Economic Sciences/9. Economic industry

KHILINSKAYA I.V.

Financial university at Government of Russian Federation,

Chelyabinsk branch, Russia

The simulation market sustainable competition the

timber industry complex

Modern development of socio-economic relations in Russia makes objective requirements for the decision of a question of formation and realization of the control system sustainable competition  of the timber industry complex.

The objective preconditions for that have been created by the Forest code and ratified in 2012 Protocol on Russia's accession to the WTO.

The experts [2] there are possible variations for situations of Russia on the issue of WTO membership. The latter include: the strengthening of integration of Russia into the world economy; the need to meet high world standards of quality; the strengthening of the competition and its results (reduction of costs, increase of efficiency of economy, the increase of the assortment and nomenclature of the products; attraction of foreign investments in the economy [2].

Taking into account the conditions on the domestic and the world market and determining the point of economic growth in the long term timber enterprises must take into account all these aspects in the implementation of the programme of sustainable competition, using the existing economic potential.

Russia has a powerful natural resources in General and forest potential, in particular in 2011, the food and agriculture organization of the United Nations (Food and Agriculture Organization of the United Nations - continue FAO) published a major report of the global assessment of natural resources, 2010. This report was compiled on the basis of the statements 223 countries of the world, including Russia.

According to the FAO in 2010, the area of forests in the Russian Federation amounted to 49% of the land area, or 809090 ha. The annual rate of change of forest area amounted to: year 2000 to 1990 levels increase by 0.04%, 2005 to the level of 2000 reduced by 0.01%, year 2010 to the level of 2005, an increase of 0.04%. The permanent forest Fund makes 22% of the forest area, and 2% are forests in protected areas.

Describing the forests of Russia in comparison with some countries, defined structure, in table 1[11]

Table 1 - Characteristics of forests, in % of the total forest area

Country,

Untouched forest

Forest restored independently

Plantation

Russian Federation

32

66

2

China

6

57

37

Finland

0

73

27

Germany

0

52

48

Ukraine

1

49

50

Belarus

5

74

22

Canada

53

44

3

USA

25

67

8

 

According to the table, the main share of forests in the Russian Federation occupies the forest restored independently, and the share of plantations significantly small.

The annual rates of change of the area of plantations amounted to: year 2000 to 1990 levels increase of 21.4 per cent, 2005 to the level of 2000 year increase of 10.4 per cent, 2010 to the level of 2005, an increase of 0.2%. Unfortunately, it should be stated that during the past five years, the area of plantations practically does not grow.

The stock of trees in the forests amounted to 81523 million m3 is 100% of the commercial species, including: 75,5% is coniferous, and 24,5% of deciduous species.

Of great importance to ensure конкурентоустойчивости of the timber industry complex has a forest policy of Russia.

Forest policy is aimed at the preservation of the forests, the maximum satisfaction of the needs of the population of the Russian Federation to the quality of products, services and полезностях forests, increase of economic efficiency of forest use, creation of a state level on the conditions ensuring sustainable and dynamic development of the forestry sector [12].

For this it is necessary to implement the following goals in the economic, social and environmental fields[12]:

-       in the economic sphere is- the achievement of the maximum gross domestic product in the forestry sector, while balancing environmental and social interests, competitiveness and modernization of forest sector;

-       in the sphere of environment - creation of- favorable environment for life of the population, preservation of biological diversity of forest and other ecosystems, introduction of resource-saving and ecologically safe technologies;

-       in the social sphere, improving the living- standards related to the forest people, creation of new high-quality jobs, improvement of social security.

The objectives of forest policy are [12]:

-       the effective protection of and protection of forests;

-       providing- a high-quality reproduction of forests;

-       increase the ecological potential- and the conservation of forest ecosystems;

-       development of deep chemical and- chemical-mechanical processing of wood;

-       increase in the production of- innovative products;

-       enhance the scientific-technical and technological- potential of the forestry sector;

-       the development of the internal market of- timber and paper products;

-       decrease of dependence of the Russian commodity- market of timber and paper products, imported from abroad.

