an enterprise that belongs to the participants initially on the principle of equality “one member—one vote”; in the future, weighted voting systems can be used; Membership in the cooperative is regulated by its internal regulatory documents; membership in the cooperative forms the rights to the products and/or services of the cooperative; There is a single source of information about the cooperative business model, including the principles of formation and development of cooperatives: “Information Guide on Cooperatives in Canada” (Innovation, Science

Development of the Cooperative Sector in Canada: Features of the National Model

and Economic Development Canada, 2021); document: exhaustive description of cooperatives as a form of business and their differences from alternative forms, explains the values and principles of the cooperative, the structure of the cooperative, provides a plan of actions necessary to create a cooperative (algorithm), the basis for developing a brief overview of current legislation on cooperatives in Canada, ten provinces and three territories; • Separately identified cooperatives focused on social needs, such as housing and medical, as well as charitable cooperatives; • Participation in international development programs from the perspective of investment support and development of basic development approaches; • Development of stable ties with the national education system. The main regulation of the national cooperative system is carried out through two bodies—the Canadian Association of Cooperatives (CCA). Their functional purpose (Matraeva et al. 2019): collecting and analyzing information about the policy of cooperatives, about the difficulties they face, in particular about the difficulties in “forming a strong national voice”. Four key tasks are solved by higher organizations and federal structures of cooperatives: (1) organization of cooperative management processes and their subsequent effectiveness, (2) control over the relationship between cooperatives and regulatory authorities, (3) explanation of these relationships to other persons (for example, financial institutions, governments, etc.), (4) search and elimination of violations of the above rules. Additional regulation of the national system of cooperation is carried out by the following bodies: • Corporations: regulates federal corporations activities in Canada, including non-financial cooperatives; analyzes applications for compliance with the Law on Cooperatives of Canada and issues certificates of registration; • Agency “Cooperatives and Mutual Enterprises of Canada” (CMC): a national association representing cooperative and joint ventures, industry federations and provincial associations; its activities are aimed at comprehensive assistance to cooperatives and partnerships to form, develop and sustain (information and analytical support, consulting, legal, etc.). • Most provinces and territories have cooperative associations and/or councils that provide information to each province. The Canadian movement has some international relations, the beginning of the development of which is the accession

485

of the Cooperative Union of Canada to the ICA in 1912. There is also a link between Canadian cooperative movements and universities. There was also an important connection with the University of Laval in Quebec. The classification of cooperatives in Canada is represented by various types, among which one can distinguish: agricultural, consumer, financial, housing, workers, fishing, medical and the Arctic (MacPherson, 2020).

3.1 Agricultural Cooperatives The history of their development covers some organizations, both economic, agricultural and political (McCagg, 2005). However, the division did not lead to the disappearance of the cooperative movement in rural areas. In recent years, several new agricultural cooperatives have also been created: • Specializing in organic farming; • Coordinating the sale of products to consumers, • Focused on meeting the social needs of rural areas.

3.2 Financial Cooperatives Financial cooperatives of Canada are initially based on the movement of American credit unions and their development model. The peculiarity of their development: the organization is on a regional basis, mainly because credit unions were established in accordance with the legislation of the regions and were regulated by regional authorities. In the future, the development of caisses populaires and credit unions have undergone significant changes.

3.3 Workers’ Cooperatives “Solidarity Cooperatives”, cooperatives that include representation in their leadership of all those who are directly involved in the cooperative, including community groups. This model of cooperation goes back to management practices that were developed in the nineteenth century.

3.4 Medical Cooperatives The introduction of universal health care in Canada in the 1960s led to a particularly violent doctors’ strike. One of the responses to this was the creation of cooperative medical clinics. Cooperatives hired doctors for wages and made extensive use of other medical professionals to minimize

486

O. V. Kaurova et al.

costs and encourage disease prevention. In Quebec, where other cooperatives and the Government support cooperative approaches to healthcare, there are more than seventy cooperatives engaged in providing medical care (about 60% of the total number of medical cooperatives in Canada).

• Regulatory legal regulation: the focus on regional legislation; • The presence of separate special governing bodies at the regional level (associations); • Pronounced regional specifics of the development of certain types of cooperation in Canada; • Social orientation of the activities of cooperatives.

3.5 Arctic Cooperatives Over the past two decades, interest in the development of various types of cooperatives in Canada has been steadily growing and deepening. The most common area of interest is cooperatives in the restaurant sector, in the field of selling locally produced food, preferably organic (Kryukova & Khetagurova, 2020). There is also a significant growth of transport cooperatives (e.g. car-sharing cooperatives, bicycle cooperatives) and energy cooperatives based on wind energy or biodiesel production throughout the country.

4

Conclusion

The Canadian national model of the corporate sector represents one of the best practices for the development of cooperation. Immigration processes were a prerequisite for its development. In this regard, the Canadian model has striking features of the American and European models of cooperation development, especially in the context of individual types of cooperation. At the same time, the considered experience is relevant primarily for countries with a federal form of government, since it was initially formed from the experience of the development of individual communities and regional provinces. This formed the features of the business model of cooperation, expressed, among other things, in:

References Innovation, Science and Economic Development Canada. http://www. ic.gc.ca/eic/site/icgc.nsf/eng/home (Accessed: 18.09 September 18, 2021). Kryukova, E. M., & Khetagurova, V. S. (2020). Modern methods and approaches to the management of the hotel services promotion. Revista Turismo Estudos and Práticas, 3, 2. Legal Cooperative Framework Analysis. (2020). National Report of Canada. https://coops4dev.coop/sites/default/files/2021-03/Legal% 20Framework%20. Analysis%20-%20Canada.pdf (Accessed: September 18, 2021). MacPherson, I. (2020). The history of the Canadian Co-operative movement: a summary, a little historiography, and some issues, University of Victoria. Canada. http://socialeconomyhub.ca/sites/ socialeconomyhub.ca/files/Cdian%20Co-op%20History.doc (Accessed: September 18, 2021). Matraeva, L., Vasiutina, E., & Korolkova, N. (2019). The model of assessment of quality and efficiency of managerial decisions by public management at various stages of state programs lifecycle. Quality Access Success, 20(170), 100–105. McCagg, L. (2005). Profile of Canadian agricultural Co-operatives. Rajendra Gurung. https://publications.gc.ca/Collection/A80-924-42002E.pdf (Accessed: September 18, 2021). Statistics Canada. (2021). Canadian Co-operatives, selected financial data by categorical variables. https://www150.statcan.gc.ca/t1/tbl1/ en/tv.action?pid=3310021601 (Accessed: September 18, 2021).

Infrastructural Factors of the Digital Economy Development and Their Management in the Interests of Accelerating Its Growth Victoria V. Stofarandova , Madina I. Mallaeva , Zaur U. Medzhidov , Gadjimurad Kh. Magomedov , and Magomed K. Abidov

Abstract

JEL Classification

This paper’s goal is the classification and characteristics of the management of the infrastructural factors that affect the formation and development of the digital economy. The methods used in this work include statistical analysis, comparative analysis and the method of systematisation. The novel aspect of this research is due to the expansion of the theoretical and practical provisions in the sphere of the management of the infrastructural development factors, as the basis of the digital economy and national economy formation. The formulated provisions and specific features of managing the factors development of infrastructure of the selected EU member states show the necessity for a comprehensive analysis of their emergence and transformation on a constant basis. The characteristics of these factors are necessary for selecting the optimal digital solutions that can raise the sector's productiveness. The presented directions of managing the studied factors are concentrated within the optimisation of the digital readiness of companies’ infrastructures for the manufacture of products (services) with high value added, which would be competitive in the market.

O11

Keywords

.

.

.

. .

Infrastructure Digital economy Digitalisation Economic development Energy efficiency Digital solutions Integration

.

V. V. Stofarandova (&) . M. I. Mallaeva Dagestan State University (DSU), Makhachkala, Russia e-mail: [email protected] Z. U. Medzhidov . M. K. Abidov Dagestan State University of National Economy (DSUNE), Makhachkala, Russia

1

. . . . . . O12

O14

O31

O32

O33

O38

Introduction

The digital economy is an independent economic sphere and a component of separate types of infrastructures. In the age of large-scale digitalisation, the digital economy began to be studied as a separate and as integrated sector, a flagship of the innovative and competitive development of countries. The modern stage of development of the digital economy facilitates the quick development of various infrastructures, which ensures the growth of GDP, competitiveness and value added of manufactured products (services). In the course of the change in market, socio-economic, financial, environmental, logistics, production and energy conditions of the functioning of companies and infrastructures, there appears demand for new digital solutions. New digital solutions will allow ensuring economic and competitive growth and the transition of digitalisation to new levels. Given the above, such interdependence is a stimulus for the national economy and infrastructural sectors development. It is necessary to study these infrastructural factors to find the tendencies of the formation of the digital economy under their influence. The goal of this paper is to classify and characterise the management of infrastructural development factors, which affect the digitalisation and growth of the economy. The tasks sought in this context include identifying countries that are leaders in digital economy; determining the characteristics of management and influence of the factors of certain sectors’ formation on the digital economy and its economic growth.

G. Kh. Magomedov St. Petersburg State University of Economics, Saint Petersburg, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_96

487

488

2

V. V. Stofarandova et al.

Materials and Method

There are studies in the sphere of digital solutions implementation in sectors of the economy and the dependence of infrastructural development on the level of ICT implementation. The authors who studied this issue include (Borowiecki et al., 2021; Raheem, 2020; Randall & Berlina, 2019; Scupola & Mergel, 2022; Sipari, 2022) etc. The materials of these works have important scientific and practical value but do not demonstrate a comprehensive picture of infrastructural factors. Thus is it necessary to search for new information and technological products (services) that would allow solving important production, logistical and socio-economic tasks of national development. In this research, statistical analysis is used to determine the data on the level of the digital economy's development in certain European countries. Comparative analysis is used to compare the level of digitalisation development of the studied countries’ economies, formed at the current stage. The method of systematisation is utilised to classify the main factors of the formation of the economy's sectors, which management allows forming new digital solutions and ensuring economic growth or retaining a certain level of development. In this work, the research focus is made on the experience of the management of digitalisation of the economy’s sectors and management of the infrastructural factors of countries with a high level of digitalisation in the period of 2021— mid-2022. The key performance indicators are the following: • Digital Economy and Society Index (DESI), published annually. This indicator is evaluated using the Rank assigned to an EU member state; • GDP of the studied countries in the given period.

3

Results

Let us consider the state of digitalisation (determining the leaders) and identify the factors of infrastructure influencing this process, as well as characterise the specifics of their management under modern conditions. Table 1 presents the indicator of DESI and GDP for the EU member states that demonstrate a high level of implementation of ICT in the assessed period. As seen from Table 1, the main leaders in the sphere of digitalisation are the following countries: 1. Finland (1st position in the period of 01.2022—08.2022 and 2nd position in 2021 by the level of the digital

economy development). Despite a certain decrease in economic growth, Finland retained a stable position in the world market. The main factors of infrastructural development that influences digitalisation in Finland were as follows: (1) Needs to improve the implementation of ICT in the sphere of waste management in the food sector of Lapland (northern region) to raise effectiveness and sustainability. Until 2012, this sector did not support the implementation of the UN SDGs in the sphere of responsible production (high volume of waste); since 2020, there has been implemented a range of ICT that facilitated the reduction of losses from production waste and a decrease in the burden on the sphere of waste processing. The main tools of ICT that are used in the development of Lapland’s food industry are as follows (Raheem, 2020): Big Data, which are used for dissemination of data on food waste in Lapland and other regions, for the search of the data on required products and their online purchase and delivery; biomedical technologies were used together with Big Data to determine the culture of nutrition of the region's population, the state of diseases and food preferences, which allows raising the level of production and sales of food products that are in demand among the local population; expansion of 5G coverage on 80% of Lapland’s territory allows ensuring the growth of ski tourism in the region and raising the level of residential construction (Commsupdate.com, 2022); (2) Growth of digital intensity (investments in the development of software and innovative technologies) given the need to save energy resources. In 2022, the highest development in the sphere of efficient use of energy based on the newest ICT was observed in the transport infrastructures, food industry and energy sphere (Sipari, 2022). A high level of digitalisation is more peculiar for large companies; the small business does not demonstrate prominent results in this direction, though there is active work by local authorities to attract small production and services companies in the projects of ICT development. 2. Denmark (2nd position in 01.2022—08.2022, 1st position in 2021 in the digitalisation ranking). Though the Danish economy demonstrated a decrease because of the global economic and energy crisis and the recession of the national economy (14%), Denmark's main sectors have stable development. The spheres with the highest level of implementing the newest ICT are the public sector, financial infrastructure, main production infrastructure and trade sector Trade.gov (2022). Analysis of

Infrastructural Factors of the Digital Economy Development and Their Management …

489

Table 1 Dynamics of DESI and GDP of the selected EU member states in the period of 2021—mid 2022 Country

Value of DESI, Rank

Value of GDP, Rank

2021

7 months of 2022

Dynamics, (+ decrease, − increase)

2021

7 months of 2022

Dynamics, (+ decrease, − increase)

Finland

2

1

−1

44

46

+2

Denmark

1

2

+2

34

38

+4

Netherlands

4

3

−1

17

18

+1

Sweden

3

4

+1

22

24

+2

Ireland

5

5

0

25

28

+3

Malta

6

6

0

126

124

−2

Spain

9

7

−2

14

14

0

Luxembourg

8

8

0

67

66

−1

Estonia

7

9

+2

99

97

−2

Austria

10

10

0

29

29

0

Slovenia

13

11

−2

84

80

−4

France

16

12

−4

7

7

0

Germany

11

13

+2

4

4

0

Lithuania

14

14

0

79

78

−1

Portugal

17

15

−2

48

49

+1

Belgium

12

16

+4

23

25

+2

Latvia

18

17

−1

96

96

0

Italy

21

18

−3

8

8

0

Czech Republic

19

19

0

46

47

+1

Cyprus

22

20

−2

104

105

+1

Croatia

20

21

+1

77

77

0

Hungary

24

22

+2

55

56

+1

Slovakia

23

23

0

59

61

+2

Poland

25

24

−1

21

23

+2

Greece

26

25

−1

51

53

+2

Bulgaria

27

26

−1

71

69

−2

Romania

28

27

−1

45

45

0

Source Prepared by the authors using the materials of Ceoworld.biz (2022), Databankfiles.worldbank (2021), Digital-strategy.ec.europa.eu (2021), Digital-strategy.ec.europa.eu (2022)

the materials of (Randall & Berlina, 2019; Scupola & Mergel, 2022) showed that the key factors of the development of infrastructure that influence digitalisation in Denmark are as follows: the necessity for universalisation of communications (for all sectors of the economy); complex business analytics that requires the use of new solutions in the sphere of Big Data and AI; need to implement outsource services in the sphere of various services (personnel training, administrative work, housing and utility services, maintenance and logistics in different sectors), which require high precision and professionalism; the emergence of the problem of cyber security management at the level of public sector and large companies.

3. Netherlands (01.2022—08.2022—3rd position, 2021— 4th position by the level of digital economy development in the world). The level of implementation of ICT in the Netherlands predetermined a high level of economic development (18th position in the world by GDP). The main factor of ICT implementation in the country was an acute necessity to support employment and decent work in small and medium enterprise and micro businesses, the revenues from which activities account for more than 50% of the country's GDP. Public authorities provide free consultations and organise projects of training and advanced training of personnel for the above subjects of entrepreneurship. The main sectors of the activities of such companies in the Netherlands are business

490

V. V. Stofarandova et al.

consulting, healthcare and R&D. The tools for managing the issues of infrastructure digitalisation in the Netherlands are AI, which is used for online communications and provision of support for subjects of entrepreneurship in the mastering of digital technologies; quantum computing for the creation of modern software solutions in various spheres (Borowiecki et al., 2021). Government investments in the digitalisation of SMEs and micro businesses allow for their sustainable development, which, together with the results of large corporations, ensures high economic positions.

4

Discussion

The analysis of the infrastructural factors of digitalisation development demonstrated the top-priority directions of their management. These are the following: • Satisfaction of the need to implement ICT in the sphere of food waste management (example of the food sector of Lapland) leads to the possibility of using other ICT tools, namely the expansion of 5G coverage. This became a stimulus for the development of the construction sphere and tourism. It is possible to note a positive chain reaction of the development of the sectors and the territory, which appears due to the successful digitalisation of solutions in the sphere of the food sector; • Growing influence of the factors of production energy efficiency (functioning of the service sphere) became a precondition for implementing the projects of energy efficient equipment, technologies and gadgets. The existing test samples in the sphere of saving and rational use of electric energy and natural gas were quickly implemented in the existing equipment and technologies, which allows speaking of the targeted modification of scientific and technological solutions in the digital economy and the growth of its production and sales volumes. In its turn, this growth leads to an increase in productiveness and competitiveness of the economic spheres in which new digital solutions are adopted; • Challenges in the sphere of cyber security, which are connected with large-scale digitisation of data, influence the implementation of new systems of software protection; • Investments in ICT tools allow achieving positive results in the integration in the international market and markets of other regions, which influences the competitiveness and GDP; • Government participation in the resolution of problems of weak digitalisation of SMEs and micro business in countries where the share of such subjects is very

important in GDP allows supporting competitiveness and economic positions of a country in periods of crises and pandemics. A vivid example is the experience of the Netherlands.

5

Conclusions

In this paper, the characteristics and experience of managing the factors of infrastructural development as preconditions for the formation of the digital economy and increase in the economic growth level were analysed. These factors appear as a result of external and internal reasons and as a reaction to market conditions, which require new digital solutions to retain competitive positions and economic growth. Accordingly, implementation of ICT at the level of certain market players requires a reconsideration of digital strategies of development. Countries that focus on supporting the categories of companies without own financial potential for digitalisation (SMEs and micro businesses) strive toward using the optimal digital solutions, which allow implementing national goals and strategies of development. Government support for the digitalisation of economic sectors and certain categories of companies is especially important for countries with high threats of unemployment due to difficulties in the use of new digital solutions that allow raising value added of products and increasing the quality of human potential. New digital solutions in the sphere of production improvement have a large influence in countries with developed industries and high industrial potential. Countries without a developed industry, but with a good service sector, should focus on ICT in the context of digital applications and software.

References Borowiecki, M., Pareliussen, J., & Glocker, D. (2021). Chasing the frontier: Digitalisation for stronger productivity in the Netherlands. https://oecdecoscope.blog/2021/09/08/chasing-the-frontierdigitalisation-for-stronger-productivity-in-the-netherlands/. Accessed: Oct 19, 2022. Ceoworld.biz. (2022). Economy rankings: Largest countries by GDP, 2022. https://ceoworld.biz/2022/03/31/economy-rankings-largestcountries-by-gdp-2022/. Accessed: October 19, 2022. Commsupdate.com. (2022). Elisa extends 5G coverage in Lapland. https://www.commsupdate.com/articles/2022/08/22/elisa-extends5g-coverage-in-lapland/. Accessed: October 19, 2022. Databankfiles.worldbank. (2021). Gross domestic product 2021. https://databankfiles.worldbank.org/data/download/GDP.pdf. Accessed: October 19, 2022. Digital-strategy.ec.europa.eu. (2021). Digital economy and society index (DESI) 2021. https://digital-strategy.ec.europa.eu/en/library/

Infrastructural Factors of the Digital Economy Development and Their Management … digital-economy-and-society-index-desi-2021 Accessed: October 19, 2022. Digital-strategy.ec.europa.eu. (2022). Digital economy and society index (DESI) 2022. https://digital-strategy.ec.europa.eu/en/library/ digital-economy-and-society-index-desi-2022. Accessed: October 19, 2022. Raheem, D. (2020). Digitalisation in a local food system: Emphasis on Finnish Lapland. Open Agriculture, 5, 496–508. Randall, L., & Berlina, A. (2019). Governing the digital transition in Nordic Regions: The human element. Nordregio Report, 4, 78. Scupola, A., & Mergel, I. (2022). Co-production in digital transformation of public administration and public value creation: The case of

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Denmark. Government Information Quarterly, 39. https://kops.unikonstanz.de/bitstream/handle/123456789/56412/Scupola_2bhswjquzj8m86.pdf?sequence=1. Accessed: October 19, 2022. Sipari, A. (2022). Digibarometer 2022: Finland ranks second in international comparison of the use of digitalisation. https://www. lvm.fi/en/-/digibarometer-2022-finland-ranks-second-in-internationalcomparison-of-the-use-of-digitalisation-1779464. Accessed: October 19, 2022. Trade.gov. (2022). Digital services and technologies. https://www. trade.gov/country-commercial-guides/denmark-digital-services-andtechnologies. Accessed: October 19, 2022.

New Opportunities for Human Potential Development in the Digital Economy and Their Implementation in Developed and Developing Countries Elena A. Gorshkova , Oleg A. Antonyuk , and Andrey V. Minakov

and low value added of products, these countries are peculiar for the growth of the indicators of human development (example of the dynamics of India’s Score HDI). This is caused by a quick reaction of the business environment and government to the market. Originality/ value: The scientific novelty of this paper is consists in revealing the specifics of the influence of certain conditions (opportunities) of the digital economy’s formation on the level of human potential development in developed and developing countries.

Abstract

Purpose: The purpose of this paper is to assess the influence of certain conditions (opportunities) of the formation of the digital economy on the level of human potential development in developed and developing countries. Design/methodology/approach: The following methods are utilised: factor analysis, statistical method, and trend method. Findings: We assessed the new opportunities for human potential development under the conditions of the digital economy and their implementation in developed and developing countries. We discovered that the studied developed countries (Norway and Switzerland), at a high level of the elements of the digital economy (Broadband subscriptions and E-commerce), ensure significant opportunities for the population's human potential development. This is due to substantial investments in Broadband subscriptions, which are necessary for obtaining knowledge and education under the conditions of limited social interaction (the example of the pandemic in 2020). A high level of E-commerce influences employment in this sphere, which is connected to the high competitiveness of products. We discovered that developing countries (Turkey and India) do not demonstrate high values of the digital economy’s elements (Broadband subscriptions and E-commerce) due to the lack of focus on the national economy's modernization. With a certain competitive underrun of industry E. A. Gorshkova (&) Moscow Polytechnic University, Moscow, Russia e-mail: [email protected] O. A. Antonyuk Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] A. V. Minakov Moscow University of the Ministry of Internal Affairs of Russia Named After V.Ya. Kikot, Moscow, Russia e-mail: [email protected]

Keywords

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..

.

Digital economy Developed countries Developing countries Broadband subscriptions E-commerce Remote employment JEL Classification

L81

1

.

M50

.

N10

Introduction

The processes of digitalization influence the development of digital transformation of society and economy, which is connected to the transition from the industrial age to the age of knowledge and creativity in all spheres of life. The digital economy stimulates the formation of the modern directions of human potential development and the formation of the spheres of employment in developing and developed countries. The transformation of human potential development takes place as a result of the large-scale implementation of digital technologies and innovations in the work processes. Online employment becomes more popular, which leads to the development of the digital economy and influences the labour market at the national and international levels. This direction of employment opens wide opportunities for the

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_97

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population in developed and developing countries. The digital economy and digitalization of society create certain conditions for supporting and developing employment, which character changes due to external and internal transformations. This paper's hypothesis is as follows: the conditions (opportunities) for the formation of the digital economy influence the level of human potential development in developed and developing countries. Achievement of this paper's goals envisages the solution to the following tasks: • Determining the state and dynamics of the development of human potential in developed and developing countries and analysing the development of the digital economy in developed and developing countries; • Evaluating the character of the influence of the development of the above conditions (opportunities) on the transformation of human potential development in developed and developing countries.

2

Literature Review

In the modern scientific literature, some works study the issues of human potential development and the formation and evolution of the digital economy at the level of developed and developing countries. Aegerter et al. (2021) analyse the state of support for physical activity of the office personnel in Sweden during the COVID period in 2020. The important result of the research is the assessment of the development of Broadband subscriptions and the influence of this indicator on the level of support for physical activity of citizens. The authors of Hjelmeland and Panteleeva (2021) perform complex analysis of elements that influence the development of long-term partnerships at the level of small and medium companies in Norway, the personnel of which promote products with the help of the E-commerce mechanism. The scientific value of this study is the model of commercial communication of personnel that was created in Norwegian companies for effective E-commerce. Gürel and Kozluca (2022) is aimed at the analysis of the effectiveness and structure of Chinese investments in the Turkish economy. The authors present a complex evaluation of the influence of investing on the level of competitiveness of the Turkish industry, analyse the sectoral financing of development, and compare the dynamics of the volumes of investments from China and Western countries. The above overview of the literature showed that the main provisions of the analysed works are devoted to the fragmentary aspects of the considered problem (evaluation of the elements of the digital economy, analysis of isolated

spheres of human potential). However, there is no comprehensive or complex study in this direction.

3

Materials and Methods

Factor analysis was used to determine the variables (conditions) that influence the formation of the digital economy and the level of human potential development in developed and developing countries. A statistical method was used to determine the statistical data on these variables. The trend method was used to assess the influence of the considered variables on the state of human potential development. We propose that the identification of human potential development be performed with the help of such indicators as the Human Development Index (HDI) (published annually in the Human Development Report within the United Nations Development Programme). The evaluation is presented at the level of two developed (Norway, Switzerland) and two developing countries of the world (Turkey, India) (Table 1). The research period covers 2019 and 2020. According to the methodology, the criteria for the identification of the HDI are as follows: > 0.801—very high score; 0.7–0.799—high; 0.55–0.699—medium; < 0.549— low Human Development Data Center (2022). The above systematized statistical data shall be further used during the analysis in this paper. To assess the state of the digital economy, we shall use the information on the level of Broadband subscriptions (Fixed broadband, Mobile broadband) and the E-commerce Index (0–100 points).

4

Results

Let us consider the state of development of human potential in developed and developing countries (assessed through HDI) and analyse the development of the digital economy and the transformation of human potential development. Over 2019–2020, the dynamics of the change of HDI depended on internal and external factors. Among the external factors, the most important one was the pandemic and lockdown restrictions in 2020, which influenced the social and economic components of society's development. The analysis of the considered developed countries showed the following. Norway was ranked 1st in the world by HDI: 0.957 in 2019, and 0.954 in 2020. A decrease (by 0.003) is due to the decrease in gross national income (GNI) per capita: from USD 75,826.08 in 2019 to USD 67,294.48 in 2020. Analysis of the statistical data on the first conditions of the digital economy’s development [Broadband subscriptions Norway (Worldbank, 2022)] showed the following:

New Opportunities for Human Potential Development in the Digital Economy … Table 1 Dynamics of HDI of the considered developed and developing countries in 2019–2020

Country

495 Change, ± , points

Score HDI, points 2019

2020

Norway

0.957

0.954

−0.003

Switzerland

0.955

0.946

−0.009

Turkey

0.820

0.806

−0.014

India

0.645

0.647

0.002

Developed countries

Developing countries

Source Compiled by the authors based on (Human Development Data Center, 2022; World Population Review, 2022)

• Fixed broadband per 100 population equalled 42.03 in 2019, and 44.04—in 2020. Despite the negative influence of the COVID-19 pandemic, there was a growth of opportunities for human potential development that were connected to employment; • Mobile broadband per 100 population equalled 101.7 in 2019 and 107.2 in 2020. Despite the growth of distancing, an increase in Broadband subscriptions was observed, which demonstrates the provision of information and communication services for human potential development. As for the second condition (opportunity) for the formation of the digital economy (E-commerce Index), this index in Norway demonstrated a certain decrease: from 93.4 in 2019 to 92.6 points in 2020 (OECD, 2022). This is due to the reduction of purchasing power of a certain category of consumers and the business environment, caused by the difference between the price and quality of products (services) and the reduction of the level of income. According to Hjelmeland and Panteleeva (2021), the decrease in E-commerce due to the strategic orientation of the portfolio of products (services) led to the need for the search for new ways of retaining national and international partners among consumers and the business environment. Accordingly, the timely reaction to the market changes, caused by the crisis, allowed E-commerce to form more effective niches of development in this sphere, which will allow ensuring further employment of personnel in Norway. So we state that two main conditions (opportunities) for the digital economy in Norway are at a high level (Broadband subscriptions and E-commerce), which is an important precondition for further development of human potential. The level of this element is rather high (more than 90 points). Switzerland was ranked 3rd by HDI in 2019, and 2nd in 2020 (0.955 and 0.946, accordingly). Evaluation of the statistical data on the first condition of the digital economy’s development [Broadband subscriptions Switzerland (Worldbank, 2022)] showed the following:

• Fixed broadband per 100 population in 2019–2020 reduced by 0.7%, equalling 46.484 subscriptions in 2020; • Mobile broadband per 100 population in 2019–2020 reduced by 0.6%, equalling 125.944 subscriptions in 2020. The decrease in the level of Broadband subscriptions was caused by the lockdown restrictions in the first half of 2020. Personnel in Switzerland's business environment, which worked remotely, did not demonstrate a reduction in information and communication activity (Aegerter et al., 2021). Analysis of the development of the second condition (opportunity) of the formation of the digital economy (E-commerce Index) showed that this indicator demonstrated certain growth in Switzerland: from 95.5 points in 2019 to 95.9 points in 2020 (OECD, 2022; Worldbank, 2022). This was due to the improvement of the provision of this sphere's functioning during the lockdown and the improvement of the interaction models. As for the development of the digital economy of Switzerland, there are positive conditions for further stimulation of human potential development. The analysis shows that these elements allow ensuring the rather stable development of human potential for the main parameters even under the conditions of strict limitations for social interaction. As for the considered developing countries, the results are as follows. Turkey’s Score HDI equalled 0.820 in 2019 and 0.806 in 2020, which is rather high (more than 0.801). The study of the factors of the reduction of this indicator showed that the main influence was performed by the decrease in gross national income (GNI) per capita by USD 1255 USD (13%) (Worldbank, 2022). This is because the level of competitiveness of the main types of products (services) is lower than the competitiveness in developed countries (61st position in the Global Competitiveness Index in 2019 and 2020). Turkey manufactures products (services) with low value-added. According to Gürel and Kozluca (2022), Turkey is peculiar for rather low competitiveness of industrial

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products (products with low value added), which is connected to the strategy of the country’s development. Though this strategy is aimed at attracting foreign investments in production (as, for example, substantial investments by China), it does not imply the focus on the complex modernization of the economy. Accordingly, the large dependence of product prices on external prices led to the influence of the crisis on the level of Gross national income (GNI) per capita. Analysis of the statistical materials within the first condition of the digital economy’s development [Broadband subscriptions Turkey (Worldbank, 2022)] showed the following: • Fixed broadband per 100 population grew by 14% in 2019–2020, equalling 19.84 subscriptions in 2020; • Mobile broadband per 100 population reduced slightly in 2019–2020. This reduction was due to the decrease in the demand from the business environment during the lockdown. As for the development of the second condition (opportunity) for the formation of the digital economy (E-commerce Index), this indicator in Turkey demonstrated a decrease from 71.8 points in 2019 to 68.8 points in 2020 (OECD, 2022; Worldbank, 2022). This was due to the decrease in demand for products sold within E-commerce. This influenced the level of development of human potential in 2020, leading to the reduction of Turkey’s Score HDI Turkey. As for the positive characteristics of Turkey’s digital economy, it is possible to note the growth of the Fixed broadband per 100 population. An important drawback of the development of human potential is the absence of the focus on the development of spheres connected to the issue of competitive products with high value added, which realisation would ensure the growth of human potential. India’s Score HDI was 0.645 in 2019, and 0.647 in 2020, which is a medium value. This indicator grew despite the decrease in its components (Gross national income (GNI) per capita decreased by USD 200.04 USD (10.5%)). The growth of India’s Score HDI India was due to the increase in the provision of access to education (training). The decrease in the provision of access to education (training) was due to the positive influence of the following: • Fixed broadband per 100 population grew by 15.7% in 2019–2020; • E-commerce Index grew by 0.1, equalling 57.1 points in 2020. This was due to certain changes in the mechanism of e-commerce and its implementation in most spheres. This also led to an increase in employment in this sphere.

E. A. Gorshkova et al.

Despite the low competitiveness of industry, India uses measures to improve the level of the digital economy, which influence the state of human potential. Further information and communication integration could become one of the possibilities for the economy's modernization and further development of the country’s human potential.

5

Conclusion

We performed the assessment of the new opportunities for human potential development under the conditions of the digital economy and their implementation in developed and developing countries. We found out that the studied developed countries (Norway and Switzerland) have a high level of the elements of the digital economy (Broadband subscriptions and E-commerce) and thus provide significant opportunities for human potential development. This is due to large investments in Broadband subscriptions, which are necessary for obtaining knowledge and education under the conditions of limited social interaction. A high level of E-commerce influences employment in this sphere, which is linked to the high competitiveness of products. Developing countries (Turkey and India) do not have high values of the digital economy’s elements (Broadband subscriptions and E-commerce). This is caused by the absence of the focus on the national economy's modernization. With a certain competitive underrun of industry and low value added of products, these countries demonstrate a certain growth of the indicators of human development (e.g., the dynamics of India’s Score HDI). This fact is connected to the quick reaction of the business environment and government to market changes, which influences the development of knowledge, personnel training, etc. That is, the formation of the above elements of the digital economy (Broadband subscriptions and E-commerce) for developing countries is an important precondition for improving the level of human potential in the context of economy’s modernization. Their further improvement will allow reducing unemployment through the involvement of new personnel in the country’s economic development and innovative processes.

References Aegerter, A. M., Deforth, M., Sjøgaard, G., Johnston, V., Volken, T., Luomajoki, H., Dratva, J., Dressel, H., Distler, O., Melloh, M., Elfering, A., & The NEXpro Collaboration Group. (2021). No evidence for a decrease in physical activity among swiss office workers during COVID-19: A longitudinal study. Front. Psychol, 12. https:// www.frontiersin.org/articles/10.3389/fpsyg.2021.620307/full (Data accessed: March 31, 2022).

New Opportunities for Human Potential Development in the Digital Economy … Gürel, B., & Kozluca, M. (2022). Chinese investment in Turkey: The belt and road initiative, rising expectations and ground realities. European Review, 1, 1–29. Hjelmeland, K., & Panteleeva, E. (2021). Supportive elements of a long-term B2B communication: The case of a Norwegian SME. Eurasian Studies in Business and Economics, 1, 219–235. Human Development Data Center. (2022). Human development index (HDI) by Country 2022. https://hdr.undp.org/en/data (Data accessed: March 31, 2022).

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OECD. (2022). OECD digital economy outlook 2020. https://www. oecd-ilibrary.org/sites/bb167041-en/index.html?itemId=/content/ publication/bb167041-en (Data accessed: March 31, 2022). World Population Review. (2022). Human development index (HDI) 2022. https://worldpopulationreview.com/country-rankings/hdi-bycountry (Data accessed: March 31, 2022). Worldbank. (2022). TCdata360. https://tcdata360.worldbank.org/indicators/ h588c14bc?indicator=1742&viz=line_chart&years=1998,2020 (Data accessed: March 31, 2022).

Integration Mechanisms of Development of the Digital Economy and the Prospects for Their Activation in Russia Arutyun A. Khachaturyan , Mikhail N. Kozin , and Mariya V. Glinskaya

and investment flows in the digital economy; formation of a favourable climate of the development of digital technologies in Russia. Originality/value: The novel aspect of this research is a further elaboration of the characteristics of the influence of the integration mechanisms of digitalization (its elements) on the formation of the digital economy.

Abstract

Purpose: Describing the influence of the integration mechanisms of digitalization (its elements) on the formation of the digital economy and evaluating the prospects for their activation in Russia. Design/methodology/approach: Methods used: classification; comparative method; statistical method. Findings: The authors determine the influence of the integration mechanisms of digitalization (its elements) on the formation of the digital economy and formulate the prospects for their activation in Russia. The influence of the elements of digitalization on the formation of the digital economy is studied by the example of the USA (leader in the sphere of digital technologies), China (a country that demonstrates a quick growth of digitalization), Canada (a country that demonstrates high indicators of the development of digitalization), and Russia (a country with developing digitalization). The main characteristics and problem aspects of the development of digitalization and the digital economy of the given countries are described, and the advantages in this sphere are assessed. Based on the revealed specific features and problems of development, the prospects for improving the mechanism of development of the digital economy are formulated: the possibility for the technological import substitution through a partnership with China, which might become a supplier of certain technologies and equipment; improvement of the assessment of the effectiveness of investments A. A. Khachaturyan (&) Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] M. N. Kozin Research Institute of the Federal Penitentiary Service of the Russian Federation, Moscow, Russian Federation M. V. Glinskaya Institute of World Economy and Business, Russian University of Friendship of Peoples, Moscow, Russia e-mail: [email protected]

Keywords

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.

. . .

Integration mechanisms Digital economy Digitalization Import substitution Investments Liberalization of regulation JEL Classification

M15

1

.

O33

Introduction

Digitalization of the economy, which is based on a new type of information and communication technologies is the most important modern sign of the sustainable economic development of a country. This is due to the following objective reasons: dissemination of computers in all spheres of life, wide use of mobile devices, and the growing network interaction in society accelerate the digitalization of all life activities. Such terms as fintech, foodtech, agrotech, crowdsourcing, big data, and digital economy have become a part of the modern economic vocabulary. For developing countries, the accelerated reorientation of the economy to the digital way of functioning, which is based on the use of cyber-physical systems, sensor technologies, and technologies of big data analytics, has become a topical task. In Russia, digitalization can become the basis for the stimulation of economic growth and the foundation for a new way of development under the conditions of depletion of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_98

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A. A. Khachaturyan et al.

resource-based sources of growth that are traditional for the Russian economy. The guarantee of success of the digital modernization of the economy is the comprehensive study of the process of digitalization. The effective formation of the digital economy envisages the creation of an optimal integration mechanism for implementing digital technologies, which would facilitate the increase in value added of products (services) and the growth of their competitiveness in the national and international markets. Thus, it is important to determine this integration mechanism, which is necessary for the successful development of the digital economy. The research hypothesis is the existence of the influence of the development of digitalization’s elements on the formation of national digital economies. The goal of this research consists in describing the influence of the integration mechanisms of digitalization (its elements) on the formation of the digital economy and assessing the prospects for their activation in Russia. Achievement of this goal presupposes the resolution of the following tasks: assessing the level of the influence of the digitalization’s elements on the formation of national digital economies; determining the prospects for activation of the digital economy in Russia.

2

Literature Review

The topics of development of the integration mechanisms of the digital economy and the prospects for their activation have been studied in (but not limited to) the following scientific works. The authors of Aguilera-Hermida et al. (2021) present a comparative analysis of using the mechanism of emergency online learning (caused by the 2020 pandemic) by the example of Mexico, Turkey, Peru, and the USA. The authors contribute to the development of offers on micro-courses, which include the possibility of self-education within narrow directions that are a necessity for the increase of self-efficacy and cognitive activity. The work (Chinadaily, 2021) considers the consequences of the influence of the US-China trade war on the development of Chinses economy and technological growth. The empirical results of this research allow evaluation of the transformation of technological development of China at different stages. Liu (2021) studies the level of digitalization of Canada's sectors of the economy. Maslova et al. (2019) dwell on the development of the Russian agro-industrial complex and the problems of import substitution in the sphere of an upgrade of technologies that influence the state of food security. The authors describe the causes and consequences of the complexity of the organization of import substitution on the sustainable development of agriculture in Russia.

The literature review allowed determining certain aspects of the development of digitalization and the integration of its elements in the digital economy’s formation, as well as distinguishing certain characteristics and problems in this direction.

3

Materials and Methods

The method of classification is used to determine the main elements of the integration mechanisms of digitalization. The comparative method allows assessing the change in the level of the influence of the integration mechanisms of digitalization (its elements) on the formation of the digital economy. The statistical method is utilized to determine the statistical data on the considered indicators. Analysis of the influence of the elements of digitalization on the formation of the national digital economies is done using the data on the following indicators (Table 1): • digital competitiveness, based on the IMD World Digital Competitiveness Ranking (IMD World, 2022); • development of the national digital economies (% of the digital economy in GDP). Further, according to the logic of the research, the following is done: determining the dependence of the digital economy formation (change of efficiency) on the change of the Digital Competitiveness Ranking; and determining the prospects for activation of the development of the digital economy in Russia based on the characteristics of this parameter at the modern stage.

4

Results

The USA was ranked 1st in the Digital Competitiveness Ranking in 2018–2020 (Table 1). The first position by the indicator “Knowledge” was ensured by the long history of the preparation of methodological materials for education in secondary and high school. According to Aguilera-Hermida et al. (2021), during the pandemic (2020), the educational materials were transferred into the electronic form, which resulted in the key positions of the USA by the indicator “Knowledge” in 2019–2020. The indicator “Technology” somewhat decreased over 2018–2020, which was caused by the underrun in the sphere of e-commerce compared to other leaders in this sphere (the UK and China) (Schwandt, 2022). Analysis of the change in the share of the digital economy in the US GDP shows that given a slight decrease in the level of technological provision (Technology) in 2020, the GDP of the digital economy also reduced. It is possible to note the

Integration Mechanisms of Development of the Digital Economy and the Prospects for Their Activation in Russia Table 1 Dynamics of digital competitiveness ranking (% of the digital economy in GDP) in 2018–2020

Country

501

Dynamics, ±

Indicator 2018

2019

2020

2018–2019

2019–2020

Digital competitiveness ranking

1

1

1

0

0

Rank knowledge

4

1

1

−3

0

Rank technology

3

5

7

2

2

Rank future readiness

2

1

2

−1

1

% of the digital economy in GDP

8.9

8.8

8.7

− 0.1

− 0.1

1. USA

GDP, $ trillion

20.6

21.4

20.9

0.8

− 0.5

GDP of the digital economy, $ trillion

1.85

1.9

1.81

0.05

− 0.09

Digital competitiveness ranking

30

22

16

−8

−6

Rank knowledge

30

18

8

− 12

− 10

Rank technology

34

26

27

−8

1

Rank future readiness

28

21

18

−7

−3

% of the digital economy in GDP

39

40.6

41.2

1.6

0.6

GDP, $ trillion

13.89

14.28

14.72

0.39

0.44

GDP of the digital economy, $ trillion

5.44

5.8

6.07

0.36

0.27

8

11

12

3

1

2. China

3. Canada Digital competitiveness ranking Rank knowledge

3

5

5

2

0

Rank technology

12

13

13

1

0

Rank future readiness

9

18

15

9

−3

% of the digital economy in GDP

8

27

26,5

19

− 0.5

GDP, $ trillion

1.722

1.742

1.643

0.02

− 0.099

GDP of the digital economy, $ trillion

0.137

0.47

0.436

0.33

− 0.034

Digital competitiveness ranking

40

38

43

−2

5

Rank knowledge

24

22

26

−2

4

Rank technology

43

43

47

0

4

4. Russia

Rank future readiness

51

42

53

−9

11

% of the digital economy in GDP

2.7

2.8

3.1

0.1

0.3

GDP, $ trillion

1.65

1.68

1.48

0.03

− 0.2

GDP of the digital economy, $ trillion

0.045

0.048

0.046

0.003

− 0.002

Source Compiled by the authors based on Сhinadaily (2021) and IMD WORLD (2022)

direct dependence of the state of the digital economy on the existing mechanism of the integration of technologies, which was manifested during the 2020 pandemic and crisis. According to Table 1, China demonstrated significant growth and improvement in the integration mechanism of digitalization in the main components in 2018–2020. A slight decrease was observed in 2020, due to the economic crisis (caused by the pandemic) and the influence of the US-China trade war (Chengying et al., 2021). The US-China trade war, which included the additional tariffs on Chinese products, led to substantial losses for Chinese companies in almost all spheres. This led to a certain decrease in the

investments in the technological development of the country. The high level and the improvement of the Digital Competitiveness Ranking allowed the growth of the GDP of the digital economy (from $5.44 trillion in 2018 to $6.07 trillion in 2020). In the Digital Competitiveness Ranking, Canada was ranked 8th in 2018, 11th in 2019, and 12th in 2020. This decrease in the position was due to the reduction of investments in the development of the main components of this indicator. The negative indicators of the Canadian economy's development further aggravated in 2020, which led to a decrease in GDP. In its turn, this predetermined the

502

reduction of the level of digitalization and a decrease in the rate of integration of its mechanisms. Despite this, the most important tendencies of the formation of Canada's digital economy in 2020 were the development of a favourable climate of the functioning of IT (small interference from regulatory bodies compared to China, India, Russia, etc.); implementation of the innovative methods of management, development of the information and communication skills of personnel in the spheres which performed a significant digital integration and were able to preserve the achieved level of development. According to Liu (2021), the sectors of the economy that performed a quick transition to the large-scale implementation of digitalization in Canada are as follows: housing and utility sector; production of rubber items and plastic; sector of primary production of metals; production of computer and electronic equipment; data processing; telecommunications; scientific and technological services; insurance and finance. As shown in Table 1, Russia was ranked 43rd in the Digital Competitiveness Ranking in 2020. The lowest development was observed within the indicators Technology (47th position in 2020) and Future Readiness (53rd in 2020). This was caused by a range of factors: difficulties of import substitution that influence the technological development (the need for an upgrade of fixed assets in the main spheres, including the agro-industrial complex, which provides food security; the influence of the global economic crisis, including the constant changes in prices for the main resources, and crises in stock and currency markets (Maslova et al., 2019). It is possible to state the dependence of the formation of Russia’s digital economy Russia (reduction of the volumes of GDP of the digital economy) on the level of integration of the elements of the country’s digitalization in 2020. The study of the characteristics and problems of the formation of Russia's digital economy allowed determining the main prospects for improving the mechanism of its development: • solving the problem of the necessity for quick import substitution in the sphere of technological provision through cooperation with partners in the international market (e.g., China); • evaluating the effectiveness of investments in digitalization, complex analysis of their justification, revealing the possible directions of changing the investment flows for the purpose of growth and development of the digital economy in strategically important spheres, including the agro-industrial complex (food security); • creating a favourable climate for the development of digital technologies, which implies liberalization in the sphere of regulation of the information and communication provision and the functioning of market participants.

A. A. Khachaturyan et al.

5

Conclusion

In this paper, the authors determine the influence of the integration mechanisms of digitalization (its elements) on the formation of the digital economy and formulated the prospects for their activation in Russia. The research on the influence of the elements of digitalization on the formation of national digital economies was conducted by the example of the USA, China, Canada, and Russia. The authors determine the described the main characteristics and problem aspects of the development of digitalization and the digital economies of the above countries and evaluated the advantages in this sphere. Based on the revealed specific features and problems of development, the prospects for improving the mechanism of development of the digital economy were formulated, which include the possibility for technological import substitution through the development of a partnership with China, which could become a supplier of certain technologies and equipment; improvement of the assessment of the effectiveness of investments and investment flows in the digital economy; formation of a favourable climate for the development of digital technologies in Russia.

References Aguilera-Hermida, A. P., Quiroga-Garza, A., Gómez-Mendoza, S., et al. (2021). Comparison of students’ use and acceptance of emergency online learning due to COVID-19 in the USA, Mexico, Peru, and Turkey. Education and Information Technologies, 26, 6823–6845. Chinadaily. (2021). World's top 10 countries in digital economy. https://www.chinadaily.com.cn/a/202109/02/WS61300145a310efa1bd66cb0e_1.html. Date of access: April 6, 2022. Chengying, H., Rui, C., & Ying, L. (2021). US-China trade war and China’s stock market: An event-driven analysis. Economic Research-Ekonomska Istraživanja. https://www.tandfonline.com/ doi/pdf/https://doi.org/10.1080/1331677X.2021.1990781? needAccess=true. Date of access: April 6, 2022. IMD WORLD. (2022). Digital competitiveness ranking 2021. https:// www.imd.org/centers/world-competitiveness-center/rankings/ world-digital-competitiveness/. Date of access: April 6, 2022. Liu, H. (2021). Economic performance associated with digitalization in Canada over the past two decades. Economic and Social Reports. https://www150.statcan.gc.ca/n1/pub/36-28-0001/2021002/article/ 00001-eng.htm. Date of access: April 6, 2022. Maslova, V. V., Chekalin, V. S., & Avdeev, M. V. (2019). Russian agricultural development: Import substitution. Bulletin of the Russian Academy of Sciences, 89(10), 1024–1032. Schwandt, F. (2022). Digital economy compass 2021. https://www. statista.com/study/105653/digital-economy-compass/. Date of access: April 6, 2022.

Problems and Perspectives of Sustainable Development in Current Regions

Designed Innovative and Investment Development of the Region in the Conditions of Digital Economy to Ensure Economic Security Shamil I. Nigmatullin

Abstract

1

In the context of large-scale digitalization of innovation and investment processes in the economy, an important aspect is a process of designing predictive key indicators that characterize the functional and technological effect, scientific and technical effect, financial effect, resource and reproduction effect, and socio-economic effect, reflecting innovative transformations in the regions. This research discloses the methodology for constructing key performance indicators for the implementation of state programs for innovation and investment development in the region, which includes the systematization of indicative indicators for five types of effects and the methodology for calculating forecast values for the medium term to ensure economic security and stability of the region to conditions of high uncertainty and risks. The methodological provisions disclosed in this research can be used as the basis for organizing the monitoring of the implementation of the state program for innovative and investment development of the region in real-time using digital technologies and reporting in XBRL format. Keywords

. ..

.. .

.

Design Innovative processes Innovative development Key performance indicators Predictive indicators Region Innovative activity Forecasting

Introduction

Constantly changing external conditions, rapid progress in engineering and technology, the need to increase the level of dynamism in the development of advanced technologies, including technologies related to the introduction of digitalization for public administration and ensuring the overall economic security of the country, necessitate the design of innovative and investment development in the region through the tools of formation predictive indicators aimed at achieving various types of effects (functional and technological effect, scientific and technical effect, financial effect, resource and reproduction effect, and socio-economic effect) as a result of innovative transformations. The process of designing the innovation and investment development of the region is associated with the compilation of predictive estimates of key performance indicators that characterize the innovative transformations in the region in the medium and long term, as well as their further monitoring, which allows recording the dynamics of changes in key performance indicators in the form of XBRL reporting in real-time using big data technologies and blockchain to adjust the state programs of investment and innovation development at the regional level. Many publications focus on digital technologies, which allow designing similar processes with visualization in reporting format (Astafeva et al., 2020; Valinurova et al., 2020).

JEL Classification

O18

. . . O31

O29

O32

S. I. Nigmatullin (&) Ufa State Petroleum Technological University, Ufa, Russia e-mail: [email protected]

2

Materials and Methods

Based on the results of the analysis of secondary literature (Kirillova & Kantor, 2011; Malykh et al., 2015; Manolov et al., 2020; Valinurova et al., 2015; Vanchukhina et al., 2018) on the issues of investment and innovative development of regions and the current state programs for the innovative development of the regions of the Russian Federation to assess the achieved level of indicators

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_99

505

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S. I. Nigmatullin

characterizing innovative activity, innovative productivity, innovative intensity, innovative dynamism of the region, cost capacity on innovation, and the return on the use of innovative potential in the regions, the author defined the following goals of implementing innovative transformations in the regions to achieve 5D effects using innovation diffusion mechanisms: • To achieve strategic goals for the development of innovative processes in the region; • To increase the potential for the development of innovative processes in the region; • To increase financing for the development of innovative processes in the region; • To increase the dynamism of the development of innovative processes in the region; • To preserve human capital with innovative thinking and increase the region’s intellectual potential productivity. The degree of achievement of the goals of implementing innovative transformations in the regions can be judged when the average actual values of indicators and predicted

Table 1 List of key performance indicators used to assess the effectiveness of the implementation of the model for forecasting the development of innovative processes in the region

values of indicators are set. They can be achieved if there is a set of measures to obtain the desired result. In the framework of this research, the indicators for assessing the achievement of the goals of implementing innovative transformations in the regions to obtain 5D effects are called key performance indicators (KPI). The KPI theory was proposed by Kaplan and Norton (Kaplan, 2010; Kaplan & Norton, 2005, 2017), which should be broadcasted to assess the effectiveness of the implementation of the model for predicting the development of innovative processes in the region. KPIs are determined based on compliance with predictive estimates of the development of innovation processes in the region based on the modeling of diffuse innovation processes and the ratio of types of innovation users; they are usually measurable and correspond to the type of achieved D-effect. Table 1 provides a list of KPIs used to assess the effectiveness of the implementation of the forecasting model for the development of innovative processes in the region. The predicted target values of indicators are determined based on the estimates of indicative indicators characterizing the implementation of innovation processes in the region and

KPI section

Name of indicator

KPI 1

Increasing the level of innovative activity of the region Increasing the level of innovative productivity of enterprises in the region Increasing the level of return on innovation in the region Increasing the level of high-tech industries in the region

KPI 2

Increasing the intensity of R&D spending Increasing the level of intensity of cooperation between science and business Increasing the level of dynamism in the development of advanced technologies Increasing the level of productivity and manufacturability of workplaces

KPI 3

Increasing the share of non-budgetary sources of financing in the total volume of financial resources allocated to finance R&D Increasing the level of intensity of high-tech production Increasing the cost capacity for innovation activities Increasing the level of patent activity in the region

KPI 4

Increasing the growth rate of investment in innovation Achieving excess of GRP growth rates over the growth rates of investments in fixed capital Increasing the region’s spending on research and development and GRP Increasing the level of return on the use of intellectual potential in the region

KPI 5

Increasing the level of intensity of scientific potential in the region Increasing the level of research activity in the region Increasing the rate of growth in the level of remuneration of researchers in the region compared to the average Russian growth rate Increasing in the level of regional wages compared to the average Russian value, %

Source Compiled by the authors

Functional and technological effect— the effect of achieving strategic goals for the development of innovative processes in the region

Scientific and technical effect—the effect of the potential for the development of innovative processes in the region

1

2

Source Compiled by the authors

Type of 5D effect

No

3.2

124.1

P7—Increasing the level of development dynamism

23.5

P4—Increasing the level of high-tech industries in the region, %

P6—Increasing the level of intensity of cooperation between science and business, %

5.3

1.8

P3—Increasing the level of return on innovation in the region, rubles/rubles

0.006

37.7

26.7

P2—Increasing the level of innovative productivity of enterprises in the region, million rubles/person

P5—Increasing the level of intensity of research and development costs, rubles/rubles

10.3

10.7

P1—Increasing the level of innovative activity of the region, %

118.0

2.3

0.007

22.4

Actual value for 2019

Average statistical value

KPI

127.70

3.50

0.007

24.00

6.10

50.51

10.50

2021

131.45

3.50

0.007

24.00

6.50

57.61

10.60

2022

Forecast values

135.20

3.50

0.007

24.00

6.90

64.71

10.60

2023

138.95

3.60

0.008

24.00

7.40

71.82

10.70

2024

138.95

3.60

0.008

25.00

7.40

71.82

10.80

2025

134.45

3.54

0.007

24.20

6.86

63.29

10.64

Average forecast value

− 2.68

− 1.38

0.40

− 1.64

0.46

2.31

− 0.85

Estimated values of the criteria for changing key performance indicators

Table 2 Fragment of the calculation of analytical sections taken to form a calculation model for determining the criteria for changing key performance indicators (Ckpi) for the Republic of Bashkortostan

Designed Innovative and Investment Development of the Region ... 507

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S. I. Nigmatullin

the dynamics of their development, obtained by combining the innovation diffusion model and adaptive econometric methods. Analytical sections are distinguished in each studied KPI—the average statistical value of the indicative indicator for the previous analyzed period (2014–2018), the threshold (actual) value of the indicative indicator for the base year (2019), and the average predicted value of the indicative indicator for the period (2020–2025) indicated for the forecast. These analytics allow creating a calculation model for determining the criteria for changing key performance indicators (Ckpi): Ckpi ¼

ðI pred _ Ia Þ ; ðIa _ I stat Þ

ð1Þ

where: Ipred Ia I stat

is the average value of the indicative indicator in the predicted period; the actual value of the indicative indicator for the base year; the average statistical value of the indicative indicator for the previous analyzed period.

Ckpi < 0 indicates the minimizing value of the criterion when at the threshold point, the value of the indicative indicator reaches minimum and increases in the forecast period, in some cases exceeding the average statistical value of the indicative indicator for the previous analyzed period. Ckpi > 0 indicates the maximizing value of the criterion when at the threshold point, the value of the indicative indicator exceeds the average statistical value of the indicative indicator for the previous analyzed period, followed by a positive trend in the change in the average forecast value of the indicator for the period indicated for the forecast.

3

Results

The obtained results of the calculation of analytical sections were taken to form the calculation model for determining the criteria for changing key performance indicators (Ckpi) and the calculated values of the criteria for changing key performance indicators for the Republic of Bashkortostan are presented in Table 2. Positive values of the criteria for changing key performance indicators show their importance and the greatest contribution of the target indicator to the achievement of the 5D effect in the design and implementation of innovative transformations in the region in the forecast period. Negative values of the criteria for changing key performance indicators show a smaller contribution of the target

indicator to the achievement of the 5D effect in the design and implementation of innovative transformations in the region.

4

Conclusion

Based on the results of the scientific research, the author proposes to use the technology for designing the innovative and investment development of the region, which is based on the methodology for constructing KPIs for the implementation of innovative transformations aimed at obtaining 5D effects and monitoring predictive indicators during the implementation of approved state programs with the involvement of digital technologies, which are aimed at ensuring the economic security of the region. Acknowledgements The reported study was funded by RFBR, project number 19-310-90037/19.

References Astafeva, O. V., Astafyev, E. V., Khalikova, E. A., Leybert, T. B., & Osipova, I. A. (2020). XBRL Reporting in the conditions of digital business transformation. In S. Ashmarina, M. Vochozka, & V. Mantulenko (Eds.), Digital age: Chances, challenges and future (pp. 373–381). Springer. https://doi.org/10.1007/978-3-030-270155_45 Kaplan, R. S., & Norton, D. P. (2005). Strategy maps: Converting intangible assets into tangible outcomes (M. Pavlova, Trans. from English). CJSC “Olimp-Business.” (Original work published 2004). Kaplan, R. S. (2010). The execution premium: Linking strategy to operations for competitive advantage, 3rd ed. (M. Pavlova, Trans. from English). CJSC “Olimp-Business.” (Original work published 2008). Kaplan, R. S., & Norton, D. P. (2017). The balanced scorecard: Translating strategy into action, 3rd ed. (M. Pavlova, Trans. from English). CJSC “Olimp-Business.” (Original work published 1996) Kirillova, S. A., & Kantor, O. G. (2011). Regional growth: The quality of economic space. Regional Research of Russia, 1(3), 199–209. https://doi.org/10.1134/S207997051103004X Malykh, O. E., Polyanskaya, I. K., Lebedev, I. A., Sajranov, V. A., Sajranova, M. V., & Tsaregorodtsev, E. I. (2015). Resources of innovative development of the region in the conditions of formation of knowledge economy. Mediterranean Journal of Social Sciences, 6(3), 345–350. Manolov, G. A., Orlova, D. B., Khodkovskaya, J. C., Barkova, E. C., & Nazarov, M. D. (2020). A Smart specialization strategy for sustainable development of regions. In E3S Web of Conferences (Vol. 208, p. 08009). https://doi.org/10.1051/e3sconf/20202080 8009 Valinurova, L. S., Kazakova, O. B., & Sulimova, E. A. (2015). Evaluation of investment attractiveness and prediction of investment volumes to the region. Mediterranean Journal of Social Sciences, 6(5S3), 371–379. https://doi.org/10.5901/mjss.2015. v6n5s3p371 Valinurova, L. S., Leibert, T. B., & Khalikova, E. A. (2020). Innovative approaches to corporate financial management in business systems. In E. Popkova, & B. Sergi (Eds.), The 21st century from the

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positions of modern science: Intellectual, digital and innovative aspects (pp. 83–95). Springer. https://doi.org/10.1007/978-3-03032015-7_11 Vanchukhina, L. I., Leybert, T. B., Khalikova, E. A., & Khalmetov, A. R. (2018). New approaches to formation of innovational human

capital as an element of institutional environment. In E. Popkova (Eds.), The impact of information on modern humans (pp. 343– 352). Springer. https://doi.org/10.1007/978-3-319-75383-6_44

State Regulation of the Development of Cooperative Formations in Agriculture of the Republic of Bashkortostan Irina N. Girfanova , Angelica A. Nikitina , Alfia M. Nurlygayanova , Flyuza A. Tukayeva , and Elena A. Hunafina

Abstract

The forms and types of cooperation of peasant farms with small medium-sized enterprises operating are presented. The lack of protection of small business entities operating in the agricultural sector will complicate adaptation and the ability to function in competition with large agricultural producers. Inter-farm cooperation, the unification of small forms of management in unions and associations can help strengthen the position of farmers and win their market share. Keywords

.

State regulation Inter-farm cooperation Production potential

.

Competition

.

JEL Classification

Q12

1

. . R1

R2

Introduction

The relevance of the study is explained by the fact that the regional features of the development of the cooperative economy require in-depth study due to serious differences in the level of development of cooperative processes and in the I. N. Girfanova (&) . A. M. Nurlygayanova . F. A. Tukayeva . E. A. Hunafina Bashkir Cooperative Institute, Russian University of Cooperation, Ufa, Russia e-mail: [email protected] A. A. Nikitina Ufa University of Science and Technology, Bashkir State University, Institute of Law, Ufa, Russia F. A. Tukayeva Ufa Law Institute of the Ministry of Internal Affairs of the Russian Federation, Ufa, Russia

institutional environment among the regions of Russia. This article focuses on the unique experience of the Republic of Bashkortostan, whose cooperative economy is mainly represented by agricultural cooperatives.

2

Methodology

The scientific research is based on the works of Davletbaeva and Nikitina (2013), Khabirov and Nikitina (2007), Khabirov et al. (2005), Nikitina (2012, 2013, 2016, 2017, 2021a), Nikitina et al. (2021a, 2021c). The state and development of consumer cooperation have been studied in the works of Buranbaeva and Sabirova (2018) and Nikitina et al. (2021b). Anti-crisis measures to stabilize the current situation are considered in Nikitina and Mukhametzyanova (2021). Effectiveness of cooperative formations is considered in the works of Guryanova et al. (2021) and Nikitina (2017). The international experience of cooperation has been studied in the works of Dashkovsky (2019), Nikitina (2021b), Tomashevskaya et al. (2021) and Zhilina et al. (2021). The study of the problem of cooperation of small business entities was based on historical, logical and methodological approaches, as well as on such general scientific methods of economic analysis as induction and deduction, the method of comparative statics and economic and mathematical modelling.

3

Results

In order to improve financial results, farmers unite with marketing cooperatives with serious obligations. Its farmers cannot sell the best share of products themselves, and leave the worst to the cooperative. Some cooperative organizations do not actually sell products, but act on behalf of their members, stimulating production, providing consultations and arranging meetings on production and marketing issues.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_100

511

512

The possibilities of cooperation are not limited. It is possible to distinguish such types of cooperatives as inter-farm, cooperation of peasant (farmer) farms with collective farms, cooperation of peasant (farmer) farms with processing enterprises, cooperation of peasant (farmer) farms with trading enterprises, cooperation with MTS, cooperation with procurement organizations and many others. The production cooperation of peasant (farmer) farms with the above-listed economic entities would allow to increase the volume of output, make better use of available resources and, as a result, increase the efficiency of production activities. Cooperatives can be organized on the territory of any administrative formation, and have a positive impact on regional indicators. 367 agricultural cooperatives were registered in the region at the end of 2020, including 356 consumer and 11 credit cooperatives. If 266 agricultural consumer cooperatives have been created over the past three years, 52 of them in 2020, 6423 small businesses have already been involved in 2021. According to this resolution, the applicant can receive a grant for the creation and development of a peasant (farm). The applicant may be a citizen of the Russian Federation, an individual entrepreneur whose main activity is the production and (or) processing of agricultural products registered in a rural area or on the territory of a rural agglomeration in 2019. At the same time, part of the grant (from 25 to 50%) is directed to the formation of an indivisible fund of the cooperative in an amount not exceeding 3 million rubles, but not more than 9. Regarding “Reimbursement of part of the costs of agricultural production cooperatives”, subsidies are provided to cover part of the costs incurred by the cooperative. The applicant, in this case, is an agricultural consumer cooperative registered in rural areas of the Republic of Belarus, which is a small and medium-sized business entity and unites at least 5 personal subsidiary farms and (or) 3 agricultural producers of other types (must meet the conditions of micro- or mini-enterprises and are not associate members) and registered earlier than 2020. The conditions for granting the subsidy are the reimbursement of part of the costs incurred in the fiscal year 2020 related to the acquisition of property for subsequent transfer (sale) of the acquired property to the ownership of members of this agricultural production cooperative in an amount not exceeding 50% of the costs, but not more than 3 million rubles per agricultural production cooperative. Acquisition of agricultural products from members of an agricultural production cooperative should not exceed: − 12% of costs—if the proceeds from the sale of products purchased from members of an agricultural production cooperative, is from 5000 thousand rubles to 25,000 thousand rubles inclusive;

I. N. Girfanova et al.

15% of costs—if the proceeds from the sale of products purchased from members of an agricultural production cooperative, is more than 25,000 thousand rubles. The volume of products purchased from one member of an agricultural production cooperative should not exceed 15% of the total volume of products purchased by this agricultural production cooperative from members of an agricultural production cooperative. Agricultural consumer cooperatives can participate in the program: “Development of the material and technical base of cooperatives”. According to the Resolution, the maximum grant amount is 70 million rubles. The grant amount does not exceed 60% of the costs (for agricultural production cooperatives that use the right to exemption from value-added tax—including value-added tax). This grant is issued for: acquisition, construction, overhaul, reconstruction or modernization of facilities for harvesting, storage, part-time work, sorting, slaughter, primary, preparation for sale and sale of agricultural products, wild fruits, nuts, mushrooms, seeds and similar forest resources of products of processing of these products and resources; purchase and installation of equipment and machinery for production facilities intended for harvesting, storage, part-time work, processing, sorting, slaughter, primary processing, cooling, preparation for sale, loading, unloading of agricultural products, transportation and sale of wild resources and processing the specified products and resources and processing of agricultural products with equipment, as well as for the purchase of equipment for laboratory analysis of the quality of agricultural products. The republic provides state support for agricultural consumer cooperatives in the form of grants and subsidies. In particular, grants totaling 228.7 million rubles were allocated from the consolidated budget for three years to develop the material and technical base of such cooperatives in Bashkiria, including 100 million rubles in 2020. 17 cooperatives took advantage of the support, eight of them last year. Since 2019, subsidies have been allocated to agricultural consumer cooperatives to reimburse part of the costs of purchasing agricultural machinery and equipment, cattle. There were allocated to 38 agricultural consumer cooperatives for these purposes over two years. In particular, in 2020, 28 cooperatives received subsidies totaling 49.4 million rubles. In 2018 and 2019, Bashkortostan also implemented a republican grant program to support income-generating projects, within the framework of which cooperatives are being created: about 600 million rubles were allocated from the regional budget for its activities, 224 agricultural consumer cooperatives were created. The implementation of this program is planned to continue in 2021.

State Regulation of the Development of Cooperative Formations in Agriculture of the Republic of Bashkortostan

4

Conclusion

The results obtained allow us to conclude that agricultural cooperatives in the Republic of Bashkortostan (Russian Federation) rely heavily on state regulation. A feature of the cooperative economy of this region is the predominance of financial incentives for the development of agricultural cooperatives. Grant support is the key regulatory tool. In further studies, it is advisable to study the experience of other regions of Russia in order to compile the most complete and reliable picture of the cooperative economy in Russia.

References Buranbaeva, L. Z., & Sabirova, Z. Z. (2018). Agricultural consumer cooperation: revival and development prospects. In Modern cooperation in the system of sustainable development goals. Materials of the International Scientific and Practical Conference (pp. 64–67). Russian University of Cooperation. Dashkovsky, I. (2019). Cooperation on paper. Why there are no European-sized cooperatives in Russia. Working paper. Agricultural Engineering And Technology, May 17, 2019. https://www. agroinvestor.ru/regions/article/31727-kooperatsiya-na-bumage/ Davletbaeva, L. R., & Nikitina, A. A. (2013). Prospects for the development of agriculture in the Republic of Bashkortostan. Economy and Entrepreneurship, 2(31), 117–120. Guryanova, N. M., Gushchina, V. A., & Sologub, I. I. (2021). Interdisciplinary Scientific Information Center of the Problems and main directions of increasing the efficiency of functioning of the agro-industrial complex of the region in the context of globalization and import substitution (204 p). Penza State Agrarian University. ISBN 9785604520550. Khabirov, G. A., & Nikitina, A. A. (2007). Optimization of the size of peasant (farm) farms. Reports of the Russian Academy of Agricultural Sciences, 4, 55–57. Khabirov, G. A., Valiakhmetova, N. Z., & Nikitina, A. A. (2005). Specialization and the size of production in peasant (farms), 2nd ed., revised (62 p.). Bashkir State Agrarian University. ISBN 5745600802. Nikitina, A. A., & Mukhametzyanova, E. R. (2021). Anti-crisis measures to intensify the use of agricultural machinery. Russian Agricultural Economics, 4, 55–63. https://doi.org/10.32651/214-55 Nikitina, A. A. (2012). Classification of farms taking into account the foreign experience of farming. Regional Economy: Theory and Practice, 8, 60–64.

513

Nikitina, A. A. (2013). State support of the agro-industrial complex in Bashkiria. Siberian Financial School, 2(97), 26–30. Nikitina, A. A. (2016). The main factors hindering the development of peasant farms on the example of the Republic of Bashkortostan (161 p.). Germany. ISBN 9783330000940. Nikitina, A. A. (2017). Analysis of the efficiency of the functioning of peasant (farmer) households taking into account the regional characteristics of the Republic of Bashkortostan: monograph (188 p). Orenburg. Nikitina, A. A. (2021a). Increasing the efficiency of the resource potential of peasant (farm) farms in the Republic of Bashkortostan. In Problems and main directions of increasing the efficiency of the functioning of the agro-industrial complex of the region in the context of globalization and import substitution (pp. 54–68). Intersectoral Scientific Information Centre of the Penza State Agrarian University (MNIC), Penza State Agrarian University. Nikitina, A. A. (2021b). Traditions and innovations in modern science and education: theory and best practice. Collective monograph. Monograph code: MON-62 ICNP (286 p.). International Center for Scientific Partnership “New Science”. Author’s Section (pp. 269–286). Nikitina, A. A., Khanova, I. M., Dubinina, E. V., Sibagatullina, R. M., & Nurlygayanova, A. M. (2021a). Innovative directions of assessing the regional resource potential of small forms of management functioning in the field of agriculture in Bashkiria. Working Paper, Economy and Entrepreneurship, 1(126), 498–505. Nikitina, A. A., Mazitov, F. F., & Zhilina, E. V. (2021b). Regional aspects of consumer cooperation in the Republic of Bashkortostan: success and development prospects. Bulletin of the Russian University of Cooperation, 2(44), 52–58. https://doi.org/10.52623/ 2227-4383-2-44-10 Nikitina, A. A., Mukhametzyanova, E. R., Yuldybaev, B. R., Knyaginina, G. V., & Nurlygayanova, A. M. (2021c). The regional resource potential of small forms of farming in the field of agriculture of the Republic of Bashkortostan Regional. Working Paper. Economy and Management: Electronic Scientific Journal, 1 (65), 20. Tomashevskaya, L. I., Musina, G. A., & Nikitina, A. A. (2021). Theoretical aspects of integration and cooperation in the national economy in the context of globalization. Regional cooperation: theory, problems and experience. In: S. N. Lebedev (Ed.), E. P. Bagryantseva (Sc Ed.), Collection of international scientific and practical internet conference, Gomel, April 29, 2021 (pp. 130–133). Belarusian Trade and Economic University of Consumer Cooperatives. Zhilina, E. V., Nikitina, A. A., & Mukhamedyanova, A. F. (2021). Directions of development of small and medium-sized businesses in Russia taking into account foreign experience. Working Paper. Bulletin of BIST (Bashkir Institute of Social Technologies), 1(50), 29–37.

Regional Features of Digital Transformation During the Pandemic Igor V. Petrov , Svetlana V. Plyasova , Olga Y. Kolomytseva , Irina K. Yakovleva , and Natalia I. Kuzmenko

cyber threats to the regions. The authors identified the directions of a supportive digital development policy in the Russian regions and formed a set of measures for its implementation.

Abstract

The research aims to analyze the processes of digital transformation of Russian regions during the COVID-19 pandemic, identifying growth factors and causes of containment and determining the directions of a supportive digital development policy. The authors conducted a comparative analysis of the indicators of digital development of Russian regions in the pre-pandemic period and the active stage of the COVID-19 pandemic. The authors revealed the changes that occurred during the pandemic in the digital infrastructure of the Russian regions. The authors proved that, at the active stage of the COVID-19 pandemic, there was an increase in the share of the population of the regions who used the Internet to order goods and services, growth in the share of sales via the Internet in the total volume of retail trade turnover, and a rise in the volume of online government services received. The authors analyzed the dynamics of indicators for the development of innovation and R&D as the basis for the digital transformation of regions. It is concluded that most Russian regions provided increased investment in R&D and ICT equipment during the pandemic. However, the intensification of digital transformation during the COVID-19 pandemic led to a sharp increase in I. V. Petrov (&) I.T. Trubilin Kuban State Agrarian University, Krasnodar, Russia e-mail: [email protected]; [email protected] S. V. Plyasova Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] O. Y. Kolomytseva Voronezh State University of Forestry and Technologies named after G.F. Morozov, Voronezh, Russia I. K. Yakovleva Voronezh State University, Voronezh, Russia

Keywords

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Region Digitalization Digital transformation Pandemic Digital technologies Digital infrastructure Digitalization policy Russia JEL Classification

O33

1

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R11

Introduction

Digital development has long been an objective reality. Countries and regions of the world introduce digital technologies that provide a new level of comfort in the process of people’s lives, facilitate labor processes, optimize organizational and managerial functions of a person, and accelerate the flow of communications and business processes (Akatkin et al., 2017; ). Statistical figures confirm the acceleration of digitalization processes in terms of access to the Internet (in 2020, access to the Internet was provided to more than 4.54 billion people) (Sergeeva, 2020) and the use of digital technologies (89% of all economic entities have started implementing digital business strategies (Columbus, 2018), and e-government systems have been implemented in most countries of the world (Pavlyutenkova, 2019)). Countries take measures at the national and regional levels to reduce the risks of digitalization; in many cases, they become the key to their success and advanced digital development (Karpunina et al., 2021c).

N. I. Kuzmenko Voronezh State Pedagogical University, Voronezh, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_101

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However, the external environment creates new challenges for digital transformation. Thus, on the one hand, the COVID-19 pandemic increased the importance of the digital sector and multiplied the use of information technology. On the other hand, it created the prerequisites for the emergence of destabilizing factors constraining digitalization processes in the regions (Korolyuk et al., 2021; Mejokh et al., 2020). Thus, the analysis of COVID dynamics and its impact on the course of digital transformation of Russian regions is of current scientific interest.

2

Literature Review

The benefits of digital development for the state and society are reflected in the scientific literature, including the works of Frey and Osborne (2013), Brynjolfsson and McAfee (2014). In particular, the authors emphasize that the result of the introduction of effective ICT solutions into business processes is an increase in labor productivity, optimization of supply chains, and reduction of overall costs. Katz (2017), Karpunina et al. (2019, 2021d), Molchan et al. (2019), Kapustina et al. (2020), Gorulev (2018), and Voronkov (2019) pointed to the emergence of economic and social risks of digitalization for individuals, enterprises, and the national economy. The researchers note that there is an increase in the dependence of enterprises’ activities on the uninterrupted operation of the Internet, as well as an increase in their vulnerability due to technological failures and the development of cybercrime. The authors also emphasize the adverse social effects of intensive digital consumption in the form of degradation of human relations, increased social inequality as a reflection of different access to information technologies, and raised unemployment due to the introduction of technologies for managing digital business processes. The researchers also highlight the features of the digital transformation of regions (Bychkova et al., 2020; Elokhov & Alexandrova, 2019). The authors point out the unevenness of digital development in the regions and identify factors that aggravate it (including the development of human capital, the state of the scientific and technical base, the provision of R&D with financial resources, and the development of the education system in the region). The COVID-19 pandemic has made significant adjustments to the processes of digitalization. Many countries and regions of the world have made a breakthrough in digital development, providing opportunities for uninterrupted operation of enterprises in lockdown conditions, communication and training during sanitary restrictions; digital technologies were also used in solving epidemiological problems (Karpunina et al., 2022). However, not all regions of the country were equally successful in coping with the

consequences of the COVID-19 pandemic. Accordingly, digitalization processes in the regional context also proceeded unevenly. This requires a clarifying analysis and the development of measures to offset the negative consequences.

3

Methodology

The research aims to analyze the processes of digital transformation of Russian regions during the COVID-19 pandemic, identify growth factors and causes of containment, and determine the directions of a supportive digital development policy. The research objectives are as follows: • To analyze the course of digitalization processes in the regions during the COVID-19 pandemic; • To identify the factors contributing to the acceleration of digitalization processes in Russian regions and constraining their digital transformation; • To determine the directions of a supportive digital development policy in the Russian regions. The research methods include comparative analysis, systematization, graphical method, economic and statistical analysis, and systemic approach.

4

Results

We will conduct a comparative analysis of digitalization processes in Russian regions in the pre-pandemic period and in the active stage of the pandemic. The assessment of the level of digitalization of a country or its separate territory can be carried out based on the methodology of the Portulance Institute (Dutta et al., 2019). The developers of this methodology propose to evaluate the so-called network readiness of the territory in four categories “technology,” “people,” “government,” and “influence.” For example, the category “technologies” evaluates the availability of Internet access for subjects living in the territory, content, as well as the digital technologies used. The indicators characterizing this category primarily reflect the formation and state of the digital infrastructure. The category “people” evaluates the readiness of individuals, enterprises, and public authorities for digital transformation. For this purpose, indicators such as the share of households making purchases online and online government services are used (Bychkova et al., 2020). The category “governance” evaluates trust, regulation, and inclusivity, primarily through cybersecurity and Internet security indicators.

Regional Features of Digital Transformation During the Pandemic

The category “influence” includes indicators reflecting the impact of digitalization on the economy, the processes of the population life and the achievement of sustainable development goals (Dutta et al., 2019). In particular, it reflects the share of innovative products in the gross regional product, life expectancy, and the number of organizations implementing innovations, including environmental ones. Using statistical data from the Federal State Statistics Service of the Russian Federation and HSE analytical materials, we will compare the indicators of digital development of Russian regions in the pre-pandemic period and in the active stage of the pandemic. Table 1presents the dynamics of changes in the share of households and organizations that had and used broadband access by regions of Russia. According to data, in the COVID-19 pandemic year 2020, the share of households with broadband Internet access in Russia increased by 4.6%. The growth rate is typical for all regions of the country. In the North Caucasus Federal District, previously lagging behind the average Russian level, during the active phase of the pandemic, there was an increase in the share of households with broadband Internet access by 11.3%. This dynamic is explained by the active adaptation of households to the conditions of sanitary restrictions and the transition to remote work and training during self-isolation. These factors have caused a decrease in the number of organizations using broadband Internet access. Due to downtime in 2020, their share in the total number of organizations decreased by 15.6% compared to 2019 and amounted to 77%. The maximum decrease in this indicator was achieved in the Southern Federal District (− 21%) and in the Ural Federal District (− 17.5%) (Federal State Statistics Service of the Russian Federation, 2021b).

Table 1 The share of households with broadband Internet access and organizations that used broadband access in the regions of Russia, 2019–2020

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It should be noted that the self-isolation regime has led to an absolute record over the past five years in the growth of broadband Internet traffic; it has grown by 35% year-on-year (Abdrakhmanova & Utyatina, 2021). Let us move on to the analysis of the indicator “the share of the population shopping online,” which is included in the category of network readiness assessment “people” (Fig. 1). The figure shows that in the pandemic year 2020, the share of the Russian population using the Internet to order goods and services increased by 10.8%. The regional picture looks as follows: in all regions of the country, there is a growth of the indicator; a significant rise has been achieved in some regions (e.g., in the North Caucasus Federal District, it has grown 1.6 times), the exception is the Siberian Federal District (− 3.4%). Thus, during the COVID-19 pandemic, the population began to prefer online purchases of goods and services. This method meets sanitary and epidemiological requirements and provides the consumer with comfort and efficiency of transactions. A similar dynamic towards the intensification of digital development is typical for organizations. New business conditions forced firms to develop their information space to communicate with consumers and promote goods and services. Thus, the share of sales via the Internet in the total volume of retail trade turnover in the pandemic year 2020 increased by 1.95 times in Russia as a whole. The regions with the highest growth in sales via the Internet are the Far Eastern Federal District (a growth of 3.75 times in 2020 compared to 2019) and the Southern Federal District (an increase of 3 times) (Revinova & Tretyakova, 2021). The share of households receiving public services online during the COVID-19 pandemic in Russia grew by 4.5%. Growth occurred in all regions of the country, with the exception of the Volga Federal District (− 1.9%) (Fig. 2).

Region

Percentage of households with broadband Internet access, %

Organizations that used broadband Internet access, % of the total

2019

2020

2019

2020

Russian Federation

73.6

77.0

91.2

77.0

Central Federal District

76.5

79.6

93.1

78.9

Northwestern Federal District

76.6

79.3

92.1

79.2

Southern Federal District

72.7

76.6

91.8

72.4

North Caucasus Federal District

68.1

75.8

77.7

66.3

Volga Federal District

71.8

75.1

92.8

76.6

Ural Federal District

73.5

78.3

91.7

79.4

Siberian Federal District

71.1

72.8

89.4

77.0

Far Eastern Federal District

71.7

75.7

91.1

78.1

Source Compiled by the authors based on the Federal State Statistics Service of the Russian Federation (2021a) and Higher School of Economics (Laykam, 2020)

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Fig. 1 The share of the population aged 15–74 years who used the Internet to order goods or services, by regions of the Russian Federation, %, 2019– 2020. 2021b Source Compiled by the authors based on the Federal State Statistics Service of the Russian Federation ()

Fig. 2 The share of households in Russian regions receiving public services online, %, 2019– 2020. Laykam, 2020 Source Compiled by the authors based on the Federal State Statistics Service of the Russian Federation, Higher School of Economics ()

The growth of indicators is caused by the introduction of a self-isolation regime and the forced termination of the work of state institutions against the background of continued demand for public services. Thus, the COVID-19 pandemic gave a forced impetus to the digitalization of government structures. Another pandemic trend is manifested in the reduction of advanced production technologies used by enterprises of Russian regions by 7.5% in 2020 compared to 2019 (Federal State Statistics Service of the Russian Federation, 2021c). The decrease is typical for all regions of Russia, while the maximum decrease occurred in the Southern Federal District (− 14.7%) and the North Caucasus Federal District (− 10.9%). The minimum reduction was achieved in the Northwestern Federal District (− 2.7%).

The state of innovation and R&D is an important aspect of the digitalization of the region. The analysis of the dynamics of domestic expenditures on R&D in Russian regions during the COVID-19 pandemic highlights a positive trend. In general, in Russia in 2020, the volume of domestic expenditures on research and development increased by 3.5% compared to 2019. However, not all regions of Russia are characterized by this trend. Thus, in the Northwestern and Volga Federal Districts, there was a decrease in internal research and development costs by 5.7% and 2.9%, respectively (Federal State Statistics Service of the Russian Federation, 2021c). During the post-pandemic crisis, such a reduction can be considered a threat to the region’s economic security because competitive organizations and industries determine the region’s well-being and

Regional Features of Digital Transformation During the Pandemic

stable development. In turn, the successful activity of organizations is achieved through the use of a wide range of innovations, primarily the result of R&D (Karpunina & Konovalova, 2021; Sadueva et al., 2020; Yakovleva et al., 2020). The share of organizations implementing technological innovations in the total number of surveyed organizations in the pandemic year 2020 in Russia also increased by 6.5%, which is a positive trend. However, not all regions have maintained such growth dynamics. For example, in the Central Federal District, the value of this indicator decreased by 5.7%, while in the Far Eastern Federal District, it remained unchanged (Federal State Statistics Service of the Russian Federation, 2021c). The maintenance of investments in R&D at the pandemic level has contributed to the increase of innovative activity of enterprises in most regions of Russia. In Russia, the level of innovation activity of organizations amounted to 10.8% in 2020, which is 18.7% higher than in 2019. The largest growth of the indicator was achieved in the North Caucasus Federal District (+ 105.9%); in all other regions, the dynamics of the indicator growth remained moderate. A similar trend has formed in the field of investing in information, computer, and telecommunication (ICT) equipment. In particular, in 2020, on a nationwide scale, the volume of investments in the construction of ICT equipment increased by 10.4%, investments in the modernization and reconstruction of ICT equipment grew by 35.3%, the volume of investments in the acquisition of new fixed assets in the field of ICT raised by 17.4% (Federal State Statistics Service of the Russian Federation, 2021d). Maintaining the growth dynamics of investments in ICT can be assessed as a positive anti-crisis measure of the Russian government. The intensification of digitalization processes in Russian regions during the pandemic period leads to an increase in the likelihood of information technology threats. The National Coordination Center for Computer Incidents notes that more than 4.3 billion information impacts were committed in 2019 on the critical information infrastructure of the Russian Federation: 38% of attacks were committed in the financial sector; 35% were committed against state authorities; 7% were in the defense industry. The largest number of registered crimes committed using ICT technologies were committed in the Northwestern Federal District, the Far Eastern Federal District, as well as in the Central Federal District. IT threats can lead to an increase in unproductive costs for maintaining the operation of information systems and the introduction of security tools. In the end, such expenses lead to the underproduction of GNP (Karpunina et al., 2020a). This problem worsened during the COVID-19 pandemic. In particular, in 2020, the number of unique cyber incidents against the government and medical institutions and

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industrial enterprises increased by 51% compared to 2019. Therefore, the public administration system should consider the growing problem of cyber threats and take timely measures to level them (Karpunina et al., 2019; Molchan et al., 2019). Digitalization is an objective factor in the region’s development, which provides it with unconditional benefits and expands the available opportunities. In this regard, to restore the Russian economy after the COVID-19 pandemic, the government should implement the following areas of supportive digital development policy: (1) A set of organizational measures to develop the digital infrastructure of remote regions of the country and regions with low Internet penetration (North Caucasus and Volga Federal Districts) to meet the needs of the population and organizations; (2) Institutional measures in terms of information security and protection on the Internet in connection with the multiple growths of cyber threats during the COVID-19 pandemic; (3) Creation of favorable investment conditions for organizations engaged in the development and implementation of innovations; (4) Development of a strategy to stimulate the capital expenditures of organizations on information, computer, and telecommunication equipment, as well as financing R&D in the field of ICT.

