Samarina V.P. PhD (geography)

Stary Oskol technological institute «National research technological university MISIS»

Export policy of Russia as one of the reasons of the economic crisis

The research is executed at financial support of the Russian humanitarian scientific fund, the project ¹ 09-02-55205 à/Ö

 

 

The influence of global crisis on Russian economy is quite obvious and natural. For many years Russia pursued a policy of integration into universal economy and as a result it became the part of global economic and financial system. Therefore, global crisis processes could not but change institutional conditions of the development of Russian economy.

There is a fact that does not give rise to doubt. What is at issue is, one of basic reasons of spreading of an economic crisis in Russia consists in the heavy dependence on external demand for basic products of Russian export, such as energy supply, wood and metal.

 

Pic.1. The profitability of Russian manufacture in 2008, % (provided by the materials of All-Russian public organization “Business Russia” [1]).

 

As a result of orientation of economy of Russia to production and primary processing of minerals, there have taken place the essential break as regards  the profitability between raw material and not raw material sectors of Russian economy (pic.). Thereby, the profitability of ore mineral resources production (except fuel and energy minerals) in 2008 was 12,1 times more than profitability of textile and clothing manufacture and 5,1 times more, than profitability of  machinery and equipment manufacture.

 Table. Commodity composition  of export and import of the Russian Federation (%) (provided by the materials of Federal Service of government statistics [3]).

 

                        Year

Sorts of production

1995

2000

2002

2003

2004

2005

2006

2007

  Provisions and  agricultural raw materials

1,8*

1,6

2,6

2,5

1,8

1,9

1,8

2,6

28,1

21,8

22,5

21

18,3

17,7

15,7

13,8

Mineral products

42,5

53,8

55,2

57,3

57,8

64,8

65,9

64,7

6,4

6,3

3,7

3,8

4

3,1

2,4

2,3

   Chemical production, rubber

10

7,2

6,9

6,9

6,6

6

5,6

5,9

10,9

18

16,7

16,8

15,8

16,5

15,8

13,8

Rawstock (leather goods), fur (peltry-ware)

0,4

0,3

0,3

0,2

0,2

0,1

0,1

0,1

0,3

0,4

0,5

0,4

0,3

0,3

0,3

0,4

Timber and pulp-and-paper industries production

5,6

4,3

4,6

4,2

3,9

3,4

3,2

3,5

2,4

3,8

4,2

4,2

3,8

3,3

2,9

2,7

  Textile goods and footwear

1,5

0,8

0,8

0,7

0,6

0,4

0,3

0,3

5,7

5,9

5,3

4,8

4,3

3,7

4

4,3

Metals (hardware), precious stones (jewels)

26,7

21,7

18,7

17,8

20,2

16,8

16,3

16,1

8,5

8,3

6,4

7,3

8

7,7

7,7

8,2

Machinery, transportation and equipment

10,2

8,8

9,5

9

7,8

5,6

5,8

5,6

33,6

31,4

36,3

37,4

41,2

44

47,7

51

The rest

  

1,3

1,5

1,4

1,4

1,1

1

1

 -

4,1

4,1

4,4

4,3

4,3

3,7

3,5

3

 

* numerator - export; denominator - import

 

Natural consequence of this situation became the commodity composition  of Russian export and import (table). From 1995 to 2006 the quota of mineral raw material in total volume of export of the country was stably increasing and by 2007 had made up 65,9 %. The quota of an end-product, for example, machinery, transportation and equipment in export was gradually falling: from 10,2 % in 1995  to 5,6 % in 2007. At the same time the part of import of the same product was accruing: from 31,4 % in 2000  to 51 % in 2007. The quota of import of both provisions and  agricultural raw materials was extremely great. However it is possible to note some positive tendencies. Though the part of export insignificantly grew (from 1,8 % in 1995 to 2,6 % in 2007) over the same period of time, the part of import went down from 28,1 % to 13,8 %. In whole, it should be emphasized, that direct dependence of economy of Russia on import cannot but cause anxiety. The existing situation, out of question, undermines foundations of national safety.

As a result, the country by leaps and bounds was involved in the economic crisis as soon as demand for Russian export of raw materials was reduced.  The focus of national economy on raw export led to some unfortunate results: the domestic demand could not replace the external one that reduced from the end of 2008 to the beginning of 2009. The decrease in industrial and economic activity of enterprises had taken place, and hereupon, the crisis of non-payments occurred.  

Thereupon, directed at modernization of economy crisis-proof policy gains special currency. The president of the Russian Federation D.A.Medvedev, issuing an appeal to Federal Assembly of Russia in 2009 emphasized, “We have to begin modernization and technological renewal of all industrial spheres. In my strong opinion, it is a question of a survival of our country in the modern world” [2]. The realization of this tendency will allow to create the basis for sustainable development of Russia in long-term outlook.

 

References

 

1. An output from crisis: Refusal of raw model. New industrialization.  The Annual economic report of the All-Russian public organization “Business Russia” (2009). // http://www. deloros.ru/ http: // www.regionalistica.ru/projects/geo/

2.  Medvedev D. À. The Message to Federal Assembly of the Russian Federation // http: // www.consultant.ru/online/base/

3.  The site of Federal Service of government statistics // http: // www.gks.ru.