The priority issues in the formation of forest policy are issues of state management of forests, reproduction and protection of forest Fund.

In Russia and foreign countries, there is a different approach to the formation of forest policy and this is due primarily to the form of ownership of the forests and the right to manage them - table 2.

Table 2 - Form of the ownership of the forests and the right to control, % [11]

Country

Form of ownership

The right holder in the management of public forests

Public

Private and other

State administration

Commercial structures

Other

Russian Federation

100

0

83

17

0

China

68

32

100

0

0

Finland

32

68

100

0

0

Germany

53

47

100

0

0

Ukraine

100

0

91

0

9

Belarus

100

0

100

0

0

Canada

92

8

100

0

0

USA

43

57

100

0

0

 

The table below shows that in the majority of countries represented a form of ownership of the forests mixed, with the share of the private property is 32% and above, while the management of forests on 100% are engaged in state bodies.

In China in a private property is located 32% forest and at the same time China is the largest producer of timber products. In Finland, about 68% of the forests belong to private owners (about 128 thousand private owners), and the state carries out the control over forest use: if within the period of five years, the owner is not involved in reforestation or data work carried out without ensuring compliance with applicable rules and standards of forest exploitation, that such plots are withdrawn and transferred to the state ownership.

In Germany the private owners owns 47% of the forests. The state monitors compliance with the Federal legislative acts on the protection and nature protection and the implementation of the forest policy is being implemented with the support of the budgetary financing. In Canada, about 90% of the forests are in public ownership, but forest management shall carry out the province.

In the United States, slightly more than half of the forests belong to private owners. The state allocates loans for the replenishment of seed funds and monitors the observance of the legislation in the field of environmental content of forest [3]. In many countries is successfully implementing the programme of effective forest management and reforestation.

In its report the FAO identifies the priority functions of forests, for which data for individual countries are presented in table 3[11]:

Table 3 - Priority functions of the forest, %

Country

Manufacture

Protection of soil and water

Conservation of biodiversity

Social services

Multi-purpose use

Other

Russian Federation

51

9

2

2

10

26

China

41

29

4

2

24

0

Finland

87

0

9

н.с.

4

0

Germany

0

0

26

0

74

0

Ukraine

46

31

4

19

0

0

Belarus

50

19

14

18

0

0

Canada

1

0

5

0

87

0

USA

30

0

25

0

46

0

 

The table below shows that of the presented countries only two countries (Germany and Canada) as a priority, the use of multi-purpose function of the forest. The majority of countries, the use of the forest mainly for production activities, which indicates the not complex  use of forest resources. This raises a problem of their restoration, as the forest policy of Russia determines not only the use of the forest, but also the preservation of the forests.

As FAO notes that in Russia in 2006 was adopted the forest code, but there is no national and territorial forest policy [11].

In the current forest code lays down the functions of management of Federal centre and subjects of the Federation in order to increase the investment attractiveness of the forest sector.

The regional authorities in order to improve the manageability in a timber industry complex pursue a policy of consolidation of forest users[3].

The new forest code of the Russian Federation assumes the following structure of the timber industry complex management [5]:

1. Federal authorities determine the content of the forest code of the Russian Federation, normative acts, state forest inventory and forest management, planning and delivery of subventions; carry out the control and supervision of the execution of powers, the Russian legislation in the tax, investment, innovation, external economic sphere; create public institutes of development; specify the schedule of gradual increase of export duties on unprocessed timber; establish the abolition of import duties on imported high-tech equipment and export duties on the products of processing of wood, forming the concept and requirements for the content and order preparation of investment agreements, and develop forest management plans, forest Declaration, activities on forest management.