5

Conclusion

The authors analyzed the course of digitalization processes in the regions during the pandemic period and in the active stage of the pandemic. It is established that in the pandemic year 2020, changes in the state of the digital infrastructure took place in all regions of Russia. In particular, the share of households that had broadband Internet access increased due to the adaptation of households to the conditions of sanitary lockdowns; the massive transition to a remote work format during the period of self-isolation led to a reduction in the share of organizations that used broadband Internet access. During the pandemic, the share of the population of Russian regions who used the Internet to order goods or services increased, the share of sales via the Internet in the total volume of retail trade turnover and the volume of public online services provided also increased. Additionally, almost all regions of the country have demonstrated continued growth dynamics of investments in R&D and ICT equipment. The authors substantiate that the intensification of digitalization processes in Russian regions during the pandemic period leads to an increase in the likelihood of

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information technology threats. A problem area in some regions of the country is the reduction of internal costs for research and development. The authors have formed recommendations for implementing a supportive digital development policy in the Russian regions, including institutional, economic, and organizational measures.

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Formation of a Conceptual Tourist Product for the Effective Development of Territories Without a Pronounced Tourist and Recreational Potential Ludmila A. Burnyasheva , Gennady A. Vorobyov , Bakhtjar M. Gadzhimuradov , Irina E. Romanko , and Oksana N. Taranenko development and attract investment to a particular region. The concept will also help form a conceptual tourist product and attract tourists. Investors will find this concept useful in building a reasoned business plan.

Abstract

The paper justifies that tourism is a catalyst for the social and economic development of many territories due to its considerable multiplier effect. Tourism activities also affect regional development if the territory has a pronounced tourist and recreational potential, determining the important conditions for forming the tourist product. The authors develop a concept to promote the tourist product in those areas that do not have a pronounced tourist and recreational potential. The main point of this concept should be considered as the mechanism of promotion of conceptual tourist products. This mechanism is formed in this research in the form of a specific and consistent algorithm of action. The authors consider the following to be significant elements of the algorithm: setting initial goals; identification and selection of specialists and experts in the development of tourist areas; development of a special program and plan aimed at promoting the conceptual tourist product; implementation of the developed strategy aimed at promoting the conceptual tourist product; expert monitoring of results at each stage of the algorithm, as well as evaluating the overall effectiveness of the implementation of the promotion algorithm. The concept proposed by the authors, designed to promote the tourism product, can be used by the territorial executive authorities to reorient the direction of economic activity and stimulate tourism L. A. Burnyasheva (&) Russian State University of Tourism and Service, Moscow, Russia e-mail: [email protected] G. A. Vorobyov . B. M. Gadzhimuradov Pyatigorsk State University, Pyatigorsk, Russia e-mail: [email protected] B. M. Gadzhimuradov e-mail: [email protected] I. E. Romanko . O. N. Taranenko North Caucasus Federal University, Pyatigorsk, Russia e-mail: [email protected]

Keywords

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..

.

Concept Promotion Tourism Tourist product Territory Region Development Expressed tourist and recreational potential JEL Classification

Z30

1

. . . . Z31

Z32

Z33

Z38

Introduction

The changes that currently occur in the economy of the Russian state have affected the transformation of the socio-economic sphere of individual regions, which have been unable to accept the innovative economic conditions of life of society (Zakharenko, 2015). In studying the problems concerning the economic development of Russian regions, we found that many territories have a mono-directional economic activity. If we consider the growth of scientific and technological progress, the fact that the economy has been reoriented towards services and high-tech economic development, then such territories face the threat of becoming depressed areas (Turgel, 2010). The development of tourism in a particular region can occur as a result of a strategy aimed at changing the sectoral structure of the economy, which assists in determining the internal resources of economic growth and escaping from the implementation of a poorly developed scenario (Gureeva, 2011). The creation of a conceptual tourist product in those areas that do not have a pronounced tourist and recreational

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_102

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potential can also contribute to the effective development of the region’s socio-economic potential. When trying to study the problems associated with the development of tourism in the regions, there are many unresolved issues related to forming a conceptual tourism product for the effective development of territories without a pronounced tourist and recreational potential. As is known, the territory that does not have a pronounced tourist and recreational potential is a geographical area; according to some attributes, it is mono profile, peripheral, depressed, and crisis. Such an area does not have a full set of tourist and recreational potential. In this area, it is necessary to develop tourism activities for a more effective socio-economic development of the region. This definition is associated with the notion of the components of tourist and recreational potential as components of a complex and open system, which differs in its origin and the distinctive feature of the functional purpose in the implementation and organization of tourist activity. The paper aims to develop a concept that would contribute to the effective promotion of tourist products in areas with no pronounced tourist and recreational potential.

• Demographic problem—the migration of young people to big cities; • Insufficient development of the socio-cultural environment and a rather low level of engineering and infrastructure facilities (Burnyasheva, 2009).

The research methodology is defined by fundamental works of Russian and foreign scientists, discussing the problems of regional economic activity, the specific features of the tourist product development, marketing and branding issues, and the concept of promotion of the tourist product. The research also uses the method of system approach, analysis, synthesis, expert evaluations, the method of modeling, and the index method.

The most important factor for developing such a scenario is the presence of the necessary tourist and recreational potential of the territory. As shown by the territorial analysis, the tourism potential of the studied regions is very high. However, this potential is reduced by factors such as lack of information and undeveloped infrastructure that is not adapted to the needs of tourists (Burnyasheva & Gazgireeva, 2011). The tourist product of territories that do not have a pronounced tourist and recreational potential is currently weak and undefined (Ushakov et al., 1995). We believe that the basis for its creation should be the formation of conceptual tourism and recreational product, which will help attract the necessary and sustainable tourist flows to the regions. Today’s society is overloaded with information. Therefore, advertising a new tourist product in areas that do not have a pronounced tourist and recreational potential will be ineffective without a comprehensive approach (Burnyasheva & Gazgireeva, 2016). Currently, the market is overloaded with a large selection of tourist products. Thus, the PR of a new name must be distinctive and have distinctive structural elements, approaches, and techniques. Every region and every tourist product need a unique approach; it is necessary to transform the conceptual tourist product into a sustainable brand of the future (Kim et al., 2009). Thus, this concept is suitable for promoting the tourist product in a territory that does not have a pronounced tourist and recreational potential.

3

4

2

Materials and Methods

Results

Currently, the development of tourism activities in the region is of great importance for the well-being of the labor force and increasing the economic level. However, the territories where the tourist and recreational potential is not clearly expressed may face the following problems in the implementation of this scenario: • Limited economic basis; • Often disadvantageous positions in attracting investment programs; • Financial constraints in attracting qualified personnel (outside experts, specialists in territorial marketing and branding, etc.); • Depreciation of fixed assets of enterprises and their technological backwardness;

Discussion

This case study shows that many Russian regions are taking a serious approach to develop tourism, thus contributing to the development of their territory and replenishing the budget. To achieve this goal, various programs for short and long periods are developed, tourist brands are also created, promotional activities are carried out, exhibitions and other events are organized and held, etc. In our opinion, the most promising Russian regions in terms of expected opportunities for the development of conceptual tourist products are Nizhny Novgorod Region, Bryansk Region, Ivanovo Region, and Astrakhan Region. These regions are related to the territories where the tourist and recreational potential is weakly expressed. The experience accumulated over the past decades in the Russian society shows that many regions make mistakes in

Formation of a Conceptual Tourist Product for the Effective Development …

promoting the tourism product. For example, some activities do not interact with each other and do not have the desired effect. In reality, the process of creating and promoting a tourist product must be systemic to provide tourists with a finished product successfully. In this case, it means that tourists should not independently build the concept of a single tourist product and image of the destination based on separately extracted knowledge (Kulgachev et al., 2020). Thus, the question arises: “Why should the creation and promotion of the tourist product be based on a system of steps and actions, and not on single elements and actions?” In answering this question, there are a number of valid points to be made, including the following: 1. Protection against the competition, which is a system of consistent actions in the creation, positioning, and promotion of a branded product. There is often copying of websites, logos, and some individual slogans; similar events are held as in other regions. To prevent such actions, it is necessary to create a conceptual tourist product with its own individual system, where there will be a relationship between the individual complementary elements and procedures arising from each other. 2. A certain system of promotion of the tourist product will help save time, applied efforts, and funds for implementing the ideas, concepts, and standards provided. 3. The proposed system, designed to promote the tourism product, will protect against those employees who show unfair attitudes, thereby providing insurance for regional or municipal leaders from the loss of the already existing developments if the dismissal of specialists in the field occurs. Additionally, it will be easier for business people, partners, experts, and consumers to fill out documents with the same definite form. Uniform color schemes and symbols will help recognize a particular region, and when entering the hotel, the guest will have to get reliable reference information (Leksin & Shvetsov, 2001). This can be achieved by applying a system of measures and standards that are created deliberately but in no way appear at random. Destinations must now achieve the kind of result that many organizations have been achieving for years through marketing strategic planning, where plans are determined for the long term based on consumer demands and the resources that are already available in the territory. This strategic planning will help identify the tourist and recreational potential of the territory, a tourist product that should be developed, and a segment that should be targeted in the creation and promotion of the tourist product (Schmitt, 2001). Based on the available practical experience in developing regional tourism activities, documents containing these

525

issues may have different names, such as strategy, concept, or development plan. The main essence of such a document is a single coordinating system that will promote the tourism product of the territory. Despite the productivity of research on such issues as the creation and promotion of the tourist product, the development of tourist and recreational potential of the territory, and the creation of the image of the territory, tourism is not always studied as a scenario for the social and economic development of the territories. There was no systemic activity to create a branded tourist product for the territory until now. This provision determines the relevance of developing an algorithm designed to promote the tourist product in the areas without a pronounced tourist and recreational potential. Let us present a step-by-step algorithm, thus outlining the recommendations necessary to form and implement the concept of promotion of tourist products in those areas that have no pronounced tourist and recreational potential: • Step 1. Gathering necessary primary information. Information about a particular city, its landmarks, and surroundings; statistics on inbound tourism; investment resources; information on events held in the city; information about famous or well-known personalities; brief information about existing businesses and institutions in the city; photos and videos: coat of arms, the flag of the city; regulatory documents (Word, Excel, or PDF); information on tourism for the previous two or three years. • Step 2. Setting strategic goals and objectives necessary to promote the conceptual tourism product. Support for the promotion of local producers; preservation of uniqueness, originality, and cultural values; creation of organizational structure; construction and repair of facilities; modernization of infrastructure; creation of a conceptual tourist product; promotion of the territory through this. • Step 3. Show projected results and limitations: providing the promotion results of the tourism product. Quantitative and qualitative indicators formulated by the administration staff; description of the intended target groups: a preliminary description of the target groups; identification of funding sources and costs: identification of funds needed for additional involvement; formation of a team or structure to carry out project activities and assignment of responsibilities to individual areas. • Step 4. Development of the components of the conceptual tourist product. Development and creation of the image of the territory or objects of tourist display; creation of a conceptual tourist product and development of its brand; creation of standards; development of distinctive features peculiar to a particular territory that contribute to

526

•

•

•

•

•

supporting the brand of the conceptual tourist product; development of a system of proposals. Step 5. Development of a program and plan to promote the conceptual tourist product. Defining a strategic plan for the promotion of the tourist product; designation of stages for the implementation of planning, detailing the criteria for evaluating the effectiveness of the built strategy; development of a schedule of activities at the local, regional, federal, and international levels; creating a system of representation of the territory; definition of primary and secondary advertising media; development of measures to monitor the implementation of the indicated strategy. Step 6. Development of a system of interaction with the authorities and businesses located in the territory to promote the conceptual tourist product. Interaction with regional authorities; cooperation with the press service to provide access to already available information about the tourist area; cooperation with the heads and owners of organizations and institutions that create jobs in large numbers; interaction with organizations and institutions that are involved in the tourism industry, trade, transport, communications, and media; interaction with sports and cultural institutions. Step 7. Creating the infrastructure to promote the conceptual tourist product. Creating a system that is engaged in transmitting information and receiving feedback: the transfer of information by employees of the press service, PR department, organizational work to promote newly created sites; creating databases and providing access to them; organization of reference service; organization of regulatory and legal support activities for more effective implementation of the strategy: preparation of regulatory documents and its coordination; financial support for the implementation of strategic plans and objectives; economic support of the implementation of strategic plans and objectives. Step 8. Implementation of a promotion strategy for the conceptual tourist product. Preparation and implementation of various activities aimed at developing the territory for a more comfortable level of living; implementation of activities that increase the level of safety of the territory; implementation of activities that contribute to job creation; organization of leisure activities for people living in the territory and tourists; preparation and distribution of proposals for databases among target groups; implementation of activities with representatives of target groups and different categories of residents of the territory; preparation and distribution of promotional and informational products; preparation and implementation of specially designed projects according to the schedule. Step 9. Organization of control over the implementation of the activities presented in the territory promotion strategy.

L. A. Burnyasheva et al.

Thus, it can be argued that the presented steps of the algorithm are combined into several stages of the methodology, which must be performed in sequential order. The method is designed to form a promotional strategy for the conceptual tourist product. The methodology is also designed to introduce tourist products into the tourist infrastructure of the territory without a pronounced tourist and recreational potential. The initial preparatory stage, designed to form a strategy for promoting the tourist product in areas without a pronounced tourist and recreational potential, provides for effective socio-economic development of the region. At this stage, it is necessary to determine the choice of specialists so that the initial analysis is carried out professionally. The second stage aims to competently determine the expected results and conduct professional research, considering many factors that will determine further ideas to create a conceptual tourist product of the territory (the third stage). The fourth stage is conditioned by the basic meaning and appears to be a preparatory stage for forming an effective promotion strategy for the tourist product (the fifth stage). The main block of this stage will be the creation of a sustainable system for cooperation between the authorities and outside organizations (e.g., city-forming enterprises, small businesses, professional educational institutions, and cultural and sports organizations). The final block of the last stage of the proposed algorithm of sequential actions includes the activities aimed at creating and implementing a strategy to promote conceptual tourism products in the territory without a pronounced tourist and recreational potential, designed for the long term.

5

Conclusion

As a result of the study, it should be concluded that this algorithm is designed to create and implement a strategy to promote the conceptual tourism product. It should be recommended to municipal and regional authorities to reorient the economic direction, bring it to a new level, stimulate tourism, attract investment in the region, and independently form a conceptual tourist product and attract tourists through various businesses.

References Burnyasheva, L. A. (2009). Traditional and innovative in the context of social and philosophical discourse. Stavropol. Burnyasheva, L. A., & Gazgireeva, L. K. (2011). Spiritual crisis of axiological foundations: Social and philosophical discourse of the problem. Science Prospects, 2(17), 52–56. Burnyasheva, L. A., & Gazgireeva, L. K. (2016). To the question of the formation of the tourism cluster as a basis for the development of

Formation of a Conceptual Tourist Product for the Effective Development … special economic zones. Bulletin of the North Ossetian State University Named after k. l. Khetagurov, 3, 161–165. Gureeva, M. A. (2011). Economic problems of single-industry towns in the context of the global financial crisis. Bulletin of the Russian New University, 2, 37–44. Kim, S. S., McKercher, B., & Lee, H. (2009). Tracking tourism destination image perception. Annals of Tourism Research, 36(4), 715–718. https://doi.org/10.1016/j.annals.2009.04.007 Kulgachev, I. P., Kosolapov, A. B., Savinkina, L. A., Dracheva, E. L., & Babakhanova, I. B. (2020). Russian hotel chains: Formation and development trends. Journal of Environmental Management and Tourism, 11(2), 290–298. https://doi.org/10.14505//jemt.v11.2 (42).07

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Leksin, V. N., & Shvetsov, A. N. (2001). All-Russian reforms and territorial development. Depression territories: Old problems and new options for solving them. Russian Economic Journal, 9, 18–22. Schmitt, B. (2001). Experiential marketing: How to get customers to sense, feel, think, act, relate (K. Tkachenko, Trans. from English). FAIR-PRESS (Original work published 2000). Turgel, I. (2010). Monofunctional cities in Russia: From survival to sustainable development. UrAPS. Ushakov, D. S., Smirnyagin, L. V., & Bykov, G. V. (1995). About the program of assistance to depressed regions. Regionology, 3, 32–37. Zakharenko, G. N. (2015). Tourism potential of a regional destination and the effectiveness of its use in the tourism industry (Dissertation of Candidate of Economic Sciences). St. Petersburg University.

Sustainable and Advanced Development of Region’s Economy Based on Digital Competitiveness Nizami S. Askerov , Farida S. Tsinpaeva , Zarema M. Abdullaeva , Tamila D. Alikerimova , and Gadzhi K. Kurbanov

Abstract

1

We analyse the possibilities to use modern digital solutions in the regional development of countries (in the increase in sustainable development and growth of economic indicators). The research is based on the assessment of the impact of the designated parameters of digital competitiveness on the advanced dynamics of the economy and implementation of the UN SDGs in developed countries. This influence was considered from 2020 to 2021, which allows determining the effect of the use of the studied ICT in the fight against the consequences of the pandemic. The results obtained demonstrated the effectiveness of using digital solutions in regional development and showed that the achievement of such indicators is possible under the condition of attracting the government, local authorities, businesses and society to the selection of the directions of digitalisation and implementation of ICT. The results obtained allow expanding the substantiation of the possibility to use given ICT tools in countries with various levels of economic development, including developing countries. Keywords

Digitalisation development

..

. .

Digital solutions Sustainable E-commerce ICT tools

JEL Classification

O18

. . . . O31

O47

P25

R11

N. S. Askerov (&) . F. S. Tsinpaeva . Z. M. Abdullaeva . T. D. Alikerimova . G. K. Kurbanov Dagestan State University (DSU), Makhachkala, Russia e-mail: [email protected] T. D. Alikerimova e-mail: [email protected]

Introduction

Regional development influences the state of the national economy. Countries with a large difference between regions’ functioning do not demonstrate highly advanced or sustainable development. This is a significant problem under the conditions of the reduction of financial potential, which is connected with the influence of the global crisis. Resolution of regional problems, caused by economic underrun and risks of sustainable development, requires the implementation of effective solutions in the sphere of industrial and financial sectors, tourist sphere, construction and other infrastructural sectors. Such solutions at the modern stage of society formation are implemented with the help of digital technologies. Countries that demonstrate a high level of international integration are oriented toward an increase in digital competitiveness at the national and regional levels.

2

Materials and Method

Digital competitiveness, as a phenomenon of national development, has been considered by researchers in the context of the optimisation of the methodology of evaluation of World Digital Competitiveness (IMD, 2022b). These scientific works include (Laitsou et al., 2020; Stankovic et al., 2021; Wahyuningtyas et al., 2021). Despite the substantiation of the methodological provision on the assessment of digital competitiveness, we use a traditional approach, which is used by IMD (2022a). Attention should be paid to the scientific and empirical studies of the issues of the influence of the competitive positions of regions’ infrastructures on the level of the economy and sustainable development of territories and countries. These issues have been studied by Dannenberg et al. (2020); Dubois and Sielker (2022) and Eckert et al., (2021). Though modern science demonstrates a thorough elaboration of the given issues, there is a need for

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_103

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systematisation of the specific features of the connection between digitalisation and sustainable development and advanced rates of growth of regions’ economies. In this research, the method of formalisation allows presenting separate characteristics of the influence of digital technologies on the regional development of countries, as a certain system. The statistical method allows determining statistical characteristics of the digital economy, sustainable development and advanced development. The index method is used to present the values of the indices of the assessed indicators of digital competitiveness, sustainable development and advanced development (an indicator of the economy’s growth rates).

3

Results

Let us present the values of the competitive positions of digitalisation implementation (World Digital Competitiveness Index (WDC), Sustainable development Index (SDI) and Economic Performance Index (EPI) (Table 1). Characteristics of the regional specifics of the impact of digital competitiveness on sustainability and advanced development of the region’s economy are provided for countries that demonstrated high competitive positions on one or several indices of the given indicators. During the selection of countries, we also evaluated the fact of economic decentralisation at the regional level. Based on a list of the countries of the studied category, we evaluate the specifics of the dependence between the three estimate indicators.

Table 1 Indicators WDC, SDI and EPI for the selected countries in 2020–2021

Countries

Analysis of the data (Table 1) shows that high positive dependence of the influence of the growth of competitive positions in the implementation of ICT on the improvement of the level of achievement of UN SDGs and advanced development is observed in the following countries: (1) Sweden. Improvement of competitiveness in the sphere of digital provision by 1 position (3rd position in 2021), improvement of the level of sustainable development (from 3rd to 2nd position in 2021) and advanced transformations in the economy (22nd to 16th position). The data of the scientific and practical studies (Dubois & Sielker, 2022) showed that in south Lapland (a mountainous region of Sweden) there has been an improvement in digital provision in the last ten years. The improvements were observed also in the sphere of entrepreneurship in telemedicine, transport and care for people who require medical and consultation help. The necessity to solve the problems of digitalisation of a sparsely populated region of South Lapland, in which 30% of people are not able-bodied and have a low level of mobility, was connected with the need to create favourable conditions for SMEs and a focus on the attraction of investments. The main tools of ICT in this region that allowed raising the effectiveness of the activities of the entrepreneurial sector in the social sphere and the corresponding infrastructures were virtual medical offices with new equipment and software (using the latest medical technological solutions, AI and the Internet); development of 5G on the entire territory of the region (Dubois & Sielker, 2022). Implementation of these ICT tools allowed raising the

WDC, rank 2020

SDI, rank 2021

2020

EPI, rank 2021

2020

2021

Sweden

4

3

3

2

22

16

Singapore

2

5

60

76

3

1

Switzerland

6

6

8

16

18

7

Norway

9

9

4

7

30

25

UAE

14

10

85

71

4

9

8

12

27

28

27

18

Canada

12

13

29

21

10

14

United Kingdom

13

14

11

17

24

26

China

16

15

56

57

7

4

Israel

19

17

49

38

39

36

Germany

18

18

6

4

5

3

Ireland

20

19

9

13

12

22

Australia

15

20

38

35

23

19

Korea Rep

Source Developed by the authors based on IMD (2022a, 2022b), Sustainable Development Report (2022)

Sustainable and Advanced Development of Region’s Economy Based on Digital Competitiveness

led to an increase in the demand for digital products (services) in this district’s IT sector. This led to an improvement in the employment of Israel’s population from other regions, especially in the sector of e-commerce and software development (Haifaaliyah, 2022). This was accompanied by the growth of the region’s GDP and improvement in the achievement of SDG 1, SDG 8 and SDG 9.

region’s GDP by 11.5% in 2012–2020. GDP per capita was EUR 35,000 in 20,212 and EUR 39,012 in 2020 (Stat.fi, 2022). Improvement of medicine (implementation of virtual medical services) and an increase in the level of ICT in the region allowed for an increase in the able-bodied population and advanced growth of GDP. (1) Similarly to Sweden, Germany has traditions of decentralised economic management of regions. Attention should be paid to the modern experience of implementing ICT in western states of Germany from 2020 to 2021. The need for social distancing, which appeared due to COVID-19, led to the wide use of such tools of ICT as online trade of most food products and consumer goods; electronic sales of insurance products (Eckert et al., 2021), bank products (services), educational services and products (Dannenberg et al., 2020). Growth of electronic sales of food products was observed mainly in Berlin and Hamburg and cities of western states with a population above 500,000 people. This led to the growth of the GDP of these regions due to an increase in purchases compared to similar periods of previous years. An increase in the digitalisation of trade, service sphere, financial & insurance and educational spheres led to the growth of the regions’ economies, with the growth of the level of e-commerce of various categories. For example, as a result of 2021, Hamburg was able to increase its GDP to EUR 126,710 million, which is 7.5% higher than in 2020 and 1.7% higher than in 2019 (pre-pandemic period). This was largely due to the mass implementation of e-commerce and the growth of consumption. Apart from the achievement of advanced regional economic development, the implementation of the studies tool of ICT (e-commerce) allowed implementing of a range of Sustainable Development Goals (SDG 9, SDG 8 and SDG 16). (2) Israel’s regional digitalisation development is connected with the quick growth of productiveness and demand for digital services in the northern regions of the country. It is necessary to point out the Haifa District, where the main innovative and technological centres, which ensure the main export of digital products (services) of the country, are located. In 2020– 2021, the growth of export of digital products (services) equalled 50–52% of the entire national export, the main part of which accounted for the sector of the economy of the Haifa District. Before the pandemic, the digital economy accounted for 15% of the country’s export. The growing demand for the use of digital solutions in various sectors of the economy (including agriculture)

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Discussion

We were able to discover a positive effect of the growth of the region’s digital competitiveness on the advanced growth of their economy and regional sustainable development. We think that the following tools and measures of digitalisation could be adopted in developing countries: • Creation of favourable conditions for entrepreneurship development in the sphere of telemedicine and services for the population based on medical prescriptions may facilitate the increase in the level of the population’s health, creation of new jobs, improvement of infrastructure and increase in GDP in subsidised regions. The creation of virtual medical offices based on trade companies may also impact the growth of trade turnover, connected with the increase in the number of customers and possible attraction of patients’ attention to goods that are presented in trade centres. Further expansion of Internet coverage and improvement of the sphere of healthcare are a measure of the attraction of remotely employed population to relocate to sparsely populated regions, which ultimately will influence the stabilisation of the sustainable development of the country’s territories; • Implementation of the projects of development of e-commerce of the combined type (combination of delivery of the goods from Internet stores and international trade platforms) allows attracting more consumers and increasing sales volumes and employment level. Implementation of such projects may be effective under the conditions of a developing economy, in regions that are located far from international transport arteries (reduction of logistics costs through a larger volume of deliveries will allow reducing delivery costs for retail consumers). The example of the growth of GDP in Hamburg in the period of the fight against the pandemic’s consequences showed that the possibility to purchase any type of products remotely leads to an increase in sales volumes. Mass deliveries of products of all categories allow increasing the sales volumes;

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• Creation of modern innovative regional centres (the example of Israel) allows providing domestic employment for the population from other regions in the sphere of creation and maintenance of ICT, which are exported to the international market.

5

Conclusion

We have determined the following directions for implementing ICT in regions of developing countries, which would stimulate an increase in the advanced development of regions’ economies. The effectiveness of the implementation of such measures requires, first of all, the achievement of public–private partnerships and coordination with the local community. Such direction as virtualisation of medical services will allow raising the level of the local population’s involvement with the work in the sphere of healthcare and accompanying infrastructures. Implementation of e-commerce will have a good effect in regions which population has stable income (even below average), certain skills with the Internet and Internet access. This will allow increasing turnovers and revenues of national manufacturers and trade companies. The attraction of foreign trade partners to work at the level of national online trade platforms will allow raising the level of employment and population’s income and ensuring the development of underdeveloped regions. A public–private partnership could be used to create innovative centres of development in subsidised regions, which will allow for the growth of the territories’ intellectual capital and ensure an increase in export and employment.

References Cambridge University Press. (2022). Sustainable development report. https://dashboards.sdgindex.org/rankings. Accessed: October 21, 2022. Dannenberg, P., Fuchs, M., Riedler, T., & Wiedemann, C. (2020). Digital transition by COVID-19 pandemic? The German food online retail. Tijdschrift Voor Economische En Sociale Geografie, 111(3), 543–560. Dubois, A., & Sielker, F. (2022). Digitalization in sparsely populated areas: Between place-based practices and the smart region agenda. Regional Studies, 56(10), 1771–1782. https://doi.org/10.1080/0034 3404.2022.2035707 Eckert, C., Eckert, J., & Zitzmann, A. (2021). The status quo of digital transformation in insurance sales: An empirical analysis of the german insurance industry. ZVersWiss, 110, 133–155. https://doi. org/10.1007/s12297-021-00507-y Haifaaliyah. (2022). High tech. https://www.imd.org/centers/worldcompetitiveness-center/rankings/world-competitiveness/ Accessed: October 21, 2022. IMD. (2022a). Economic performance ranking. https://www.imd.org/ centers/world-competitiveness-center/rankings/worldcompetitiveness/ Accessed: October 21, 2022a. IMD. (2022b). World digital competitiveness ranking. https://www. imd.org/centers/world-competitiveness-center/rankings/worlddigital-competitiveness/ Accessed: October 21, 2022b. Laitsou, E., Kargas, A., & Varoutas, D. (2020). Digital competitiveness in the European Union era: The Greek case. Economies, 8(4), 85. https://doi.org/10.3390/economies8040085 Stankovic, J. J., Marjanovic, I., Drezgic, S., & Popovic, Z. (2021). The digital competitiveness of European countries: A multiple-criteria approach. Journal of Competitiveness, 13(2), 117–134. https://doi. org/10.7441/joc.2021.02.07 Stat.fi. (2022). National economy. In Finland in figures is an information package about Finland and Finns. https://www.stat.fi/tup/suoluk/ suoluk_kansantalous_en.html. Accessed: October 21, 2022. Wahyuningtyas, R., Alamsyah, A., & Diliana, N. A. (2021). Mapping digital talent based on competency using social network analysis. In 2021 2nd International Conference on ICT for Rural Development (IC-ICTRuDev), pp. 1–5. https://doi.org/10.1109/IC-ICTRuDev 50538.2021.9656521

Regional Aspects of the Development of the Consumer Lending Sector in Russia During the Pandemic Sergey S. Moiseev , Rustam I. Khanseviarov , Natalia P. Nazarchuk , Nataliya V. Telminova , and Albert I. Sadykov

pandemic on the consumer lending sector. The research proposes a set of state policy measures that contribute to the restoration of economic activity in the regions after the COVID-19 pandemic and the resolution of emerging problems in the field of consumer lending.

Abstract

The research aims to analyze trends in the development of the consumer lending sector in the Russian regions, identifying its specifics during the COVID-19 pandemic and substantiating the directions of state support for the sector to ensure prospective growth. The authors analyzed the dynamics of the development of the consumer lending sector in Russia and its regions in 2010–2020. The authors concluded that the overall positive dynamics of the development of the consumer lending sector in 2020 with a growth rate of unsecured consumer loans of 9%. The authors explain the growth dynamics by a decrease in lending rates to the population, which had a favorable effect on the creditworthiness of borrowers, the activation of consumer demand, and the stabilization of the macroeconomic situation after banks reduced the issuance of new loans. The research identifies changes in consumer behavior during the COVID-19 pandemic and determines the corresponding structural shifts in the Russian consumer lending sector. In particular, the change in the structure of consumer lending during the COVID-19 pandemic is associated with an increase in POS loans due to an increase in online stores that meet consumer demand during the isolation period, as well as a reduction in cash and credit card loans. The authors have determined the regional specifics of the impact of the COVID-19 S. S. Moiseev (&) G.R. Derzhavin Tambov State University, Tambov, Russia e-mail: [email protected] R. I. Khanseviarov Samara State University of Economics, Samara, Russia N. P. Nazarchuk Tambov State Technical University, Tambov, Russia N. V. Telminova Moscow University for Industry and Finance “Synergy”, Moscow, Russia A. I. Sadykov Russian University of Transport, Moscow, Russia

Keywords

..

.

.

. .

Lending Consumer lending Unsecured lending Region Pandemic Government regulation Pandemic crisis JEL Classification

E52

1

. . O11

R11

Introduction

The COVID-19 pandemic was the turning point that defined a new vector of many phenomena. Living conditions have changed. People have begun to distance themselves from each other. The nature of labor relations and forms of education have been transformed. Remote work and distant learning have proven their effectiveness in the conditions of sanitary restrictions and have taken a worthy place in today’s society. People and their values and consumer preferences have changed (Karpunina et al., 2022). Various areas of activity and sectors of the economy were forced to adapt to the occurred changes. There have been structural shifts in the industry, public services, the education system, the financial sector, and a breakthrough in the field of digital technologies (Fraymovich et al., 2022; Isaeva et al., 2022; Podorova-Anikina et al., 2022). The area of consumer lending has not been left aside. Until the end of 2019, consumer lending was the fastest-growing market segment. Against the background of a gradual reduction in rates on the banking market, consumer

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_104

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lending has become increasingly attractive to credit institutions. The reason for this was its higher marginality, while customer demand for credit products was due to the gradual realization of deferred consumption accumulated from 2014 to 2016, in the absence of an increase in the level of real disposable incomes of the population. In the second half of 2019, the rapid growth of the population’s creditworthiness forced the Bank of Russia to take several measures to curb the dynamics of new loans. The COVID-19 pandemic that began in March 2020 and uncertainty about the financial condition of potential borrowers became another reason for banks to change their credit policy (Yakushkina et al., 2020). On the other hand, in a period of acute uncertainty about the prospects for economic development and their own incomes, people prefer not to increase the credit burden. Therefore, the demand for consumer loans decreased at the beginning of the pandemic. However, the further course of the pandemic and the absence of general sanitary restrictions contributed to the normalization of the state in the consumer lending market (Business.ru., 2021). Since the availability of credit for the population is an important factor contributing to the recovery of economic activity after the shock, it is necessary to diagnose emerging problems in this area for the timely response of the regional authorities and the implementation of appropriate support measures.

2

Literature Review

The authors understand consumer credit as a loan provided by a credit institution to citizens (households) for the purchase of goods (works, services) for personal, household, and other non-productive needs (Lavrushin, 2016). Three components can be distinguished in the structure of the consumer lending segment: unsecured cash loans, unsecured loans issued at retail outlets (POS-lending), and lending using bank cards (Balyasova et al., 2019). From the standpoint of economics, the topic of consumer lending is covered in the works of Dolan et al. (1996), Lavrushin (2016), Mayorova (2017), Medvedev (2015), Shatalova (2021), and Starostina (2016). The authors reveal the theoretical aspects of consumer lending, identify the specifics and patterns of the consumer lending market, and define the boundaries of consumer credit. In particular, Shatalova (2021) describes the relationship of credit boundaries with trust and with the final productive nature of consumer credit. A number of Russian authors note the peculiarities of the development of consumer lending in Russia: the massive nature and high consumer demand, the increase in overdue loans, and specific methods of managing problematic consumer loans. Research attention is attracted by the transformation of the credit policy of banks, which

reduce the level of requirements for lending to the population to increase the volume of consumer loans (Avdeeva & Kulakova, 2019), as well as measures implemented by the Central Bank to stabilize the consumer lending market in Russia (Guryanov, 2020). Herkenhoff et al. (2021) pay attention to assessing the impact of access to consumer loans on self-employment and entrepreneurial activity of the population. The authors empirically prove that there is a positive relationship between the availability of consumer credit and the number of self-employed people and individual entrepreneurs. Chintal Ajitbhai (2017) verifies the validity of the market model for assessing the risk of consumer lending, the unemployment rate, and changes in nominal income. The COVID-19 pandemic created a high level of uncertainty and unpredictability of long-term development, which affected the nature of decisions made by the banking system and consumers. Separate publications, for example, by Kosov and Rogova (2021), Korostelkina and Voronkova (2020), and Vlasova et al. (2021) are devoted to the study of the impact of pandemic manifestations on the sector of consumer lending in Russia.

3

Methodology

The research aims to analyze the trends in the development of the consumer lending sector in the Russian regions, identify its specifics during the COVID-19 pandemic, and determine the directions of state support for the sector to ensure promising growth. The research objectives are as follows: 1. To establish the dynamics of the development of the consumer lending sector in Russia; 2. To determine the impact of the COVID-19 pandemic on the consumer lending sector and identify regional specifics; 3. To form recommendations on implementing state policy aimed at supporting the consumer lending sector. The research methods include theoretical analysis, comparative analysis, method of graphical representation of results, systematization, economic and statistical analysis, and systemic approach.

4

Results

The development of the consumer lending sector in Russia up to 2014 was characterized by high positive dynamics. However, in the subsequent stages, the growth of consumer lending slowed down (Kryukov, 2016) (Fig. 1).

Fig. 1 The volume of consumer loans granted in the Russian Federation, million rubles, 2010–2019. Central Bank of Russian Federation Source Compiled by the authors based on (2020)

535

4000000

2610921

7210282

8778163

8629722 5861351

6000000

3649100

8000000

5438651

10000000

7226423

12000000

9233726

14000000

12456050

Regional Aspects of the Development of the Consumer Lending Sector in Russia During the Pandemic

2000000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The dynamics of consumer lending volumes can be explained by the implemented monetary policy of the Central Bank of Russia. In 2014, the key rate decreased from 17 to 7.75%, which led to a reduction in the cost of credit resources and the achievement of the maximum volume of consumer lending over the previous five years. Then there began a period of decline in lending volumes caused by the events of 2014, the imposition of sanctions, and the subsequent financial crisis (including job cuts and a decrease in real incomes of the population), which affected the creditworthiness of borrowers. Thus, in 2016, there was a decline of more than 30% compared to 2014. Since 2017, the rapid growth of unsecured consumer lending has been relaunched. The reason was the delayed demand of the population related to a decrease in interest rates on loans to the pre-crisis level and a prolonged increase in real disposable incomes of the population. This growth has long been of a restorative nature and has provided significant support to economic growth. Banks have maintained high lending standards, and the credit quality of generations of loans in recent years has remained high. The maximum value of the volume of consumer loans granted was reached in 2019. The Arkhangelsk Region became the leading region in terms of the volume of consumer loans provided, where the amount of consumer credit in the first three months of 2019 increased by 90.3% and reached 165,190 rubles. Also, high growth rates of Table 1 The volume of unsecured consumer loans in Russia in 2020

consumer lending during this period are characteristic of the Vologda Region (loan size increased by 67.2%), Belgorod Region (growth by 57.4%), Vladimir Region (growth by 52.2%), and Lipetsk Region (growth by 39.6%) (Peredelsky, 2019). In 2019, the provision of loans by banks was characterized by selectivity in terms of preference for borrowers with a good credit history and a higher income level of economically active age who resort to consumer loans to pay for more expensive goods and services. In the pandemic year 2020, the Russian consumer lending market showed positive development dynamics (Table 1). According to Table 1, in 2020, the growth rate of unsecured consumer loans in Russia amounted to 9%. A slight decrease was observed in the second quarter of 2020 as a result of the time restrictions imposed due to the outbreak of the COVID-19 pandemic. During the quarantine, part of the population has revised their purchasing habits, switching to conscious consumption (Karpunina et al., 2022). Simultaneously, more and more people began to move towards a savings model because the pandemic clearly demonstrated the need for a financial “cushion.” Then the positive trend continued. In general, the dynamics of growth are explained by a decrease in lending rates to the population, which had a favorable effect on the creditworthiness of borrowers and the activation of consumer demand. Additionally, there was an increase in risk appetite by banks against the background of

Period

Volume of unsecured consumer loans, billion rubles

Annual growth rate (%)

January 2020

8926

1

April 2020

9234

4

July 2020

9104

2

October 2020

9450

6

January 2021

9707

9

Source Compiled by the authors based on Belchenko et al. (2021)

536

stabilization of the macroeconomic situation after banks reduced the issuance of new loans in the second quarter of 2020. The measures taken by the regulator to support consumer lending during the period of declining issuance volumes due to the pandemic stimulated the market to resume growth (Belchenko et al., 2021; Central Bank of Russian Federation, 2021b). According to the level of penetration of consumer lending (without credit cards), that is, the ratio of the number of borrowers in the region to the number of permanent residents at the beginning of the calendar year, the leading regions of 2020 can be identified: the Republic of Altay (26.5%), the Irkutsk Region (23.7%), the Magadan Region (23.5%), the Republic of Kalmykia (23.5%), the Amur Region (23.2%), and Trans-Baikal Territory (23.2%). Consumer lending was least widespread in the Ingushetia Republic (5.6%), the Republic of Crimea (5.8%), the Republic of Dagestan (6.2%), Moscow (12.1%), and Sevastopol (12.9%) (Balyasova et al., 2019). Let us consider the changes in the ratio of the structural components of the consumer lending segment in 2017–2020 (Fig. 2). In 2017–2019, cash loans showed the greatest growth among the segments of the consumer lending market; their share in the total portfolio of consumer loans increased from 72% in 2017 to 74.4% in 2019. There was a reduction in the credit card segment from 23.6% in 2017 to 21.7% in 2019. This is due to the advantages of cash loans over credit cards, consisting of a larger check and lower interest rates. The share of POS loans in the total portfolio of consumer loans decreased by 9.3%, which was the result of the popularization of installment cards and credit cards with more acceptable credit conditions for consumers (Balyasova et al., 2019). The pandemic year 2020 has made certain adjustments to the ratio of structural components of the consumer lending market in Russia: the share of cash loans in the total portfolio of consumer loans decreased to 73.25% (−1.5% compared to the same period in 2019), the credit card segment decreased to 20.6% (−5% compared to 2019), and the share of POS loans in the total portfolio of consumer loans

S. S. Moiseev et al.

increased 1.6 times compared to 2019 and amounted to 6.2%. The main driver of POS lending growth is the intensive increase in the number of online stores and the pandemic-related consumer interest in online shopping. In 2016, the volume of online sales amounted to 900 million rubles. In turn, in 2020, it has already reached 2.7 billion rubles and showed an increase of 59% (Galitsky, 2021). Moscow and the Moscow region, St. Petersburg and the Leningrad Region, the Rostov Region, the Samara Region, and the Sverdlovsk Region are the leaders among the regions in terms of the number of applications for POS loans. This is due to the specifics of online lending and is directly related to people’s habits of actively using online services and making online purchases (Newsrambler, 2021). The problem area of the Russian segment of consumer lending has always been the presence of a debt burden and its growth. The aggregate level of the debt burden of the population in 2010–2014 gradually increased, and the maximum of 10.4% was reached in 2014 when the real disposable incomes of the population fell by 2.3% in annual terms. In 2016–2017, the debt burden of the Russian population at the macro-level (i.e., the ratio of payments of the population on loans to the income of the entire population) remained stable. During this period, the growth of debt was compensated by a reduction in consumer loan rates. However, since 2017, there has been an accelerated increase in the debt burden of the population: for example, the share of households with outstanding loans in 2017 was 34%, in 2018—38%, in 2019—44% (of which 32% make payments on consumer loans) (Central Bank of Russian Federation, 2019). To avoid increasing the burden on the banking system, the Bank of Russia has introduced additional raised surcharges for loans issued to borrowers with an already accumulated debt load (Central Bank of Russian Federation, 2019). Even though there was a decrease in the share of overdue debt in 2017–2019 (from 7.0% to 5.4%), the cost of risk on consumer loans increased from 6.3% in 2017 to 6.9% in 2019 (Balyasova et al., 2019). This fact is an early indicator of deterioration in the quality of loans.

Fig. 2 Changes in the ratio of structural components of the consumer lending segment in Russia, %, 2017–2020. Source Compiled by the authors based on Balyasova et al. (2019), Belchenko et al. (2021)

Regional Aspects of the Development of the Consumer Lending Sector in Russia During the Pandemic

In 2020, the highest indebtedness on consumer loans (without credit cards) (i.e., the ratio of the average amount of debt per borrower in the region to the average monthly income in the region for the previous period) was characteristic of the Republic of Tuva (18.3%), the KarachayevoChirkassian Republic (14.7%), the Republic of Kalmykia (14.1%), and the Republic of Ingushetia (13.2%) (Central Bank of Russian Federation, 2021a). However, if we take the “Credit Health Index” indicator for analyzing the debt burden of the population in the regions of the Russian Federation (it shows the overdue debt of the population that has been delinquent on loans for more than 60 days over the past six months), then the situation looks very optimistic (Table 2). One can notice a sharp decline in the credit health index in the regions of Russia in the crisis year 2014. However, until 2015, two regions of the country – the Central Federal District and the Northwestern Federal District – maintained high values of the indicator. Then, until the end of 2019, the recovery stage was underway. The values of the index in 2020 allow us to conclude that the COVID-19 pandemic did not have the same strong impact on the solvency of the population of the regions of the Russian Federation as the crisis of 2014. In 2020, all regions of Russia (except the North Caucasus Federal District) saw an increase in the credit health index (the maximum growth of 7% in the Far Eastern Federal District, the maximum index value was reached in the Central Federal District (102)). The situation in the North Caucasus Federal District is specific to this region of the country. Here, the Ingushetia Republic, the Dagestan Republic, and the Krasnodar region contributed to the formation of the current negative trend, where shadow and gray employment of the population in the sectors of trade and services and mass work in other regions of the

537

country are widespread. Additionally, in the pandemic year 2020, the tourist sector of the Black Sea coast of the Caucasus was compressed (Medzhidov, 2021), which affected the solvency of the population and its ability to service its own loans. Internal risks are always associated with the accumulation of excessive debt burden, which acts as a brake on economic growth and can lead, among other things, to social problems. Nevertheless, the availability of consumer credit for the population is an important factor contributing to the recovery of economic activity after the pandemic crisis. Therefore, we consider it necessary to determine the directions of state support for the consumer lending sector to ensure its future growth. These directions are as follows: 1 Development of programs for refinancing the credit debt of the population by reducing the interest rate, and combining loans. 2 Introduction of special deferral programs for loan payments for a fixed period to restore the economic activity of borrowers and increase their solvency. 3 During the pandemic, the share of overdue debt remained fairly stable, and part of the debt was restructured due to a decrease in the level of borrowers’ incomes and difficulties with servicing obligations. In this regard, it is advisable to support the chosen vector of monetary policy and soft regulation of credit risk on consumer loans. 4 Since the growth rate of consumer lending is determined by the scale of sanitary restrictions to prevent the development of a pandemic, the efforts of the state and the regions should be aimed at maintaining overall socio-economic stability and stimulating entrepreneurial activity of the population, preventing the introduction of new total lockdowns that block the economic activity of

Table 2 The index of credit health of the population in the regions of Russia in 2010–2020 Period/Region

Central Federal District

Northwestern Federal District

Volga Federal District

North Caucasus Federal District

Southern Federal District

Siberian Federal District

Ural Federal District

Far Eastern Federal District

2010

111

112

108

115

109

110

107

118

2011

115

116

112

118

113

115

111

120

2012

113

113

112

108

110

110

108

111

2013

104

104

104

95

99

99

98

100

2014

101

100

99

89

93

94

93

97

2015

93

93

91

84

86

85

89

88

2016

96

96

93

86

88

85

89

90

2017

97

95

94

88

90

85

90

89

2018

98

96

96

91

92

86

92

90

2019

97

95

94

90

91

85

91

89

2020

102

100

99

89

96

92

96

96

Source Compiled by the authors according toKoshkina (2021)

538

S. S. Moiseev et al.

enterprises and lead to a collapse in the labor market, and, therefore, a decrease in the solvency of the population. 5 Implementation of the digitalization strategy of credit institutions for the development of online services that cover all customer needs (opening an account, the possibility of obtaining a loan, payment for services); creation of reliable remote customer service channels (including tools for receiving feedback and evaluating customer knowledge about services); development of credit products that do not require paper registration. Implementation of a system of personal offers to clients based on the analysis of their transactional activity using artificial intelligence technologies. 6 Launch of regional programs to increase the financial and digital literacy of the population to ensure consumers’ access to digital platforms of credit institutions, as well as to increase their awareness of credit products and trust in service organizations.

5

Conclusion

First, the analysis of the development of the consumer lending sector in the regions of Russia allowed the authors to conclude about the overall positive dynamics of the sector development during the COVID-19 pandemic. The reasons that ensured the growth of the consumer lending sector against the background of the destabilization of the socio-economic situation during the pandemic crisis have been identified. The regional features of the development of the consumer lending market during the pandemic are determined. Second, the authors systematized the changes that occurred in consumer behavior during the COVID-19 pandemic and substantiated the reasons for structural shifts in the consumer lending sector. Third, the authors have formed a set of state policy measures to restore economic activity in the regions in the post-pandemic period and maintain the stable development of the consumer lending sector in Russia.

References Avdeeva, V. I., & Kulakova, N. N. (2019). Consumer lending in Russia in modern economic conditions. Bulletin of the Altai Academy of Economics and Law, 9(2), 5–11. https://doi.org/10.17513/vaael.713 Balyasova, K., Kozhekina, L. & Saraev, A. (2019, October 03). Overview of the consumer lending market following the results of the 1st half of 2019: Hidden threat. RA Expert. Retrieved from https://raexpert.ru/researches/banks/potrebcred_1h2019/. Accessed March 21, 2022.

Belchenko, L., Mikhlina, Y., & Verolaynen, A. (2021, October 12). Securitization of consumer loans: How is packaging better? RA Expert. Retrieved from https://raexpert.ru/researches/banks/ potrebcred_2021/. Accessed March 21, 2022. Business.ru. (2021, January 20). Banks in 2020 issued 26% less consumer loans than a year earlier. Retrieved from https://www. business.ru/news/21304-banki-v-2020-godu-vydali-na-26-menshepotrebkreditov-chem-godom-ranee. Accessed March 21, 2022. Central Bank of Russian Federation. (2019). Accelerated growth of consumer loans in the structure of bank lending: Causes, risks, and measures of the Bank of Russia. Moscow, Russia: Bank of Russia. https://cbr.ru/Content/Document/File/72621/ Retrieved from 20190628_dfs.pdf. Accessed March 21, 2022. Central Bank of Russian Federation. (2020). Information on loans granted to individuals as of January 1, 2020. Retrieved from https:// cbr.ru/statistics/pdko/f316/f316-info/?fdate=202001®n=1481. Accessed March 21, 2022. Central Bank of Russian Federation. (2021a). Analysis of trends in the retail lending segment based on data from credit bureaus. Retrieved from https://cbr.ru/Collection/Collection/File/39669/inf-material_ bki_2021fh.pdf. Accessed March 21, 2022. Central Bank of Russian Federation. (2021b). Review of the banking sector of the Russian Federation, 2021b. Retrieved from https://cbr. ru/analytics/bank_sector/. Accessed March 21, 2022. Chintal Ajitbhai, D. (2017). The cross-section of consumer lending risk. Journal of Empirical Finance, 42, 256–282. https://doi.org/10. 1016/j.jempfin.2017.04.004 Dolan, E. J., Campbell, K. J., & Campbell, R. J. (1996). In V. Lukashevich (Transl. from English; and Ed.). Money, banking and Monetary Policy: A textbook. Russian-American University, Gattisburg College (Original work published 1988). Fraymovich, D., Konovalova, M., Roshchektaeva, U., Karpunina, E., & Avagyan, G. (2022) Designing mechanisms for ensuring the economic security of regions: Countering the challenges of instability. In E. G. Popkova, A. A. Polukhin, & J. V. Ragulina (Eds.), Towards an increased security: Green innovations, intellectual property protection and information security (pp. 569–581). Springer. https://doi.org/10.1007/978-3-030-93155-1_63 Galitsky, Kh. (2021, November 26). Air loans: Bankers record a rapid increase in the issuance of POS loans online. Izvestia. Retrieved from https://iz.ru/1255635/margarita-surikova/vozdushnye-zaimybankiry-fiksiruiut-stremitelnyi-rost-vydach-pos-kreditov-onlain. Accessed March 21, 2022. Guryanov, M. M. (2020). Consumer lending in Russia: Problems and prospects. Young Scientist, 5(295), 104–106. Herkenhoff, K., Phillips, G., & Cohen-Cole, E. (2021). The impact of consumer credit access on self-employment and entrepreneurship. Journal of Financial Economics, 141(1), 345–371. https://doi. org/10.1016/j.jfineco.2021.03.004 Isaeva, E., Fedotova, E., Nazarova, I., Tishchenko, E., & Iljina, L. (2022) Analysis of the Fintech segment in the Russian financial services market. In V. Ostrovskaya, & A. V. Bogoviz (Eds.), Big Data in the GovTech system. Springer. Karpunina, E., Ruzhanskaya, N., Podorova-Anikina, O., Zubareva, N., & Luchaninov, R. (2022). Transformation of consumer behavior during the COVID-19 pandemic. In E. G. Popkova, & B. S. Sergi (Eds.), Geo-economy of the future: Sustainable agriculture and alternative energy. Springer. Korostelkina, I. A., & Voronkova, N. V. (2020). Problems of consumer lending at the present stage of financial market development. In Proceedings of the III International Scientific and Practical Conference Sergiev Readings on the Topic: Russia’s Path to the Future World Order (pp. 283–290). Orel, Russia.

Regional Aspects of the Development of the Consumer Lending Sector in Russia During the Pandemic Koshkina, Yu. (2021, February 17). Credit health index. RBC. Retrieved from https://www.rbc.ru/finances/17/02/2020/5e4699fc 9a794753f9b23176. Accessed March 21, 2022. Kosov, M. E., & Rogova, T. M. (2021). Issues and trends of the consumer lending. Bulletin of the Moscow University of the Ministry of Internal Affairs of Russia, 1, 296–305. https://doi.org/10.24412/ 2073-0454-2021-1-296-305 Kryukov, R. V. (2016). Banking and lending. A-Prior. Lavrushin, O. I. (2016). The evolution of the theory of credit and its use in modern economics. KNORUS. Mayorova, L. V. (2017). The analysis of the current state of consumer crediting in Russian Federation and improvement of work of banks with natural persons. Economics and Management: Problems, Solutions, 3(6), 206–209. Medvedev, P. A. (2015). The macroeconomic effect of consumer lending. Money and Finance, 1, 13–14. Medzhidov, Z. U. (2021). Influence of new coronavirus infection on the unemployed in the North Caucasian Federal District. Bulletin of Chelyabinsk State University, 3(449), 126–134. https://doi.org/10. 47475/1994-2796-2021-10314 Newsrambler. (2021). With the help of POS-lending from Sberbank, Russians buy gadgets and acquire knowledge. Retrieved from https://news.rambler.ru/gadgets/46248457/?utm_content=news_ media&utm_medium=read_more&utm_source=copylink. Accessed March 21, 2022.

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Peredelsky, D. (2019, April 23). Regions that have the amount of consumer credit increased. Rossiyskaya Gazeta. Retrieved from https://rg.ru/2019/04/23/reg-szfo/v-kakih-regionah-vyrosla-summapotrebitelskogo-kredita.html. Accessed March 21, 2022. Podorova-Anikina, O., Karpunina, E., Gukasyan, Z., Nazarchuk, N., & Perekatieva, T. (2022). E-Commerce market: intensification of development during the pandemic. In E. G. Popkova (Ed.), Imitation market modeling in digital economy: Game theoretic approaches (pp. 363–373). Springer. https://doi.org/10.1007/978-3030-93244-2_40 Shatalova, E. P. (2021). On some problems of consumer credit boundaries: Analysis based on the theory of credit by Professor O I. Lavrushin. Financial Markets and Banks, 11, 93–96. Starostina, S. A. (2016). A role of personal loans in economic growth. Finance and Credit, 39, 17–27. Vlasova, Yu. A., Gerzelieva, Zh. I., & Rogova, T. M. (2021). Features of the development of consumer lending in a pandemic on the example of ZENIT Bank. Finance and Management, 4, 68–82. Yakushkina, K., Korshunov, R., & Saraev, A. (2020, October 15). Consumer lending market overview based on the results of the 1st half of 2020: “Tired of quarantine.” RA Expert. Retrieved from https://raexpert.ru/researches/banks/potrebcred_1h2020/. Accessed March 21, 2022.

Methodological Aspects for Assessing the Financial Stability of Regions in the Context of the Coronavirus COVID-19 in 2021 Nadezhda I. Yashina , Olga I. Kuryleva , Anastasia O. Egorova , Nadezhda E. Gilts , and Maksim M. Kutepov

Abstract

Keywords

The purpose of the study is to develop methodological tools for assessing the financial stability of regions in the context of the COVID-19 coronavirus. The study was carried out using the methods of economic analysis, mathematical statistics and others. The methodological toolkit was tested on the data of the Federal Treasury of Russia for 2021, the Federal State Statistics Service of the Russian Federation. The authors of the methodological tools proposed in the article for assessing the financial stability of Russian regions to budgetary stresses believe that the methodology will allow developing financial strategies for Russian regions in order to financially ensure high standards of the quality of life of the population. Results and conclusions. The results of assessing the financial stability of regions in the context of the COVID-19 coronavirus based on complex normalized indicators make it possible to classify regions with a high, satisfactory and minimum level of risk of implementing state financial policies that ensure human development, the main components of which are longevity, education and per capita GDP.

Performance evaluation Rating of regions of the Russian Federation Comprehensive standardized indicator Value-oriented budget strategy

N. I. Yashina (&) National Research Lobachevsky State University of Nizhny Novgorod, Nizhny Novgorod, Russia e-mail: [email protected] O. I. Kuryleva . A. O. Egorova . M. M. Kutepov Minin Nizhny Novgorod State Pedagogical University, Nizhny Novgorod, Russia e-mail: [email protected] M. M. Kutepov e-mail: [email protected] N. E. Gilts Reshetnev Siberian State University of Science and Technology, Krasnoyarsk, Russia

. .

.

JEL Classification

H61

1

. . . H7

R11

L5

Introduction

The methodological toolkit for diagnosing the financial stability of regions in the context of the COVID-19 coronavirus is based on the method of standardizing indicators that reflect the groups of fulfillment of obligations by taxpayers, the use of budget expenditures, characterizing the potential capabilities of the authorities to ensure the implementation of a value-oriented approach in managing public finances, in which the achievement of the goal is assessed from the standpoint of universal values such as truth, goodness, socially and personally significant values—life (Aganbegyan, 2019; Aganbegyan et al., 2020; Bondarenko, 2020; Dawid et al., 2018; Federal State Statistics Service [Electronic resource], 2022; Federal Tax Service [Electronic resource], 2022; Ministry of Finance of the Nizhny Novgorod region [Electronic resource], 2022; Ministry of Finance of the Russian Federation [Electronic resource], 2022; Shpakova, 2019; Treasury & [Electronic resource]., 2022).

2

Methodology

The first stage includes a budget analysis of data from the Russian Treasury. We consider it expedient to determine the signs of manifestation of budgetary stress (Bondarenko, 2020; Dawid

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_105

541

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N. I. Yashina et al.

et al., 2018; Kuzenkova, 2021; Pechenskaya-Polishchuk, 2021; Vaganova et al., 2020; Yashin et al., 2018; Yashina et al., 2018): • uncertainty about the implementation of budget indicators; • asymmetry of the revenue part of the budget; • asymmetry of the expenditure side of the budget; • “stability of budget revenues”: preference for financial assistance and minimization of borrowings; • “Stability of budget expenditures”: preference for financing socially significant and priority expenditures, as well as expenditures on the socio-cultural sphere. The algorithm for assessing the budgetary stresses of the regions includes the following steps: • collection of information to determine the budgetary stresses of the regions; • assessment of the reliability of information to determine the budgetary stresses of the regions;

Table 1 The system of budget coefficients that characterize the financial stability to the budget stresses of the regions

Designation

• processing of information to determine the budgetary stresses of the regions: analytical tables and aggregated forms of budget reporting; • formation and calculation of budgetary coefficients characterizing budgetary stresses in the regions; • comparative analysis of the values of budget coefficients with conditionally reference and average regional values for the period under review; • preparation of a conclusion on the stability of the functioning of public finances based on the results of assessing the budgetary stresses of the regions. The authors propose to form a system of coefficients for the structure of income, a system of coefficients for expenditures and a system of coefficients for the provision of financing to achieve the goal and direct results of the implementation of national projects and government programs. The information for the formation of the coefficient system is based on the reporting data on the execution of the consolidated budgets for 2021 and includes data on income groups, subgroups and expense sections by functional classification (Table 1).

Name

Calculation practice

Interpretation

D1

Index of Independence

Share of own income in the region

Maximum

D2

The indicator of tax revenues from the economy

The share of income tax, personal income tax, property taxes in own revenues of the consolidated budget

Maximum

D3

Entrepreneurship indicator

Share of proceeds from special tax regimes in consolidated budget revenues

Maximum

D4

Financial solvency indicator

The ratio of own income and financial assistance

Maximum

R1

Management expenses indicator

The share of expenses for the maintenance of the administrative apparatus

Minimum

R2

Interest expense ratio

Share of interest expenses in the budget

Minimum

R3

Outreach Policy Indicator

The share of expenditures on health care, education, culture, cinematography, physical education, social policy in budget expenditures

Maximum

R4

Operating cost indicator

The share of expenditures on housing and communal services and the national economy

Maximum

DR1

The indicator of the security of financing expenses for the socio-cultural sphere with own income

The ratio of tax and non-tax revenues to the amount of funding for education, culture, cinematography, physical culture and sports, social policy

Maximum

DR2

The indicator of the security of financing expenses for the socio-cultural sphere with income taxes that form a regional product

The ratio of income taxes to the amount of funding for education, culture, cinematography, physical culture and sports, social policy

Maximum

Source Compiled by the authors

Methodological Aspects for Assessing the Financial Stability …

543

The second stage is the standardization of indicators from 0 to 1 according to formulas (1) and (2). The first group is the maximization of budget coefficients that characterize budget stresses in the regions: BSR*ij ¼

BSRimax - BSRij : BSRimax - BSRimin

ð1Þ

The second group is the minimization of budgetary coefficients that characterize budgetary stresses in the regions: BSR*ij

BSRij - BSRimin ¼ ; BSRimax - BSRimin

ð2Þ

where BSRij—is the actual value and BSR*ij —is the standardized value of the i-th budget coefficient in the j-th region, BSRimax —is the largest and BSRimin —is the smallest calculated value of the i-th budget coefficient among the regions. At the third stage, a complex standardized budget coefficient (KBSRstj )—is determined according to formula (3).

KBSRstj ¼

n X i¼1

BSR*ij

ð3Þ

The best result characterizing the adaptation of the public finances of the regions is the region with the lowest value of the complex standardized coefficient KBSRstj .

3

Results

The results of budget stress assessment calculations for indicators proposed on the basis of the composition and structure of income and expenditure are presented in Table 2. The rating shows that regions with large industrial potential are more resilient to financial stress caused by both the pandemic and financial sanctions, and other domestic and external influences. Moreover, even with increasing borrowing, budget-sustainable regions effectively manage debt. In order to improve the budgetary and tax policy, it is important to diversify the distribution of the composition and

Table 2 Rating of regions in terms of financial stability to budget stresses Regions

D1st

D2st

D3st

D4st

DR1st

DR2st

R1st

R2st

R3st

R4st

KBSRstj

Yamalo-Nenets Autonomous Okrug

0.004

0.002

0.171

0.041

0.104

0.985

0.555

0.465

0.555

0.465

3.346

1

Khanty-Mansi Autonomous Okrug– Yugra

0.019

0.075

0.475

0.171

0.246

0.976

0.280

0.788

0.280

0.788

3.851

2

Score by KBSRstj

Saint Petersburg

0.344

0.150

0.837

0.284

0.010

0.939

0.296

0.708

0.296

0.708

3.944

3

Moscow city

0.027

0.170

0.854

0.226

0.026

0.749

0.634

0.371

0.634

0.371

4.062

4

Leningrad region

0.047

0.167

0.663

0.346

0.064

0.985

0.375

0.675

0.375

0.675

4.375

6

Sakhalin region

0.019

0.322

0.902

0.174

0.065

0.985

0.560

0.455

0.560

0.455

4.498

9

Rostov region

0.258

0.305

0.747

0.788

0.231

0.985

0.179

0.826

0.179

0.826

5.326

23

Voronezh region

0.278

0.291

0.746

0.805

0.184

0.991

0.268

0.751

0.268

0.751

5.331

25

Perm region

0.264

0.263

0.784

0.794

0.325

0.989

0.337

0.662

0.337

0.662

5.417

29

Chelyabinsk region

0.277

0.212

0.823

0.804

0.337

0.985

0.167

0.826

0.167

0.826

5.421

30

Yaroslavl region

0.224

0.374

0.795

0.755

0.198

0.995

0.274

0.767

0.274

0.767

5.421

31

Vologodskaya Oblast

0.306

0.300

0.700

0.825

0.267

0.994

0.332

0.687

0.332

0.687

5.430

32

Nizhny Novgorod Region

0.247

0.283

0.827

0.779

0.246

0.985

0.265

0.800

0.265

0.800

5.497

37

Smolensk region

0.296

0.342

0.786

0.818

0.262

0.997

0.348

0.693

0.348

0.693

5.581

43

Ryazan Oblast

0.305

0.328

0.762

0.824

0.279

0.996

0.292

0.756

0.292

0.756

5.592

44

Arhangelsk region

0.382

0.323

0.810

0.869

0.446

0.995

0.281

0.742

0.281

0.742

5.869

54

Udmurt republic

0.370

0.304

0.834

0.863

0.451

0.995

0.184

0.845

0.184

0.845

5.875

55

Republic of Bashkortostan

0.375

0.456

0.848

0.865

0.446

0.988

0.266

0.749

0.266

0.749

6.008

59

The Republic of Mordovia

0.500

0.628

0.871

0.915

0.447

0.998

0.302

0.784

0.302

0.784

6.531

79

The Republic of Buryatia

0.684

0.299

0.891

0.959

0.675

0.997

0.151

0.863

0.151

0.863

6.533

80

Mari El Republic

0.593

0.486

0.886

0.940

0.567

0.999

0.358

0.678

0.358

0.678

6.543

81

Republic of Kalmykia

0.678

0.432

0.849

0.958

0.702

1.000

0.275

0.716

0.275

0.716

6.600

83

Source Compiled by the author

544

N. I. Yashina et al.

structure of income by the levels of the budgetary system according to the well-known criteria of mobility, evenness of the distribution of the tax base, efficiency, and others. Similarly, cost optimization should be taken into account both in terms of functionality and economic content. Column designations: 1. (KBSRstj )—a comprehensive standardized budget ratio showing financial resilience to budgetary stresses in the regions; 2. (Бaлл пo KBSRstj )—scoring based on a comprehensive standardized budget ratio that shows financial resilience to budgetary stresses in the regions.

the region, as well as financing the socio-cultural sphere, the basis of which is the implementation of national projects and state programs, allows you to develop financial strategies for the constituent entities of Russia in order to financially ensure high standards of quality of life for the population in the country and in situations of global economic crises, and during financial sanctions, and during a pandemic. Acknowledgements The study was carried out within the framework of the Strategic Academic Leadership Program “Priority 2030” of the Ministry of Education and Science of the Russian Federation, project N-426-99-2022-2023 “Socio-economic models and technologies for the development of creative human capital in an innovative society”.

References Based on the rating, we single out regions with a low level of budgetary stress (the first level of resistance to budgetary stresses). These are the Yamalo-Nenets Autonomous Okrug, the Khanty-Mansi Autonomous Okrug–Yugra, St. Petersburg, Moscow, the Tyumen Region, the Leningrad Region and others. A satisfactory level of budget stress (the second level of resistance to budget stress) was shown by: Sverdlovsk Region, Republic of Tatarstan, Samara Region, Nenets Autonomous Okrug, Perm Territory, Nizhny Novgorod Region and others. The Karachay-Cherkess Republic, the KabardinoBalkarian Republic, the Republic of Tyva, the Republic of Ingushetia and others are characterized by a high level of budgetary stress. Positive factors in the development of public finances for three years: Growth of the National Welfare Fund; Growth in non-oil and gas revenues: corporate income tax, tax on additional income from hydrocarbon production, personal income tax in connection with the collection of income from deposits and the collection by increasing the rate on income over five million rubles from 13 to 15%; Low level of public debt—19% of GDP. External public debt of the Russian Federation from 65 to 62.6 billion dollars, which is approximately 4%. The state internal debt of the Russian Federation as of 01.01.2022 amounted to 16.5 trillion.

4

Conclusion

The authors of the proposed methodological tools for assessing the financial stability of Russian regions to budget stresses believe that the methodology based on the author's approach of including budget coefficients in the system of indicators characterizing the development of the economy in

Aganbegyan, A. G., Klepach, A. N., & Porfiryev, B. N. et al. (2020). Post-pandemic recovery: The Russian economy and the transition to sustainable social and economic development. Studies on Russian economic development (Vol. 31. pp. 599–605). https://doi.org/10. 1134/S1075700720060027. Data accessed March 20, 2022. Aganbegyan, A. G. (2019). On immediate actions to reinvigorate social and economic growth. Studies on Russian Economic Development., 30, 1–9. https://doi.org/10.1134/S1075700719010027 Bondarenko, T. G. (2020). Comparative analysis of implementation targets of national projects in developed countries managing socio-economic indicators in Russia (Vol. 25. №. Esp. 5., pp. 370– 378). Utopia y Praxis Latinoamericana. https://doi.org/10.5281/ zenodo.3984269. Data accessed March 20, 2022. Dawid, H., Harting, P., & Neugart, M. (2018). Fiscal transfers and regional economic growth. Review of International Economics, 26(3), 651–671. https://doi.org/10.1111/roie.12317. Data accessed March 20, 2022. Federal Tax Service [Electronic resource]. (2022). Access mode https:// www.nalog.ru/. Data accessed March 20, 2022. Federal State Statistics Service [Electronic resource]. (2022). Access mode https://rosstat.gov.ru/. Data accessed March 20, 2022. Kuzenkova, V. M. (2021). Effective development institutions. Public Administration Issues, 5(Special issue I). 161–175. https://doi.org/ 10.17323/1999-5431-2021-0-5-161-175. Ministry of Finance of the Nizhny Novgorod Region [Electronic resource]. (2022). Access mode http://mf.nnov.ru/. Data accessed March 20, 2022. Ministry of Finance of the Russian Federation [Electronic resource]. (2022). Access mode https://www.minfin.ru/ru/. Data accessed March 20, 2022. Pechenskaya-Polishchuk, M. A. (2021). Trends in attracting resources to the budgets of regional centers. Journal of the New Economy., 22 (1), 90–104. https://doi.org/10.29141/2658-5081-2020-22-1-5 Shpakova, R. N. (2019). General goals of the strategic development of the regions of the Russian Federation. Electronic Bulletin, 2019(77), 311–336. https://doi.org/10.24411/2070-1381-2019-10030 Federal Treasury [Electronic resource]. (2022). Access mode https:// roskazna.gov.ru/ispolnenie-byudzhetov/. Data accessed March 20, 2022. Vaganova, O., Konshina, L., Polevoy, I., Palashenkov, B., & Sizyoongo, M. (2020). Implementation of national projects as the main instrument for increasing the economic growth of Russia. In Proceedings of the 8th International Conference on Contemporary Problems in the Development of Economic, Financial and Credit

Methodological Aspects for Assessing the Financial Stability … Systems (DEFCS 2020) (Vol. 157. pp. 270–274). https://doi.org/10. 2991/aebmr.k.201215.057. Yashin, S. N., Yashina, N. I., Pronchatova-Rubtsova, N. N., & Kashina, O. I. (2018). Methodical approaches to assessing the budget potential of the region taking into account the innovative development of high-tech industries. In European Financial Systems 2018. Proceedings of the 15th International Scientific Conference (pp. 849–856). Masaryk University, Brno.

545 Yashina, N. I., Petrov, S. S., Pronchatova-Rubtsova N. N., & Kashina, O. I. (2018). Methodical approaches to the formation of model budgets in order to improve the effectiveness of the budget process in Russia. In European Financial Systems 2018. Proceedings of the 15th International Scientific Conference (pp. 857–864). Masaryk University, Brno.

Development of the Nuclear Icebreaker Fleet as a Strategic Priority of the Arctic Region Nadezhda L. Rogaleva , Larisa B. Nyurenberger , Maxim V. Pristavka , Nikita E. Petrenko , and Lyubov E. Venyaminova

Abstract

JEL Classification

The article considers the development of the nuclear icebreaking fleet (Selin and Kozmenko, Marine Collection 4:39–43, 2015) as a strategic priority of the Arctic region, reflects the features and technical characteristics of icebreakers of the Arktika class as guideposts for the strategic development of the region. The previous and modern experience of using icebreakers in the conditions of the Arctic region is considered. Comparative technical characteristics of nuclear icebreakers of various classes of the USSR and projects of icebreakers of the Russian Federation of the LK-60YA and LK-110YA series of the Russian Federation are presented. Some aspects of the development of the icebreaking fleet of the USSR and the Russian Federation are reviewed, the current situation of the nuclear fleet is considered from the position of the strategic priority of the Arctic region.

F 01

Keywords

. . .

..

Arctic The Northern Sea Route Logistics infrastructure Nuclear icebreakers Technical characteristics Strategic priority

N. L. Rogaleva (&) . L. E. Venyaminova Kamchatka Branch of the Russian University of Cooperation, Petropavlovsk-Kamchatsky, Russia e-mail: [email protected] L. E. Venyaminova e-mail: [email protected] L. B. Nyurenberger . N. E. Petrenko Novosibirsk State University of Economics and Management, Novosibirsk, Russia e-mail: [email protected] N. E. Petrenko e-mail: [email protected] M. V. Pristavka LLC Altair, Krasnodar, Russia e-mail: [email protected]

1

.

N 70

.

O 18

.

R 12

.

R 58

Introduction

The emergence of the Russian nuclear icebreaker fleet is a complex and multi-stage process of succession of engineering, technical and political decisions that took place over a long period stretching over more than a century. The formation and subsequent development of the icebreaker fleet was largely preceded by the development of the Arctic region, in particular, the formation of the logistics infrastructure of the Northern Sea Route. Features of navigation in the Arctic region, in terms of ensuring effective cargo turnover, it is impossible without icebreaker assistance, which affects the development of the Arctic region and, as a result, is one of its landmarks of strategic transformation. The historical aspect of the formation of the Russian icebreaking fleet in the context of the study of the development of the Arctic is of particular research interest and requires detailed analysis.

2

Methodology

The first in the world, the prototype of modern icebreaker-class vessels was the wooden icebreaker City Ice Boat No.1 built in 1837 in Philadelphia, its purpose was to clean ice in the harbor (Timoshenko, 2013). The technical and operational characteristics of City Ice Boat No.1 at the time of its construction were revolutionary, the engineering solutions implemented in the project served as a starting point for the construction of similar vessels in many countries of the world (Timoshenko, 2013). Of course, by modern standards, the technical characteristics of the first icebreaker were incomparable with modern

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_106

547

548

analogues, but the very fact of the possibility of building ice-class ships became a prerequisite for the emergence of an ice fleet. The first icebreaker in Russia was the steam icebreaker Pilot, built in 1864, after the introduction of a number of technical changes to the design of the bow, it was operated for its intended purpose until 1880. The operation of the Pilot showed significant advantages of ice-class vessels in comparison with conventional vessels and marked the beginning of the construction of a responsible icebreaker fleet. So in 1896 by order of the administration of the Ryazan-Ural Railway Company, the English firm “Armstrong Whitworth” built the Saratov icebreaker. In 1899 the icebreaker Baikal was launched, a year later the icebreaker Angara was created (Destiny is to be the first. Anniversary year of the icebreaker “Lenin”, 2014). Icebreaking vessels built at the end of the XX century were mainly river ships, i.e. they were used to ensure safe waterways across the Volga River and to ensure the operation of the railway crossing over Lake Baikal in winter (Destiny is to be the first. Anniversary year of the icebreaker “Lenin”, 2014). The Arctic icebreaker Ermak, built by an English contractor in 1898, became the first-born icebreaker of the Arctic fleet, the second ice-class vessel was the icebreaker Svyatogor, built at the shipyard of the same company Armstrong Whitworth in 1917 (Destiny is to be the first. Anniversary year of the icebreaker “Lenin”, 2014). In a later period, from the end of 1917, the construction of domestic icebreakers underwent a long stagnation, and only by the middle of 1930 separate attempts were made to systematize the accumulated experience of operation and construction of Arctic-class ice vessels. However, in many respects these attempts were unsuccessful, numerous engineering, technical, financial and, not least, political obstacles caused by the formation of the USSR as a socialist state significantly slowed the development of domestic shipbuilding. A new round of the scientific and technological progress gave an impetus for the development of domestic shipbuilding in the field of construction of icebreaker-class vessels, to a greater extent this influence was expressed in the emergence of technological and engineering solutions allowing the use of a new type of energy, i.e. nuclear propulsion for of ships. Awareness of the potential of nuclear energy on the part of the USSR leadership and the emergence of new, available technologies, combined with the increasing importance of the Arctic region in the geopolitical aspect for the country, resulted in a shift of emphasis towards the creation of a new nuclear icebreaker fleet. So on November 20, 1953, the Council of Ministers of the USSR adopted Resolution No. 2840–1203 “On the

N. L. Rogaleva et al.

development of the world’s first nuclear icebreaker designed for use in the Arctic”, and on August 18, 1954, the Council of Ministers of the USSR, by its Resolution, specified the task of creating an atomic icebreaker with respect to the time limits, stages and main performers of the work (Timoshenko, 2013). The result of the updated shipbuilding policy of the USSR was the construction of the world’s first nuclear-powered icebreaker Lenin. The engineering solutions implemented during the creation of Lenin formed the basis for the further line of nuclear icebreakers, the nuclear plant set on Lenin, developed by the Central Design Bureau headed by I.I. Afrikantov and chief designer V.I. Neganov, was ahead of its time for many decades. Less than four years later, in 1957, the nuclear icebreaker Lenin was launched, and after the completion of state tests in 1959, it was put into operation as part of the Murmansk State Arctic Shipping Company (since 1967 – Murmansk Shipping Company), which was subordinate to the Ministry of Maritime and River Fleet of the USSR (Timoshenko, 2013). Icebreaker Lenin during its life cycle in 1959–1989 independently conducted more than of 3741 vessels, was held over 654,400 nautical miles, 560,600 of them in ice, participated in 26 navigations and set many records (Timoshenko, 2013). The most significant achievement of Lenin in the context of the integrated development of the Arctic region was the first navigation in the Arctic extended for the winter months in 1970. The results of navigation in 1970 made it possible to scientifically substantiate and experimentally prove the prospects of conducting transport vessels in the western region of the Arctic along the Northern Sea Route in late autumn and early winter. The relevance of the data obtained in the context of the development of mining and processing industries in the Northern region, in particular the Norilsk Mining and Metallurgical Combine, is beyond doubt. It was the industrial aspect that subsequently caused a significant increase in cargo turnover along the Northern Sea Route and economically justified the commissioning of new nuclear icebreakers necessary to meet growing needs. In 1971, the first ultra-long high-latitude through voyage of the nuclear icebreaker Lenin in the Arctic marked the beginning of transit cargo transportation along the entire route of the Northern Sea Route with the provision of transport vessels in high latitudes by nuclear-powered ships (Russian Shipbuilding News, 2021). It is also necessary to note the contribution of Lenin to the formation of modern ideas about the logistics potential of the Northern Sea Route in terms of the development of unique transport and logistics schemes for the maritime delivery of supplies for the exploration, development and operation of oil and gas fields in Yamal (Mikhailov, 2015).

Development of the Nuclear Icebreaker Fleet as a Strategic Priority of the Arctic Region

The experience of working with a nuclear power plant accumulated during the operation of the Lenin, the organized training of personnel for its operation, the technical capabilities and achievements of the latter predetermined the appearance of new vessels of the nuclear icebreaker fleet in many ways. Engineering solutions implemented during the construction of Lenin, especially in terms of the design and operation of nuclear power plants by 1967, allowed the creation of a new generation nuclear plant OK-900 (Mikhailov, 2015). The OK-900 nuclear installation had a great impact on the development of the shipbuilding industry and led to the large-scale design and construction of the USSR nuclear icebreaker fleet, interrupted only in the 90 s of the XX century. In the period from 1974–1990, the icebreaking fleet of the USSR occupied a dominant position in the world and was an important strategic element in the country’s state policy. During this period, the icebreaker fleet consisted of 14 vessels, seven nuclear icebreakers and seven diesel-electric icebreakers. Arktika class icebreakers (project 10520), nuclear-powered ships of the second generation constitute (were) the main base of the domestic nuclear icebreaker fleet and are considered one of the largest, most powerful and versatile vessels of their class (their design assumes the potential of converting icebreakers into battle cruisers). The main task of icebreakers of this class is direct icebreaking along the Northern Sea Route (Molchanov et al., 2011). The Arktika-class icebreakers dominated the USSR Arctic nuclear fleet, five vessels were built and commissioned: the icebreaker Siberia, the icebreaker Russia, the icebreaker 50 Years of Victory, the icebreaker Yamal and the icebreaker Soviet Union (Molchanov et al., 2011). The Taimyr class icebreakers (Project 10580) are represented by a series of two nuclear icebreakers, Taimyr and Vaigach (named after the research vessels of the same name of the Russian Imperial Navy) (Oskirko, 2017). Icebreakers of this class have a smaller draft and are designed mainly for guiding ships to the mouths of Siberian rivers, have a nuclear power plant based on the KLT-40M reactor. The vessels were built at the shipyard “Holstrom Histalahti” of the concern Wärtsilä Oyj Abp “Värtsilä Marine Equipment” in Helsinki (Finland) from Russian iron and using domestic technologies (Oskirko, 2017). One of the main tasks of the Taimyr-class icebreakers was to escort ships along the Northern Sea Route during the transportation of metal from Norilsk and escort cargo ships with wood and ore from vlg. Igarka to vlg. Dixon (Oskirko, 2017). According to the information of the Northern Sea Route Administration, 10 linear, 6 nuclear and 4 diesel icebreakers are currently operating on the Northern Sea Route, the

549

technical characteristics of which largely lag behind the requirements of the time. There are only four nuclear icebreakers in service that have actually exhausted their resources. Taking into account the constant and intensive operation of ice-class vessels, the capabilities of the latter have a significant impact on the development of the Arctic Transport Corridor and the region as a whole.

3

Results

To date, the quality of Russian icebreaking shipping as a whole does not cause complaints from domestic and foreign customers, except for the duration of the waiting period for icebreakers, but this is only a lull, since the lack of growth potential of the modern ice fleet casts doubt on the main advantages of the Northern Sea Route, i.e. reduction of voyage time and operating costs (Selin & Kozmenko, 2015). The strategic advantage acquired during the Soviet era— the possession of the world’s only icebreaking Arctic fleet in modern conditions is becoming a tactical failure of the Russian Federation. Steps have been taken to expand and modernize the Arctic icebreaking fleet, the construction of three newgeneration universal nuclear icebreakers of the LK-60YA and LK-110YA series, but these projects of the Rosatomflot Group have relative efficiency, the vessels have not yet been built and commissioned, they are currently at different stages of design and construction (Vasiliev & Selin, 2013). Rosatomflot is based on the vague position of the official authorities in solving the issues of the development of the nuclear fleet, and only plans further, and plans, as time shows, remain only plans (programs similar in intensity to the construction of facilities during the USSR are needed), modern shipbuilding counts decades for the construction of new icebreakers, their testing and commissioning, but there are actually no icebreakers (Dzhunusova, 2010). New nuclear icebreakers of the LK-60YA and LK-110YA series in the future may change the competitive position of the Northern Sea Route as an alternative to The Suez Route in terms of technical security of the Arctic Fleet. The design technical characteristics of the Rosatomflot nuclear icebreakers will not significantly exceed the USSR Arktik class nuclear icebreakers qualitatively, the potential effect can only be expressed quantitatively. The new generation LK-60YA and LK-110YA nuclear icebreakers, according to official statements of Rosatomflot, should surpass and/or replace one Arktik class icebreaker and one Taimyr class icebreaker (Selin & Kozmenko, 2015). If these performance characteristics are achieved, the new icebreakers will be able to open the Northern Sea Route for year-round commercial traffic, regardless of the duration of

550

the navigation period. However, it should be noted that in the line of new vessels, only the LC-110YA icebreakers have the potential to provide year-round navigation along the Northern Sea Route and ice escort of large-tonnage cargo ships. The main characteristics of the icebreakers of the LK-110YA series are not yet affected, the project reflects only the requirements for the vessel in particular: the maximum thickness of ice, continuous running, speed, stability, etc. (Timoshenko, 2013). Potentially, the construction of new nuclear icebreakers of the LK-60YA and LK-110YA series can give impetus to the progressive development of the logistics infrastructure of the Northern Sea Route in terms of the growth of cargo turnover and the development of new routes, but not in the creation of a new port infrastructure and the transition to a multimodal logistics scheme (due to the establishment of logistics centers and cargo transshipment). Along with the problems of technical security of the Arctic Fleet, the existing advantages can quickly become disadvantages. The Russian Federation is a dominion in the issue of icebreaking escort along the Northern Sea Route, which causes criticism from a number of foreign states. They believe that the requirements for payment for services rendered in the waters of the Northern Sea Route are unreasonable, in particular for payment for icebreaking and pilotage escort of vessels. That situation calls into question the economic basis for the construction of new vessels to ensure the transit component and requires the transfer of vectors to meet domestic needs. However, the processes of forming a centralized management system of the Northern Sea Route, the organization of icebreaking escort, the provision of equal access to all the interested carriers, including foreign ones, on commercial grounds, are more formalized and far from existing realities. The interest of foreign shipping companies and business circles in the Northern Sea Route, as already noted above, is largely determined by two important factors: • shorter shipment terms for lower prices; • transportation of mineral raw materials from the Arctic regions to the Asia–Pacific countries. According to the above-mentioned positions, foreign companies recognize the potential of the Northern Sea Route, but reasonably believe that it will take years to establish ideas about the commercial viability of this route. The reason for the current situation is to a greater extent doubt about the financial and administrative capabilities of the Russian Federation to ensure the functioning of the Northern Sea Route when the world oil price falls, because oil production in the Arctic is becoming unprofitable. In addition to all of the above, there is a policy of sanctions

N. L. Rogaleva et al.

against Russian companies engaged in the raw materials and shipbuilding industries. The dynamics of the cargo turnover of the Northern Sea Route in 2015–2020 and the forecast dynamics for the future with regard to the growth of indicators largely have multidirectional trends, the corridor of fluctuations (deviations) is quite wide and does not allow us to draw unambiguous conclusions in general, which indirectly confirms the validity of the position of foreign partners.

4

Conclusion

The development of the Arctic region as well as the growth of the logistics potential of the Northern Sea Route is a complex progressive and purposeful process in all its components, one of the elements of which is the modernization and expansion of the capabilities of the nuclear icebreaker fleet, which is undoubtedly one of the strategic priorities of the Arctic region. It seems fair to say that the advanced development of one or more elements can have a negative impact on the system as a whole, in relation to the subject of the study. The importance of the development of the logistics infrastructure of the Northern Sea Route is no less important than the construction of an icebreaker fleet, but it is the Arctic Fleet, its composition, availability and characteristics that is the basis for justifying the development of the mainland infrastructure. However, there is currently no clear position regarding the Arctic Fleet, the design and construction of ice-class vessels is carried out within the framework of state programs, whose implementation and success reveals differences in control figures “on paper” and de facto. Efforts are being made to improve the infrastructure of the Northern Sea Route and increase its attractiveness for foreign shipowners from the point of view of navigation services for passage along the route, including satellite communication systems and ship location determination, electronic navigation maps, a transparent pricing system for icebreaking escort services is being formed, Rules for navigation along the Northern Sea Route are being developed, navigation manuals, maps and other necessary documents are being prepared and distributed (Dzhunusova, 2010).

