Economics / 8; 3; 13 Mathematical Methods in Economics;
Financial relations; Regional economy.
 
Candidate of legal Sciences, associate Professor

Spirina S.G.

Kuban state University, Russia
master's student

Naguchev М.М.

 Kuban state University, Russia

Problems of cooperation of Russia and the Czech Republic in the context of increasing of the financial stability of their own territories

 
Abstract: The article discussed topical issues of financial cooperation territories of priority development of Russia and the Czech Republic on the basis of the theory of cooperative games.
Key words: financial sustainability of territory, territories of advanced development, cooperative games, the economy of the Czech Republic

The system of national economic interests, as a subsystem of the world's economic interests requires urgent development of national industry sector, based on country’s own resources and productive forces. [1, p. 2] However, the unevenness of economic development is one of the risk factors in the business [2] and requires an analysis of the financial stability of the territories in a period of economic growth [5], and in times of financial crisis, [4, p. 9]. The financial crisis led to a sharp contraction of market valuations, particularly in emerging markets, which confirmed their high subjectivity and more dependent on the situation in the mega and macro level. [7, p. 33].

In October 2014, the Government of the Russian Federation submitted to the state parliament a package of three bills aimed at the formation of territories of advanced development: the draft law «On territories of advancing socio-economic development in the Russian Federation», amendments to the Tax code of the Russian Federation, which were accepted on November 21, 2014, as well as changes in several other legal acts.
Since 2014 in the Far East and Trans-Baikal region, Buryatia and Irkutsk region of the Russian Federation introduced a preferential tax regime: the personal income tax is reduced to 7%, reduced income tax – up to 10% (for the first five years is expected to make zero). Despite positive trends, there are some contradictions: a special tax regime that stimulates non – oil exports, lobbying forces are trying to replace the reduction of tax on the extraction of minerals such as gold, coal, ores of ferrous and nonferrous metals.
July 1, 1991 in Prague was signed a protocol on the complete termination of the Warsaw Pact. However, the economic ties between the member countries of the treaty continued to evolve over the past 15 years.
Introduction concerning Russia in 2014-2015 years of economic sanctions by some countries of Europe, led to complication of development of trade and economic relations between them. [8] Nevertheless, in our opinion, strengthening of national payment system of each country and realization of standards of Federal Law of Russia of 29.12.2014 no 473 (amendments by of 13.07.2015) «About territories of the advancing social and economic development in the Russian Federation» can promote successful development of the economic relations between our countries in the short term.
 Both in Russia and in the Czech Republic, international payment systems are very popular, including the Chinese national payment system UnionPay ( from September 2014 year the Czech Republic became the first country in Central Europe, where it is possible to use cards of mentioned system).

The analysis of the implementation of the national system of payment cards in Russia and the use of international payment systems in the Czech Republic and some other countries of Eastern Europe, has led to the need for promising structural reforms in the financial system, taking into account both changes in the exchange rate of the ruble against other currencies, risks of changes in the cost of a barrel of oil, and the risks of subjective and objective external forces [6, p. 53].

According to the authors, for cooperation between Russia and the Czech Republic to increase the financial stability of their own territories and the development of national financial systems is possible to apply the theory of cooperative games: the participants of the agreements (players) can discuss before making decisions their strategies and agree on joint actions (voluntary exchange between the players information, joint range of strategies, the transfer of the players win each other, etc.); therefore, players can form a coalition.

Matrix games frequently used in studies of two different strategies for the players in this case are not suitable because more participants irregular process. For example, participants in the agreements (the players): the Russian Federation on the one hand, the Czech Republic and some countries in Eastern Europe, on the other hand, the United States and some countries financially dependent on its policy of using economic sanctions against the Russian Federation with a third party. At the same time the EU, as well as members of the group actually represent the US coalition. Russia could also form a coalition on the basis of the Eurasian Union.

Matrix game frequently used in studies of two different strategies for the players in this case are not suitable because more participants irregular process. For example, participants in the agreements (the players): the Russian Federation on the one hand, the Czech Republic and some countries in Eastern Europe, on the other hand, the United States and some countries financially dependent on its policy of using economic sanctions against the Russian Federation with a third party. At the same time the EU, as well as members of the group actually represent the US coalition. Russia could also form a coalition on the basis of the Eurasian Union.

The effectiveness of possible actions in the matrix games is estimated the winnings that players receive in each situation. [3]

To simulate possible cooperation in order to increase the financial sustainability of the territories proposed as a player in the market of payment systems (Russia, the Czech Republic and several European Union countries and the United States) to put forward three strategies of behavior. 
I. Strategy of Russia: 
- the creation of compulsory insurance accounts for all international payment systems in Russia; 
- to contain payments on the territory of the Russian Federation required the establishment of processing centers; 
- partnership and cooperation with international payment systems (cross-license).

II. Strategy of the Czech Republic and several European Union countries:

– the most acceptable for Russia: the complete abolition of economic sanctions, the resumption of interbank cooperation in full-scale like it was before the sanctions;

– not preferred, but possible strategy: the weakening of economic sanctions, moderate policy of containment of the Russian Federation; neutral attitude to the NSPC and Russian Federation;

– the less acceptable for Russia and for the countries of the euro area: the tightening of economic sanctions; targeted destructive policy towards the economy of the Russian Federation; lock any partnership in the field of NSPC, posing obstacles.

III. Three major US strategies:

– to use leverage mechanisms delaying the creation of processing centers in Russia to develop complications for the Russian national payment system;

– more sanctions in the financial sector, aimed at curbing the development of the Russian banking system;  

– the essential pressure on the commercial structure of the country (in particular payment ), in order to restrict transactions with Russian banks.

According to the authors, for the cooperation between Russia and the Czech Republic to increase the financial stability of their own territories there are some efficient measures:

– monitoring of the national payment systems of the EU countries, Russia, China, Japan and other major players in the financial market;

– structural reforms in the financial systems of Russia and the Czech Republic to consider the risks of subjective and objective external forces acting in coalition against strengthening of positions of Russia and Eastern Europe;

– creating multiple coalitions instead of the opposition between Eastern and Western Europe and Russia in order to increase the overall financial effect.

Literature:

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8. Khudyakova T.A., Shmidt A.V., Lisitsyna V.G. Increasing the stability of the Russian tourism market through the introduction of innovative approaches // In: Collection of articles of the international scientific-practical conference. Managing editor : Sukiasyan A.A. g. Ufa, Bashkortostan, 2014. pp. 313-314.