2. Regional authorities determine the content of the regulations, the execution of powers; form the forest plans, forest management regulations, forest register; create a system of zoning of territories; establish the state forest protection service, the laws of the subject of the Russian Federation in tax, investment, innovation, external economic sphere, creating institutions for the development of regional level, provide subsidies, tax benefits on profit and property; shall exercise forest control and management functions, activities on forest management, design work.

Changes in the nature of control caused the corresponding change in the practices of management of the timber industry complex. It became obvious that efficient management is possible only if such change of the system and methods of control, which would allow to ensure an optimal level of controllability of timber industry complex in the new economic and social conditions [5].

Examining the concept of «timber industry complex» it should be noted that in its composition shall include the enterprises of the sector forestry and the provision of services in this area, as well as forestry and logging and the provision of services in this area [9].

The regional timber industry complex is defined as geographically localized set of kinds of economic activities based on the use, preservation, protection, reproduction of forest resources, as well as associated with him manufacturing enterprises, state and public organizations in the process economic activity [5].

The timber industry complex is an important factor of formation of socio-economic development strategy of the Russian Federation, as closely linked with the various sectors of the economy.

 

 

 

 

 

 

 

 

 

 

 

 


Picture 1 - the Relationship of the timber industry complex with other sectors of the economy

All of the components of the timber industry complex must interact harmoniously to achieve the maximum economic effect, and for the balance of relations in the system «economy - environment - society». Not less important than the impact of the timber industry complex has on the socio-economic development of the region.

Forest resources of the Urals Federal district are presented in table 4 [10].

Table 4 - the Forest resources of the Ural Federal district

 

2010

2011

The area of lands of the forest Fund and lands of other categories where forests are located, thousand ha

Wooded territories, %

The total stock of timber, million m3

The area of lands of the forest Fund and lands of other categories where forests are located, thousand ha

Wooded territories, %

The total stock of timber, million m3

all

out of it covered with forests

all

out of it covered with forests

Russian Federation

1183682

797496

46,6

83454,0

1183257

797137

46,6

83386,3

Ural Federal district

114845

70011

38,5

8107,0

115005

70137

38,6

8128,8

Kurgan region

1877

1538

21,5

199,2

1878

1557

21,8

207,4

Sverdlovsk region

16000

13348

68,7

2141,8

16007

13321

68,4

2138,9

Tyumen region

94009

52524

43,52)

5360,0

94159

52658

43,52)

5370,4

including::

 

 

 

 

 

 

 

 

Khanty-Mansiysk Autonomous Okrug - Ugra

50312

28767

53,8

3266,3

50430

28894

54,0

3283,9

Yamalo-Nenets Autonomous Okrug

32279

16794

21,8

1167,5

32294

16801

21,8

1158,5

Chelyabinsk region

2961

2600

29,4

406,4

2961

2601

29,4

412,1

 

         When assessing the dynamics of the forest resources of the Ural Federal district it should be noted that for the period of availability of resources remained practically the same level.

In terms of forest and timber resources Chelyabinsk region occupies the last place in the Urals Federal district. The area of lands of the forest Fund decreased by 360 thousand hectares, and timber reserves increased by 5.7 million m3.

On the territory of the subject of the Federation are 7 state nature reserves area of 2529,7 thousand hectares, 3 national parks with the area of 193, 8 thousand hectares, which in total amounts to 1.5% of the total territory.

An important basis of the effective work of the timber industry complex is the reforestation and afforestation. (The data are presented in tables 5 and 6) [10]

Table 5 - Reforestation, thousand hectares

 

2008 год

2009 год

2010 год

Russian Federation

828,4

836,7

811,5

Ural Federal district

63,9

61,6

63,8

Kurgan region

4,7

4,7

4,6

Sverdlovsk region

22,1

23,9

25,6

Tyumen region

33,9

29,7

29,8

including::

 

 

 

Khanty-Mansiysk Autonomous Okrug - Ugra

20,5

20,5

18,3

Yamalo-Nenets Autonomous Okrug

4,8

4,8

4,8

Chelyabinsk region

3,3

3,3

3,8

 

         Over the recent years in the whole of the Russian Federation reduced the area of rehabilitated forests. As for the Urals Federal district, here the amount of the restored forests increased by 3.5% compared to last year, and in the Chelyabinsk region the growth was 15.1% to the level of the previous year. The share of artificial reforestation in total area, which were carried out reforestation work in 2010 in the Russian Federation amounted to 21.1%, in the Urals Federal district 23,1%, and for the Chelyabinsk region 76,8%.