References Destiny is to be the first. Anniversary year of the icebreaker “Lenin” (2014). Atomflot. Rosatom http://www.rosatomflot.ru/press-centr/ novosti-predpriyatiya/2014/05/05/630-sudba-byt-pervymyubileynyy-god-ledokola-lenin/. Data accessed January 12, 2021. Dzhunusova, D. N. (2010). International use of the Northern Sea Route: Tendences and perspectives Real Estate and Investments. Legal Regulation, 3, 80–83.

Development of the Nuclear Icebreaker Fleet as a Strategic Priority of the Arctic Region Mikhailov, V. E. (2015). Technologies of cargo handling in unequipped ports. In Proceedings of the Scientific and Practical Conference “Maritime education: Traditions, Realities and Prospects”, March 31, 2015 (Vol. 2, pp.157–160). Molchanov, V. P., Akimov, V. A., & Sokolov, Yu. I. (2011). Risks of emergency situations in the Arctic zone of the Russian Federation. All-Russian Research Institute for Civil Defense and Emergency Situations of the Ministry of Emergency Situations of Russia. Oskirko, V. A. (2017). Development of the nuclear icebreaking fleet of Russia. In Proceedings of the IX International Student Scientific Conference “Student Scientific Forum”. https://scienceforum.ru/ 2017/article/2017036440 Data accessed May 11, 2021.

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Russian Shipbuilding News. (2021). All-Russian Scientific Research Institute “Center”. http://www.cniicentr.ru. Data accessed January 12, 2021. Selin, V. S., & Kozmenko, S. Y. (2015). Economic and defense factors in the development of the Northern Sea Route. Marine Collection, 4 (2017), 39–43. Timoshenko, A. I. (2013). Enterprises of the mobilization type in the development of the Russian Arctic and the Northern Sea Route in 1930–1950s. History, philology (Vol. 12, Issue 8, pp. 153–160). Bulletin of Novosibirsk State University. Vasiliev, V. V., & Selin, V. S. (2013). Priorities of protection of national interests in the waters of the Northern Sea Route. The North and the Market: THe Formation of an Economic Order, 2(33), 28–33.

Sustainable Development Capital of Rural Territories: The Role and Significance of Cooperation Galina V. Knyaginina , Adigam A. Barlybaev , Inna A. Sitnova , Zulfiya M. Ishnazarova , and Nurzilya T. Yantilina

in the common agrospace, it is represented by extensive connections and the scale of joint activities among medium and large agricultural producers. One of the tasks of the state in the formation of the state policy for the sustainable development of rural areas should be to support various forms of cooperation, including informal ones. Originality: Among the elements of the novelty of the study, analysis and interpretation of the results of a sociological study conducted by the authors in the settlements of rural areas of the Ural region of the Republic of Bashkortostan; development of some measures of state support for cooperation in rural areas; contribution to the development of the concept of sustainable development of rural areas can be noted.

Abstract

Purpose: The purpose of this study is the theoretical development and enrichment of the concept of sustainable development of rural areas, the definition of the role and importance of cooperation in the process of formation, use and reproduction of sustainable development capital, the development of some recommendations for strengthening cooperative processes in rural areas. Design/methodology/ approach: The study is based on the use of: ethnographic method of studying the socio-cultural environment for the development of rural areas (long and deep immersion of the authors in the economic and socio-cultural reality of the countryside); sociological methods for studying the environment for the implementation of the life of the population of rural areas (survey, questioning, interviewing); economic and statistical methods for analyzing the components of sustainable development capital; methods for interpreting the results obtained, comparing and approximating models of interaction between participants in cooperative processes in the countryside. Findings: Based on the results of the study, it was concluded that an important role in the processes of formation, use and reproduction of capital for the sustainable development of rural areas is played by the pooling of resources and efforts of participants in joint activities. Such an association is predominant in most of small agricultural forms operating

G. V. Knyaginina Bashkir Cooperative Institute (branch) of the Russian University of Cooperation, Ufa, Russia A. A. Barlybaev . I. A. Sitnova (&) . N. T. Yantilina Sibay Institute (branch) of the Ufa University of Science and Technology, Sibay, Russia e-mail: [email protected] Z. M. Ishnazarova Institute of Strategic Research of the Academy of Sciences of the Republic of Bashkortostan, Ufa, Russia e-mail: [email protected]

Keywords

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Capital Sustainable development Cooperation

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Rural areas

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JEL Classification

H0

1

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N1

Introduction

The sustainable development of mesosystems, to which we refer rural areas, can be defined as “a process of positive change for a region/territory, in which resource exploitation, investment direction, technological development orientation and social change are in harmony, increase the value of current and future potential in order to meet human needs and aspirations” (Knyaginina et al., 2021). Considering that rural areas are now becoming the object of close attention not only as territorial units that provide food products to the population, agricultural raw materials for processing complexes and industries, regions and

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_107

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countries with a high level of food security, but also as the basis for the stability of sustainable development of the economy of any territorial system, provision of sustainable development of rural areas with the necessary resources, i.e. capital, which is a backbone parameter that launches economic processes of various forms, directions and scales, acquires special significance. “The balance of the processes of formation, use and reproduction of capital, a clear understanding of the importance of ensuring their implementation often becomes the key to the success of management decisions aimed at maintaining the sustainable economic development of any territorial system” (Sitnova & Barlybaev, 2021). An important role here is played by the processes of pooling the resources and efforts of economic entities engaged in joint activities in various forms and compositions. Such an association can be represented by joint projects between large agricultural complexes within the framework of cluster formations, cooperation of large and medium-sized agricultural producers, joint actions of the population living in rural areas. In our opinion, the future of rural areas lies in the harmonization of relations between all forms of agricultural activity with the building of a system of mutually beneficial collaboration: cooperation, contracting, partnership, etc. In this system, an important place should be occupied by households (farmers, personal subsidiary farms) that perform various functions (production, communication, engineering, supply, supply, provision, etc.) as small forms of economic activity in the countryside.

2

Methodology

As the goals of this study, we have identified: (1) theoretical development and enrichment of the concept of sustainable development of rural areas; (2) definition of role and importance of cooperation in the process of formation, use and reproduction of sustainable development capital; (3) development of some recommendations for strengthening cooperative processes in the countryside. The specific task within the framework of achieving the identified goals, to which this study is aimed, is to substantiate the role and importance of cooperation in the processes of formation, use and reproduction of capital for the sustainable development of rural areas. Author’s developments in the process of studying the transformational processes of the economy of rural areas in the post-Soviet period from the mid-1990s to the 2020s have become the main empirical material of the study. So, in 1994–1996, 130 respondents were interviewed, in 1999– 2000–401, in 2010–2011–552, in 2012–2013–918, in 2019– 2020–1015. The interviews were carried out mainly

informally, in the form of a free conversation with farmers, managers and specialists of state and municipal governments, institutions and local organizations, chosen by us as experts. The surveys were supported by the Moscow Public Science Foundation (1994–1996), the Russian Humanitarian Science Foundation (2010–2011), the Academy of Sciences of the Republic of Bashkortostan (1999–2000, 2012–2013), the Russian Foundation for Basic Research and the Government of the Republic of Bashkortostan (2019–2020). The following methods were chosen as the main methods used in the preparation of this article: ethnographic (authors immersion in economic and socio-cultural activities in rural areas, included observation of repeated facts, actions, relationships and everyday practices); sociological (socioeconomic surveys of households in a number of rural areas of the Republic of Bashkortostan, Chelyabinsk and Orenburg regions through questionnaires and interviews in the period from the mid-1990s to the present); experimental (formation of behavioral models based on the analysis of the results of field studies, processing of the collected material, interpretation of generalized data) (Aidarbakov et al., 2019). The use of a combination of these methods makes it possible to obtain the most accurate reflection of the changes taking place today in the economic and social development of rural areas.

3

Results

The formation of the modern rural economy and agro-industrial complex of the country was difficult and very long. In the context of the destruction of the collective-farm system of agricultural production, the population of rural settlements found itself in a situation of “survival” without any sources of financing and without the usual forms and ways of life. The regions solved the issues of preserving their own agricultural producers in different ways. This concerned the issues of transferring land from state to private ownership, issues of supporting farms and issues of doing business in the countryside. As a result, to date, agrospace has been formed, it includes a set of subjects of agricultural activity in various forms and pursuing different goals: (1) large production and processing complexes, focused on making a profit from their activities and not including the solution of social problems of those rural areas, where their production facilities are located, among their goals; (2) farms organized by the most advanced representatives of rural settlements or townspeople who have decided to apply their entrepreneurial skills in agriculture; (3) individual farms of the population, including personal subsidiary farms, not focused on the production of

Sustainable Development Capital of Rural Territories: The Role and Significance of Cooperation

marketable agricultural products and aimed at providing themselves and their families with agricultural products of their own production. Each of the totality of subjects of modern agrospace, from the smallest households to the largest agro-industrial complexes located on vast territories, at certain stages of its activity is faced with the need to provide it with various resources (material, financial, labor), i.e. fixed, circulating, human and other types of capital. At the same time, considering the importance of preserving the natural environment, the balance and stability of the social space, the positive dynamics of economic activity indicators not only for the present, but also for future generations, we can confidently say that we are talking about the capital of the sustainable development of rural areas. In our opinion, the capital of sustainable development of rural areas can be defined as a set of resources of rural areas used in the production of a socially useful product in these areas provided that such production does not violate the socio-ecological and economic balance achieved by the territories in the process of their development (Barlybaev & Sitnova, 2021a). The components of the capital of sustainable development of rural areas can be divided into four groups: natural, socio-cultural, industrial and production, investment and financial. In the processes of life in rural areas, based on the use of their capital, all components of the capital of the territory are interconnected and interact with each other. The same interaction and interconnectedness should be in the process of reproduction of the capital of rural areas, which will allow us to talk about a high level of balance in the processes of formation, use and reproduction of the capital of the territory. This requirement is especially important from the standpoint of sustainable development of rural areas, because sustainable development is inherently a balanced process of progressive development, considering the interests of present and future generations (Menshchikova, 2012), which implies the constant renewal of all life processes at a level not lower than the previous one, and, therefore, the corresponding capital. To increase the level of balance in the processes of formation, use, reproduction of rural capital, a set of measures is needed, including: analytical activities to study the current situation and predict the dynamics of development of socio-economic processes in rural areas; determination of a methodology for assessing the level of formation of the capital of territories, its use by various business entities whose activities are related to a given territory, monitoring reproduction processes in the territory; development (amendments to existing) programs for the development of territories, the

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purpose of which should be a balance of: (1) processes of formation, use, reproduction of the capital of the territories; (2) the interests of all economic entities in the territories, the local population and the state; (3) socio-ecological and economic development that increases the value of the current and future potential of the territory in order to meet the human needs and aspirations of both current and future generations (Barlybaev & Sitnova, 2021a). Let’s consider the role and importance of cooperation in the processes of formation, use and reproduction of capital for the sustainable development of rural areas. From the point of view of economic development, the saturation of the public space for the implementation of activities by entities that have the same object, subject, means and product of labor, using the same resources (material, labor, financial, human), contributes to their productive cooperation, the implementation of joint projects, implementation of joint activities, including within the framework of various interaction formats (Akhmetov & Gataullin, 2020; Donnik & Voronin, 2013; Minakov, 2017; Safonov, 2015). In our opinion, the future of rural areas lies in the harmonization of relations between all forms of agricultural activity with the building of a system of mutually beneficial cooperation (Akhmetov et al., 2021; Barlybaev et al., 2021). In this system, an important place should be occupied by households (farmers, personal subsidiary plots) that perform various functions (production, communication, engineering, supply, supply, provision, etc.) as small forms of economic activity in the countryside. In order to identify areas for the formation, use and reproduction of capital for the sustainable development of rural areas (including for small forms of economic activity), as well as to determine the role of cooperation in these processes, we conducted a sociological study, the objectives of which were: (1) determination of economic, environmental and socio-cultural indicators significant for the sustainable development of rural areas; (2) systematization of parameters for assessing the dynamics of sustainable development of rural areas; (3) analysis of currently relevant areas of use and methods of reproduction of the capital of sustainable development of rural areas; (4) identification of forms and directions of cooperation in the countryside. The study covered more than 1000 respondents living in rural areas of the Ural region of the Republic of Bashkortostan and affected various aspects of the life of the rural population, including: the level of economic and social well-being, including its self-assessment by the respondents themselves; the saturation of the social space of the respondents, the scale and intensity of mutual cooperation in rural communities, cooperative and partnership actions, both formal and informal; form and scope of employment, type of economy, directions, scales and types of individual/family economic

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and entrepreneurial activities; socio-cultural context of rural life, including the level of mutual responsibility and trust between people, stereotypes of thinking and behavior, values and motivational attitudes of rural residents. Answers to questions concerning the cooperation of the rural population in various forms and for various reasons are of particular interest, considering the topic of this article. This block of questions covers the study of the scale of cooperation of the population, the goals and reasons for the association, the formalization of relations during the association, the preferred forms of joint activity. 73.2% of respondents answered the question “Do you unite with relatives, other families or people to jointly carry out any economic affairs?” in the affirmative (regularly— with relatives, sometimes—with other families or people). Considering the very high percentage of those who unite for the joint implementation of any economic affairs, it can be argued that cooperation in the countryside exists and plays an important role in the economic life of the villagers. For what purpose do villagers unite most often? The answer to this question is interesting, including in the context of types of cooperation—industrial and consumer. What is more important today in the countryside, association for the purpose of production or for other non-productive purposes? The distribution of answers to the question about the goals of the association is shown in Table 1. The joint execution of works, as the purpose of the association, is predominant (73.5%). The second place is occupied by the improvement of a settlement, a residential area, an apartment building (15.7%), the construction and repair of public facilities are in third place (12.6%). The sale of products and the purchase of equipment for joint use are only in fourth and fifth places. An even smaller number of respondents noted the lease of land for joint use (4.0%), the purchase of livestock for joint use (3.6%) as the purpose of the association. Thus, the main goal of the association of residents of rural areas is joint labor activity, i.e. association is of a production nature.

Table 1 Respondent’s answers to the question: “If you unite, then for what purpose?”

57.3% of the interviewed villagers noted that some work is more profitable to perform collectively as the reason for the merger. Mutual benefit is also present in the second most popular answer “We use each other's connections and opportunities for mutual benefit” (25.6%). Also, the reason for the merger is the lack of own funds for the implementation of part of the work on the farm (16.3%). In the context of our study, the answers to the question “Do you conclude a formal contract?” are of interest. To date, the vast majority of the surveyed villagers (92.6%) unite unofficially, without concluding an agreement, to perform joint work or for other purposes. The following may be the reasons for this situation: instability (episodicity) of relations when performing one-time joint actions, the official registration of which is not advisable due to the large time costs: the need to make insurance payments for additional employees, which affects the budget; lack of official registration of activities in the form of an LLC, individual entrepreneur or other organizational and legal forms; other reasons. It should be noted that in the absence of a desire to conclude an agreement among the majority of respondents, a certain number of the interviewed villagers (5.2%) formalize their relationship when carrying out joint activities. To increase the number of formalized relations in the implementation of joint agricultural activities by villagers, the following points are necessary: (1) the stability of the joint implementation of agricultural activities; (2) economic feasibility of such activities; (3) simplification of procedures for registration of relations in technical terms (digitalization, development of mobile applications convenient for villagers for registration of labor and other relations, etc.) and other measures that motivate villagers for legal and formalized cooperation. At the end of the study, we asked a question about the forms of joint activity that are of the greatest interest to the villagers (Table 2). The majority of respondents (80.9%)

No.

Answer

Response rate

1

Performance of work (tillage, sowing, haymaking, logging or firewood, etc.)

73.5

2

Improvement of the settlement, residential area, apartment building

15.7

3

Construction and repair of public facilities (school, club, sports facilities, water supply, cemetery, etc.)

12.6

4

Acquisition of equipment for joint use

7.6

5

Sales of products

7.6

6

Land lease for joint use

4.0

7

Acquisition of livestock for joint use

3.6

8

Other

3.1

Source Developed by the authors

Sustainable Development Capital of Rural Territories: The Role and Significance of Cooperation Table 2 Respondent’s answers to the question: “Which of the listed forms of joint economic activity of people are of the greatest interest to your family?”

557

No.

Answer

Response rate

1

Informal mutual assistance based on traditions and verbal agreements

80.9 10.2

2

Creation of a production partnership (cooperative)

3

Creation of a consumer cooperative for supply and marketing

5.5

4

Creation of a credit partnership (cooperative)

2.5

5

Other

0.9

Source Developed by the authors

answered that they prefer joint activities carried out informally, on the basis of traditions, oral agreements, mutual assistance. A tenth of the respondents (10.2%) consider the form of production cooperation as the most interesting, 5.5% —the form of consumer cooperation in supply and marketing, 2.5%—the form of credit cooperation. It is important to note that a fifth of the respondents (19.1%) are interested and note cooperation in one form or another as a priority. This fact demonstrates the existing prospects for enhancing cooperation in various forms, which is especially important in the absence of such official cooperation in the countryside at the present time. As for the capital of sustainable development of rural areas and the role of cooperation in this process, it should be noted that any cooperation is a combination of capital and/or efforts of participants. Official cooperation in the form of production, consumer, credit or other cooperative differs in the composition of the combined capital, the participation of those who unite in the main activity, the responsibility of the participants in the association. Informal cooperation does not have such a clear structuring of the combined capital, but also involves the sharing of equipment, materials, labor resources, etc. The capital of both official and unofficial associations (cooperation) becomes a common resource for the implementation of agricultural activities (Akhmetov & Sadykov, 2021; Akhmetov et al., 2021). On the one hand, such a pooling of resources and efforts directly increases the capital of rural areas involved in the production of a socially useful product in these areas. On the other hand, the association has a significant impact on other types of capital for the sustainable development of rural areas. This applies to the greatest extent to socio-cultural capital, which we define as a set of values (including cultural), significant and accepted by a given social group (family, team, population), capable, being an intangible asset, to bring economic benefits, improve the social position of both the individual and the social group (Sitnova et al., 2020). Such a social group in our study is the population of villages in the study areas. The relations that develop between members of a social group largely determine the success of any joint action, which is especially important for rural areas, where the social component and the components that form it significantly

predominate over the rest (Barlybaev & Sitnova, 2021b; Barlybaev et al., 2020). Thus, the formation, use and reproduction of the capital for the sustainable development of rural areas should be carried out: (1) taking into account the multi-subject nature of modern agrospace and the focus of each of the subjects on obtaining a positive result from interaction, which ultimately contributes to the growth of the capital of each subject and the capital of the entire rural area; (2) with the support of various forms of cooperation, including informal one, in the implementation of joint agricultural activities; (3) based on the use of modern methods and models of the digital economy with the introduction of new achievements in various fields of science and technology into the daily economic life of the villagers.

4

Conclusion

Based on the study, the following conclusions can be drawn: • to date, agrospace, which includes a set of subjects of agricultural activities in various forms and pursuing different goals: large production and processing complexes, farms, individual households, including personal subsidiary plots, has been formed; • agricultural entities operating in a single agrospace, which is rural areas in our study, are directly involved in the processes of formation, use and reproduction of capital for the sustainable development of rural areas, including production, financial, investment, labor, human, infrastructural, etc.; • in this process, the pooling of resources and / or efforts of participants in joint agricultural activities is important, which, on the one hand, contributes to the formation of capital for socially useful activities, on the other hand, such a combination has a significant impact on other types of capital for the sustainable development of rural areas; • formation, use and reproduction of capital for sustainable development of rural areas should be carried out: (1) in consideration of the multi-subject nature of modern agrospace and the focus of each of the subjects on

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obtaining a positive result from interaction, which ultimately contributes to the growth of the capital of each subject and the capital of the entire rural area; (2) with the support of various forms of cooperation, including informal one, in the implementation of joint agricultural activities; (3) based on the use of modern methods and models of the digital economy with the introduction of new achievements in various fields of science and technology into the daily economic life of the villagers; • to increase the level of balance in the processes of formation, use, reproduction of capital in rural areas, a set of measures is needed, including: analytical activities to study the current situation and predict the dynamics of development of socio-economic processes in rural areas; determination of a methodology for assessing the level of formation of the capital of territories, its use by various business entities whose activities are related to a given territory, monitoring reproduction processes in the territory; development (amendments to existing) programs for the development of territories, the purpose of which should be a balance of: (1) processes of formation, use, reproduction of the capital of the territories; (2) the interests of all economic entities in the territories, the local population and the state; (3) socio-ecological and economic development that increases the value of the current and future potential of the territory in order to meet the human needs and aspirations of both current and future generations.

Acknowledgements The research was carried out at the expense of the grant of the Russian Science Foundation No. 23-28-00893, https:// rscf.ru//project/23-28-0893/.

References Aidarbakov, F. F., Barlybaev, A. A., Barlybaev, U. A., Nasyrov, G. M., & Sitnova, I. A. (2019). Development of ethnic entrepreneurial economy: Republic of Bashkortostan case study. Studies on Russian Economic Development, 30(3), 291–298.

G. V. Knyaginina et al. Akhmetov, V. Y., & Gataullin, R. F. (2020). Revival and sustainable development of consumer cooperation as a factor in the development of depressed rural areas. Agricultural Economics of Russia, 11, 87–93. Akhmetov, V. Y., Kuzyashev, A. N., Knyaginina, G. V., Mukhametzyanova, E. R., & Nasretdinova, A. R. (2021). Development of the system of consumer cooperation in the conditions of digitalization of the economy. Studies in Systems, Decision and Control, 316, 109–119. Akhmetov, V. Y., & Sadykov, R. M. (2021). Socio-economic monitoring of the development of rural areas of the Republic of Bashkortostan: Current state and directions for improvement. Agro-Industrial Complex: Economics, Management, 7, 82–87. Barlybaev, A., Barlybaev, A., Ishnazarova, Z., Ishnazarov, D., & Sitnova, I. (2020). Measuring quality of life: An integrative approach. In E3S Web of Conferences, (Vol. 208, pp. 03062). Barlybaev, A. A., & Sitnova, I. A. (2021a). Capital for sustainable development of rural areas: Composition and features of formation. Theoretical and Applied Problems of Modern Science and Education, Kirov, 1, 81–88. Barlybaev, A. A., & Sitnova, I. A. (2021b). Sociocultural capital of rural areas: Problems of measurement and assessment methodology. Bulletin of the Altai Academy of Economics and Law, 4(2), 166– 174. Barlybaev, A. A., Sitnova, I. A., Rahmatullin, I. M., Saitbatalova, V. T., & Barlybaev, A. A. (2021). Cooperation as a sociocultural factor in the development of rural territories: A conceptual model. Studies in Systems, Decision and Control, 316, 431–439. Donnik, I. M., & Voronin, B. A. (2013). The system of rural cooperation in modern Russia. Agrarian Bulletin of the Urals, 5 (111), 58–60. Knyaginina, G. V., Barlybaev, A. A., Sitnova, I. A., Ishnazarova, Z. M., & Ishnazarov, D. U. (2021). Management capital and its role in sustainable development. Springer International Publishing. Menshchikova, V. I. (2012). Sustainable development of rural areas. Socio-Economic Processes and Phenomena, 7–8(041–042), 106– 110. Minakov, I. A. (2017). Trends and prospects for the development of agricultural cooperation. Bulletin of the Kursk State Agricultural Academy, 5, 50. Results of Local Sociological Research. (2020). Sibai Institute (branch) of Bashkir State University. Safonov, I. V. (2015). Agricultural cooperation in modern economic conditions. Bulletin of Rural Development and Social Policy, 3(7), 42–45. Sitnova, I. A., & Barlybaev, A. A. (2021). Territory capital: Types and components. Management Accounting, 1, 103–110. Sitnova, I. A., Barlybaev, A. A., Barlybaev, A. A., Nasyrov, G. M., & Yantilina, N. T. (2020). Sociocultural capital of the territory: formation, use, reproduction. Economy and entrepreneurship, 12, 41‒45.

Methods for Quality Control of Products of the Kamchatka Territory Nina I. Ryakhovskaya

Abstract

JEL Classification

Food quality control methods are a complex problem that requires numerous efforts for its implementation both on the part of scientists—biochemists, microbiologists, toxicologists, and on the part of manufacturers, sanitary and epidemiological services, government agencies and consumers. The quality of food should be understood as the absence of harmful effects on the human body. The article presents the results of studies of organoleptic evaluation, methods of quality control of products produced in the conditions of the Kamchatka Territory and brought from other regions of the Russian Federation. As a result of the research, it was determined that the products of the Kamchatka Territory have positive ratings, which indicates a rather serious attitude of agricultural enterprises of peasant farms, individual entrepreneurs to quality control and storage of their products. Cultivation and production of environmentally friendly products is organized in agricultural enterprises of peasant farms, individual entrepreneurs located on lands free from pollution by heavy metals, pesticides, radionuclides, dioxins. Farms producing products must have an agrochemical analysis of the soil, a declaration or certificate of product conformity and laboratory test reports. Product quality assurance in the process of production, processing and storage is impossible without assessing the quality characteristics of any products, systems arising from the requirements established for them.

O13

Keywords

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Method Organoleptic Products Enterprises

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Evaluation

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Research

N. I. Ryakhovskaya (&) Kamchatka Branch of the Russian University of Cooperation, Petropavlovsk–Kamchatsky, Russia e-mail: [email protected]

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1

. . . P24

P42

Q13

Introduction

The quality of food products is particularly affected by poor-quality imported food entering the market and unscrupulous suppliers from certain regions of the Russian Federation. When cultivating agricultural crops, technologies using agrotechnical, biological methods, plant protection products adopted in the region should be used on the basis of the developed measures for the maximum use of organic, mineral fertilizers and pesticides. Ensuring the safety of food raw materials and food products is one of the main factors in reducing the risk to public health and is of great importance (Nikolaeva, 2006, p. 150–151). Food quality is a set of properties that reflect the ability of products to provide organoleptic characteristics, the body’s need for nutrients, its safety for health, reliability during production and storage (Chernikov & Sokolov, 2009, p. 20]. The relationship between soil fertility and human health in the Kamchatka Territory has already clearly manifested itself. The volumes of vegetables, high-quality feed of own production have decreased with very low soil productivity. The market is filled with imported agricultural products of poor quality (Ryakhovskaya, 2015b, p. 125, 175). In the Kamchatka Territory, large expenditures are needed to restore soil fertility and the forage industry. Forage production is: the introduction of annual and perennial fodder crops and varieties with high adaptive properties, the selection of sustainable hay-pasture and silage grass mixtures; development of intensive technologies for the cultivation of forage crops in crop rotations, including methods for the cultivation of clover-cereal mixtures that ensure the longevity of the legume component; selection and

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_108

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seed production of cereal perennial grasses, which constitutes a fodder base for animal husbandry and obtaining high-quality milk (Ryakhovskaya 2015a, p. 3–25). Agriculture in the conditions of the Kamchatka Territory is a supporting industry aimed at meeting the needs of the population of the region in agricultural products of high quality: crop products (potatoes and vegetables of open and protected ground) in full, livestock products (milk, meat)— in part. The priority goal in the field of animal husbandry is to provide children's institutions and institutions of the social sphere with dietary products of local production. To achieve this goal, it is necessary to solve the following tasks: • organoleptic evaluation of product quality. • conducting a comparative assessment of product quality control methods (chemical method, weight, quantitative, physical and chemical).

2

Methodology

We studied dairy products (milk, cottage cheese, curds, sour cream), juices, drinks, potatoes according to the state standard (State standard GOST 3622–68; State standard GOST 4299–89; State standard GOST 7176–85; State standard GOST R5, 2090–2003; State standard GOST, 23268.0–91; State standard GOST, 26809–86; State standard GOST, 28283–89; State standard GOST, 29135–91). We have taken the following enterprises: “Petropavlovsk Dairy Plant” LLC, Municipal unitary enterprise Pilot production facility “Zarechnoye”, State Unitary Enterprise Pilot production facility “Sosnovskoye”, individual entrepreneurs and peasant farms of the region, as well as imported products to the region from other regions of the Russian Federation. The studies were carried out in the laboratory of the Kamchatka Branch of the Russian University of Cooperation and the enterprise “Petropavlovsk Dairy Plant” LLC. It has its own production laboratory, which is supplied with milk from 6 farms, 20 personal subsidiary farms (PSP), 16 peasant farms (PFH). Over the past year, PSP and PFH have increased the volume of milk handed over for processing. For seven months of this year, 4620.2 tons of raw materials were accepted for processing. The largest volumes are given by the farms of Municipal unitary enterprise “SovKam”, JSC “Zaozerny”, State Unitary Enterprise Pilot production facility “Sosnovskoye”, “KamAgro”, Agriculture artel “Apachinskaya” and Municipal unitary enterprise Pilot production facility “Zarechnoye”. Also, excellent results are shown by cooperation with private farms and peasant farms, which have delivered about 1319.5 tons for the current period.

3

Results

The products of organizations that are brought to “Petropavlovsk Dairy Plant” LLC are analyzed and, according to the table, comply with quality indicators and state standards (State standard GOST 3622–68; State standard GOST R5, 2090–2003; State standard GOST, 28283–89). The company's products are sold in 21 outlets located in Petropavlovsk-Kamchatsky, Vilyuchinsk, Yelizovo, Rybachy village. Compliance with sanitary and hygienic rules and norms (requirements) is monitored (Table 1). The largest dairy plant in Kamchatka, which produces more than 27 types of whole milk products, uses only natural raw milk in production, and there is a strict ban on preservatives. “Petropavlovsk Dairy Plant” LLC produces cottage cheese, yoghurts, cheese curds, varenets, ice cream, kefir, cottage cheese with fruits, cocktails. These products were examined with students in practical classes and the quality of products was evaluated by physico-chemical, organoleptic and microbiological methods. The students studied the control and quality of dairy products from the Agricultural Production Cooperative “Sosnovskoye”, Pilot production facility JSC “Zarechnoye”, “Milkovskoye” LLC and producers from other regions of the Russian Federation. To participate in the tasting competition, in which more than 500 enterprises annually take part, dairy products of “Petropavlovsky Dairy Plant” LLC were presented. The quality was duly appreciated by the Central Tasting Commission of the Ministry of Agriculture of Russia and the company “AGROEXPOSERVICE”. The enterprise received awards: for cottage cheese packed in packs of 200 g, as well as a diploma of the winner of the international competition “Best Product-2019” and a silver medal for kefir 3.2% in a bottle. It constantly participates in such events and, as a rule, receives diplomas, which confirms the high quality of Kamchatka products. In practical classes, products from other regions of the Russian Federation were studied. The students carried out an organoleptic evaluation in the educational laboratory. Products that do not meet the national standard and quality were noted. These are curds, cottage cheese and the quality of milk did not match the fat content, as well as impurities. For the period from 2016 to the present, in the course of research, counterfeit dairy products were detected in circulation from the following suppliers imported to the Kamchatka Territory: “Firm Metod” LLC, “Alteza” LLC, “Grand Ice” LLC, “KMP-Trading” LLC, “Diva” LLC, “Firm Method-1” LLC, “Food Service” LLC. However, when studying the products of local producers: Pilot production facility State Unitary Enterprise “Zarechnoye”, “Petropavlovsk Dairy Plant” LLC, FSUE “Sosnovskoye”, “Milkovskoye” LLC, from 2018–

Methods for Quality Control of Products of the Kamchatka Territory

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Table 1 Assessment of the quality of dairy products of organizations in the Kamchatka Territory, 2021 Organization

Acidity, ° T

Density, g/cm3

Fat, %

Antibiotics, quantity

Somatics thousand/cm3

Temperature, °C

Grade

Agricultural production cooperative Sosnovsky

16

28,20

4,0

Negative

158

5

High

Pilot production facility JSC Zarechnoye

17

29,31

4,0

Negative

201

6

First

PFH Kovalenko

17

28,63

3,9

Negative

218

9

High

PFH Sushko

17

29,37

3,7

Negative

394

10

First

PFH Ramazanov

16

28,00

4,0

Negative

561

7

Second

Individual Entrepreneur Ivanova

16

28,48

3,5

Negative

420

9

Second

Individual Entrepreneur Sidorova

17

29,37

4,2

Negative

158

4

High

Individual Entrepreneur Podoprigora

16

28,48

3,9

Negative

239

5

High

Individual Entrepreneur Poletavkina

17

29,53

4,0

Negative

402

4

First

Source Developed by the author

2021, it was confirmed by students during laboratory work on the falsification of dairy products that the manufactured products met the requirements of regulatory documents in terms of quality for dairy products. Juices, drinks from Kamchatka and other regions were investigated. These are Kamchatka: the famous mineral water on the peninsula “Malkinskaya No. 1”, “Malki”, “Second Life”, “Cream-soda”, “Duchess”, “Pinocchio”, “Kolokolchik”, “Lemonade”, “Tarhun”. In the study of water and drinks from Kamchatka producers, the products were natural and of high quality. The Yunet company in translation from the Koryak language means “life”. The company is reviving production from local wild berries. The product range of the commodity producer has been significantly expanded and includes compotes, jams, preserves, drinking jelly, birch sap, regular and with lemon. All products are made from natural berries without the addition of any concentrates. Most wild plants— blueberries, lingonberries, honeysuckle, raspberries and others—were collected in the Milkovsky district of the Kamchatka Territory. These drinks were examined by organoleptic and physico-chemical methods and it was determined that the manufactured products meet the requirements established by regulatory documents for product quality indicators.

Table 2 Evaluation of the quality of different varieties of potatoes

Students are interested in knowing the methods of quality control and research they conduct in the classroom, especially the products of a local producer. In accordance with the requirement of health authorities, the average milk consumption per child is 500 g per day. Thus, for 28.3 thousand preschool children, pupils of boarding schools in the city of Petropavlovsk-Kamchatsky, the daily need is 14.188 thousand, which is 5178.6 thousand liters per year. In general, in the Kamchatka Territory, it is 25.0 thousand liters per day for 50,130 children, or 9127.4 thousand liters per year. To produce such a quantity of milk for the health of children, in the Kamchatka Territory, large expenditures are really needed to restore soil fertility and the fodder industry. Studies on the yield, quality and safety of tubers of various varieties of potatoes were carried out in laboratory conditions. In the study of different varieties of potatoes, the starch content in tubers was the highest in the Kamchatka variety— 17%, and, accordingly, the taste of this variety was 5 points, the safety was 98.6%. Potato yields were the highest in varieties Geyser and Kamchatka—25.0–28.8 t/ha (Table 2). High levels of starch and dry matter were found in tubers (24% and 17%, respectively) of the Kamchatka variety. The

Indicators

Fresco

Volcano

Geyser

Kamchatka

Productivity, t/ha

20,0

23,5

25,0

28,8

Starch content in tubers, %

12,5

12,4

12,0

17,0

Dry matter content, %

20,0

18,8

19,6

24,0

Vitamin C mg/% Safety, % Taste qualities, score Source Developed by the author

5,6

5,0

97,0

5,74

98,0

6,27

98,6

98,6

4,9

4,8

4,5

5,0

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highest content of vitamin C in potato tubers is in the Vulkan variety—6.27%.

4

Conclusion

Thus, entities purchasing products (especially for children's institutions) need to study the information when concluding contracts for the supply of dairy products for the presence of certificates of conformity for products, technical regulations (declaration or certificate of conformity), laboratory test reports, including indicators identification and also have a certificate of conformity for fruit and vegetable products. In the course of laboratory studies of dairy products, it was found that the products manufactured in the Kamchatka Territory meet the requirements of regulatory documents in terms of quality indicators for dairy products. In the study of juices and drinks from Kamchatka producers, the products meet the requirements of regulatory documents and quality indicators. The products are made from natural berries without the addition of any concentrates. In the study of different varieties of potatoes, the highest starch content was found in the tubers of the Kamchatka variety—17%, the taste quality was 5 points and the safety was 98.6%. The highest yield and dry matter content were found in potato tubers of the Kamchatka variety—28.8 t/ha and 24%, respectively. The highest content of vitamin C in potato tubers is in the Vulkan variety 6.27%.

References Chernikov, V. A., & Sokolov, O. A. (2009). Ecological safety of products M.: Kolos, (Textbooks and study guide for students of higher educational institutions), (pp. 20). Nikolaeva, M. A. (2006). Theoretical foundations of commodity science. Textbook for universities. M.: Publishing house “Norma” (pp. 150–151). Ryakhovskaya, N. I. (2015a). Agrarian science of Kamchatka: Stages of formation and priority directions of development. N.I. Ryakhovskaya //materials of the scientific conference, Status and priorities of scientific support of the agro-industrial complex of the Kamchatka Territory, Petropavlovsk-Kamchatsky, Far Eastern branch of the Federal State Budget Educational Institution of Higher Education All-Russian Academy of Foreign Trade of the Ministry of Economic Development of the Russian Federation (pp. 3–25). Ryakhovskaya, N. I. (2015b). The system of agriculture of the Kamchatka Territory, Petropavlovsk-Kamchatsky. Publishing house “Kamchatpress” (pp. 125, 175). State standard GOST 23268.0–91 Mineral waters: Drinking, medicinal, medical table, natural table waters. Rules for acceptance and sampling. State standard GOST 26809–86 Milk and dairy products. Acceptance rules, methods of sampling and preparation of samples for analysis. State standard GOST 28283–89 Cow's milk. Method of organoleptic assessment of smell and taste. State standard GOST 29135–91 Fruit juices. General specifications. State standard GOST 3622–68 Milk and dairy products. Sampling and preparing them for testing. State standard GOST 4299–89 Potatoes. Sampling and Quality Methods. State standard GOST 7176–85 Fresh food potatoes. Specifications. State standard GOST R 52090–2003 Drinking milk. Specifications.

Improving the Competitiveness of the Regional Fishery Complex by Strengthening Foreign Economic Relations of the Region Lyubov E. Venyaminova , Nadezda L. Rogaleva , and Larisa N. Sushko

Abstract

The paper considers the problems and the state of development of enterprises and organizations of the fishery complex of the Kamchatka Territory. The authors discuss the deficiencies in assessing the competitiveness of enterprises and indicate scientific and methodological approaches to the new assessment. The prospects for improving competitiveness by increasing the effectiveness of international cooperation are identified. Additionally, the authors consider the peculiarities of the competitiveness of the fish industry business and analyze the competitive advantages of fish industry enterprises in the Kamchatka Territory. Keywords

. .

..

Fishery complex Digitalization Sustainable development Competitiveness Kamchatka Territory International cooperation

.

JEL Classification

R10

1

. . Q22

O13

Introduction

Nowadays, the enterprises of the fishery complex of Kamchatka Territory are significantly affected by socio-economic transformations caused by changes in the factors of the L. E. Venyaminova . N. L. Rogaleva (&) . L. N. Sushko Kamchatka Branch of the Russian University of Cooperation, Petropavlovsk-Kamchatsky, Russia e-mail: [email protected] L. E. Venyaminova e-mail: [email protected]

external and internal environment of the market space (Akhmarov, 2019). The ambiguity and unpredictability of current market situations complicate the processes of change management by enterprises and make it transgenic, reducing the probability of accuracy of forecasts and planning of the activities of socio-economic market entities. The planned activities of enterprises of the fishery complex of the Kamchatka Territory are becoming rather unrealistic and doubtful. Furthermore, the consequences of the COVID-19 pandemic and the economic sanctions of developed countries determine the need to look for new scientific, methodological, and practical algorithms and approaches to the organization of the activities of enterprises. All strategic development platforms of Russia are focused on digitalization and socialization. Therefore, the business of all market entities will inevitably transform to remain in the market sector. The enterprises of the fishery complex of the Kamchatka Territory need to transform the internal environment and explore potential opportunities for deepening all types of activities towards the external environment at macro and micro levels. The period of digitalization and socialization, as well as their introduction into economic activity by enterprises, coincided with the COVID-19 pandemic and other unfavorable external factors, which significantly complicated the management of competitiveness of enterprises in terms of the principles of the sustainable development of the fishery complex of the Kamchatka Territory (Portnyagin et al., 2010). Effective management of competitiveness by the enterprises of the fishery complex initiates the innovation in production resources, the implementation of efficient and careful consumption, and distribution of aquatic biological resources (ABR) with an increase in the economic efficiency of the production of fish products and aquaculture processing, ensuring and preserving their natural reproduction.

L. N. Sushko e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_109

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Methodology

The scientific hypothesis of the research: development of new methods for assessing the competitiveness of enterprises of the Kamchatka Territory, considering new competitive advantages and the correct setting of their priorities to ensure sustainable development supported by innovative directions in technical and technological re-equipment and the renewal of fishing and fish farming (Government of the Russian Federation, 2019). The paper aims to assess the competitiveness of enterprises in agricultural sector in the conditions of digitalization and socialization of society, globalization processes in the world economy, and the formation of stable inter-complex relations. The main research methods include logical, statistical, and monographic methods and observation.

3

Results

The fishery complex is an essential sector of the economy of the Kamchatka Territory, representing an industrial and economic complex with developed intersectoral, interregional, and international relations. The Kamchatka Territory holds a leading position in terms of production volumes; the region has developed over 1.5 million tons of ABR for three years in a row. There is slight decrease in production by the enterprises of the fishery complex (1530 thousand tons or 99%) in 2020 to the level of 2019, while the share of the catch in the Far Eastern Basin remains at the level of 40% and more than 30% (Bliznyuck, 2018). In the catch structure in 2020, the leading position was occupied by pollock (700 thousand tons); the second place —by Pacific salmon (191.5 thousand tons). Herring, flatfish, navaga, greenling, halibut, ivasi, squids, crabs, and other ABR are also fished. According to the state registration data for 2020, 800 enterprises and organizations engaged in fishing or Fig. 1 The market structure of the enterprises of the fishery complex of the Kamchatka Territory in 2020. Russian Federal Research Institute of Fisheries and Oceanography (VNIRO) 2020 Source author based on (Russian Federal Research Institute of Fisheries and Oceanography (VNIRO) (2020))

processing of fish products and other aquaculture facilities with a year-round or seasonal production cycle are functioning in the Kamchatka Territory. The following dominant enterprises of the fishery complex of the Kamchatka Territory have significant mining and processing ship capacities and invest in the renewal of fixed assets: Okeanrybflot JSC, Collective Farm Fishery Named After V. I. Lenin, Norebo Holding Group of Companies (Akros JSC, Roliz LLC, Sakhalin Leasing Fleet JSC, Blaf JSC, YAMSy JSC, Magadantralflot LLC, and Akros 3 JSC), Rosrybflot LLC, Mercury LLC, Vityaz-Auto LLC, Oktyabrsky-1 LLC, Kamchattralflot LLC, Kolkhoz Octyabr JSC, Ozernovsky RKZ No. 55 JSC, Tymlatsky Fish Factory LLC, RPZ Maksimovsky LLC, Vostochny Bereg LLC, Ukinsky Liman LLC, Zarya LLC, and Kolhoz Im. Bekereva JSC. In 2020, these enterprises and organizations provided more than 70% of the catch of ABR (Russian Federal Research Institute of Fisheries and Oceanography (VNIRO) 2020). In 2020, only three enterprises experienced global changes towards a positive trend in the material and technical base. These enterprises are part of a group of large market players (Russian Federal Research Institute of Fisheries and Oceanography (VNIRO) 2020). Out of 800 enterprises, 27 are market leaders (Fig. 1). In 2020, the volume of exports of fish products and seafood amounted to 346 thousand tons ($785 million). The deliveries of food and fish products to the Russian market in 2002, mainly to the Primorye Territory, exceeded 70%; imports are carried out to St. Petersburg, Moscow, Khabarovsk Territory and other subjects of the Russian Federation (Russian Federal Research Institute of Fisheries and Oceanography (VNIRO) 2020). Competitive advantages at a given time for enterprises and organizations of the fishery complex of the Kamchatka Territory and strategically plan them in the future, focusing on the main competitors, the socio-economic development strategy of the Kamchatka Territory, and consumers and

Improving the Competitiveness of the Regional Fishery Complex …

suppliers are needed. An integrated approach will allow enterprises to be economically efficient and socially expedient in foreign and domestic markets (Official website of the Communist Party of the Russian Federation, 2019). All dominant enterprises of the fishery complex market of the Kamchatka Territory compete among themselves. First, competitors must determine who is a significant competitor to them, and who is not, which is already 80% of the success in the competition. The Kamchatka market of fish products is quite extensive. The competition between them mainly lies in the quality and price of the products manufactured and in the acquisition of new market shares. The rest of the enterprises are engaged only in the extraction of ABR. When assessing the competitiveness of enterprises, we were guided by their market position in the information space. Moreover, we studied their financial activities, advertising activity in the market, time of existence in the market (Ministry of Agriculture of the Russian Federation, 2017).

4

Conclusion

Competition in the fishing industry is quite intense. This situation is due to the following reasons: • A large number of enterprises; • Low consumer costs when switching from the products of one company to another, when companies are dissatisfied with their market share and try to capture a competitor’s share; • The difficulty of leaving the industry, which forces companies to start implementing aggressive strategies. A comparative analysis of the activities of the enterprises of the fishery complex allowed us to identify the following weaknesses that negatively affect the competitiveness of the regional fishery complex: • Need for mandatory quotas of the limits of the volume of the generally allowable catch level for all types of ABR, an indifferent approach to the collection system, which determines the priority of the development of highly profitable fishing facilities with a constant reduction in the total allowable catch for these types of products; • A significant imbalance between the volumes of production capacities of the Kamchatka Territory and the volumes of ABR allowed for the catch; • Insufficient elaboration of the regulatory framework that determines the procedure for the turnover of operative monitoring cases and quotas for ABR, as well as the

565

•

• • • •

conditions for the selection of fishing sites (Klinova, 2020); Significant imbalance of payments for the use of ABR between budget levels: the share of regional fees is only 30%, which significantly reduces the efficiency and the ability to manage the system of development of total allowable catch in full by the regions; The imperfection of the system of government support of the region’s fishery complex; Inefficient personnel policy in terms of the personnel training system; High wear of the fishing fleet, the largest number of vessels (approximately 70%) are exploited for a longer period compared to the standard one; High cost of products manufactured by fishing enterprises due to high tariffs on energy resources for manufacturing enterprises (Kovalev & Privalov, 2021).

It seems expedient to introduce a system of measures that determine the improvement of the efficiency of managing the competitiveness of the regional fishery complex: • Implementation of a system of local and operational management of all types of ABR, increasing the importance of regional management; • Revision of the system of distribution of total allowable catch and quotas, narrowing the list of ABR subject to quotas; • Increase in the financing of research in the fishery sector at the expense of federal and regional budgets to accurately assess the reserves of ABR; • Study of the possibility and implementation of an artificial reproduction system for the potential expansion of the resource base of the fishery complex of the Kamchatka Territory; • Introduction of a system of specialized multi-level education, which makes it possible to build an individual educational trajectory for various types of activities in the fishery complex of the Far Eastern region, considering regional specifics; • Reformation of the payment collection system for the use of ABR up to the introduction of zero rates for certain types of use (for enterprises with coastal processing and organizations of amateur and sport fishing). The formation of a sustainable management system for the competitiveness of the fishery complex of the Kamchatka Territory aims to ensure dynamic development, improve the competitive positions of the region and the industry on the Russian and international markets, and increase the satisfaction of consumer demand for healthy food products of fish and seafood with high added value.

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The availability of fish products and seafood determines the quality of the population’s life (Official website of the Communist Party of the Russian Federation, 2019). The implementation of food security in the Russian Federation is mediated by the creation of a favorable investment image of the fishery complex, increasing the competitiveness of fish products, fishing and fish processing enterprises, and the industry in general. The formation and improvement of the culture of production, processing, and consumption of fish products will allow us to introduce new technologies in the fishery complex.

References Akhmarov, G. I. (2019). Efficiency of fish processing enterprises production activity in Kamchatsky Territory. In N. G. Klochkova (Ed.), Development of the theory and practice of management of social and economic systems: Proceedings of the eighth international scientific and practical conference (pp. 69–72). PetropavlovskKamchatsky, Russia: Kamchatka State Technical University. Bliznyuck, O. S. (2018). Methodological approaches to study “Competitiveness” notion. Science & Technique, 17(4), 344–354. https:// doi.org/10.21122/2227-1031-2018-17-4-344-354 Government of the Russian Federation. (2019). Order “On approval of strategy of development of fishery complex of Russian Federation

L. E. Venyaminova et al. for the period till 2030 and plan of measures on its implementation” (November 26, 2019 No. 2798-r). Moscow, Russia. https://www. garant.ru/products/ipo/prime/doc/72972854/. Accessed 22 October 2020 Klinova, M. V. (2020). The state and national competitiveness (The case of EU). Voprosy Ekonomiki, 8, 146–158. https://doi.org/10. 32609/0042-8736-2020-8-146-158 Kovalev, A. I., & Privalov, V. P. (2021). The analysis of the economic condition of the company. Center for Economics and Marketing. Ministry of Agriculture of the Russian Federation. (2017, September 18). How the Russian fisheries sector will develop until 2030: The views of forum participants. Retrieved from https://www.korabel.ru/ news/comments/kak_budet_razvivatsya_rossiyskoe_rybnoe_ hozyaystvo_do_2030_goda_vzglyad_uchastnikov_foruma.html. Accessed 3 November 2021 Official website of the Communist Party of the Russian Federation. (2019, December 24). Speech of V. I. Kashin at the scientific-practical conference on the topic: “Legal support for the development of the fishery complex of the Russian Federation: past, present, and future.” Retrieved from https://kprf.ru/dep/gosduma/ activities/190634.html. Accessed 3 November 2021 Portnyagin, N. N., Mikhailova, E. G., & Trudnev, S. Y. (2010). Modernization of vessels as a factor in enhancing the competitiveness of entrepreneurship in the fishing industry. Bulletin of Kamchatka State Technical University, 10(14), 5–7. Russian Federal Research Institute of Fisheries and Oceanography (VNIRO). (2020, October 22) Analysis of the salmon run in 2020 [Infographics]. Retrieved from http://vniro.ru/ru/novosti/arkhiv-za2019-god-2/analiz-lososevoj-putiny-2020-goda (22 October 2020)

Current Vectors of Investment Security of the Krasnodar Territory Natalia A. Asanova , Lyubov A. Belova , Saniyat Yu. Hut , and Lydia N. Isachkova

Abstract

1

The paper reveals the problems and the current level of regional investment security, which allows us to identify current vectors of investment security of the Krasnodar Territory, including the intensification of innovation, public–private partnerships, and attraction of foreign investors. The paper uses methods of systemic, structural, and logical research, analytical method, comparison, generalization, and economic and statistical methods. Each method was applied depending on its functionality. The paper presents a detailed analysis of investment activity in the region and highlights threats to investment security. Moreover, the paper identifies priorities for investment and economic security of the Krasnodar Territory. The priority directions of the development of investment activities proposed by the authors will solve the urgent problem of investment security in the region. Keywords

. . .. .

..

.

.

Region Threats Investments Security Fixed assets Depreciation Innovation Government policy Strategy Forecast JEL Classification

K2

.

D6

N. A. Asanova (&) . S. Yu. Hut . L. N. Isachkova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected]

Introduction

Ensuring investment security is one of the key factors in effective economic development, achieving competitiveness and economic security of the region, and providing stability and high living standards for the population. In today’s difficult conditions, the problem of achieving investment and, accordingly, regional economic security is becoming increasingly relevant. Exacerbation of crisis phenomena in the economy, political instability, and increasing external pressure, including sanctions, does not contribute to the dynamic development of the economy and prompts the search for the most effective mechanisms and tools to enhance investment and innovation activities in the region. As a component of economic security, investment security ensures the timely reproduction of fixed capital by optimizing capital investments in volume and structure, contributing to the effective return of funds invested based on improving the quality of products and services, minimizing costs, increasing production efficiency, and improving living standards (Assembly, 2018). Additionally, it is important to optimize the flow of foreign investment into the region and regional investment abroad. Ensuring investment security allows for overcoming the territorial imbalance of the regional economy and optimizing the volume and structure of fixed assets, which are fundamental factors in the transition to an innovative regional economy (Sokolova & Litvinenko, 2020). The research aims to assess the investment activity and investment attractiveness of the market region, identify problems and threats existing at the regional level, and substantiate the priority areas of investment security of the region.

L. N. Isachkova e-mail: [email protected] L. A. Belova Kuban State Agrarian University named after I. T. Trubilin, Krasnodar, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_110

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Methodology

Many important theoretical, methodological, and practical scientific aspects of investment security have not been fully studied and remain the subject of discussion in Russia and the international community. The relevance of these problems determined the choice of the research topic and the formulation of research goals and objectives. The paper uses methods of systemic, structural, and logical research, analytical method, comparison, generalization, and economic and statistical methods. Each method was applied depending on its functionality. The information component for assessing the region’s investment security is the data from official statistics published by the Rosstat regional office of Krasnodar Territory and the Republic of Adygeya (Krasnodarstat). Ensuring investment security is possible only by neutralizing the risks and threats, which are increasing in the context of economic transformation. The more threats in the investment sector, the lower the investment security of the region (Fig. 1). Among the threats, it is important to highlight the undermining of scientific and technological potential, which has been formed over decades and is the result of an ill-conceived scientific and technological policy of the government, legal problems, and gaps in the training of specialists (Assembly, 2018). The presence of this threat slows down the development of regional and national economies, leading to its primitivism and degradation of knowledge-intensive industries. Neutralization of this threat and its negative consequences is possible only with investment in research and development and control over their targeted and efficient use. Sanctions also cause considerable and often irreparable damage to the national economy, isolating the country from new technologies, freezing foreign currency assets, and creating obstacles to banking transactions and foreign

Fig. 1 Threats to the region’s investment security. Source Compiled by the authors based on (Vertij et al., 2012)

economic activity. In the absence of own developments in a particular area, restrictions and bans on access to high-tech equipment create threats to the development of entire industries and reinforce the negative trends in the development of the Russian economy. The research revealed the impact of investment security of the region on its competitiveness and effective socio-economic development: • In the most direct way, the innovation-investment component affects the level of competitiveness of manufactured products and services, which creates prerequisites for the growth of investment attractiveness of producing regions (Reprintseva et al., 2016); • The relationship between economic growth and investment is interdependent: the presence of developed infrastructure, a stable economy, and a high standard of living attracts potential investors; in turn, investment activity revives the real economy, creates new jobs, and improves infrastructure and quality of life in the region; • Political and economic stability, a positive image of the region, and demand and protection of investment resources provide investment security of the region, the consequence of which is a constantly progressing flow of investment resources.

3

Results

The Krasnodar Territory, has 5683.9 thousand people and is the third largest among the regions. The uniqueness of the Krasnodar Territory lies in its natural and climatic and natural resource potential, geographical location, and relatively developed transport infrastructure. Accordingly, the Krasnodar Territory is an attractive region for investment. In 2020, the region ranked sixth in the Russian Federation and first in the Southern Federal District in terms of attracted capital:

Threats to investment security Change in exchange rates Undermining scientific and technological potential Low innovation activity

Predominance of goods of foreign origin

Low competitiveness of local producers Limitations of the banking sector Loss of investment rating

Challenges of doing business

Current Vectors of Investment Security of the Krasnodar Territory

• • • • • •

Moscow city—3567.6 bln. rubles; Tyumen Region—2403.6 bln. rubles; Moscow Region—1052.5 bln. rubles, St. Petersburg—778.0 bln. rubles; Republic of Tatarstan—605.8 bln. rubles; Krasnodar Territory—500.3 bln. rubles.

The Krasnodar Territory is the leader in Russia in terms of agricultural production, ranks second in housing commissioning and volume of paid services to the population, third in public catering turnover, fourth in retail trade turnover, and sixth in investment in fixed assets (Vertij & Novikova, 2012, p. 4). The Krasnodar Territory, like other regions of Russia, as well as the world economy, will be affected by the COVID-19 pandemic in 2020. The growth of entrepreneurial risks, reduction of exports and imports, disruption of traditional economic ties, and the wait-and-see attitude of financial and credit institutions could not but affect the investment activity of the region. Although investment in 2020 exceeded the 2019 values, it did not come close to the 2018 and 2015 figures (Fig. 2). After the Olympics in Sochi (2015), the volume of investments decreased by 23.7%. Among the main reasons for such dynamics are the completion of several megaprojects on a federal scale and the transfer by private investors of their programs to the long-term perspective. During the analyzed period, there was a shift of priorities from attracted sources to own funds to finance investments in fixed assets of organizations. The exception is 2020, in which the attracted funds exceeded 50%. The share of budget funds from all sources of investment has increased quite significantly compared to 2015. The

Fig. 2 Research data. Source authors based on (Vertij et al., 2012)

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participation of foreign capital is insignificant; its share varies from year to year within 3%–5% of all investments in fixed capital. In 2020, the most attractive investments in fixed assets were in transportation and storage—25.5% of the total, which is associated with the implementation of large-scale projects such as the creation of the Tuapse seaport, reconstruction and modernization of port infrastructure and grain terminal in the port of Novorossiysk. Manufacturing industries accounted for 22.7% of investments, most of which was the construction of a large refinery at the Tuapse refinery and the reconstruction of the Ilsky, Afipsky, and Slavyansky oil refineries, the reconstruction of the coffee factory and Timashevsky sugar factory facilities, and the construction of two wineries in Anapa. Agriculture, forestry, hunting, fishing, and fish farming received 8.3% of all investments in fixed assets, including the construction of livestock farms, breeding and genetic centers, and many other projects, the implementation of which will contribute to the region’s food security. Investments in real estate transactions include the construction of the residential district “Yuzhny Bereg” in Novorossiysk and the housing complex “Novaya Zarya” in Sochi, which accounts for about 6% of all investment in fixed capital of the region (Kurnyakova et al., 2021; Reprintseva et al., 2016). According to the dynamics of the volume of financial investments, we can judge about the business activity of business entities in the region, which give preference to portfolio investments to obtain income. The total amount of financial investments of organizations in the Krasnodar Territory has increased by 3.4 times, the most rapid increase in long-term investments—5.9 times.

570

Short-term financial investments prevail in the structure of financial investments (60% in 2020), but their share decreased by 16.7%; respectively, the share of long-term investments increased. Debt securities, certificates of deposit, and stakes and shares in other organizations are the most common long-term investments. In short-term financial investments, more than 70% are bank deposits, and over 13% are loans. Despite the efforts of the Kuban leadership to improve the investment climate, the volume of foreign direct investment in the regional economy continues to decline for the third consecutive year. About 300 companies with foreign participation operate in the region, including about 30 large and medium-sized enterprises. The most attractive industries for them are the transportation of hydrocarbons (ExxonMobil and Chevron), food and tobacco industry (Nestle, Danone, Bonduelle, PepsiCo, and Philip Morris), agriculture (Cargill, Syngenta, and KWS), engineering (Claas), and the production of building material (Knauf, Basf, and Stihl) and packaging (Tetra Pak and AR Carton). Foreign companies are represented in retail (Leroy Merlin, Decathlon, Auchan, Metro) and financial services sectors (Raiffeisen Bank, Intesa, EY, PwC). Many experts note that the observed decline in foreign direct investment (FDI) in the economy of the Krasnodar Territory is rather due to reasons beyond the region’s control and, in particular, repeats all-Russian trends. Against the backdrop of Western sanctions, the COVID-19 pandemic, and ruble volatility, foreign direct investment inflows into Russia fell by 9% (to $446.7 billion) in 2020, and the volume of accumulated net FDI (net of capital outflows) fell by 22% (to $67 billion). Over the past five years, the Krasnodar Territory has been among the top 10 regions of the Russian Federation in terms of investment potential (fourth place) (Sokolova & Litvinenko, 2020). Simultaneously, the main indicators of investment security in 2020 did not reach the recommended values for such items as an investment in fixed capital as a percentage of GRP, the share of high-tech and science-intensive products in GRP. However, its actual value does not correspond to the threshold and is 39.3% of the recommended norm. The industries that dominate the gross regional product of the region need support for innovation (Reprintseva et al., 2016). The public–private partnership should be the basis of the innovative component of investment and economic security of the region, which will contribute to the effective involvement of medium and small businesses in the production of high-tech products and move away from raw material export dependence. Directions to strengthen the innovative component of investment security should include the creation of a system

N. A. Asanova et al.

of orders for products of innovative activity, tax preferences for business entities engaged in scientific activity, and training of human resources for innovative activity through the support of educational programs and many other priorities. A competently built and balanced regional innovation system will provide the highest efficiency of innovative activity and involvement in it of all economic subjects with the most reasonable use of the region’s resources. In conditions of stimulating legislation, continuous monitoring and development of measures to overcome administrative barriers to investment development, a favorable investment climate is a key to the successful functioning of the region’s economy and investment security.

4

Conclusion

The research allowed us to formulate the following conclusions: (1) Aggravation of crisis phenomena in the economy that increases external pressure, including sanctions, slows down economic development and causes the need to find the most effective mechanisms and tools to enhance investment and innovation activities in the region; (2) Even though the Krasnodar Territory is an attractive region for investment (the region ranked sixth in the Russian Federation and first in the Southern Federal District by the volume of capital raised in 2020), most of the indicators of investment security do not meet the threshold value; (3) The lack of innovation development in the Krasnodar Territory, the causes of which include the lack of an effective innovation environment, is a serious threat that reduces the investment attractiveness and security of the region; (4) In our opinion, the directions of strengthening the innovative component of investment security should include the creation of a system of orders for products of innovative activity, tax incentives for business entities engaged in scientific activity, training of innovative activity of human resources through the support of educational programs and public–private partnership.

References Krasnodar Territory Legislative Assembly. (2018). Strategy for socio-economic development of the Krasnodar Territory until 2030 (adopted by the Annex to the Law of Krasnodar Territory “On the strategy for socio-economic development of Krasnodar

Current Vectors of Investment Security of the Krasnodar Territory Territory until 2030” (21 December 2018 No. 3930-KZ)). Krasnodar, Russia. Retrieved from https://www.economy.gov.ru/material/ file/e4e8b9ddede078a93f60f5e7a08fce28/krasnodar.pdf. Accessed 18 Feb 2022 Kurnyakova, T. A., Bredischev, A. O., Butko, M. V., & Hilko, E. N. (2021). The results of socio-economic development of the Krasnodar Territory in 2020: Analytical review. Rosstat regional office of Krasnodar Territory and Republic of Adygeya. Ministry of Finance of the Krasnodar Territory. (2020). Kuban. Execution of the 2020 budget. Krasnodar, Russia. Retrieved from https://admkrai.krasnodar.ru/upload/iblock/000/budget2021/ PublichnyeSlushaniya2020/%D0%91%D1%8E%D0%B4%D0% B6%D0%B5%D1%82_%D0%B8%D1%82%D0%BE%D0%B3% D0%B8_2020.pdf. Accessed 18 Feb 2022

571 Reprintseva, E. S., & Belova, L. A. (2016). The conditions of formation of investment climate in Russia. In A. G. Koschayev (Ed.), Scientific support of the agro-industrial complex: Collection of articles on the materials of the 71st scientific-practical conference of students on the results of research for 2015 (pp. 605–608). Kuban State Agrarian University named after I. T. Trubilin. Sokolova, A. P., & Litvinenko, G. N. (2020). Innovation as a source of agribusiness development. IOP Conference Series: Earth and Environmental Science, 421, 22053. https://doi.org/10.1088/17551315/421/2/022053 Vertij, M. V., & Novikova, A. V. (2012). State of the investment climate of the Russian Federation. In V. I. Hajduk (Ed.), The Russian economic model: Content and structure (pp. 319–325). Kuban State Agrarian University named after I. T. Trubilin.

Social Orientation of the Regional Economic Cluster of Consumer Cooperation Vasiliy G. Melnikov , Alexander N. Maloletko , and Igor V. Melnikov

Abstract

JEL Classification

The paper describes the social orientation of the economic cluster of consumer cooperation provided by its socio-economic essence and relevant competitive advantages at the regional level. The authors establish a connection between the mission and goals of consumer cooperation and social responsibility to the shareholders and the rest of the region’s population. The authors outline the prevailing importance of economic cluster as a form of organization of economic activity in a sector or several sectors, allowing to provide innovative development and economic growth. The theory of new growth, which links economic growth and the welfare of the population with an increase in the level of education the level of skills, is highlighted. The authors emphasize that it is especially important to improve the education of the region’s population and the qualification of workers of consumer cooperation based on scientific and educational institutions. The authors indicate the dependence of innovative development and economic growth of the cluster and the region on the improvement of the education of the population and qualifications of employees of consumer cooperation. The causal link between the consumer cooperation cluster and the socio-economic stability of the region was established.

R11

Keywords

..

. . .

Consumer cooperation Economic cluster Socio-economic system Development Regional economy Social responsibility Economic growth

.

V. G. Melnikov (&) . A. N. Maloletko . I. V. Melnikov Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] I. V. Melnikov e-mail: [email protected]

1

Introduction

In today’s conditions of development of economic relations and competition between commercial organizations in the fields of production, trade, and services, the issues related to the increasing role of socially-oriented clusters become increasingly relevant. The struggle for consumers’ loyalty to certain goods or services is becoming all-encompassing. In this regard, the social orientation of business can be a new competitive advantage, forming long-term consumer loyalty to the goods and services of socially responsible commercial organizations.

2

Materials and Methods

Using historical and empirical research methods and considering the regional economic cluster of consumer cooperation as a socio-economic system, it is necessary to pay special attention to the social orientation of activities of consumer cooperation. The social nature of the activities of consumer cooperation is determined by its socio-economic essence, which is the fundamental principle of the activities of consumer cooperation. The main goal of consumer cooperation is to meet the needs of its members. Historically, consumer cooperation originated to make purchased goods cheaper and bring additional benefits to shareholders when buying goods in cooperative stores. In today’s retail, this mechanism of consumer cooperation is widely used by retail networks in the form of providing customers with discounts on goods purchased with discounts or savings cards.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_111

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This fact is a consequence of the development of competition in the retail industry, in which there is a struggle for customer loyalty. For the same reason of the development of competition, there is a movement from the producer market to the consumer market, where the taste and preferences of the consumer, based on the variety of choices, become decisive in the choice of goods. Manufacturers of goods actively work to study the various characteristics of their potential customers, thereby producing goods that meet their desires. If we go back to history, we can see that consumer cooperation arose under the condition of weak or absent competition, which allowed consumer cooperatives to buy and sell goods to their members more profitable and transfer a portion of the received income to the members. In today’s conditions, consumer cooperation continues its activities, competing in trade and production of goods. A very important social factor of consumer cooperation seems to be the direct proximity of consumers (shareholders) and the organizational and management system of consumer cooperation, represented by the same consumers (shareholders). In essence, consumer cooperation, aiming to meet the needs of shareholders, acts as a guarantor of socio-economic stability and well-being in a particular geographical area, where shareholders live, and consumer cooperation is established (Kaurova et al., 2021). Other commercial organizations with which consumer cooperation competes also aim to make profits from trade and production activities. This is where the existing problem arises in relation to commercial organizations. The existing problem is associated with a lack of explicit motivation for social responsibility to their employees and the region’s population. This can be expressed in an unjustified reduction in the level of wages, inflated prices, lack of goods, a decrease in quality, etc., in an economic crisis, when the level of competition can be reduced. With its social significance and the breadth of territorial activities, consumer cooperation can meet the population’s needs for goods in those geographical areas where it is not economically profitable for commercial structures. Consumer cooperation faces great competition from federal retail chains. This circumstance shows the globalization of the economy and the consolidation of industry players at the regional and federal levels. In this connection, the problem of competitiveness of regional participants of economic relations arises more often. Understanding that no country or region can claim complete hegemony over all manufactured goods, it is necessary to pay attention to the competitive advantages of certain countries and regions.

V. G. Melnikov et al.

The consideration of the consumer cooperation in the context of the regional economic cluster shows its competitive advantages as a cluster, which include several advantages that are most significant for its development: . Territorial prevalence of trade and production organizations; . Availability of its own professional training and research base; . Personal relationships developed at the level of organizations and government agencies; . Availability of own material and technical base; . Developed regional logistics; . Own production facilities. The indicated competitive advantages allow consumer cooperatives to compete with retail chains and manufacturers of the regional and federal levels. Moreover, the same competitive advantages allow consumer cooperation to realize its social mission and goals of providing goods to shareholders and other people living in areas that are hard to reach and sometimes economically unprofitable to deliver. As a participant of regional economic relations, consumer cooperation is focused on its shareholders and other population, thereby ensuring social responsibility of its activities aimed at creating the most favorable and comfortable conditions for the purchase of goods, even in times of economic crises and shortages. Thus, taking into account the social orientation of consumer cooperation as a fundamental principle of formation of competitive advantages, it becomes apparent that regional consumer cooperation is involved in various social projects at the regional level, such as the supply of goods and catering products to social facilities (i.e., schools, kindergartens, etc.). Regions are points of economic growth, providing economic development at the federal level and at the level of the global economy. It is vital to determine the existing competitive advantages at the regional level. Moreover, it is necessary to determine the industry or several industries where economic growth is possible and which cluster formations can contribute to this growth to a greater extent. The consumer cooperation cluster can act as one of the fundamental participants in the socio-economic relations of the region, ensuring regional development and assuming a certain social responsibility. In this case, the cluster of consumer cooperation will act as a guarantor of the socio-economic stability of the region in times of recurrent economic crises. According to M. Porter, the development of clusters is assumed to a greater extent based on their capabilities, which

Social Orientation of the Regional Economic Cluster of Consumer Cooperation

is peculiar to consumer cooperation and is successfully implemented. Internal resources of consumer cooperation are one of its competitive advantages in terms of economic development potential (Porter, 2001). According to the theory of new growth proposed by P. Romer, it is necessary to invest in the education of the population, which can ensure the growth of GDP and the welfare of the population. M. E. Porter was also of the opinion that it is necessary to develop the skills of workers (Pilipenko, 2003; Porter, 2001). Thus, the presence of scientific and educational organizations in the cluster is another competitive advantage inherent in consumer cooperation, which has educational institutions of higher and secondary vocational education, based on which it is possible to form a reserve of employees of consumer cooperation, improve their skills, and conduct the necessary research for innovative development. Moreover, by realizing this competitive advantage, the consumer cooperation cluster shows its social essence, which is important in increasing the level of education of the population and qualifications of workers in a particular region, which, in turn, provides the innovative potential of regional development and the formation of points of economic growth. Thus, forming the strategy of development of consumer cooperation cluster, following the social orientation, it is necessary to pay special attention to the formation of the scientific and educational innovation environment in the cluster through the maximum involvement of scientific and educational organizations. The development of the consumer cooperation cluster is based on the growth of labor productivity through innovation, increasing the level of education of the population and the qualifications of workers, which leads to economic growth in the region. As a result, with the growth of the regional economy, the population’s welfare is expected to grow. The setting of this socio-economic task facing the consumer cooperation cluster leads to ensuring its implementation in relation to shareholders. Thus, the higher the number of people in the region involved in consumer cooperation, the greater the likelihood of growth of their welfare. It is necessary to keep in mind weak prerequisites of social responsibility of commercial organizations related to the growth of the welfare of the population, as opposed to their desire to increase their own profits. According to several studies, the regions are at the core of the economic development of countries on the way to increase their competitiveness in domestic and global markets. In this regard, an essential element of regional development is the form and degree of state participation in this process.

575

We are talking about the implementation of the state cluster regional policy in relation to the already formed and still forming economic clusters. It should be understood that cluster policy mainly aims to develop small and medium-sized enterprises, which constitute the vast majority of enterprises in countries with developed market economies and are the main employer, making a significant contribution to GDP. The economic cluster of consumer cooperation, given its composition of small and medium-sized enterprises and social orientation, like no other can claim active support for comprehensive development from the government. Moreover, consumer cooperation is fertile ground for the state cluster regional policy (including in terms of public investment) because of infrastructural development of consumer cooperation, established organizational structure, established interpersonal relations, and the diversity of participants in economic relations within the cluster.

3

Results

Regions are at the heart of economic development and the formation of points of economic growth, which predetermines their socio-economic importance in the formation of federal and regional economic policy. A cluster policy aimed at the maintenance and development of regional economic clusters is a part of the policy of regional economic development. In this regard, socially-oriented regional economic clusters, which include consumer cooperation, are of particular importance. Socially-oriented clusters act as a guarantor of socio-economic stability of the region and its progressive, innovative development, relying on the scientific and educational base as a means of improving the education of the population, increasing the skills of workers and labor productivity. Due to its social orientation, consumer cooperation has an inherent competitive advantage aimed at creating long-term consumer loyalty to the goods it produces and sells.

4

Discussion

A controversial point of the socially-oriented cluster of consumer cooperation is the presence of its competitiveness at the regional level. As the study of theoretical and practical aspects of consumer cooperation shows, consumer cooperation enterprises are similar to other commercial organizations in the form of their activities.

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V. G. Melnikov et al.

The main difference lies in the fundamental provisions of the existence of consumer cooperation, goals, and objectives. This circumstance forms the socially-oriented competitive advantage, which allows consumer cooperation to ensure its competitiveness.

regional clusters, which include consumer cooperation, thereby ensuring socio-economic stability and innovative development of the regions.

References 5

Conclusion

If we generally characterize the activities of the regional consumer cooperation cluster, it is important to note the social orientation of many aspects of its activities, which provides the necessary competitive advantages and potential for innovative development of the cluster and the region. The regional cluster policy can ensure the maintenance and enhance the long-term development of socially-oriented

Kaurova, O. V., Maloletko, A. N., & Tkach, A. V. (2021). Consumer cooperation in the formation of food resources. Russian Journal of Management, 8(4), 26–30. https://doi.org/10.29039/2409-60242020-8-4-26-30 Pilipenko, I. V. (2003). The new geo-economic model of the country’s development: Improving competitiveness through the development of clusters and industrial areas. Security in Eurasia, 3(13), 580–604. Porter, M. E. (2001). On competition (O. L. Pelyavsky et al. Transl. from English). Moscow, Russia: Williams Publishing. (Original work published 1985).

Prospects for the Development of the Cooperatisve Movement in Public Catering Enterprises of Almetyevsky District of the Republic of Tatarstan Elmira M. Kosacheva

and Alinya R. Nurgalieva

Abstract

Keywords

The authors analyzed the socio-economic development of the Almetyevsky district of the Republic of Tatarstan. Based on the characteristics of 93 catering enterprises of various types, we assessed the prospects for the development of the cooperative in public catering in the district. We identified the predominant number of cafes compared to restaurants and canteens. The total number of seats equaled 6350. Calculations showed that the number of seats in all public catering enterprises exceeded the standard degree of the population’s provision by 48.4%. We proposed a way to improve the profitability of existing enterprises, consisting of the reorientation of 2072 seats. We also revealed peculiarities of the assortment of dishes. These peculiarities are caused by the fact that the population prefers Tatar cuisine to Russian. A number of activities aimed at improving the efficiency of public catering and consumer services in the district are proposed. The proposed measures include the formation of networks of public catering enterprises focused on serving various segments of the population, including children; the introduction of new technologies based on the development of material and technical equipment of production lines. It is shown that an important factor in the development is the design of marketing strategy, considering the national characteristics of the area. It was established that a prerequisite for the effectiveness of the public catering system is the continuous improvement of qualifications and development of the level of competence of workers of consumer cooperation. The implementation of the proposed measures will make the system of public catering and consumer services accessible and of high quality.

Cooperative movement Public catering enterprises Perspectives Almetyevsky district Republic of Tatarstan

E. M. Kosacheva (&) . A. R. Nurgalieva Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected]

.

.

.

.

JEL Classification

L83

1

.

P13

Introduction

One of the forms of food supply to the population is catering, in which a special place is occupied by consumer cooperative enterprises. Their development of consumer cooperatives follows the same laws as the subsystem of cooperative trade of the Centrosoyuz of Russia. The turnover of catering enterprises of consumer cooperatives in 2019 equaled 13.0 billion rubles, including the production of products from raw materials purchased from agricultural producers—11.2 billion rubles (86.2%). New rules for the provision of public catering services were introduced (according to Government Decree No. 1515 of September 21, 2020) to ensure detailed regulation of the actions of business entities from January 1, 2021, to January 1, 2027. Despite the forced limitations of the industry and the problems caused by the decline in public demand for products and activities caused by the COVID-19 pandemic, many catering companies have taken several measures to restructure the work, selling products on the principle of delivery to the consumer’s place of residence (Federal State Statistics Service of the Russian Federation, 2020). In the consumer cooperation of the Republic of Tatarstan in 2020, the turnover of public catering reached 602 million rubles, including 516 million rubles (86%) of self-made food. The consumer cooperation system of the Republic of Tatarstan has a sufficient number of sales vans, which serve

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_112

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rural residents and other population, delivering peeled vegetables and semi-finished meat products to their homes. Cooperators of district consumer societies deliver baby food to kindergartens, schools, and people at home. Moreover, they provide hot meals to road workers, doctors, and other people working seven days a week. Preventive and disinfection measures are observed in the organization of food delivery to organizations. A number of catering companies have mastered and expanded the use of Italian pizza technology, delivering it to consumers’ homes. To attract the attention of consumers and maintain contact with the target audience, many district consumer societies have introduced websites, which help increase customer demand and expand the range of products, including foreign cuisine. Many catering enterprises take orders online or by phone for in-home events with food delivery by courier to takeaway service. To survive economically, companies optimize their operations, including the reduction of staff, elimination of redundant services, redistribution of responsibilities, reduction of the cost of preparing dishes, replacement of expensive dishes with more affordable to the mass consumer, reduction of portions, reduction of the cost of rental space, organization of delivery, sell of related products, preparation of semi-finished products, creation of buffets, exclusion of goods that are not in mass demand, expansion of the range of frequently ordered items, the introduction of new dishes, provision of additional services, and preservation of old prices. These measures greatly contribute to the preservation and survival of the business. Some caterers relocate to settlements with higher consumer demand or hold Black Fridays, attracting mid-level customers (Rosstat Regional Office of Republic of Tatarstan, 2021). The development of public catering and social services for the population is one of the main activities of consumer cooperation and is of great social importance. Such complex and labor-intensive services are extremely important in rural areas that lack developed infrastructure. Simultaneously, there are several problems associated with the lack of effective economic mechanisms to stimulate such activities in rural areas. To overcome these problems, it is necessary to implement several measures with the participation of government agencies at the republic and the federal level. Areas with a developed economy have the greatest prospects for their implementation. In the Republic of Tatarstan, the Almetyevsky municipal district belongs to such districts. The main sector of its economy, which accounts for 80%, is mining and related services. Despite the worsening situation associated with reducing oil production in the Russian Federation (by 20%) and the spread of COVID-19, it managed to keep second place in the socio-economic development of 2020. The

E. M. Kosacheva and A. R. Nurgalieva

Almetyevsky district was first in the Republic of Tatarstan by the volume of production (32%) in 2020. The number of shipped goods, works, and services by large and medium-sized enterprises of the district amounted to 850 billion rubles (Rosstat Regional Office of Republic of Tatarstan, 2021). The district is among the leaders in the formation of the internal territorial product (ITP). According to the results of the last year, the volume of GTP is planned at 342 billion rubles, which will be 20.8% less than last year.

2

Materials and Methods

The analysis of statistical data presented on the website of the Almetyevsk District of the Republic of Tatarstan showed that there are about 12.3 thousand small and medium businesses operating on its territory, including 5167 self-employed, 4014 individual entrepreneurs, and 3115 legal entities, which employ about 14 thousand people. Despite the difficult economic and epidemiological situation in 2020, the total number of small and medium businesses increased by 30% (Rosstat Regional Office of Republic of Tatarstan, 2021). An important factor in the development of small businesses is municipal contracts. In 2020, small businesses concluded 496 municipal contracts in the amount of 336 million rubles, which equals 18.7% of the total amount of signed municipal orders. The district was awarded the national award “The best municipality of the Republic of Tatarstan” (2nd place) for its investment activities in 2020. Figure 1 shows indicators of population growth in the Almetyevsky district. There is a drop in the birth rate and an increase in mortality, one of the causes of which is the COVID-19 pandemic. The level of the average monthly wage, which is the most important indicator of the population’s quality of life, was 49,214 rubles, exceeding the level of 2019 by 6.2% (Table 1). In 2020, unemployment in the Almetyevsky district was 1.96% of the economically active population. The average monthly salary of employees of small and medium enterprises is in second place in the Republic of Tatarstan. Electronic resource “Exchange floor of the Republic of Tatarstan” is in demand in terms of the formation of a favorable competitive environment and ensuring transparent and objective pricing in the Almetyevsky district. Last year, 114 suppliers received revenues of 205.7 million rubles (including 54 new suppliers with 84.9 million rubles of revenues) through the exchange platform (Maksaev et al., 2021). There are 93 enterprises in the catering sector of the city of Almetyevsk, the bulk of which are cafes (66.7%) with an

Prospects for the Development of the Cooperatisve Movement …

579

Fig. 1 Indicators of population growth in the Almetyevsky district. Rosstat Regional Office of Republic of Tatarstan (2021 Source Compiled by the authors based on)

Table 1 Employment and unemployment Indicators

2018

2019

2020

2021 (January–May)

1

2

3

4

5

Average population, people

208,040

208,480

208,524

Natural increase in population, people

269

274

−319

Number of registered unemployed citizens as of January 1 of the current year, people

820

914

1058

1277

Unemployment rate as of January 1 of the next year

0.74%

0.74%

1.96%

1.16%

In the structure of unemployed citizens (%):

–

. Women

64%

Employment and unemployment

66%

59%

. Men

36%

34%

41%

. Young people aged 16–29

17%

14%

16%

. Rural residents

19%

17%

21%

. People of pre-retirement age

8%

20%

17%

. People with disabilities

7%

8%

5%

. Individuals who have been unemployed for a long time (more than a year)

20%

–13%

13%

. Laid-off workers—7%

7%

8%

9%

Employers posted 3155 vacancies (85%—working professions)

Employers posted 3336 vacancies (86%—working professions)

Employers posted 2329 vacancies (70%—working professions)

Average salaries, rubles

44,388

46,436

49,214

51,759.9

Average pension, rubles

14,616.14

15,537.70

15,668

16,548.80

Source Compiled by the authors based on Rosstat Regional Office of Republic of Tatarstan (2021)

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E. M. Kosacheva and A. R. Nurgalieva

Table 2 Characteristics of catering enterprises of different types in the city of Almetyevsk

Type of catering facility

Total number of enterprises

Seats

Visitor service area (m2)

Number of employees

Area (m2)

Cafe

62

4894

11,715

645

12,437

Restaurant

10

644

1610.7

117

2149.5

Canteen

21

812

2397.33

208

5461.92

TOTAL

93

6350

15,723

970

20,048

Source Compiled by the authors

average load of 79 people. Ten restaurants and 21 canteens also offer services to the public. The total number of seats is 6350 (Table 2). To increase the profitability of public catering enterprises, it is proposed to carry out their reconstruction and reorganization. In this case, special attention should be paid to the number of seats; an acceptable number is 60 seats. To determine the number of seats in all types of catering enterprises in the city of Almetyevsk, we used the method of calculation of seats per 1000 people (Shlenskaya et al., 2015). The total population of the Almetyevsky district is 208134 people, of which 76.23% live in the city of Almetyevsk (i.e., 158,429 people), of which 109,694 (64.24%) are able-bodied. Let us calculate the required number of seats in the city of Almetyevsk, where the population does not exceed 250,000 people, and the city is a district center. Nowadays: RN = 109,694*39/1000 = 4278 places (required number of seats). We find the degree of provision: S = R(fact)/RN*100% (degree of provision); S = 6350/4278*100% = 148.4%. The degree of provision exceeds the norm by 48.4%, i.e., placement of new public catering enterprises in the territory of Almetyevsk is inexpedient. Additionally, it is necessary to close or reorient enterprises designed for 2072 places so that the remaining enterprises would be profitable.

3

Results

The Tatar cuisine accounts for 13.7% of the market in the range of meals offered by catering enterprises in Almetyevsk, which puts them in the top three. Russian cuisine is less popular than in other cities of the Republic of Tatarstan; the share of Russian cuisine is noticeably lower—10.7%, and it is not in the top three most popular. The low representation of European cuisine (29.8%) in cafes and restaurants of Almetyevsk is probably because they are displaced by the Tatar cuisine. The share of Japanese cuisine (16%) remains unchanged (Afanasyev, 2015).

For effective operation of the network of catering and consumer services in the Almetyevsky district consumer cooperative society, it is necessary to solve the following key tasks: 1. To form networks of food businesses aimed at consumers from different segments of the population, who are able to: . Promote the national cuisine taking into account local specifics; . Provide and organize a variety of services for corporate, family, youth, and other leisure activities, including educational and entertainment events; . Introduce new technologies and innovations for cooking; . Organize takeout delivery. 2. To develop public catering network in the roadside; 3. To reprofile certain cafes to serve children, organize playrooms; 4. To ensure sustainable cooperation with consumer cooperatives for the organization of joint production of goods and ready meals; 5. To develop material and technical equipment of production lines for the manufacture of goods; 6. To participate in target programs at the federal and regional levels, including the organization of dietary meals in educational institutions for children; 7. To design an overall development (marketing) plan, including the following: . Identification of the volume of the population’s needs for food services; . Introduction of own network standards characterizing the quality of products and services; . Development and implementation of a cooperative brand that considers the characteristics of local businesses. 8. To ensure centralized supply of public catering enterprises by establishing links with the logistics system of consumer cooperation; 9. To improve qualifications and develop the level of competence of regional consumer cooperative workers;

Prospects for the Development of the Cooperatisve Movement …

10. To apply the experience of the leading catering enterprises of consumer cooperation, including achievements in the international practice of catering. To improve accessibility to the public and raise the quality of work of enterprises in the field of consumer services, it is necessary to perform the following activities: 1. To expand and modernize the network of consumer services centers, providing comprehensive services tailored to local specifics; 2. To serve the population in hard-to-reach areas and at home by organizing visiting forms of service provision; 3. To carry out activities to serve the population at seasonal fairs; 4. To increase the contribution of advanced material and technical equipment to product manufacturing processes; 5. To create and implement a marketing strategy that includes the following: . Identification of the market share of the main types of services provided to the population; . Organization of joint activities with various state, public, and other structures to work with socially disadvantaged groups; . Development and application of a single quality standard for public service, presented in the form of a single trademark; . Participation in regional programs aimed at the development of enterprises of the sphere of consumer services; . Regular analysis of the population’s need for services, considering their paying capacity; . Development of an individual approach in working with the population to provide additional services.

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Conclusion

Thus, the analysis of socio-economic development of the Almetyevsky district of the Republic of Tatarstan based on statistical data showed the prospects for the development of the cooperative movement in the field of public catering in this district. On its basis, we proposed a series of measures that can improve the efficiency of public catering and consumer services in the area and make them affordable and high-quality.

References Afanasyev, S. (2015, October 1). The catering market of the Republic of Tatarstan: What Tatarstan people eat. Realnoe Vremya. Retrieved from https://realnoevremya.ru/articles/14642. Accessed October 20, 2021. Federal State Statistics Service of the Russian Federation. (2020). The main indicators of socio-economic activity of the consumer cooperation of the Russian Federation for 2015–2020. In P. V. Malkov (Ed.), Russia in figures, 2020: Statistical digest. Moscow, Russia. Retrieved from https://rosstat.gov.ru/storage/ mediabank/GOyirKPV/Rus_2020.pdf. Accessed October 20, 2021. Maksaev, A. A., Nechitailov, A. S., & Zhukov, A. S. (2021). The role of consumer cooperation in the national food security of Russia in the context of the digitalization of the economy. Fundamental and Applied Research Studies of the Economics Cooperative Sector, 1, 23–33. Rosstat Regional Office of Republic of Tatarstan. (2021). The Republic of Tatarstan: A short statistical collection. Tatarstanstat. Retrieved from https://tatstat.gks.ru/storage/mediabank/Pzocri8B/Cтaт% 20cпpaвoчник_2020.pdf. Accessed October 20, 2021. Shlenskaya, T. V., Shaburova, G. V., Kurochkin, A. A., & Petrosova, E. V. (2015). Designing catering enterprises: A textbook for students universities. Troitsky Bridge.

Cluster Cooperation as a Factor in Ensuring Sustainable Development of the Region Olga V. Cherkashina , Oksana A. Nomokonova , Oksana V. Martynenko , Maryana V. Arkhipova , and Danuta B. Vasilkova

Abstract

Keywords

Purpose The article examines the role of a cluster in ensuring the sustainable development of the region, identifies its distinctive features as a form of cooperation within the framework of regional production. Attention is drawn to the characteristics of the conditions and requirements when creating a cluster, the advantages for its members are emphasized. Design/methodology/ approach The article uses general scientific methods: collection and analysis of theoretical material, its classification and processing, which later made it possible to draw scientifically grounded conclusions and to make proposals for improving cluster cooperation in Kaliningrad Region. Findings The main aspects of sustainable development of the region are considered and analyzed. The advantages of creating clusters are disclosed. The connection between clusters and cooperation has been substantiated. Originality/value In the course of the study, the problems of sustainable development of the region were identified. The characteristics of the cluster enterprises of Kaliningrad Region are given and new directions of development are proposed.

Cluster cooperation Regional economy Cluster policy Cluster development center Amber industry Business

O. V. Cherkashina (&) . O. A. Nomokonova . O. V. Martynenko . M. V. Arkhipova . D. B. Vasilkova Kaliningrad Branch of the Russian University of Cooperation, Kaliningrad, Russia e-mail: [email protected]

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JEL Classification

F02

1

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K33

Introduction

The processes of global economic development, the main goal of which is to maximize profits and to minimize costs, have led to serious degradation of all spheres of society: natural, social and even spiritual. At the same time, it is important to understand that the most serious environmental problems, growing global climate change, increasing inequality, manifested in both social and gender spheres, aggravating racial problems are only a part of the crisis phenomena, with the aggravation of which the world faced in the late XX—early XXI centuries. All this has made us reconsider our views on the further development of the world and realize the importance of sustainable development. The problem of sustainable development has been discussed under the auspices of the UN for 40 years, but in recent years its relevance for business and public administration has increased many times over.

O. A. Nomokonova e-mail: [email protected]

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O. V. Martynenko e-mail: [email protected]

All data used in the article were obtained from publicly available sources: Internet resources, official sites of public authorities, materials of international and all-Russian conferences, etc.

M. V. Arkhipova e-mail: [email protected]

Materials and Method

D. B. Vasilkova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_113

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Currently, sustainable development (hereinafter—SD) is understood as such development that meets the needs of the present but does not endanger the ability of future generations to meet their own needs (Fedorova et al., 2020). It seems quite obvious that the successful implementation of the concept of the transition of the Russian Federation to sustainable development must necessarily include a regional component since sustainable development of the country is impossible without ensuring such a development of its regions. For Kaliningrad Region, which is the object of our small study, ensuring sustainable development means organizing the material basis for the life of the region, which seems to be the main goal when the region is separated from the main territory of the Russian Federation. The problems of protecting the economic interests of organizations in Kaliningrad Region have become significantly aggravated. This is because Poland and Lithuania joined the EU. And Kaliningrad Region (hereinafter—KR) is both an exclave of Russia (concerning Lithuania and Poland) and a semi-enclave of the European Union (Sustainable development: society & economy: proceedings of the scientific & practical conference, 2016). Sustainable development should be based on the protection of the interests of various objects of the socio-economic system of the region, in particular, for Kaliningrad Region, which is an outpost of Russia in Europe, this will be one of the most important tasks in the Baltic region in connection with the fulfillment of the national interests of the Russian Federation. The eastward enlargement of NATO and the EU makes the problem of preserving the common economic space vital. This becomes especially clear in the context of an increase in the NATO military contingent on the border and the strengthening of Russophobic sentiments in Poland and in the Baltic states. The aggravation of the problem of sustainable and non-dangerous development of the exclave region, associated with the ongoing changes in the geopolitical space of Europe, determines the need to develop such management decisions that would consider the growing threats (Sustainable development: what it is & what is its significance, 2021). In these conditions, it seems very important to determine the approach to solving the problem of ensuring sustainable development and economic security of the region, because there are several of them. And one of them argues that sustainable development and economic security of the territory should be ensured by the efficiency of the region's economy itself. And the effectiveness of the regional economy, as it seems, is largely determined by the ongoing cluster policy.

Of course, understanding the importance of the regional component leads to the fact that new approaches in determining the content of economic regional policy are being formed. And this, in turn, forms a responsible attitude to the application of new methods and forms of managing the sustainability of the socio-economic development of the region. Since the SD of a separate region has characteristic features that will be determined by its geographical and geopolitical position, the structure of the regional economic complex, they should be considered when forming new methods of managing the region's economy. First of all, the sustainable development of the region is determined by the stable activity of the economic complex of the region. The sustainability of development associated with the achievement of a certain level of economic security presupposes the ability to neutralize possible internal and external threats, and most importantly, the ability to prevent or minimize risks that can cause serious damage to the regional economy. A production that can produce the required assortment of goods with minimal costs, while ensuring the optimal use of production factors and adherence to the established deadlines, can be considered steadily developing. Specifically, the stability of production volumes or the possibility of economic growth, which are achieved with the optimal use of resources, with the necessary level of economic and social security, contributing to an increase in the level of well-being of the population of the region, ensure the sustainability of the reproduction of the regional economic complex. Here is the optimal set of conditions for acquiring the stability of the socio-economic development of the territory, selected as a result of the analysis of the existing literature (Fig. 1) (Clusters. Website of the Ministry of Economy, Industry & Trade of Kaliningrad Region, 2021; Cooperation of small & medium-sized businesses, as well as selfemployed persons in order to develop cluster initiatives, 2020; Khairullov & Eremeev, 2012; Polyakov & Durov, 2017; Problems of economic growth & sustainable development of territories, 2020; Smarygina, 2016; Oznamets, 2018). The next step in achieving sustainable development of the region should be the determination of the characteristics of each of the considered conditions. Let us try to determine the following characteristics: firstly, a high degree of self-sufficiency of territory in the provision of all types of resources can be a characteristic for the level of selfsufficiency; secondly, the level of self-financing can be characterized through the development and implementation of an effective fiscal and monetary policy; thirdly, income received from the branches of the regional complex can be a characteristic of the level of self-repayment; fourthly, an important characteristic for the level of economic independence is a high degree of independence in economic policy.

Cluster Cooperation as a Factor in Ensuring Sustainable Development of the Region

sustainability

self-sufficiency level

self-financing level

self-repayment level

economic independence

Fig. 1 Conditions for achieving sustainable development of the region. Source Developed by the author

It seems quite obvious that if at least one of the above conditions is not met, then the achievement of sustainable development of the region is generally questioned. This circumstance forces the regional authorities to apply new forms of management of cooperation between industry and regional producers in the unified structure of the region's economy. Organizations created based on such cooperation and called clusters increase the sustainability of the region's development. After all, a cluster is a group of organizations located on the same territory and cooperating with each other. The commonality of the territory creates many positive aspects for these companies, so they can use common resources, quickly supply each other with products, and also share available knowledge. And it is particularly noteworthy that companies in the cluster cooperate, even if they compete with each other. Many problems of the regional economy can be successfully solved by such intersectoral complexes: new jobs will provide a reduction in unemployment, tax deductions from profits will increase the revenues of territorial budgets because the activities of such complexes can increase sales of the products of these enterprises in the domestic and foreign markets (Viktorova, 2019). The application of the cluster approach will be one of the most important directions in the formation of the modern economy. This is due to the fact that the concept of long-term socio-economic development of the Russian Federation covers the formation of a network of territorial-production complexes necessary to ensure the SD of the territory. Cluster policy has a positive effect on the competitiveness of not only the region but also the country as a whole. The

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development of production entails an increase in firms in the same industry, thereby increasing competition between them, motivating the use of innovative approaches. The concentration of firms in one industry in a particular region entails an increase in demand for the appropriate personnel, educational institutions are being reorganized to train specialists for work at the enterprises of the cluster, personnel from other regions come to the cluster when favorable working conditions are created and the necessary social infrastructure is available. The creation of a cluster is based on a high level of cooperation and competition. The composition of modern clusters includes both geographically close, as noted above, and geographically distant enterprises, the main thing is that there are unifying principles: common projects, knowledge, the experience of interaction and culture of relations. Cluster formation is characterized by the process of cooperation. This is due to the fact that economic entities included in the cluster cannot work separately from each other, they need interaction. Collaboration supports cluster division of labor and specialization while increasing productivity and resource efficiency. Scientists dealing with cluster problems argue that their formation in various industries is necessary for the successful development of the economy. This will help to increase the tax base, reduce unemployment and develop other important components of the economy. A cluster initiative is a set of measures for organizing joint activities of territorially localized legal entities and individuals to create a cluster aimed at developing and strengthening the competitiveness of its participants (Cluster Development, 2021). The success of cluster initiatives depends on how solid their foundation is, what kind of cooperation it is, and whether the conditions are met (Fig. 2). The requirements adopted by the Decree of the Government of the Russian Federation dated July 31, 2015 No. 779 “On Industrial Clusters and Specialized Organizations of Industrial Clusters” are imposed on the specialized organizations of the industrial cluster and the industrial clusters themselves. In the context of the formation of a cluster for Kaliningrad Region, the most significant requirements will be presented in Table 1. Effective management technologies are necessary to ensure sustainable development of the region, in particular, it is support and promotion of cluster initiatives. The Center for Cluster Development, which assists in the development of cooperation between business, educational institutions, government authorities, science and investors in the implementation of joint projects, was organized based on the Center Foundation “Entrepreneurship Support Fond of Kaliningrad Region” (microcredit company) in December 2017.

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Why have these industries pioneered the creation of clusters in the study region? First, this is because these sectors are the structureforming sectors of the regional economic complex. Second, this is the presence of favorable conditions for organizing these particular clusters: (1) the geographical position of the region, which is a marine, (2) reserves of mineral resources (after all, 90% of the world's amber reserves are concentrated in Kaliningrad Region), (3) a developed sectoral industrial infrastructure, (4) interesting historical monuments for organizing tourism, (5) a developed resort and sanatorium base, (6) the presence of educational institutions of the federal level, which should be members of the cluster. The main characteristics of the clusters of Kaliningrad Region are presented in Table 2.

development of a program for creating a cluster

conditions for the formation of a regional cluster

development of a policy that includes regional specifics, specifics of the industry and cluster members formulation of a cluster development strategy

building communications between cluster members

government support for cluster initiatives

4

expansion of the scientific and educational base

development of innovation infrastructure

Fig. 2 Conditions for the formation of a regional cluster. Source Compiled by the authors based on the materials studied (Decree of the Government of the Russian Federation, 2015)

Currently, there are 4 clusters in Kaliningrad Region: Amber industry cluster, Regional ship repair and shipbuilding cluster, Baltic metalworking cluster and Tourist cluster. Table 1 Requirements for creating a cluster in Kaliningrad Region

Conclusion

It is well known that amber is mined and processed in the region, which influences the development of a rich material and non-material culture. This means that this is a good opportunity for the development of the amber industrial cluster. That is why the cluster of the amber industry of the Kyrgyz Republic was the first to acquire the status of an industrial cluster, and in 2019, it has already been included in the list of industrial clusters of the Ministry of Industry and Trade of the Russian Federation. Currently, it includes more than 30 participants, in addition to enterprises, the cluster unites museums, business support institutions,

Number of participants

At least 10

Infrastructure composition

The presence of at least 1 educational organization of existing levels of education

Availability of technological infrastructure facilities

The presence of at least 2 objects (industrial parks, technology parks, technological incubators, etc.)

Availability of high-productivity jobs

At least 50 percent

Source Compiled by the authors based on the materials studied Cherkashina (2021)

Table 2 Characteristics of the clusters of Kaliningrad Region

Cluster name

Year of creation

Participants

Employed

Investment in the industry

Taxes paid

Amber industry cluster

2018

32 enterprises

689 people

350 million rubles

1.3 billion rubles

Shipbuilding and ship repair cluster

2018

33 enterprises

5641 people

500.6 million rubles

190.9 billion rubles

Baltic metalworking cluster

2018

13 enterprises

331 people

124.4 million rubles

245.7 million rubles

Tourist cluster

2020

41 participants

–

–

–

Source Compiled by the authors based on the materials studied Cherkashina (2012)

Cluster Cooperation as a Factor in Ensuring Sustainable Development of the Region

specialized educational institutions, banking organizations, an industry self-regulatory organization, in particular, the cluster participants are: Western branch of the Federal State Budgetary Educational Institution of Higher Education of the Russian Presidential Academy of National Economy and Public Administration, Immanuel Kant Baltic Federal University, Federal State Budgetary Educational Institution of Higher Education Kaliningrad State Technical University, Industrial zone of Kaliningrad Region “Khrabrovo”, Industrial park “Kovrovo”, etc. The creation of a cluster of shipbuilding and ship repair was determined by the status of Kaliningrad as a sea city and the rich history of the Baltic shipyard “Yantar”. The Baltic shipyard “Yantar” was founded in 1945 based on the German shipyard “Schichau”. 75 years of activity have turned the “Yantar” shipyard into a famous shipbuilder, both of warships and civilian ships. Currently, JSC “Yantar shipyard” is engaged in civil and military shipbuilding. Cluster members have the opportunity to build ships for various purposes. And since the largest shipyard “Yantar” is a member of the cluster, this is an opportunity to fulfill orders of the military-industrial complex and develop civil shipbuilding. The partners of the enterprises of the cluster are the largest manufacturers of ships and technological equipment in Russia, China, Germany and the USA. Today, the Baltic metallurgical cluster includes such enterprises as Stahlwerk Industrial Park (IMU JSC)—the management company, GC Baltic Metallurgical Company, “STREAM-Project” LLC, “European Chimneys” LLC, “Fest Brokerage Company” LLC. The study of the region's tourism market and the development of the cluster development program in this area are caused by a huge interest in the region in the context of the pandemic and the limited ability to travel abroad due to the closure of borders. Kaliningrad Region has become a very attractive region for domestic tourism. Together with the participants, the Center for Cluster Development plans to carry out a number of studies on the products and niches of the tourist market of Kaliningrad Region, as well as to develop, together with the RANEPA and the IKBFU, a program for the development of a tourist cluster, considering such tourist destinations as Chernyakhovsk, Gusev, Ozersk, Zheleznodorozhny and Pravdinsk, as well as Polessk, Slavsk, Sovetsk and Neman. In addition, the Center for Corporate Solutions of the “My Business” Foundation will continue to promote the services of cluster companies and to develop electronic services, to improve the quality of accommodation facilities (hotel classification), as well as to provide support for companies participating in Russian and foreign exhibitions and fairs.

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In the future, it is planned to create several more clusters: a pharmaceutical cluster at the “Ecobaltika” site, a machine-building cluster at the “Avtotor” site, and a GS innovation cluster in the field of radio electronics. Such an active cluster activity is explained by the serious advantages of participation in the cluster. A cluster is one of the ways of cooperation between organizations, which allows partners to define serious non-core tasks. With the help of the cluster, it is possible to create complex projects that will require the participation of a large number of participants, in particular, educational centers, development of new complex products, creation of infrastructure for R&D, promotion on the international market and organization of forums. The essential point is that participation in the cluster helps to attract additional financial resources. In addition, participation in a cluster is a number of important advantages: 1. the possibility of consolidated participation in state programs for the development of territorial and industrial clusters; 2. joint representation of the interests of cluster members in federal and regional authorities; 3. solving issues of training and retraining of personnel; 4. the presence of a single and understandable development strategy for all participants; 5. the creation and development of service competencies common to all participants. The existing experience of creating clusters in Kaliningrad Region, active cluster activities, stimulated by these advantages, allow us to assert that the creation and development of clusters reliably protect the economic interests of various participants in the socio-economic system of the region included in the cluster, ensuring sustainable development of the region.

References Cherkashina O. V. (2021) Economic security of the region and the problems of managing the processes of its provision. Problems of interregional connections = Problems of connections between regions: scientific almanac (pp. 59–63). Research Center named after Rumyantsev P.A. “Mysl”, International Institute of Political Sciences (Klaipeda), Moscow University of Finance and Law, MFUA. Cherkashina O. V. (2012). Regional aspect of ensuring economic security (on the example of Kaliningrad Region). Problems of interregional ties = Problems of connections between regions: scientific almanac (pp. 66–69). Research Center named after Rumyantsev P.A. “Mysl”, International Institute of Political Sciences (Klaipeda), Kaliningrad Institute of Economics, Branch of the St. Petersburg University of Management and Economics.

588 Clusters. (2021). Website of the Ministry of Economy, Industry and Trade of Kaliningrad Region. https://minprom.gov39.ru/deyatelnost/ regionalnaya-promyshlennaya politika/klastery. Data accessed November 09, 2021. Cluster Development. (2021). https://mbkaliningrad.ru/cluster. Data accessed. October 09, 2021. Cooperation of small and medium-sized businesses, as well as self-employed persons in order to develop cluster initiatives. (2020). Methodological guide for the creation and development of cooperation of small and medium-sized businesses, as well as self-employed persons. United Nations Development Program in the Republic of Belarus. Minsk. URL: https://www.by.undp.org. Data accessed November 02, 2021. Decree of the Government of the Russian Federation dated July 31, 2015 No. 779 “On industrial clusters and specialized organizations of industrial clusters”, Consultant Plus legal reference system. Fedorova I. S., Lobkova E. V., & Kozlova S. A. (2020). Development of a methodology for assessing sustainable development of the territories of the Krasnoyarsk Territory: monograph. Institute of Economics, Management and Environmental Management, Siberian Federal University. Khairullov, D. S., & Eremeev, L. M. (2012). Problems of the sustainability of the socio-economic development of the region. Bulletin of Kazan State Agrarian University, Kazan, 1, 73–76. Oznamets V. V. (2018). Problems of sustainable development of territories. Economic Consultant, 2(22). https://cyberleninka.ru/

O. V. Cherkashina et al. article/n/problemy-ustoychivogo-razvitiya-territoriy. Data accessed November 09, 2021. Polyakov, R. K., & Durov, A. V. (2017). Development of Kaliningrad Region in the aspect of creating cluster formations. Russian Entrepreneurship, 18(12), 1929–1948. Problems of economic growth and sustainable development of territories. (2020). In Materials of the V International Scientific and Practical Internet Conference. http://www.vscc.ac.ru/activity/ view?id=6307. Data accessed November 09, 2021. Smarygina, E. Yu. (2016). Agrarian cooperative cluster—As a form of organizing agricultural cooperation (on the example of the Tyumen region). 6.5(110.5), 132–135. https://moluch.ru/archive/110/27515. Data accessed November 02, 2021. Sustainable Development: Society and Economy: Proceedings of the Scientific and practical Conference (2016). Saint Petersburg. https://www.science-community.org/ru/node/210047. Data accessed November 02, 2021. Sustainable development: What it is and what is its significance. https:// www.forbes.ru/obshchestvo/425081-ustoychivoe-razvitie-chto-etotakoe-i-v-chem-ego-znachimost. Data accessed November 02, 2021. Viktorova E. V. (2019) Implementation of Sustainable Development Goals: European and Russian Experience: Collection of Scientific Articles Based on the Conference Materials. Publishing house of St. Petersburg State University of Economics. https://unecon.ru/ sites/default/files/sbornik_statey_s_oblozhkoy.pdf8. Data accessed November 02, 2021.

Development of Agricultural Cooperation in the Republic of Tatarstan Dafik F. Hafizov , Marsel M. Khismatullin , Fayaz N. Avkhadiev , Ilgizar G. Gainutdinov , and Lilia V. Mikhailova

mentation of reforms that in accordance with the particular regional conditions. The reform of agriculture, the formation of various forms of cooperatives in the Republic of Tatarstan was carried out on the basis of its recognition as a priority industry, the allocation of significant funds for the development of the industry, both from the republican budget and private investors. The relevant scientific and methodological recommendations on the implementation of the reform of agricultural organizations, the growth of agricultural cooperation have been developed and tested in the conditions of specific economic entities. The factors which have an adverse effect on cooperation are identified, and the ways to overcome them are determined.

Abstract

The purpose of the publication is to substantiate the methodological and methodological foundations for the development of a variety of forms of management, the development of agricultural cooperation, taking into account the specific conditions of the Republic of Tatarstan. Methodology The extensive material and the variety of its content made it necessary to use various approaches, methods and techniques of scientific research of such socio-economic processes as constructive, deterministic, retrospective, dynamic, statistical within the framework of systematic analysis. Results Ensuring the effective functioning of agricultural producers, food security in order to improve the living conditions of society is the most important modern problem facing the country. The study conducted by the authors of this work on the materials of agricultural organizations of the country and the Republic of Tatarstan shows that, along with other measures, the formation and ensuring the effective functioning of a multi-level economy in rural areas, development in accordance with the specific conditions of the functioning of various forms of cooperation is of great importance in solving this problem. However, the reform of agricultural organizations, the formation of new forms of management, including cooperatives, requires the development of methodological and procedural grounds for the imple-

D. F. Hafizov Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia M. M. Khismatullin (&) . F. N. Avkhadiev . I. G. Gainutdinov . L. V. Mikhailova Kazan State Agrarian University, Kazan, Russia

Keywords

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Agricultural cooperation Sector reform Priority industry Production efficiency Government support JEL Classification

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Introduction

The formation of a multi-level production, the transformation of on-farm and intersectoral relations, the issues of effective management of small businesses, citizens leading personal subsidiary farms, self-employed in rural areas, as well as the agro-industrial complex improvement of agricultural reform are of particular importance currently. The article discusses the issues of scientific and methodological support, the prospects for its development, the current state of the organization of entrepreneurial activity of small businesses, self-employed persons in rural areas, factors constraining their effective functioning.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_114

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Methodology

The measures of state support of agricultural producers, their interaction with local executive authorities, as well as the contribution to the gross production of agricultural products, socio-economic development of rural areas are also studied, promising directions based on the reform of the agricultural sector. The research was based on official regulatory documents, official data of Rosstat and Tatarstan State Statistics Service, personal observations of the authors, sociological surveys in certain municipal districts of the Republic of Tatarstan.

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Results

In the study of agricultural cooperation issues, the words of the great classic of Russian science Mikhail Lomonosov “… who does not know his past, has no future” are more relevant than ever. So the country began to reform the economy as a whole, including the agricultural sector (Asadullin et al., 2020; Hafizov et al., 2011, 2013; Isaicheva et al., 2013; Mikhailova et al., 2020; Order of the Ministry of Agriculture of the Russian Federation, 2020; Vafina et al., 2019). During the long, heated discussions on the transition to a market economy in the country, a plan for gradual transformations in this direction was developed. In relation to the agricultural sector, by the end of 1989, quite reasonable, in our opinion, proposals for its gradual reform were formulated. Key attention was paid to the formation of a multi-layered economy, with a widespread increase in the role of state financial support. These efforts were supposed to contribute to the broad development of cooperation and other organizational and legal forms of management (Avkhadiev et al., 2020; Khismatullin et al., 2021a; Klychyova et al., 2016; Mukhametgaliyev et al., 2018; Salakhutdinov et al., 2011). The implementation of this program in the initial period in the country was carried out chaotically. There was a lack of the necessary methodological and procedural base, a proven unified concept of reform. As a result, the large collective agricultural production of the country was destroyed in a short time, and the newly created peasant (individual) farms could not ensure the production of the necessary volume of agricultural products. All this has led to the fact that agricultural production in the country has sharply decreased, the food situation has deteriorated significantly (Khismatullin & Hafizov, 2019; Sitdikova et al., 2020). In the Republic of Tatarstan, in contrast to the all-Russian approach, the reform of agriculture, the formation of various forms of cooperatives was carried out on the basis of its

recognition as a priority industry, the allocation of significant funds for the development of the industry both from the republican budget and private investors, the development of a methodological basis for reforming agricultural organizations. In order to develop scientific and methodological foundations for the reform of agricultural enterprises into production cooperatives, we have investigated the collective farms named after Vakhitov Pestrechinsky, “Rodina” in the Mamadyshsky district, “New Life” in the Kukmorsky district and some other collective farms (Asadullin et al., 2020), on the basis of which many collective farms of the republic were reformed into agricultural production cooperatives. Based on the research materials, methodological recommendations were developed for the formation of peasant farms, followed by their unification into various inter-farm cooperatives, the creation of an association of peasant farms (Asadullin et al., 2020). With the accumulation of practical experience in the formation and organization of cooperatives and other new forms of management, the content of the methodological base was clarified. Great purposeful efforts have been made and continue to be made by the leadership of the republic to create new, market-oriented economic entities, to provide them with conditions for effective activity. At the present stage, significant work is being carried out in Russia and in the Republic of Tatarstan to develop agricultural cooperation as a more democratic and understandable form of economic organization for rural residents (Isaicheva et al., 2013; Khismatullin & Vashurov, 2014; Vafina et al., 2019). The Government of the country and regional authorities have adopted special programs in this direction, and considerable financial resources have been allocated (Avkhadiev et al., 2020; Khismatullin et al., 2021b; Klychyova et al., 2016; Order of the Ministry of Agriculture of the Russian Federation, 2020). In agricultural universities of the republic, Kazan Cooperative Institute (branch) The Russian University of Cooperation conducts training and skills development of managers and specialists of cooperatives (Tables 1 and 2). The conducted research and analysis of data on the development of agricultural cooperation in the Republic of Tatarstan indicate that the volume of consolidated state support in the republic has increased almost 24 times in five years and amounted to 375 million rubles in 2019. This amounts to only 1.37 million rubles per cooperative. Considering the data from Table 1, the number of operating and reporting cooperatives has doubled. But, nevertheless, due to the lack of financial resources, only 36% of registered cooperatives carry out full-fledged practical activities. As for the number of members of cooperatives, it has increased more rapidly over the years—by 8.4 times.

Development of Agricultural Cooperation in the Republic of Tatarstan Table 1 Statistics in the Republic of Tatarstan in 2017– 2019

591

Number of registered ACCs, units Including operating and reporting cooperatives, units

2017

2018

2019

206

252

273

48

58

98

494

1076

4159

Money proceeds of ACC, million rubles

1057

1411

2400

Budget support of ACC, million rubles

150

316

484

Number of members, units

Source: Developed by the author on Ministry of Agriculture and Food of the Republic of Tatarstan (2021)

Table 2 Financing of peasant (individual) farms, personal subsidiary farms and agricultural consumer cooperatives in the Republic of Tatarstan for 2019

Directions of state support

Amount, million rubles

Grants

1300

Subsidies for personal subsidiary farms

522

including for keeping cows and goats

367

Unrelated support in the field of crop production

216

Livestock subsidies

186

Subsidies for agricultural machinery

95

Subsidies for crop production

68

Access roads to family farms

14.5

Other types of support

134

Total

2535.5

Source Developed by the author on Ministry of Agriculture and Food of the Republic of Tatarstan (2021)

However, money proceeds, although it has increased in absolute figures per one member of the cooperative, it has significantly decreased: from 2.3 to 0.6 million rubles. The conducted research shows that the role of households of the country’s population in the production of labor-intensive products is especially high. Thus, in 2020, the volume of agricultural production in households amounted to 1.68 trillion roubles (an increase of 1.1%, in comparable prices, a decrease of 3.3%), in peasant (individual) farms—873.4 million rubles (an increase of 10.1%, in comparable prices—by 3.8%) (Asadullin et al., 2020; Avkhadiev et al., 2020; Mikhailova et al., 2020). In the structure of gross agricultural production of peasant (individual) farms 42%, the share of farmers in gross agricultural production increased from 13.7% in 2019 to 14.3%, and the production index exceeded 103.8%. In 2016–2020, in peasant (individual) farms, the increase in livestock and poultry production (for slaughter) amounted to 25%, milk— 38%, eggs—45%, and in the horticulture industry, the total production increased from 10 to 23% (Asadullin et al., 2020; Avkhadiev et al., 2020; Mikhailova et al., 2020). In the Republic of Tatarstan, state support is also provided for personal subsidiary farms, various types of subsidies are applied (Table 2). For 2021, 19 billion rubles are provided for under this program, including 13.9 billion rubles laid within the framework of “compensating” and “stimulating” subsidies,

as well as the registration of personal subsidiary farms as peasant (individual) farms. Analysis of the effectiveness of support measures revealed that the most effective and popular support measure is concessional lending. In the reporting year 2020, the amount of investment loans issued to small businesses amounted to 39.65 billion rubles, which is 55% more than in 2019, and in 2019 there was an increase in short-term lending—58.03 billion rubles (+7%).

4

Conclusion

Training and skills development of managers and specialists of agricultural cooperatives should outpace the growth rate of the number of cooperatives. The cooperative form of management is more democratic and understandable. It is based on compliance with all the principles of the formation and organization of the activities of cooperatives, the organization of fair intra-cooperative relations. Failure to adhere to these principles leads to distrust in the team and the collapse of the cooperative. Negative examples of cooperative activities can have a negative impact on the cooperative movement. Consequently, in the process of training and skills development of cooperative personnel, serious attention should be paid, in our opinion, along with special issues on business management and the implementation of the above

592

principles, the formation of fair intra-cooperative relations. In order for cooperatives to fulfill their social functions related to the employment of the rural population, the development of traditional industries for this sphere, it is necessary, in our opinion, to implement a number of measures both on the part of the cooperatives. This would allow a greater number of start-up cooperatives to use the help of the state to organize their activities for the production, processing, sale of products, provision of various types of services. It is necessary to update the current legislative framework on cooperatives, as it significantly regulates the activities of cooperatives, reduces their independence. It is important that participation in cooperatives is beneficial to peasant (individual) farms, citizens who run a personal subsidiary farm. It is also required to develop and improve the activities of extension services by qualified agricultural specialists, the implementation of rational use of available resources by cooperatives themselves.

References Asadullin, N., Avkhadiev, F., Gainutdinov, I., & Mikhailova, L. (2020). Development of the agricultural sector in the Republic of Tatarstan. In Bio Web of Conferences. International Scientific-Practical Conference “Agriculture and Food Security: Technology, Innovation, Markets, Human Resources” (FIES 2020) (p. 00117) Avkhadiev, F. N., Asadullin, N. M., Gainutdinov, I. G., & Mikhailova, L. V. (2020). Justification of promising areas of development of agricultural organizations. In Bio Web of Conferences. International Scientific-Practical Conference “Agriculture and Food Security: Technology, Innovation, Markets, Human Resources” (FIES 2020) (p. 00100) Hafizov, D. F., Khismatullin, M. M., & Isaicheva, E. S. (2013). The essence and significance of entrepreneurship in the context of institutional transformations. Bulletin of Kazan State Agrarian University, 1(27), 55–58. Hafizov, D. F., Khismatullin, M. M., Isaicheva, E. S., & Khsmatullin, M. M. (2011). The development of forms of management in the agricultural sector over 20 years of reform. Bulletin of the Kazan State Agrarian University, 1(19), 82–84. Isaicheva, E. S., Hafizov, D. F., & Hismatullin, M. M. (2013). Issues of development of institutional transformations in the agricultural sector. Bulletin of the Kazan State Agrarian University, 1, 51–54. Khismatullin, M. M., & Hafizov, D. F. (2019). Issues of development of small forms of management and cooperation in rural areas. Bulletin of Kazan State Agrarian University, 1(52), 138–144. Khismatullin, M. M., Khismatullin, M. M., Valiev, A. R., Rahim, A., & Komissarov, A. V. (2021a). The role and place of irrigated agriculture in the production of agricultural products and its economic efficiency (experience of the Republic of Tatarstan). Bulletin of Kazan State Agrarian University, 3(63), 160–166.

D. F. Hafizov et al. Khismatullin, M. M., Mukhametgaliev, F. N., Asadullin, N. M., Avkhadiev, F. N., Khismatullin, M. M., & Ullah Raheem (2021b). Implementation of government support measures for reclamation as an incentive for the development of the agricultural industry: Experience of the Republic of Tatarstan. In Bio Web Conference International Scientific-Practical Conference “Agriculture and Food Security: Technology, Innovation, Markets, Human Resources”, (FIES 2021b) (p. 00080). https://doi.org/10.1051/ bioconf/20213700080/ Khismatullin, M. M., & Vashurov, M. V. (2014). City and rural tourism in the context of destinational development of tourist-recreational potential of the Republic of Tatarstan. The Bulletin of Kazan State University of Agrarian University, 2(32), 5–10. Klychyova, G. S., Kuznetsov, V. P., Lapayev, D. N., Lapayeva, O. N., & Avchadiev, F. N. (2016). Multi-Criteria Decision Making in Economy and Preferred Alternatives Selection Risk Governance and Control. Financial Markets and Institutions, 6(3), 70–73. Mikhailova, L. V., Avkhadiev, F. N., Asadullin, N. M., & Gainutdinov, I. G. (2020). State regulation of the development of small business forms. In B cбopникe: Bio Web of Conferences. International Scientific-Practical Conference “Agriculture and Food Security: Technology, Innovation, Markets, Human Resources” (FIES 2020) (p. 00095). Ministry of Agriculture and Food of the Republic of Tatarstan. (2021). Analytical materials. Official Tatarstan. https://agro.tatarstan.ru/ analytic.htm. Data accessed October 28, 2021. Mukhametgaliyev, F. N., Hafizov, D. F., & Khismatullin, M. M. (2018). Features of the modern stage of the development of a multicultural economy. Bulletin of Kazan State Agrarian University, 3(50), 157–161. Order of the Ministry of Agriculture of the Russian Federation. (2020). On approval of lists, forms of documents provided for by the rules for the provision and distribution of subsidies from the federal budget to the budgets of the constituent entities of the Russian Federation for the creation of a system of support for farmers and the development of rural cooperation, given in Appendix No. 6 to the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets, approved by the Decree of the Government of the Russian Federation dated July 14, 2012. No. 717, as well as on setting the deadlines for their submission, January 28, 2020 No. 26. http:// publication.pravo.gov.ru/Document/View/0001202003240009. Data accessed October 08, 2021. Salakhutdinov, F. N., Khismatullin, M. M., & Iskhakov, I. R. (2011). Alternative financing models for small and medium-sized enterprises in the agro-industrial complex. Bulletin of Kazan State Agrarian University, 2(20), 52–54. Sitdikova, L. F., Mukhametgaliev, F. N., Khismatullin, M. M., Asadullin, N. M., & Mikhailova, L. V., (2020). Bio Web of Conferences. International Scientific-Practical Conference “Agriculture and Food Security: Technology, Innovation, Markets, Human Resources” (p. 00083). Vafina, L. T., Khismatullin, M. M., Safiollin, F. N., & Khismatullin, M. M. (2019). Comparative evaluation of productivity of ryegrass and ryegrass-goatling grass stands affected by different mineral and organomineral nutrition. In IOP Conference Series: Earth and Environmental Science. The Proceedings of the Conference AgroCON-2019 (p. 012109)

Industrial Cooperation in Chuvashia in the Post-war Years: Historical and Legal Aspect Leonid A. Taymasov , Olga G. Vyazova , Nikolai A. Petrov , Valeri V. Andreev , and Elizaveta M. Mikhailova

state-owned enterprises that were actively built in Chuvashia in the 1950s and 1960s. The priority of ideological approaches in the economic policy of the state hindered the development of producers’ cooperation and led to its liquidation. Researchers believe that the experience of incfdustrial artels can be useful in the development of small and medium-sized businesses in modern conditions.

Abstract

The article analyzes the historical and legal aspects of the activity of the producers’ cooperation in the post-war decades on the materials of the Chuvash ASSR on the basis of the study of literature and archival documents. Relying on an institutional approach and applying systematic and comparative research methods, the features of the development and transformation of this industry in the conditions of the restructuring of the national economy into a peaceful course and the further strengthening of the Soviet economic model are studied. It is shown that the restoration of the production of consumer goods were the most urgent tasks of the Soviet leadership after the war. During this period, producers’ cooperation continued to occupy a prominent place in the national economy of the republic. About 38% of industrial workers were employed in it, and it provided almost all the production of consumer goods. The features of the state cooperative policy are considered, the correlation of ideological, administrative and economic principles in its implementation is shown. To improve production indicators, the authorities actively applied administrative measures, established strict control over the activities of all industry structures (managerial, production, trade). At the same time, the producers’ cooperation did not receive economic support from the state, exhausted internal development resources and gradually it began to lose the primacy in the production of consumer goods to

L. A. Taymasov (&) . V. V. Andreev Cheboksary Cooperative Institute (branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] V. V. Andreev e-mail: [email protected] O. G. Vyazova . N. A. Petrov Chuvash State University named after Ulyanov I.N, Cheboksary, Russia

Keywords

. . .

..

Producers’ cooperation Economic policy The Chuvash ASSR Government resolutions Consumer goods Private enterprise activity JEL Classification

H 56

1

Introduction

Industrial artels on the territory of Chuvashia appeared in the early twentieth century. In the conditions of the First World War, some artisans united into labor artels. With the establishment of Soviet power, cooperation began to be considered as a form of socialist economic management. During the years of the new economic policy, the producers’ cooperation was institutionalized. In 1922, the Chuvash Union of Producers’ Cooperatives “Chuvashproizvodsoyuz” was established. Collectivization and industrialization in the country have brought a new impetus to the development of producers’ cooperation. The sphere of economic activity gradually expanded, the number of its members grew. Cooperative associations included industrialagricultural cooperatives, mechanized artels with socialized inventory, associations of artisans with the distribution of raw materials and the sale of products through the union, partnerships with individual procurement of raw materials,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_115

593

594

L. A. Taymasov et al.

but selling products through the union. In 1940 the producers’ cooperation of the republic united four structures, in which there were 165 artels with 9363 employees, respectively: “Chuvashpromsoyuz” (The Chuvash Union of Multi-Field Cooperation)—53, 1531, “Chuvashshveypromsoyuz” (The Chuvash Trade Union of the Garment Industry), —32, 1763, “Chuvashdrevpromsoyuz” (The Chuvash Republican Union of Woodworking Producers’ Cooperation)—38, 3019, “Chuvashtarpromsoyuz” (The Chuvash Republican Union for the Production of Soft Containers)— 42, 3050) (Vyazova, 2012a). The number of people employed in industrial artels was 37.2% of the number of workers in industrial enterprises. Producers’ cooperation made a huge contribution to the production of goods for the population. In 1939, the share of consumer goods in the total volume of goods produced by the artels of the Chuvash Production Union was 91.3% (Vyazova, 2012a). During the war, the enterprises of producers’ cooperation performed military orders, supplied a variety of products to the front lines and to the home front. During the post-war reconstruction, the population was in dire need of consumer goods. Industrial enterprises focused on military products could not quickly switch to the production of consumer goods. Therefore, the industrial cooperation, as a more mobile production structure, during the recovery period was considered as the most important component of the Soviet economy, capable of switching to the production of goods for the population.

2

Methodology

This topic was reflected in the publications of Andreev and Antonova (2010), Andreev et al. (2017), Vyazova (2012b), Nazarov (1995), Ivanov (1957), Yakovlev (2009) and others. However, within the specified spatial and temporal framework, the activity of the producers’ cooperation is considered for the first time in the historical and legal aspect. The article is based on the analysis of sources, primarily archival documents. The authors aimed to show the impact of historical conditions and state-legal measures on changes in the forms and methods of work of producers’ cooperation enterprises in the Chuvash Republicand its gradual displacement from the Soviet economic system. The institutional approach was widely used in the study, which made it possible to highlight, firstly, the state economic policy during the restoration of the national economy in the post-war years and, secondly, to show the peculiarities of the functioning of producers’ cooperation in a particular region. The use of comparative and systematic methods made it possible to analyze the historical and legal aspects of state policy in relation to this economic structure and identify the reasons for its liquidation. The study of the historical

experience of the activity of producers’ cooperation, which was an essential element in the economic system of the country, can be used in the organization of small and medium-sized businesses.

3

Results

After the war, cooperative enterprises of Chuvashia were united into several organizations: “Chuvashdrevpromsoyuz”, “Chuvashtarpromsoyuz”, “Chuvashpromsoyuz”, “Chuvashshveypromsoyuz”, “Chuvashkoopinsoyuz” (The Chuvash Union of Cooperative Artels of the Disabled). In accordance with the objectives of meeting the demand of the population for consumer goods, on November 9, 1946, a resolution of the Council of Ministers of the USSR was adopted, which provided the producers’ cooperatives with new advantages in pricing and procurement of raw materials. Artel trade and the distribution of 20% of profits in the form of additional earnings were restored (Nazarov, 1995). The specific tasks defined by the Soviet government on November 18, 1946, were considered at a meeting of the Department of Industrial Cooperation of the Chuvash ASSR with the participation of all heads of producers’ unions. At the general meetings of the Cheboksary city artels, measures to increase the production of consumer goods were discussed (State Historical Archive of the Chuvash Republic, 2021a). The action plan was formed on the basis of recommendations sent by the Department of Industrial Cooperation under the Council of Ministers of the RSFSR. It was supposed to expand the trade network of the producers’ cooperation system, create buying-up centers for the procurement of agricultural raw materials and products, increase the production of goods for the population, as well as the volume of various services provided to the population. The activities of the producers’ cooperation were also included in the economic agenda of the government of the Chuvash ASSR. On December 6, 1946, the Resolution of the Council of Ministers of the Chuvash ASSR “On the development of cooperative trade in food and manufactured goods in cities and towns and on increasing the production of consumer goods in the industrial cooperation system of the Chuvash ASSR” was adopted. In January 1947, preliminary results were summed up on the implementation of the decisions of the Union and republican governments. Cooperators significantly exceeded the planned indicators: two stores were opened instead of one, 20 stalls-tents instead of five with a turnover of 979.3 thousand rubles instead of 300 thousand rubles. The practice of selling manufactured products has shown a huge demand of the population for consumer goods. In particular, there was a high demand for ear-flapped hats, yakut hats, muffs for adults and children, toys, New-Year tree decorations, runner carpet, carpets,

Industrial Cooperation in Chuvashia in the Post-war Years: Historical and Legal Aspect

barrels, pottery ware, table and pocket mirrors, felt boots, etc., which was explained, in our opinion, by prices set below commercial and market (State Historical Archive of the Chuvash Republic, 2021b). Some artels opened canteens and workshops for processing agricultural products. Cooperators also sold their products at below-market prices, which in turn affected their decline in the catering sector (State Historical Archive of the Chuvash Republic, 2021c). The producers’ cooperation could not maintain similar high rates of growth of the material and technical base and production. There were several reasons for this: the lack of qualified personnel, which was primarily due to large human losses during the war, high staff turnover negatively affected the quantitative and qualitative indicators of the industry. That matter was presented to the Government of the Chuvash ASSR in April 1948. Official sources registered a turnover rate of 38% among the members of the producers’ cooperative artels (State Historical Archive of the Chuvash Republic, 2021d). To overcome the current negative situation, a concrete action plan was developed. In order to improve the cultural and living conditions of the members of the artels, it was recommended to the Board of the unions of industrial cooperation and the Department of Industrial Cooperation of the Chuvash Republic to promote individual housing construction as much as possible, to carry out repair and renovation of dormitories, workers’ houses, consumer service buildings (canteens and retail outlets), to improve the work of canteens, clubs, activity rooms. It was supposed to improve the training of personnel through individual and team apprenticeships, technical training, training in Stakhanov schools and advanced training courses. The document included inspections of the activities of the Tsivilsk Vocational School, which is under the jurisdiction of the Department of Industrial Cooperation of Chuvashia, contained recommendations to the Industrial Insurance Offices of the Chuvash ASSR to radically improve labor protection and safety in the artels. The Ministry of Health of the Chuvash ASSR was also instructed to systematically check the sanitary condition of enterprises, dormitories, canteens and children’s institutions and establish constant monitoring of compliance with sanitary standards (State Historical Archive of the Chuvash Republic, 2021e). Paying attention to the creation of favorable conditions for the successful development of producers’ cooperation, the country’s leadership continued to pursue a policy of serious control over producers’ cooperation. In the post-war years, it acquired the character of a struggle against private entrepreneurial activity. Several government decisions were devoted to this issue in 1948 and in 1950. On April 20, 1948, arepublican meeting of the most active members of the producers’ cooperation, disabled people’s cooperatives and the local industry of Chuvashia was held, where the issues of combating private entrepreneurship took an important place.

595

The Soviet and party organs of the Chuvash ASSR took this problem under close control. On April 22, 1948, ameeting of the governing cooperative, judicial-investigation and financial bodies under the Council of Ministers of the Republic was held, where it was proposed to carry out a comprehensive review of cooperative enterprises and artels. During the inspection organized by the Main Directorate for Producers’ and Consumer Cooperation under the Council of Ministers of the USSR for the Chuvash ASSR, it was revealed that in Chuvashia such forms of private entrepreneurial activity as the creation of fake artels, placing orders without issuing receipts, leasing of industrial and household enterprises by cooperative organizations, joining a cooperative for tax evasion, as well as fulfilling private orders for an increased fee (State Historical Archive of the Chuvash Republic, 2021f) were widespread. Such negative moments undermined the authority of cooperation among the population and even contributed to the growth of negative attitudes towards it. For example, the chairman of the artel “Red Invalid” of the Komsomolsky district of the “Chuvashkoopinsoyuz” system transferred, without the consent of the board, tar distillery to a private trader Kornilov of the same village. The produced tar, coal, turpentine were sold at market prices not only to collective farmers and sole proprietors, but also to collective farms that were in dire need of lubricants and were forced to exchange bread for tar from Kornilov (State Historical Archive of the Chuvash Republic, 2021g). The inspection also revealed facts of gross violations of the use of home-based work. As a result, 14 heads of cooperative organizations, 17 private individuals were brought to justice, 7 people were suspended from work and 19 people were subjected to administrative punishment (State Historical Archive of the Chuvash Republic, 2021h). The Senior Inspector of the Main Directorate of Trade and Consumer Cooperation under the Council of Ministers of the USSRfor the Chuvash ASSR recommended a thorough inspection of enterprises and the complete elimination of private entrepreneurial activity in cooperative organizations before October 1, 1948. Subsequent practice, however, showed that it was very difficult to counter these phenomena. In 1950 The Council of Ministers of the RSFSR returns to this problem again, having adopted on 18 November a resolution “On major abuses in the producers’, lumber cooperatives, as well as in disabled people’s cooperatives of the RSFSR and strengthening the fight against theft of cooperative property”. The adoption of this resolution has further intensified inspections of the work of cooperative enterprises by the Council of Ministers of the Chuvash ASSR. Large violations were found in the activities of construction artels, as well as those that were engaged in household services for the population. The least number of complaints were caused by the work of the artels of the “Chuvashshveypromsoyuz” (State Historical Archive of the Chuvash Republic, 2021i).

596

At the beginning of the 1950s, the attitude of the authorities towards producers’ cooperation changed. The impetus for this was the book by I.V. Stalin “Economic problems of Socialism in the USSR”, which stated that cooperative property is not consequentially socialist, and that it should be elevated to the level of public property. Although the industrial cooperation was not even mentioned in the work of I.V. Stalin, but only about collective farm property, this policy was applied primarily to industrial cooperation (Nazarov, 1995). There have been reorganizations in the system of producers’ cooperation aimed at the unification and consolidation of unions and artels. In 1950, the Chuvash Production Council was formed, which united “Chuvashshveypromsoyuz” “and Chuvashpromsoyuz”, while “Chuvashdrevpromsoyuz” and “Chuvashtarpromsoyuz” operated separately. In 1953, nevertheless the latter two unions became part of the Chuvash Production Council, and in December 1955 they were liquidated, and appropriate departments were created in the Chuvash Production Council to manage the sectoral artels (Ivanov, 1957). In 1953, the independent cooperation of the disabled was also liquidated. All the artels of “Chuvashkoopinsoyuz”, depending on the industry, were transferred to the corresponding producers’ cooperative unions. Most of them became part of the “Chuvashpromsoyuz”. In the early 1950s, the facts of direct interference of the authorities in internal corporate issues began to appear more and more often. So, on July 17, 1954, the leadership of “Chuvashpromsoyuz” had to seek support and assistance from the Deputy Chairman of the Council of Ministers of the Chuvash ASSR and the head of the industrial department of the Chuvash Regional Party Committee in connection with the illegal removal from office of the Chairman of the Board of the Kirov artel of Kozlovsky district comrade Adiatullin by the Deputy Chairman of the Kozlovsky district executive committee Pridchikov (State Historical Archive of the Chuvash Republic, 2021j). The Chairman of the Board of Adiatullin was reinstated by reconvening a general meeting of the artel members with the support of “Chuvashpromsoyuz”, of which the artel was a member. At the meeting, the cooperators strongly condemned Pridchikov’s actions, which fundamentally contradicted the Charter of the nonagricultural producers’ cooperative artel and violated cooperative democracy. The Plenum of the Central Committee of the CPSU in July 1955 it was proposed to transfer to the state industry all the artels that had lost the artisanal nature of production. On April 14, 1956, a decree of the Council of Ministers of the USSR was issued on the transfer of such artels to state industry. During the reorganization of 1956, the industrial cooperation lost a third of its enterprises, the most technically equipped (Nazarov, 1995). Nevertheless, the

L. A. Taymasov et al.

enterprises of producers’ cooperation continued to make a significant contribution to the production of consumer goods. In 1958 the cooperators produced 99.8% of the knit-wear clothes, 19.8% of felt boots, all the underclothes and furniture produced in the Chuvash Republic were manufactured at the enterprises of the producers’ cooperation (Soviet Chuvashia for 45 years (in numbers), 1965; State Historical Archive of the Chuvash Republic, 2021k). A similar situation was typical for the country as a whole. It was the cooperative industry that was the largest furniture manufacturer in the USSR. It accounted for 40% of furniture from the total output in the country. Cooperative enterprises also produced about 40% of the total production of knitwear (Evenko, 1954). In 1959 the cooperative industry of Chuvashia united 4909 enterprises, among which 616 were under the jurisdiction of the Chuvash Production Union. The artels produced dozens of types of products, including building materials, furniture, clothing, shoes, underwear, leather haberdashery, oil paints, canned fruits and vegetables, etc. (Boyko et al., 2009). But the fate of the producers’ cooperation has already been decided at the highest level. On July 20, 1960, the Central Committee of the CPSU and the USSR Council of Ministers issued a resolution, in which it was prescribed to transfer all artels to the state industry by August 20, 1960 (Nazarov, 1995). Ideological reasons played a major role in the adoption of state decisions that determined the fate of producers’ cooperation, since cooperative ownership of the means of production was recognized as less progressive than state ownership. In addition, the process of liquidation of the industry was carried out in a hasty and unreasoned manner, without taking into account the significant opportunities of the cooperative movement. As a result, many types of products for the population in Chuvashia have ceased to be produced.

4

Discussion

The activity of the producers’ cooperation of the Chuvash Republic in the post-war period is ambiguously evaluated in the scientific literature. Value judgments vary depending on the socio-political and socio-economic situation in the country. Thus, in the publications of the 1940s and in the works of the subsequent era devoted to the role and importance of cooperators in the restoration of the national economy after the war, a generally positive assessment was given. At the same time, they contain critical comments about the failures of certain planned indicators and complaints about the quality of goods. As the state policy regarding the cooperative sector of the economy changed, estimates of the contribution of the industrial cooperation

Industrial Cooperation in Chuvashia in the Post-war Years: Historical and Legal Aspect

to solving issues of supplying the population with consumer goods were adjusted. Supporters of the dominance of the political or ideological factor believe that after the publication of the article by I.V. Stalin “Economic problems of socialism in the USSR”, the fate of producers’ cooperation was predetermined. According to representatives of the economic approach to this problem, the success of industrial development in the country and the republic, industrial cooperation gradually lost its position in the national economic sector, as it could not compete with industry both in quality and in the cost of consumer goods. It is also important to take into account the advantages of centralized supply of food and industrial goods to the population.

5

Conclusion

During the Great Patriotic War, most of the enterprises of producers’ cooperation performed military orders, supplied a variety of consumer goods to the front lines and to the home front, becoming, on the one hand, the distribution apparatus of the state, on the other—the private sector. In the post-war period, the population was in dire need of consumer goods and the Soviet government took measures to improve the effectiveness of the producers’ cooperation, which was the most important industrial unit in the Soviet economy. The measures of state support at the stage of restoration of the national economy were timely and justified. However, the industry turned out to be unable to increase production capacity and began to experience difficulties: production plans were disrupted, financial losses increased due to poor technical equipment, as well as embezzlement and misappropriation. The party and government resolutions of the post-war period concerned overcoming negative phenomena in this structure. Ideological dogmas, on the one hand, the successes of the NTR and industrial development, on the other, led to the fact that industrial cooperation was ousted from the Soviet planned economic system. The resolution of the Central Committee of the CPSU and the Council of Ministers of the USSR of April 14, 1956 “On the reorganization of producers’ cooperation” (Resolution of the Central Committee of the CPSU & Council of Ministers of the USSR No, 1956) served as the basis for the liquidation of the industry: this served as the basis for the liquidation of the industry: its enterprises were transferred to state bodies, and share contributions were subject to refund in accordance with the charters of the artels. Producers’ cooperation has left a noticeable mark in the history of the economic development of the Chuvash

597

Republic. A comprehensive study of its activities is not only of scientific, but also of practical interest. The experience of the functioning of industrial artels can be useful in the organization of small and medium-sized businesses in modern conditions.

References Andreev, V. V., & Antonova, E. I. (2010). Legal regulation of international and foreign economic activities of the Chuvash republic in the conditions of globalization. Bulletin of the Cheboksary Cooperative Institute, 1(5), 92–102. Andreev, V. V., Mikhailova, E. M., Kalinina, G. V., Silvestrova, T. Y., Petrova, T. N., & Kozhanova, M. B. (2017). Model of professional motivation development for teachers’ activities in the educational process. Modern Journal of Language Teaching Methods, 7(5), 98– 107. Boyko, I. I., Kharitonova, V. G., Zakharov, D. A. (2009). History of the Chuvash New Age, Book 2: 1945–2005 (p. 151). Chuvash State Institute for the Humanities, Cheboksary. Evenko, I. A. (1954). The cooperative industry of the USSR and its role in the production of consumer goods (pp. 15, 17). Mscow, Publishing house Knowledge. Ivanov, P. I. (1957). Specialization and place of local government and co-operative industry (Vol. XVII, p. 146). Scientific notes of the Central Research Institute Issue. Nazarov, P. G. (1995). History of Russian industrial cooperation. 1799–1960 (pp. 89–90). Chelyabinsk. Resolution of the Central Committee of the CPSU, Council of Ministers of the USSR No. 474 of April 14, 1956 (as amended on April 13, 1973) “On the reorganization of the producers’ cooperation”. http:// docs.cntd.ru/document/901704896. Data accessed November 17, 2019. Soviet Chuvashia for 45 years (in numbers). (1965). Statistical collection (pp. 26–28). Cheboksary, Chuvash of publishing house. State Historical Archive of the Chuvash Republic. (2021a). F.203. Op.24. D.100. L.46. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021b). F.203. Op.24. D.100. L.48. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021c). F.203. Op.24. D.100. LL.49, 52–53. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021d). F.203. Op.24. D.186. L.47. URL: https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021e). F.203. Op.23. D.186. L.48–49. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021f). F.203. Op.24. D.185. L.162–164. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021g). F.203. Op.24. D.185. L.166. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021h) F.203. Op.24. D.185. L.177. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021.

598 State Historical Archive of the Chuvash Republic. (2021i) F.1775. Op.3. D.8. L.15–19. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021j). F.203. Op.24. D.1056. L.36–38. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. State Historical Archive of the Chuvash Republic. (2021k). F.1775. Op.12. D.43. L.15–16. https://giachr.kaisa.ru/giachr. Data accessed October 10, 2021. Vyazova, O. G. (2012a). Activities of industrial cooperation of the Chuvash ASSR in the field of personnel training in the post-war

L. A. Taymasov et al. years: achievements and problems (pp. 14–22). Problems of history and education of the peoples of Russia. Vyazova, O. G. (2012b). Industrial cooperation of the Chuvash ASSR in the conditions of the Great Patriotic War of 1941–1945: Organizational and financial aspects of the activity. Bulletin of the Russian University of Cooperation, 1(7), 16–20. Yakovlev, N. Y. (2009). History of trade of the Chuvash Republic: A collection of materials, documents, memoirs (pp. 16–151). Cheboksary.

Role of Agricultural Cooperation in the Development of Regional Food Markets Olga V. Kaurova , Alexander N. Maloletko , Elena I. Balalova , Alexander V. Tkach , and Valery A. Oganyan

agricultural products by rural households and farmers and their role in enhancing the competitiveness of agricultural producers in the agricultural markets of the regions.

Abstract

The paper aims to justify the role and place of agricultural consumer and production cooperation in developing regional food markets. The authors use methods of analysis, systemic approach, modeling and graphical representation of information, and the method of scientific abstractions. The research results show that the role of agricultural cooperation in developing regional food markets of agri-food products increases with the development of peasant (private) and personal subsidiary farms, individual entrepreneurs, and farmsteads in the agricultural sector. This direction of activity is conditioned by an increased state priority of national food security in the system of providing food to the population. The material basis for developing agricultural consumer cooperatives is small forms of farming functioning in the agro-industrial complex. The authors analyze the level of development of agricultural consumer cooperatives and their participation in the cultivation of agricultural products. The authors substantiate the necessity for expanding the innovative activity of the workers of agricultural cooperatives and providing more comprehensive and qualitative observance of cooperative principles in the work of cooperatives. Production activity of agricultural cooperatives contributes to the more effective development of agriculture. It increases the production of O. V. Kaurova (&) . A. N. Maloletko . E. I. Balalova . A. V. Tkach . V. A. Oganyan Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. N. Maloletko e-mail: [email protected] E. I. Balalova e-mail: [email protected] A. V. Tkach e-mail: [email protected] V. A. Oganyan e-mail: [email protected]

Keywords

.

..

.

Agricultural cooperation Rural areas Agricultural products Competitiveness Production JEL Classification

P13

1

Introduction

Since ancient times, people have solved complex problems together, combining and cooperating their efforts to overcome difficulties and survive. There appeared communities, artels, associations, and other collective associations. Subsequently, cooperatives and other cooperative structures emerged for the joint organization of labor and production activities. Such concepts as “cooperator,” “cooperative,” and “cooperation” became widespread and deposited in people’s minds as forms of mutual aid. The main features of cooperation include voluntary membership and democratic formation of elected bodies and governance of the cooperative, where each member has one vote. Income in the cooperative is distributed according to the degree of participation of members in the cooperative’s work. Many authors cite the following most important distinguishing features of cooperation: . Availability of information about the cooperative’s activities; . Social goals; . Partial compartmentalization of economic work rather than combining all aspects of activity into one enterprise.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_116

599

600

O. V. Kaurova et al.

In reality, it is not easy to find a cooperative that simultaneously observes all the above attributes. In today’s economic realities, cooperation as a form of the organization of production is of particular scientific and practical interest. With Russia’s accession to the WTO and the ongoing changes in the economic and social life of the country, cooperation in all its types and forms has an important role. Cooperation is closely related to the social division of labor—the greater the division of labor, the greater the need to develop cooperation. In the area of agricultural activity, cooperation is quite often interpreted as the organization of agricultural cooperatives, representing independently operating enterprises formed by the voluntary association of free citizens and legal entities, creating a joint material property for common use in solving their problems. In examining the theoretical basis of the cooperative movement in agriculture, let us touch on the essence of the concepts of interpretation of the words “cooperation” and “cooperative.” In a broad sense, cooperation refers to any cooperation in which individual business entities or individuals coordinate their activities. In practice, this manifests itself in establishing cooperative ties between farms, industries, regions, and districts. Cooperation brings together several business entities to work more cohesively to achieve the results. Cooperation is sometimes interpreted as an alliance of certain people or organizations to work together efficiently, organize the purchase of large quantities of goods in bulk at a lower price, etc. Cooperation is often seen as a system of agricultural cooperatives (regardless of whether they are consumer or production) and their unions created by producers of agricultural products (including cooperatives of the first level). The paper aims to substantiate the role and place of agricultural consumer and production cooperation in developing regional food markets. To achieve the set goal, it is necessary to argue the ways of developing agricultural consumer cooperation and formulate proposals on the directions of cooperation of producers, processors, and trading networks, considering the existing potential and economic levers of regulation.

2

Materials and Methods

The research focuses on the problems hindering the development of agricultural cooperation. A significant contribution to the science of cooperation was made by Russian scientists A. I. Chuprov, M. I. Tugan-Baranovsky, N. P. Makarov, S. L. Maslov, A. N. Chelintsev, A. V. Chayanov (Chayanov, 1909, 1924, 1925, 1927, 1929), and others. They elaborated proposals on the directions and forms of the development of agricultural cooperation and

suggested methodologies for the formation of horizontal and vertical cooperatives in agriculture. The present study also draws on the work of authors such as A. R. Nabieva (Nabieva, 2019a, 2019b, 2019c; Tkach & Nabieva, 2019), A. V. Tkach (Balalova et al., 2019; Kaurova et al., 2020), A. E. Suglobov (Balalova et al., 2019), E. I. Balalova (Balalova et al., 2019), A. A. Maksaev (Balalova et al., 2019), N. A. Ovcharenko (Balalova et al., 2019), O. V. Kaurova (Kaurova et al., 2020; Maloletko et al., 2021), A. N. Maloletko (Kaurova et al., 2020; Maloletko et al., 2021), and V. A. Oganyan (Maloletko et al., 2021). The scientific works of scientists present the results of research on the problems of development of agricultural consumer cooperation and the relationship of partners in vertical cooperatives of producers of agricultural products, processors, wholesalers, and retailers. Currently, the specificity of economic relations in the named area is not sufficiently investigated and formulated in the scientific literature. This fact prompted the authors to formulate the goal and objectives of the research.

3

Results

The study of the development of agricultural consumer cooperation is of scientific and practical interest. Agricultural consumer cooperation with its purchasing, marketing, and processing enterprises can be considered part of the economy in rural areas, contributing to the growth of marketability of agri-food products produced by peasants, farmers, and individual entrepreneurs. In a broader sense, the system of agricultural consumer cooperatives can be seen as a specialized socio-economic sphere of the economy in the countryside. The development of agricultural consumer cooperation leads to the consolidation of the production capacity of the processing industry and the development of a network of trade in agri-food products and agricultural raw materials. Agricultural cooperation in the country’s regions is developing as labor division in the agricultural sector deepens. As a rule, the cooperation of business entities is accompanied by the concentration of production and growth of labor productivity based on the active implementation of innovative achievements in the production practice. However, agricultural consumer cooperatives operate in an unstable manner in many regions, which does not ensure the fulfillment of the results expected by the partners in cooperation. Agricultural cooperation in Russia is developing following the objective economic law of the social division of labor. In the agro-industrial complex of the country, there are production and consumer agricultural cooperatives of different areas of specialization. In agriculture, cooperation represents various forms and types and acts as a significant

Role of Agricultural Cooperation in the Development of Regional Food Markets

multidimensional phenomenon, representing a set of agricultural organizational production and consumer cooperatives. By its essence, agricultural cooperation operates within the framework of economic and market relations. Prerequisites and economic basis for the formation of agricultural consumer cooperatives of various types and specializations are small forms of economic activity in the agricultural sector, which include peasants and farmers, individual entrepreneurs, and other rural households. In a consumer cooperative, the interests of all member-partners must be respected. The cooperative is designed to serve its members, who are the owners of the cooperative. The cooperative is accountable to its members. A. V. Chayanov emphasized that “… the ideal apparatus of agricultural production is not at all a large latifundium and not an individual peasant farm, but a new type of economic structure. In this type of economic organization, the organizational plan is split into a number of links, each of which is organized in the sizes that are optimal for it” (Chayanov, 1924). The practice of cooperation in the agricultural sector of Russia shows that the consumer agricultural supply and marketing cooperatives, formed by peasants, successfully solve a considerable number of problems in favor of rural households, getting rid of the services of all kinds of intermediaries, profiteering in most of them, and undercutting the purchase prices of agricultural products and overcharging for services.

Table 1 Number of agricultural consumer cooperatives

Federal districts

601

Peasant farms persisted, were further developed, and had several advantages. A. V. Chayanov emphasized that when creating cooperatives, one should consider the specialization of production and the set and volume of grown agricultural products. A special role is played by the production potential of the material base, forms of work organization, and the level of mechanization of production processes. Simultaneously, it is necessary to analyze the state of affairs in the economy, determine the effectiveness of manufactured products, and uncover and identify opportunities to improve economic efficiency in a cooperative environment. Farmers are interested in participating in a cooperative only when they benefit from it, including guaranteed sales of their products and obtaining economic benefits. The success in developing farmers’ cooperation depends on government support. A strategic direction for the successful development of small agricultural entrepreneurship in Russia is unification into cooperatives. At the beginning of 2021, there were 5816 agricultural consumer cooperatives in Russia, of which 1593 were processing cooperatives, 870 serving cooperatives, 888 trade cooperatives, 303 supply cooperatives, 764 credit cooperatives, and 1398 other cooperatives. The Volga Federal District has the largest number of cooperatives—1686 (29.0% of their total number in Russia), followed by the Central Federal District—1472 (25.3% of the total number in Russia) (Table 1).

Types of agricultural consumer cooperatives Processing

Serving

Trade

Supply

Total Credit

Other

Russia

1593

870

888

303

764

1398

5816

Central

235

198

204

124

354

357

1472

Share in Russia, %

14.8

22.8

23.0

40.9

46.3

25.4

25.3

Northwestern

52

31

19

10

40

47

199

Share in Russia, %

3.3

3.6

2.0

3.3

5.2

3.4

3.42

Southern

121

94

116

16

93

109

549

Share in Russia, %

7.5

10.8

13.1

5.3

12.2

7.8

9.4

North Caucasus

110

39

40

8

17

184

398

Share in Russia, %

6.9

4.5

4.5

2.6

2.2

13.2

6.8

Volga

576

303

235

91

111

370

1686

Share in Russia, %

36.2

34.8

26.5

30.0

14.5

26.5

29.0

Ural

54

62

79

18

39

54

306

Share in Russia, %

3.4

7.1

8.9

6.0

5.2

3.9

5.3

Siberian

259

64

151

20

27

103

624

Share in Russia, %

16.3

7.4

17.0

6.6

3.5

7.4

10.7

Far Eastern

186

79

44

16

83

174

582

Share in Russia, %

11.6

9.0

5.0

5.3

10.9

12.4

10.0

Source Compiled by the authors

602

There is horizontal and vertical cooperation in agriculture. Accordingly, there are vertical cooperative formations and horizontal cooperative organizations. In cooperatives, partners are subjects linked together by economic interests, a common goal of achieving a particular result. One of the directions of transformation of cooperative ties in the agro-industrial complex is the development of vertical cooperation when cooperation is established between agricultural producers and processing enterprises. This approach to improving the relationship between producers and processors allows one to eliminate intermediaries and ensure the direct promotion of agricultural raw materials for processing in enterprises under a predetermined contract. With such organizational and economic relations, there is an opportunity to prevent the imbalance of economic interests of producers of agricultural products with processing enterprises. Vertical cooperation achieves mutually beneficial cooperation and integrates production, procurement, processing, and marketing of agri-food products. In vertical cooperatives, the additional income received by producers and processors from joint activities goes to the cooperative partners rather than to intermediaries, as it has been before. In a vertical cooperative, farmers are at the center, delegating much of their functions to the cooperative. A. Chayanov assessed this approach as an opportunity to organize a fully communalized agricultural production based on liquidated peasant farms. According to Chayanov, in this situation, with the transition of all peasants to collective farms, cooperatives are left to perform the functions of procurement, credit, marketing, and processing. In other words, the development of vertical cooperation should be strengthened by improving the activities of horizontal cooperation. According to A. V. Chayanov, agricultural cooperation should not impair the work of agricultural communities because “… the question is not whether it is a collective or cooperation but whether it is a cooperative collective or a cooperative family farm” (Chayanov, 1927). A. V. Chayanov interpreted this approach as some part of the “cooperative collectivization” to the development of real cooperation in the development of the agricultural sector. At that time, all structures of the country’s cooperative system in various sectors and areas were reorganized into Kolkhozsoyuz and entrusted with the functions of serving collective farms. A. V. Chayanov regarded collectivization as the construction of progressive enterprises with the participation of labor peasant farms. He disapproved of overkill, haste, and gigantomania in this matter and advocated “normal methods of collectivization” (Chayanov, 1929). According to A. V. Chayanov, “… they (cooperatives) represent purely practical enterprises of small owners, from the bottom to the top imbued with a commercial spirit and infinitely far from those ideas of mutual assistance of the

O. V. Kaurova et al.

Russian people, which are inclined to impose cooperatives, especially Russian, adherents of the labor theory” (Chayanov, 1909). On the issue of collectivization in the agrarian sector, A. V. Chayanov noted that “… the way of introducing the elements of the large economy, industrialization, and state plan into the peasant economy is the way of cooperative collectivization, constant and consistent separation of individual branches from individual farms and their organization in the highest forms of large public enterprises” (Chayanov, 1925). Particular attention should be paid to the study of the relationship of producers with processors and other partners. The compliance with these requirements will allow developing and making the best decision on the choice of cooperation form and development directions. Various horizontal and vertical cooperatives were organized in several regions of the country in the first quarter of the twentieth century. A. N. Kulizhny developed a system of forms of cooperation in agriculture in the form of specialized unions and associations with the following names: “Soyuzkartofel,” “Koyaitso,” “Kozerno,” “Plodoovosch,” “Penkossoyuz,” and “Kustarsbyt.” Subsequently, all cooperative formations mentioned above received a coordinating body—the Council of United Agricultural Cooperation (Selskosvet) (Ministry of Agriculture of the Russian Federation, 2013). In the 1920s, some regions of Russia created local integrated plants that included grain-cleaning facilities, elevator facilities, storage facilities, warehouses, refrigerators, maintenance facilities, etc. Along with this, organizational and economic forms and structures of more powerful associations to cooperate producers of agricultural products with processing industrial enterprises were developed. Of particular interest is A. V. Chayanov’s point of view on the formation of vertically integrated cooperatives that include producers and processors of agricultural products. A. V. Chayanov attached great importance to the development of vertical cooperation in the agro-industrial complex. In vertical cooperation, he saw an opportunity to restructure the inefficient production of peasant farms. Strengthening ties between producers of agricultural products with processing enterprises prioritized the development of transport links, the construction of storage facilities, roads during communalization, when “… the whole system is qualitatively reborn from the system of peasant farms in the system of public cooperative economy of the village (Chayanov, 1927). When building integrated agro-industrial plants in rural district centers and dislocating agricultural processing enterprises, it was recommended to consider many peculiarities, including the distance between raw material producers and processors. In the design and creation of the

Role of Agricultural Cooperation in the Development of Regional Food Markets

production infrastructure of each agro-industrial plant, special attention was paid to the construction of communications, including roads, energy supply, etc. By the end of the 1920s, the development of cooperation in the country’s agricultural sector had slowed down. The fundamental cooperative principles, including voluntariness, share rights, land shares, self-government, etc., were not respected. Forms of cooperation were replaced by administrative decisions of public authorities. In the early 1930s, proposals to form agro-industrial plants (AIKs) and industrial and agricultural plants (INAKs) were reevaluated and recognized as harmful, and the idea was abandoned. Cooperation in agriculture expanded with the transition of the country to the New Economic Policy. In the new theoretical developments, conclusions were drawn about the expediency of including peasant farms in large-scale production through cooperation. An objective prerequisite for expanding cooperatives in rural areas is farms and private subsidiary plots. In 2020, 168,210 smallholders were engaged in industrial and economic activities in agriculture in Russia, including P(F)E (peasant (farm) enterprises)—11,307, heads of P(F)Es— 130,980, and individual entrepreneurs (IE)—25,923. The largest number of P(F)Es operated in the Central Federal District—2457 (21.7% of the all-Russian number) and in the Siberian Federal District—2202 (19.5%). The first place by the number of individual entrepreneurs is occupied by the Southern Federal District—6425 units (24.8% of the total number in the country), with the second place occupied by the Central Federal District—4585 units (17.7%) (Table 2).

Table 2 The number of small entrepreneurs in Russia operating in agriculture

4

603

Conclusion

Agricultural consumer cooperatives in the regions of Russia develop in accordance with the current legislation. They stimulate the development of small agricultural production, displace intermediary resellers from the procurement, and strengthen the relationship of agricultural producers with processing enterprises and the food market. Agricultural consumer cooperatives are a channel for marketing agricultural products. Additionally, they participate in rural development and fill regional food markets with agri-food products, contributing their share in food security. Cooperation of large, medium, and small agricultural forms of production with enterprises for processing of agricultural raw materials contributes to fuller utilization of production capacity of processing plants, increasing the competitiveness of Russian agricultural producers in the food market, and bringing additional dividends to farmers. The research revealed the level of development of the material base for the development of agricultural consumer cooperatives. The directions of specialization of agricultural consumer cooperatives and the role of cooperation in purchasing and selling agricultural products in the network of regional food markets were determined. The authors established the influence of purchase and sale activities of agricultural consumer cooperation on the development of household farms and P(F)Es, regulation of small agricultural entrepreneurship, and improvement of the efficiency of regional markets. The degree of participation of economic

Federal districts

P(F)E

Heads of P(F)Es

IE

Total

Russia

11,307

130,980

25,923

168,210

Central

2457

18,143

4585

25,185

Share in Russia, %

21.7

13.9

17.7

15.0

Northwestern

549

4799

1082

6430

Share in Russia, %

4.9

3.7

4,2

3.8

Southern

1426

31,122

6425

38,973

Share in Russia, %

12.6

23.8

24,8

23.2

North Caucasus

1724

23,512

3950

29,186

Share in Russia, %

15.2

18.0

15,2

17.4

Volga

1840

25,252

4258

31,350

Share in Russia, %

16.3

19.3

16.4

18,6

Ural

325

4852

1345

6522

Share in Russia, %

2.9

3.7

5.2

3.9

Siberian

2202

14,714

2679

19,595

Share in Russia, %

19.5

11.1

10.3

11.6

Far Eastern

784

8586

1599

10,969

Share in Russia, %

6.9

6.5

6.2

6.5

Source Compiled by the authors

604

entities in the formation of regional food markets was revealed. The role of farmers and peasants in replenishing the country’s food resources and their place in the regional agricultural markets was disclosed.

References Balalova EI, Maksaev AA, Ovcharenko NA, Suglobov AE, Tkach AV (2019) Entrepreneurship in food supply. Dashkov and Co., Moscow Chayanov AV (1909) Public activities on cattle breeding in Belgium. Report to the joint meeting of the Livestock Committee and the Committee of Savings and Loan and Industrial Associations. Russian Empire, Moscow Chayanov AV (1924) Optimal size of agricultural enterprises. Novaya Derevnya, USSR, Moscow Chayanov, A. V. (1925). Agricultural cooperation as a form of agricultural production organization in the USSR. Economic Review, 6, 58–67. Chayanov, A. V. (1927). Basic ideas and forms of organization of agricultural cooperation (2nd ed.). USSR. Chayanov, A. V. (1929). Today and tomorrow’s big farming. Economic Review, 9, 39–51. Kaurova, O. V., Tkach, A. V., & Maloletko, A. N. (2020). Place and role of consumer cooperation in ensuring food security of Russian regions. Vestnik Russ Univ Cooperation, 2(40), 51–61.

O. V. Kaurova et al. Maloletko AN, Kaurova OV, Ermilova AN, Oganyan VA, Steklova YV (2021) Approaches to the study of factors stimulating the development of cooperation between large and small businesses in Russia and the Republic of Belarus. In Bogoviz AV, Suglobov AE, Maloletko AN, Kaurova OV, Lobova SV (eds) Frontier information technology and systems research in cooperative economics. Springer, Cham, pp 325–334. https://doi.org/10.1007/ 978-3-030-57831-2_34 Ministry of Agriculture of the Russian Federation (2013) Proceedings of the first All-Russian Congress of rural cooperatives (St. Petersburg, Russia, March 21–22, 2013). Rosinformagrotech, Moscow Nabieva, A. R. (2019a). Features of the mechanism of procurement of agricultural products by a consumer cooperation and methods of its regulation. Econ Agric Proces Enterp, 8, 76–81. https://doi.org/10. 31442/0235-2494-2019-0-8-76-81 Nabieva, A. R. (2019b). Methodological approaches in the choice of activity for cooperatives in rural areas. Russ J Manage, 2(7), 61–65. https://doi.org/10.29039/article_5d4846be404e78.51139709 Nabieva, A. R. (2019c). Theoretical foundations and modern trends in the development of Russian cooperation. Probl Reg Econ, 3(40), 73–79. Tkach, A. V., & Nabieva, A. R. (2019). The main milestones of the concept of development of consumer cooperation in the Russian federation and ways of its realization. Russ J Manage, 1(7), 61–65. https://doi.org/10.29039/article_5d0a42963a1030.17037639

Formation of the Model of the Social-oriented Cluster as Method of Cooperation of the Subjects of SMEs of the Smolensk Region Tatiana V. Gomelko , Irina Yu. Chernenkova , Elena V. Tarasova , Dmitriy A. Korolkov , and Mariya A. Ovsyannikova

Abstract

The article describes that the construction of a socially oriented model of cluster policy makes it possible to establish and quantify the relationship of indicators characterizing the level of efficiency of the region's development in terms of cooperation, and on this basis, to develop a better and more promising forecast based on the materials of the Smolensk region. Keywords

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.

. .

Socially oriented cluster Cooperation Regional development Cluster formation methodology Cluster model JEL Classification

R12

1

. . . . R22

P13

P43

Q13

Introduction

The modern development of cooperation makes it possible to apply economic models in the innovation-digital economy. These models primarily include socially-oriented clusters, which can improve the efficiency of the region's development. The formation of a cluster model is based on a set of requirements and construction rules that must be satisfied by T. V. Gomelko (&) . I. Yu. Chernenkova . E. V. Tarasova . D. A. Korolkov . M. A. Ovsyannikova Smolensk Institute of Economics, Branch of the Saint-Petersburg University of Management Technologies and Economics, Smolensk, Russia e-mail: [email protected] E. V. Tarasova e-mail: [email protected]

its parameters. Therefore, the study of a set of requirements, parameters, conditions and principles that influence the formation of indicators of the socio-economic development of the region is of interest in the process of developing a model. Theoretical aspects have shown that the model of a socially oriented cluster of regional policy is a certain form of cooperation that sufficiently repeats the properties of the regional economy (Schumpeter, 1942). The study of the cluster policy model of the region makes it possible to form a system of new knowledge about socially oriented clusters as ways of cooperation between business entities, as well as to develop more effective solutions to achieve socio-economic stability within the region. In addition, the construction of a socially oriented model of cluster policy makes it possible to establish and quantify the relationship of indicators characterizing the level of efficiency of the region's development in terms of cooperation, and to develop a better and more promising forecast on this basis (Becattini et al., 1990).

2

Methodology

In the process of research, it is possible to apply a typical cluster model to form a cluster policy, provided that the resulting impact of factors not considered in the model on the effectiveness of the socio-economic development of the region is relatively insignificant. At the same time, the composition of the factors that make up the cluster economic model and the very structure of the model can be refined in the course of its further study and improvement. The parameters of the socially oriented economic cluster model, the way it is represented (expressed) will be classified into managing and managed ones. The initial data, fixing the initial state (key conditions) of the functioning of the socially oriented economic cluster

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_117

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606

model, used for its formation, represent the control parameters. Managed parameters reach a certain value only in the process of functioning of the formed model, according to the achieved values of managed parameters, the efficiency of the socially oriented economic model and the effectiveness of the cluster policy of the territories are determined. The controlled parameters of the cluster model are a kind of its “response” to the control action. M. Porter was one of the first to use the term “cluster” to describe economic phenomena. According to M. Porter, a cluster is a set of socio-economic institutions (enterprises, institutions, firms, companies, individual entrepreneurs, research institutions, government bodies, infrastructure organizations) united geographically in a certain way interacting and complementing each other (Porter, 1990). M. Porter proved that the competitiveness of the region should be viewed through the prism of the territorial competitiveness not of a separate economic institution, but of clusters—a combination of economic institutions of various industries, moreover, the ability of formed clusters to effectively form, distribute, redistribute and use internal resources is of key importance. It is also necessary to consider the system of determinants of the competitive advantage of regions developed by M. Porter—the “competitive rhombus”, which forms a cluster model according to the number of main groups (conditions) of such advantages, when forming the cluster policy of the region (Porter, 1990). In addition to the above, M. Porter also identified two groups of additional variable factors that affect the regional economy (Porter, 1990). If we talk about various resource-providing elements, the implementation of effective production and economic activities within a regional cluster implies close relationships. The result of the territorial cluster will be determined based on the result of the interaction of all components of the cluster structure in the territories of the regions among themselves, including the processes of participation of public institutions, if we consider the formed infrastructure of clusters “from the inside”, and not the socio-economic effect obtained from the financial and economic activities of each element. The positive or negative dynamics of the socio-economic effect of cluster formation will also be visible. When considering the basics of the formation of a classical cluster, it is necessary to take into account the fact that all the established relationships of the territorial cluster must clearly provide access for each SME entity—as an integral element of the cluster, to the following resources (Williamson, 1973):

T. V. Gomelko et al.

– modern high-quality technologies facilitating the implementation of the subject's production and economic activities; – information and labor resources, etc. The following main criteria for the creation of territorial clusters are distinguished: (1) consistency—in the aspect of integrity, if we are talking about a system of economic entities, organizations and institutions that are combined using direct and reverse links, with an eye on the production of competitive goods and services; (2) territorial proximity, allowing to achieve the desired socio-economic effect from the creation of territorial clusters; (3) self-organization—as a self-governing system that will develop under the influence of the economic interests of its participants; (4) fair competition between participants. The process of formation and implementation of cluster policy has certain historical aspects and a direct relationship when it comes to the socio-economic state and change, both in the power state structures of the Russian Federation and in its individual subjects (Gomelko et al., 2019). Therefore, it is advisable for territorial authorities to pay attention to those elements and processes within the cluster that are key to the formation of a socially oriented policy in the region. An analysis of recent economic studies of clusters in the regions of the Russian Federation allows us to state that a typical cluster model has been developed and already tested in practice, its application is universal and does not depend on the sector of the economy. The main elements of the model shown in Fig. 1 form four interconnected blocks: The first block is represented by the original enterprise “A” (the enterprise around which the cluster is formed). The assessment of the contribution of SMEs to the economy of the region is carried out by analyzing the processes taking place in this block, it starts with counting the total number of SMEs in the industry, the total volume of shipped products, the total number of employees in the industry, then the assessment of mandatory payments (taxes, fees, etc.) in terms of economic contribution to the regional budget. The second block is represented by contractors-suppliers of the cluster members, which can be classified as follows: internal (suppliers who work territorially “within” the sub-

Formation of the Model of the Social-oriented Cluster as Method …

607

Fig. 1 Typical cluster model. Source Developed by the authors

ject); external (suppliers who work territorially “outside” the subject). The analysis is carried out to identify the influence of external suppliers on the performance of similar industries in the region (domestic suppliers) and the development opportunities for contractors-suppliers within the region, that is, to identify the volumes of increasing the coverage of the cluster, while suppliers are grouped by type of supply. The third block is represented by counterpartiesconsumers of products created in the cluster. Consumers in the analysis process are segmented into internal and external, including interregional supplies, exports. The fourth block is a set of infrastructures that ensure the operation of the cluster (Lazzeretti et al., 2014). The presented cluster model allows to analyze the development of the cluster in dynamics: the decline or growth of the competitiveness of organizations-elements of the cluster, the effectiveness of investment projects aimed at the formation (expansion) of the central element of the cluster (commodity producer), change of supplier, expansion of the sales market, etc. As the analysis shows, the formation and functioning of socially-oriented clusters in the regions of the Russian Federation are initiated “from above”, which is directly related to the use of state assistance and regulation, as well as the use of the administrative resource of the leadership of the constituent entities of the Russian Federation. At the

same time, the clustering processes taking place in the country's economy are effectively implemented only in those entities that have a high scientific and industrial potential. At present, the formation and functioning of the state cluster policy is impossible if there is no system that will include institutions and mechanisms for the interaction of business structures and educational organizations involved in scientific research. Also, one of the necessary conditions for improving the efficiency of the process of fulfilling all the declared functions and the competent implementation of the policy in terms of the formation of socially oriented clusters is the need to structurally diversify the financial and economic system of the subject, using tools for the formation of the institutional environment, generating and implementing innovative technologies. If we talk about the processes of creating clusters, then they are inevitably accompanied by a complication of the structure of social and economic interaction, as well as an increase in the number of financial and economic institutions participating in them. After considering the clustering activity of the subjects of the Russian Federation, the main problem, which is characterized as a deterrent, as a significant gap between the potential elements of the cluster, was identified by: education, science, business, other economic institutions that form the infrastructure of the cluster, as well as government agencies.