Table 6 - Afforestation, hectares

 

2008 год

2009 год

2010 год

Russian Federation

15072

3854

7941

Ural Federal district

140

14

66

Kurgan region

 

14

4

Sverdlovsk region

113

-

61

Tyumen region

14

-

1

including::

 

 

 

Khanty-Mansiysk Autonomous Okrug - Ugra

14

-

1

Yamalo-Nenets Autonomous Okrug

13

-

-

 

         In 2010, the area of plantations in the whole of the Russian Federation has increased almost in 2 times, but has not yet reached the pre-crisis level of 2008. The same applies to the Urals Federal district. Here the area of lands allocated under afforestation, has increased by almost five times, but did not reach the level of 2008.

An important part of the work of forest management is the reforestation (table 7) [10]:

Table 7 - the Protection of forests against harmful organisms in 2010, hectares

 

Protection of forest biological methods

Protection of forests chemical method

Area of pernicious organisms, requiring control measures

The area of the dead forest stands

Russian Federation

226555

48992

2574460

801594

Ural Federal district

19285

7967

288765

28060

Kurgan region

-

14

83958

7665

Sverdlovsk region

-

-

6045

7141

Tyumen region

1161

-

24730

12062

including::

 

 

 

 

Khanty-Mansiysk Autonomous Okrug - Ugra

1141

-

678

4058

Yamalo-Nenets Autonomous Okrug

-

-

-

1055

Russian Federation

18124

7952

174032

1192

 

         No less important is the activity of the industry «Harvest». In the Ural Federal district in the industry work more than a thousand enterprises, which employ about eight thousand employees (in the Chelyabinsk region about 150 and 700 respectively) (table 8), [10]:

Table 8 : Main indicators of the activity «Logging»

 

The number of enterprises and organizations (on the end of the year)

The average annual number of employees, people

Balanced financial result (profit minus loss) of the activities of the organizations, million rubles

The specific weight of loss-making organizations in the total number of organizations,%

2005

2009

2010

2005

2009

2010

2005

2009

2010

2005

2009

2010

Russian Federation

20825

17751

15635

247753

165574

156576

-2800

-6416

-5420

61,7

62,7

56,3

Ural Federal district

1636

1370

1176

16628

8107

7717

-196

-227

-92

71,4

53,8

46,7

Kurgan region

47

52

47

444

324

557

-0,0

-

-

100

-

-

Sverdlovsk region

836

706

622

10746

4658

3986

-109

-86

-53

68,8

66,7

50,0

Tyumen region

613

456

358

5166

2342

2448

-84

-142

-39

70,0

50,0

50,0

including::

 

 

 

 

 

 

 

 

 

 

 

 

Khanty-Mansiysk Autonomous Okrug - Ugra

361

291

208

4064

1725

1978

-46

0,2

-21

71,4

-

50,0

Yamalo-Nenets Autonomous Okrug

28

10

2

135

25

26

-20

-

1

100

-

-

Russian Federation

140

156

149

272

783

726

-3

1

0,0

100

-

-

 

As can be seen from the table a large number of enterprises in 2010 showed negative financial result of such enterprises is about 50%. The enterprises, included into this industry should focus attention on the issues of management of the costs and outcomes in order to ensure competitiveness and sustained competitiveness.