608

Therefore, for research in the process of forming a regional socially oriented cluster policy, the mechanism of interaction between the structural elements of clusters, as well as the mechanism of direct interaction between economic institutions within each formed cluster and elements and factors of the external environment are of increasing interest. New economic conditions dictate the conditions for activating the processes of globalization, setting tasks for ensuring the competitiveness of the region, which, in turn, imply the need to direct the economy of the subject in a strategic aspect to the process of forming socially oriented clusters. When modeling a socially-oriented cluster on the territory of the subject, it is necessary to consider some principles, because building a cluster is impossible without considering the goals set. This process should be clearly defined by the methods to be used (Sedita et al., 2018). The variety of elements and factors that must be considered in the process of assessing the effectiveness of socio-economic development requires a large amount of resources. At the same time, the set of factors selected for analysis is often incomplete. The reference model, which is an analogue of the system under study, is used in this study as a way to overcome these contradictions and improve the quality of the cluster model for developing a regional cluster policy. This conceptual framework is a generalized representation of the elements, factors and processes taking place in the region, it can be used as a plan and should be gradually modified depending on the requirements of a particular border region. This allows evaluating the result without even considering real changes in the management of the subject. It can be concluded that the process of policy modeling in the cluster aspect will help reduce the costs of improving the competitiveness and efficiency of regions. An important role in ensuring the effective operation of a socially oriented cluster is occupied by the following groups of economic entities: – agricultural enterprises, as a base for the purchase of the necessary raw materials, both within the region and on the territory of the Russian Federation, and enterprises in the processing industries, as a sector that creates the final product, both within the region and on the territory of the Russian Federation; – consumers of the final product, both within the region and on the territory of the Russian Federation; – built logistics links for the delivery of both the necessary raw materials and the final product with suppliers and consumers, both within the region and on the territory of the Russian Federation;

T. V. Gomelko et al.

– investors, banks and other creditors as the basis for attracting additional capital (own and borrowed); – current laws and regulations governing the organization of processes in the agro-industrial complex on the territory of the Russian Federation. When starting the procedure for creating a cluster, ceteris paribus, some influences are allowed in order to resolve the conflicts that have developed in the economy: cooperation and compromise (links I—cooperation; links II—compromise). The ultimate goal of modeling management processes (Fig. 2) of SMEs in the Smolensk region is to form the final picture of business functions and the required set of business processes. The study of the theoretical aspects of clustering led to the conclusion that this form of cooperation is appropriate for implementation in the agro-industrial complex of the Smolensk region as part of the formation of a socially oriented cluster (Decree of the Administration, 2018). In the process of analyzing the activities of agricultural producers in the region, it was found that there are a number of problems that impede efficient management in the production and processing of food products.

3

Results

If we consider all categories of farms, the volume of gross production of agricultural products in the Smolensk region for 2020 amounted to 26,701.2 million rubles, or 96.4% in a comparable estimate to the corresponding level in 2019 (Table 1). If we consider the share of agricultural producers in the Smolensk region, poultry and cattle accounted for slaughter in live weight is 89%, 71%—of the gross milk production, 81%—of the total egg production. The figures for the performance of agricultural producers in the Smolensk region for 2020 are also known: – 78.6 thousand tons of livestock and poultry for slaughter in live weight (− 1.1 thousand tons, or − 1.5%); – 112.9 thousand tons of milk (+ 1.6 thousand tons, or + 1.4%); – 232.6 million pieces (egg) (− 21.6 million pieces or − 8.9%). The decrease in milk production in peasant farms for 12 months of 2020 compared to the corresponding period of 2019 was caused by the process of reducing the number of dairy cows by 0.22 thousand heads, this is due to the transition of a number of enterprises to other forms of ownership and the difficult financial condition of the farms.

Formation of the Model of the Social-oriented Cluster as Method …

Fig. 2 Management model of a socially oriented cluster. Source Developed by the authors

609

610 Table 1 Production of the main livestock products in the Smolensk region

T. V. Gomelko et al. Thousand tons

2020 as a % of 2019

Reference: 2019 as a % of 2018

Meat (cattle and poultry for slaughter in live weight) All categories of farms

86.7

97.3

102.3

Agricultural organizations

76.8

98.5

104.4

Households

8.9

90.3

91.0

Peasant farms

1.0

74.5

79.6

Milk All categories of farms

159.9

98.1

94.7

Agricultural organizations

112.9

101.4

96.9

Households

30.8

89.9

90.6

Peasant farms

16.2

92.9

87.7

All categories of farms

287.0

91.2

112.6

Agricultural organizations

232.6

91.1

116.8

54.2

91.5

94.7

0.2

78.6

58.0

Eggs, million pieces

Households Peasant farms

Source Compiled by the authors based on Official Website of the Administration of the Smolensk Region (2021)

In addition, the number of dairy cows decreased in the households of citizens by 0.65 thousand heads due to the aging of the rural population and the reduction in its numbers. The decrease in the production of cattle and poultry for slaughter in live weight for the period of 2020 compared to the corresponding period of 2019 was caused by a drop in the production of livestock for slaughter by 2 thousand tons at “Bryansk Meat Company” LLC. In addition, “Smetanino” Poultry Farm” LLC did not reflect the culled poultry as poultry production for slaughter in its reporting for 2020. The decrease in egg production for 12 months of 2020 compared to the corresponding period of 2019 is due to the technological process for updating the number of laying hens in a large poultry enterprise “Smetanino” Poultry Farm LLC. In 2020, in large, medium and small agricultural organizations of the Smolensk region, the shipment of agricultural products is characterized by data (Table 2). Among the most important projects implemented in the territory of the Smolensk region in the agrarian sector are: – “Construction of agro-industrial parks in the territory of the Smolensk region” LLC “Management Company Agrotechnologies of development” (Vyazemsky, Elninsky and Dorogobuzhsky districts). Project implementation period: 2020–2023 The total investment for the project is about 6000.0 million rubles;

– “Construction of a livestock breeding complex for 1200 heads of cattle” LLC “Novoselki” (Demidovsky district). Project implementation period: 2021–2026. The total investment for the project is about 1000.0 million rubles (Official Website of the Administration of the Smolensk Region, 2021); – “Construction of a dairy complex for 3000 heads of cattle, including 1200 heads of forage cows” LLC “Baltutino” (LLC “Invest Finance”) (Glinkovsky district). Project implementation period: 2021–2023. Total investment for the project—950.0 million rubles; – “Creation of a modern agricultural holding for the cultivation of rapeseed and other crops” LLC “Agro-industrial holding” “Dobronravov AGRO” (Yelninsky district). The analysis showed a decrease in the efficiency of agricultural production in the Smolensk region. At the same time, the livestock cluster has not been fully formed in the agro-industrial complex of the region, although there are all prerequisites. For this purpose, the authors of the article propose a methodology that is “universal” and applicable for the formation and development of clusters in any sector of the economy for implementation by state and municipal authorities, as well as SMEs in the Smolensk region. This methodology includes the process of goal-setting and the development of a system for achieving positive socio-economic results. The proposed model consists of four

Formation of the Model of the Social-oriented Cluster as Method … Table 2 The volume of shipment of agricultural products in large, medium and small agricultural organizations of the Smolensk region (in tons)

611 January–December

Cereals and leguminous crops—total

2019

2020

2020 in % to 2019

114.599

112.013

97.7

Potato

17.139

12.613

73.6

Vegetables

19.332

25.688

132.9

Cattle and poultry—total in live weight

68.476

78.775

115.0 103.7

Milk

103.930

107.749

Eggs—million pieces

254.1

234.0

92.1

Source Compiled by the authors based on Official Website of the Administration of the Smolensk Region (2021)

interrelated goals and scope of ongoing works (Gomelko et al., 2019).

(2) Result: Full Approval of the Cluster Development Strategy by Its Participants.

Goal 1—determination and verification of the prospects for the formation and implementation of the Cluster, assessment and hedging of the risks of primary formation, identification of the main threats to development, as well as determination of its primary form.

Goal 4—The process of developing draft documents for submitting a competitive application in order to receive Cluster funding from the state budget (for clusters that meet the parameters of innovation). Further, it is necessary to generate the necessary package of documents for sending an application for obtaining Cluster financing from the state budget.

Goal 2—organizational and legal registration of the Cluster, creation of Cluster management bodies. Goal 3—the procedure for developing and creating a Cluster Development Strategy. (1) List of Main Works: 1. Analysis of the main prerequisites for the formation of the Cluster. 2. Analysis and assessment of the strategic direction of the Cluster. 3. Assessment of the composition and structure of the Cluster in relation to the territory. 4. Analysis and evaluation of the organizational structure of the Cluster. 5. Evaluation of the production capabilities of the Cluster. 6. Analysis and evaluation of the prospects for the development of industrial opportunities of the Cluster. 7. Assessment of scientific, educational and technical potential. 8. Assessment of infrastructure development and indicators of the quality of life in the region. 9. The procedure for assessing the support measures necessary for the formation and development of the Cluster from the authorities of different levels according to the Plan. 10. The procedure for choosing directions for the further development of the Cluster. 11. Procedure for Approval of the Cluster Development Strategy.

(3) List of Required Works: 1. Updating the requirements of public authorities for the competitive selection of regional Clusters, the budgets of which provide for the provision of budget financing (subsidies) in the aspect of state support for territorial and sectoral Clusters. 2. Formation of tender documentation on the basis of the formed Cluster Development Strategy in accordance with the approved requirements. 3. Approval procedure for the Cluster Application: Coordination of the priorities identified in the Application; Elimination of comments and suggestions for finalizing the Application; Formation of the final version of the Application. (4) Result: a package of documents for applying for the competitive selection of Clusters in the constituent entities of the Russian Federation, which are provided with subsidies to finance activities within the framework of state support for territorial and sectoral Clusters. (5) Expected results: 1. Territorial and Sectoral Cluster is created. 2. The development strategy of the Cluster is ready and approved by government agencies. 3. A set of documents is prepared for filing an application for the tender of the Ministry of Economic Development of the Russian Federation in accordance with the requirements of the tender documentation.

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Conclusion

To sum up, we believe that the active implementation of the cluster policy in the field of agro-industrial complex in the aspect of creating socially oriented clusters and cooperation of SMEs in this industry in the Smolensk region will allow to obtain the effect of a significant increase in the standard of living of citizens in a qualitative aspect and the competitiveness of regional producers.

References Becattini, G., Pyke, F., & Sengenberger, W. (1990). The Marshallian industrial district as a socio-economic notion (pp. 37–51). Industrial Districts and Inter-Firm Cooperation in Italy. Decree of the Administration of the Smolensk Region dated December 29, 2018 No. 981 “On approval of the strategy for the social and economic development of the Smolensk Region until 2030”.

Gomelko, T. V., Korolkov, D. A., Ovsyannikova, M. A., & Fominyh, V. A. (2019). Formation of cluster policy for the development of border territories: Monograph. Saint-Petersburg University of Management Technologies and Economics. Lazzeretti, L., Sedita, S. R., & Caloffi, A. (2014). Founders and disseminators of cluster research. Journal of Economic Geography, 14(1), 21–43. Official Website of the Administration of the Smolensk Region. https:// admin-smolensk.ru. Data accessed: September 27, 2021. Porter, M. E. (1990). The competitive advantage of nations. Palgrave Macmillan Schumpeter, J. A. (1942). Capitalism, socialism, and democracy. Harper & Brothers. Sedita, S. R., Caloffi, A., & Lazzeretti, L. (2018). The invisible college of cluster research: A bibliometric core-periphery analysis of the literature. Industry and Innovation, 22(2), 1–23. Williamson, O. E. (1973). Markets and hierarchies: Some elementary considerations. American Economic Review, 63(2), 316–325.

Sustainability and Industry-Specific Business Support for the SDGs

Methods of Organizing the Design of Construction Works Marianna S. Santalova , Irina V. Soklakova , Victor V. Gorlov , Ksenia V. Sadykova , and Diana A. Ermilina

method of organizing construction works allows for reducing costs and increasing the efficiency of the construction company.

Abstract

Due to the trend of increasing demand for housing, population growth, and the dilapidated old fund, which has a large percentage of the entire housing stock, the topic of the project is to design a residential building. The demand for low-rise construction is currently huge; this applies to construction outside the city and within it. Today’s citizens prefer to live in their own houses rather than in high-rise buildings. These problems determine the chosen research topic. The paper presents a developed project for the construction of a low-rise house. The research goal is to present the project, considering the optimal internal zoning of the living space. In this research, we relied on the points of view of such authors as B. I. Dalmatov, M. S. Santalova, I. V. Soklakova, S. S. Morkovina, G. G. Orlov, S. G. Komlichenko, A. Yu. Mikhailov, G. K. Sokolov, and V. V. Uskov. The finished project of a three-story residential apartment building consists of two mirror sections of three floors without a deformation seam, with a technical underground for maintenance of engineering communications. The design

M. S. Santalova (&) . I. V. Soklakova . V. V. Gorlov Moscow Metropolitan Governance Yury Luzhkov University, Moscow, Russia e-mail: [email protected] M. S. Santalova . I. V. Soklakova . D. A. Ermilina Academy of Management and Production, Moscow, Russia V. V. Gorlov National University of Oil and Gas “Gubkin University”, Moscow, Russia V. V. Gorlov . D. A. Ermilina Moscow Economic Institute, Moscow, Russia K. V. Sadykova Plekhanov Russian University of Economics, Moscow, Russia D. A. Ermilina State University of Management, Moscow, Russia

Keywords

. .

.

.

Design method Construction works Demand for housing Technical project Low-rise construction JEL Classification

O14

1

. . O32

P11

Introduction

Due to the trend of increasing demand for housing, population growth, and the dilapidated old fund, which has a large percentage of the entire housing stock, the topic of the project is to design a residential building. The demand for low-rise construction is currently huge; this applies to construction outside the city and within it. Today’s citizens prefer to live in their own houses rather than in high-rise buildings.

2

Methodology

In this research, we relied on the points of view of such authors as Dalmatov et al. (2006), Orlov (1985), Komlichenko et al. (2009), Mikhailov (2016), Morkovina et al. (2015), Santalova et al. (2015, 2019, 2020, 2021), Sokolov (2018), Uskov (2016). The works of these scientists and other authors are devoted to theoretical, organizational, and methodological issues of project management of constructions. The study is based on the project method, which includes a combination of methods of work organization.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_118

615

616

3

M. S. Santalova et al.

Results

We propose to use all methods in the project, combining them in the project method of organizing construction works. We call it the design method of organizing construction works. To increase construction efficiency, we will develop a low-rise house project for the company Table 1 Technical and economic indicators of the residential building project

(Dalmatov, 2006). The projected building is a two-section residential building. The shape of the apartment building in the plan is correct, rectangular. This form is due to the possibility of the layout of residential neighborhoods (GGOrlov1985Engineering solutions for labor protection in constructionStroyizdatMoscow, USSROrlov and G. G. (Ed.). (1985).

Indicator

Unit of measurement

Quantity

Required land area to accommodate two sections (minimum)

Hectare

0.15

Building area

Square meter

636.70

Construction volume of the aboveground part

Square meter

6599.10

Total area

Square meter

1545.23

Total area of apartments

Square meter

1283.4

Living area

Square meter

727.86

Number of floors

3

Number of one-room apartments

6

Number of two-room apartments

12

Number of three-room apartments

6

Source Compiled by the authors

Fig. 1 Ground floor plan of a three-story apartment building. Source Compiled by the authors

Methods of Organizing the Design of Construction Works

Engineering solutions for labor protection in construction. Moscow, USSR: Stroyizdat. 1985). The apartment building consists of two sections (A and B), connected in a straight line. Each section of a residential building accommodates three three-room, six two-room, and three one-room apartments. The finished project of a three-story residential apartment building consists of two mirror sections of three floors, without a deformation seam, with a technical underground for maintenance of engineering communications. The layout of residential premises has been developed considering the optimal internal zoning of the living space (Gosstroy of the USSR, 1985). On each floor in two sections, there are two one-room apartments, four two-room apartments, and two three-room apartments. There are 24 apartments in the house. The height of the floor is 3.0 m. The height of the technical underground is 1.8 m (clean). There are six one-room apartments, twelve two-room apartments, and six three-room apartments. The building area is 636.70 m2. The construction volume is 6599.10 m3. The total area of the residential building is

617

1545.23 m2. The total area of apartments is 1303.38 m2. The living area is 727.86 m2 (Table 1). Pile foundations have been adopted in this project (Komlichenko et al., 2009). The depth of the foundation is determined by the results of engineering and geological surveys. The cross-section of the piles is selected based on a comparison of options. A monolithic reinforced grillage made of concrete grade B20 is designed along the pile base. The walls are designed from monolithic reinforced concrete in 20 with a thickness of 250 mm. The exterior walls are insulated with extruded polystyrene foam; on a metal frame, there is a ventilated facade “Alucoobond.” The partitions in the rooms are designed from groove-ridge blocks with a thickness of 100 mm. The floors and coverings are designed from monolithic reinforced concrete in 25 with a thickness of 200 mm. The top layer of floors in living rooms is linoleum [4; 12]. The floors in bathrooms and sanitary units are made of ceramic tiles (Fig. 1). The screed is made of cement-sand mortar. All living rooms have natural light. Doors are equipped with handles,

Fig. 2 Perspective of the building. Courtyard. Source Compiled by the authors

618

M. S. Santalova et al.

Table 2 Engineering equipment

Name of element

Characteristic of the element

Water supply

From the central water supply network. Polypropylene pipes

Sewage system

Household sewerage with the release into the city network. Polyethylene pipes. Rain sewer

Hot water supply

From ITP (ITP is not being developed as part of a typical project). Polypropylene pipes

Gas supply

Not provided

Floor slabs

Electric cookers

Power supply

From the external network, the voltage is 380/220 V

Television

Collective digital antenna

Radio

Provided

Elevator

Not provided

Waste disposal

Not provided

Air conditioning

Not provided

Fire extinguishing system

Internal fire extinguishing is not provided. Each apartment has primary devices for intra-apartment fire extinguishing

Fire alarm system

Provided

Security alarm system

Not provided

Lightning protection

Lightning receiver, current collector, and a grounding conductor

Heating

The heat carrier is water with parameters 95–700 °C from the outdoor heating network. The heating system is dependent on an automated control unit with a direct temperature schedule of 95–700 °C. The control unit is located in the thermal point in the technical field of the building (as part of a typical ITP project that is not being developed). The heating system is provided with a single pipe with lower wiring. Heating devices—cast-iron radiators MS-140-M-500

Ventilation

Natural, supply, and exhaust

Source Compiled by the authors

latches, and mortise locks. The roof is flat. The drain is unorganized. The roof covering is a surfaced material. Staircases and platforms are made of concrete grade B25 (Fig. 2). When developing an architectural and artistic solution to the facade of a building, a compositional unity is achieved between the interior of the building and its external volume [11, 13]. The search for the composition of internal spaces was carried out during the design, simultaneously with the search for the composition of the external volumes of the building (Table 2).

4

Conclusion

The presented residential building is advanced and dynamic; it successfully blends into the composition of residential and public buildings located nearby. The design method of organizing construction works, combining convenient construction methods, will allow the company to reduce costs and increase efficiency [5, 7–10].

Acknowledgements The developed project and the design method of organizing construction work were discussed at a meeting of the Department of Economics and Management of the Academy of Management and Production and directly at the studied construction company.

References Dalmatov, B. I. (Ed.). (2006). Design of foundations of buildings and underground structures (3rd ed.). ACB. Orlov, G. G. (Ed.). (1985). Engineering solutions for labor protection in construction. Stroyizdat. Gosstroy of the USSR. (1985). Manual for the calculation and design of natural, artificial and combined lighting (to SNiP II-4-79). CITP Gosstroy of the USSR. Komlichenko, S. G., Malykha, G. G., & Pavlov, A. S. (2009). Organization of placing orders for design and construction. ACB. Mikhailov, A. Y. (2016). Organization of construction. Stroygenplan. Infra-Engineering. Morkovina, S. S., Santalova, M. S., Drapalyuk, M. V., & Panyavina, E. A. (2015). Concept of creation of E-platforms as part of support for small innovational business. Mediterranean Journal of Social Sciences, 6(6), 57–66. https://doi.org/10.5901/MJSS.2015. V6N6P57

Methods of Organizing the Design of Construction Works Santalova, M. S., Lesnikova, E. P., & Chudakova, E. A. (2015). Expert models for the evaluation of innovative entrepreneurial projects. Asian Social Science, 11(20), 119–126. https://doi.org/10.5539/ass. v11n20p119 Santalova, M., Surat, I., Surat, V., Soklakova, I., & Vandysheva, S. (2021). Improving the management efficiency of the company’s functional subdivisions. AIP Conference Proceedings, 2442, 050008. https://doi.org/10.1063/5.0076415 Santalova, M., Balahanova, D., Lesnikova, E., & Trunova, E. (2019). Effective tools for management of organization. In E. Popkova & V. Ostrovskaya (Eds.), Perspectives on the use of new information and communication technology (ICT) in the modern economy (pp. 537– 545). Springer. https://doi.org/10.1007/978-3-319-90835-9_63

619 Santalova, M. S., Soklakova, I. V., & Balabanova, D. K. (2020). The choice of the competitive strategy of the company. Advances in Economics, Business and Management Research, 128. https://doi. org/10.2991/aebmr.k.200312.176 Shirshikov, B. F. (2012). Organization, planning, and management of construction: A textbook. ACB. Sokolov, G. K. (2018). Technology and organization of construction: A textbook. Academia. Uskov, V. V. (2016). Innovations in construction: Organization and management. Infra-Engineering.

Corporate Social Responsibility in Industrial Economies as the Basis of Their Innovative and Sustainable Development in the Post-COVID Period Andrey S. Karpov , Nikolay Ya. Golovetskiy , and Nikolai A. Kovbasa

Abstract

Keywords

Purpose Assessing the influence of corporate social responsibility (CSR) on the state of sustainable and innovative development of countries with a high level of CSR. Design/methodology/approach The following methods were used: systemic approach and statistical method. Findings The assessment of the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR was performed. The methodological framework required for this direction of analysis includes the stage of determining the dynamics of CSR at the level of the leading companies of the world before the pandemic, during the pandemic, and in the post-COVID period; the state of assessment of the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR. Results of the assessment allowed determining the leading countries of the world that ensured the development and implementation of adequate strategic solutions for the development of the main components of CSR. Due to this, these companies formed the growth of the innovative and sustainable development of their countries. Originality/value The scientific novelty of this research consists in further development of the methodological provision of assessing the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR, and analysis of the components of CSR under the crisis conditions.

CSR Industrial economics Leading industrial companies of the world Innovative and sustainable development Post-COVID period Responsible business

A. S. Karpov (&) . N. A. Kovbasa Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] N. Ya. Golovetskiy Financial University Under the Government of the Russian Federation, Moscow, Russia

.

. . .

.

JEL Classification

L81

1

.

M50

.

N10

Introduction

The values of modern society are transformed, which influences the formation of responsible business, which is oriented toward the provision of the sustainable development of the economy. The social image of the business environment becomes a more important and current factor, which influences its economic and market success. The formation of the social image takes place due to the use of CSR mechanisms. CSR is a concept of the creation of social, environmental, and economic aspects of the functioning of a business by the principles of voluntariness and interaction between various aspects. CSR is a contribution of business to the achievement of the Sustainable Development Goals, which is especially important for industrial economies during crises. One of the most complex—by its scale and threats —is the crisis related to the COVID-19 pandemic and the consequences of its overcoming. The orientation of industrial economies at implementing the CSR components characterizes the emergence of a new paradigm of modern business. While in the 20th and early twenty-first centuries, the goals of entrepreneurship were the maximization of profit and redistribution of benefits, entrepreneurship at the modern stage is a source of public well-being and support for the environment. During the pandemic and in the post-COVID period, the crisis influences the state of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_119

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development of CSR in industrial economies and their competitiveness. Due to the above, it is important to determine the specifics of this direction of development of business in certain countries, which have a high level of industrial development. The main hypothesis of this research is the assumption of the presence of a connection between the development of this phenomenon and such characteristics of industrial economies as sustainable and innovative development. The purpose of this work is to assess the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR. The following tasks are solved: . determining the dynamics of CSR at the level of the leading companies of the world in the period before the pandemic, during the pandemic, and in the post-COVID period at the level of industrial economies; . determining the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR.

2

Literature Review

At the modern stage of the formation of scientific thought, there exist scientific works in the sphere of theoretical provision of the CSR concept, determination of the characteristics of this phenomenon at the level of the leading companies of the world, and analysis of the connection with the efficiency of development. Tay et al. (2020) present the forecasting of the development of components (factors) of the reputation model of Malaysia Airlines Berhad within the indicators of the Global Reputation Ranking of companies of the world (Global RepTrak 100). Raffaelli (2019) performed an analysis of the mechanical watchmaking industry of Switzerland, studying the results of the development of the main companies in this sphere. The work presented the economic substantiation of an increase in the sustainability of development of the country through the innovative, economic, and social development of companies in this sphere. Simon (2019) presented the results of the research on the responsible approach of industrial companies to the choice of innovative and environmental types of plastic and the systems of values of development that are oriented at the secondary use of materials in production. The paper by Chiarini et al. (2021) dwelt on the issue of socially-oriented production, oriented at the creation of an innovative network model, the factors of its formation, and directions of the integration for network participants.

Baker et al. (2018) defined the main evolutionary stages of formation of the means of assessing control and retaining the level of the environmental parameters of production and logistics of the processes in Michelin (France). The above literature overview showed that there are works on the theoretical foundations in this sphere, and there are developments and empirical materials on the evaluation of isolated elements of CSR of the leading companies of the world. Despite the established results, the character of these studies is rather fragmentary, since there are no complex studies on the state of this phenomenon and its influence on other indicators of effectiveness was not determined. Due to this, it is expedient to perform a complex evaluation of the state and dynamics of this phenomenon at the level of the leading industrial companies of the world and to determine its influence on sustainable and innovative development in the post-COVID period.

3

Materials and Methods

This research implies the study of the issue of assessing the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR. The method of systemic analysis allows for forming a proprietary methodological framework for assessing this direction. The statistical method allows for determining the degree of CSR at the level of the leading companies of the world before and during the pandemic and in the post-COVID period. The proprietary methodology of assessment includes the following stages: (1) Stage of determining the dynamics of CSR at the level of the leading companies of the world before and during the pandemic and in the post-COVID period. The realization of this task is connected to the evaluation of the state and dynamics of this indicator (ranking at the level of 14 leading companies in the world) (Cornell University, 2021). Based on this ranking, the ranking of CSR of countries to which companies belong is determined; (2) Stage of assessing the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR. Within this stage, the existence of direct dependence between this phenomenon and two components at the level of the given countries is discovered. In this research, the materials on the CSR ranking at the level of the leading companies of the world, which are required for determining the ranking of countries of the world based on this indicator, are used. It is proposed that the CSR ranking at the level of the leading companies of the

Corporate Social Responsibility in Industrial Economies …

623

world be evaluated through the ranking Global RepTrak 100 (ranking of the global reputation of companies of the world), which is published annually within the report of The RepTrak Company (The RepTrak Company, 2022). The orientation at this ranking is connected to the fact that its estimated indicators include the following: Products and Services (reputational image in the sphere of quality of products (services), expectations of interested parties, and the orientation at the environmentalization of manufacture of products (works and services), envisaged by the CSR concept; Workplace (reputational image in the sphere of HR policy and the policy of social benefits for personnel, which are the component of this phenomenon); Innovation (reputational image in the sphere of innovativeness of development, including in the direction of implementing the environmental aspects, which are the component of the studied phenomena); Citizenship (reputational image in the sphere of responsibility before the society by means of the environmental and social measures that are components of this phenomenon); Governance (reputational image in the sphere of corporate management, which level if measured by ethical level, justice, and transparency, including in the spheres of environmentalization and social spheres, which are elements of CSR); Performance (reputational image in the sphere of efficiency, measured by the economic

Table 1 Dynamics of the ranking Global RepTrak 100 for 2019–2021

Company

indicators, which are an element of the assessed phenomenon); Leadership (reputational image in the sphere of strategic milestones, which determine the positions of a company in the market that influence the economic components) (Tay et al., 2020). Table 1 presents the dynamics of the ranking Global RepTrak 100 for 2019–2021.

4

Results

In the modern competitive market, the implementation of CSR is the basis of the effective development of the subjects of industry and countries on the whole. This phenomenon stimulates the growth of the international industrial competition, establishment of the image-building positions of companies, growth of consumer loyalty, and increase in economic development. Its assessment at the level of the leading companies is performed with the help of the ranking Global RepTrak 100. Using the presented methodological framework (stages of the assessment), let us find the ranking of CSR of countries of origin of the considered leading companies (Table 2). Analysis of the results obtained (Table 2) showed that the key positions in the development of CSR of the considered

Rank

Dynamics of change, ± , Rank

2019 (before the pandemic)

2020 (during the pandemic)

2021 (in the post-COVID period)

2019– 2020

2020– 2021

Lego Group (Denmark)

2

1

1

-1

0

Rolex (Switzerland)

1

3

2

2

-1

Ferrari (Italy)

0

4

3

4

-1

The Bosch Group (Germany)

10

9

4

-1

-5

Harley-Davidson (USA)

0

20

5

20

-15

Canon (Japan)

7

14

6

7

-8

Adidas (Germany)

4

8

7

4

-1

The Walt Disney Company (USA)

3

2

8

-1

6

Microsoft (USA)

5

5

9

0

4

Sony (Japan)

6

11

10

5

-1

Levi Strauss (USA)

13

6

14

-7

8

Netflix (USA)

9

7

12

-2

5

Intel (USA)

11

10

16

-1

6

Michelin (France)

8

22

32

14

10

Source Compiled by the authors based on(The RepTrak Company, 2022)

624 Table 2 Ranking of CSR of countries of the leading companies, according to Global RepTrak 100

A. S. Karpov et al. Country

Dynamics of change, ± , rank

Rank 2019 (before the pandemic)

2020 (during the pandemic)

2021 (in the post-COVID period)

2019–2020

2020–2021

Denmark

2

1

1

-1

0

Switzerland

1

3

2

2

-1

Italy

0

4

3

4

-1

Germany

7

8

5

1

-3

USA

6

8

10

2

2

Japan

6

12

8

7

-8

Michelin (France)

8

22

32

14

10

Source Compiled by the authors based on the data from Table 1

countries before the pandemic (in 2019) belonged to Switzerland. This success is due to high indicators of CSR development in the corporate activity of Rolex. The company’s success is due to the orientation of export of high-quality products and high value-added (Raffaelli, 2019). The companies also influenced the country’s sustainable development through using eco-friendly parts; a high level of social benefits for personnel; high value-added of products. During the post-COVID period (2021), the company supported a high level of innovative development (implemented new technologies for creating the prototypes of products with high physical reality) and ensured the environmentalization and the social component. Before the pandemic (2019), Denmark was able to take the 2nd position in the ranking—due to the activities of Lego Group. This was ensured due to the achievement of high values of products’ value-added; eco-friendly materials (Simon, 2019); the company’s orientation at the observation of high social standards, which influenced the quality of products, and the growth of implementation of the innovative ideas of the personnel. These factors ensured the innovativeness and sustainability of the national economy’s development. Lego Group achieved a high level of materials’ eco-friendliness and raised innovativeness due to the expansion of robotization, ensuring a high level of social benefits and sales of products with high value-added. Analysis shows that before the pandemic (2019), the leading companies of Italy were not listed in the Global RepTrak 100 (ranking of the global reputation of companies). During the pandemic and in the post-COVID period, the implementation of CSR elements by Ferrari allowed Italy to take the 4th (in 2020) and 3rd (in 2021) positions, accordingly. The elements of Ferrari’s innovative development were due to implementing innovations in the processes of logistics, namely the creation of the chains of the full cycle of socially important goods (medical and hygienic products). The top-priority factors of Ferrari’s CSR were

social benefits and development of personnel, which led to further participation of personnel in the innovative developments and modernisation; and the economic components, which allowed supporting capitalization due to the price/quality ratio. Germany and Japan ensured the growth of their positions in the ranking Global RepTrak 100 in the post-COVID period. Due to such components of CSR as a reputational image in the sphere of the product (services) quality and expectations of intrusted parties, the leading German (Bosch Group, Adidas) and Japanese industrial companies (Canon, Sony) were able to ensure their indicators of sustainability and innovative development and the similar indicators of their countries in the post-COVID period. This is a sign of an effective anti-crisis approach at the level of these companies. It is possible to see that the leading American and French industrial companies were not able to develop and implement strategic solutions to overcome the consequences of COVID-19, which influenced their positions in Global RepTrak 100. Though these companies ensured the increase in CSR components, their approaches in this direction did not provide the support of high innovativeness and sustainability that are needed under the crisis conditions. This is especially true for Michelin (France), which conducted an insufficiently adequate environmental policy in the sphere of production waste management (Baker et al., 2018).

5

Conclusion

The assessment of the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR was performed. The analysis of this phenomenon was made in two stages: the stages of determining the dynamics of CSR at the level of the leading companies of the world before and during the pandemic and

Corporate Social Responsibility in Industrial Economies …

in the post-COVID period; and the state of assessing the influence of CSR on the state of sustainable and innovative development of countries with a high level of CSR. The results obtained allowed determining the leading companies that ensured the development and implementation of adequate strategic solutions for the development of the main components of this phenomenon. Due to this, the companies ensured the growth of the innovative and sustainable development of their countries.

References Baker, C. R., Cohanier, B., & Gibassier, D. (2018). Environmental management controls at Michelin—How do they link to sustainability? Social and Environmental Accountability Journal, 38(1), 75–96.

625 Chiarini, A., Grando, A., & Belvedere, V. (2021). Disruptive social manufacturing models: Lessons learned from Ferrari cars and Isinnova networks for a post-pandemic value creation path. Production Planning & Control. https://www.tandfonline. com/doi/full/https://doi.org/10.1080/09537287.2021.1986865? scroll=top&needAccess=true. Accessed March 27, 2022. Cornell University, INSEAD, and the World Intellectual Property Organization. (2021). Global innovation index 2020. http://www. euroosvita.net/prog/print.php/prog/print.php?id=6710&5iprdp. rosery. Accessed March 28, 2022. Raffaelli, R. (2019). Technology reemergence: Creating new value for old technologies in Swiss mechanical watchmaking. Administrative Science Quarterly, 64(3), 576–618. Simon, E. (2019). Plastics from a whole planet perspective. Field Actions Science Reports, 19, 36–41. The RepTrak Company. (2022). Global RepTrak 100 2021. https:// www.reptrak.com/rankings/. Accessed March 27, 2022. Tay, S.-L., Chan, T.-J., & Hasan, N. A. M. (2020). Determinants of corporate reputation: A study of consumers’ perspective of Malaysian aviation company. International Journal of Academic Research in Business and Social Sciences, 10(11), 756–770.

Digital Mechanisms of the Future Development of Social Entrepreneurship and Humanisation of Economic Growth Salihbek G. Abdulmanapov , Yahya G. Buchaev , Ahmed G. Buchaev , Zalina M. Abdullaeva , and Khadizhat M. Khadzhalova

seeking opportunities in market insolvency, attracting resources through social interaction, and reaching social goals that facilitate the society's development. The potential of crowdfunding platforms from the position of their ability to solve the tasks before social entrepreneurship is determined; the perspectives of formation and scaling of additional social values due to the existing digital mechanisms and platforms are substantiated. Originality/value: A scheme of the evolution of the concept of social entrepreneurship in the context of the increase in humanisation and development of digital technologies is presented, further directions of its development are substantiated, and the possibility of using crowdfunding platforms in the context of the current social text is described.

Abstract

Purpose: To study the interdisciplinary processes of social entrepreneurship, digital mechanisms, and the concept of humanisation of economic development for substantiating the potential of social entrepreneurship, which is formed due to such symbiosis, and further perspectives of its development. Design/methodology/ approach: The research is based on a detailed overview of the theoretical framework and analysis of empirical studies on a social enterprise in the context of its evolution for a better understanding of its essence and role at the modern stage of development of the humanity. Generalisation and grouping of information on the influence of the digital mechanisms on the state of social enterprise form the possibilities for coordination of digital tools with social tasks and allow substantiating the perspectives for further development of social entrepreneurship in symbiosis with the capabilities of technological progress. Findings: It is determined that social entrepreneurship is an inter-disciplinary category, which unites the concept of humanisation of economic development, formation of social values in important spheres, and the use of accessible digital mechanisms that ensure its natural innovative components. The difference between social entrepreneurship and commercial entrepreneurship forms its advantages, which allow S. G. Abdulmanapov (&) . Y. G. Buchaev . A. G. Buchaev . Z. M. Abdullaeva Dagestan State University of National Economy (DSUNE), Makhachkala, Russia e-mail: [email protected] Y. G. Buchaev e-mail: [email protected] A. G. Buchaev e-mail: [email protected] K. M. Khadzhalova Institute of Socio-Economic Research, Dagestan Federal Scientific Center of the Russian Academy of Sciences, Makhachkala, Russia

Keywords

. ..

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.

Social entrepreneurship Social needs Digital mechanisms Humanisation of economic growth Digital technologies Crowdfunding Sharing economy

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JEL Classification

A13

1

. . . . F14

F43

D64

M13

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M14

.

M29

Introduction

The history of human civilisation consists of the change of the relatively stable phases of development and phase transition. At present, under the conditions of the large-scale global integration of humanity, most of the processes of development take place in view of regional and national specific features, which ensures different levels of involvement with these processes and forms different results of such transition. Under the condition of a transition from the post-industrial to information society, the change of values

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_120

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and milestones takes place. As a result, sustainable constants, which determined development at the previous stages, are subject to transformations, and their place is taken by other constants. In this context, special interest is posed by the implementation of the norms and values of humanism in the economy. The ideas of humanism are a part of the system of national policy, according to which they allow ensuring the basic social needs of the population. However, amid the dynamic development and digital revolution, governments lose the ability to react timely to all social challenges. According to this, based on the value of humanism there form and develop systems which main goal is the formation of social values, the satisfaction of social needs and the provision of public changes in development. Social entrepreneurship acquires an important status and expands the spectre of its activities through closer interaction, better ability for adaptation, and flexibility. In such conditions, technological opportunities which appear for social entrepreneurship under the conditions of development of digital technologies, become the important tools for new relations in the sphere of humanisation of economic development.

2

Materials and Methods

The issues studied in this work envisage the elaboration on the theoretical and practical principles of social entrepreneurship as a separate economic category and definition of conceptual provisions on the treatment of a social enterprise from the position of its influence on economic growth and its humanisation, as well as consideration of the potential of using digital tools in further development of social entrepreneurship. Each of the above directions was studied in scholarly works. Thus, the issues of the essence, role, and specifics of the implementation of social responsibility are studied in Cardella et al. (2021), Dees (2001) and Martin and Osberg (2007). The influence of social entrepreneurship on the processes of economic growth is elaborated in Jilenga (2017), Martin et al., (2010) and Mojica et al., (2009). The use of social entrepreneurship as an object of humanisation is researched in detail in Kemp et al. (2016) and Polanyi (2001). The issues of social entrepreneurship using digital technologies are the object of consideration in Chandna (2022) and Prodanov (2018). It is possible to see that the issues that are considered in this paper were widely studied in the professional scientific literature. However, the dynamics of the sphere of digital technologies and their active interaction with social entrepreneurs form new combinations of interaction, which, in their turn, require constant reconsideration for discovering

their influence on the state of resolution of social issues in a country, determining the directions of their improvement, and substantiating further prospects of development.

3

Results

In scientific circles, the notion of a social company is considered a rather new one. In many sources, this is due to the novelty of the very concept of social entrepreneurship as an isolated direction of activities. However, one of the founders of this concept, J. G. Dees, states that the economic or public activities in the form that is identified today as social entrepreneurship existed in the past as well (Dees, 2001). On the whole, social entrepreneurship is not treated as a stable scientific category. It is defined in different ways among theorists and practitioners. In an attempt to coordinate and unify the vision and treatment of social entrepreneurship in scientific publications, a group of researchers proposed a concept according to which this definition is treated as a certain cluster comprised of three parts: entrepreneurship, sustainable development, and social innovations (Cardella et al., 2021). Entrepreneurial essence forms the methodological basis of the studied category. Social and commercial entrepreneurship uses similar tools to solve the tasks. While in commerce these tasks have primarily monetary measuring, they are related to social problems in the social sphere. The treatment of social entrepreneurship as an element of sustainable development implies the treatment of its purpose as an active subjects, which is the agent of change. The main directions of such entrepreneurial activities are as follows: – – – – – – – –

Solving social problems in the general sense; Providing services to vulnerable groups of population; Providing access to socially important benefits; Creating social value; Creating jobs; Improving the population's living standards; Reducing the number of poor and uneducated people; Preserving the environment and overcoming social injustice.

The innovative essence of social entrepreneurship is its inseparable part, which is manifested in the ability to use resources in an innovative manner to solve social problems. Under the conditions of the market economy, socially active activities are often considered a dissipation of resources, which hinders the achievement of the maximum economic result. The key basis of economic processes is the achievement of a high level of efficiency and profitability. In the context of these phenomena, K. Polanyi formed the concept of Double Movement in society, which was later transformed into the model of three movements:

Digital Mechanisms of the Future Development of Social Entrepreneurship …

– Marketization; – Government social protection; – Humanisation of the economy (Polanyi, 2001). The first position is based on a striving toward competition, individualism, and mercantilism as the basis for high effectiveness. Within this model, social needs that do not contain a commercial interest are satisfied only if there are free resources. The model of government social protection implies the protection of the most vulnerable groups of the population by means of redistribution of a part of the public income with the help of fiscal tools. The humanisation of the economy implies the formation of a strong public movement aimed at solving the social needs of the society through the attraction of business, public activity, personal behaviour, and striving toward self-education and development. While early manifestations of humanisation were predominantly connected to human rights (women's rights and emancipation, fight for peace), further on they transformed into a movement toward sustainable development and free trade. As of now, the key provisions of humanisation are manifested in the form of organisation of space, development of open communication channels for knowledge exchange, and the use of tools of social entrepreneurship and the sharing economy. J. G. Dees opposes social entrepreneurship to failed government actions in the social sphere (Dees, 2001). According to him, the activities that are presented today as social entrepreneurship were performed by business subjects in the past, even if the name was different. In general, the modern state of development of social entrepreneurship is a result of its long evolution, based on certain values, ideas, and concepts, which facilitate the development of humanisation of economic relations and which are manifested in the form of altruism, cooperation, and social responsibility of the business or social entrepreneurship. At present, due to the active development of digital technologies, this list has been supplemented with socio-technical entrepreneurship, and its development might acquire the features of the socio-technical community (Fig. 1). Among the elements of socio-technological entrepreneurship, which is in the active phase of formation and use, an important role belongs to such modern digital mechanisms as crowdsourcing, crowdfunding, the knowledge economy, digital platforms, and the sharing economy (Lehner, 2013). The tools of crowdfunding have a large potential in facilitating the achievement of social goals or assuaging social problems. Most of them could be used to achieve direct or indirect goals according to the tasks of social entrepreneurship (Table 1).

629

Almost all projects of digital technologies have a substantial potential to solve the issues of social interaction, a part of which has been already implemented. Thus, for example, a taxi project Uber allowed improving the level of population employment and raised the quality and comfort of passenger transportation. The use of the service Airbnb allowed a large number of people to make the desired trips for a budget price. A joint work of a large number of authors and editors on the Wikipedia project allowed creating the largest ever online encyclopaedia, providing convenient access to knowledge in all corners of the world. The capabilities of digital mechanisms in the system of social enterprise are extensive. They go beyond the limits of regular social projects, aimed at the increase in comfort, organisation of space, reduction of the level of threats, etc. Due to the use of the technologies of Big Data analytics, they have the potential to identify the problems of communities or individuals. In this case, the scope of opportunities for social entrepreneurship is unlimited. Compared to government social policy, social entrepreneurship is characterised by a higher level of flexibility and adaptation. When the key element that forms the additional value of social actions and decisions is innovations, it is flexibility and adaptability that allow for quick integration of new solutions into the mechanism. Thus, the perspectives of further development of digital social entrepreneurship envisage the comprehensive use of the following four elements: – – – –

Digital Digital Digital Digital

social entrepreneurship; social community; platform of social entrepreneurship; social regulation.

Such integration will allow creating a unique interaction with elements, within which it would be possible to join the opportunities and potential of digital technologies, aimed at creation of new opportunities of social interaction, expansion of the sphere of its application, and creation of conditions for regulating social processes and scaling successful projects.

4

Discussion

Research of digital social entrepreneurship requires the formation of a new paradigm of integration, institutionalisation, and humanisation given the logic of mixed values and digital capabilities. This study further develops the concept of digital and social entrepreneurship, which has an important practical value for promoting solutions aimed at the increase of the effectiveness of social entrepreneurship.

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IDEAS, CONCEPTS, VALUES

Humanisation

Need for social interaction and selfrealisation; Moral and religious value; Human rights; Concept of sustainable development

Altruism

Personal initiative and efforts

Cooperation

Common initiative and efforts

Social responsibility of business

Social responsibility

Use of resources of the business in the interests of society and the community Use of the mechanism of entrepreneurship to create social values

Socio-technical entrepreneurship

Joining the efforts of social entrepreneurs and the abilities of digital technologies

Socio-technical community

Integration of the tools of socio-technical entrepreneurship in the life of the community (group, country, humanity)

Fig. 1 Evolution of the concept of social entrepreneurship in the context of the increase in humanisation and the development of digital technologies. Source authors Table 1 Potential of crowdfunding platforms in solving the tasks of social entrepreneurship Types and names of the platforms

The direction of use in social entrepreneurship

Education – DonorsChoose – GiveCampus – Piggybackr

– Additional opportunity to obtain quality education – Possibility to stimulate inclusive labour integration

Individuals and crowdfunding sites for nonprofits – GoFundMe – FundRazr – Fundly – Classy

– Possibility to attract resources for any social project – Potential for developing and implementing social startups

Musicians and creative projects – Kickstarter – Indiegogo – Patreon

– Employment for socially unprotected groups of population – Opportunities for self-development

Business – Fundable – WeFunder – EquityNet – SeedInvest

– The attraction of resources for any social project – Cooperation between projects

Estate crowdfunding sites – PeerStreet – RealCrowd – RealtyMogul

– Search for premises for an object of social responsibility – Support for people with bad accommodation conditions

Niche crowdfunding – Honeyfund – Slated – Experiment

– Increase in the role of family values – Stimulating the resolution of the niche social problem

Source authors

Digital Mechanisms of the Future Development of Social Entrepreneurship …

The development of social entrepreneurship is related in its nature to the process of the humanisation of the economy, which, contrary to marketization and social protection, considers humans, their health, knowledge, skills, and needs the key value of society. In the context of strengthening the principles of humanisation, human-oriented ideas, values, and concepts evolved gradually from altruism as a means of personal reaction to the social needs of other people to the institutionally mature social entrepreneurship, which, at the present stage of technological development, is transformed into socio-technical entrepreneurship.

5

Conclusions

The results of the performed study allowed for the systematisation of the theoretical grounds for the emergence and development of social entrepreneurship as a social phenomenon and a form of response to the requirements of the processes of economic development humanisation. This allowed tracking the factors and stages of the development of social entrepreneurship, discovering its current state, and elaborating on the prospects for its further development. Under the conditions of the dynamic development of digital mechanisms, social entrepreneurship actively interacts with them, which allows creating additional social values, satisfying a larger range of social needs, and scaling the successful experience of such interaction. Crowdfunding platforms and the sharing economy have the largest potential among the existing technological solutions. The formation of complex digital systems on their basis will allow social companies to achieve better results within the concept of socio-technical community, the next stage of evolution following socio-technological entrepreneurship, and will determine further perspectives of the activities in the sphere of social entrepreneurship.

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References Cardella, G. M., Hernández-Sánchez, B. R., Monteiro, A. A., & Sánchez-García, J. C. (2021). Social entrepreneurship research: Intellectual structures and future perspectives. Sustainability, 13 (14), 7532. https://doi.org/10.3390/su13147532 Chandna, V. (2022). Social entrepreneurship and digital platforms: Crowdfunding in the sharing-economy era. Business Horizons, 65 (1), 21–31. https://doi.org/10.1016/j.bushor.2021.09.005 Dees, J. G. (2001). The meaning of “social entrepreneurship”. https:// centers.fuqua.duke.edu/case/knowledge_items/the-meaning-ofsocial-entrepreneurship/. Date of access: April 15, 2022. Jilenga, M. T. (2017). Social enterprise and economic growth: A theoretical approach and policy recommendations. International Journal of Academic Research in Accounting Finance and Management Sciences, 7(1). https://doi.org/10.6007/ijarafms/v7-i1/2538 Kemp, R., Strasser, T., Davidson, M., Avelino, F., Pel, B., Dumitru, A., Kunze, I., Backhaus, J., O’riordan, T., Haxeltine, A., & Weaver, P. (2016). The humanization of the economy through social innovation. Unu-Merit.Nl. https://kemp.unu-merit.nl/docs/The% 20humanization%20of%20the%20economy%20-%20Kemp%20et %20al%20for%20SPRU%20conference%202016.pdf. Date of access: April 15, 2022. Lehner, O. M. (2013). Crowdfunding social ventures: A model and research agenda. Venture Capital, 15(4), 289–311. https://doi.org/ 10.1080/13691066.2013.782624 Martin, M., Picazo, M., & Navarro, J. (2010). Entrepreneurship, income distribution and economic growth. Springer Science. Martin, R. L., & Osberg S. (2007). Social entrepreneurship: The case for definition. Stanford Social Innovation Review, 5(2), 28–39. Mojica M., Gebremedhin T., & Schaeffer P. (2009). An empirical analysis of link between entrepreneurship and economic growth in West Virginia. Research Paper 2009. Polanyi, K. (2001). The great transformation: The political and economic origins of our time, 2nd ed. Foreword by Joseph E. Stiglitz; introduction by Fred Block. Beacon Press Prodanov, H. (2018). Social entrepreneurship and digital technologies. Economic Alternatives, 1, 123–138.

Formation of Experimentation Skills in Children 5–6 Years Old Through Visual Modeling Tatyana U. Plotnykova , Elena A. Sidyakina , and Marina A. Tseneva

Abstract

This paper focuses on the relevant problem of the formation of experimentation skills in children aged 5–6 through visual modeling. The definition of the concepts of “experimentation skills” and “visual modeling” is given. A review of Russian literature devoted to studying this problem is carried out. The paper describes the phased work on the formation of experimentation skills in children aged 5–6 through visual modeling. The authors reveal the specifics of the process: starting with the organization of experiments using ready-made visual models illustrating the sequence of actions, the independent creation of visual models for experiments by children, and the development of a visual model of a universal experimentation algorithm. A visual model of a universal experimentation algorithm and a series of experiments using visual models are of great interest. Keywords

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Children of senior preschool age Experimentation Experimentation skills Cognitive research activity Sign-symbolic activity Visual modeling

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JEL Classification

C90

1

. . . C93

D83

D84

Introduction

At the present stage of the development of society, the requirements for a person are changing. The new personality is independent because it can explore, predict, and solve problems. T. U. Plotnykova (&) . E. A. Sidyakina . M. A. Tseneva Tolyatti State University, Tolyatti, Russia e-mail: [email protected]

Information obtained by children through exploratory search is more reliable than the knowledge about the world that they acquire through reproductive means. Experimentation contributes to a deeper knowledge of the phenomena and objects of the surrounding world and the connections between them. Children independently do, hear, see, and, according to this, permanently remember. Currently, children’s experimentation is popularized in the practice of preschool organizations. The effectiveness of experimentation depends on the formation of appropriate skills in children. Therefore, an important task is to find a means of mastering the skills of experimentation in children 5–6 years old. It is necessary to develop ways to use visual modeling to form experimentation skills in preschoolers. It is also crucial for the teacher to use visual models using a creative and playful approach based on the tasks of the main educational program of preschool education and specific conditions.

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Materials and Methods

The theoretical basis of the research is as follows: • The provisions of Poddyakov (2009) about children’s experimentation; • Galperin’s ideas (Galperin, 1985) about the gradual formation of mental actions in children; • The cultural and historical concept of the development of the psyche by Vygotsky (2020); • Studies by Bottrill (1996), Dybina and Kuzina (Dybina, 2002, 2005; Dybina & Kuzina, 2011; Dybina et al., 2017), Martynova (Martynova & Suchkova, 2012), Zill and Resnick (2009), Prokhorova (2015), Russ (1996), Khmelkova (2016), Chapman (1991), and Shchetinina (2012) in the area of search and cognitive activity of preschoolers; • The definition of research skills by Savenkov (2004);

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_121

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• Provisions on sign-symbolic activity in preschool age and on visual modeling by Wenger (1982), Salmina (1996), Silnova and Filimonova (1999), Sapogova (1992), and Uvarov (1971). According to Poddyakov, at younger preschool age, children already require an independent study of the surrounding world. He called this need “disinterested knowledge” (Poddyakov, 2009). Experimentation gives a child the opportunity to be a researcher, change an object or phenomenon, and satisfy the need to obtain new knowledge. At the beginning of experimentation, children have a new vision of the connections and relations of the objects of the surrounding reality, which is firstly characterized by “uncertainty.” “Uncertainty” creates the necessary problematic vision—children seek to clarify the information received, and search activity appears (Poddyakov, 2009). Experimentation involves activities that are identified as research skills by Savenkov. “These actions are mastered as skills: to see problems, ask questions, put forward hypotheses, define concepts, classify, and observe; the skills and abilities to conduct experiments, structure the material obtained during the study, draw conclusions, prove and defend one’s ideas” (Savenkov, 2004). The significance of the use of models in the mental development of children was studied by Wenger, Glotova, Salmina, Sapogova, Silnova, and Filimonov. In the process of operating with models, children develop special relationships (“model-original”), and two interconnected “reflection plans—plan of real objects and plan of models that reproduce these objects” (Wenger, 1982). Wenger determined the following features of the use of visual modeling in preschoolers: • The need to model spatial relationships with children and temporal, social, mathematical, and logical relations; • The need to start modeling from single specific situations, proceeding to the construction of generalized models; • The first models are applied that are outwardly similar to real objects and gradually move on to models with a conditional-symbolic representation of relationships; • It is also expedient to use ready-made models and then offer to build those (Wenger, 1982). Visual modeling is a kind of sign-symbolic activity. According to Uvarov, sign-symbolic activity is the activity that involves the mental manipulation of signs and symbols and the development and creation of sign systems. Such activity expands the possibilities of cognition of the surrounding world and its transformation (Uvarov, 1971). According to Galperin, visual modeling contributes to the study by a child of his or her activity and understanding of

T. U. Plotnykova et al.

the indicative basis of this activity. The model shows a child the object’s structure and, in the case of experimentation, the algorithm for conducting it. In this case, a child becomes the subject of activity. The correct construction and organization of experimentation using visual modeling, considering the individual and age characteristics of children, will contribute to the formation of experimentation skills in children 5–6 years old in the process of educational activities. An analysis of the considered problem at the scientific, theoretical, and methodological levels indicates that the possibilities of using visual models in the process of developing experimentation skills in children 5–6 years old have not been sufficiently studied. Therefore, our research aims to theoretically substantiate and experimentally test the possibilities of visual modeling in the formation of experimentation skills in children 5–6 years old.

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Results

The experiment involved 60 children of senior preschool age (children 5–6 years old), kindergartens of the Autonomous non-profit organization of preschool education “Lada Childhood Planet” (Togliatti, Russia). Thirty children were included in the experimental group (EG), and 30 children made up the control group (CG). Based on the research and methodological developments of Prokhorova (Prokhorova, 2015), indicators for the study of experimentation skills and diagnostic techniques in children aged 5–6 were selected (Table 1). Let us give an example of some diagnostic techniques. The diagnostic technique No. 1 “Pure Water” was carried out to determine the level of formation of the ability to see the problem and determine the purpose of the experiment. Children were offered a problematic situation that needed to be solved: “The guys went camping; they needed clean water for cooking. There was little clean water with them, and the guys decided to take water from the lake. But they saw that the water in lake contains sand, small stones, plants, and clay” (Prokhorova, 2015). Children had to make assumptions, answering the following questions: • • • •

“What would you do in such situation?”; “What would you do?”; “How can you make clean water from lake?”; “Why?”.

The analysis of the results showed that children with a low level of the ability to see the problem and determine the purpose of the experiment (6 children (20%) in the EG and 7 children (23%) in the CG). Children of this group did not

Formation of Experimentation Skills in Children 5–6 Years Old Through Visual Modeling Table 1 Diagnostic map of the research

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Indicator

Diagnostic technique

The ability to see a problem and determine the purpose of the experiment

Diagnostic technique No. 1 “Pure water” (solving a problem situation) (author: Ogorodnikova)

The ability to analyze an object or phenomenon, identify significant links and features, compare various facts

Diagnostic technique No. 2 “Sugar” (solving a problem situation) (author: Prokhorova)

The ability to make hypotheses

Diagnostic technique No. 3 “Why?” (author: Kireeva)

The ability to plan actions for achieving the goal

Diagnostic technique No. 4 “Hot water” (solving a problem situation) (author: Ogorodnikova)

The ability of a child to perform actions according to the algorithm

Diagnostic technique No. 5 “Experimental algorithm” (author: Afanasyeva)

The ability to analyze the results of actions

Diagnostic technique No. 6 “Magic colors” (author: Kireeva)

Source Compiled by the authors

define the problem, even with the teacher’s help; they could not determine the purpose of the experiment. Children generally answered that they did not know what they should do. The average level was determined in 20 children, which was 67% in the EG and CG. Children set a goal with the guidance of a teacher, understood and named the problem, and expressed their assumptions. It was difficult to answer the question of how to purify the water; there were mostly no answers. For example, they answered: “Water needs to be purified so that it can be drunk.” A high level was diagnosed in 4 children (13%) in the EG and 3 children (10%) in the CG. Children independently named the problem, set a goal, and actively made suggestions regarding its solution. For example, they answered, “I would pull out of the water every large thing that I can find here (pebbles, algae, and shells). Then we need to clean the water from all of them. This can be done with a sieve or rag.” Let us describe a diagnostic technique No. 3 “Why?”, which is used to identify the level of formation of the ability to put forward hypotheses and assumptions. Children were asked to put forward their hypotheses about how birds find their way home, flying away to warmer climes in winter; whether snow can be black; why a dog is not kind but angry, etc. The analysis of the results of the diagnostic technique showed that almost half of the surveyed children found it difficult to make their assumptions; accordingly, children did not want to answer the questions posed, did not make contact, and did not use the help of a teacher. A low level of formation of the ability to put forward hypotheses and assumptions was revealed in 12 children (40%) in the EG and 14 children (47%) in the CG.

Children with an average level of the studied skills put forward their own hypotheses but experienced difficulties in explaining and arguing them. Thus, the average level was detected in 16 children (53%) in the EG and 14 children (47%) in the CG. The examples of answers were as follows: “Birds fly to warm countries” or “Birds know where to fly.” To the question “Can the snow be not white but black?” children answered: “It probably happens.” The children used the teacher’s help in the form of leading questions when they answered the question “Why?”. A high level was detected in 2 children (7%) in the EG and the CG. Children did not need help; they reasoned and made assumptions. They answered that the snow is black on the roads after cars, that birds fly away to warmer climes every year, and remember the road. The results of the ascertaining experiment demonstrated that there is the predominant number of children with a low and medium level of experimentation skills. The levels of formation of experimentation skills are conventionally singled out and characterized. A low level of experimentation skills is revealed in 8 children (27%) in the EG and 9 children in the CG (30%). In performing tasks of diagnostic methods, children did not use the help of a teacher or could not cope with some tasks even with the help. Difficulties were observed in the analysis of objects or phenomena; children could not distinguish characteristic properties, did not single out the problem and found it difficult to put forward assumptions. Difficulties in building a sequence of actions in the experiment, lack of logic, and disobedience to the action plan were noted. Children could not draw conclusions. The average level was diagnosed in 18 children (60%) in the EG and 17 children (57%) in the CG. Children of this group showed the ability to analyze and highlight the main

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characteristic features of objects or phenomena, their properties and qualities, but they needed the help of a teacher. With little prompting, the teachers could name the purpose of the experiment and the problem. Children attempted to put forward hypotheses but found it difficult to argue their assumptions. Children were active during the construction of the experiment plan together with the teacher, did not deviate from the goal, and acted in accordance with the plan. With the help of leading questions, conclusions could be drawn. There is also a high level in 4 children (13%) in the EG and CG. Children of these groups showed independence in the process of completing tasks; they did not need the guiding help of a teacher: they defined the problem, actively assumed, set the goal of the experiment, and indicated the essential features of the phenomenon or object of analysis. Children were active – they reasoned and argued, independently proposed an experiment plan, acted according to the plan during the experiment, brought all actions to an end, and drew conclusions. The results of the statement showed the need for purposeful formation of experimentation skills in children aged 5–6. The purpose of the formative experiment was to develop and test the content of the work on the formation of experimentation skills in children aged 5–6 through visual modeling. Developing the content of the formative work, the authors were guided by the research of Prokhorova, Salmina, Sapogova, Silnova, Filimonova, and Shchetinina. The program of the forming experiment included the following stages: 1. Motivational stage. At this stage, it was important to create in children an interest in conducting experiments; illustrative experimentation was carried out (ready-made visual models were used, sequentially showing the steps of the experiment), aimed at obtaining children’s knowledge about the qualities and properties of objects and phenomena. 2. Effectively teaching stage. Exploratory experimentation was carried out, during which children independently created visual models to illustrate the actions in the experiments: the qualities and properties of substances already known to them were studied, which helped expand children’s ideas about water, air, sand, and clay. 3. Effectively-generalizing stage. This means the creation of a visual model of a universal experimentation algorithm together with children. Let us present the content of some stages. Experimentation was carried out in the course of the joint activities of the teacher and children during regime moments.

T. U. Plotnykova et al.

At the motivational stage, the following experiments were implemented with children: • • • • •

“Pour—pour out—measure”; “Why is not it poured out?”; “Water and air”; “Pressure”; “Scattering toothpicks.”

The purpose of the motivational stage is to create interest and a positive attitude in children towards experimentation. Each joint activity involved a ritual: forest fairy (teacher), who introduced children to interesting facts about the phenomena and properties of inanimate nature. Such work created the necessary mood for children and interest. At this stage, ready-made visual models were used to conduct experiments with water and air, illustrating the sequence of actions in a particular experiment. Pictures-algorithms for conducting experiments were sent by the Wise Owl in her letters to children; so, children would strive to learn something new. At the end of any experiment, children wrote letters to the Wise Owl, in which they expressed their emotions from the experiment, sketched or wrote down their actions and steps. At the effective-learning stage, a series of experiments were carried out: “Sinking—not sinking,” “Aggregate states,” “Magic sand,” “Dry from water,” and “Mixing.” Before conducting a series of experiments, the teacher read to children a letter from the Wise Owl, in which it asked them to help pick up pictures-algorithms for its experiments. At this stage, children have already had an active position. They independently created visual models for experiments, which they carried out together with the teacher with his support and guidance. Appropriate symbols were selected and invented to designate the algorithm of actions carried out in the experiment. After each experiment, children were asked to draw sequential actions. Thus, the authors give an example of a visual model that reflects the algorithm of actions during the experiment, compiled by children (Fig. 1). All visual models-algorithms of experiments drawn by children, together with the teacher, were put into envelopes and sent to the Wise Owl. At the end of the active-learning stage, by independently compiling visual models for experiments, children learned to determine the experiment’s goal, the steps to achieve it, and analyze the result. The goal of the effective-generalizing stage is to create a visual model of the universal experimentation algorithm and develop the ability to plan an experiment according to this model in children aged 5–6. The playful and stimulating idea is that the teacher read to children a message from the Wise Owl, where it praised

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Fig. 1 Visual model of the algorithm for conducting the “Pressure” experiment. Source Compiled by the authors

Table 2 Visual model of the universal algorithm, reflecting the actions of children at each stage of experimentation

I Stage Goal setting (What are we going to do? Why are we doing this? What do we want to know?)— define the problem and set a goal

II Stage Planning (How are we going to do it? What is the first step? What is the next step?)— determine the steps-actions to achieve the goal and their sequence and select materials

III Stage Execution (What are we observing? Why is this happening?)—carry out actions according to the plan

IV Stage Result (What happened? Was the goal achieved?)— draw conclusions and discuss the result

Source Compiled by the authors

and thanked them for all visual models of experiments, which children had made, but it did not have enough space to store them. The teacher and children recalled and considered the most liked experiments and visual models for them. Comparing and reflecting, the authors concluded that all experiments and visual models are similar and have important steps, which are repeated in each experiment. Children actively participated in the discussion, recalled what they did during the experiments, what questions they answered at each stage, and suggested what steps could be written down at one stage or another. As a result of such work, the visual model was obtained, illustrating the sequential steps that any experiment can have. There are four stages (Table 2).

The use of visual modeling activates the cognitive process of children, underlies the formation of experimentation skills, and ensures that children remember the algorithm for conducting the experiment since all steps and actions in the experiment are indicated by conventional symbols. It also allows reproducing familiar experimenting algorithms in other experiments.

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Conclusion

The control stage of the experiment was carried out to assess the dynamics of the level of formation of experimentation skills in children 5–6 years old. Positive dynamics in the

638 Fig. 2 The level of formation in children aged 5–6 of experimentation skills at the control stage. Source Compiled by the authors

T. U. Plotnykova et al.

70%

66%

57%

60% 50% 40%

33%

27%

30%

10%

20%

7%

10% 0%

CG low level of indicators expression was revealed. The number of children with a low level of experimentation skills has decreased by 20%. The number of children with a high level of diagnosed skills has also increased by 14%. If children with a low and medium level of experimentation skills prevailed in number at the ascertaining stage, there would be a bigger count of children with an average and high level of the studied skills at the control stage. The authors demonstrated the difference in the study results of the experimental and control groups in the diagram (Fig. 2). After the formative work was carried out, the level of experimentation skills in children aged 5–6 in the experimental group changed qualitatively. Most of all, in a positive direction, changes were noted in terms of indicators—the ability to make assumptions and the ability to analyze the result of their activities. In the control group, the level of development of experimentation skills practically did not change compared to the results of the ascertaining stage of the study. Compared with the experimental group, there are 17% fewer children with a high level of experimentation skills and 26% children with a low level of the studied skills, which indicates the expediency of organizing phased work to develop these skills in children.

References Bottrill, P. (1996). Children thinking and learning through design activity at age six. Early Child Development and Care, 121, 147– 163. https://doi.org/10.1080/0300443961210112 Chapman, S. S. (1991). Introducing young children to real problems of today and tomorrow. Gifted Child Today, 14(2), 14–18. https://doi. org/10.1177/107621759101400204 Dybina, O. V. (2002). Search and cognitive activity of preschool children: A textbook for students of the faculty of preschool education. Publishing House of the Development Through Education Foundation.

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Dybina, O. V. (2005). The unknown is nearby: Entertaining experiences and experiments for preschoolers. Creative Center “Sphere.” Dybina, O. V., & Kuzina, A. Yu. (2011). The role of project activities in the development of cognitive interest in the history of the objective world among older preschoolers. Kindergarten: Theory and Practice, 9, 98–104. Dybina, O. V., Shchetinina, V. V., & Poddyakov, N. N. (2017). Child in the world of search. Program for the organization of cognitive research activities of preschoolers, 2nd ed. Creative Center “Sphere.” Galperin, P. Y. (1985). Teaching methods and mental development of child. Moscow University Press. Khmelkova, E. V. (2016). On the issue of educational and research activity of preschoolers. Vestnik of the Mari State University, 2(22), 39–42. Martynova, E. A., & Suchkova, I. M. (2012). Organization of experimental activities for children aged 2–7 years: Thematic planning, recommendations, class notes (2nd ed.). Uchitel. Poddyakov, N. N. (2009). Children’s experimentation and the heuristic structure of the experience of a preschool child. Researcher, 2(2), 68–75. Retrieved from https://cyberleninka.ru/article/n/detskoeeksperimentirovanie-i-evristicheskaya-struktura-opyta-rebenkadoshkolnika/viewer. Accessed January 7, 2021. Prokhorova, L. N. (Ed.). (2015). Organization of experimental activities of preschoolers: Guidelines (3rd ed.). ARKTI. Russ, S. W. (1996). Development of creative processes in children. New Directions for Child Development, 72, 31–42. https://doi.org/ 10.1002/cd.23219967204 Salmina, N. G. (1996). Sign-symbolic development of children in elementary school. Psychological Science and Education, 1(1), 73–81. Salmina, N. G., Silnova, O. V., & Filimonova, O. G. (1999). Journey to the country “Symbolics”: Elective course for students of a scientific school. Education, 2, 82–89. Sapogova, E. E. (1992). Modeling as a stage in the development of sign-symbolic activity of preschoolers. Questions of Psychology, 5– 6, 26–30. Savenkov, A. I. (2004). Methods of research education for preschoolers. Publishing House “Educational Literature”. Retrieved from https://studfile.net/preview/6306191. Accessed June 30, 2021 Shchetinina, V. V. (2012). On the development of cognitive research activities of preschoolers. In Problems of preschool education at the present stage: Collection of scientific articles (Issue 10, Part 2, pp. 133–143). Ulyanovsk, Russia. Uvarov, L. V. (1971). Symbolization in cognition. Science and Technology, USSR.

Formation of Experimentation Skills in Children 5–6 Years Old Through Visual Modeling Vygotsky, L. S. (2020). Psychology of human development. Eksmo. Wenger, L. A. (1982). Development of the ability for visual spatial modeling. Preschool Education, 3, 46–52. Zill, N., & Resnick, G. (2009). Role of early childhood education intervention programs in assisting children with successful

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transitions to school, 2nd ed. Westat, Child and Family Studies. Retrieved from https://www.child-encyclopedia.com/pdf/expert/ school-readiness/according-experts/role-early-childhood-educationintervention-programs-assisting. Accessed June 30, 2021.

Project Technology in Education as a Promising Form of University and Business Cooperation Larisa A. Olkhova , Olga N. Kozyreva , Tatiana V. Muravleva , Marina A. Rzhevskaya , and Olga S. Kirillova

Abstract

The article presents the experience of partnership between universities and business partners in the development and implementation of joint projects. The article reflects the features and methods of introducing project-based education into the education and training system. The authors identified pedagogical conditions as the main condition for the effective implementation of the project. Also, a complex of risks limiting the effectiveness of design technology in the educational process has been identified. Keywords

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Project technology Pedagogical conditions Cooperation as a system of interaction between the university and business partners Risks of implementation of project technology

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JEL Classification

M2

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Introduction

Currently, the higher education system is being reoriented to new values associated with the formation of information and digital literacy, the acquisition of new competencies related to the implementation of social interaction based on the principles of cooperation. L. A. Olkhova (&) . O. N. Kozyreva . T. V. Muravleva . M. A. Rzhevskaya Volga Region Cooperative Institute (branch) of Russian University of Cooperation, Engels, Russia e-mail: [email protected] O. S. Kirillova Saratov State University, Saratov, Russia e-mail: [email protected]

The emergence of innovations in pedagogical technologies occurs as a result of the generation and successful testing of new ideas related to increasing the competitiveness of Russian universities, as centers of innovation that contribute to the formation of digital skills, the creation of centers, advanced training of specialists, and the development of project activities. The ongoing socio-economic transformations require updating the education system, methodology and technology of organizing the educational process in educational institutions of various types, because the requirements of employers to graduates and their competitiveness in modern conditions are increasing. Strengthening of the humanitarian component of the content of education, continuous and frequent changes in curricula and content of academic disciplines predetermine the constant search for new forms and technologies of education. An innovative educational technology, in our opinion, should include several interrelated components: modern teaching methods; modern content, which can significantly increase the efficiency and quality of training; modern training infrastructure (Demtsura et al., 2020). The importance of using innovative technologies in the educational process is no longer disputed by anyone, but resistance to change still remains, because the stereotypes that exist in the mass consciousness often impede the renewal and implementation of new teaching methods and technologies in the educational process. Our study examines the project activities of university students, which allows them to successfully solve the problems of optimal distribution of available resources, contributes to the development of creativity, and the ability to search for non-standard solutions due to its innovative potential, because it combines both traditional and modern teaching methods that allow increasing efficiency and quality of training of specialists. At the same time, the implementation of the project activities of students at the university is fraught with certain difficulties.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_122

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One of them is resistance to changes, both on the part of teachers and on the part of students, due to the stereotypes existing in the mass consciousness that prevent the renewal and implementation of new teaching methods and technologies in the educational process using modern instant messengers and digital platforms.

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projects, more than half of the respondents know about projects implemented by the university and the department. 2. As the most promising areas of participation in the development of project activities, the students named: business projects implemented jointly with employers or business communities, as well as research projects implemented within the framework of grants.

Methodology

A significant contribution to the development of innovative learning technologies was made by: Demtsura S.S., Pluzhnikova I.I., Gordeeva D.S., Yakupov V.R., Alekseeva L. P. (Gagarina & Koldaev, 2018), Gagarina L.G., Koldaev V. D. (Demtsura et al., 2020) and other researchers. Babushkin A.N., Klyuev A.K., Kruzhaev V.V., Larionov V.N., Pamyatnykh E.A., Prokopyev V.P., Rogozhin S. A., Tretyakov V.E. dealt with the implementation of the design method in the educational process of higher education (Babushkin et al., 2007). In the works of such researchers as: Lilyakevich A.A., Moskalets Yu.V., the main provisions of pedagogical innovation are given (Lilyakevich & Moskalets, 2021). The works of the following researchers are devoted to the problems of interaction of subjects of the educational process in the course of the implementation of the project teaching method: Belolobova A.A. (2020), Yagutkina E.S., Orekhova E.A., Larina E.B. and others (Yagutkina, 2021). According to the authors, an innovative educational technology is a system that is a set of promising, including digital, teaching methods aimed at increasing the efficiency of the educational process; the use of which should be provided by a developed infrastructure (Gagarina & Koldaev, 2018). The emergence of innovations in pedagogical technologies occurs as a result of the generation and successful testing of new ideas related to increased competitiveness of Russian universities, as centers of innovation that contribute to the formation of digital skills, the creation of centers, advanced training of specialists, and the development of project activities. One of the promising areas for the integration of innovative educational technologies is the project-based teaching technology. The authors analyzed the experience of using design work, implemented in the process of teaching students in the universities of Saratov, and, based on the results of the study, the following conclusions were drawn: 1. The project as one of the forms of organization of the educational process is interesting to most of the respondents: so 85% of them are familiar with the basics of project activities, 90% can highlight the main stages of work on projects, 70% name more than 5 types of

Integration of design technology into the educational process allows solving the following problems (Lilyakevich & Moskalets, 2021): • optimal use of available resources; • development of creativity and the ability to search for non-standard solutions due to its innovative potential, because it combines both traditional and modern teaching methods; • improving the efficiency and quality of training. The active use of digital technologies is a prerequisite for effective work on the implementation of project activities. The specifics of using digital tools depends directly on the stages of project implementation. After analyzing the successful domestic experience in the application of project activities, the most common digital tools used in their development and implementation can be selected: 1. Social services—activate the collective work of the project participants, provide the search and dissemination of information. 2. Google tools: • Google Forms allow creating a registration form and organizing feedback from project participants; • Google Spreadsheets and Google Presentations— simplify and speed up the processes of interaction between project participants, providing online sharing. 3. Cloud storage with the ability to share and edit documents. The most common storages are: Yandex, Google, Mail.ru. (Belolobova, 2020). The authors analyzed the experience of Russian universities that actively use project-based learning in the educational process and highlighted the most successful solutions for its implementation: (1) Institutional changes that allow for the integration of project work into the learning process of all students; (2) Changes in the organization of the educational process, entailing changes in curricula (in certain areas of training);

Project Technology in Education as a Promising Form of University and Business Cooperation

(3) Management changes—the creation of separate divisions overseeing project activities within the university; (4) Changes in pedagogical technologies associated with the need for advanced training, studying and retraining of teachers and leaders of project groups (curators and mentors), the introduction of new credit units and educational formats, the attraction of a larger number of practicing teachers in the educational process at the university (in accordance with the Federal State Educational Standard); (5) Communication changes—the emergence of new information channels, project portals and sites (Yagutkina, 2021). If we consider the methodology of project-based education as the most promising direction for the development of the education system in the Russian Federation, it should be noted that the pedagogical conditions for the implementation of the educational process that exist in universities are acquiring special significance. We will mean a complex of controlled circumstances and directions of pedagogical activity, which together ensure the achievement of the effectiveness of the result of the project learning process at its various stages and in general, as pedagogical conditions. The authors identified the following as the necessary pedagogical conditions for the implementation of project-based learning:

• identification of motivation and level of awareness of all subjects of project activities; • familiarization of students with practical methods of solving the assigned tasks and stimulating their use in project activities; • stimulating the activity, independence, initiative and responsibility of students in the course of work on the project, ensuring involvement and interest in it; • creating conditions of trust between students and teachers or mentors (practitioners-employers) in the course of the project; • coordination of the goals and content of the project with all subjects of project activities; • distribution of all types of resources and roles in the project team during the implementation of project activities; • designation of the necessary professional and qualification requirements for the project manager. Features of the interaction of pedagogical conditions of various orientations are presented in Fig. 1.

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Results

At the same time, the implementation of the project activities of students at the university is fraught with certain difficulties. One of them is resistance to change, because the

•Familiarization of students with practical methods for solving the assigned tasks and stimulating their use in project activities

• Joint solution of problems by all subjects of project activities

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Designation of the necessary professional and qualification requirements for the project manager

Distribution of all types of resources and roles in the project team during the implementation of project activities

Joint generation of reports on the results of project activities

Coordination of actions of all subjects of project activities

Fig. 1 The system of pedagogical conditions in the educational process. Source Compiled by the authors

•Stimulating the activity, independence, initiative and responsibility of students in the course of work on the project, ensuring involvement and interest in it

•Creation of conditions of trust between students and teachers or mentors (practitioners-employers) during the implementation of the project

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stereotypes that exist in the mass consciousness often impede the renewal and implementation of new teaching methods and technologies into the educational process. The main limiting factor on the part of business structures is the absence or inaccuracies in the formulation of the terms of reference (Babushkin et al., 2007). A number of conclusions can be drawn by analyzing the factors limiting the use of project activities in universities:

L. A. Olkhova et al.

• lack of coherence and ways to achieve goals; • the cost of organizing research work at a high desired level (expensive); • doubts about security (work with personal data of employees).

4 • the leading positions are occupied by disagreements and conflicts in the team, noted by 70% of the respondents; • also, 60% of the respondents named the following factors as inhibiting the integration of project activities by higher educational institutions: the lack of time to develop innovations and the absence of a well-founded strategy for the development of an educational institution; • 50% of survey participants named the lack or insufficient ability to use research skills. Risk factors for the implementation of project training while ensuring interaction between business structures and universities. From the point of view of educators: • • • • • • •

lack of time to prepare; lack of interest on the part of students; health condition; limited resources or life circumstances; professional burnout. From the point of view of students: incompetence of the project manager (large baggage of theoretical knowledge and lack of practical experience in this field of activity); • lack of motivation and interest in participating in project activities; • limited (tight) terms for the project. From the point of view of the organization of the educational process: • lack of interest in organizing project activities; • long terms for the conclusion of contractual relations for the implementation of projects; • lack of coordination of actions and elements of the educational process. From the point of view of employers, customers and business project managers [8]: • weak material and technical base for carrying out research work;

Conclusion

According to the authors, a possible result of the application of design technology in the process of cooperation between universities and business partners may be: • replacing the «teacher–student» model with the «personality–personality» model in the educational process; • ensuring a differentiated approach to the organization of the educational process; formation and development of an individual trajectory for organizing project activities, considering the priorities of a potential employer; • the use of modern digital educational technologies and the creation of a digital educational environment conducive to the implementation of project activities; • organization of the educational process, differentiated considering the capabilities and abilities of students; training in self-examination and reflexion skills.

References Babushkin, A. N., Klyuev, A. K., Kruzhaev, V. V., Larionov, V. N., Pamyatnykh, E. A., Prokopyev, V. P., Rogozhin, S. A., & Tretyakov, V. E. (2007) Formation of design structures of scientific and educational activities of a classical university. University Management: Practice And Analysis, 1. https://cyberleninka.ru/ article/n/formirovanie-proektnyh-struktur-nauchno-obrazovatelnoydeyatelnosti-klassicheskogo-universiteta. Data accessed December 15, 2021. Belolobova, A. A. (2020). Network project activity and digital tools for its implementation. Open Education, 4. https://cyberleninka.ru/ article/n/setevaya-proektnaya-deyatelnost-i-tsifrovye-instrumentydlya-eyo-realizatsii. Data accessed December 15, 2021. Demtsura, S. S., Pluzhnikova, I. I., Gordeeva, D. S., Yakupov, V. R., & Alekseeva, L. P. (2020) Modern innovative educational technologies. BGZh, 4(33). https://cyberleninka.ru/article/n/sovremennyeinnovatsionnye-obrazovatelnye-tehnologii. Data accessed December 15, 2021. Gagarina, L. G., & Koldaev, V. D. (2018). Innovative educational technologies of distance learning. ESGI, 4(20). https://cyberleninka. ru/article/n/innovatsionnye-obrazovatelnye-tehnologiidistantsionnogo-obucheniya. Data accessed December 15, 2021. Lilyakevich, A. A., & Moskalets, Y. V. (2021). Pedagogical conditions for the formation of research competence of learning educational organizations. Innovative Aspects of the Development of Science and Technology, 6. https://cyberleninka.ru/article/n/ pedagogicheskie-usloviya-formirovaniya-issledovatelskoy-

Project Technology in Education as a Promising Form of University and Business Cooperation kompetentsii-obuchayuschihsya-obrazovatelnyh-organizatsiy. Data accessed December 15, 2021. Yagutkina, E. S. (2021). Socio-economic factors of the methodology for analyzing the conjuncture of the educational services market.

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Moscow Economic Journal, 3. https://cyberleninka.ru/article/n/ sotsialno-ekonomicheskie-faktory-metodologii-analizakonyunktury-rynka-obrazovatelnyh-uslug. Data accessed December 15, 2021.

Innovative Corporate Strategies as Sources of Sustainable Development Natalia Yu. Shadchenko , Liudmila V. Syrnikova , Elena G. Zhulina , Svetlana A. Efimenko , and Tatiana V. Boldyreva

be justified if it creates additional economic benefits for its participants and ensures their sustainability through innovative solutions.

Abstract

Modern trends in economic development, which have been formed under the influence of digitalization factors and the global pandemic, objectively lead to the need to implement cooperation strategies to ensure the sustainability of business in various areas of activity based on innovation. Despite lockdowns and quarantine measures, businesses based on digital transformation were able to realize their potential through the development of new types of activities, adjustments to ongoing strategic plans, implementation of joint projects, and reduction of entrepreneurial risks. Modern entrepreneurial cooperation is attractive for business because it’s a cooperation of resources of individuals and legal entities, based on new principles of management and organization of labour, and it also has innovative potential. Small and medium-sized businesses suffered the greatest losses from the pandemic, for which cooperation issues often become vital. Today, in the context of economic recovery, cooperation helps to maximize profits for its participants, and a competitive strategy promises lower dividends or more risk. In addition, cooperation makes it possible to combine efforts in the area of innovative developments that require new ideas and significant investments, which aren’t always within the power of an individual entrepreneur. The choice of a specific innovative cooperation strategy is a key problem and task for future partners. Cooperation can N. Yu. Shadchenko (&) . L. V. Syrnikova Volga Region Cooperative Institute (branch) of Russian University of Cooperation, Engels, Russia e-mail: [email protected] E. G. Zhulina Yuri Gagarin State Technical University of Saratov, Saratov, Russia S. A. Efimenko Saratov State University, Saratov, Russia T. V. Boldyreva Russian University of Transport, Moscow, Russia

Keywords

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Cooperation Strategies Innovation Principles of sustainability

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Wikinomics

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JEL Classification

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Introduction

The problematic area in the implementation of cooperation strategies is the adoption of a managerial decision on cooperation with another market player and its scale. Cooperation presupposes the integration of resources to achieve the common goal of partners, and this, in turn, presupposes the disclosure of certain aspects of “commercial secrets” and innovative developments, and all of them constitute the intellectual property of an enterprise. In addition, any cooperation with any partner presupposes the possibility of emergence and organizational problems that consist in the need to coordinate management decisions with a new partner, to synchronize successfully established internal business processes and development plans. As a result, a compromise decision can lead to a delay in decision-making, as well as to reduce efficiency and opportunities for further strategic development. Cooperation can often lead to problems with antimonopoly legislation during business enlargement and the formation of market instruments of monopoly competition. Nevertheless, joint solutions are, as a rule, a source of innovative development, which is formed by the potential of cooperation. The partners’ goals, resources, strategy opportunities are different,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_123

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and the success of cooperation lies in the choice of such an alternative innovative strategy that most effectively synthesizes the individualism of each participant in achieving a common goal.

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Materials and Methods

The theory of evolutionary economics is considered a fundamental source of scientific research on the development of innovative cooperation. The objects of research and analysis of modern evolutionary theory are complex nonlinear economic systems and individual market units. The systemicsynergetic approach to innovation is the main approach in the analysis. Kuznets, developing the Schumpeterian understanding of innovation, proposed a new term “epoch-making innovations” (Schumpeter, 1939). He justified it by the fact that for the implementation of innovations, which was understood as new technologies, appropriate social dynamics is necessary, i.e., ideological, institutional, and other changes (Kuznets, 1979). Kuznets also noted that the industrial revolution (the use of steam engines) would be impossible without corporations and banks; and the development of the securities market contributed to the strengthening of the railway industry (Kuznets, 1979; Linton, 2009). According to evolutionary theory, the strategic choice of the path of technological development is made by companies based on innovative combinations of technologies and knowledge (Nieto & Santamaria, 2007). Thus, understanding and scientific explanation of the need to establish intercompany cooperative ties for realizing the potential of innovation were formed. The advantages of intercompany cooperation for achieving the goals of the participants were justified as follows: • Intercompany cooperation makes it possible to optimize costs, to obtain economies of scale and specialization (theory of sectoral markets) (Eccles, 1981; Tapscott & Williams, 2011); • Following the theory of resource dependence (Aldrich, 1979; Jacobs, 1974; Pfeffer & Salancik, 1978), an organization as an open system, which interacts with market participants to obtain resources, becomes dependent on these and other market players. This dependence prompts the organization to cooperate for collective survival, growth or sustainability, and this is also more important than the success of a separate competitive unit; • The positive effect of learning behaviour: companies adopt the skills and experience of their partners, which in the long term generates higher income (evolutionary

theory of the firm; behavioural theory) (Moore et al., 1982; Simon, 1956, 1987). The key advantage is the coordination of the innovation process through training and mechanisms for the coordination of innovative interactions here; • Optimization of the forms of innovative interaction due to the complication of economic ties (the theory of the development of innovative cooperation, the concept of a network alliance of property subjects) (Freeman, 1979; Knoke, 1990; Management of Innovative Development of Socio-economic systems, 2019). The latest development of the theory and practice of intercompany cooperation in the context of a global pandemic and digital transformation is largely aimed at strengthening the sustainability of members of cooperative associations based on new knowledge, the potential of digital technologies, and at implementing innovative cooperation strategies. The conceptual basis of this work consists of research works of such scientists as Bashirzade et al. (2019), Teece (1980).

3

Results

An innovative economy presupposes the dynamics of interactions between participants in innovative activities, the birth of new models of unification of subjects of ownership, which are based on deep integration processes. The traditional models of innovative cooperation can be considered the models that are shown in Fig. 1. According to the monitoring of the innovation activity of the subjects of the innovation process which was implemented within the framework of the HSE program of fundamental research, it’s possible to judge the priority areas of cooperation in the implementation of innovative activities (Cooperative Strategies in the Innovation Activity of Enterprises, 2016). The data is based on the respondents’ answers to the question: “Whom does your company cooperate in the implementation of innovations with?”. The research results demonstrated that 98.5% of Russian innovative-active manufacturing enterprises, like in other countries, cooperate with partners to create, commercialize, and use innovations. At the same time, the priority model of cooperation in the area of innovation is cooperation with consumers (78%) and suppliers (74.3%), as well as cooperation with scientific organizations (27.1%) and universities (22.2%). Thus, today, resource dependence and consumer orientation are the key benchmarks in building innovative cooperation strategies.

Innovative Corporate Strategies as Sources of Sustainable Development

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Autonomous innovation strategy model

Independent development and implementation of innovations without the participation of external forces and partners - an autonomous innovation strategy

Simple vertical innovation cooperation model

Innovative strategy as a result of the company's cooperation with suppliers and consumers

Horizontal innovation cooperation model

Innovative strategy as a result of cooperative interaction with adjacent enterprises and competitors

Institutional innovation cooperation model

Innovation strategy as a result of cooperative interaction with scientific organizations and universities, as sources of innovative knowledge

Network innovation cooperation model

Innovation strategy as a result of cooperative interaction with all participants: generators of scientific and technological ideas, suppliers, competitors and consumers

Fig. 1 Models of innovative cooperation. Source compiled by the authors based on Cooperative strategies in the innovation activity of enterprises (Cooperative Strategies in the Innovation Activity of Enterprises, 2016).

The objectivity of the current trends is predetermined by market dynamics, uncertainty in the external environment and high risks. In this regard, the potential for cooperative partnership is the key to sustainability and development. Cooperation is characterized by the property of stability, which is explained by the following conditions: 1. Consistency in time, i.e. dynamic stability of cooperative agreements. This condition presupposes the observance of the principle of optimality during the implementation of the strategy adopted by the group of partners. As a consequence, the likelihood of deviations from the previously chosen decision on cooperation (for example, exit or termination) is minimized. 2. Strategic sustainability. This condition can be considered fundamental in the process of deciding on cooperation with any partner, especially in the framework of innovative activities characterized by a high level of risk and uncertainty. And here it’s important to guarantee the stability of the result of cooperation for each participant in the strategic perspective, and the absence of any benefit in the event of termination of cooperation. 3. Protection against irrational behaviour, which consists in getting more benefits from cooperation, even in the case of implementing the worst-case scenario for implementing

an innovative strategy, than in non-cooperative behaviour (Petrosyan & Zenkevich, 2009). In the context of the innovative economy, digitalization and digital cooperation are becoming the source of the formation of new models and strategies for innovative cooperative development. The pandemic has spurred the use of digital technologies and digital communications in cooperative interactions, primarily with consumers and suppliers. The active spread of Internet technologies and their introduction into all spheres of life of a modern person and business has led to significant structural modifications of familiar systems and organizations. More and more traditional business strategies and patterns are being replaced by new, digital, web-based models. This economy, based on network collaboration and appropriate innovative cooperative strategies, is called wikinomics (Tapscott & Williams, 2011). For many analysts, wiki activity is expressed in the sense of collective intelligence. An illustrative example of the success of the wiki of cooperation can be considered the activities of the automobile concern BMW. The platform, created by the concern and open for cooperation, is a place for the cooperation of a large number of developers, researchers, and consumers. Such cooperation makes it possible to maximally take into account the needs of

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customers while developing new products of the concern, which has already given the expected results in the form of innovations and new technological developments. “All of these acts like a virtual conveyor belt that transports know-how and skills among the global pool of BMW employees to develop the speed of innovation and production” (Scott, 2007). The maximum effect of this cooperation strategy can be observed mainly in the area of information technology and software. Wikinomics is ambiguous. The researchers note that the potential for business growth is formed as a result of the implementation of the principles of mass collaboration, which is typical for wikinomics. They note that globalization, encompassing the activities of several industries and their openness of partnerships based on equality (peering), access, as well as free exchange of information are key factors for the success of entrepreneurship. But it should be agreed that excessive openness, freedom of access to information, predominantly of a confidential nature, can lead to violations of the rights of intellectual property owners, and, as a result, to the loss of market positions and a direct reduction in profits. In addition, network cooperation can lead to the development of monopolistic tendencies, which also harms competition and business. Hence, the potential of network cooperation is obvious, but it requires constant updating, taking into account the interests of its participants.

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Conclusion

The benefits received by partners from cooperation are determined, first of all, by its nature and the specifics of the industry; while the goals of partners consist in reducing costs, increasing income by saving resources, gaining price competitive advantages, gaining access to information about the market, using new digital technologies, introducing innovations, etc. In general, the advantages of civilized cooperation are based on innovations, they are also aimed at maximizing profits, as well as strengthening the stability and competitiveness of business, which is quite difficult to achieve in a crisis environment within the framework of autonomous development strategy. Thus, relying on new scientific directions, characterized by diversity, and the opening opportunities for the realization of group interests, it can be seen that the dynamics of innovative cooperation strategies is associated with the need to ensure sustainability in a changing external environment, global challenges, and emerging digital opportunities, taking into account the compatibility of the individualism of

economic entity with the existence of the interests of the whole group.

References Aldrich, H. E. (1979). Organizations and environments. Prentice Hall. Cooperative Strategies in the Innovation Activity of Enterprises. (2016). Monitoring of the innovative activity of the subjects of the innovation process, implemented within the framework of the High School of Economics Fundamental Research Program, 2014– 2015. https://issek.hse.ru/news/195422159.html. Accessed November 12, 2021. Eccles, R. (1981). The quasi firm in the construction industry. Journal of Economic Behaviour and Organization, 2, 335–357. Formation of a Competitive Russian economy: Problems and Digital Opportunities. (2019). In R. R. Bashirzade, E. G. Zhulina, I. V. Kuznetsova (Eds.), Limited liability company “Amirit”, 132. Freeman, L. C. (1979). Centrality in social networks; Conceptual clarification. Social Networks, 1, 215–239. Jacobs, D. (1974). Dependence and vulnerability: An exchange approach to the control of the organization. Administrative Science Quarterly, 19, 44–59. Knoke, D. (1990). Political networks: The structural perspective. N.Y. Kuznets, S. (1979). Growth, Population, and income distribution: Selected essays (1st ed.). Norton. Linton, J. D. (2009). De-babelizing the language of innovation. The International Journal of Technological Innovation, Entrepreneurship and Technology Management, 29, 729–737. Management of Innovative Development of Socio-economic Systems. (2019). In N. A. Voronina, E. G. Zhulina, & I. V. Kuznetsova (Eds.), Limited liability company “Amirit”, 138. Moore, D., Nelson, R., & Winter, S. G. (1982). An evolutionary theory of economic change. Harvard University Press. Nieto, M. J., & Santamaria, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27(6–7), 367–377. Petrosyan, L. A., & Zenkevich, N. A. (2009). Principles of sustainable cooperation. Management of Large Systems: Proceedings, 26(1), 100–120. Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations—A resource dependence perspective. Harper & Row. Schumpeter, J. A. (1939). Business cycles. A theoretical, historical and statistical analysis of the capitalist process. McGraw-Hill Book Company. Scott, P. (2007). The difference: How the power of diversity creates better groups (p. 117). Schools, and Society. Princeton University Press. Simon, H. (1956). Rational choice and the structure of the environment. Psychological Review, 63, 129–138. Simon, H. (1987). Satisficing. The new Palgrave: A dictionary of economics. In J. Eatwell, M. Millgate, & P. Newman (Eds). London, Palgrave, pp. 243–245. Tapscott, D., & Williams A. D. (2011). Wikinomics: How mass collaboration changes everything, translated from English (Vol. 459). Sberbank. Teece, D. J. (1980). Economies of scope and the scope of enterprise. Journal of Economic Behaviour and Organization, 1, 223–247.

Strategic Guidelines for the Development of Non-profit Corporate Structures in the Context of the Transformation of the Regional Information Space of the Russian Federation Ljudmila Yu. Alexandrova , Olga N. Gorodnova , Galina V. Kalinina , Olga F. Kireeva , and Alevtina Yu. Munshi Abstract

JEL Classification

Purpose: The research was carried out within the framework of scientific project No. 20-010-00529 “Co-evolution of the information society and the digital economy: fundamental opportunities, challenges and threats” supported by the RFBR. Methodology: The authors use methods of theoretical and empirical research, economic and system analysis, forecasting theory and decision-making theory, strategic planning. Findings: The article concludes that the strategy as an object of management cannot be static, taking into account the ongoing digital transformations. Originality: The article substantiates the relevance of the strategy of regional development, increase the security and stability of the functioning of the heterogeneous regional information space of the Russian Federation.

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Keywords

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Digital economy Digital transformation Information space Regional development Development strategy Corporate structure

L. Yu. Alexandrova (&) . G. V. Kalinina Cheboksary Institute, Moscow University of Humanities and Economics, Cheboksary, Russia e-mail: [email protected] O. N. Gorodnova Cheboksary Cooperative Institute, Russian University of Cooperation, Cheboksary, Russia O. F. Kireeva Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia e-mail: [email protected]

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M39

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P42

Introduction

One of the global trends determining the vector of development of the Russian Federationis the digitalization of the economy. The substantial basis for strategizing the development of its regions based on the principles of digital transformation was laid by the “Strategy for the Development of the Information Society in the Russian Federation for 2017–2030” (2017) and the Federal Program “Digital Economy of the Russian Federation” (2017, 2018, 2019). Its development is possible through several mechanisms: – overcoming the digital divide by creating an ICT infrastructure to ensure high-speed data transmission accessible to the population; – increasing the information connectivity of the territory due to the widespread use of satellite communication systems in remote and inaccessible territories and ensuring the availability of communication services, including services providing high-speed data transmission for the population of such areas; – development of a network of large data storage and processing centers (data centers) in territories with a significant Surplus electric power, availability of the necessary bandwidth of information and communication infrastructure, special climatic conditions and promotion of export of data processing and storage services, etc. (Decree of the Government of the Russian Federation, 2019, pp. 14–15).

A. Yu. Munshi Russian Customs Academy, Lyubertsy, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_124

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Methodology

The processes of formation and improvement of non-profit corporate entities and regional information space are of great interest for scientific and practical research. When making the forecast, we use: – firstly, the method of budget planning for the development of the region; – secondly, system analysis, comparative analysis, economic analysis, forecasting theory, decision theory, strategic planning.

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Results

A non-profit corporate structure (consumer cooperative, public organization, associations and unions, etc.) is an integral part of a socially oriented market economy. The unified social mission ensures its functioning and development (Alexandrova et al., 2021). The theoretical and empirical analysis has shown that in the modern conditions, consumer cooperation, being a non-profit corporate structure, does not take into account new industrial, technological, consumer trends, does not adapt quickly and promptly (in real time) to dynamic changes in environmental factors, including technical and technological ones. Unfortunately, the introduction of new technologies is not comprehensive, and their transformative potential is not fully used. This is compounded by insufficient attention to the consumer and his changing needs. Strategic guidelines and management decisions based on systematic marketing activities are needed (Drok, 2016). Thus, the necessary strategic vectors for the development of non-profit corporate structures are the integrated use of systemic, integration and adaptation approaches to the development of corporate structure strategies. Taking into account the ongoing digital changes and the heterogeneity of the regional digital space, the strategy as an object of management cannot be static. It has its own life cycle: development, implementation, monitoring and adjustment.

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Discussion

In the works of Vakhitov (2017), Kevbrina and Plekhanova (2019), Litvinova and Fedorova (2017), Kevbrina and Plekhanova (2019) and Litvinova and Fedorova (2017), methods of improving economic management systems of consumer cooperation are disclosed. The systematic digital transformation of the economy is reflected in the specifics of the development of strategic

guidelines and components of the strategy, as well as the tools for their implementation. The need to activate their application is dictated by the global capabilities of digital platforms to unite all business partnership participants, including consumers, in the digital field. Strategic guidelines for the development of non-profit corporate structures as a model of behavior that ensures their development and achievement of strategic competitive advantages are: – informatization of strategic management of corporate structures (information support of strategic management). It involves the development of internal company policy and sound management decisions based on high-quality (relevant, consistent, reliable, timely) information; – strengthening of the internal mechanism of adaptation of structures to the ongoing changes in the functioning environment (including digital changes); The main task of information marketing can be supplemented with: analysis of the information market and assessment of market demand; formation of an integrated system for promoting information products/services to the market; generation of new proposals, as well as the introduction of innovations that increase the value of an information product/service in the eyes of real and potential consumers; targeted impact on the information market (Alexandrova, 2021, p. 247). The potential of information marketing as an integral part of the competitive potential of the enterprise is high, the possibilities of information support for the tasks being solved are enormous (Decree of the Government of the Russian Federation, 2019). This requires strategic guidelines and sound management decisions based on systematic marketing activities.

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Conclusion

Corporate structures should be synchronized with the objectives of the digital strategy of the region and national priorities. This means that needs and demands come “from below”, from the subjects, and national and regional goals and recommendations for their achievement come “from above”, from the federal and regional levels (Potapova et al., 2021, p. 30). The use of systematic, adaptive and marketing approaches of non-profit corporate structures ensures their sustainable, efficient and rapid development, which meets modern requirements and trends of the digital economy. An operational approach to adapting to changing markets involves taking into account strategic contours developed with the help of information marketing and management tools.

Strategic Guidelines for the Development of Non-profit …

Together they form the basis of a digital strategy that provides situational awareness, that is, a global vision of the path and the general direction of development, the “route of movement” of the corporate structure and the region as a whole (Gavrilova et al., 2021). The system of their interactions in combination with network effects leads to a multiple increase in socio-economic efficiency. This transformational-digital logic requires a serious rethinking of system, adaptation and marketing approaches to the management of non-profit corporate structures. It is important to take into account not only transformational projects in the development of strategic guidelines for corporate structures, but also projects: – in “digit” (informatization); – for “digit” (infrastructure); – on the periphery of the “digit” (education and training, personnel management). With digital transformation as a complex process, individual elements of the whole (organizations, industries) must change synchronously and in the same direction, despite the different level of digital maturity (the regional IT business is greatly reduced in favor of federal companies (Kalinina et al., 2021, p. 41).

Acknowledgements The research was carried out with the financial support of the RFBR within the framework of the RFBR research project “Co-evolution of the information society and the digital economy: fundamental opportunities, challenges and threats”, project № 20-010-00529.

References Alexandrova, L. Yu. (2021). The potential of information marketing in the digital economy. In Proceedings of the III International Scientific and Practical Conference “The Social Reality of Virtual Space” (pp. 244–249), Irkutsk, September 20, 2021. IGU Publishing House. Alexandrova, L. Y., Kireeva, O. F., Timofeev, S. V., Munshi, A. Y., & Shikanova, A. N. (2021). On the issue of innovative development of the distribution center in the system of consumer cooperation in the

653 region. In Studies in Systems, Decision and Control (vol. 316, pp. 73–80). Springer Nature Switzerland. https://doi.org/10.1007/ 978-3-030-57831-2_8 Decree of the Government of the Russian Federation dated July 28, 2017, No. 1632-R “Digital Economy of the Russian Federation”. http://static.government.ru/media/files/9gFM4FHj4PsB79I5v7yLVu Pgu4bvR7M0.pdf. Data accessed: September 22, 2021. Decree of the Government of the Russian Federation No. 207 dated February 13, 2019 “On the Approval of the Spatial Development Strategy of the Russian Federation for the Period up to 2025. https:// www.garant.ru/products/ipo/prime/doc/72074066/. Data accessed: October 02, 2021. Decree of the President of the Russian Federation dated May 09, 2017, No. 203 “On the Strategy for the development of the Information Society in the Russian Federation for 2017–2030”. http://www. consultant.ru/document/cons_doc_LAW_216363/. Data accessed: September 18, 2021. Drok, P. V. (2016). Information marketing in the context of information technology development. Economic Bulletin of the University. Collection of Scientific Papers of Scientists and Postgraduates, 31 (1), 46–50. Gavrilova, M. V., Portnov, M. S., Rechnov, A. V., Philippov, V. P., & Egorova, G. N. (2021). The use of neural networks in predicting the economic performance of cooperative organizations. Studies in Systems, Decision and Control, 316, 511–519. Ivashchenko, N. P., Pospelova, T. V., & Engovatova, A. A. (2015). University innovation as a key part of a territorial clusters. MIR (Modernization. Innovation. Research), 6(22), 32–40. Kalinina, G. V., Danilov, I. P., & Krasnov, A. G. (2021). Assessment of the main characteristics of the information society in the context of the development of its potential at the regional level of the Russian Federation in the conditions of digitalization of the economy. Bulletin of the MGEU, 1, 36–51. Kevbrina, O. B., & Plekhanova, E. A. (2019). On the issue of the development of consumer cooperation system in Russia. Bulletin of the Russian University of Cooperation, 1, 52–56. Litvinova, O. V., & Fedorova, L. P. (2017). Institutional aspects of economic security of the cooperative sector. Bulletin of the Russian University of Cooperation, 4, 42–46. Potapova, E. G., Poteeva, P. M., & Shklyaruk, M. S. (2021). Digital strategy transformations: To write in order to execute. RANEPA. Presidential Executive Order No. 204 dated May 7, 2018 “On National Goals and Strategic Objectives of the Russian Federation Through to 2024”. https://base.garant.ru/71937200/. Data accessed: September 22, 2021. Vakhitov, K. I. (2017). The cooperative sector of the economy. Fundamental and Applied Research of the Cooperative Sector of the Economy, 5, 35–42.

Standard for the Development of Competition in the Subjects of the Russian Federation as a Tool for the Development of Entrepreneurship in Regional Commodity Markets Sergey A. Katonin , Maria Sh. Machabeli , Tatyana V. Rudakova , Vladimir B. Larionov , and Elena V. Suvorova Abstract

1

The article analyzes the practice of applying the Competition Development Standard in the subjects of the Russian Federation. Attention is focused on the relationship between the implementation of this document and the development of a competitive environment at the regional level. The authors conclude that there is a need for a reasonable balance in planning settings and reporting indicators, as well as overcoming key economic barriers that impede the development of a competitive environment in the commodity markets of the regions in the conclusion. Keywords

.

.. .

.. .

Competition Competitive environment Competition development standard Goods Services Small and medium-sized enterprises Product markets Economic barriers JEL Classification

E22

. . . . . L26

L51

R10

R11

R12

S. A. Katonin (&) . M. Sh. Machabeli . T. V. Rudakova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] M. Sh. Machabeli e-mail: [email protected] V. B. Larionov Institute of International Economic Relations, Moscow, Russia E. V. Suvorova National Research University “Moscow Power Engineering Institute”, Moscow, Russia e-mail: [email protected]

Introduction

One of the obstacles to the development of the regional sector of the economy in Russia is the lack of a “healthy” competitive environment and low competition in the markets of commodity production and services. The competitive environment in Russia could not develop evolutionarily as in many economically developed countries due to historical peculiarities. Competition has its own specifics and requires the participation of state structures in this process in the post-Soviet space, on the collapse of the administrative command system. This is also typical for the Russian Federation, especially since the initial accumulation of capital among large business leaders took place in the turbulent 1990s, and the competition at that time took on forms that were not very similar to civilized ones. Privatization efforts have led to the fact that the “juiciest” pieces of state property fell into the hands of people from the Soviet elite, and, as a result, the political elite transformed into the business elite, setting high barriers to entry for entrepreneurs “from the people”. In the prosperous 2000s, with dizzying hydrocarbon prices, such a situation did not affect GDP growth, but more than one crisis has passed since then, and the indicators of the Russian economy have been declining since 2014. The state has been actively involved in the process of stabilizing economic indicators, therefore, in recent years, the term “State capitalism” has been increasingly heard in the press. The report of the Federal Monopoly Service published in 2019 refers to a trend towards tightening state control over the economy through the consolidation of state economic structures: “The state assumes an increasing volume of organizational and economic functions, intervenes in the reproduction process at the macroeconomic level, trying to regulate the entire economic system of the country as a whole in the short and long term” (Federal Antimonopoly Service of Russia, 2018).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_125

655

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S. A. Katonin et al.

A significant state share in the economy violates parity principles in the relationship between private business and the state. State-owned companies have a large administrative resource, and private companies cannot surpass their lobbying power. Of course, in recent years, there has been a downward trend in the public sector in some segments of the economy (healthcare, sports, wholesale and retail trade, etc.), but at the same time, according to many experts, the public sector occupied from 40 to 50% in 2018–2019. In 2019, in a report at the Russia Calling Investment Forum, the head of the Accounts Chamber Alexei Kudrin said that the share of the state in the economy over the past 10 years has grown by 10% and reached 47–48% (Kudrin, 2021). At the same time, the share of the public sector, for example, in the US economy is no more than 28%. However, in the last 5–6 years, in the protracted crisis, low hydrocarbon prices and the sanctions burden, the Russian Government realized that the degeneration of competition could lead to negative consequences for the country's domestic market. An attempt was made to change the situation in 2017 with the introduction of the National Plan for the Development of Competition until 2020. The document was approved by the decree of the President V. V. Putin and contained measures for 2018–2020 to develop competition in the national market (June 21, 2017, the plan has been updated with a validity period until 2025). In addition, the seriousness of the intention to improve the competitive environment was announced by the Order dated April 17, 2019, No. 768-r. The Government of the Russian Federation approved the “Standard for the development of competition in the subjects of the Russian Federation” (hereinafter—the Standard) by this Order. Paraphrasing the Order No. 768-r, the Standard is needed as a key tool for implementing a systemic policy for the development of competition in the regions.

2

Methodology

The standard, the introduction of which guarantees the formation of a “healthy” competitive environment at the regional level, is, in fact, a universal recipe for local authorities to develop and implement effective mechanisms for the development of competition. It should be mentioned that the proposed initiatives for the development of competition, coupled with the requirements of the Standard, are aimed, among other things, at assessing the effectiveness of not only regional leaders, but also regional executive authorities. However, the problem of

choosing tools for assessing the effectiveness of regional authorities in the development of the competitive environment of the regions is urgent. Let us illustrate the complexity of assessing the results of the work of regional authorities in the development of a competitive environment. In 2015, an attempt was already made to introduce the Standard (Order of the Government of the Russian Federation dated September 5, 2015, No. 1738-r). The study of the degree of support for the development of a competitive environment was carried out in the regions in 2015–2016. This work was carried out by the Government Analytical Center in accordance with the Order of the Government of the Russian Federation dated April 10, 2014, No. 570-r. The authority to assess the promotion of competition in the regions was transferred to the Ministry of Economic Development of Russia in 2019, and the results of the study were supported by the corresponding report. The document contains detailed information indicating the ratings of the regions, characterizing the level of assistance to competitive development as of 2018. To analyze the data of the report, it is enough to present the leaders who took the first ten places. The estimates given in Table 1 are quite convincing about the effectiveness of the decisions taken by the regional authorities on the issues specified in the 2015 Standard. On average, in 2018, the implementation of measures to promote competition was 72.96%, although in 2017 the figure was 68.79% (in 2016 it was even less—63.23%). Decent indicators, the dynamics are definitely positive, and if the COVID-19 pandemic, which put small and medium-sized businesses under a serious economic blow, did not suddenly appear, then the implementation of the Standard would have been completed in full by 2025 with an annual increase of 3–4%, and our Western partners would have envied our level of development of a competitive environment. Unfortunately, such ratings cannot do without the notorious “but” without the “Covid” economic “fever”. In our opinion, here is the situation. The rating calculation for the regions was carried out in accordance with the Methodology developed by the Ministry of Economic Development of Russia in May 2015. The methodology was based on a system of resulting indicators and indicators of overcoming bureaucratic barriers by entrepreneurs (current and potential), and the final indicator for each individual region was calculated as the sum of indicators “Implementation of the elements of the Standard” and indicators “Target values” both in percentage and with equal weight of each indicator. Table 1 shows that the leading positions are occupied by the Omsk, Voronezh and Moscow regions. Based on the

Standard for the Development of Competition in the Subjects of the Russian Federation …

657

Table 1 Rating of regions of the Russian Federation according to the degree of assistance to the development of competition in 2018 Place

Subject

Implementation of the elements of the standard

Targets

1

Omsk Region

Rating

Value (units)

Value (%)

Rating

1

62.4

97.81

2 3

Voronezh Region

6

58.05

Moscow Region

3

60.2

4

Republic of Bashkortostan

10–11

5

Republic of Mordovia

15

6

Moscow

7

Udmurt Republic

8 9 10

Result Value (%)

Rating

Value (%)

1

105.89

" 1 (4)

101.85

90.99

3

103.13

" 2 (34)

97.06

94.36

13

95.2

#3 (2)

94.78

56.3

88.24

5

100.16

" 4 (7)

94.2

55.65

87.23

7

97.74

" 5 (12)

92.48

14

55.7

87.3

9

96.89

#6 (3)

92.09

5

58.1

91.07

14

92.89

#7 (5)

91.98

Belgorod Region

4

58.65

91.93

15

91.51

" 8 (9)

91.72

Nizhny Novgorod Region

21

52.35

82.05

4

" 9 (45)

91.48

Krasnodar Region

18

54.2

84.95

6

" 10 (15)

91.41

100.9 97.86

Source Compiled by the authors based on the report of the Ministry of Economic Development (2018)

data, an optimistic conclusion, that the development of a competitive environment and competition in regional markets is moving in the right direction, can be made. But if we turn to other factors reflecting the state of competition in the regions and the effectiveness of the indicators presented in the Methodology of the Ministry of Economic Development of May 2015, we can question it. It is quite appropriate to use the indicator of the investment attractiveness of the region as a factor in the development of the competitive environment, because this indicator reflects the feasibility of investment not only in existing companies and enterprises of the region, but also in the creation of new competitive business units. In the bulletin of the rating of investment attractiveness of regions based on the results of the same 2018 developed by the National Rating Agency, the corresponding rating with an indication of the categories of investment attractiveness is given. The first ten of the rating is as in Table 2. By the way, the Voronezh region took the 14th place, albeit with a high level of attractiveness, but the Omsk Table 2 Investment attractiveness of the regions at the end of 2018

region was only on the 51st place in this list with a fairly average level of investment attractiveness.

3

Results

An interesting picture is observed: the 2015 Standard was successfully implemented and the attractiveness of the Omsk region as a subject with high levels of competition leaves no doubt. At the same time, investors, and they are the main drivers of competition, continued to invest resources in more attractive regions like Moscow and St. Petersburg, and they will continue to do this (only the rating indicators for the Moscow region are practically synchronized). Without minimizing the dignity of the administration of the Omsk and Voronezh regions, nevertheless, the question remains: how correct were the selected instruments in the Methodology for assessing the development of competition in the regions of the 2015 Standard?

Region

Rating 2018

Result

Moscow

IC1—investment attractiveness of the first level

Confirmed

St. Petersburg

IC1—investment attractiveness of the first level

Confirmed

Republic of Tatarstan

IC2—investment attractiveness of the second level

Confirmed

Moscow Region

IC2—investment attractiveness of the second level

Confirmed

Yamal-Nenets Autonomous Area

IC2—investment attractiveness of the second level

Confirmed

Sakhalin Region

IC2—investment attractiveness of the second level

Confirmed

Leningrad Region

IC2—investment attractiveness of the second level

Confirmed

Belgorod Region

IC2—investment attractiveness of the second level

Confirmed

Tyumen Region

IC2—investment attractiveness of the second level

Increased

Source Compiled by the authors based on the rating of investment attractiveness of Russian regions (2018)

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4

S. A. Katonin et al.

Discussion

Now let us talk about the new Standard from 04.17.2019. Perhaps it contains the same “shortcomings” that can distort the true situation in the commodity markets considered in accordance with the Standard. According to the authors, it is worth paying close attention to the article “Assessment of the competitive environment in regional markets” (Kokovikhin et al., 2018), in which the researchers of the Ural State University of Economics proposed a methodology for a comprehensive assessment of the formation of the competitive environment. The methodology is based on an assessment of three directions: • Assessment of the concentration level (according to the Herfindahl—Hirschman index); • Assessment of the market power of participants (in relation to the rate of growth of prices and costs); • Assessment of the level of perception of competition (by market participants survey). The methodology was tested in the Sverdlovsk region in 2015–2016, and the research results obtained (with some amendments for local conditions) may well be used in other subjects of the Russian Federation when analyzing competition and developing antimonopoly legislation measures at all levels of government. The desire of the Ministry of Economic Development and Trade to improve the lives of entrepreneurs is commendable, but as the old Latin expression says: “Audiatur et altera pars” (“Let the other side be heard as well”). The entrepreneurs themselves act as the “other” side, and they deserve attention in order to listen to their attitude to such initiatives of the federal authorities. An interesting survey among Russian entrepreneurs was conducted in 2019 by the Analytical Center to assess the competition in the national market for goods and services according to the opinion of the entrepreneurs themselves (Assessment of the State of the Competitive Environment in Russia, 2019). About 1300 entrepreneurs of various levels from all constituent entities of the Russian Federation took part in the survey. The key fact was that the vast majority of entrepreneurs surveyed were small business owners. The most common representative of the sample: a business owner (73%), the business is more than five years old (86%), an orientation towards regional and municipal markets (59%) and the Russian market (36%). Most of the survey participants run a diversified business (63%). The service sector is represented by 33% of the respondents. It is important to note that the analysis of the opinions of entrepreneurs about the current state of competition was

carried out by the results of the survey. It showed an increase in the number of respondents who believe that the level of competition in the market has reached its maximum level for the first time since 2015. According to the data obtained, the researchers concluded that there is moderate competition in the Russian market, because 51% of those surveyed assessed the intensity of competition as quite high or very high. It is curious that the most developed competitive environment was noted in the spheres of culture, sports business, organization of leisure and entertainment (78%), and the least one—in the fuel and energy complex (60%). Entrepreneurs named the high tax burden as the defining barriers to development (63%); it should be emphasized that the figures for 2019 are higher than the same indicator for 2018, and this enhances its relevance for analyzing competition today. It is important that the business environment assesses the steps of the state rather as negative: about 42% of regional businessmen noted that the authorities interfere with business with ill-conceived initiatives (and this parameter has also grown in comparison with the indicators of previous years). Bureaucratization and a high corruption component are most often meant under the word “interfere”. It will not be superfluous to recall that the Federal Antimonopoly Service and a number of laws are on guard for the interests of entrepreneurs: • Federal Law “On Protection of Competition” No. 135-FZ dated July 26, 2006; • Federal Law “On the Protection of the rights of legal entities and individual entrepreneurs in the exercise of state control (supervision) and municipal control”; No. 294-FZ dated December 26, 2008; • Federal Law “On the development of small and medium-sized businesses in the Russian Federation” No. 209-FZ dated on July. 24, 2007. Certainly, these legislative “shields” seem to be quite enough for a Russian entrepreneur to feel in a comfortable business environment. Nevertheless, in the Russian realities of “manual management” of the economy, this is objectively insufficient, and the implementation of the Standard in the regions, annual monitoring and reports on the development of competition in product markets contribute to a more precise identification of problematic issues in the perimeter of the implementation of competition policy at the regional level. This indisputably indicates the readiness of the regional authorities to help entrepreneurs enter new product markets. For example, the “Report on the state and development of competition in the commodity markets of the Moscow

Standard for the Development of Competition in the Subjects of the Russian Federation …

region at the end of 2020” prepared by the Competition Policy Committee of the Moscow region contains impressive results of the work of the regional authorities to improve competition in the commodity markets of the region despite the difficult business situation associated with COVID-19. It is enough to cite some of the reported data from the Report as confirmation: 1. The number of violations of antimonopoly legislation by local governments decreased by 3.4 times compared to 2017; 2. The share of purchases among small and medium-sized businesses in the field of procurement of goods, works, services to meet state and municipal needs amounted to 39.7% (with a plan of 30%); 3. The number of ineffective organizations of municipal and state ownership in the Moscow region decreased in 2020 to the level of 2019 by 737 units. According to the above, the conclusion that the introduction of the Standard, as an element of the state's guardianship of business, gives a quite tangible effect, suggests itself, but nevertheless it is worth emphasizing the redundancy of the authorized bodies in charge of this process and reporting indicators that overload the executive bodies of local government already overwhelmed with work. A reasonable balance is needed when choosing targets and benchmarks.

5

Conclusion

In conclusion, it should be noted that the economic obstacles hindering the development of competition in the regions remain unchanged: • • • •

high taxes; instability of Russian legislation; persistent corruption; high lending rates.

Overcoming the above constraining factors will increase the business activity of society and, as a result, will contribute to the development of a competitive environment in regional commodity markets with a minimum share of

659

government interference in the process of forming an effective competitive environment, which is most consistent with the principles of a market economy.

References Assessment of the State of the Competitive Environment in Russia. (2019). Official website of the Roscongress Foundation. https:// roscongress.org/materials/otsenka-sostoyaniya-konkurentnoysredy-v-rossii-2019. Data accessed: August 18, 2021. Avdasheva, S. B., Alimova, T. A., Lukovnikova, E. V., & Popovskaya, E. V. (2005). The procedure for analyzing and assessing the state of the competitive environment in the commodity markets. Possibilities of using statistical data. Questions of Statistics, 5, 3–8. Balalova, E. I., Baskakova, O. V., Machabeli, M. Sh., & Rudakov T. V. (2021). Economy of small and medium business: Textbook for bachelors (293 p). Publishing and Trade Corporation “Dashkov and Co”. Karelina, M. G. (2015). Empirical analysis of the integration activity of business structures in the regions of Russia. Economy of the Region, 4(44), 54–68. https://doi.org/10.17059/2015-4-5 Kokovikhin, A. Y., Ogorodnikova, E. S., Williams, D., & Plakhin, A. E. (2018). Comprehensive assessment of the competitive environment of socially significant and priority markets. Economy of the Region, 14(1), 79–94. Kokovikhin, A. Y., Ogorodnikova, E. S., Williams, D., & Plakhin, A. E. (2017). Institutional environment factors in the entrepreneur’s assessment of the investment climate of a municipal formation. Regional Economy, 13(1), 80–92. https://doi.org/10.17059/2017-1-8 Kudrin, A. (2021). Kudrin announced the growth of the state’s share in the economy to 50%. Ria News. https://ria.ru/20191120/ 1561150552.html. Data accessed: August 16, 2021. On the results of the implementation of the Competition Development Standard in the constituent entities of the Russian Federation in 2018. Official Website of the Ministry of Economic Development of the Russian Federation. https://www.economy.gov.ru/material/file/ 124cb92d7463b019e31da4569b0f6e3d/Doklad_za_2018.pdf. Data accessed: August 17, 2021. Petrova, M. M., Brezgina, E. O., & Zhurba, V. V. (2016). Implementation of the Standard for the development of competition in the subjects of the Russian Federation as a key aspect of the socio-economic development of the territory. Economy, Entrepreneurship and Law, 6(1), 9–24. https://doi.org/10.18334/ epp.6.1.35181 Rating of investment attractiveness of Russian regions at the end of 2018. Official Website of the National Rating Agency. https://www. ra-national.ru/sites/default/files/analitic_article/IPR-6-06112018.pdf . Data accessed: August 18, 2021. Report on the state of competition in the Russian Federation for 2018. Official site of the Federal Antimonopoly Service of Russia. https:// fas.gov.ru/documents/685806. Data accessed: August 17, 2021.

Innovations in Corporate Relations and Their Contribution to the Development of Cooperation Lubov B. Sitdikova

and Svetlana J. Starodumova

Abstract

Keywords

Purpose: The purpose of the study is to consider two objects of intellectual property of corporations: a trademark and a computer program, due to the special specifics of their use in business in general and through the Internet in particular. It is proposed to formulate specific changes to Russian legislation that will help eliminate the identified regulatory gaps. Design/methodology/ approach: The authors identify insufficient legal regulation of innovative digital corporate relations based on the materials of judicial practice and comments on the current Russian norms. The general tendencies of backwardness in the legal regulation of innovative corporate relations based on international experience were identified. Findings: It has been established that the fact of fame, which is used by unscrupulous entrepreneurs in order to legitimize their own trademark, is important for entrepreneurial activity. A mechanism for the protection of a trademark by introducing such a legal category as “fame” into civil legislation has been proposed. The necessity of concretizing and expanding the norms of regulating computers was revealed, due to the legislative contradiction regarding malicious programs. Originality/value: The study of various objects of intellectual property of corporations made it possible to focus on two selected objects that are actively used in entrepreneurial activity through the Internet. The results obtained take into account the needs of the Russian market for goods and services, this is especially important for the digital sovereignty of Russia as a whole and the stability of the participation of corporate legal entities in entrepreneurial activities.

Digital sovereignty Sustainable development of cooperation Corporations Internet network Internet pseudonym Nickname Trademark Fame

L. B. Sitdikova (&) Moscow City University, Moscow, Russia e-mail: [email protected]

.. . . .

. .

JEL Classification

K150

1

.

K240

.

O340

Introduction

The “struggle” for digital sovereignty was designated in 2021 at the St. Petersburg International Economic Forum (SPIEF-21) as a key area of countering the influence of Western private corporations working in the Internet sphere on the geopolitical situation in Russia in general and the sustainable development of cooperation in particular. Difficulties in the legal regulation of relations in the digital environment also lie in the need to define concepts and the need to develop a special categorical apparatus, to highlight the essential features of an object, phenomenon or process that have legal significance when it comes to technically very complex systems, due to their nature, generating objects of corporate rights on the Internet. It should be noted that the issues of regulating the Internet by means of the lawmaking activity of the state, which lags behind the development of the Internet itself (Information Society, 2000) due to the rapidly growing capabilities of the Network (Tanimov & Kudashkin, 2010), are acquiring a controversial character. We support the position of the majority of authors and, in particular, A. N. Balashov, that today there is still insufficient elaboration of the legislative framework that regulates relations on the Internet (Balashov, 2016).

S. J. Starodumova Moscow University named after A.S. Griboyedov, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_126

661

662

L. B. Sitdikova and S. J. Starodumova

Within the framework of this work, it is proposed to consider certain objects of intellectual property of corporations.

2

Methodology

We compared the Russian and foreign experience of copyright protection on the Internet (Kubyshkin, 2016) in the study of the main problems and practice of the implementation of legal regulation of Internet relations in Russia (Balashov, 2016). Particular attention was paid to the comments on the current rules on trademarks formulated by the authors Gavrilov and Danilina (2004), and also Korchagin et al. (2003). More specifically, individual grounds for refusing to register a trademark by the state were analyzed by Gavrilov (2017). The work of E. I. Svishcheva, devoted to the consideration of topical issues of individualization of organizations, made it possible to identify the specifics of the popularity of a commercial designation (Svishcheva, 2020). The work of V. A. Korneev dedicated to the study of such a specific object of intellectual property as computer programs has been studied (Korneev, 2010). In this regard, the problems of copyright protection of malicious software were raised in the work of Yuzefovich and Pavlova (2014). We also continue to study the prospects for the development of the software industry market for the cooperative sector of the economy (Zhesterov et al., 2021), analyzing how innovative digital rights in corporate relations (Sitdikova & Starodumova, 2019) affect the development of cooperation in Russia. Thus, the materials studied made it possible to identify the practical problems of the implementation of intellectual property rights in corporate relations existing in Russia and to formulate specific proposals for improving Russian civil legislation.

3

Results

The positive contribution of innovations to the sustainable development of cooperation is often accompanied by an insufficient legal basis for regulating these relations on the Internet. In particular, such a concept as “fame”, which is fundamentally important for the successful development of business relations, is absent in civil legislation. The need to recognize a trademark as well-known in the prescribed manner in order to provide the full scope of legal protection is also indicated by the Federal Service for Intellectual Property in paragraph 7.3.4. of the Order of the Federal State Budgetary Institution Federal Institute of Industrial Property dated January 20, 2020 No. 12 “On approval of the

Guidelines for the implementation of administrative procedures and actions within the framework of the provision of public services for the state registration of a trademark, service mark, collective mark and the issuance of certificates for a trademark, service mark, collective mark, their duplicates”. According to E. P. Gavrilov, the category of fame is characterized by the possibility of negative or positive consequences for the reputation of the person in whose interests the trademark is registered (Gavrilov & Danilina, 2004). If a positive or negative effect is potentially possible, then the provisions of subparagraph 2 of paragraph 9 of Article 1483 of the Civil Code of the Russian Federation should be applied as a ground for refusing to register a trademark. Some authors believe that “fame” is inherent in objects that everyone knows about and knows about in wide social circles (Korchagin et al., 2003). The main factor in this position is the forcing of such objects in the media, encyclopedias, periodicals, etc. In this regard, the position of E. P. Gavrilov is more reasonable, because if we proceed only from the criterion of a person's popularity among the masses, on the Internet, many carriers of pseudonyms may lose legal protection (Gavrilov, 2017). According to E. I. Svishcheva, it is necessary to introduce a typification of the criteria for gaining fame in a certain territory and on the Internet in order to simplify the fact of proving fame and minimize the number of litigations between business entities (Svishcheva, 2020). It should also be noted that judicial practice considers situations of mixing of trademarks in the individualization of homogeneous goods of entrepreneurs who unfairly use the fame and reputation of previously registered trademarks, draws conclusions about the presence of fame, but establishes the absence of documentary evidence of such fame (based on an analysis of the definitions of the Supreme Court of the Russian Federation, the Supreme Arbitration Court of the Russian Federation and others in the period 2006–2019). Further, if we pay attention to the special specifics of the Internet space, we consider it important to focus on the right to a pseudonym, called a nickname on the Internet. According to the Large Legal Dictionary, a pseudonym is described as a fictitious, conditional name of the author of a work of science, literature or art (Dodonov et al., 2001). The practice of using nicknames in the vastness of the Internet space is both an established custom and a practically justified method in achieving anonymity. Many authors publish their works using pseudonyms, because the most common resources are partially anonymous. In this regard, there is a risk of losing the right to a nickname, due to its registration as a trademark by third parties, the procedure for which is regulated by subparagraph 2 of paragraph 9 of Article 1483 of the Civil Code of the Russian Federation.

Innovations in Corporate Relations and Their Contribution to the Development of Cooperation

Based on the established judicial practice and regulations of departments specializing in the registration of trademarks, we can talk about the absoluteness of the right to a trademark, as a result of which the authors cannot defend their right to a pseudonym through judicial protection in the existing realities of Russian legislation, except when the author will be able to prove the primacy of his nickname in relation to the trademark. One of these methods is the registration of a pseudonym through the international standard name identifier “ISNI”, which acts as a link between the international registries of copyright and related rights. The date of registration of the author on the Internet resource on which his works were posted may also be a less reasonable, but taken into account factor. Thus, the problem of the risk of losing the right to a nickname (Internet pseudonym) when carrying out entrepreneurial activity through its registration as a trademark by third parties and causing damage to reputation and property rights has been identified. We believe it is necessary to clarify the wording of subparagraph 2 of paragraph 9 of Article 1483 of the Civil Code of the Russian Federation in order to expand the list of legally significant circumstances that may become grounds for refusing to register a trademark. In particular, it is advisable to introduce such a legal category into civil law as “notoriety”, which has the following features that distinguish it from the everyday concept based on legally significant criteria by specifying: “… and may cause damage to honor, dignity, business reputation or commercial benefit”, stating subparagraph 2 of paragraph 9 of Article 1483 of the Civil Code of the Russian Federation as follows: “2) a name (Article 19), a pseudonym (paragraph 1 of Article 1265 and subparagraph 3 of paragraph 1 of Article 1315) or a designation derived from them, a portrait or facsimile of a trademark known in the Russian Federation by the filing date of the application and which may cause damage to honor, dignity, business the reputation or commercial benefit of a person, without the consent of that person or his heir;”. Next, let us single out computer programs as a fairly specific object of copyright, which is defined in the text of Article 1259 of the Civil Code of the Russian Federation as a set of data and commands intended for the operation of computers and other computer devices in order to obtain a certain result, including preparatory materials obtained during development computer programs and audiovisual displays generated by it. Firstly, this definition contains an indication of such an object created by the program as audiovisual displays, which do not have a legal definition. Secondly, this article also focuses on the identity of the methods of copyright protection for computer programs with the rights to works of literature, which, from our point of

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view, is not entirely correct. We believe that these two aspects need clarification. There is a discussion in the scientific community, the subject of which is the question of whether malicious programs can be objects of copyright and can be protected on an equal basis with other objects. According to the provisions of Article 1261 of the Civil Code of the Russian Federation, virus programs may be subject to copyright protection, but a number of colleagues do not agree with this position, because this type of program is potentially created to violate both private and public law and cannot be considered based solely on general definition given in the Civil Code of the Russian Federation. At the same time, it should be recognized that such programs, including those created outsides of Russia, are used to achieve a priority position in the market, to limit the digital sovereignty of Russian companies, in this regard, the fact of their legal recognition precisely for the purpose of protecting the rights of business entities cannot be ignored. An example of an existing legislative contradiction is the provisions of Article 273 of the Criminal Code of the Russian Federation, where a malicious program is a program that was deliberately created for the purpose of illegally blocking, modifying, destroying or copying various objects stored in cyberspace. At the same time, A. A. Pavlov and Zh. Yu. Yuzefovich indicate that the purpose of creating the program may not be malicious, although the properties of the program will meet the criteria established in Article 273 of the Criminal Code of the Russian Federation. In particular, the program can be created to improve the anti-virus program used by the organization and to test operating systems, to identify vulnerabilities in the networks of large companies, and so on. Thus, from the standpoint of Article 273 of the Criminal Code of the Russian Federation, malicious programs are necessary to ensure the cyber security of the activities of both entrepreneurs and authorities. In this regard, we believe that such programs lack one of the important signs of corpus delicti, which does not allow them to be classified as socially dangerous acts (Yuzefovich & Pavlova, 2014). V. A. Korneev discusses the purpose of creating a program and indicates that it is necessary to assess whether the goal of causing harm to another person (Article 10 of the Civil Code of the Russian Federation) is achieved when the program is classified as malicious, if not, then it is not malicious (Korneev, 2010). After analyzing the above positions, we can conclude that the resolution of the issue of attributing virus programs to copyright objects, although it lies in identifying the goals and intentions with which the program was created, but in order to protect the activities of organizations and institutions from their impact, they need legal regulation.

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Thus, the need to exclude phrases indicating the protection of computer programs as literary works from the text of Article 1261 of the Civil Code of the Russian Federation with the simultaneous replacement of the term “audiovisual displays” with the term “interface”, securing its definition by introducing an appropriate definition containing an identifying feature—a separately guarded part of the computer program was established. It is advisable to state the text of the article in the following form: “A computer program is a set of data and commands presented in an objective form, intended for the operation of computers and other computer devices in order to obtain a certain result, including preparatory materials obtained in the course of developing a computer program, and generated its interface and (or) other literary and artistic works”. Also, the issue of classifying programs as malicious in order to provide legal protection to those programs that do not aim to harm any person, but fall under the qualifications of Article 273 of the Criminal Code of the Russian Federation, also needs legal regulation.

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Conclusion

Due to the absence of special legislation in most states, Internet relations are governed by the norms of individual branches of law, although attempts to systematize them are being made, which is difficult for objective reasons of the complexity of such work, an insufficiently developed theoretical base. Positive trends are visible. Recently, consultations and negotiations on issues related to the emerging concept of digital sovereignty took place at the international level. The current situation will require, in our opinion, the creation of our own newest, created specifically for defensive purposes, intellectual property objects, improvement of legislation in the field of copyright regulation, the institution of their legal protection, taking into account modern realities and amendments to the Constitution of the Russian Federation on the priority of national legislation, which opens up a wide field for activity, primarily for legal theorists. Unfortunately, at the moment in Russia, important legal definitions remain unrevealed, in addition to the existence of contradictions and gaps in the legislation regarding the legal

regulation of the protection and protection of a pseudonym, which is sometimes used by unscrupulous organizations in order to enrich themselves by exceeding the limits of civil rights to a trademark.

References Balashov, A. N. (2016). Legal regulation of Internet relations: Main problems and implementation practice in Russia. Central Russian Bulletin of Social Sciences, 2, 113–118. Dodonov, V. N., Ermakov, V. D., Krylova, M. A., et al. (2001). A large legal dictionary (p. 623). Infra-M. Gavrilov, E. P. (2017). Commentary on paragraph 9 of Article 1483 of the Civil Code of the Russian Federation. Patents and Licenses, 8, 2–9. Gavrilov, E. P., & Danilina, E. A. (2004). Commentary on the law of the Russian Federation “on trademarks, service marks and appellations of origin of goods” (p. 320). Exam. Information Society. (2000). On the legal regulation of the use of the Internet in Russia. Discussion (Vol. 4, pp. 46–51). Information Society. Korchagin, A. D., Orlova, V. V., & Gorlenko, S. A. (2003). Commentary on the Law of the Russian Federation “on trademarks, service marks and appellations of origin of goods” (p. 393). FSIP. Korneev, V. A. (2010). Computer programs, databases and topology of integrated circuits as objects of intellectual rights: Dissertation of a candidate of legal sciences (p. 26). Lomonosov Moscow State University. Kubyshkin, A. I. (2016). Problems of copyright protection on the Internet: Russian and foreign experience. Scientific community of students of the XXI century. Social Sciences, 4, 67–71. Sitdikova, L. B., & Starodumova, S. J. (2019). Innovative digital rights in corporate relations. International Journal of Engineering and Advanced Technology, 8(6), 5176–5179. https://doi.org/10.35940/ ijrte.F9104/088619 Svishcheva, E. I. (2020). Commercial designation: Current issues of individualization. Arbitration Practice Bulletin, 2, 49–56. Tanimov, O. V., & Kudashkin, Ya. V. (2010). Prospects for legal relations on the Internet. Information Law, 4, 16–19. Yuzefovich, J. Y., & Pavlova, A. A. (2014). Copyright protection of malicious software. Bulletin of the Moscow University of the Ministry of Internal Affairs of Russia, 12, 106. Zhesterov, P. V., Volkova, M. A., Starodumova, S. Y., & Sitdikova, L. B. (2021). Prospects for the development of the software industry market for the cooperative sector of the economy. In: A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, O. V. Kaurova, & S. V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics. Studies in systems, decision and control (Vol. 316, pp. 487–494). Springer. https://doi.org/10.1007/ 978-3-030-57831-2_51.

Cooperative Strategy in Sociosystems Elena O. Kolokolova , Irina N. Mineeva , Elena N. Moiseeva , and Mikhail A. Panfilov

Abstract

1

Today, Russia is facing severe economic and political conditions, thus affecting the overall standard of living of the population. There are steady trends of social disunity, internal conflict is brewing. Therefore, there is now a need to reassess the importance of the cooperative strategy as an effective mechanism for the development of sociosystems. Cooperation can be defined as an interdisciplinary category, since it is able to describe many mechanisms and processes at various levels of cognition. In turn, the cooperative strategy is a universal model for building all levels of sociosystems, as it is based on interaction and cooperation. Even with a certain confrontation and opposition, struggle and conflict between the elements of social systems, one way or another, when a certain crisis moment comes, they tend to unite through cooperation. This suggests that cooperation should be considered as a means of self-organization and self-development of individual and social being. Keywords

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Cooperation Self-organization Interaction Cooperative

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Sociosystems

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JEL Classification

K29

. . Y80

Z13

E. O. Kolokolova (&) . I. N. Mineeva . E. N. Moiseeva . M. A. Panfilov Saransk Cooperative Institute (branch) of the Russian University of Cooperation, Saransk, Russia e-mail: [email protected] I. N. Mineeva e-mail: [email protected] E. N. Moiseeva e-mail: [email protected] M. A. Panfilov e-mail: mpanfi[email protected]

Introduction

The category of “cooperation” is one of the fundamental general scientific categories, since it affects a wide range of relations and phenomena. Cooperation is considered as a social phenomenon, described as the opposite of the category “conflict”, interpreted within the framework of collaboration and interaction, defined as a mass social force, classified as an organizational and legal form of economic activity, analyzed as a specific form of movement within the development of ideas of cooperation and the creation of cooperative associations, presented as social solidarity and as a way of organizing work, extrapolated in the context of social self-organization of self-referential and self-forming systems, used as part of the implementation of interpersonal interactions. Thus, the cooperative strategy has a decisive influence on the organization of the development of various structures of sociosystems. It is through the prism of cooperation that it is possible to reveal new aspects and understand the essence of social processes.

2

Methodology

The methodological basis of the research is reflection and heuristic traditions of analysis, which allow us to consider, understand and analyze cooperation as a phenomenon of organization of various levels of sociosystems. The use of a system-integration approach in the study of the material made it possible to analyze cooperation in the context of internal system integrity. The elements of the corporate strategy, their connection and conditionality were identified within the framework of a system-structural approach. The structural and functional approach allowed us to consider cooperation from the perspective of a phenomenon that affects all levels of sociosystems. Ethnomethodology was used in the study of the topic in order to determine the

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_127

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importance of a cooperative strategy in interpersonal interaction. The logical method and the method of system analysis made it possible to form an overall picture of complex processes of cooperation at various levels of sociosystems.

3

Results

It is unequivocally possible to assert that cooperation through various forms of manifestations of its essential qualities permeates all structures of society. The above suggests that it is cooperation that is a promising methodology that is able, showing all its inherent potential, to justify possible ways to solve social problems. Cooperation can act as an institutionalization of various social processes. This allows to conclude that cooperation should be interpreted as a means of self-organization and self-development of individual and social being. Cooperation is the subject of close attention of researchers at various levels of sociosystems. In the context of interpersonal interactions, the basics of cooperation are reflected in the concept of symbolic interactionism. In their research, representatives of various trends and schools of symbolic interactionism (C. Cooley, W. Thomas, H. Blumer, J. G. Mead) propose various mechanisms of interpersonal interaction, justifying the processes of cooperation in sociosystems from the perspective of their development and complication. Thus, sociosystems, from the standpoint of this scientific approach, are united by a common mechanism of interaction through the possibility of choosing a certain action in a specific situation with the desire for cooperation (Blumer, 2017; Cooley, 2000; Mead, 2009; Thomas, 1994). A. Schütz, H. Garfinkel, being representatives of the direction of ethnomethodology as a methodology for generalization of the theory of personality and action, argue that the perception of the world is possible only through the consciousness of man, and the model of behavior of individuals in the structure of society is manifested through their development (Garfinkel, 2007; Schütz, 2004). Analyzing the above-mentioned areas of research, it should be noted that symbolic interactionism interprets the existence and development of sociosystems as a set of cooperative effects. Cooperative effects formed within the framework of interpersonal interactions are formed based on the choice of means and meanings relative to a specific situation within a certain behavior model. However, it is ethnomethodology that allows us to determine the internal motives of an individual’s choice. Thus, at the level of interpersonal interaction, cooperation can be defined as a controlled action that is based on the choice and a subject’s motivation.

The communication theory (T. Parsons, I. Hoffman, V. P. Bransky) considers the phenomenon of social communication within the cooperative dimension, which must be represented as a special result of interactions of social subjects, the result of whose actions is the construction of sociosystems characterized by a set of norms, institutions that determine the integrity of such a society (Bransky, 2000; Hoffman, 2002; Parsons, 1994). Within the framework of the implementation of communicative processes, cooperation should be interpreted as an orderly interaction through structural and cognitive coordination. The interaction of hierarchical levels of various elements of sociosystems forms an idea of the unity of the internal and external content of social systems in accordance with the principle of cooperativeness, which determines the formation of such interaction. Due to the fact that human activity is a complex and multilevel system, certain stable symbols are mediated by communication processes through information exchange. Therefore, social communication is a process open to the world, while the principle of cooperativeness is implemented in the actions of systems through the definition of common goals and directions. Thus, social communication must be understood as the cooperation of sociosystems. In this connection, cooperation itself as the interaction of social systems creates meaning. Thus, cooperation itself acts as a form of social self-organization realized through communication, which makes it possible to define cooperation as an element of knowledge that allows sociosystems to adapt in the conditions of reflection of the world. This suggests that cooperation plays a significant role in the adaptation of sociosystems. The theory of frames (M. Minsky), which substantiates the mechanisms of interaction between the sociosystem and the outside world, determines that they are caused by the comparison of external information with the values of an object in our memory. Thus, a frame is a unit of knowledge representation formed in the past, which can be changed within the framework of the current situation. In this case, knowledge must be interpreted as a meaningful element of interpretation of information that is transmitted through language. Overcoming language barriers is an important stage in the self-organization of sociosystems. In this context, it is cooperative processes that are able to harmonize sociosystems. The understanding of meaning must be considered within the framework of the methodology of cooperative effects, which can provide a key to understanding society as a complex communicative and semantic system (Minsky, 1979). Today we are witnessing how the processes of co-evolution are becoming increasingly complex. These

Cooperative Strategy in Sociosystems

trends require the formation of a new concept that is more perfect and meets the requirements of reality, capable of reorganizing the cognitive process and transforming the relations of sociosystems within the framework of cooperativeness. The cooperative effects of sociosystems are conditioned by the principle of universal evolutionism. Therefore, it is the cooperative measurement of systems that determines the synergetic effects in complex self-organizing systems. Awareness of the importance of using cooperative mechanisms can become a defining strategy for the survival of society, as it has a special heuristic value that allows defining the future development of mankind. In this regard, it should be noted that the need to solve the problems of cooperative sociosystems is determined by the most basic goal: the need for the survival of mankind. At the same time, ensuring the coherence and cooperation of sociosystems can be realized only by the conscious will of a person. Cooperation can also be characterized within the framework of the economic system of relations. Cooperation acts as an organizational and legal form fixed in the norms of civil legislation. In this context, cooperation is a structure determined by a specific form of mutual relations. Such connections can manifest themselves in the form of a cooperative movement, in the form of people’s economic activity organized on a collective basis, etc. A special case of cooperation is a cooperative, which is a legally established form of organization and management of an economy based on an association of persons. As a legal entity, the cooperative emerged due to specific socio-economic prerequisites. It was these prerequisites that determined the special economic ties within this association. Cooperative organizations, in accordance with the current legislation, are divided into consumer and production ones, which is due to the goals of creating such legal entities: meeting the needs of shareholders or making a profit. In any case, all types of cooperatives contain a certain dualism—a combination of social and economic functions. Schulze-Delich and M. Tugan-Baranovsky noted that the value of cooperation is that it unites people and that is what has the main value, not capital Vetrinsky (1920, p. 26, 27). M. Tugan-Baranovsky wrote that cooperation is a result of people’s desire to transform the existing socio-economic system, where the priorities of capitalism rule, into a society of the socialist ideal Tugan-Baranovsky (1989, p. 46). Thus, cooperation has become the flagship of the proclamation of economic equality, the possibility of realizing independence from the owners of the means of production. If we turn to the history of the formation of cooperative organizations, it should be noted that initially they did not have the legal status that currently exists. The juridical

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consolidation of the status of these legal entities will appear later under the auspices of the cooperative movement. It is important to note that the concept of cooperation, which appeared at the beginning of the XIX century, still did not contain the semantic content as it is today, because it was interpreted as a synonym for collegiality, community, unity. Within the framework of the legal regulation of cooperatives, the Regulation on Cooperative Partnerships, adopted on March 20, 2017 by the decree of the Provisional Government, should be noted. The said resolution defined a cooperative as “a partnership with variable capital, which, acting under a special firm, aims to promote the material and spiritual well-being of its members through the joint organization of various economic enterprises or the work of its members” (Collection of resolutions, 1917). A number of regulations on the cooperatives’ activities were adopted later. However, cooperative legislation began to develop most systematically after 1992. The legal acts regulating the activities of various types of cooperatives are being adopted: agricultural, credit, production, consumer, which are still in force. The activities of consumer cooperatives are regulated by the Law of the Russian Federation No. 3085-1 of 19.06.1992 “On consumer cooperation (consumer societies, their unions) in the Russian Federation”, although consumer cooperation is also provided for within the framework of agricultural cooperation. Credit and housing cooperatives also belong to consumer cooperatives. Regardless of the type of cooperative association, they share common principles: voluntariness, a combination of personal and collective interest, democratic governance, self-organization, etc. All of the above suggests that cooperation has the potential to ensure sustainability, especially in the conditions of crisis development of social systems, when stable ties are collapsing, traditional institutions can no longer work effectively or their meaning and purpose are distorted. In these conditions, it is cooperation in the broad sense of the category that becomes the institution that is able to perform not only an economic function, but also carries a social integration function. Unfortunately, it should be noted that today the cooperation is in a state of crisis, has lost its former importance and scale of functioning. The dysfunctions of the cooperative system are due to the fact that it has ceased to meet the objective needs of society and the state. To eliminate these negative trends, it is necessary to transform the institute of cooperation by developing strategic plans for the development of the system in accordance with modern market requirements, taking into account cooperative strategies at all levels of sociosystems. In turn, in order to restore the prestige of cooperative organizations, it is necessary to organize the training of highly qualified personnel capable of solving problems in non-standard changing conditions;

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apply innovations in the field of management and modern technologies in production. The promotion of corporate strategy ideas and the creation of its positive image in society will help to overcome the existing negative attitude towards cooperation as an atavism. It should be noted, however, that in modern conditions this is impossible without the active support of the state. Such support can be expressed, for example, by including cooperation organizations in the system of support programs and government orders.

4

Conclusion

The cooperative strategy within the framework of cooperative activities and the cooperative movement is determined by the organizational structure of such systems. It is cooperation that allows us to give such synergistic effects that define the most effective functioning of any systems. Cooperation, in this case, can be identified as the theory of society itself, the basis of social science and a general scientific category. Today, more than ever, there is a need to apply a cooperative strategy that can offer a methodology for analyzing the state and prospects of development of social institutions, sociosystems in order to find a way out of crisis situations. Cooperation can address the gaps in the uniform understanding of social ontology, since it is cooperation, not struggle, that can become a priority and promising principle of the development of modern society.

References Blumer, H. (2017). Symbolic interactionism: Perspectives and method. Elementary Forms. Bransky, V. P. (2000). Theoretical foundations of social synergetics. Questions of Philosophy, 4, 112–129. Collection of resolutions of the Provisional Government on cooperatives: 1, 2, 3. (1917). On cooperative cargo companies and their unions of March 20, 1917. About registration of cargo companies, societies and unions since June 21, 1917. About congresses of representatives of cooperative institutions from August 1, 1917. Moscow, Council of All-Russian Cooperative Congresses., Russian https://search.rsl.ru/ru/record/01004219011. State Library. Accessed:12.06.2021 Cooley, Ch. (2000). Human nature and social order. Idea Press. Garfinkel, H. (2007). Studies in ethnomethodology. St. Petersburg, Piter. Hoffman, I. (2002). The order of interaction. Theoretical Sociology: Anthology. Part, 2, 60–104. Mead, G. H. (2009). Selected works: a collection of translations. Institute of Scientific Information on Social Sciences of the Russian Academy of Sciences. Minsky, M. (1979). Frames for knowledge representation. Energy. Parsons, T. (1994). The coordinate system of action and the general theory of action systems: culture, personality and the place of social systems. American Sociological Thought, pp. 448–464. Schütz, A. (2004). The world shining with meaning: favorites. ROSSPAN. Thomas, W. (1994). Methodological notes. American Sociological Thought, pp. 183–195. Tugan-Baranovsky, M. I. (1989). Social foundations of cooperation. Economics. Vetrinsky, Ch. (1920). Cooperation. Selected thoughts and sayings. 1st State Printing House.

Strategic Management, Analysis, and Control: General Provisions Tatyana Yu. Serebryakova , Olga G. Gordeeva , Roza S. Nikandrova , Olga R. Kondrashova , and Liudmila V. Kashirskaya

Abstract

This article demonstrates topical issues of modern strategic management, its main stages in their interrelation. Due to strategic thinking isn’t possible without a risk-oriented approach to strategy development. The article reveals the methodology of risk analysis of a company based on accounting data. The necessity of organizing strategic accounting to collect information necessary for strategic management and its main constituent elements is shown. The ESG approach in company management is characterized as a direction of possible improvement of the system of strategic management, control, and analysis. Keywords

. .

.

..

Strategic management Management accounting Strategic analysis Budgeting Risk analysis ESG-management JEL Classification

M10

1

.

M11

Introduction

Identification of the circumstances and patterns that determine the structure and foundations of building strategic accounting and analysis, as well as monitoring the T. Yu. Serebryakova (&) . O. G. Gordeeva . R. S. Nikandrova . O. R. Kondrashova Cheboksary Cooperative Institute (branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] R. S. Nikandrova e-mail: [email protected] L. V. Kashirskaya Financial University Under the Government of the Russian Federation, Moscow, Russia

implementation of the strategic goals of the company, is the main reason for a deep study of general theoretical issues of management. Traditional management systems are based on models for managing the process of obtaining financial results. They are based on profit maximization strategies. As information systems improve, which has led to a significant simplification and acceleration of the processes of information exchange and its generalization for business management purposes, new management models are emerging. They have different goals for achieving maximum profit. In modern public views on the role of business organizations in the transformation of the conditions for the existence of society, great importance is attached to the disclosure of certain information. It’s proclaimed as the general goal of business to focus on the interests of society in environmental and social issues. In the process of forming strategic aspirations, organizations should take into account that while planning new production, expanding activities, they should invest in the development of human capital, the transformation of territories, the preservation, and the improvement of the environment. In this vein, the global concept of sustainable development and the concept of integrated reporting are formulated, which apply not only to macroeconomic tasks of economic development but also to the micro-level of individual economic entities. The developers of these concepts, acting on behalf of the society, laid at the heart of them the desire of interested users of non-financial reporting to receive information about the impact of business on the environment and society in the context of the social, environmental, as well as economic aspects of the organization’s activities. The study carried out by Dumay et al. (2016) sums up the application of integrated reporting in world practice. The authors of this article argue that the concept of integrated reporting is currently widely discussed by scientists, businessmen are only looking at it, and few of them have switched to compiling integrated reporting. One of the

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_128

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reasons for the wary attitude towards the concept under consideration, in the author’s opinion, is the lack of a suitable information system for economic entities that makes it possible to generate indicators for integrated reporting. Another reason is the distrust of users, caused by doubts about the reliability of the information, which is reflected in non-financial reporting. Such scientists as (Bernardi & Stark, 2018; Palea, 2018; Warren, 2017) pay attention to this. The objectivity and reliability of the information of various types of public non-financial reporting, in the author’s opinion, can be achieved through its standardization. The organization’s strategy is a vector that determines the main long-term directions of its development, the basis for identifying specific goals, the achievement of which will have ensured the sustainable development of the organization for years. Well-designed strategy is based, in fact, on analysis of risks and opportunities, so it’s a business plan that reveals the process of moving towards goals from a financial point of view and various technological plans, roadmaps that reflect the introduction of technical and technological innovations, which are often the subject strategies. To do this, more specific tasks and a system of key indicators are being developed in all areas of management, in the context of specific periods, for visually representing the sequence of implementation of strategic tasks. The implementation of the developed management strategy and ensuring its successful implementation is possible if the economic entity has a well-organized strategic accounting system tailored to the needs of management and the adopted business strategy, strategic analysis system focused on existing and future business risks and external threats, as well as opportunities that exist in the market. The essence, tasks, and methodology of strategic management, as well as analysis in their works, were studied by many scientists, among them (Boronenkova & Churlyanis, 2011; Generalov, 2019; Mukhametov, 2019). The works of other economists reveal the features of strategic analysis in a crisis state (Danilina, 2019), certain aspects of strategic analysis (Khoruzhy & Tryastsina, 2019; Ponkratova & Radzishevskaya, 2019), and analysis in certain areas of activity (Tychinina et al., 2019).

2

Materials and Methods

As materials of the study, personal observations of the authors, practical data of organizations of medium and small businesses, as well as published scientific literature on strategic analysis, accounting and control were used. In this case, the usual general scientific methods of analysis, synthesis, induction, deduction, modelling, abstraction, and economic methods, which are the basis of calculations, were used.

To develop their points of view, numerous works of domestic and foreign scientists in the area of economic security, accounting and reporting, economic analysis, analysis of the financial condition, regulations of the Russian Federation, publications in periodicals, resources of the global information and telecommunication network Internet, various review, statistical and reference materials, accounting (financial) statements of enterprises, as well as personal observations of the authors were studied.

3

Results

Strategic goals, strategic planning, strategic control, and strategic analysis have become more and more popular tools for managing an economic entity in recent years. In modern conditions, strategic approaches to the development of management decisions can bring the expected effect of increasing business efficiency, improving all management and production processes, and increasing the value of the company. According to the group of Yekaterinburg scientists, the basis of strategic management is two prerequisites: (1) Awareness of threats to strategic goals, which makes it possible to manage risks; (2) The ability to identify and use the advantages, which are the source of achieving strategic goals (Kuznetsova et al., 2016). According to the same scientists, the ability to adapt to the environment in the implementation of strategic goals is the key to the success of the organization. This defines the tasks of management, the most important of which is the ability to respond to all problematic circumstances that arise over the years, while the organization is moving towards the strategic goal (strategic goals). Strategic management is certain management blocks processes with feedback between them (Fig. 1). As it was shown in the figure, before making a management decision regarding the choice of strategic goals, it’s necessary to diagnose the situation in the organization in terms of its position in the industry, the competitive advantages of the organization, and possible threats from its competitors, to assess the effectiveness of its financial and economic activities, as well as to analyze the anticipated risks and threats that can affect the implementation of the future strategy and interfere with the achievement of the set goals. After conducting comprehensive analysis and diagnostics, considering the ambitions of the company’s top managers and its owners, as well as the real capabilities of the company identified during the first stage (diagnostics), the

Strategic Management, Analysis, and Control: General Provisions

Diagnostics

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Analysis of the industry, competitors, financial and economic analysis, other types of analysis Risk Analysis

Organization Capabilities Determination of goals

Manager’s ambitions Owners wishes

Planning

Strategic planning

Plans for the long term

Tactical planning

Budgets for the coming year

Strategic Management Accounting Control Strategic Analysis Risk Analysis

Fig. 1 Stages of strategic management. Source Compiled by the authors

company’s strategic goals for the future, are formulated. At the same time, the strategic goal must have very specific quantitative and qualitative characteristics, because only in this case it will be possible to use such management tools as strategic planning, control, and analysis. At this stage, a list of indicators is also established, which will serve as the basis for the manager’s assessment of the degree of achievement of the goal and the quality of the strategic management process. For each indicator, normative value is developed to compare it with the actual size of this indicator, which can serve as a criterion for making subsequent management decisions at all stages of strategic management. The definition of a strategic goal isn’t the only condition that allows moving towards it successfully and confidently. In addition to the goal, it’s necessary to develop a detailed plan for achieving it, which is usually broken down into some tasks, the achievement of which will provide intermediate results that allow adjusting actions towards the goal. In this regard, planning can be conditionally divided into two levels —tactical and strategic. Initially, a strategic plan (budget) is drawn up, in which the quantitative parameters of the desired goal are calculated for the entire period of its achievement (sales, production, necessary investments, income and expenses, etc.). Based on the overall strategic plan, annual tactical budgets are developed. Tactical planning involves the development of operational, financial and investment budgets for the coming year. Budgets are formed based on the stage of

achieving the strategic goal, which is planned to be implemented in the planning period, and, therefore, part of the strategic plan, which has to be completed. Monitoring the results of the implementation of management decisions on the implementation of strategic goals is carried out regularly and is end-to-end. One of the conditions for the successful implementation of this stage of strategic management is the availability of complete information about the processes of implementing the goals and objectives, as well as their proper assessment. These functions perform strategic accounting and analysis, which serve as an information basis for controlling the implementation of the organization’s strategy and diagnosing its state. The conclusions formulated based on the results of control procedures become the basis for further actions of managers and start the feedback process. Taking into account the implementation of tactical budgets, strategic plans are revised, tactical budgets for the next year are developed, evaluation criteria and standard values of planned indicators are set, and strategic goals are also adjusted. Thus, strategic analysis is a function of control, which, in turn, is one of the elements of management. According to Selyutina, the system of strategic economic analysis consists of “interrelated areas in the context of selected objects of analysis (market analysis, consumer analysis, competitor analysis, analysis of suppliers and intermediaries, analysis of goods, analysis of production and sales, price analysis,

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analysis of the promotion of goods, works, and services), which allow obtaining a complete picture of the nature of the influence of factors of the internal and external environment of functioning” (Selyutina, 2019). The authors believe that along with the listed objects, risks are an important object of strategic analysis that should be also singled out. This opinion is supported by Serebryakova and Gordeeva (2019), who noted in their work that “…all widely promoted internal control models (COSO, COBIT, etc.) include in their system such an element as risk assessment”. Therefore, one of the stages of the risk management process in the organization, along with its assessment, is the stage of risk analysis. Using information about the main economic indicators and their dynamics, strategic analysis techniques make it possible to identify and evaluate existing and anticipated risks, which can help prevent them. Risk analysis is based on the use of economic (financial) indicators generated in the accounting and reporting system, and non-financial indicators expressed in-kind and other forms (for example, information about technological and political threats, threats from competitors, counterparties and personnel, etc.). Risk analysis involves identifying the risk (identifying the fact of the presence of risks, understanding their presence), assessing the likelihood of its occurrence, and, finally, measuring its magnitude. However, risk control or monitoring is another aspect of using analysis, while dealing with risks (Fig. 2). The authors identified two types of indicators used to assess risks—financial and non-financial. The sources of information for the formation of financial indicators are the accounting (financial) statements of the company, the content and methodology for the formation of articles. They are also clearly regulated and don’t raise questions. Also, part of the financial indicators can be formed in the management accounting system, the organization and content of which are specific to each economic entity. Non-financial indicators can be formed based on internal sources (internal management reporting, primary accounting documents and technical documentation, terms of contracts with counterparties, personnel department data, etc.) and based on external sources (Internet resources, expert reports, analytical forecasts, etc.). External sources can also include non-financial public reporting (integrated, social, sustainable development reporting) provided to external interested users to disclose information on the implementation by business entities of the principles of sustainable development, sociallyoriented and socially useful activities, care for the environment, etc. These sources characterize the state of the information system, the quality of the process of its processing and transformation. There is a selection of necessary information for strategic analysis for a certain system, while the information must meet certain criteria of properties and quality. It’s

T. Yu. Serebryakova et al.

difficult to influence the structure of external information, but it can be selected according to structure-forming features. Internal information, its collection, type, as well as quality, can be influenced up to the development and implementation of the system for collecting and summarizing information necessary for strategic analysis. The set of techniques and methods of strategic analysis in the processing of the collected information generally corresponds to the usual analytical techniques and methods. Perhaps, in the process of processing external information, statistical methods of economic analysis have to be used, and coefficient analysis, which is more suitable for identifying risks, can be used with internal sources. Risk analysis plays a leading role in management technologies. The study of various definitions of the essence of risk allows drawing the following conclusions. Risk analysis can be carried out in two directions: the first—on the decisions that have already been made earlier, and the second— on the decisions to be made. Classification of risks is necessary for their identification and development of methods for their analysis and risk management. At the same time, the risks related to a specific area of the organization’s activities are examined, and their ranked list is compiled. An analyst needs to choose methodological approaches to working with risks and implement the stages of their detailed analysis. Consider the risk analysis methodology based on accounting (financial) statements (balance sheet and income statement). Almost all items of the asset and liability of the balance sheet should be treated as potential carriers of risk events. The authors believe that the existing risks are reflected in the reporting items because accounting reflects all the facets of economic activity. In this regard, it’s possible to identify certain risks, by examining the balance sheet items. A large number of risks are the result of events associated with the erroneous expenditure of the organization’s funds or with their incorrect reflection in accounting while creating and registering assets, as well as in connection with the threat of their loss and inefficient use. The study of the composition of balance sheet items allows conducting a qualitative and quantitative analysis, the results of which can identify an emerging unfavourable situation. The use of financial analysis models in the study of balance sheet items will allow assessing a certain group of risks (Table 1). These include, in particular: price risk; property risk; risk of financial investment; real investment risk; tax risk; credit risk; interest rate risk; inflation risk; liquidity risk; currency risk; risk of loss of financial stability and independence; the risk of bankruptcy. To determine the risk associated with investing the organization’s funds, first of all, it’s necessary to analyze the composition of the organization’s property (assets). It’s

Strategic Management, Analysis, and Control: General Provisions

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Internal risks of the organization

Environmental risks

Identification and classification of risks The choice of indicators that assess risk Financial indicators formed in accounting and reporting

Non-financial indicators obtained from other sources of information

Risk assessment and measurement Determination of normative values of estimated indicators

Risk level control

Determination of actual values of estimated indicators

Choosing an acceptable level of risk Analysis of individual articles of financial statements, operations, non-financial indicators for the selected type of risk Evaluation of the results of the analysis

Making risk management decisions Fig. 2 Sequence of risk analysis and assessment. Source Compiled by the authors

obvious that an article with a large investment of funds, riskier in its composition, needs to be given more attention to calculate the magnitude of the risk and determine the direction of its minimization. In the balance sheet assets include non-current assets and current assets, each type of which is characterized by different types of risks. Fixed assets, capital investments (in progress on the reporting date), intangible assets are characterized by price risks, which may be due to: overestimation of the actual cost of assets purchased for a fee; with an overestimation of the actual (contractual) cost of the capital construction object in comparison with the estimated calculations; with a delay in the construction and delivery of construction projects; with the possible need to reevaluate fixed assets and intangible assets, with an increase in the cost of building materials, etc. If the analyst has doubts about the reliability of the information, he always has the opportunity to quickly check possible accounting errors, analytical accounting data for these reporting items to confirm the possibility of potential risk or conclude that the risk is unlikely. Current assets differ from non-current assets by the duration of their life cycle, which doesn’t exceed one year.

Mobile assets support the operations of the enterprise as a whole. Let's give examples of risks. The balance sheet item “Inventories” is associated with risks of loss of financial stability, which may arise due to the purchase of an excessive amount of reserves and decrease in their liquidity; obsolescence of stale reserves; the occurrence of damage and shortages of material assets, etc. The article “Accounts receivable” is associated with credit risks arising primarily from the possible insolvency of debtors and violation of payment discipline. Property analysis should begin with a horizontal (dynamic) analysis of the organization’s assets. The analysis is carried out in terms of value. In the course of horizontal analysis, the nature of deviations is analyzed. Articles are identified if the largest deviations occurred for them. All of these led to a change in the value of non-current assets. Horizontal analysis of deviations allows evaluating the change in property by economic elements: fixed capital, working capital; identify the group and intragroup deviations, find out groups of the asset, which were influenced the total deviation; define changes and components that were the reason of it within the groups, highlight undesirable ones.

674 Table 1 Potential risks linked to balance sheet items

T. Yu. Serebryakova et al. Asset articles

Types of potential risk

I. Non-current assets Intangible assets

Price risk

Intangible search assets

Price risk

Tangible search assets

Property risks

Fixed assets

Price risk

Profitable investments in material values

Property risks

Financial investments

Risks of financial investment

Deferred tax assets

Tax risk

Total for Section I

Liquidity risk, loss of financial stability and independence

II. Current assets Stocks

Risk of loss of financial stability

VAT on purchased assets

Tax risk

Accounts receivable

Credit risk

Financial investments

Interest risk. Credit risk

Cash

Liquidity risk. Currency risk

Total for Section II

Liquidity risk, loss of financial stability and independence

III. Capital and reserves Authorized capital

Risks of financial investment

Extra capital

Risks of financial investment

Reserve capital

Risks of financial investment

Retained earnings (uncovered loss)

Risk of loss of financial stability and independence

Total for Section III

Risk of loss of financial stability and independence

IV. Long term duties Borrowed funds

Interest risk. Credit risk

Deferred tax liabilities

Tax risk

Estimated liabilities

Credit risk

Total for Section IV

Liquidity risk

V. Short-term liabilities Borrowed funds

Credit risk. Interest risk

Accounts payable

Liquidity risk

Revenue of the future periods

Liquidity risk

Estimated liabilities

Liquidity risk

Total for Section V

Liquidity risk

Balance

Bankruptcy risk

Source Compiled by the authors

Analyzing changes in non-current assets, it should be borne in mind that on the one hand, they characterize the production potential, on the other hand, it’s necessary to comply with a certain ratio of them. The growth rates of group and intra-group components of the property are analyzed; conclusions about the nature and proportions of their dynamics are drawn. Regarding assets, which were the predominant objects of investment for the analyzed period, the specialists are judged by the rate of their growth.

After the horizontal analysis, vertical (structural) analysis of the property is carried out, the main purpose of which is to establish the structure of the property and give an analytical description. The high share and strong influence of non-current assets are fraught with the fact that with further increase in prices and decrease in purchasing power, the company may suffer significant financial losses due to the depreciation of assets. The share of current assets is called the “asset flexibility coefficient” and characterizes the possibility of behaviour in

Strategic Management, Analysis, and Control: General Provisions

the market. Change in this indicator points to deterioration or improvement in the mobility of the liquidity structure of the property. Comparing the growth rates of the share of the property, change in certain types of risk can be traced. The following situations are possible in this situation: • The growth rate of the share of non-current assets is higher than the growth rate of the share of current assets —this increases investment and production risks, and also increases the risk of insolvency; • The growth rate of the share of non-current assets is higher than the growth rate of the share of equity capital —this increases the investment risk and the risk of loss of financial stability; • The growth rate of the share of current assets is less than the growth rate of the share of current liabilities (current debt)—this is a potential risk of loss of liquidity; • The growth rate of the share of inventories is higher than the growth rate of the share of own current assets—this is a potential risk of loss of liquidity. If there are conclusions about the existence of a risk associated with investing the organization’s funds in non-current assets, it’s necessary to carefully analyze the type of risk to make management decisions. In the presence of non-current assets, the organization’s risks increase significantly, because resources are invested for a long period and it’s become impossible to predict their behaviour. In addition, the different types of risks can be noted here: • Production (investment in equipment); • Investment (investments in intangible assets, research and development); • Financial (long-term financial investments). The risk potential is also present in the statement of financial results, based on the nature of the economic elements placed line by line in the statement. Table 2 reflects the types of potential risks, which may arise in the organization and can be also noted in the process of examining the income statement. Such indicators of the statement of financial results as revenue and cost of sales are associated with price risks, due to revenue depending on the prices of products, goods, works, and services. Selling prices are set based on market conditions, which may be lowered by competitors’ prices and other factors. The cost of sales depends on the prices of material resources, production services, wage rates, etc. Such items as “Interest receivable” and “Interest payable” are subject to the risk of growth (decrease) in interest rates on credits, loans, as well as deposits. Risks under the report

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item “Current income tax” may be associated with the risks of incomplete accrual (or excessive accrual) and late payment of tax payments. Earlier in this article, the authors mentioned a system for collecting information for strategic management, in which internal sources of information play an important role. The authors believe that the allocation of a separate information segment, which combines elements of financial and management accounting—strategic accounting, will be the most effective in this case. One of the important requirements for this information system is flexibility and the ability to adapt to the chosen strategic goals and the needs of management personnel that arise in the process of implementing these goals. Compared to the financial accounting system, which is quite static (because it’s built based on regulatory documents and accounting policies applied consistently from one period to another, this can be changed only if legislation significant change in the conditions of the organization), the strategic accounting system must be dynamic and be able to adjust each time to the chosen strategic goals. This is explained by the fact that each strategy must have its system of evaluation and benchmark indicators, and, consequently, the entire accounting system must be built anew. Even the management accounting system doesn’t have such flexibility, the structure of which is determined according to the characteristics of the organization’s activities. It can be adjusted, improved, and finalized, but not completely changed with certain regularity. As it’s known, the basis for management decisions are the results of the comparison of planned (desired, strategic, regulatory) information and achieved results. In economics, information and results are expressed through economic indicators. Therefore, it’s impossible to do without strategic business planning, which reflects strategic goals and data on intermediate support goals, without budgeting, and without a system for collecting information on the actual achievement of those indicators that are reflected in strategic plans, while setting up strategic accounting. An important component of strategic management is the systematization of information about risks and threats, their assessment, as well as analysis. Therefore, a risk-based approach has to be applied in the strategic accounting system. In this case, various options for monitoring, collecting, summarizing, and controlling information are possible: • In integrated information system (financial and management accounting); • In the management accounting system with the separation of the strategic accounting segment; • With the use of accounting accounts and double entry or without their use.

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Table 2 Identification of potential risks in the income statement items

Name of indicator

Types of potential risk

Revenue

Price risk

Cost of sales

Price risk

Selling expenses

Inflation risk

Management expenses

Inflation risk

Interest receivable

Interest risk

Percentage to be paid

Interest risk

Other income

Price risk

Other expenses

Price risk

Profit (loss) before tax

Bankruptcy risk

Current income tax

Tax risk

Change in deferred tax liabilities

Tax risk

Change in deferred tax assets

Tax risk

Other

Tax risk

Net income (loss)

Bankruptcy risk

Source Compiled by the authors

The development of a strategic accounting system is one of the most important tasks of strategic management.