Considering the volumes of production of unprocessed wood, it should be noted that for this kind of activities The Ural Federal district occupies the sixth place, and the Chelyabinsk region is the thirty-first (table 9) [10]:

Table 9 - the Production of wood raw value (thousand dense cubic meters)

 

2009

2010

Position in the Russian Federation in 2010

Russian Federation, million solid m3

100,7

112,2

 

Ural Federal district

5515

5861

6

Kurgan region

747,6

848,4

27

Sverdlovsk region

2472

2559

14

Tyumen region

1836

1861

15

including::

 

 

 

Khanty-Mansiysk Autonomous Okrug - Ugra

1381

1428

20

Yamalo-Nenets Autonomous Okrug

14,1

13,5

68

Russian Federation

459,4

592,7

31

 

         Considering sustained competitiveness of the timber industry complex, it should be noted that by this term is understood as the ability to retain its position in the future. There are various factors that have a significant influence on the formation of the timber industry complex. To these are include: objectives and tasks of the enterprises, the domestic environment, the external environment, the capital of the timber industry complex.

It should be noted that in the external environment of the timber industry complex consists of suppliers, consumers, state bodies and subjects of Federation, and population.

Forming the market model sustained competitiveness, it is necessary to take into account the competitive advantages of the timber industry complex:

-       general characteristic of the market;

-       the presence of large stocks of forest resources;

-       the possibility of rapid penetration into the unoccupied market segments;

-       normative-legal protection and state support;

-       high level of development of the applied science and technology, which allows in the shortest terms to solve the issues of development and introduction of progressive technologies and equipment;

-       availability of information about vendors, customers, market infrastructure;

-       availability of labor resources.

The algorithm of modeling sustained competitiveness of the timber industry complex includes basic stages:

Picture 2 - is a Simulation sustainable competitiveness of the

timber industry complex

         The development of system of indicators for assessing the effectiveness of management sustainable competitiveness of the timber industry complex implies comprehensive, systemic approach, and is embodied in the integral indicator that consists of indicators for the evaluation of efficiency of management of financial stability, cost, and profitability, quality, investment activities, the innovation activities.

 

Bibliography:

1.     Forest Code of the Russian Federation from 04.12.2012 g. №200-FZ-information retrieval system Consultant plus

2.     Barsukova S.YU. The accession of Russia to the WTO: the inevitable losses and possible acquisitions for agribusiness [Text]/ S.YU. Barsukova// Questions of statistics. - 2013. - №3. - S. 76-81

3.     Gryanko S.P.. Trends and dynamics of development of the forest sector on the basis of the relations between the government and business: the monograph [Text]/S.. Gryanko, O.I. Ageeva.- Perm: ФГБОУ VPO Perm SAA, 2011.-200C.

4.     Russian statistical Yearbook - 2011 [Electronic resource].- Mode of access: http://www.gks.ru

5.     Puchkov V.V. Strategic planning of forestry complexes/ author's abstract of the dissertation on competition of a scientific degree of the doctor of economic Sciences: protected 26.10. 2010/ Beams V.V.// [Electronic resource].-Access: http://vak.ed.gov.ru

6.     The strategy of innovative development of the Russian Federation for the period up to 2020 / Order of the Government of the Russian Federation from 08.12.11 - №1227-p [Electronic resource] . - Mode of access: http://www.consultant.ru

7.     Khodakovska A.E.. Formation of the economic model of sustainable forest administration and management. Author's abstract of the dissertation on competition of a scientific degree of the candidate of economic Sciences: protected 24 may 2012 /Khodakovska A.E.//[Electronic resource]. - Access: http://ftacademy.ru

8.     Internet-resource// access//http://www.econom-chelreg.ru

9.     Internet-resource// access// http://gks.ru

10. Internet-resource// access//http://chelstat.gks.ru

11. Internet-resource// access//http://www.fao.org

12. Internet-resource//lp.vniilm.ru/viewtopic.php?f=6&t=1806