4

Conclusion

The development of strategic analysis, the definition of goals and objectives for it takes place following the strategic goals of achieving certain results of the company, with the management of this process (Prodanova et al., 2019). To control the implementation of strategic and tactical plans and tasks to achieve the declared value, a system of indicators, their criteriaб and calculation methods are built as part of the strategic analysis. Thus, it becomes necessary to develop a methodology for strategic analysis, which includes not only the procedure for identifying and assessing risks, calculating indicators but also the system of indicators, criteria values, the procedure for monitoring indicators and rules for making decisions based on the results of strategic analysis. To do this, it’s necessary to organize strategic control over the achievement of the company’s goals in the stated values by solving the tasks facing them: • Establishment of risk indicators, methodology for their assessment, and risk reduction tools; • Formation of the unified system of benchmarks in line with the monitoring of strategic goals; • Formation of accounting system built into accounting or management accounting for reliable generalization of relevant information about strategic goals; • Regulation of personnel actions to record and analyze the necessary information, bearing in mind a system of criteria as indicators of the effectiveness of progress towards strategic task;

• Creation of information interaction within the organization between employees to analyze, record, as well as control the achievement of the strategy. In recent years, scientists have been paying more and more attention to the problems of corporate governance, social, as well as environmental factors in the development of economic entity (ESG technology, from the English environmental, social, governance) (Efimova, 2021). This category is increasingly being integrated into the processes of making strategic management decisions. ESG technology is a management ideology, which is adopted by the company and aimed at solving the problems of social inequality, environmental problems, as well as problems of business opacity, covering a single economic entity and society as a whole (Soboleva & Steshenko, 2020). ESG technology is an integral element of strategic management. The existing tools and methods of management and analysis make it possible to understand which ESG criteria can be applied to a particular situation, in the process of setting a strategic goal or achieving it. At the same time, managers have to understand what information about the achieved ESG parameters should be generated in the strategic accounting system and disclosed to stakeholders to attract financial resources from investors, new partners, as well as tax preferences, taking into account the orientation of the public, business representatives, and government authorities towards the principles of responsible investment. Responsible investment implies the distribution of funds invested in the economy primarily to those firms that are aimed not only at increasing profits and company value, but also with environmental, social, and governance goals (ESG goals). There are can be the next ESG goals:

Strategic Management, Analysis, and Control: General Provisions

(1) Environmental goals (E-factors)—the introduction of resource-saving technologies, waste disposal, installation of treatment facilities, reducing the level of emissions of harmful substances into the atmosphere; impact on soil and water resources, the level of implementation of innovations that help reduce environmental risks; (2) Social goals (S-factors)—working conditions, social security of employees, level of remuneration, staff turnover, observance of human rights; health and safety, work with clients; (3) Management goals (G-factors)—management structure, business reputation, transparency of the ownership structure; tax strategy and development strategy, level of corruption, transparency of information, availability of risk management system, the efficiency of the internal control system (Ovechkin, 2021). The introduction of active measures of social and environmental policy inevitably leads to an increase in the company’s expenses and the cost of products (works, services), which negatively affects its financial results and profitability. However, many researchers note that in the long term, with the help of the ESG policy, the company’s reputation grows and attracts new customers, partners, investors, as well as qualified personnel, which leads to business benefits and increases its efficiency. Improving corporate governance also affects the company’s financial performance. Conversely, scandals associated with negative environmental consequences, frequent labour disputes, violations of labour laws and consumer rights, and poor corporate governance ultimately lead to deterioration in the financial condition of the company. The solution of these tasks due to the setting up a system of strategic accounting and analysis within the framework of strategic management will make it possible to fully use the opportunities provided by modern management concepts.

References Bernardi, C., & Stark, A. V. (2018). Environmental, social and governance disclosure, integrated reporting, and the accuracy of analyst forecasts. The British Accounting Review, 50(1), 16–31. https://doi.org/10.1016/j.bar.2016.10.001

677 Boronenkova, S. A., & Churlyanis, A. V. (2011). Strategic accounting and analysis in the management of an economic entity. Proceedings of the Ural State University of Economics, 5(37), 20–29. Danilina, S. A. (2019). Strategic analysis in the conditions of the crisis financial state of the organization. Student Bulletin, 24–4(74), 47–49. Dumay, J., Bernardi, C., Guthrie, J., & Demartini, P. (2016). Integrated reporting: A structured literature review. Accounting Forum, 40(3), 166–185. https://doi.org/10.1016/j.accfor.2016.06.001 Efimova, O.V. (2021). On accounting for sustainable development factors in financial modelling of investment projects. Bulletin of the Voronezh State University. Series: Economics and Management, 2, 99–111. Generalov, Yu.A. (2019). Strategic analysis of the development of the organization. Collection of materials for international scientific and practical conferences. In A. A. Short (Ed.), 142–148. Khoruzhy, L. I., Tryastsina, N. Yu. (2019). Strategic analysis of the competitiveness of the organization. Accounting in Agriculture, 3, 66–77 Kuznetsova, E. Yu., Krylatkov, P. P., Mineeva, T. A., Podolyak, O. O. (2016). Modern strategic analysis (p. 131). Ural University Press. Mukhametov, A. D. (2019). Strategic management analysis. Bulletin of Modern Research, 6.3(33), 64–67. Ovechkin, D. V. (2021). Responsible investments: the impact of ESG-rating on the profitability of firms and the expected return on the stock market. Scientific Journal of National Research University of Information Technology, Mechanics and Optics. Series: Economics and environmental management, 1, 43–53. Palea, V. (2018). Financial reporting for sustainable development: Critical insights into IFRS implementation in the European Union. Accounting Forum, 42(3), 248–260. https://doi.org/10.1016/j. accfor.2018.08.001 Ponkratova, E. Yu. Radzishevskaya, T. A. (2019). Strategic analysis of the external environment of a commercial organization. Economics and Society, 1(56), 771–775. Prodanova, N. A., Plaskova, N. S., Khamkhoeva, F. A., Serebryakova, T. Y., & Ivanov, E. A. (2019). Methodological approaches for strategic economic analysis. International Journal of Economics and Business, 7(3), 305–316. Selyutina, T. S. (2019). Development of organizational and methodological support for the strategic economic analysis of the corporation. Dissertation for the degree of candidate of economic sciences (p. 181). Voronezh State University. Serebryakova, T. Yu., Gordeeva, O. G. (2019). Organizational risks: their accounting, analysis and control (p. 233). Infra-M. Soboleva, O. V., Steshenko, A. S. (2020). “ESG-factors” as a new mechanism for activating responsible investment and achieving sustainable development goals. Sustainable Development: Challenges and Opportunities. In E. V. Viktorova (Ed.), Collection of scientific articles (pp. 246–255). Tychinina, M. K., Vorobyov, S. A., Salimov, M. Sh. (2019). Strategic analysis of the advertising agency. Financial Economy, 8, 304–306 Warren, M. (2017). Assuring the integrated report: Insights and recommendations from auditors and preparers. The British Accounting Review, 49(3), 329–346. https://doi.org/10.1016/j.bar.2017.03. 003

Development of Professional and Qualification Potential of an Employee Oleg A. Ryabkov

and Ivan A. Steshin

Abstract

The paper aims to analyze contemporary primary sources and identify relevant aspects of the planning, organization, and regulation of training, professional development, and retraining of personnel of innovative enterprises. The paper analyzes the problem of training and professional development of workers in today’s organizations using general scientific research methods. The paper identifies ways of solving the problem of forming the personal and professional potential of employees at a high-tech enterprise. The results obtained by the author can be used in the personnel policy of any organization, including innovative enterprises.

The answer to this question should be the introduction of advanced innovative technologies and their management processes. Insufficient attention to the development of innovative processes will necessarily lead to the loss of effective activity of any enterprise and its non-competitiveness. In this regard, special attention should be paid to innovation in its broad sense to ensure the quality of goods and services produced. The process of introducing innovation depends on the level of development of society and the level of development of the continuing education system in the broadest context of this concept.

2 Keywords

.

.

Personal potential of an employee Innovative potential of an enterprise Professional potential of an employee JEL Classification

J23

1

. . J44

J82

Introduction

The topic of this research and its relevance are determined primarily by the current level of competition between enterprises and organizations, where a special place belongs to the level of intellectual potential of employees, their competence, knowledge, skills, and abilities to create innovative products. The question of what managers of innovative enterprises should pay attention to for achieving high economic efficiency is still relevant.

Oleg A. Ryabkov Deceased. O. A. Ryabkov . I. A. Steshin (&) MIREA—Russian Technological University, Moscow, Russia e-mail: [email protected]

Materials and Methods

Nowadays, the level of condition and development of the economy with advanced equipment and technology leads to the development of a contemporary approach to organizing the production process and improving the quality and uniqueness of developed and manufactured products. In this regard, it is necessary to pay special attention to the existing innovation potential of the enterprise and organizational and technological changes in society (Chikunova & Avanesyan, 2018; Golovanova & Ryabkov, 2020). Studies of the current state of the labor market in Russia indicate a shortage of skilled workers in certain sectors of the economy. Simultaneously, there is an imbalance between supply and demand in the Russian labor market. Many studies have been devoted to this issue. These facts are a reason to improve the system of training specialists for various sectors of the Russian economy (Kibanov, 2018; Kopkova & Belkin, 2018) The concept of the professional and qualification potential of an employee includes the concepts of personal potential and human resources (Burlankov et al., 2019). The concept of human resource defines the creative abilities of people and ways of possible comprehensive

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_129

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development of employees of the enterprise (organization). This term encompasses the combination of certain personal qualities determining the ability of a single individual to produce a specific product. This definition can be considered in the context of an enterprise and the country as a whole. In other words, human resource touches on the functional and personal approach to an employee and creates the opportunity to make a deeper analysis of human adaptability to different types of work. Given that the management of human capabilities upgrade is the most important task, the need to address which is urgent in any enterprise or organization, its solution determines the possibility of a rapid transition to the next level of the Russian economy in any innovative sectors of economic management. To achieve this goal, it is necessary to focus on increasing the number of highly qualified and talented scientists and engineers whose ideas will be new and unconventional (Arkhipova, 2017). The same plots apply to managerial personnel because they organize production and ensure its efficiency. Such workers become the driver of today’s economy, transforming it into a truly innovative economy. Speaking of this in 2021 and considering the fact that this year has been declared the Year of Science and Technology in the Russian Federation, the relevance of such research becomes fully understandable. The current economy sets requirements for potential employees so that human resources become a crucial indicator, serving the basis for the employer in making the right choice in the recruitment of potential employees. The inter-organizational struggle for ownership of human resources is interesting in Russia and worldwide. Each country is trying to attract scientists and become a center of concentration of intellectual power, where new ideas will emerge. The situation is that original and sometimes brilliant ideas come from smart and educated people. Therefore, it is important to emphasize the qualifications of personnel (their training and retraining) to develop the scientific and technological base of the country. The issue of staffing is the most relevant at the moment. In this context, it is necessary to recall the development of the concept of lifelong learning. Considerable investments are required to implement a project as difficult and complex as attracting new human resources. To achieve the goals, one cannot ignore the attraction of foreign capital in the form of direct investment, portfolio investment, and other assets. Recently, there has been a steady outflow of monetary resources from the scientific sphere to the extractive industry. In most countries, the financing of innovative projects comes from budgetary and non-budgetary resources. In Russia, the role of the sponsor is usually assumed by the state.

O. A. Ryabkov and I. A. Steshin

Private investors want a quick return. They are not interested in risking their resources for the sake of waiting years for a payoff. Venture capital investment has high risks, which, in the aggregate, strongly affect the level of turbulence in the Russian economy. In other words, if we want to interest private investors in venture capital entrepreneurship, we must emphasize the formation of a certain individual innovative product for them. It is also necessary to help investors feel the non-negative trend of changes in the country’s economy. For this reason, the Russian market can be attractive for foreign investors but, at the same time, remains unpredictable. The personal potential of employees striving to assimilate new knowledge and skills forms their professional potential. In turn, professional capacity contributes to the mastery of necessary competencies, which generally form the employee’s qualifications.

3

Results

Nowadays, qualification is the level of compliance with a certain task and the level of readiness to perform it well. This is usually fixed and confirmed in the form of various diplomas, certificates of passing programs, and compliance with standards in a particular industry. The level of quality is often directly proportional to the level of skill (the higher, the better) (Ermilov & Biglova, 2020; Zhumalieva, 2020) The professional and qualification potential of any company or enterprise can easily be analyzed and evaluated according to the following criteria: 1. The first criterion is the gender and age of the staff. The percentage of men and women and the age groups are determined. 2. The second criterion is the level of education of all personnel. 3. The third criterion is the total length of service. 4. The fourth criterion is the qualifications of employees and their level. 5. The fifth criterion is the effort and traction of the organization to train its staff to improve their skills. The first criterion is evaluated by the following indicators: • Percentage of male and female employees; • Age of employees (18–25 years old; 26–40 years old; 41–50 years old; 51–60 years old; working pensioners).

Development of Professional and Qualification Potential of an Employee

Education and its level can be evaluated by the specific weight of the personnel with the following education: 1. Secondary; 2. Higher; 3. Academic degree. In turn, secondary education has several types: special and incomplete. The level of work experience is determined by the proportion of workers who have experience in a particular industry: less than a year, 2–3 years, 4–5 years, 6–10 years, and workers with more than ten years of experience. The qualification of personnel is determined by the proportion of the skill category of core workers and auxiliary workers. The company’s efforts to optimize and improve the quality of professional training and retraining are characterized by the following factors: • Indicators of resources spent on training, retraining, and advanced training of employees are calculated per employee. This also includes the management. • The resources that the organization (company) is ready to spend to regularly replenish its professional library, which employees can use to improve their skills and professionalism. The professional potential of the personnel of any enterprise is one of the most important indicators for favorable development and successful operation. The level of professionalism of employees determines the opportunities for diversification and a significant increase in the quality of manufactured products or services, which leads to economic growth and the overall progress of the company. Continuous development of staff is carried out thanks to the training function of the company—a system of training new employees and its training, retraining, and improving the competence of current employees.

4

Discussion

Vocational training of the target area includes the following: 1. First, it is worth noting the most common type of training —training of personnel, that is, training that allows an employee to receive the necessary minimum of information for theoretical and practical use.

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2. The next type of training is retraining. This is the next level of basic education (training). An employee receives knowledge of other specialties according to their specifics and peculiarities. 3. The last type of training is advanced training, the purpose of which is to improve the professional qualities of the employee of the organization. There are different types of vocational training: 1. Professional training can be organized directly in the company by own efforts, without the involvement of consulting companies. 2. Professional training carried out outside the organization (company, enterprise). In this case, the organization can turn to various consulting companies. Preference is usually given to companies with the best reputation and the greatest similar experience in training, retraining, and advanced training of workers. The company determines and sets only the direction and specific goals for developing its personnel. 3. Vocational training at home. An enterprise can develop a progressive motivational program to increase the self-training of its employees. Vocational training can also differ by place of vocational training: • In the workplace (1A); • Outside the workplace (1B). Let us consider these concepts in more detail. 1A. One of the innovative areas of the educational system is the so-called operational training, which can take place in the workplace. Such training focuses on a specific work process and a specific job to accomplish a goal. The advantages of this innovative approach to learning are that, first, we have a minimum cost of training and, second, the time of adaptation of the learner to the specific problem is reduced. In the training process aimed at solving the problem in question, methods such as working as an assistant, ranking the complexity of tasks, the constant dynamics of jobs, the transfer of authority and responsibility, and so on are used. Such training is suitable for workers in the simplest, “lowest,” and “basic” positions. 1B. Training that occurs outside the workplace is much more efficient and productive because it is marked with a large theoretical part, which, in turn, has a positive impact on

682

the degree of versatile training. However, this form of training is much more expensive than “on-site” training. It requires a considerable amount of money and time. Moreover, an employee is removed from his or her usual work and does not feel the process of routine and fatigue. The learning tools that make it all happen are as follows: 1. Lectures, which should be reinforced by work on a personal computer; 2. Practical exercises in the classroom with pre-formed groups according to a large number of criteria (number, level of training, and the required level of qualification). 3. Training in the form of a business game, a variety of cases and situations that form a new process of thinking in students. The defining purpose of any enterprise (company, organization) in the field of training, retraining, and staff development is to provide a high level of retraining of individual staff, which will correspond to the new requirements of the twenty-first century. A retrained employee, for example, for a new position (not always and not necessarily a higher one) must have all qualitative skills and competencies (Startsev & Taradanov, 2017; Yakovleva, 2017) corresponding to the new position to perform its duties. All professional skills and techniques must be brought to a flawless level. All questions, difficulties, and misunderstandings should remain at the training stage. The process of training and retraining is by no means idle. In the era of an innovative economy, the slogan “Personnel solves everything” is put forward to ensure production efficiency. Basic vocational education should be provided in a practice-oriented format (Luneva et al., 2018). The faculty of contemporary universities must now be composed of professionals with both deep knowledge and solid practical skills and mastery of the material being studied. In the professional community, it is customary to distinguish between the types and forms of personnel training shown in Fig. 1. The skill potential of each employee changes throughout his or her employment. In this case, the working (life) cycle of workers can be divided into three stages: 1. Stage 1 is characteristic of those workers who have just received an education. Such an employee has a verbal, theoretical knowledge base with no practical part. Accordingly, it is only up to the individual to develop their competent skills. This period is in many ways fundamental and defining because, during this time, all the material base and familiarity with the “inside” processes are built up.

O. A. Ryabkov and I. A. Steshin

2. Stage 2 is the period of professional maturity. At this point, the formation of the necessary level of knowledge and skills for further professional growth begins, on which the entire production process will rest. 3. Stage 3 is characterized by a gradual decrease in the accumulated qualification. This stage comes for workers in innovative industries with constantly changing technologies and types of end products (e.g., enterprises of the military-industrial complex). In this case, the desire of employees to constantly improve their skills and even be fully retrained is fundamental.

5

Conclusion

The process of training and its various forms plays a great role in developing the professional qualities of any organization. Technologies and methods of professional development, requalification, and obtaining initial education are currently very diverse. However, it is always necessary to keep in mind the personal characteristics of people, their capabilities, and abilities. It is necessary to put the concept of lifelong learning at the forefront because it is the key to the successful formation and development of personality. The primary purpose of staff training in any organization is when colleagues receive new and necessary work skills and knowledge, which will help ensure the proper professional level of the team. Colleagues must be ready to replace each other, ready for self-improvement in accordance with the new standards of the enterprise and its development strategy. In today’s conditions and realities of an innovative economy, any organization, enterprise, production, and agency should be interested in improving the skills of its employees. Improving the skills and competencies of employees entails a considerable number of positive consequences for the company: • Enhancing and highlighting the advantages of the company over its competitors; • Improved product quality; • Services reach a new level of production; • Motivating personnel to develop their professional skills. The high competence of employees even at the lowest levels of work allows one to count on creative thinking and the emergence of new promising ideas. On the other hand, the top management of any enterprise with such a personnel policy ensures its effective operation.

Development of Professional and Qualification Potential of an Employee

683

By type of training

Training inside the company

Training outside the

Independent learning, self-study,

company

and self-training

By form of training

An employee is disconnected from the

An employee is not disconnected from the

workplace

workplace

By training purpose

Training of new workers

Qualification and its

Retraining of employees

improvement

By type of place of study

In the workplace

Off the workplace

Fig. 1 Types and forms of personnel training. Source Compiled by the authors

References Arkhipova, T. A. (2017). Directions and stages of work with the personnel reserve. Young Scientist, 49(183), 157–161. Burlankov, S. P., Kuzmin, S. A., Volodin, V. M., & Skvortsova, V. A. (2019). Factors influencing the management system of innovative potential of industrial enterprises. University Proceedings. Volga Region. Social Sciences, 4(52), 138–146. https://doi.org/10.21685/ 2072-3016-2019-4-14 Chikunova, A. A., & Avanesyan, D. N. (2018). Innovative personnel management. Advanced Scientific Research and Development, 1(4), 550–552. Ermilov, S. I., & Biglova, A. A. (2020). Personnel reserve of the organization. Young Scientist, 3(293), 343–347. Golovanova, N. B., & Ryabkov, O. A. (2020). Prospects for the development of high-tech production in Russia. Economics and Management: Problems, Solutions, 1(11), 4–11. https://doi.org/10. 34684/ek.up.p.r.2020.11.01.001

Kibanov, A. Ya. (2018). Personnel management of the organization. INFRA-M. Kopkova, E. S., & Belkin, I. O. (2018). Analysis of personnel reserve management strategies in modern companies. Problems of the Regional Economy, 42, 37–48. Luneva, Yu. B., Vaganova, O. I., & Smirnova, Z. V. (2018). Practice-oriented approach in professional education. Innovative Economy: Prospects for Development and Improvement, 6(32), 122–126. Startsev, Yu. N., & Taradanov, A. A. (2017). Competence as a management tool for innovative staff development. Management Issues, 2(45), 170–174. Yakovleva, E. V. (2017). Forming of innovative competence of personnel of modern industrial enterprises. Human resource management—The basis for the development of an innovative economy, 7, 294–298. Zhumalieva, A. K. (2020). Innovative model of management of human resources of the organization. Young Scientist, 2(292), 266–268.

Efficiency of the Organization’s Performance as a Factor of Sustainable Development and Economic Security Artur A. Semenov , Tatyana Yu. Serebryakova , Olga G. Gordeeva , Zhanna S. Kitaeva , and Larisa V. Markina

Abstract

The paper considers the key aspects of economic security of business companies based on the justification of the effectiveness of their activities. The authors conclude that it is acceptable to use different methodological approaches to assess the effectiveness of financial and economic activities, particularly the tools of analysis of liquidity, solvency, profitability, and financial stability, provided that they are properly justified and threshold values are developed. Keywords

..

.

..

Sustainability and safety of business operations Liquidity Solvency Financial sustainability Profitability Economic security Indicators and indicative planning

.

JEL Classification

M40

1

Introduction

The issues of improving the efficiency of activities have not lost their relevance for many decades because it is one of the conditions for the viability of the enterprise. However, the

A. A. Semenov Chuvash State Agrarian University, Cheboksary, Russia T. Yu. Serebryakova (&) . O. G. Gordeeva . Z. S. Kitaeva . L. V. Markina Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] L. V. Markina e-mail: [email protected]

crisis phenomena in the global economy, caused mainly by the COVID-19 pandemic, raises the issues of business efficiency to a new level. From the point of view of sustainable and safe development, point of view, there is a shift of emphasis towards the ability of the enterprise to respond and counteract threats and risks of business activities promptly. Nowadays, there have been active discussions on identifying threats and risks to economic activity, the classification of these threats and risks, assessing its impact on the results of business-functioning of companies, developing methods to counter them, developing tools to assess and monitor threats and risks, etc. This list of issues is not exhaustive and constitutes the subject of economic security research. These issues are actively present in the works of foreign authors such as (Bragg, 2007; Damodaran, 2012; Serebryakova & Kurtaeva, 2020). A review of these sources allowed us to deduce several theses. First, the theoretical developments of the aforementioned experts are not always applicable in Russian reality because the economic conditions of foreign countries are different from the economy of Russia. Second, there is an active presence of the problem of the scientific information gap. Prominent representatives of the Russian scientific expert community, including (Azarskaya & Pozdeev, 2015; Mironova, 2016; Serebryakova & Kurtaeva, 2020), mostly do not participate in the discussion of a sustainable and secure development with their foreign counterparts. In this research, we will focus on the applicability of foreign approaches to the conditions of the Russian economy. It is rightly noted that the category of “efficiency” itself is quite multifaceted; it reflects various characteristics of the organization. The scientific literature distinguishes the following characteristics (Fedorova et al., 2021): • Financial, because economic data on efficiency is expressed through the universal measure—money, as well as in connection with the impact of efficiency on financial revenues;

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_130

685

686

A. A. Semenov et al.

• Productive, because efficiency reflects the degree of achievement of the result of activity, expressed, in the economic sense, through the achievement of profit as an excess of income over expenditure; • Internal regulation, because the final result of the activity for the purposes of management, external or internal users, and the calculation of indicators characterizing the effectiveness are recorded in certain documents (i.e., reporting, calculations, forecasts, etc.); • Dynamic shifts in development because effectiveness must be investigated and monitored on the parameters of its changes to assess the events, factors, and threats affecting it negatively or positively. Such components as sustainability and security of business activities are added in addition to the above approaches to interpreting performance. It is no coincidence that if a business entity performs its activities effectively, it can, a priori, counteract threats and risks, and vice versa. We should agree with this thesis because it reflects the practical nature of the organization’s conduct. However, there is a question of how to objectively measure efficiency to conclude whether the company works sustainably and safely. In our opinion, there actualizes the problem aspect of choosing analytical tools for assessing the effectiveness, that is, the application of a system of certain indicators. Moreover, the question of developing a threshold value of such indicators is actualized. Therefore, as part of this study, we will try to answer this question, mainly by conducting analytical calculations on a particular enterprise of the agro-industrial complex.

2

Materials and Methods

The problem of ensuring sustainable and safe development of the economic entity as an essential condition for the effective implementation of activities requires a multilateral and systematic analysis using an extensive toolbox of scientific methods. This research used general philosophical methods of knowledge, including analysis, synthesis, deduction, induction, analogy, modeling, and abstraction. Particular attention should be paid to the methods and techniques of economic analysis, particularly the tools of vertical, horizontal, and ratio analysis. During the study of topical aspects of ensuring the effectiveness of the economic entity as an integral factor in sustainable development and economic security, the authors used the works of famous Russian and foreign academic economists in the field of economic and financial security, accounting, reporting, and economic analysis. These works allow systematizing the available positions on the definition of the essence of economic security of the enterprise and the

ways of its provision, selecting key threats and risks of economic activity, and searching for other meaningful interpretations of the positions of the effectiveness of activities.

3

Results

The research results allow us to conclude that an enterprise must have the following characteristics for its sustainable and safe development (Semenov, 2018): • Financial stability—a characteristic of the enterprise, at which the balance of flows and the availability of funds is maintained, allowing the organization to maintain its activities for a period exceeding one year; • Profitability—the organization is capable of generating profits over an indefinitely long period; • Solvency—a characteristic of the state of the enterprise, in which it has enough working capital to cover its urgent obligations; • Liquidity—the ability to turn company assets into money in a short time without significant losses in cash flow; • Financial solvency—no intention to liquidate its activities, low probability of bankruptcy. Guided by this provision, we assess economic security. Let us start with the analysis of liquidity and solvency on the materials of conditional organization LLC “XXX.” To assess this block, it is necessary to compare the obtained values of liquidity and solvency ratios with certain thresholds. The results show the following: • Absolute liquidity ratio for 2018 was 0.320, for 2019— 0.220, and for 2020—0.053; • Interim liquidity ratio for 2018 was 1.121, for 2019— 0.899, and for 2020—0.419; • Current liquidity ratio for 2018 was 1.492, for 2019— 1.028, and for 2020—0.521. A review of liquidity and solvency indicators allows us to highlight the following. The reporting year 2020 shows negative results. None of the liquidity and solvency ratios meet the threshold level, which, in turn, entails several threats and risks of insolvency. Separately, we consider it important to note the behavior of the indicator of absolute liquidity. In 2020, compared with 2019, its value decreased by 0.167 points. This was possible due to a significant reduction in the most liquid assets—cash, cash equivalents, and growth in short-term liabilities. It turns out that the considered LLC “XXX” lacks cash and short-term financial investments to repay short-term liabilities. This circumstance is negative in its content. Simultaneously, the decline in the

Efficiency of the Organization’s Performance as a Factor…

absolute liquidity ratio is observed over the entire observation period, starting from 2018. The value of the interim liquidity for 2019–2020 does not correspond to the threshold level either. Moreover, in 2020, the value of this indicator decreased by another 0.481 points compared to 2019. This means that the company will not settle its short-term liabilities with cash and short-term financial investments, as well as on the condition of collecting debts from debtors and repayment of their liabilities. During the observed period, the current liquidity ratio greatly decreased, which shows the absence of sufficient quantities of current assets of the enterprise to repay short-term debts. It was 1.492 points in 2018 and already 0.521 points in 2020 (minus 0.971 points). Having assessed liquidity and solvency, we will proceed to analytical procedures to assess financial stability, calculate the relevant indicators-coefficients, and compare c thresholds. The results are presented below: • Financial independence (autonomy) ratio for 2018— 0.179, for 2019—0.014, and for 2020—0.004; • Financial stability ratio for 2018—0.784, for 2019— 0.668, and for 2020—0.602; • Funding ratio for 2018—0.217, for 2019—0.014, and for 2020—0.004; • Leverage ratio for 2018—4.600, for 2019—70.842, and for 2020—281.347; • Coefficient of provision with own working capital for 2018—(1.554), for 2019—(1.891), and for 2020— (3.810); • Coefficient of financial agility for 2018—(2.798), for 2019—(46.335), and for 2020—(222.856). The conducted review of financial stability ratios also indicates the presence of increased threats and associated risks of violations of the stability of equity and debt capital, affecting the financial solvency and the ability to effectively carry out financial and economic activities for 2018–2020. Take at least the value of the indicator of financial independence (autonomy). Its behavior during the considered interval does not correspond to the threshold value and has a negative direction. It turns out that if the specific presence of equity capital in the structure of total sources of formation of the property was 0.179 points in 2018, then in 2020—it is already 0.004 points (minus 0.175 points). The key factor is the growth of long-term debt sources. It should be noted that the excessive build-up of debt capital negatively impacts the stability and balance of operations. The relatively optimistic position of the financial stability coefficient, whose values for 2018–2020, despite its negative orientation, corresponding to the threshold level, is partly explained by the increase in long-term borrowings.

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The deficient specific presence of equity in the composition of the sources of formation of the property indicates the value of the coefficient of financing. In 2020, there are 0.004 rubles of own capital per 1 ruble of borrowed funds, which does not comply with the safe values and is less by 0.011 rubles than in 2019. Simultaneously, the coefficient decreased by more points in 2019 than in 2018, namely by 0.203 points. Another negative circumstance, indicating the presence of threats and risks of financial stability, is the lack of the own working capital of the considered business entity, as evidenced by the negative values of the coefficient of own working capital during the entire analyzed period. The negative values only increase from year to year. The company does not have its own funds in circulation. In turn, this circumstance has an extremely negative impact on the index of financial agility, the values of which have an exclusively negative character from year to year. Next, let us consider the profitability indicators, which measure the profitability of the commercial organization. The system of profitability indicators is presented as follows: • Return on assets for 2018—0.02%, for 2019—(10.69%), and for 2020—(5.40%); • Return on equity for 2018—14.66%, for 2019— (109.06%), and for 2020—1756.43%; • Net profitability (loss) of sales for 2018—9.40%, for 2019—(5.71%), and for 2020—16.88%. The results of assessing the profitability of the studied organization also do not cause reason for optimism. The vast majority of indicators for the different periods of the 2018– 2020 study show negative results, rather than simply failing to meet thresholds. For example, in 2020, the profit margin was −5.40%, which is 5.29% higher than in 2019. This was due to net losses in 2019 and 2020. It seems important to note that 2019 was a financially unprofitable year for LLC “XXX.” In 2020, the situation with the thresholds had somewhat improved, but the value of equity capital demonstrated low values. The behavior of the return on sales indicator is very positive, with a value of 16.88% in 2020, which corresponds to the threshold value and is 22.59% higher than in 2019. Assessing the presence or potential for the risk of bankruptcy (financial insolvency) is a prerequisite for identifying threats to the economic security of the organization. In this case, we consider it important to apply several models. We will first consider the model developed by R. S. Sayfullin and G. G. Kadykov. According to this model, the mechanism of assessing the probability of bankruptcy of the company is determined by the following formula:

688

A. A. Semenov et al.

R ¼ 2 × K1 þ 0:1 × K2 þ 0:08 × K3 þ 0:45 × K4 þ K5 where: R—rating value; the name and value of the coefficients K1, K2, K3, K4, and K5 are presented in Table 1. According to the formula described above, with a rating of one, the company is in a satisfactory financial condition. With a rating of less than one, the financial condition is unsatisfactory. The corresponding calculations for “XXX” LLC are shown in Table 1. Calculations by the method of R. S. Sayfullin and G. G. Kadykova show unsatisfactory financial conditions. Moreover, in 2020, it reached another value of -13.589 points (8.841 points less than in 2019). That is, in the reporting year, the risk of a potential bankruptcy has increased by 8.841 points, which is certainly a negative circumstance. The key factor in the decline of the reporting year is the deterioration of the return on equity from − 1.064 points in 2019 to − 6.089 points in 2020. The result was also affected by the decrease in the indicator of the provision of own working capital in 2020 (1.919 points compared with 2019). Let us analyze the risk of potential bankruptcy using the approach of assessing the financial stability of the enterprise based on the approach of V. V. Kovalev. This indicator Table 1 Methodology for assessing the probability of bankruptcy of LLC “XXX” for 2018–2020 according to the model of R. S. Sayfullin and G. G. Kadykov

Indicators

includes inventory turnover (N1), current liquidity (N2), capital structure (N3), return on assets (on profit before tax) (N4), and efficiency (return on sales on profit before tax) (N5). It is calculated according to the following formula: N ¼ 25 × R1 þ 25 × R2 þ 20 × R3 þ 20 × R4 þ 10 × R5 ; where Ri ¼

Ni : Normativevalueofthisindicator

The normative values of the indicators are N1 = 3.0, N2 = 2.0, N3 = 1.0, N4 = 0.3, and N5 = 0.2. According to the explanations to V. V. Kovalev’s formula, if the value of N exceeds 100, it characterizes a good financial situation. If N is less than 100, it means a pre-bankrupt state. The smaller the value, the worse is the financial situation, and the higher is the probability of bankruptcy. In this regard, let us evaluate the financial stability indicator (Table 2). The results of the assessment of the risk of financial insolvency (bankruptcy) according to the methodology of V. V. Kovalev allow us to talk about the presence of the unstable financial condition, accompanied by low solvency,

2018

2019

Deviation (+, −)

2020

2019 from 2018

2020 from 2019

Provision with own current assets (K1)

− 1.554

− 1.891

− 3.810

− 0.337

− 1.919

Current liquidity ratio (K2)

1.492

1.028

0.521

− 0.464

− 0.507

Asset turnover ratio (K3)

0.348

0.251

0.322

− 0.097

+ 0.070

Commercial margin (return on sales) (K4)

0.169

− 0.057

0.094

− 0.226

+ 0.151

Return on equity (K5)

0.000003

− 1.064

− 6.089

− 1.064

− 5.025

− 4.749

− 13.589

− 1.894

− 8.841

Composite index (R)

− 2.854

Source Compiled by the authors

Table 2 Assessment of the comprehensive indicator of the risk of financial insolvency (bankruptcy) of “XXX” LLC for 2018–2020

Indicators

Deviation (+, −)

Years 2018

2019

2020

2019 from 2018

2020 from 2019

Inventory turnover ratio

R1

1.372

1.354

2.911

− 0.017

+ 1.556

Current liquidity ratio

R2

0.746

0.514

0.260

− 0.232

− 0.254

Capital structure coefficient

R3

0.217

0.014

0.004

− 0.203

− 0.011

Return on assets ratio

R4

0.0005

− 0.356

− 0.180

− 0.357

+ 0.176

Efficiency factor

R5

0.003

− 2.126

− 0.759

− 2.129

+ 1.368

Complex index

N

57.337

18.603

68.158

− 38.733

Linguistic variable of the financial situation in the enterprise

X

Unstable

Unstable

Unstable

X

Source Compiled by the authors

+ 49.555 X

Efficiency of the Organization’s Performance as a Factor…

broken liquidity, and increased threats and risks of bankruptcy. This condition is observed for the entire period of 2018–2020. The lowest value of the linguistic variable, indicating the presence of increased threats and risks of bankruptcy, was recorded in 2019. The key factors of the result are the presence of net losses, which had a negative impact on the dynamics of profitability, and, hence, the efficiency ratio. In 2019, its value decreased by 2.129 points compared to 2018. In 2020, some indicators showed positive trends but still fell short of the necessary thresholds. This is especially true for the profitability indicators, which failed to affect the overall value of the linguistic variable positively.

4

Conclusion

This study allows us to emphasize the importance of considering the problems of business efficiency from the perspective of sustainable and safe development. The research algorithm allows us to study the effectiveness of activities using tools of liquidity, solvency, financial stability, profitability, and financial solvency. It is an effective tool for monitoring and diagnosing the effectiveness of activities to ensure sustainability and security of development. It allows us to timely indicate the presence of threats and risks and contribute to developing relevant management decisions to counter them.

References Azarskaya, M., & Pozdeev, V. (2015). Economic security of the enterprise: Accounting and analytical support. Volga State University of Technology. Bragg, S. (2007). Financial analysis. A controller’s guide. Wiley.

689 Brealey, R., Myers, S., & Allen, F. (2020). Principles of corporate finance (13th ed.). Mc Graw Hill. Chun, S., Cho, W., & Subramanyam, R. (2016). Transaction security investments in online marketplaces: An analytical examination of financial liabilities. Decision Support Systems, 92, 91–102. https:// doi.org/10.1016/j.dss.2016.09.015 Damodaran, A. (2012). Investment valuation. Tools and techniques for determining the value of any asset. Wiley. Delas, V., Nosova, E., & Yafinovych, O. (2015). Financial security of enterprises. Procedia Economics and Finance, 27, 248–266. https:// doi.org/10.1016/S2212-5671(15)00998-3 Fedorova, L. P., Serebryakova, T. Y., Semenov, A. A., Nikolaeva, A. V., & Stolyarova, T. V. (2021). The mechanism for ensuring economic security of consumer cooperation organizations. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, O. V. Kaurova, & S. V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics (pp. 815–824). Springer. https:// doi.org/10.1007/978-3-030-57831-2_88 Haar, L., & Haar, N. L. (2019). A financial option perspective on energy security and strategic storage. Energy Strategy Reviews, 25, 65–74. https://doi.org/10.1016/j.esr.2019.100364 Jeitschko, T., Linz, S., Noguera, J., & Semykina, A. (2014). Economic security and democratic capital: Why do some democracies survive and others fail? Journal of Behavioral and Experimental Economics, 50, 13–28. https://doi.org/10.1016/j.socec.2014.01.005 Mironova, O. (2016). The concept of economic security and its development. Innovative Development of the Economy, 6–2(36), 266–269. Otero, A. (2015). An information security control assessment methodology for organizations financial information. International Journal of Accounting Information Systems, 18, 26–45. https://doi.org/10. 1016/j.accinf.2015.06.001 Semenov, A. (2018). Financial and economic security: Theory and practice in chemical industry organizations. LLC “STRING.” Serebryakova, T. Y., & Kurtaeva, O. Y. (2020). Theoretical justification and practice of risk management for economic security of the dealer networks of carmakers. In A. Bogoviz, & Y. Ragulina (Eds.), Industry competitiveness: Digitalization, management, and integration (pp. 201–213). Springer. https://doi.org/10.1007/978-3-03040749-0_24 Tao, H., Bhuiyan, Z., Rahman, A., Wang, G., Wang, T., Ahmed, M., … Li, J. (2019). Economic perspective analysis of protecting big data security and privacy. Future Generation Computer Systems, 98, 660–671.

Controlling as an Accounting and Analytical System of Personnel Management Vera V. Darinskaya , Oleg A. Antonyuk , Tatyana V. Bodrova , Elvira N. Borisova , and Olga S. Ezopova-Sorokina

Abstract

JEL Classification

Rapid and dramatic changes in the use of information technology distinguish the contemporary period from all previous ones. Information systems used to manage an economic entity are becoming more complex and advanced. The problem of using information technologies in management activities acquires new aspects. Nowadays, with the variety of management technologies and a wide choice of automated information systems, it is necessary to find exactly those that will give the most optimal result and promote an increase in the efficiency of the use of resources, including human ones. Controlling is a management technology that allows generating the information necessary for the effective impact and motivation of personnel to achieve the strategic, tactical, and operational objectives of an economic entity. In a situation of uncertainty, instability, and sometimes unpredictability of economic development, an information system that links value-based indicators at all levels of planning becomes extremely demanding. The unique abilities of the corporate employees are the key to successfully overcoming the crisis-like phenomena, an indisputable competitive advantage. The controlling-based accounting and analytical system focused on the long-term analysis and forecasting of the economic situation allows for achieving significant results in personnel management.

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Keywords

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Personnel management Management by exception Controlling Accounting and analytical system

V. V. Darinskaya (&) . T. V. Bodrova . E. N. Borisova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. A. Antonyuk . O. S. Ezopova-Sorokina The Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia

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1

Introduction

The period of formation and development of the controlling system includes more than one decade. Despite the fact that from the point of view of the history of science this phenomenon is quite young, the use of control is characterized by significant results, in particular, by its focus on financial results, the ability to manage profits, and the systemic impact on the costs and expenses of an economic entity. In Russian enterprises, the main difficulty lies in the involvement of the workforce in the process of implementing and using controlling. Some bias in the consciousness of the personnel can turn controlling into another “lifeless” system of plans and reports. Simultaneously, effective personnel management can also be established in this system on all planning horizons (Andronova & Pechatnova, 2006). When defining strategic objectives in the controlling system, it is impossible to consider them separately because they constantly affect each other and change, influenced by internal and external factors. The employees of the company play a key role in achieving these goals. Therefore, measures, actions, and performance indicators of structural units and individual employees at different stages and planning horizons should be determined and included in the overall system (Ansoff, 1989). For example, it is impossible to achieve the set objectives while improving business processes without competent personnel motivation in the chosen direction. Relationships with counterparties are built by people. Knowing their needs and opportunities to satisfy, influence, or reorient these needs could help achieve the best results in positioning a company in the market. Often, in terms of achieving results, insufficient attention is paid to employees of the financial (accounting) service, believing

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_131

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that little depends on them in the work of an economic entity, limiting their activities to accounting, reporting, and calculating. This is an initially incorrect setting because tracking the dynamics of processes, the slightest positive or negative trends, expressed in monetary terms, will be noticed by these employees. The development of a system of motivation for personnel of the financial (accounting) service should be given the closest attention, linking their performance indicators to the results of the company’s work. As a result, the employees of the company are systemically important in the controlling of an economic entity; without the consideration of this influence, the introduction and use of any of the most advanced management technologies will not be successful. Approximate strategic objectives of an economic entity and their correlation are presented in the figure available at https://figshare.com/ with the identifier https://figshare.com/ s/1e1722cce719c64e0fea.

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Methodology

Controlling as an accounting and analytical system of personnel management involved the study of correlations arising in the workforce during the implementation and use of this management technology. Information aimed at determining and forming indicators that characterize the quantitative and qualitative aspects of the effectiveness of the company’s employees by structural divisions and the company as a whole, as well as by its individual employees, was simultaneously collected and summarized. In terms of theory, the research materials include the publications of Russian and foreign authors devoted to controlling personnel costs (Degaltseva & Tonchu, 2013). Empirical data were obtained as part of a study of the activities of companies producing electrical equipment in the Russian Federation. The consideration of the problems of personnel controlling was based on the following techniques and methods of reality cognition: • Monitoring the activities of an economic entity in terms of personnel management and the use of advanced management technologies in this process; • Analysis and synthesis of information obtained from a detailed examination of individual elements of the personnel management system and its information support; • Comparison and generalization of data obtained from manufacturing companies of different forms of ownership and scale of activity; • A graphical method for visualizing economic models and an extrapolation method to identify sustainable trends and transfer them to the long-term perspective.

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Results

The system of controlling at the production enterprise currently assumes the presence of such components as quality management, risk management, and the implementation of the planning process at the operational, tactical, and strategic levels (Kakovkina, 2016). Meanwhile, as an essential element of the system, personnel controlling, based on the accounting and information processing technologies used by an economic entity, involves the use of tools that ensure the growth of labor efficiency, increase the interest of personnel in the results of their work, and improve employee motivation. Personnel planning and control are the basis of controlling, which cannot be considered in isolation from the accounting and analysis of the information received, without close interrelation. The indicators of the personnel management program in the controlling system are presented in the figure developed by the authors and available at https://figshare.com/ with the identifier https://figshare.com/s/e8eb5fdfb5f5a804e576. The personnel management program can have a variety of names for different economic entities. Its elements can often be found in such local documents as personnel policy or various provisions on staffing, structural divisions, incentives for employees, etc. However, these documents are fragmented and do not give a unified idea about the actions aimed at personnel management in the future (Kaplan & Norton, 2006). As already noted, in personnel controlling, there are several planning horizons. Changes in the indicators of one level affect the indicators of another. It is necessary to consider (introduce) additional conditions when conducting constant personnel monitoring. It is worth paying attention to the sequence of formation of indicators so that they can be quickly adapted to the changing conditions of the internal and external environment. The study contributed to the development of a program for the implementation and use of personnel controlling. At the initial stage, the chosen development strategy is being worked out again (Khan, 1997). Its most common variations are as follows: • Market leader in electrical engineering, which is achieved by the use of innovative developments in releasing products; • “Following the market leader,” that is, copying the technical solutions of the market leader, in the absence of the own innovative developments; • Occupying a certain market niche by producing products with lower consumer qualities but lower prices compared to competitors.

Controlling as an Accounting and Analytical System of Personnel Management

Next, areas are selected in which certain cost management methods should be applied when implementing personnel controlling. Then, a group of responsible persons is created, whose main purpose is to assess the state of the enterprise, develop an appropriate management system, and implement the system at the enterprise. This group can also include people of administrative and managerial personnel who can control this amount of work and make decisions for the competent adjustment of subsequent actions. The next step is the collection and preliminary analysis of financial and technical documentation. This is done to conduct a financial analysis of the enterprise, the level of its profitability, and “link” indicators of personnel controlling to the strategic and operational objectives of the enterprise. If the enterprise does not have any separate financial divisions, it can attract audit and other consulting structures from outside. At this stage, it is possible to conduct a preliminary analysis of the level of costs for the production and sale of products at the enterprise, which allows a preliminary analysis of the factors affecting the magnitude and structure of costs and staff motivation. It is necessary to pay special attention to the organizational and economic structure of the enterprise, to the determination of the relationship and interaction between structural units, their intensity, and tension, and to the isolation of possible extra elements in the process of solving the tasks. After that, the analysis of the collected information is carried out, the data on the level and structure of personnel costs are interpreted, and patterns are identified. Then a personnel controlling model is proposed, which can be discussed and criticized by responsible persons or administrative and managerial personnel in order to improve it. The tools for monitoring and managing costs are determined, which can be further adjusted depending on their effectiveness. A separate stage will be the preparation of a reference and methodological base for company personnel, as well as the introduction of the necessary components of software and hardware to ensure planning, control, accounting, and analysis of information (Vinichenko et al., 2016). A separate area of work is the introduction of amendments to local regulations, development or adjustment of instructions for personnel, forms of budgets and reporting documentation (including forms, forms of reports, budgets, etc.), and the determination of the circle of responsible persons involved in the controlling of personnel, their powers, and responsibilities. It is reckless to hope for an error-free, fast, and correct operation of the implemented system right away because it will take time to adapt. In the future, it is necessary to constantly carry out diagnostics of the personnel controlling system to improve and modernize it.

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From experience, it can be said that at this particular stage, most enterprises prepare local regulations on the implementation of a personnel controlling system. It is mandatory to provide some service support and ensure adjustments in the work and the subsequent revision because it must be remembered that the damage can be significant, up to violations in the activities of the enterprise as a whole. Personnel controlling can be safely called the controlling of human capital—the main competitive advantage in today’s conditions of the functioning of an economic entity. Therefore, it is important to develop and implement specific programs for personnel management, for example: • • • •

Advanced training; Development of human resources and its management; Activities for interaction with the labor market; Moral and material incentives, personnel support, etc.

It is not advisable to develop and present these programs as a set of measures and activities. It is more acceptable to develop a system of indicators for continuous monitoring, considering the proposed classification. Based on the existing integral performance indicators of the company’s personnel, the own performance indicators can be developed, considering the existing specifics. Integral indicators are needed primarily for administrative and managerial personnel. Tracking their dynamics will allow taking timely measures to increase labor productivity, reduce and optimize costs, manage costs, etc. An example of such performance indicators for companies manufacturing electrical equipment includes maintaining profitability (costs for relevant advanced training programs, rubles/person), improving the quality of personnel (time spent on advanced training, hour/person), improving the structure of personnel (the ratio of administrativemanagerial and fabrication personnel, the ratio of the management to the planned (%), etc.), improving the efficiency of personnel, etc. The concept of personnel controlling in the activities of companies producing electrical equipment is based on the fact that a person in the company is considered one of the types of organizational resources. The emphasis in the company’s management is laid on material and technical factors. Thus, the actions of the personnel must be subjected to their influence. The basis of the concept is the regulation of labor in a hierarchical management system and the stimulation of the growth of labor productivity. Traditional methods and ways (job descriptions, an employment contract with the establishment of powers, responsibilities, and wages) or advanced management technologies using new information technologies can be applied to influence personnel.

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The concept of controlling human resources is based on a strategic approach, the goal of which is to combine the available human resources, their qualifications, and potential with the strategy and goals of the organization (Vinichenko et al., 2016). The personnel is considered as a set of professionally developing people. The organization considers the increase in personnel costs (especially personnel development) as an investment and forms socially responsible relations with personnel aimed at harmonizing labor to increase its quality and the quality of a person’s life. The main goal of personnel controlling within this concept is to increase the competitiveness of the personnel management system.

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Conclusion

The introduction of personnel controlling will improve the efficiency and effectiveness of production and economic activities through the rational use of personnel costs. Moreover, human resources are a unique source of an economic entity’s own funds. They include a combination of abilities and capabilities of each representative of the work collective with unique and exceptional intellectual, professional, moral, and labor qualities. A reasonable combination of these qualities, with a focus on results based on advanced

management technologies and accounting and analytical systems, will allow surviving in conditions of uncertainty and instability and will become a competitive advantage, a tool in achieving the goals of an economic entity on all planning horizons.

References Andronova, A. N., & Pechatnova, E. D. (2006). Operative controlling. Business and Service. Ansoff, I. (1989). Strategic management (Transl. from English). Economics. (Original work published 1979). Degaltseva, Zh. V., & Tonchu, E. A. (2013). Personnel cost management in the agribusiness industry. Journal of Economics and Entrepreneurship, 3(3), 209–212. Kakovkina, T. V. (2016). Audit-controlling. Theoretical and methodological foundations. Unity-Dana. Kaplan, R. S., Norton, D. P. (2006). The balanced scorecard: Translating strategy into action. (M. Pavlov Transl. from English.). Olimp-Business. (Original work published 1996). Khan, D. (1997). Planning and control: The concept of controlling (Transl. from English). Finance and Statistics. Vinichenko, M. V., Kirillov, A. V., Frolova, E. V., Kaurova, O. V., & Makushkin, S. A. (2016). Monitoring of working conditions and the nature of their influence on health of students and academic staff. International Journal of Environmental and Science Education, 11 (11), 4564–4577. Retrieved from http://www.ijese.net/makale_ indir/IJESE_641_article_57a778863f6c8.pdf. Accessed 18 February 2022.

Foreign Language Training of Specialists in the Economic Sphere as a Factor of Sustainable Development: Historical and Pedagogical Aspect Anastasiia A. Kolobkova , Olga Yu. Sherbakova , Nataliia Yu. Anashkina , Tatiana N. Korotenko , and Olga I. Lukina

Abstract

Keywords

The article raises the issue of the role of education in the humanities and, in particular, foreign language education in the implementation of intercultural interaction as a manifestation of the social component of sustainable development. The importance of foreign-language education is being recognized by future specialists in order to form a linguistic picture of the world of the language to be studied as a basis for understanding foreign partners and for successful intercultural dialogue. The importance of continuity in education, which is realized in the progressive development of the content, methods and means of education, is emphasized. The problem of choosing teaching methods and educational literature as a means of teaching specialists who learn foreign languages for pragmatic purposes during the formation of foreign language education in Russia in the eighteenth to nineteenth centuries is retrospectively considered. The characteristics of the first Russian textbooks and dictionaries in French and English are given.

Sustainable development Continuity in education Foreign language education Educational literature Teaching methodology Intercultural dialogue

A. A. Kolobkova (&) . O. Yu. Sherbakova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. Yu. Sherbakova e-mail: [email protected] N. Yu. Anashkina . T. N. Korotenko Ural State University of Railway Transport, Ekaterinburg, Russia e-mail: [email protected] T. N. Korotenko e-mail: [email protected] O. I. Lukina Ural State Pedagogical University, Ekaterinburg, Russia e-mail: [email protected]

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JEL Classification

I21

1

Introduction

Over the past decades, sustainable development has been recognized by professional communities as a vital trend (Anashkina, 2018, p. 143), which implies an integrated approach and requires special competencies from interacting subjects, including communicative ones. Sustainable development is a progress that determines both the present and the future, that is, realizing the needs of the time without detrimental consequences for future generations, when the economic, environmental, social are considered as integral components of any economic activity (Barinova & Zemtsov, 2020, p. 41). The social component of sustainable development is expressed in many aspects, and one of its characteristics is continuity. In the educational environment, continuity, being one of the basic didactic principles (Khlybova, 2019), is considered as a connection between the stages of education (preschool, general education, secondary vocational, higher, additional), and in the historical and pedagogical aspect, also as a connection between the stages of “development of education while maintaining certain elements that are prominently manifested in a new quality” (Bykasova, 2018, p. 13). Continuity is traditionally manifested in the subject-oriented nature of both the educational process itself and the didactic tools used, along with other properties. To a greater extent, this applies to humanitarian education, which

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_132

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forms the prognostic abilities of the individual necessary for the implementation of sustainable development (Yarotskaya, 2018, p. 84) and communicative competences. In particular, when studying foreign languages, along with mastering knowledge about the structure of the language, its lexical and grammatical system, acquiring speech skills and activating communicative competencies, students receive ideas about the mentality of another nation, about the features of verbal and non-verbal behavior of native speakers of the language being studied, about a different linguistic picture of the world (Gofman, 2021; Pesina et al., 2019; Tareva, 2019), about the goals and objectives of intercultural dialogue in situations of professional communication. The foundations of one of the characteristic features of Russian secular education from the period of its formation, from the time of Peter the Great, was its professional orientation as an intrinsic value. The book containing notes about Russia by the French diplomat Baron de Barant, who visited all state educational institutions in St. Petersburg, notes: “There was a special education, but there was no public education. … Specialized schools in Russia were wonderful” (Notes sur la Russie, 1875, p. 75). From the first decades of the eighteenth century, future specialists were brought up on the basis of pragmatism and utilitarianism, and their success was evaluated from the point of view of the state benefit. Schools that arose more than three hundred years ago trained specialists in various fields of the economy and public service. These schools, which educated future engineers, doctors, military and naval officers, mining engineers, laid the foundation for the glorious traditions of such education, when young people from a young age feel firsthand what a “professional community” is, what its duty and mission are, what its goals and objectives are, what has been preserved to this day, and today is the basis for the sustainable development of the country’s economy. In the era of Peter’s changes, an important goal of the state in the field of education was to train specialists with knowledge of the exact sciences, which was required to eliminate the backlog in the development of the technical equipment of the country’s economy. Education of young people in Europe did not always justify itself, because many of them did not return to their homeland for various reasons (because of marriage or accidents, or for other reasons), or they came without learning anything. In this regard, the issue of organizing the training of specialists in Russia was quite important. Since 1698, schools of mathematical and navigational sciences (later the Marine Academy), artillery, engineering, mining, digital, garrison, medical and surgical schools have been opened in Russia for the army, navy and civil service. Several dozen schools, mandatory for children of civil servants to attend, with the exception of the children of landowners who defended the border, have been created in different regions of Russia by 1722.

A. A. Kolobkova et al.

Specialists had to speak modern European languages to solve diplomatic issues, to conduct commercial activities with foreigners and research in the field of technology and science. In educational institutions, German or Dutch, or French, or another foreign language was taught as a compulsory discipline along with Latin. Invited foreign teachers often did not speak Russian, and the training was conducted in Latin. Businessmen, both Russians and foreigners (Rzheutsky, 2019, p. 681), mastered languages on their own in situations of direct communication and immersion in a foreign language environment to the extent that was necessary for their communicative needs. In the course of this historical and pedagogical research, issues related to the continuity in teaching foreign languages to specialists in the field of economics in Russia are considered, namely: What methods were used during the formation of secular foreign language education? When did the first textbooks in French and English, which became the basis for the foreign language education of Russian specialists, appear? How did these educational publications influence the formation of ideas about the language picture of the native speakers of the language being studied?

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Methodology

The sources considered in this paper include English and French textbooks published in Russia in the eighteenth to nineteenth centuries, used in educational institutions and at home, as well as historical, pedagogical, cultural and philosophical studies on this topic. The study was conducted using the method of historical analysis and generalization of the results of work with sources.

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Results

The seventeenth century in Europe and the eighteenth century in Russia became the period of formation of foreign language education in schools, at fairs and at home, the reason for which was the ever closer interethnic contacts of the modern era, including military conflicts (Mikhina & Potrikeyeva, 2018, p. 115), the rapid development of the socio-economic, scientific, and technical spheres, the growth of trade and more and more frequent international interaction, which, in turn, leads to vocabulary borrowing, to the enrichment of the lexical composition of the language. The Russian Age of Enlightenment is characterized by a special public interest in lexicographic publications, caused by the attitude to the dictionary as to a treasury. Bilingual and multilingual dictionaries are published (Mihajlova,

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2020), which, one might say, even became a need at that time, because it was necessary to recognize and comprehend a large layer of borrowings from French, German, Polish, which became the result of close business contacts (Kolobkova, 2020, p. 4). So, the Lexicon of S. Volchkov contained scientific and technical terminology, proper names and geographical names (Kolobkova, 2020, p. 23). “Complete French-Russian Dictionary” (Kolobkova, 2020, p. 38) was compiled on the basis of the Lexicon of the French Academy with the addition of technical terms. Among the first textbooks in French, “French and Russian Grammar …” (1730), compiled by the sprachmaster of the Academy of Sciences and Arts in St. Petersburg, intended for French merchants, should be remembered, but Russian merchants could also use it, but in fact it was the first textbook of business communication for Russians. The textbook is interesting because of the way Russian grammatical categories that do not exist in French are described by French language means. Thus, the form of the feminine past tense verb (“I had”, “you had”, “she had”) is explained through constructed (non-existent) forms (“jai eue”, “tu as eue”, “elle a eue”),—these erroneous forms with the agreement of the participle are needed only to explain and understand the meaning of the morpheme in Russian (Vlasov & Moskovkin, 2021, p. 402). If French and German were familiar to representatives of the upper classes, one might say, from childhood, then English was not so popular. V.P. Vompersky noted in his works that in the period from 1700 to 1802 in Russia, 61 manuals were printed in German, 55 in French and only 6 in English. English in Russia in the eighteenth century was needed mainly in the navy and in shipbuilding. The only state educational institution of that time that trained personnel for the navy was the Naval Cadet Corps, where English was taught on a permanent basis. It was the teachers of this corps who created the first domestic English textbooks (Sidorova, 2016). It is believed that the first English textbook for Russians was the grammar of M. Permsky “Practical English Grammar, translated from English into Russian by the translator Mikhail Permsky of the Naval Gentry Cadet Corps” (1766). In 1765, M. Permsky became a teacher in the Naval Cadet Corps in St. Petersburg. In addition, he was a translator and translated quite a lot from English into Russian. His textbook contained several theoretical chapters translated from a well-known 18th-century English textbook by the English clergyman Thomas Dilworth. Zhdanov, appointed as an English teacher in the Naval Cadet Corps, translated into Russian the next edition of T. Dilworth’s textbook and published two manuals on the English language—in 1772 and 1776. He is also considered the author of the first English-Russian dictionary (3000

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words), which was created according to the thematic principle and was in the second section of the manual on the English language in 1772. The fate of another outstanding Russian scientist P.I. Suvorov, who received a Master of Science degree from the University of Oxford, which was considered an extraordinary honor for foreigners, is closely connected with the Naval Cadet Corps and its history. His textbook “English and Russian conversations, divided into 130 lessons, for the use of youth and all beginners to learn this language” was published in Nikolaev in 1802). A well-known publisher, teacher, translator and publicist of the late eighteenth–early nineteenth centuries Vasily Stepanovich Kryazhev, a teacher of Russian, German, French, wrote the “Guide to the English Language” (1791), under his leadership an anthology of English writers was published (1792), as well as “English Grammar …” (1795) for pupils in a boarding school at Moscow University, “Short French Grammar” (1808), textbook on oral speech “New French and Russian Conversations” (1812), “Short German Grammar” (1818) were published. Absolutely all Russian authors of English language textbooks of the eighteenth to nineteenth centuries note the difficulty of pronouncing English words. Everyone tries to come up with certain ways of correct pronunciation, draws analogies with Russian words and individual sounds, however, contemporaries, not without reason, noted that only those who visited England or communicated directly with the British could achieve the correct English pronunciation. An interesting fact is that V. S. Kryazhev explained the pronunciation of English sounds based on the students’ knowledge of French and Latin in his manuals and textbooks, i.e., it was initially assumed that students knew these languages, which could not be said about English (Sidorova, 2016, p. 101). Jacob Langen’s textbook “Practical Lessons of the English Language, with a Grammar Review”, published in 1847 in St. Petersburg, was compiled on the basis of the Robertson system—a variant of the translation method. Robertson suggested placing a foreign text on the left side of the page, and its translation on the right side, using the ideas of Hamilton and Jacotot, students were required to memorize the text in 2 languages through repeated repetition and obligatory pronunciation of words aloud, while closing one part of the page, then the other part. In the context of the studied materials on this topic, we can say with all confidence that in the nineteenth century the study of foreign languages in Russia became purposeful, conscious for students and mandatory for the curricula of various schools, institutes and universities, the state realized the need for specialists who speak foreign languages, and in every possible way encouraged and supported the development of the methods of their teaching.

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Discussion

The problem of choosing methods for teaching foreign languages began to be actively discussed among teachers already in the nineteenth century, books summarizing the pedagogical experience of their authors became confirmation of this. Thus, a supporter of foreign language learning through reading, James Hamilton (1769–1831) defended the expediency of interlinear translation without a long mastery of grammar in his work “Comparative practical study of a foreign language based on one gradual reading” (1864), in his opinion, the basis of teaching a foreign language should be a book familiar in content. In the nineteenth century, such a study of a foreign language was “a useful and perhaps the most convenient auxiliary tool for the speedy acquisition of materials for familiarization with foreign languages not only for young people, but even for adults” (Comparative practical study of a foreign language based on one gradual reading, 1864, p. 3). In accordance with Hamilton’s method, the students had to repeat the translated text many times. This technique had many opponents, but there were also supporters, including in Russia. Teaching a foreign language according to the Hamilton method consisted of several courses. In the first year, the students studied the Gospel, in the second year, they read anthologies, which contained rather simple articles. It was assumed that during this period of learning, students learn new lexis and expand their vocabulary. In the third year, there was a transition to the study of grammar. At the fourth stage, in addition to studying grammar and expanding vocabulary, translation from the native language into a foreign one was introduced. Around the same period of time, a similar way of learning a foreign language, the author of which was the French lawyer and teacher, who became a professor of mathematics and humanities, who served as director of the Polytechnic School, and later became a professor of French language and literature, Jean-Joseph Jacotot, appeared (1770–1840). The main idea of his methodology was reading, translating and meaningful memorization of individual sentences, as well as parts of a foreign text studied in detail and discussed with the teacher. Jacotot attached great importance to the development of memory and considered developed memory to be one of the indicators of successful learning of a foreign language. In his opinion, a student who does not have a good memory is “a bottomless barrel, no matter how much you pour into it, the result is zero” (Nedler, 1894, p. 31). Russian teachers who taught foreign languages in the Gatchina Orphanage noted: “Jacotot’s method … proved that children developed mentally by this method and learned the language faster and more successfully than by the old method” (Khlybova, 2019, p. 34). However, the disadvantages of this

method were also noted, in particular, it was said about the absence of “educational elements, since the language was acquired unconsciously, and mental activity was assigned an insignificant role, fragmentary knowledge” (Vlasov & Moskovkin, 2021, p. 109). At the same time, practicing teachers said that these shortcomings were redeemed by certain advantages, which consisted precisely in the fact that this method gave significant practical results. However, it should be noted that foreign teachers, as native speakers of the studied languages, introduced their students to another culture, which later became the basis for intercultural interaction. Educational literature for foreign language education (textbooks, dictionaries, conversations, anthologies) reflected the current level of development of teaching methods, namely the use of the grammar-translation method and its modifications (Mikhina & Potrikeyeva, 2018; Vetchinova, 2018). Undoubtedly, the result of successful learning of foreign languages consisted of a number of undeniable factors, namely, the regularity of classes: for example, in the Naval Cadet Corps, from 4 to 8 foreign language lessons per week were planned; guidance from the teacher (professor, mentor), as well as an integrated approach to the study of various aspects of a foreign language (phonetics, grammar, learning new words, i.e. vocabulary expansion, oral speech practice, reading, translation, etc.),—all this contributed to an increase in the level of foreign language competence of specialists and the development of intercultural dialogue with Europe.

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Conclusion

The role of foreign language learning as a component of humanitarian education in ensuring sustainable development lies in the formation of readiness among specialists in the field of economics for professional communication with foreign colleagues, analyzing and taking into account the diversity of cultures in the process of intercultural interaction, as well as in the development of students’ communicative competencies, the ability to hear and understand another person, represent the language picture of the world of his interlocutor. A retrospective look into the pedagogical past makes it possible to trace the continuity in education, to evaluate the methods of teaching foreign languages from the moment of the formation of foreign language education in Russia to the present day, to understand what remains relevant and important through time, what should be developed on the basis of modern technologies in the new economic conditions considering social and environmental requirements.

Foreign Language Training of Specialists in the Economic Sphere …

References Anashkina, N. Yu. (2018). Indicators of urban transport systems sustainable development. Scientific and Methodological Electronic Journal “Concept”, 2, 143–148. Barinova, V. A., & Zemtsov, S. P. (2020). Inclusive growth and regional sustainability of Russia. Regional Research of Russia, 10 (1), 10–19. Bykasova, L. V. (2018). Continuity in modern pedagogical education. Pedagogy Yesterday, Today, Tomorrow, 1(1), 12–23. Comparative practical study of a foreign language based on one gradual reading (1864). Type. M. Ettinger. 14 p. Gofman, T. V. (2021). The linguistic picture of the world as a way of self-presentation of the people (“fidelity” in the Russian linguistic picture of the world). Picture of the world in the systemic-structural and anthropocentric aspects: the search for common patterns. In Collection of Materials of the IX All-Russian Scientific-Practical Conference, (pp. 22–27). Golicyn, N. S. (1882). About teaching foreign languages in our educational institutions. SPb. : A type. Dr. Khan. 80 p. Khlybova, M. A. (2019). The principle of continuity in the context of lifelong education at a university. Problems of Modern Pedagogical Education, 63–3, 229–231. Kolobkova, A. A. (2020). Educational French-language lexicography in Russia in the 18th century—the first half of the 20th century: monograph (p. 76). National Research. Kuhfuß, W. (2014). Eine Kulturgeschichte des Französischunterrichts in der frühen Neuzeit: Französischlernen am Fürstenhof, auf dem Marktplatz und in der Schule in Deutschland, V&R unipress in Göttingen, 741 p. Mihajlova, I. V. (2020). The history of the development of general and educational lexicography: The specifics of educational lexicography in RFL. Proceedings of the Baltic State Academy of the Fishing Fleet: Philological and Pedagogical Sciences, 2 (52). 96–100.

699 Mikhina, O. V., & Potrikeyeva, E. S. (2018). On the way of the search of new methods in teaching foreign languages (analysis of domestic and foreign experience). Perspectives of Science & Education, 6 (36), 155–163. Nedler, G. P. (1894). About foreign language classes. SPb., 113 p. Notes sur la Russie: 1835–1840 par M. le baron de Barante, …; Revues et mises en ordre par M. le baron de Nervo (1875). Publication Michel Lévy frères, 464 p. Pesina, S. A., Kiva-Khamzina, Yu. L., & Rubanova, N. A. (2019). Formation of the idea of the secondary linguistic and conceptual picture of the world among bachelor students studying a foreign language. Prospects for Science and Education, 1(37), 180–189. Rzheutsky, V. S. (2019). Foreign specialists in Russia in the era of Peter the Great. Biographical dictionary of immigrants from France, Wallonia, Francophone Switzerland and Savoy: 1682–1727. In V.S. Rzheutsky, & D. Yu. Guzevich, with the participation of A. Mezen. M.: Lomonosov, 800 p. Sidorova, O. G. (2016). The first Russian textbooks of the English language (p. 172). Publishing House of the Ural University. Tareva, E. G. (2019). Culture as a key concept of language teaching methodology. West-East, 1(1), 91–97. Vetchinova, M. N. (2018). Translation as a method of teaching a foreign language (from the history of translation methods in the 19th century). Bulletin of Moscow University. Series 22. Translation Theory, 3, 104–10. Vlasov, S. V., & Moskovkin, L. V. (2021). The first Russian textbook of Russian as a foreign language: Linguistic and methodological features. Problems of teaching philological disciplines in new educational conditions. In Materials of Reports and Messages of the XXVI International Scientific and Methodological Conference in Memory of Nadezhda Tikhonovna Svidinskaya (pp. 399–404), Saint Petersburg. Yarotskaya, L. V. (2018). Education and development: dialectics of the formation of a professional personality in the 21st century. Philological Sciences at MGIMO, 13, 83–89.

Entrepreneurship Development as the Basis for a Competitive Environment After the Pandemic Olga A. Repushevskaya

Abstract

Keywords

The relevance of the research topic is argued by the fact that the COVID-19 pandemic has had a negative impact on the economic sector of the Russian and global economy. Not all organizations survived the quarantine measures, which were mandatory for all participants in economic relations: many enterprises were closed, which led to a sharp increase in the proportion of the unemployed. The consequences of this crisis, which is currently in recession, are still observed. Thus, the issue of making managerial decisions in this crisis situation is relevant. The main destructive consequences of the COVID-19 pandemic felt by Russian enterprises include a decrease in revenue, the risk of infection of personnel, disruptions in supply chains, a lack of crisis management, and uncertainty in the future. In such difficult conditions, it is possible to stimulate economic growth through the development of competition. The latter implies the integration and application of advanced technologies in the production and management process, increasing the qualitative and quantitative composition of products, balancing production methods (considering the degree of their effectiveness), and improving the client’s awareness of products and services, as well as increasing characteristics and advantages of products and services. Summarizing the studied theoretical and empirical material, the author concludes that it is important and necessary for entrepreneurs to develop the ability to respond to threats quickly. New market niches formed, including under the influence of the COVID-19 pandemic, open up wide opportunities for the use of new products and provide improvements in technological processes.

Entrepreneurship Digitalization Startup model Financial crisis Pandemic

O. A. Repushevskaya (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected]

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Introduction

1.1 The COVID-19 Pandemic Has Had a Negative Impact on All Sectors of Human Life and the Economic Sector of the National and World Economy Not all organizations survived the quarantine measures, which were mandatory for all participants in economic relations: many enterprises were closed, which led to a sharp increase in the proportion of the unemployed. In this regard, the Russian Union of Industrialists and Entrepreneurs (RSPP) conducted a sociological study to identify the top problems faced by entrepreneurs in these difficult conditions. About 150 representatives of the top management of the largest companies from different market segments were involved in the RSPP research (Orlova et al., 2020). According to the results of the analytical work, the most global and massive problems were a sharp decline in demand and the availability of raw materials and components. The analysis of the statistical data allowed us to conclude that the COVID-19 pandemic had a negative impact on the vast majority of respondents (regardless of the company’s annual turnover and the field of business) (Rodionov et al., 2021). The hardest hit was experienced by the classic companies, which were mostly unable to benefit from the

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_133

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restrictive measures caused by the COVID-19 pandemic: their activities were conducted in an environment of falling foreign trade-economic relations and a decline in domestic demand. Overall, nearly a seventh of respondents (13%) reported an average drop in revenue. In terms of doing business, the COVID-19 pandemic had a positive effect on the companies that quickly adapted to the conditions of quarantine measures, as well as the self-isolation of the vast majority of the country’s citizens. Such companies have met the demand for basic necessities and personal protective equipment, which is mandatory in all public places in accordance with the legislation of many regions (Ministry of Economic Development of the Russian Federation, 2020).

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Methods

The theoretical and methodological basis of the research includes the established scientific methods, works of Russian scientists, and recommendations of research institutions on the discussed topic. Innovative approaches were applied in forecasting development areas. Statistical materials from the Ministry of Agriculture of the Russian Federation and other open publications were used in preparing this research.

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Results

The study to assess the economic potential of the sustainable business model will focus on the proximity to the government. It is believed that universal marketplaces that can aggregate necessary goods, works, and services will become firmly established. Many companies may not survive the crisis, but there will be those who occupy the vacated niche (Nabiyeva, 2021).

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Discussion

The COVID-19 pandemic negatively affected the economic sector of the Russian and global economy. Not all organizations survived the quarantine measures, which were mandatory for all participants in economic relations: many enterprises were closed, which led to a sharp increase in the proportion of the unemployed. The consequences of this crisis, which is currently in recession, are still observed. The COVID-19 pandemic had a strong impact on the financial performance of pharmaceutical companies and logistics operators. Revenues of most companies declined by 16%, with one-third of respondents reporting revenue growth of more than 50% (Bessonova et al., 2021). This resulted from the fact that pharmaceutical companies were

beneficiaries due to the increased demand for drugs included in the protocol for preventing and treating COVID-19. Among the logistics operators, the greatest benefit was obtained by the companies that “bet” on the provision of services for online retail. Among other things, the COVID-19 pandemic has helped begin to reshape businesses toward digitalization. Digitalization was one of the main business trends even before COVID-19. According to McKinsey & Company, the COVID-19 pandemic accelerated digitalization by several years (Bessonova et al., 2018). Since the quarantine gave a strong impetus to the development of online services, there is no reason to expect a rollback to offline at this point (Ryabova et al., 2020). Speaking of digitalization, it is impossible not to mention the mass transition to remote work, which, although forced, turned out to be very effective. This trend will not reverse once restrictions are lifted. Thus, potentially promising and beneficial for employees and employers is the development of information technology and its use for employees working remotely, including means of communication and remote-control tools. For example, the active development of the Zoom service in the process of global distance learning and the work of entrepreneurs is a loud and clear success story (Sekerin et al., 2019). Another area related to remote work is cybersecurity. Currently, the perimeter of the corporate network runs through employees’ home devices. This solution is an innovation that requires innovative solutions. The COVID-19 pandemic has touched e-commerce and online marketing. This period was extremely effective for running an online business. For example, during the quarantine restrictions caused by the COVID-19 pandemic, almost a third of Russian enterprises (30%) enabled online payment for products. The growth of e-commerce increases the demand for promotion on the network and, consequently, gets relevance in today’s conditions of the profession of an Internet marketer. Telemedicine is another area that, even before the restrictive measures caused by the COVID-19 pandemic, was predicted to have a future. The COVID-19 pandemic has artificially accelerated its growth and legislative regulation. Counseling for illnesses that are not life-threatening has become possible in an online format. Thus, there is a real demand for the further development of telemedicine, including the means of communication in the patient-doctor system and sensors and gadgets to help monitor the condition of the client (Shamin et al., 2020). As for the sector of financial technology, it should be noted that Russia is among the leaders in the digitalization of banking services. Thus, with the introduction of quarantine measures and, consequently, restrictions on movement, the

Entrepreneurship Development as the Basis for a Competitive Environment After the Pandemic

number of users of mobile applications of banks and the number of citizens receiving loans online have increased sharply. Consequently, the limitations caused by the COVID-19 pandemic have been a strong impetus for the development of digitalization (Veselovsky et al., 2016). Due to the fact that the COVID-19 pandemic had a negative impact on the economic sector of the Russian and world economy, Tinkoff-business conducted a sociological study to determine the top problems arising in these difficult conditions for business people. For their study, Tinkoff-Business involved about 7000 Russian entrepreneurs, that is, small and medium-sized businesses from different market segments. The results of the research demonstrated that the following measures were taken to overcome the negative effects of quarantine restrictions (Shakhova et al., 2019): • • • • • •

8% started selling goods on marketplaces; 9% opened additional sales outlets; 16% have closed several sales outlets; 19% changed the field of business; 23% reduced the staff; 46% went online.

In Q1 2021, 37% and 23% of businesses earned primarily (exclusively) through offline outlets and online channels, respectively. Almost half of the respondents (40%) worked directly with companies and received the money in a current account. In 2020 and 2021, more than half of enterprises experienced a reduction in turnover. One-fifth of the respondents (20%) experienced an increase in turnover in 2020. The same number of respondents noted that significant changes did not affect them. By April 2021, business was gradually recovering. According to statistics, the best situation is observed in passenger transportation—the turnover of companies in Q1 2021 was almost four times higher than in Q1 2019. In the insurance sector, turnover increased 2.1 times, and in the financial sector—by 3.7 times. Companies in education, beauty, and electronics retailing have doubled their turnover. The growth rates of cafes are somewhat lower. According to the Unified Register of Small and Medium Businesses, the number of companies decreased by 246,800 over the year compared to 2019. The number of individual entrepreneurs decreased by 115.9 thousand, legal entities— by nearly 131 thousand. In Q1 2021, the growth of new businesses is observed—1.4% more than in 2020. According to Russian individual entrepreneurs, doing business is currently a safer activity than before. In 2020, 22% of medium-sized and 24% of small businesses thought there were few risks to doing business. A year earlier, in 2019, the opinion of entrepreneurs was 6% and 9%, respectively.

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In surveys of 2020 and 2021, entrepreneurs highlight such risks to business development as an increase in the tax burden, the impact of sanctions, and the attention to business by government agencies (Repushevskaya et al., 2021). In 2021, this list was supplemented by the restrictions caused by the COVID-19 pandemic. Compared to last year, the number of inspections by government agencies has increased. In 2021, 18% of small and 28% of medium-sized businesses faced quarterly inspections compared to 8% in 2020. The number of annual inspections increased. Thus, according to respondents, small and medium-sized businesses in Russia have more problems with tax legislation. In 2020 and 2021, 53% and 62% of respondents disagreed with tax legislation. Many noted that the main threat is “the possibility of arbitrary interpretation of legislative norms by regulatory authorities and gaps in legislation” (Khoruzhy et al., 2018). In 2020, 11% of respondents claimed that doing business was difficult because of criminal laws. In 2021, only 1% of respondents held this view. Overall, businesses noted a decrease in problems with laws: in 2021, 56% of respondents said these kinds of problems did not affect them (an increase of 46% from the year before). Summarizing the above, we can conclude that the current conditions caused by the COVID-19 pandemic have had a negative impact on the economic sector of the Russian and global economy. The consequences of this crisis, which is currently in recession, are still observed. Thus, the issue of management decisions in this crisis situation is relevant because the conditions of our time necessitate the synthesis and integration of resources to improve the efficiency of business activities. Economic forecasting, managerial intuition, and farsightedness in such an unpredictable environment cannot be clear and objective (Shakhova et al., 2019).

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Conclusion

In this regard, to conduct the most efficient business, companies are recommended to launch programs aimed at cooperation. It is also recommended to stimulate economic growth, which, in such difficult conditions, is possible through the development of competition. The latter implies the integration and application of advanced technologies in the production and management process, increasing the qualitative and quantitative composition of products, balancing production methods (considering their degree of effectiveness), as well as increasing customer awareness of the products and services and their characteristics and benefits (Bank & Suglobov, 2014). The development of

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anti-crisis plans and backup strategies created by market needs will have a positive impact. Thus, it is legitimate to conclude that the model of sustainable business will focus on proximity to the state. It is believed that universal marketplaces that can aggregate necessary goods, works, and services will become firmly established. Many companies may not survive the crisis, but there will be those who occupy the vacated niche (Nabiyeva, 2021).

References Bank, S. V., & Suglobov, A. E. (2014). Tactical and strategic modelling of the corporate financial performance indexes. World Applied Sciences Journal, 29(5), 683–688. Bessonova, E. A., Skotnikova, N. S., Golovin, A. A., & Battalov, R. M. (2021). Cooperation as a way to increase the efficiency of innovative development. In A.V. Bogoviz, A.E. Suglobov, A.N. Maloletko, O.V. Kaurova, & S.V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics (pp. 99–107). Springer. https://doi.org/10.1007/978-3-030-578312_11. Bessonova, E., Alekseeva, V., & Milgunova, I. (2018). Development of the assessing method of investment attractiveness for the regional socio-economic system. In Vision 2020: Sustainable economic development and application of innovation management from regional expansion to global growth: Proceedings of the IBIMA 2018: 32nd International Business Information Management Association Conference (pp. 5864–5876). Seville, Spain. Khoruzhy, L. I., Katkov, Yu. N., Khoruzhiy, V. I., Dzhikiya, K. A., & Stepanenko, E. I. (2018). Current approaches to assessing and enhancing the efficiency of managerial decisions in agrarian organizations. Astra Salvensis, VI(SI), 835–845. Ministry of Economic Development of the Russian Federation. (n.d.). On the current situation in the economy of the Russian Federation in the first half of 2020. Retrieved from https://www.economy.gov. ru/material/file/956cde638e96c25da7d978fe3424ad87/Prognoz.pdf cc. 4–12. Accessed 18 Feb 2022. Nabiyeva, A. R. (2021). Consumer cooperation in the socio-economic infrastructure of rural areas. In A.V. Bogoviz, A.E. Suglobov, A.N. Maloletko, O.V. Kaurova, & S.V. Lobova (Eds.), Frontier information technology and systems research in cooperative economics (pp. 419–429). Springer. https://doi.org/10.1007/978-3-030-578312_44.

O. A. Repushevskaya Orlova, E., Nesterenko, M., Kletskova, E., Rogulenko, T., & Ibragimov, N. (2020). The processes of regional integration in the global economy as a basis for accelerating its growth and development. In E. Popkova (Eds.), Growth poles of the global economy: Emergence, changes and future perspectives (pp. 235–242). Springer. https://doi.org/10.1007/978-3-030-15160-7_24. Repushevskaya, O. A., Nasretdinova, Z. T., Kuzyashev, A. N., Beschastnova, N. V., & Shamshovich, D. A. (2021). The role of credit cooperatives in financing the real sector of the economy. In A. V. Bogoviz, A.E. Suglobov, A.N. Maloletko, O.V. Kaurova, & S.V. Lobova, (Eds.), Frontier information technology and systems research in cooperative economics (pp. 3–11). Springer. https:// doi.org/10.1007/978-3-030-57831-2_1. Rodionov, A., Muzalev, S, Nabiyeva, A., Manyshin, D., & Melnik, M. (2021). Economic mechanisms of innovative development management: Public-private partnership, innovative networks and technological parks. In E.G. Popkova, A.V. Bogoviz & A. Krivtsov (Eds.), The economic and legal foundations of managing innovative development in modern economic systems (pp. 32–43). De Gruyter Oldenbourg. https://doi.org/10.1515/9783110643701-005. Ryabova, I. V., Frolova, O. A., & Pavlov, A. V. (2020). The assessment of the level of food security in the region. In A. Bogoviz (Eds.), Complex systems: Innovation and sustainability in the digital age (pp. 489–494). Springer. https://doi.org/10.1007/978-3030-44703-8_53. Sekerin, V., Dudin, M., Gorokhova, A., Bank, S., & Bank, O. (2019). Mineral resources and national economic security: Current features. Mining of Mineral Deposits, 13(1), 72–79. https://doi.org/10.33271/ mining13.01.072 Shakhova, M. S., Smorodinova, M. V., Repushevskaya, O. A., Tkach, A. V., Balalova, E. I., & Saydulaev, D. D. (2019). Digital education in the context of the development of the digital economy: Technological opportunities and prospects. International Journal of Innovative Technology and Exploring Engineering, 9(1), 3972– 3976. https://doi.org/10.35940/ijitee.A5066.119119 Shamin, A. E., Frolova, O. A., Shavandina, I. V., Kutaeva, T. N., Ganin, D. V., & Sysoeva, J. Y. (2020). Smart village. Problems and prospects in Russia. https://doi.org/10.1007/978-3-030-377373_41. Veselovsky, M. Y., Suglobov, A. E., Abrashkin, M. S., Khoroshavina, N. S., & Stepanov, A. A. (2016). Managing Russian science-intensive enterprises in the emerging new technological paradigm. International Review of Management and Marketing, 6 (S5), 16–22. Retrieved from https://ies.unitech-mo.ru/files/upload/ publications/15914/f37091fadb14675cdf0df51229abfdd6.pdf. Accessed 18 Feb 2022.

Service System and Service Targeting as a Key Aspect of the Company’s Competitiveness Viktor E. Panasenko , Mikhail V. Boginya , Valentina V. Bronnikova , Tanzilya R. Lubezkay , and Elena L. Maslova

axioms, and fundamental principles of service contributes to the formation of customer-oriented principles and, as a result, relationship management as part of the ramification of customer expectations and customer loyalty. The service system forms a new method of thinking, deepening the essence of design thinking and service design. Moreover, it expands the scope of the servicescapes model to create service space that forms service products, significantly increasing the areas and number of factors that are considered by servicescapes. In turn, the localization of many problems allows realizing the huge potential and reserves that significantly contribute to the successful conduct of business and, accordingly, competitiveness.

Abstract

The paper aims to reveal the essence of the service system, designate the basic concept—service targeting, and reflect its importance in managing feedback— customer attitude and, accordingly, the company’s competitiveness. The spatio-temporal service system is positioned by the model of the system of industrial segments, with the concept of the integral principle of constructing segment modules; a key element is a person. Categorically, the service can be designated as the “businessclients” system. Thus, the main connection is formed, and its character is indicated. Feedback—the attitude of the client is the most significant. Feedback has a significant impact on all stages of the cycle of the client’s relationship. The essence of the service system is disclosed, the features of the service are noted, and the paradox of the consumer is formulated. The laws, axioms, and fundamental principles of the service are presented. Service targeting is considered as a business/company gradient. The service targeting functions contribute to feedback and relationship management within the framework of the ramification of customers’ expectations, loyalty, and long-term competitive advantage. The assessment of the client is based only on the perceived results and impressions that form his mentality. The elimination of the consumer paradox and the implementation of service targeting functions based on the laws, V. E. Panasenko (&) . V. V. Bronnikova . T. R. Lubezkay . E. L. Maslova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] E. L. Maslova e-mail: [email protected] M. V. Boginya Krasnoyarsk State Agrarian University, Krasnoyarsk, Russia e-mail: [email protected] T. R. Lubezkay Moscow State University of Food Production, Moscow, Russia

Keywords

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Service Service system Client Service targeting Mental model Feedback Nature of feedback Customer attitude Consumer paradox Loyalty Competitiveness JEL Classification

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B59 C19 D29 D59 D69 E29 I15 I19 I29 I39 L29 L59 L80 L81 L82 L83 L84 L85 L86 L87 L88 M19 M29 M39 M59 O10 O14 O17 O24 O29 O30 O31 O32 O39 P17 P36 R49 Y80 Z39

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Introduction

The dynamic nature of the business environment and its turbulence at certain moments determine the natural change in its quality. In turn, reality changes business ideology, shifting the gradient, and focus of tasks. “Although the main driver of business is price, the business is based on service.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_134

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Service is the only strategic weapon with which market share can be significantly increased without fear that competitors will also use it. Service has become the only competitive advantage in many areas of activity.” The service concept includes a strategy and tactics that determine the company’s position in the market and the nature of customer relations (Goldstein et al., 2002; Shoal, 2017). Simultaneously, there is no unity of view on the service in academic circles and practice (Panasenko, 2018c; Qiu, 2018). Many separate areas of knowledge and experience do not reflect the reality of interconnected economic activity, in which service-oriented business models are being introduced (IFM & IBM, 2008), which predetermines the “birth” of the science of service that would challenge many traditional ideas about the economy (Metcalf, 2021). In 2004, IBM officially formalized a new kind of science —the science of service (serviceology) (IFM & IBM, 2008; Qiu, 2018). The development of service science is a solution to the problems of language terminology, logic system methodology, functionality, and boundaries that underlie complex service systems, which is a clearly defined service system paradigm (IFM & IBM, 2008). In business, as in other areas, a holistic-systemic approach is applied. Such methodological representations reveal the nature of the integrity of systems and subsystems, as well as processes in the operating environments (Purlik, 2015). For the first time, the concept of service as a service system was proposed by V. E. Panasenko in the automotive business in 2006 (Panasenko, 2018a, 2018b). “In particular, the car service business system includes the main segments of sales, operation, and disposal” (Panasenko, 2018a) and “is considered as a system for realizing the expectations of the client (person) in ensuring the technical condition of the car, from the moment it is manufactured to its disposal” (Panasenko, 2018b).

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beauty, fashion, tourism, leisure, IT, etc.” (Panasenko et al., 2021). An option for developing the business landscapes of the system service is ecosystems. Substantially, the concept of the service system creates an innovative environment, forms a service product, and develops the client base, ensuring the stability of the company. In 1972, in his sensational work, T. Levitt noted, “There are no such things as the service sector. There are only industries in which service components are larger or smaller than in other industries. Everyone is on duty.” An example of the implementation space of the service system is the car service system. Nowadays, this business represents an entire industry. The system’s product is designed to fulfill the client’s expectations and solve his or her problems (Levitt 1972; Panasenko 2018a, 2018b). The car service system is an open system that includes the fundamental modules-segments/subsystems, where the key module is the technical service and the key element is the client/person who initially determines its orientation. Modularity allows transforming subsystems, creating a variety of options, adequately responding to changes in the environment, evaluating the regional factor, and providing the most appropriate option according to the necessarysufficient principle. Openness and objectivity characterize the dynamism of the structure and boundaries of the system, i.e., depending on space–time coordinates, new modules can be included in the system. As noted above, the system undergoes changes, moving into a new quality state. Thus, the technical service module, in addition to the previously designated maintenance and repair, currently includes subsystems: pre-sales preparation, tuning, tire and wheel service, administrative and operational control, body service, etc. Details of the functions of the modules can be found in the works of (Panasenko et al., 2021; Panasenko, 2018b, 2018c, 2019).

Materials and Methods

The spiral dynamics of the development of systems predetermine the space–time coordinates of the bifurcation point on the turn of the spiral, which characterizes “other environmental conditions that require a change in the ‘shape’ and quality of the systems—different model based on other categories” (Panasenko, 2018c). Thus, the dynamics of development objectively determines the change in the perspective, structure, and boundaries of the service system, characterizing the concept of the service system as a model of “system of industrial segments, with the concept of an integral principle of constructing segment modules, the key element of which is a person. The key module is the “area of activity” of businesses/companies (and other institutions); it determines the direction of the industry: healthcare, pharmaceutical,

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Results

The solution of any problem begins with the designation of the initial conditions and the choice of coordinate system. The spiral dynamics of the development of systems predetermine the spatio-temporal coordinates of bifurcation point on the coil of the spiral, which characterizes a new qualitative spatial area: changing the “service coordinate system” (A) to the “service coordinate system” (B) (Fig. 1) (Panasenko, 2019). In the “service” coordinate system (Fig. 1A), the system model (SO) looks as follows: service (O)—meeting the needs of the consumer (P) by providing (rendering) services (U). The goal is to make a profit ($) using satisfying needs. The

Service System and Service Targeting as a Key Aspect of the Company’s Competitiveness

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Fig. 1 Model of the system in the coordinates Service (A) and Service (B). Source Compiled by the authors based on “Service business model or customer focus, long-term competitive advantage and company image. Fundamental and applied research of the cooperative sector of the economy” (Panasenko, 2019)

management’s focus (F) is aimed at internal processes, technologies of the company’s services (Q). Due to the “blurring” of terminology in the business environment, the concepts of consumer (P) are replaced with the client (K), and maintenance (O) with service (S). Here, the boundaries of the system (SO) are determined by the boundaries of the company (Q) system (the company and the consumer are not considered as a system), which excludes the participation (mediated relationship with the consumer) of other stakeholder groups. The relationship is defined as a trading operation—a transaction where the company’s interests are focused on the “point” of making a profit—the consumer. In this connection, the interests of the consumer fade into the background. In these coordinates, the paradox of the consumer is quite clearly manifested—the positioning of a person as a consumer forms his or her consumer attitude towards everything and predetermines the consumer attitude towards him (Goldstein et al., 2002). In the “service” coordinate system (Fig. 1B–I), the system model (SS) looks as follows: service (S)—the system realization of the client’s expectations and solving problems (K) through a service product (SP). The goal is the formation of a unique service product. The focus of management (F) is directed to relations with clients (K) as the most important connections in the system—attention to the client is raised to a new level. Simultaneously, the subjects are integrated into the “company-client” (SS) system—the business space. In this case, it is appropriate to speak about the client and not the consumer because there is a significant difference between these concepts (Metcalf 2021; Purlik 2015). Company (Q) is a system of elements of industrial segments, a key company, etc., contributing to the formation of a service product (including founders, partners, etc.). As a result of interaction, the service product (SP) represents a dynamic “area” of the dialectical “service triad”

(Fig. 1B–II), characterized by a unique “enriched” value (emergence, holism), i.e., dialectical unity of the value proposition of the company (Q) and the individual value of each client (K). The resonance effect is clearly “creative” in nature (particularly, it destroys the barriers of misunderstanding and mistrust) and plays the role of a multiplier. Thus, similarly to the triad of Georg Hegel, service product based on service targeting becomes the main dialectical principle of the development of the service system. It should be emphasized that a service product and its uniqueness cannot be copied (in contradistinction to service), which predetermines the company’s competitiveness. In the “company-client” (SS) system, basing is of key importance—the accuracy of the positioning (required position to the company) of the client, which is achieved by the formed main connection. Simultaneously, the client must have a certain number of degrees of freedom, which determines the nature of the connection (Fig. 2I). In the “company-client” (SS) system, the main element is the company—the corrective subsystem, i.e., an element that corrects the parameters and characteristics of a service product (SP). The nature of the connection is determined by the “feedback loop,” i.e., the client’s perception of the company’s actions; for example, building trust through dialogue that promotes co-creation of value forms a strong bond(s). A stable connection (a) that creates positive assessment, the trust of the client, thereby contributing to the strengthening of the company’s image. The client’s assessment is based only on the perceived results and impressions. As a result, the “mental landscape” of the client is formed, and his or her positive experience is created. Thus, the service product exhibits pronounced attractor property, and the character of stable connection, the “feedback loop,” is the client’s loyalty.

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Fig. 2 System stability. Source Compiled by the authors based on “Business as a system. Public administration” (Purlik, 2015). Note I is the nature of the connection; II—the landscape of the business

environment; a—stable connection (stable system); b—neutral bond (neutral system); c—unstable connection (unstable system)

It should also be noted that under the dynamics of the impact of the company’s environment system, the system of the external business environment, including the effectiveness of the actions of competitors, stable connection (a) can “degenerate” into a neutral (b) or an unstable (v) connection (Fig. 2I, II). As a “gift” of the company, a new “competitorclient” system is formed. The dynamic nature of the service system, characterized by the cycle—“coil” of the relationship spiral, determines the dynamism of the service product, denoting the system for implementing the client’s expectations (assumptions, requirements, resolving issues and problems) of clients. Service targeting is customer-oriented. As the basic concept of the service system, the business/company gradient is the intellectual basis of the service strategy aimed at increasing the profitability and quality of the service product by creating an effective organic growth cycle (Panasenko, 2019). Service targeting is the formation and development of relations with the client in the active and potential modes of the “company-client” system. Service targeting is a methodology for optimizing the resources that the company uses to build its image (Fig. 1B–I). Thus, service targeting is a kind of logic (philosophy and culture), using which the company seeks to provide a virtuous cycle of improving actions and the value of perception received by the client. Simultaneously, the company is fully responsible for the result. The energy of the main connection is initially focused on increasing the perceived value of customers and, as a result, shaping and strengthening the company’s image. A systemic view of the service is a thinking model based on mental models that form the “mental landscape” of the client. Feedback can be distorted by perceptual filters and psychological defenses—the biases of a person’s mental models. The scheme works as follows: Mental model—Goal— Decision—Action—Result. The system “values/beliefs/

attitudes/goals” is like a seed from which the fruits of the result grow. Different grains give different shoots and fruits. Managers act according to their understanding of the business landscape; this system of mental models becomes their perceived reality. The key issue is that managers’ mental models influence what they see and do in their business practices at a strategic level. Mental models have recently been much discussed in terms of their underlying “logic.” The dominant logic matters in theory and practice (Heinonen & Strandvik, 2020). Logic is defined as a perspective, point of view, or framework that regulates the way of thinking (Paunonen, 2019). Mental—“logical landscapes” define the prospects and opportunities available to companies for orientation in a competitive environment; each of them offers different approaches (Paunonen, 2019): goods-dominant logic (G-DL) (Grönroos & Gummerus, 2014), service logic (SL) (Anker et al., 2015; Grönroos & Gummerus, 2014), service-dominant logic (S-DL) (Vargo et al., 2017; Vargo & Akaka 2009), customer-dominant logic (C-DL) (Heinonen & Strandvik, 2015, 2020). Perspectives are changing. C-DL gives companies clarity and understanding of the central, priority role of the customer. The customer-dominant logic is at the heart of market formation (Paunonen, 2019). The service system synthesizes G-DL, SL, S-DL, and C-DL, expands the perspective, and reveals new facets of C-DL. Thus, the service system creates a new impetus, significantly revealing the company’s potential. Additionally, the service system, in its nature, forms a new method of thinking, expanding the essence of design thinking and service design. The service system expands the scope of the servicescapes model to create a service space (service system) that forms a service product, significantly expanding the factors considered by servicescapes.

Service System and Service Targeting as a Key Aspect of the Company’s Competitiveness

4

Discussion

Preservation and development of the client base is the development and management of relationships with clients (Panasenko, 2019). “However, customer relationship management has evolved into customer profitability management —one-way method focused on the interests of the company, considering only economic costs and not shedding light on the reasons why customers choose a company” (Krylatov, 2018). For a better understanding of the task of forming long-term relationships with clients, it is important to understand the essence of the stages of the cycle of relations with the client—potential and kinetic modes. In the kinetic

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mode, these stages are the stages of formation, through dialogue, of service product: gambit, recursive, and finishing (Panasenko, 2018a, 2018b). All marked points allow designating a business/company gradient—targeting service. The functions of the targeting service are to create a desire and demand among customers to continue their relationship with the company. Thus, this solves one of the tasks of the service—maintaining and developing the client base. As is known, the system’s function is realized using the principle of action, which characterizes its concept. The key principles of the service are the fundamental concepts of the service: the laws and axioms of the service system are presented in Table 1.

Table 1 Fundamental concepts of the service Law/axiom

Content

Law 1

In a tough business environment, the conceptual basis is the service, and the corresponding strategy is the implementation of the client’s expectations

Axiom 1

Service is a radically different frame of reference; a way of thinking is a mentality, philosophy, and culture

Axiom 2

Service strategy cannot be created or exist outside the overall strategy and culture of the company

Axiom 3

The fundamental postulate of business—profit, which is a necessary but not sufficient condition for the existence of a company in the market

Axiom 4

Expectation—the client’s assumption about a future event; includes a set of requirements of the client, which are consist of resolving issues/problems

Axiom 5

The service implements the client’s expectations through the service product

Law 2

The service system and the corresponding strategy implements a sufficient condition for a tough business environment—the client is always right

Axiom 6

The fundamental element of the system is a client

Axiom 7

Control element of the system is a business or a company

Axiom 8

The client forms the main connection, and the nature of the connection is formed by the company

Axiom 9

The client should not wait and waste his or her time and nerves trying to resolve any issue

Axiom 10

The client must understand that his or her problems will be solved anyway

Law 3

The stability of the system determines the nature of the connection formed by the business/company

Axiom 11

The main connection defines one point of contact between the client and the company

Axiom 12

The nature of the main connection of the service system—trust relationships—is formed in the dialogue mode

Axiom 13

It is impossible to buy or “sell” a trusting attitude of the client—it can only be deserved and earned

Law 4

A service product, as a reproducible value, determines the potential of the service system

Axiom 14

A service product is the value proposition that captures value for the company and creates new value for the client

Axiom 15

The following stages are integral to the formation of a service product: formation, confirmation, and fixation of the client’s trust

Axiom 16

The determining factor in the formation of a service product is reinforcing feedback—the attitude of the client—his trust

Axiom 17

Only reinforcing feedback ensures the manifestation of the property of emergence and a multiplier effect—strengthening the image of the company

Axiom 18

The only conflict format in the service system is constructive

Axiom 19

Responsibility for everything (the result and quality of the functionality of the system) lies with the company

Source Compiled by the authors based on the “The concept of service, the modern meaning of the question of the subject of service or systemic support for the profitability of the company,” “Technological foundations of the service business model or system support of the company’s competitiveness,” and “Service business model or customer focus, long-term competitive advantage and company image” (Panasenko, 2018a, 2018b, 2018c, 2019)

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The analysis and research of the concept of service targeting and feedback management (the relationship of the client) allow authors to note the following: • Analytics of the feedback control element—the relationship with the client, as a rule, functions in isolation from the original source; • Subjectivity and the lack of a feedback management system with the client negatively affect the result—the quality of management; • Formalization of customer orientation sets the task of targeting the service; • Functions of service targeting and feedback management (the client’s attitude) largely determine the mentality of employees. The analysis (factorial) allowed highlighting the relationships and approaches to the implementation of the client’s expectations. The proposed solutions contributed to the formation of a new mentality and thinking, the principles of service targeting, the formation of service space, and, as a result, the management of relationships between interdependent groups of clients and companies within the framework of the ramification of client expectations (problem-solving) to the types and quality of the service product.

5

Conclusion

The business world is becoming more integrated, complex, and interdependent than ever before. Nowadays, in the conditions of tough market competition, the service becomes the coordinate system of the business environment. A systemic view of service allows people to properly understand and deal with its existing variability to decipher and capture its inherent nature in business. The spiral dynamics of development determine the change in the perspective, structure, and boundaries of the service system, as a model of a system of industrial segments, the key element of which is a person. Systemic service involves the analysis of the structure/system dichotomy—each subsystem is a recognizable entity that arises from a certain changing structure (complex of individual elements with designated roles, actions, and tasks performed in accordance with rules and restrictions). The service system focuses on the analysis of the relationship between the subjects, the company, and the clients, in search of viable conditions of interaction for the realization of a common goal. The dynamic nature of the service system determines the dynamism of the service product, denoting the system for implementing the client’s expectations (assumptions,

requirements, and resolving issues and problems). The creation of trusting relationships through dialogue contributes to the creation of the value of the service product and forms a stable relationship, which predetermines a positive assessment—the client’s trust, thereby contributing to the strengthening of the company’s image. The assessment of the client is based only on the perceived results and the prevailing impression. As a result, the “mental landscape” is formed, and the positive experience of the client is created. The service product exhibits a pronounced property of an attractor, and the nature of a stable connection, “feedback loop”—the client’s loyalty. Service targeting is the intellectual basis of a service strategy aimed at increasing the profitability and quality of a service product by creating an effective organic growth cycle. Targeting service is a methodology for optimizing the resources used by the company to build its image. The strongest and most competitive position is observed in companies whose strategy considers the targeting of services and allows providing the required quality of service product at minimum cost in the shortest possible time.

References Anker, T. B., Sparks, L., Mountinho, L., & Grönroos, C. (2015). Consumer dominant value creation: A theoretical response to the recent call for a consumer dominant logic for marketing. European Journal of Marketing, 49(3/4), 532–560. https://doi.org/10.1108/ EJM-09-2013-0518 Goldstein, S., Johnston, R., Duffy, J., & Rao, J. (2002). The service concept: The missing link in service design research? Journal of Operations Management, 20(2), 121–134. https://doi.org/10.1016/ S0272-6963(01)00090-0 Grönroos, C., & Gummerus, J. (2014). The service revolution and its marketing implications: Service logic vs service-dominant logic. Managing Service Quality, 24(3), 206–229. https://doi.org/10.1108/ MSQ-03-2014-0042 Heinonen, K., & Strandvik, T. (2015). Customer-dominant logic: Foundations and implications. Journal of Services Marketing, 29 (6/7), 472–484. https://doi.org/10.1108/JSM-02-2015-0096 Heinonen, K., & Strandvik, T. (2020). Customer-dominant service logic. In E. Bridges, & K. Fowler (Eds.), The Routledge Handbook of service research insights and ideas (pp. 69–89). Routledge. https://doi.org/10.4324/9781351245234 IFM and IBM. (2008). Succeeding through service innovation A service perspective for education, research, business and government. Cambridge, UK: University of Cambridge Institute for Manufacturing. Retrieved from https://www.ifm.eng.cam.ac.uk/uploads/ Resources/080428cambridge_ssme_whitepaper.pdf. Accessed 3 October 2021 Krylatov, S. A. (2018). Customer relationship management and business strategies. Science, Technology and Education, 6(47), 89–93. Levitt, T. (1972). Production-line approach to service. Harvard Business Review, 50(5), 41–52. Retrieved from https://hbr.org/ 1972/09/production-line-approach-to-service. Accessed 3 October 2021

Service System and Service Targeting as a Key Aspect of the Company’s Competitiveness Metcalf, G. S. (2021). Service as mutualism: A question of viability in systems. Service Science, 2(1/2), 102–111. Panasenko, V. E. (2018a). Service as a system business or benefit before competitors and image of the company. Fundamental Research, 6, 183–187. https://doi.org/10.17513/fr.42189 Panasenko, V. E. (2018b). Technological foundations of the service business model or system support of the company’s competitiveness. Fundamental and Applied Researches of the Cooperative Sector of the Economy, 3, 144–153. Panasenko, V. E. (2018c). The concept of service, the contemporary importance of the subject service or system to ensure the profitability of the company. Fundamental and Applied Researches of the Cooperative Sector of the Economy, 2, 143–150. Panasenko, V. E. (2019). Service business model or customer focus, long-term competitive advantage and company image. Fundamental and Applied Researches of the Cooperative Sector of the Economy, 3, 109–117. Panasenko, W. E., Sharonov, M. A., Boginya, M. V., Vlasova, T. G., & Zhukova, Z. S. (2021). A technical service system to increase business efficiency and competitiveness. In A. V. Bogoviz, A. E. Suglobov, A. N. Maloletko, O. V. Kaurova, & S. V. Lobova

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(Eds.), Frontier information technology and systems research in cooperative economics (pp. 705–714). Springer. https://doi.org/ 10.1007/978-3-030-57831-2_76 Paunonen, E. (2019). Logicscapes: Critical analysis of value creation in service-dominant logic, service logic, and customer-dominant logic (Thesis of Bachelor of Business Administration). Metropolia University of Applied Sciences. https://doi.org/10.13140/RG.2.2. 25823.28321 Purlik, V. M. (2015). Business as a system. Public Administration. E-Journal, 48, 162–188. https://doi.org/10.24411/2070-1381-201500009 Qiu, R. G. (2018). Service science: The foundations of service engineering and management. Wiley Shoal, J. (2017). First class service as competitive advantage. Alpina Publisher. Vargo, S. L., Akaka, M. A., & Vaugha, C. M. (2017). Conceptualizing value: A service-ecosystem view. Journal of Creating Value, 3(2), 1–8. https://doi.org/10.1177/2394964317732861 Vargo, S., & Akaka, M. (2009). Service-dominant logic as a foundation for service science: Clarifications. Service Science, 1(1), 32–41. https://doi.org/10.1287/serv.1.1.32

Formation of Responsible Cooperative Entrepreneurship Based on Socially-Oriented Cluster Tatiana V. Opeykina , Natalia I. Morozova , Natalia I. Korobkina , and Galina N. Dudukalova

Abstract

1

Throughout the evolution, consumer cooperation has accumulated rich experience into a single value chain. The most promising form of association is a socially-oriented cluster, the purpose of which will be the formation of responsible cooperative entrepreneurship, the introduction of advanced technologies, and the solution of national tasks. This form of cooperation will make it possible to form a single production and technological cycle that provides the closed mechanism of economic activity, with the help of which high economic and social indicators are achieved in economic activity, the necessary control of the quality indicators of products sold is ensured, mutual and common protection of interests from the impact of monopolistic associations in the supply chain. However, this doesn’t preclude competition. Keywords

.. .

Agricultural economics Cooperative food production Agrarian cooperation Region Sociallyoriented cluster Responsible cooperative entrepreneurship JEL Classification

P32

.

O33

T. V. Opeykina (&) . N. I. Morozova . N. I. Korobkina . G. N. Dudukalova Volgograd Cooperative Institute (branch) of the Russian University of Cooperation, Volgograd, Russia e-mail: [email protected] G. N. Dudukalova e-mail: [email protected] N. I. Korobkina Volgograd State Socio-Pedagogical University, Volgograd, Russia

..

Introduction

The formation of the institution of the welfare state is a vector of development, which is currently taken by the leading countries of the world. Moreover, this share, as practice shows, is increasing from year to year. And no one single state has been able to fulfil all the social obligations assumed in full yet. German scientist Wagner wrote about this trend at the end of the nineteenth century. In his opinion, the increase in the budget deficit and the likelihood of loss of financial stability of the state and its subjects may become the consequences of the growth of the burden of social obligations (Wagner, 1871). Despite the past centuries, his theses haven’t lost their relevance in modern conditions. The lack of a full-fledged financial base, especially at the local level, requires the search for alternative sources of financial resources in order to fully finance socially significant projects. As it is well-known, the reform of administrative management in Russia led to the emergence of an institution of local self-government, endowed with certain powers and its financial base. However, the powers lowered to the local level are quite expensive but extremely important for the population living in the territory. As a result, a gap began to form and grow between the need for financial resources for their implementation and the available opportunities. Failure to fulfil socially significant obligations can lead to an outflow of the population, and this has actuality for rural areas. Underdevelopment of infrastructure, lack of jobs, low wages are the most common consequences of a budget deficit at the local level. The emergence of differentiation in socio-economic development may adversely affect the national security of the state. As a way out of this situation, it’s necessary to develop new forms of cooperative ties between government agencies and the private (entrepreneurial) sector regarding the implementation of socially significant and public projects. The product of such interaction can be the formation of a socially-oriented cluster that unites cooperative

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_135

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entrepreneurs, responsible to the state and society. This form of integration is consistent with the main provisions of the theory, called the “New system of Public Administration” (New Public Management, NPM). The key ideas of this concept are the introduction of management principles used in the area of private entrepreneurship, such as performance indicators and elements of business planning, in the activities of the public sector and non-profit organizations, including cooperative ones. In turn, the private (entrepreneurial) sector gets the opportunity to participate in the competition for the opportunity to provide those services that were previously the prerogative of the public sector. For improving the quality of work performed and the provision of socially significant and public services, it’s planned to develop a whole system of procedures that exercise control at all stages of project implementation. The establishment of close interaction between the authorities and business is determined by the essential features of the rule of law and the market management system. This idea was theoretically substantiated in the studies of Buchanan and Tulloch, related to the theory of civil society and the social contract (Buchanan & Tulloch, 1997). In the future, this problem was given much attention in world science. Not only theoretical ideas were developed, but also practical and methodological approaches to organizing this kind of cooperation, and a legal foundation was formed. The most common form of integration is a public–private partnership, which has come from simple government contracts to complex and long-term concession schemes. As a result of this evolution, the interests of the parties involved have been protected, the efficiency of attracted financial resources has increased, and the criteria for distributing risks between the participants have become more transparent. However, the authors believe that in the future, a socially-oriented cluster with the participation of responsible cooperative entrepreneurship, the formation of which will contribute to the development of the institution of the social state, can become no less effective tool than PPP.

2

Materials and Methods

It’s the cooperative associations that act as an indicator of the democratic health of society. At an early stage of economic development, all institutions significant for the state were formed, as a rule, spontaneously, their viability was tested by the spontaneous action of market forces, but today there is a need to regulate this process. The market economy is a self-organizing system with internal sources of development and built-in regulators. However, its potential possibilities aren’t unlimited. During

the interdependence of all links of social production increases, contributing to the transformation of the world economy into an integral social organism, the normal functioning of the market mechanism becomes impossible only based on internal potentials, it’s necessary to use an external regulator, which can be a state. Its impact should be constructive, stimulate the development of competition, which contributes to the creation of effective market institutions, as well as expand the economic freedom of economic entities, directing social development in the direction of economic and social progress. There are various kinds of associations that aren’t elements of the state, but they can’t be attributed to purely market structures. Under the current conditions, the idea of laissez-faire can no longer occupy a dominant position in economic science and adequately regulate economic interactions within modern cooperative formations. The importance of the theory of Keynes about the need to regulate the elements of market forces, which in the more complicated economic conditions are no longer able to automatically support the reproduction process, is growing (Keynes, 2007). In addition, regulatory functions will be transferred not only to the state but also to civil society institutions. Such processes will accumulate more and more, which will allow “putting forward a hypothesis that the modern system of its regulation only by inertia continues to be called a market mechanism because it differs qualitatively from the classical ideas about the latter. The differences are so great, so, the question of the emergence of a fundamentally new mechanism of self-regulation can be raised” (Sorokin, 2001).

3

Results

The transformation and expansion of the types of activities of cooperative organizations, as a rule, are accompanied by the emergence of additional jobs in rural areas, which contributes to the replenishment of the budget at the municipal level. The authors believe that low-rise Russia is the vector of development of large cities “industrial machine” (Tinyakova et al., 2019, 2020; Word cooperation monitoring 2020). More accurate information can be obtained based on the indicator “total turnover of cooperative organizations in terms of GDP per capita”. According to this indicator, the largest share falls on agriculture and the food industry (35%), insurance cooperatives are in second place (32%), and wholesale and retail trade (19%) closes the top three (Exploring the cooperative economy & report, 2018). Smith also wrote about this: “the division of labour in any craft, no matter how much it’s introduced, causes a corresponding increase in labour productivity” (Smith, 2000). As Porter wrote, the essential features of the “cluster” category

Formation of Responsible Cooperative Entrepreneurship Based on Socially-Oriented Cluster

are manifested in the fact that elements (components) are combined into a single whole for the implementation of certain functions or certain goals of entrepreneurship (Porter, 2001). Territorial cluster forms have significant differences from cooperative and economic forms of interaction, due to which certain preferences are achieved not only for cluster members but also for public authorities. According to the American scientist Price, “the creation of clusters and the introduction of cluster model of the behaviour of organizations is a way to restore trust between government and business, as well as transform isolated firms into entrepreneurial community” (Asaul, 2005). The authors consider that this thesis hasn’t lost its relevance today. As for indicators, which evaluate the effectiveness and feasibility of forming socially-oriented clusters, the achievement of economic effects resulting from the integration of business entities in the area of consumer cooperation into a single value chain aimed at creating added value can be considered. It’s also possible to obtain non-economic effects, such as educational, innovative, administrative, and others. Moreover, non-economic institutions can act as cluster-forming elements. So, associations of cooperative entrepreneurs will help protect the interests of shareholders from external monopolistic influence on the part of supply and marketing, banking, as well as other structures. In addition, for the most part, the shareholders of the consumer cooperation system are rural residents (Vakhitov, 2017). Summing up, the authors note that associations of cooperative forms of management will contribute to the creation of a socially-oriented cluster that unites entrepreneurs increasing the level of well-being of its shareholders.

4

Conclusion

The cooperative system hasn’t exhausted its development potential yet. (Tinyakova et al., 2018). This is the economic niche, where, for objective reasons, it’s impossible to earn

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super-profits, but this sector remains state subjects. Socially oriented clusters strengthen economy of the region. Today, the ideas of collectivism and mutual assistance haven’t been lost in the public consciousness yet.

References Asaul, A. dN. (2005). Organization of entrepreneurial activity. Peter, St. Petersburg, 110. Buchanan, J., & Tulloch, G. (1997). Consent calculation. Logical foundations of constitutional democracy. Series: “Nobel Laureates in Economics.” Economic Initiative Fund, Taurus Alpha, Moscow, 1, 31–206. Exploring the cooperative economy, report (2018). https://monitor. coop/en/online-library/resources. Accessed: 16.10.2021 Keynes, J. M. (2007). General theory of employment, interest and money. Eksmo. Porter, M. (2001). Competition. Williams Publishing House. Smith, A. (2000). Inquiry into the nature and causes of the wealth of nations. In Classics of economic thought (pp. 80–81). EKSMO-Press. Sorokin, D. (2001). Challenges of the new century and Russia’s strategic response. Questions of Economics, 11, 46. Tinyakova, V. I., Morozova, N. I., Ziroyan, M. A., & Falkovich, E. B. (2018). Monitoring of human resources and a new educational structure for training specialists as key factors to reactivate the system of consumer cooperation in Russia. Amazonia Investiga, 7 (17), 353–359. Tinyakova, V. I., Morozova, N. I., Gunin, V. K., & Kireeva, O. I. (2019). Revival of the system of consumer cooperation in Russia; sustainable development of the territory and growth of quality life. Amazonia Investiga, 8(18), 351–358. Tinyakova, V. I., Morozova, N. I., Konovalova, O. V., Proskurina, I. Yu., Falkovich E. B. (2020). The cluster form of organization and the prospects for its application to provide the sustainable development of cooperative entrepreneurship. Revista Gênero e Direito, 9, 4, 1092–1103 Vakhitov, K. I. (2017). Theory, history, practice: selected sayings, facts, materials, and comments. Publishing and Trade Corporation “Dashkov and K”. Wagner, A. (1871). Russian paper money. National economic and financial research: with the application of the project for the restoration of metal circulation. University printing house. Word cooperation monitoring (2020). https://monitor.coop/en/media/ library/research-and-reviews/world-cooperative-monitor-2020. Accessed: 16.10.2021

Efficiency of Biopreparation Treatment of Wheat Grain; Baking Properties of Flour and Quality of Baked Bread in Consumer Cooperative Enterprises Irina A. Derenkova , Natalia G. Berezhnyak , Irina G. Peshkova , Yuri A. Pospelov , and Olga V. Kosenko

Abstract

Keywords

The paper aims to substantiate the use of biopreparations in the storage of wheat grain at the enterprises of consumer cooperation. The authors analyzed the qualitative composition of new high-yielding varieties of soft winter wheat with high consumer properties: Bumba, Classica, Rossyp, and Style 18. Using the methods of instrumental analysis, the authors identified moisture, mass fraction of protein, vitreousness, gluten content, and trash content. When treating grain with two types of biopreparations (“Disofungin plus” and “Batan”), with a dosage of 4 l/t, microbiological purity of wheat grain of high moisture is provided. Technological and merchandising properties of wheat flour treated with biological preparations have been determined. The developed technology allowed reducing the cost of processing wheat before storage, increasing the durability of wheat grain during storage, and maintaining high consumer properties. As a result of the calculations of economic justification of the new method of storage of high-moisture wheat grain treated with biopreparation “Batan,” the total effect of 1.5 thousand rubles/t was obtained. The practical significance of the studies performed consists in the ability of bread baked from flour treated with biopreparations to actively resist potato disease. The resistance of baked bread to Bacillus Mesentericus and Bacillus Subtilis is especially relevant for consumer cooperative enterprises located in the southern regions of Russia.

Wheat grain Biopreparations Bread Consumer properties Effectiveness of results Consumer cooperation

I. A. Derenkova . N. G. Berezhnyak . I. G. Peshkova . Y. A. Pospelov . O. V. Kosenko (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] I. A. Derenkova e-mail: [email protected] I. G. Peshkova e-mail: [email protected]

..

. . .

JEL Classification

A13

1

.

Q16

Introduction

Improving the production technology of bakery products is one of the main priorities of the food and processing industry. Earlier studies focused on the formation and evaluation of consumer properties of wheat flour treated with bactericidal biological preparations (Derenkova, 2009a). An important role is given to the safety of bread and bread products made from wheat flour at consumer cooperatives located in different regions of the country (Shubina et al., 2020). Products must be produced following GOST R 58233-2018 “Bread made from wheat flour.” The flour-and-cereal and bakery industries of the country are among the most demanded industries (Shazzo et al., 2016). The annual output of wheat and wheat and rye flour is about nine million tons. Considerable attention is paid to improving the technology and safety of wheat flour (Sattarov et al., 2021). In recent years, a whole industry of natural food additives has emerged to improve the baking properties of wheat flour (Kazimirova et al., 2017). Methodological recommendations and methods of controlling the content of phytopathogens in grain and flour were developed (Guvennov et al., 2015; Panasenko et al., 2018). The possibility of using biopreparations “Vitaplan” and “Extrasol” for the inactivation of phytopathogens was analyzed (Kabalina et al., 2018). The methods of processing raw materials and phytopreparations of microbial nature,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_136

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developed in the Krasnodar Research Institute of Storing and Processing of Agricultural Products, are designed to form the consumer properties of wheat flour (Aleshin et al., 2018). The Krasnodar branch of the Russian University of Cooperation carried out a cycle of research on the use of biopreparations to improve the consumer properties of wheat flour (Derenkova, 2009b; Shubina, 2009a). Kazakh scientists confirmed the effectiveness of biopreparations against root rot (Amangeldi et al., 2016). Ukrainian scientists evaluated the role of “BioNorma Pseudomonas” and “BioNorma Triomax” biopreparations for protection against phytopathogens (Telychko, 2021).

2

Materials and Methods

The authors used various generally accepted research methods in solving research tasks. To develop new technologies for grain processing, the following were used as methods of system analysis: • Works of Russian scientists; • Works of scientists from around the world working in the field of creating new and more advanced methods of preserving grain during storage; • Various informational materials; • Various reference materials.

3

Results

The research objects were new high-yielding varieties of soft winter wheat with high consumer properties: Bumba, Classica, Rossyp, and Style 18. These varieties are the most promising for the purpose of research due to their resistance to a number of diseases. It was found that the variety Classica has high quality indicators. In this regard, further research will be conducted using this variety. Moisture is the most important factor determining the seed and sowing characteristics of the grain. The effects of various factors on the microflora of the variety Classica were studied. According to the results of earlier work, wheat with 12.3% moisture contains less parasitic microflora than wheat with 17.4% moisture. (Shubina, 2009b). Under laboratory conditions, it was experimentally confirmed that in wetter grains, their own proteases have higher activity. Protease activity of wet grain increases due to the activity of proteolytic enzymes of mold fungi and bacteria, which hydrolyze the proteins of gluten and further reduce the baking properties of flour.

Thus, we can conclude that by reducing the content of mold fungi and bacteria through biopreparations, one can extend the shelf life of the grain and improve the baking properties of the flour obtained from the grain. The possibility of suppressing the development of undesirable microflora in wet grain through the use of biopreparations from microorganisms with different stages of development is of considerable interest. The demand is currently observed for the following biopreparations: Trichodermin, Gaupsin, Disofungin Plus, and Bactofit. During the storage of wheat grain, there is a possibility of its contamination with toxigenic fungi Alternaria, Aspergillium, Fusarium, Mucor, and Penicillium, which may be due to the lack of treatment of seeds before sowing. In recent years, the attention of researchers has been attracted by the bactericidal preparation “Batan,” developed with the participation of the authors. This preparation allows for extending the shelf life of wet grain (Derenkova, 2009a, 2009b). To ensure the microbiological purity of high-moisture wheat grain, preparations “Disofungin plus” (DZF+) and “Batan” (BT), with a dosage of 4 l/t, were used. The grain was stored at a temperature of 20 ± 2 °C and relative humidity of 75%. A wheat sample with 18% moisture was the control. The effect of two bactericidal preparations “DZF+” and “Batan” on wheat microflora was studied. It was found that treatment of grain with the abovementioned biopreparations at a dose of 4 l/t contributes to the microbiological purity of wheat grain with high moisture content (Pershakova, 2012). The authors of the research conducted a phyto-expertise and found that treatment of grain with the studied biological preparations had a negative effect on spore-forming fungi Alternaria, Aspergillium, Fusarium, Mucor, and Penicillium. Table 1 shows the effect of biopreparations on the degree of damage of wheat by spore-forming fungi. The data presented in Table 1 show protection of grain by “Batan” against Alternaria, Aspergillium, Fusarium, and Mucor fungi by 100%, and by the intercellular fungus Penicillium by 90%. Treatment of wheat grain with “Disofungin Plus” (DZF+) showed lower efficiency (Pershakova, 2012). Further studies were performed with “Batan.” Table 2 shows the data on the technological properties of wheat flour from grain with different moisture content treated with “Batan” (BT) (Derenkova, 2009a). Table 2 shows that increased moisture has a negative impact on the technological properties of the flour. Information on the darkening ability of wheat flour with different moisture content was obtained. The content of melanin compounds responsible for the darkening of flour

Efficiency of Biopreparation Treatment of Wheat Grain; Baking Properties of Flour … Table 1 Effect of biological preparations on the degree of wheat damage by spore-forming fungi

Concentration of the preparation

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Degree of damage to wheat by spore-forming fungi, % Alternaria

Aspergillium

Fusarium

Mucor

Penicillium

Control

24

5

6

100

91

DZF+, 1 l/t

23

4

5

100

90

BT, 1 l/t

20

–

4

83

90

DZF+, 2 l/t

22

3

3

95

86

BT, 2 l/t

22

–

3

64

77

DZF+, 3 l/t

12

1

1

83

70

BT, 3 l/t

8

–

–

34

54

DZF+, 4 l/t

10

–

–

27

61

BT, 4 l/t

–

–

–

6

7

DZF+, 5 l/t

2

–

–

21

40

BT, 5 l/t

–

–

–

–

5

DZF+, 6 l/t

1

–

–

20

18

BT, 6 l/t

–

–

–

–

5

Note DZF+—“Disofungin plus”; BT—“Batan”. Source Compiled by the authors

Table 2 Technological properties of wheat flour from grain with different moisture content treated with Batan (BT)

Technological properties of wheat flour of grain moisture

Technological properties

12.3% Control

17.4% “Batan” (BT)

Control

“Batan” (BT)

Gluten, %

32.5

33.3

34.2

36.8

Deformation of gluten, units of gluten strainmeters

72.0

72.2

69.2

70.6

Flour quality as the amount of water-soluble components, % on dry matter

32.3

31.3

33.2

32.8

1231.0

1247.0

1170.0

1198.0

Volume of CO2 in 5 h of dough fermentation from 100 g of flour, ml Source Compiled by the authors

from treated grain with a moisture content of 12.3% is at 20.3% (control 23.71%). For grain with a moisture content of 17.4%, these figures are higher—23.12% (control 26.61%). The reflection coefficient Crefl of freshly kneaded wheat flour with a moisture content of 12.3% is 44.14% (control 42.13%). For the same flour with a moisture content of 17.45%, the reflection coefficient is lower—42.16% (control 41.2%). The reflection coefficient of thermostatted flour with a moisture content of 12.3% is 33.12% (control 32.15%); for flour with a moisture content of 17.4%, this coefficient is 33.15% (control 30.1%). The obtained data indicate that wheat grain flour treated with “Batan” has a reduced ability to darken. The next stage of research was the evaluation of technological and rheological properties of dough from flour with different moisture content, which confirmed the good preservation of such properties for flour with different moisture content obtained from wheat treated with “Batan.”

Structural and mechanical properties of bread baked using the dough method from flour with different moisture content were evaluated using a universal penetrometer. The total compression strain of bread crumb DHtotal made from flour with a moisture content of 12.3% is 17.4% in the range 92–86 units (control 85–70 units). The plasticity of bread crumb DHpl for two values of initial moisture content of flour was determined at the level of 72–70 units (control 64–58 units). The elasticity of bread crumb DHel for two values of initial moisture content of flour was estimated at 20–22 units (control 18–18 units). The porosity of bread crumb made from flour with a moisture content of 12.3% is 60% (control 58%) and that of bread made from flour with a moisture content of 17.4% is 56% (control 54%). The structural and mechanical parameters of treated wheat grain bread were found to improve specific volume,

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form stability, porosity, and rheology of the crumb (Kazimirova et al., 2017; Pershakova, 2012). Infusoria Tetrahymena piriformis was used as a test microorganism to determine the biological value of wheat, flour, and bread (Kazimirova et al., 2017). When testing wheat grain, flour, and bread for relative biological value using test microorganisms, it was found that in samples with high moisture content, there were large losses of infusoria. When evaluating the character of infusoria movements, the number of altered and dead cells, we determined the relative biological value and safety of the studied objects. The experiment results confirmed the high biological value and safety of flour and bread made from grain treated with “Batan.” A significant economic effect of implementing a method of treatment of wheat with biopreparation was obtained by reducing grain losses during storage (Derenkova, 2009b). The cost of production of “Batan” was calculated using average physical indicators. The calculations made allowed determining the total cost of pilot production of preparation “Batan” in the amount of 87.6 thousand rubles per one metric ton of preparation (Derenkova, 2009b). It was found that the use of preparation “Batan” for the treatment of wheat allowed obtaining savings of 1.5 thousand rubles per one metric ton of grain. Practical implementation of the new method of storing wet wheat grain was carried out at grain elevators in the Krasnodar Territory.

4

Discussion

The performed research confirmed the hypothesis about the possibility of creating biocomplexes to extend the shelf life of wheat grain, which include bacilli, yeasts, and streptomycetes (Derenkova, 2009a, 2009b). The properties of complex biopreparation “Batan” of specialized purpose developed with the participation of the authors, which includes culture fluids of yeast Hansenula and bacteria B. Thuringiensis in its composition, were studied. However, the theoretical justification of the mechanism of the effect of biopreparation on the biochemical parameters of grain during storage remains debatable.

5

Conclusion

The authors analyzed the qualitative composition of new high-yielding varieties of soft winter wheat with high consumer properties: Bumba, Classica, Rossyp, and Style 18. Moisture, mass fraction of protein, vitreousness, gluten content, and trash content were determined by the methods

of instrumental analysis. In further studies, we used the variety Classica, which showed higher technological characteristics. Technological and merchandising properties of wheat flour treated with biological preparations were determined. The developed technology allowed reducing the cost of processing wheat before storage and increasing the firmness of wheat grain during storage while maintaining high consumer properties. As a result of the calculations of economic justification of the new method of storage of high-moisture wheat grain treated with the biopreparation “Batan,” the total effect of 1.5 thousand rubles per one metric ton was obtained. The practical significance of the performed studies consists in the ability of bread baked from flour treated with biopreparations to actively resist potato disease. The resistance of baked bread to Bacillus Mesentericus and Bacillus Subtilis is especially relevant for consumer cooperatives located in the southern regions of Russia.

References Aleshin, V. N., Pershakova, T. V., & Kupin, G. A. (2018). Biological preparations of microbial nature as a tool for formation of consumer properties of plant raw material. International Journal of Humanities and Natural Sciences, 5–1, 174–178. Amangeldi, N., Amirkulova, A. Z., Agibaev, A. Z., Dababat, A. A., & Kochorov, A. S. (2016). Effectiveness of biologics application against root rot of grain crops. Biosciences Biotechnology Research Asia, 13(4). https://doi.org/10.13005/bbra/2355 Derenkova, I. A. (2009a). Formation and evaluation of consumer properties of wheat grain flour with the use of biological preparations (Synopsis of dissertation of candidate of technical sciences). Kuban State Technological University. Derenkova, I. A. (2009b). Formation and evaluation of consumer properties of wheat grain flour with the use of biological preparations (Dissertation of candidate of technical sciences). Kuban State Technological University. Guvennov, A. I., Tsykunova, O. V., & Shishulina, I. M. (2015). Methods of application of biopreparations for preserving grain with high moisture content: Methodological recommendations. Dyatlovy Gory. Kabalina, D. V., Pershakova, T. V., Gorlov, S. M., Mikhailyuta, L. V., & Babakina, M. V. (2018). Antagonistic activity of biopreparations against phytopathogens of the bacterial and fungical nature. New Technologies, 2, 36–41. Kazimirova, M. A., Pershakova, T. V., Kudinov, P. I., & Dikolova, E. E. (2017). Influence of nutritional supplements on wheat flour baking properties and rheological dough properties during bakery goods enrichment. Izvestiya Vuzov. Food Technology, 5–6, 56–60. Panasenko, E. Yu., Krasina, I. B., Pershakova, T. V., & Viktorova, E. P. (2018). Modern methods of biocontrol of phytopathogens of vegetable raw materials. Izvestiya Vuzov. Food Technology, 2–3, 13–18. https://doi.org/10.26297/0579-3009.2018.2-3.3 Pershakova, T. V. (2012). Formation of consumer properties of bakery products using preparations of microbial and plant origin (Synopsis of dissertation of doctor of technical sciences). Moscow State University of Food Production.

Efficiency of Biopreparation Treatment of Wheat Grain; Baking Properties of Flour … Sattarov, K. K., Tukhtamisheva, G. K., & Nuriddinov, B. R. (2021). Improving the technology of obtaining flour from wheat grain. Education and Law, 7, 236–241. https://doi.org/10.24412/20761503-2021-7-236-241 Shazzo, A. U., Kucheruk, S. R., Matsakova, N. V., Chebotarev, O. N., Gritsenko, O. G., & Ziyatdinova, V. A. (2016). Current state and development prospects of milling and breadmaking industry in Russia. Scientific Works of the Kuban State Technological University, 14, 377–382. Shubina, L. N. (2009a). Formation and evaluation of consumer properties of triticale grain flour with the use of biological preparations (Dissertation of candidate of technical sciences). Kuban State Technological University.

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Shubina, L. N. (2009b). Formation and evaluation of consumer properties of triticale grain flour with the use of biological preparations (Synopsis of dissertation of candidate of technical sciences). Kuban State Technological University. Shubina, L. N., Derenkova, I. A., & Belousova, S. V. (2020). Food safety in consumer cooperative enterprises. Novatsiya. Telychko, L. (2021). Influence of biological preparations for plant protection on plant formation and yield of sugar corn. German International Journal of Modern Science, 8, 4–8. https://doi.org/10. 24412/2701-8369-2021-8-2-4-8

Experience of Cooperation of All Levels of Education in the Process of Project Development Maria M. Ivashina , Elena A. Orekhova , Natalia A. Efremova , Lidia E. Platonova , and Elena G. Kirikutsa

Abstract

This article presents the experience of interaction between different levels of education in the process of project development and implementation. The article reflects the features and methods of implementing project-based learning in the system of education and training of specialists, as well as their impact on the development of youth entrepreneurship in general. Keywords

.

Project management Digital platform Youth entrepreneurship

.

Cooperation

.

JEL Codes

M2

1

.

M210

Introduction

Entrepreneurship is a key determinant of the socio-economic development of the country. Entrepreneurship can rightfully be considered a national asset, since these are new enterprises, and, consequently, new jobs; this is an increase in

M. M. Ivashina (&) . L. E. Platonova Volga Region Cooperarive Institute (branch) of Russian University of Cooperation, Tolyatti, Russia e-mail: [email protected] L. E. Platonova e-mail: [email protected] E. A. Orekhova . N. A. Efremova Yuri Gagarin State Technical University of Saratov, Saratov, Russia E. G. Kirikutsa First Moscow State Medical, University of the Ministry of Health of the Russian Federation (Sechenov University), Moscow, Russia

national income; the development of business communities and much more. Entrepreneurship, in accordance with the approach of J. A. Schumpeter, it is regarded as the fourth factor of production (after labor, land and capital). And it is this approach that considers entrepreneurship as the activity of economic entities whose function is to implement new combinations. Entrepreneurs are a special type of people prone to innovation, who have always been in the minority. The essential characteristic of entrepreneurship is organizational and economic innovations, or, literally, “new combinations of factors of production” (Schumpeter, 1982). And entrepreneurial innovations, if successful, can significantly improve the standard of living. As is well known, entrepreneurship in Russia is going through the most difficult path of its formation and therefore requires the closest attention. According to the sociological research of the analytical center of Synergy University, the main reason hindering the development of entrepreneurship is the limited finances and capital (42.6%). Another reason is the lack of knowledge and business scaling strategy (40.5%). Moreover, this trend is observed not only among young and start-up entrepreneurs, but also among existing ones. These figures indicate a low level of entrepreneurial literacy. Also, factors such as the inability to choose a niche, lack of understanding where to start, lack of knowledge about how to attract the first customers and form a team act as a barrier for those who want to start their own business. It is very important to develop a culture of entrepreneurship from an early age. In this regard, it is possible to single out youth entrepreneurship. This is an entrepreneurial activity carried out by citizens of the Russian Federation whose age does not exceed 35 years and registered as individual entrepreneurs. In addition, these may be Russian commercial organizations whose founders (participants) are citizens of the Russian Federation. Their age does not exceed 35 years, and in whose staff at least 70% of

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_137

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employees are citizens of the Russian Federation who have not reached the age of 35 (Ivashina et al., 2020). The digital economy has become a fruitful ground for youth entrepreneurship: Internet platforms, webinars, visiting forums, online consultations, mobile applications and more. Relatively recently, a new term “digital trust” has appeared—a concept that defines confidence in the reliability of all components of digital interaction: users, processes, devices, technologies and vendors. In the current circumstances, this concept is fundamental (Orekhova, 2020). Thus, the relevance of the development of entrepreneurial literacy and culture among young people is beyond doubt. And the involvement of young people in the social, economic, and innovative spheres of life is most effective through the creation and implementation of projects. An important aspect in the creation of projects is the platforms available to young people. And, first of all, educational organizations can act as these platforms. The purpose of this article is to show how it is possible, at the present stage, to carry out cooperation of various levels of education in the development of projects. The article presents the Institute’s experience in this field. The article presents an example of successful cooperation of a higher school, college and secondary school on the basis of the Volga Cooperative Institute, the purpose of which is training in project management at all levels of education, including through digital cooperation.

2

Methodology

Analyzing cooperation in the development of projects, it became necessary to distinguish between such concepts and categories as: “project” and “project management”. Many sources indicate the identity of these concepts, but they differ. A project is a list of actions that have certain features, among which it is possible to distinguish: • goals (specific, real, understandable, comparable and time-bound); • resources that are comparable to goals; • clearly defined time-limits of the project—the beginning and the end. Project management is defined as certain activities that contribute to achieving the set goal, while taking into account the risks of implementing the planned plan, minimizing them and managing changes (Ivashina, 2021). Youth entrepreneurship receives support in various forms and subjects of the Russian Federation. In Russian practice, there are separate initiatives aimed at supporting and

developing youth entrepreneurship. These are mainly student initiative clubs, project offices, direct implementation of projects in the learning process, creation of project portals and websites, platforms. It is possible to identify methods that are successfully used in the formation of project-based learning in higher education: 1. organizational changes—direct implementation of projects in the learning process, both of individual institutes and individual specialities; 2. managerial changes—the creation of separate structures and departments that are directly the organizers and managers of project work in higher education in individual institutes; 3. personnel changes—involvement of teachers-specialists in this field in the training process, their professional development and retraining, as well as the involvement of practitioners and curators; 4. changes in the assessment of the level of competence and education of the student, namely, the introduction of new educational formats, credits; 5. new channels of interaction, for example, the creation of project portals and websites, platforms (Ivashina, 2021). At the moment, there is a wide variety of project management tools, both technical and technological. However, none of these tools is universal or the most successful for all types of projects (Bukach & Romanov, 2021). The process of cooperation in project management training can be considered another way to support youth entrepreneurship, since it contributes to understanding what project activity is, allows you to form a project culture, develops students’ ability to predict, analyze, correct goal setting and process regulation.

3

Results

On the basis of the Institute, the work of the “Youth Entrepreneurship Laboratory” is carried out, within the framework of which the following features are provided: • each lesson is divided into two parts—first, the presentation of new theoretical information, and then, practical work and the direct application of the information received in practice; • each team has its own mentor, selected from among the teaching staff; • conducting the necessary consultations of practitioners and representatives of entrepreneurs of the region; • presentation of finished projects and their further promotion.

Experience of Cooperation of All Levels of Education in the Process of Project Development

The elements of cooperation within the framework of this project can be distinguished as follows: 1. Organizational Elements: • the process of working on the project is controlled by several parties: the head of the laboratory, the mentor of the project and a consultant from among the entrepreneurs of the region; • curators of projects can be students of higher educational institutions with experience in the field of project management. 2. Elements of a Social Nature: • students of the institute and college interact and develop joint projects with students of educational organizations; • students of educational organizations take part in scientific and practical conferences organized by the Institute; • joint work on a project of three levels of training allows students of the Institute to acquire additional competencies in the field of communications, improve human resource management skills, project management abilities: college students develop competencies in the field of project management, the ability to work in a team; students of general education organizations are given a real chance to show their worth, gain self-confidence, and the ability to develop and implement a project. Throughout the entire period (calculated for the academic year), the process of working on the project does not stop. Thanks to the cooperation of all levels of education, the project is a well-developed product of the work of the entire team. Considering the process of cooperation in the development of projects, one more project should be highlighted: the mentor project on the University 20.35 platform. University 20.35 is the first network university of a new type in Russia, which combines research and educational organizations, as well as an IT company. This digital platform acts as a research and educational organization. The process of teaching and training mentors takes place in an online format. An educational organization is a content that cooperates with hundreds of thousands of users. This is a real example of cooperation of own educational resources, opportunities of higher educational institutions, companies, platforms and people to achieve specific educational results. The “School of Project mentor” provides for a network project-educational intensive format of project-oriented education, combining:

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• teamwork on a technological project; • training according to individual educational trajectories; • digital tools for educational process management (https:// intensive.2035.university/mentors21). Teachers of higher educational institutions and colleges act as mentors. Features of the training format at the project mentor school: • 5 sessions of 3 h, distributed over 2 weeks; • teamwork on a training project; • mentors go through the same stages of project work as students. As the main channels of interaction, the digital platform provides mandatory messengers - communication channels of the team: • zulip; • trello; • telegrams. The peculiarities of cooperation of participants in the project development process, within the framework of the Mentor project of the digital platform “University 20.35”, can be considered: • a digital profile of competencies instead of a diploma; • individual educational trajectory and personal assessment of competencies instead of the general educational program; • cooperation of organizations and digital platforms that gather the best teachers of many universities and practitioners from leading companies instead of a staff of teachers from one university. The consolidation of the information obtained made it possible to build a model of project-based learning at different levels of education, presented in Fig. 1, including organizational aspects for the implementation of educational activities based on the project approach. The basis of the proposed model is project activity. In each of the presented elements, the creative thinking of the student is formed. An important aspect is that the model presented by the authors makes it possible to determine the overall indicator reflecting the achievement of the necessary competencies, which is the final project ready for defense. As a result of the work within the framework of this article, it was revealed that the level of training of students in general education institutions is relatively lower, and this is not due to the level of education. First of all, this is due to the fact that in schools the project is considered as a research work, the product of which will be a written research work.

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SVE (Secondary vocational education: technical schools, colleges)

EDU (Educational organizations: schools, lyceums, gymnasiums)

HE (Higher education: university, institute) Youth Entrepreneurship Laboratory

Representatives of the real sector of the economy (entrepreneurs of the region)

Fig. 1 The model of cooperation of project-based learning at different levels of education. Source Developed and compiled by the authors

Cooperation of educational organizations and digital platforms

Student

Activity

Digital competence profile

Fig. 2 The model of cooperation of project-based learning, united by the digital platform of the “University 20.35”. https://intensive.2035. university/mentors21 Source Developed and compiled by the authors based on ()

Therefore, this project “Youth Entrepreneurship Laboratory” and digital platforms such as “University 20.35”make it possible to fill the shortage of specialists of educational organizations who could develop design technologies (mentors, tutors, etc.). The model presented in Fig. 2 can become the basis of the methodology of project training both in a secondary school and in a higher educational institution. The capabilities of the student are supported and widely used in the technology of developing initiatives and placing projects on the practical plane both by teachers and

employers. This becomes possible if the student has mastered the necessary skills and competencies.

4

Conclusion

The conducted research of the experience of cooperation between schools, colleges and universities in order to cultivate entrepreneurial culture among young people allows us to draw the following conclusions:

Experience of Cooperation of All Levels of Education in the Process of Project Development

1. The cultivation of entrepreneurial culture and competencies in the field of project management should begin at the stage of training in general education institutions. 2. The implementation of projects is an effective tool for the development of youth entrepreneurship in general. 3. Project management training is an important element of improving entrepreneurial literacy. 4. In order to teach young people project management as part of the main learning process, accessible platforms are needed. An example of such a platform was the cooperation of higher education, secondary vocational education and general education institutions is the “Youth Entrepreneurship Laboratory”. The result of the activity of the “Youth Entrepreneurship Laboratory” can be considered: • the study of all stages of the project management process, the testing of this knowledge in practice; • acquisition of skills of conceptualization of a project, resource assessment, team collection and control, results analysis; • acquisition of communication skills, public speaking and presentation of their ideas to the audience. The participation of teachers in the network project-educational intensive “School of project mentor” of the educational platform “University 20.35” allowed: • to acquire skills in working with digital communication channels (improve digital competencies); • to argue and briefly convey your ideas to the team, the curator of the project and the customer; • to monitor the progress of work on the development and implementation of the project using messengers and a digital platform, as well as to observe deadlines for the completion of the project (“digital footprint”).

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• The effectiveness of a systematic approach in teaching project management, consisting in cooperation of all levels of education, is shown. This system is reflected in the authors’ model. • A common indicator reflecting the effectiveness of the functioning of the project training system is a game project ready for implementation in real life. • The synergetic effectiveness of the presented authors’ cooperative model of project-based learning consists in the fact that knowledge, abilities and practical skills are worked out within one platform, which maximally compensates for the gaps of a particular level of education. • The use of digital technologies and digital communications in the system of project education expand the range of opportunities in the development and implementation of projects.

References Bukach, B.A., & Romanov, N.A. (2021). Project management at enterprises: problems of project management at universities and ways to solve them. In Proceedings of the V international scientific and practical conference “development of science and practice in a globally changing world under conditions of risks”, Moscow, July 26, 2021, pp. 189–192. Ivashina, M. M. (2021). Application of the project approach in teaching at different levels of education. Actual Problems of Economics and Management, 2(3), 33–39. Ivashina, M. M., Kaznina, K. A., & Kalinina, D. M. (2020). Youth entrepreneurship in a digital epoch. Bulletin of the Saratov State Socio-Economic University, 1(80), 12–15. Orekhova, E. A. (2020). Digital trust as a contributor to development under uncertainty and turbulence. Bulletin of the Saratov State Socio-Economic University, 3(82), 24–27. Project mentor at the University Intensive 20.35. Official website of “University 20.35”. https://intensive.2035.university/mentors21, Accessed August 10, 2021. Schumpeter, J. A. (1982). Theory of economic development (p. 142). Directmedia Publishing.

Problems of Liability for Illegal Entrepreneurship Committed Within the Framework of Cooperative Legal Relations Andrey A. Klyuev , Tatiana V. Martynova , Irina A. Yakovenko , Tatiana V. Yushkina , and Nellya I. Orfanidi

Abstract

1

The purpose of this work is the need to clarify the assessment, which is ambiguously resolved in scientific circles and within the framework of law enforcement practice, from the position of criminal legislation of actions for the implementation of entrepreneurial activities by subjects of cooperative legal relations in violation of the rules and requirements established in Russian legislation. At the same time, an important condition is a fact of causing significant harm to the interests of the state and other business entities, as well as in such cases when participants in illegal activities receive large profits as a result of their activities. The main research methods are dialectical, methods of system analysis of normative acts and judicial practice, interpretation of normative legal acts, formal legal, as well as comparative legal. Suggestions to improve legislation in terms of assessing behaviour as an illegal business, allowing preventing such negative phenomenon, are also made. The authors offer their positions in terms of assessing the damage caused by illegal business or income from this illegal activity. Keywords

. .

.

.

Cooperative relations Entrepreneurial activity Illegal entrepreneurship Corporate entity Major damage JEL Code

K14

A. A. Klyuev (&) . T. V. Martynova . I. A. Yakovenko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] T. V. Yushkina . N. I. Orfanidi Krasnodar Institute of Cooperation (branch) of Russian University of Cooperation, Krasnodar, Russia

Introduction

In the Constitution of the Russian Federation, Article 8 proclaims the equality and accessibility of all participants in civil legal relations to free civil circulation. As well as economic space that permeates the entire economic sphere. At the same time, the protection of property interests (by indicating the property) from any kind of illegal appeal to it is guaranteed. In this regard, an important and necessary tool to guarantee free economic relations is the observance by the participants of these legal relations of the requirements that are defined in the legislation. For this, the legislator creates the necessary instruments, which include the means of administrative and criminal liability. By establishing a ban on illegal entrepreneurial activity, the state seeks to ensure the protection of economic interests and to prevent possible negative actions in the future. The importance and relevance of the topic, which is under the consideration of the authors, is the fact that the number of illegal business activities, and this also affects cooperative relations, is constantly increasing. Their rise requires certain means to improve legislation and preventive measures. Let’s turn to the data of the Judicial Department at the Supreme Court of the Russian Federation and find that over the past 2020, 4159 people were convicted under Articles 171–171.3 of the Criminal Code of the Russian Federation, dedicated to various kinds of illegal business activities, provided that the number of those convicted for all crimes included in Chap. 22 of the Criminal Code of the Russian Federation, 6m584 people were convicted (http://www.consultant.ru/ document/cons_doc_LAW_10286/). Thus, the phenomenon under consideration raises serious concerns. The theoretical significance of the research lies in the analysis of illegal activities existing in the framework of cooperative relations, proposals for improving Russian legislation in order to reduce their number. This article is

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_138

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designed to help improve the security of business relations with the participation of cooperative entities. Criminal legislation is an important tool for protecting all kinds of relations from negative forms of their manifestation. It defines those acts that cause the most significant harm to the interests of the individual of society and the state, with their subsequent prevention. Moreover, the importance and relevance of these relations are determined by some other industries that need such protection. This also applies to civil legislation, including in the area of detail of cooperative entities. It’s in the civil legislation that legal forms of participation in entrepreneurial activities are defined, which benefit individual entities and the entire state. So, it’s necessary to find out the requirements for legal activity in order to determine the importance and complexity of negative manifestations in entrepreneurial activity, which will have signs of a crime under Article 171 of the Criminal Code of the Russian Federation. Let’s turn to paragraph 3 of paragraph 1 of Article 2 of the Civil Code of the Russian Federation: it’s customary to consider the activities of economic entities with official status (registered in the prescribed manner), which they carry out independently, at peril and risk. As a result of which they systematically will make a profit due to the use of their or leased property, the sale of goods, the performance of various types of work or the provision of all kinds of services. This situation presupposes the need to take into account several circumstances for the legal activity to become legal, which doesn’t entail negative measures.

2

Materials and Methods

The methodology of the prepared material was the use of materialistic dialectics, which is a tool for the cognition of various kinds of phenomena. Illegal business activity always has external manifestation and negative consequences, which is learned and considered by the authors. The authors also used the method of systems analysis, which makes it possible to link the legislation of various industries that regulate entrepreneurial and cooperative relations. The statistical method is widely used, which demonstrates the real state of affairs in matters of illegal business activity. The authors also applied a formal-logical method that made it possible to come to important and well-founded conclusions on the work.

3

Results

It should be stated that, despite the positive dynamics that exist in our state, with regard to the issues of determining the directions for further improvement of modern mechanisms

for countering such criminal behaviour as illegal entrepreneurship committed in the area of cooperative relations, in practice, and sometimes in scientific circles, new complex, and controversial problems of the application of the provisions of the criminal legislation. Such a situation is evidenced by the legislative use in Article 171 of the Criminal Code of the Russian Federation of the concept of “income” obtained as a result of illegal actions in the framework of entrepreneurial activities. The authors propose to resolve the current problem that has been discovered in the process of study, which will increase the quality of the application of the legal norms, which were considered by the authors. To make the evaluative attribute “income” concrete and understandable for ordinary people and the law enforcement officer, its character should be included in Article 171 of the Criminal Code of the Russian Federation, Note 1, which has the following content: “Income within the framework of this article of this Code, as well as Articles 171.1, 171.2 and 171.3. It’s necessary to recognize the value of all funds received by a person from illegal entrepreneurial activities”. Certain problems in terms of a comprehensive solution to the issues of determining the size of negative consequences or income from entrepreneurial activity can be solved through the establishment in the Criminal Code of the Russian Federation of Article 171.6 “Illegal entrepreneurship committed by a person subjected to administrative punishment”. This would make it possible not to try to combine different situations of administratively punishable illegal entrepreneurship, considering everything as an ongoing crime, but to give such acts an independent meaning, using the mechanism of crimes with an administrative prejudice. The use of the provisions of this institution would eliminate the need to prove the amount of damage or income, and it, at the same time, would also solve the problem of qualifying unfinished crimes.

4

Discussion

The consistency of making a profit is a complex and important feature that will take place for evaluating activities as entrepreneurial with an illegal bias. In this regard, the authors agree with the opinion of Aistova that the person, who acquires a dwelling for his demands (including if he inherited it by inheritance or in connection with a donation), but due to the lack of the need to use this property, rent it out an, receives monthly payments, and doesn’t commit a criminal act (Aistova, 2002). Lopashenko notes, that thereby the issue of regulation of normal entrepreneurial activity is a necessary prerequisite for its protection, so it’s recognized by scientists as an object of a criminal act (Lopashenko, 2018).

Problems of Liability for Illegal Entrepreneurship Committed Within the Framework of Cooperative Legal Relations

This explanation is very important because in Article 171 of the Criminal Code of the Russian Federation the legislator establishes criminal liability for some acts that are recognized as crimes. First of all, it’s necessary to find out what kind of behaviour constitutes the essence of the unlawful act for responsibility. First of all, the implementation of risky activities is aimed at making a profit by a person (independently and collectively), which isn’t registered according to the requirements of Russian civil legislation. It’s important to understand that in this situation there is an action that presupposes the performance of the same function as by normal participants. However, the state authorities control safe conditions, fiscal functions, etc. The registration procedure is directly determined in the Federal Law No. 129-FZ of August 8, 2001 “On State Registration of Legal Entities and Individual Entrepreneurs”, based on which this fact is confirmed by the corresponding entry made by the registering authority in the state register of legal entities or citizens of entrepreneurs. It’s also important to take into account the fact that for such a participant in cooperative relations as peasant farms is the moment when its head is entered into the state register of peasant (farm) farms (2001). Kovalenko notes, that a violation will take place if the participant ceases his activity and his decision is formalized, but later he continues his actual entrepreneurial activity, without the renewal of this status (Kovalenko, 2020). The second form of illegal entrepreneurship, provided for in the criminal legislation, is the implementation of activities without obtaining special permission from state authorities (licenses, when its obtaining is recognized as an obligation). It’s important to take into account that the list of activities subject to licensing is determined by the Federal Law No. 99-FZ of May 4, 2011 “On Licensing of Certain Types of Activities” (2011). While analyzing law enforcement practice, this activity may be due to pharmaceutical activities, medical services, the sale of products limited in civil circulation, etc. An example of such illegal activity is the criminal case against Murzaev: he, having no labour relations with individual entrepreneurs, acting from selfish motives aimed at illegal material enrichment and generating income on an especially large scale, realizing the social danger of his actions, foreseeing the possibility of socially dangerous consequences, and wishing them to occur, independently carried out pharmaceutical activities through a seller, who wasn’t aware of the lack of registration of Murzaev, in the tax authority as an individual entrepreneur, about the lack of Murzaev, the appropriate license to carry out pharmaceutical activities and about his criminal actions aimed at systematic profit from the sale of drugs and other goods. Finally, the recently introduced amendments to the Criminal Code of the Russian Federation have led to the

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emergence of a third form of illegal entrepreneurship—the technical inspection of vehicles and obtaining special accreditation for this in the national accreditation system. Any of the considered actions entail criminal prosecution, not for the very fact of their implementation, but only when negative changes (consequences) arise as a result of such behaviour, or when the perpetrator receives a significant death that is not taxed, which causes harm to the state. The first option is associated with the onset of consequences, the size of which is of fundamental importance for the issues of corpus delicti. Based on the footnote to Article 170.2 of the Criminal Code of the Russian Federation, this amount is two million two hundred and fifty thousand rubles. The authors think that it’s very impressive, but at the same time, it happens to establish precisely the fact of its infliction by illegal actions of a participant in economic activity. While using a simple cash register in a store that sells alcoholic beverages without a license, it isn’t always possible to have a clear idea of the volume of everything illegally sold. In this regard, the authors agree with the opinion of Medvedev that witness testimony quite often serves as confirmation only of the fact about the illegality of engaging in entrepreneurial activity subject to licensing. However, it’s impossible to determine the volume of everything caused by such a guilty person (Medvedev, 2019). Even more problems in the law enforcement process arise in connection with the consideration of such a feature as generating income on a large scale as a result of illegal entrepreneurial activity. Its size is similar to the previously discussed scale in relation to harm. The difficulty stems from the term income here. Scientists often try to identify the attribute under consideration with the term “economic profit”. However, this can lead to a significant narrowing of the issues of criminal law impact. After all, profit is determined by the difference in funds received from activities minus the costs incurred. In criminal law, this approach can’t be correctly considered. The authors suppose that the concept under consideration should be given a broader meaning. In particular, the entire volume of proceeds received in connection with the sale of goods (works, services) for the entire period of illegal entrepreneurial activity must be associated with the receipt of income, without including in it deductions of expenses incurred by a person in the framework of this activity. So, it’s often possible to come across an assessment of a person's behaviour as an attempt on illegal business, with the establishment of the actual cost of the product that the culprit intended to sell. In one of the verdicts in the case of illegal business, the court indicated the following: “In accordance with the expert opinion of September 20, 2019, the samples presented, seized on November 12, 2018, are smoking tobacco products—filter cigarettes and without a filter.

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Excise stamps pasted on the samples submitted for research, i.e., packs of cigarettes, such as: “Crosses (red)”, “Stewardess”, “Cosmos”, “VT”, “Capital”, “Prima”, “Prima Dona”, “Crosses (blue)” weren’t made at the printing company “Goznak”, but they were made by the method of flat offset printing in violation of the manufacturing technology of this type of printing products on the territory of Russia. There are no excise stamps made at the “Goznak” enterprise on the other samples. The total market value of the goods as of November 12, 2018, in the Russian market is 12,598,565 rubles 58 kopecks”. All of this testifies to the importance and complexity of considering the sign of the composition of illegal entrepreneurship, carried out within the framework of cooperative legal relations.

5

Conclusion

This research allows stating that criminal law provisions on illegal entrepreneurship, including in the area of cooperative relations, require further study in terms of legislation and law enforcement practice, which will help to increase the effectiveness of countering this negative phenomenon.

Considering the issues of qualification of illegal entrepreneurial activity in terms of cooperative relations, it’s necessary to combine objective and subjective circumstances, which will avoid violation of the law.

References Aistova, L. S. (2002). Illegal business. Russia, Saint Petersburg. Federal Law No. 129-FZ of August 8, 2001 (revised 02.07.2021 No. 354-FZ) “On State Registration of Legal Entities and Individual Entrepreneurs”. Accessed 10 December 2021, http://www. consultant.ru/document/cons_doc_LAW_32881/ Federal Law No. 99-FZ of May 4, 2011 (revised 02.07.2021, No. 354-FZ) “On Licensing of Certain Types of Activities”. Accessed 10 December 2021, http://www.consultant.ru/document/ cons_doc_LAW_113658/ Kovalenko, T. S. (2020). Problems of prosecution for illegal business. Russian investigator, No. 5. Lopashenko, N. A. (2018). Crimes in the sphere of economic activity: About the ruins of the criminal law. Russian laws: Experience, analysis, practice, No. 2. Medvedev, E. V. (2019). Illegal entrepreneurship in the light of the prospects for the humanization of the criminal legislation of Russia. Business security, No. 5. Statistical data of the Judicial Department at the Supreme Court of the Russian Federation. Accessed 12 October 2021, http://www. consultant.ru/document/cons_doc_LAW_10286/

Business Support During the Pandemic: View of the Representatives of the European Cooperative Movement Olga V. Shinkareva , Olga V. Kaurova , Valery A. Oganyan , Peter Karacsony , and Alexander N. Maloletko

Abstract

Keywords

Purpose: The main purpose of this study is to analyze the impact of the pandemic on the state of the cooperative economy in Europe and measures to support it, depending on the size of each company, based on the data presented in the report “The COVID-19 crisis and its economic and social impact on cooperatives across Europe” (https:// coopseurope.coop/sites/default/files/Covid19%20Report_ CoopsEurope-compressed.pdf). The study covered 18 countries and more than 10 national associations of cooperatives, representing about 90% of the cooperative movement in Europe, and made it possible to identify the most effective measures for the development of the cooperative movement in the current conditions. Methodology: A number of scientific methods such as grouping and comparison, analysis and synthesis, tabular methods have been used to achieve the goal. It was noted that, depending on the size of the enterprise, the necessary support measures, including financial ones, differ, this should be considered by the authorities when developing programs to help cooperatives. Results: The results of the research provide an opportunity for their application in further scientific developments on this or a similar topic. Originality: The originality of the study lies in the analysis of data on the necessary measures to support cooperatives, depending on their size and recommendations for using the data obtained to develop programs to help the cooperative economy.

COVID-19 Cooperatives World economy Trends

O. V. Shinkareva (&) Moscow City University, Moscow, Russia e-mail: [email protected] O. V. Kaurova . V. A. Oganyan . A. N. Maloletko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] P. Karacsony Estvos Lorand University, Budapest, Hungary e-mail: [email protected]

. .

.

Cooperatives Europe

.

JEL Code

P13

1

Introduction

The global cooperative movement plays an important role in the world economy (Role and of Cooperatives in Achieving the Sustainable Development Goals—The Economic Dimension, 2014; Sorokina & Zarubina, 2011). The new coronavirus infection COVID-19 has significantly affected the economy of the cooperative movement, as well as the economies of all countries. Cooperatives Europe, an intersectoral organization of 86 associations from 34 European countries (including the Central Union of the Russian Federation), with 140 million cooperators who own 176,000 cooperative enterprises and employ 4.7 million European citizens—the power of economic growth and social change, conducted a survey of participants about the impact of COVID-19 on their activities. The analysis of this report makes it possible to assess the impact of the pandemic on the cooperative economy in terms of the size of the cooperative and, thereby, to take more effective measures to stimulate cooperative activities in the current conditions.

2

Methodology

The reports of Cooperatives Europe “The COVID-19 crisis and its economic and social impact on cooperatives across Europe”, “Cooperatives Europe’s position on COVID-19 crisis response and looking forward”, data of the official site

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1_139

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Cooperatives Europe (Cooperatives Europe’s Position on COVID-19 Crisis Response and Looking Forward, 2020; COVID-19 Coop Response, 2020; Europe, 2021; The COVID-19 Crisis and Its Economic and Social Impact on Cooperatives Across Europe, 2020) were used as research materials. The report “The COVID-19 crisis and its economic and social impact on cooperatives across Europe” covered 18 countries and more than 10 national associations of cooperatives, representing about 90% of the cooperative movement in Europe. The report is structured by types of enterprises: • micro business (number of employees—less than 10, annual turnover—no more than 2 million euros)—41% of the surveyed cooperatives, • small business (number of employees—less than 50, turnover—no more than 10 million euros)—29% of the surveyed companies, • medium-sized enterprises (number of employees—less than 250, turnover—no more than 50 million euros)— 14% of respondents, • large cooperatives – 16%. The scientific research of various scientists in the field of the cooperative movement was also used (Maloletko et al., 2021; Repushevskaya et al., 2021; Shinkareva et al., 2021). Such scientific methods as grouping and comparison methods, analysis and synthesis, tabular method, etc. were applied to achieve the objectives of the study.

3

Results

The COVID-19 pandemic has caused significant damage to the economy, including most of the cooperative enterprises —most of them have experienced a decrease in turnover, and therefore, many of them have been forced to reduce their costs. At the same time, the impact and response to the pandemic in cooperative enterprises varied depending on the size of the company. The pandemic hit the staff of micro and small cooperatives most of all—most representatives of micro, small and medium-sized businesses used various forms of reducing the employment of employees, while in large businesses this was practiced by every third enterprise. Thus, in order to help the cooperative economy, it is necessary to provide various support measures depending on the size of the enterprise—for example, micro and small businesses need, first of all, deferral of mandatory payments, while a medium-sized business needs recommendations on business continuity planning (advice with business continuity

planning), and a large one—to ensure the supply of personal protection equipment (supplies of personal protection equipment). Cooperative enterprises, regardless of their size, prefer new grants and then tax reliefs as financial aid. The authorities are encouraged to inform the cooperative movement about programs to support it, because it is the state bodies that are first contacted by company representatives to obtain relevant information. The cooperative movement quickly responded to the crisis, and many organizations provided support to the population and businesses in difficult times. For example, in Italy, a cooperative taxi offered free grocery deliveries and free transportation to people over 65; French cooperative banks opened credit lines in the amount of 100 million euros for hospitals and medical centers; in Germany, many housing cooperatives deferred rent payments to private and commercial tenants. experiencing difficulties due to the pandemic, in Russia in a number of regions, public catering enterprises, including cooperatives, provided meals to medical workers and other employees on the first line of the fight against infection (COVID-19 Coop Response, 2020). However, the pandemic has negatively affected the activities of most cooperative enterprises, in this regard, Cooperatives Europe conducted a survey of them to find out the most effective support measures for them. Let's consider its results in more detail. The first question posed to the respondents was as follows: “Has the pandemic affected the activities of your enterprise?”. Almost all cooperatives noted that COVID-19 affected the economy of companies to some extent (about half of the respondents) or significantly (more than 40%). Only less than 10% of representatives of small and large cooperatives did not notice the impact of the pandemic. It should be noted that the most negative consequences were noted in the microbusiness sector—almost all respondents noted a significant decrease in their turnover. Among small and large cooperatives, the answer about a slight decrease in turnover prevailed, and representatives of medium-sized businesses were the least affected—12.5% noted a certain increase in revenue—mainly representatives of the social sphere and medicine. Few cooperatives have opened up new, unexpected business opportunities thanks to the pandemic— in particular, Spanish textile cooperatives have repurposed production to make masks and gloves, a large Bulgarian cooperative has set up mobile vans to deliver fresh and affordable food to villages experiencing difficulties with the supply of products. As a result, in order to cut costs, cooperatives were forced to cut staff costs—and here large enterprises turned out to be the most stable—the use of temporary unemployment

Business Support During the Pandemic: View of the Representatives of the European Cooperative Movement

schemes was noted by almost every third respondent. Other methods of reducing labor costs were not practiced by large enterprises. Small businesses were forced to actively reduce this type of expenses—temporary unemployment schemes were used by almost 70 and 80% of small and microcooperatives. Representatives of small and medium-sized businesses also actively used the reduction of working hours (short-time work)—more than 20% of micro- and almost 40% of small cooperatives went for this. The most non-standard behavior was observed among representatives of medium-sized businesses—short-time work is the most popular measure (almost half of the respondents), and temporary unemployment schemes were practiced much less often—only by every fourth respondent. Cooperative enterprises were also interviewed about the support measures they need for survival and development (Table 1). An analysis of the responses shows that cooperative enterprises of different sizes require different support measures during the pandemic. Thus, micro- and small companies prioritize deferring payments for utilities, social security contributions, loans or taxes, while micro-enterprises also need advice with business continuity planning and legal advice on application of labor regulations during crisis. Advice on business continuity planning is required much less frequently for small businesses (19% of respondents vs. 30% for micro businesses), and on the application of labor laws during crisis, they are not needed. At the same time, almost one in five small business representatives surveyed needs supplies of personal protection equipment like masks and gloves or advice on how to prevent infections in the workplace while maintaining business operations. Larger enterprises require much less deferral of payments for utilities, social security contributions, loans or taxes—it was mentioned by 12 and 22% of representatives of medium

Table 1 Necessary measures to support the cooperative movement during the pandemic, %

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and large cooperatives. Recommendations on business continuity planning (advice with business continuity planning) are the most important for medium-sized organizations —almost 40% of respondents—almost 40% of respondents, and for large business, the need to supply personal protective equipment—masks and gloves (supplies of personal protection equipment like masks and gloves) comes first. The same measure is also important for medium-sized enterprises —every fourth respondent mentioned it. For large enterprises, it is also important to defer mandatory payments, as well as legal advice on the application of labor laws during crisis. Cooperative enterprises expressed their attitude to financial support measures (Table 2). The vast majority of cooperatives, regardless of their size, preferred new grants as financial support measures (more than half of SMEs and almost half of large businesses). Tax benefits are in second place (tax reliefs)—they are most important for small (more than 30% of respondents) and medium-sized cooperatives (almost 40%). Additional credit facilities are needed only by a small part of microbusiness. An important aspect here is the sources of information from which the cooperative movement draws information regarding financial support—most cooperatives prefer to address this issue to government bodies (almost half of micro-cooperatives and more than half of representatives of small and large businesses). Representatives of medium and large businesses are actively in contact with the highest national cooperative organization (cooperative national apex organizations), a certain proportion of micro, small and medium-sized businesses (SME) also apply to financial institutions. Thus, it is the authorities who should actively inform the cooperative movement about all existing programs to support it, because they are the main source of information for business.

Support measures

Micro cooperatives

Small cooperatives

Medium cooperatives

Large cooperatives

Deferring payments of utilities, social security contributions, loans or taxes

57

44

12

22

Legal advice on application of labour regulations during crisis

13

–

12

22

Supplies of personal protection equipment like masks and gloves

–

19

25

44

Advice with business continuity planning

30

19

38

11

Advice on how to prevent infections while maintaining business operations

–

19

12

12

Source Compiled by the authors based on “The COVID-19 crisis and its economic and social impact on cooperatives across Europe” (The COVID-19 Crisis & Its Economic & Social Impact on Cooperatives Across Europe, 2020)

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Table 2 Necessary measures of financial support for the cooperative movement during the pandemic, %

Support measures

Micro cooperatives

Small cooperatives

Medium cooperatives

Large cooperatives

Credit facilities

17

–

–

–

Tax reliefs

17

32

38

22

New grants

65

63

63

44

Source Compiled by the authors based on “The COVID-19 crisis and its economic and social impact on cooperatives across Europe” (The COVID-19 Crisis & Its Economic & Social Impact on Cooperatives Across Europe, 2020)

4

Conclusion

The ongoing COVID-19 pandemic undoubtedly creates additional difficulties for the entire business community, including the cooperative movement. The resources of the states allocated to help businesses are limited, so they must be used effectively—to propose those measures that will bring maximum help to businesses. The study by Cooperative Europe showed that cooperatives require different support measures depending on the size of the enterprise, which should be taken into account by the authorities when developing appropriate assistance programs.

References Cooperatives Europe’s Position on COVID-19 Crisis Response and Looking Forward. (2020). https://coopseurope.coop/sites/default/ files/20-04%20Coops%20Europe%20Position%20Covid-19.pdf. Data Accessed 30 September 2021 COVID-19 Coop Response. (2020). https://coopseurope.coop/ resources/news/covid-19-coop-response. Data Accessed 30 September 2021

Cooperative Europe. Official site. (2021). https://coopseurope.coop/. Data Accessed 30 September 2021 Maloletko, A. N., Kaurova, O. V., Ermilova, A. N., Oganyan, V. A., & Steklova, Y. V. (2021). Approaches to the study of factors stimulating the development of cooperation between large and small businesses in Russia and the republic of Belarus. Studies in Systems, Decision and Control, 316, 325–334. Repushevskaya, O. A., Nasretdinova, Z. T., Kuzyashev, A. N., Beschastnova, N. V., & Shamshovich, D. A. (2021). The role of credit cooperatives in financing the real sector of the economy. Studies in Systems, Decision and Control, 316, 3–11. Shinkareva, O., Kaurova, O., Maloletko, A., Vonichenko, M., & Karacsony, P. (2021). Involvement of the world’s largest cooperatives in sustainable development processes. Studies in Systems, Decision and Control, 316, 53–62. Sorokina, I. E., & Zarubina, A. I. (2011). The role of cooperatives in the global economy. Problems of the Modern Economy, 3(39), 64–66. The Role of Cooperatives in Achieving the Sustainable Development Goals—The Economic Dimension. (2014). A contribution to the UN DESA expert group meeting and workshop on cooperatives. The role of cooperatives in sustainable development for all: Contributions, challenges and strategies. 8–10 December 2014 Nairobi, Kenya. https://www.un.org/esa/socdev/documents/2014/ coopsegm/Schwettmann.pdf. Data Accessed 30 Sept 2021 The COVID-19 Crisis and Its Economic and Social Impact on Cooperatives Across Europe. (2020). https://coopseurope.coop/ sites/default/files/Covid19%20Report_CoopsEurope-compressed. pdf. Data Accessed 30 September 2021

The Digital Future of the SDGs in the “Decade of Action” (Conclusion) Yakhya G. Buchaev, Arsen S. Abdulkadyrov, Julia V. Ragulina, Arutyun A. Khachaturyan, and Elena G. Popkova

The “Decade of Action” is of particular scientific and practical value because it combines the philosophical concept of sustainable development with current economic practice, reflected in a specific formulation of the SDGs and a fixed time frame for their implementation. As this book has shown, the global challenges of our time have a considerable impact on sustainable development. However, global challenges should not be interpreted solely as threats—they are also new opportunities. The pandemic is an important signal to humanity from the environment that we need to reconsider our use of natural resources, launching more powerful processes of waste reduction, recycling, and decarbonization. The COVID-19 crisis is nothing more than a normal manifestation of the cyclical nature of the world economy. Despite its pronounced depth, it is similar to the crises that preceded it, and, more importantly, it triggered an upward wave in the global economy. The disintegration of the world economy is just another phase of the globalization process, which has been going on for several centuries and is also characterized by a certain cyclicity (international relations cool down and then warm up).

This book filled a gap in the literature, forming a scientific and methodological basis and a set of applied recommendations on the adaptation of economic systems and economic entities to the current global challenges. The key conclusion of this book is that, at all levels of business, digital technologies enable the most effective use of change management mechanisms and therefore need to be developed as a priority. Simultaneously, the book led to the raising of new research questions. In particular, the question on the future prospects for implementing the SDGs based on digital technology. The book reveals in detail the experience and offers scientific and practical recommendations for improving the practices of Industry 4.0 technologies. However, over the “Decade of Action,” there is a high probability of a new (fifth) industrial revolution, which will result in a transition to Industry 4.0. This will require rethinking the mechanisms of adaptation to global challenges and may even become a new challenge. Thus, the study of global challenges requires a whole series of continuous, multi-year studies, which are advisable to continue in further scientific research.

Y.G. Buchaev Dagestan State University of National Economy, Makhachkala, Republic of Dagestan, Russia e-mail: [email protected] A.S. Abdulkadyrov Dagestan State Technical University, Makhachkala, Republic of Dagestan, Russia J.V. Ragulina RUDN University, Moscow, Russia e-mail: [email protected] A.A. Khachaturyan Institute of Market Issues of the Russian Academy of Sciences, Moscow, Russia E.G. Popkova RUDN University, Moscow, Russia © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 Y. G. Buchaev et al. (eds.), Challenges of the Modern Economy, Advances in Science, Technology & Innovation, https://doi.org/10.1007/978-3-031-29364-1

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