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UDC 330.31:338.43.330.342.172
THE FEATURES OF REPRODUCTION PROCESSES IN THE AGRO-INDUSTRIAL COMPLEX IN CONDITIONS OF OPEN ECONOMY
Sereda N.A., Assistant Professor Kostroma State Agricultural Academy, Kostroma, Russia E-mail: sereda [email protected]
ABSTRACT
The level of integration of the economic system of Russia with the external economic environment, the global specialty for food products have been investigated. Based on the theory of reproduction, which initially abstracted from the interaction with the external environment, the laws of motion of social capital in simple reproduction considering integrate the national economy into the world economy have been formulated. The necessity of import substitution not only agricultural products, but also the means of its production has been substantiated.
KEYWORDS
Reproduction, international economic integration, agro-industrial complex, production market.
The process of Russia movement to the open economy caused by the general trend of the formation of world economy and globalization. This confirms the need to adapt Russian economy to the new conditions, identify unwanted development trajectories and develop measures to overcome the crisis. It is necessary to fully realize the benefits of global integration and avoid possible threats, neutralize the negative effects of globalization on national economy. The combination of openness of the Russian economy with the protection of the domestic manufacturer, ensuring economic and food security, increased competitiveness - one of the most urgent problems of formation and development of the economic system in the new conditions.
MATHERIALS AND METHODS
Investigation of the integration level of the Russian economy in the world economic system was based on using official international statistical databases, materials of Rosstat. For data processing were used economic and statistical methods; for interpretation and visual reflection of the results was used graphical method. The theoretical basis of the study were the works of economic science classic Karl Marx, as well as works of contemporary scientists in the field of developing and improving the scientific and methodological bases of reproduction. Proposals for the modernization conceptual ideas about reproduction processes are formed on the basis of abstract-logical and intuitive-heuristic understanding of economic processes and phenomena.
RESULTS OF RESEARCH
Dynamics of the indicators of Russian economic system openness in the last decade shows that since 2000, Russia's exports increased by 5.1 times, while imports during the same period increased by 9.3 times (Table 1).
Import substantially predominates over exports in machinery and equipment; net imports (the difference between imports and exports) since 2000 increased by 82 times. By items of consumption there is a net import, the value of which has increased since 2000 by 7.4 times, including for food commodities - by 4 times; net foodstuffs import in 2012 reached 23.7 bln. USD.
Raises concerns that in the food market, Russia is an importer, although the center of gravity in the last few years has shifted towards the normalization of ratio of exports and
imports [1]. Compared with 2000, the share of food commodities import in Russia's GDP declined from 3.2 to 2%.
Table 1 - Dynamics of the indicators of openness economic system in Russia
Indicator 2000 2005 2007 2010 2011 2012
Gross domestic product, bln. USD by nominal exchange rate 227,1 763,7 1299,7 1479,8 1885,0 1954,0
Export, bln. USD 103,1 241,5 351,9 397,1 516,7 525,4
including items of consumption 4,3 8,3 14,4 19,5 20,4 23,4
among them food commodities 1,6 4,5 9,1 8,8 13,3 16,7
means of production 98,8 233,2 337,5 377,6 496,3 502,0
among them machinery and equipment 9,1 13,5 19,7 21,3 26,0 26,5
Import, bln. USD 33,9 98,7 199,7 228,9 305,7 314,2
including items of consumption 10,9 25,0 43,4 62,3 72,0 72,4
among them food commodities 7,4 17,4 27,6 36,4 42,5 40,4
means of production 23,0 73,7 156,3 166,6 233,7 241,8
among them machinery and equipment 10,7 43,4 101,7 101,7 148,1 157,6
Foreign trade turnover, bln. USD 137,0 340,2 551,7 626,0 822,5 839,5
Foreign trade quota, % 60,3 44,5 42,4 42,3 43,6 43,0
Share in GDP, %: export 45,40 31,62 27,08 26,83 27,41 26,89
import 14,92 12,92 15,37 15,47 16,22 16,08
The coefficient of intraindustry international specialization 50,53 41,97 27,58 26,86 25,65 25,16
by food commodities -63,96 -59,02 -50,48 -61,22 -52,28 -41,58
Sources:
• CIA World Factbook [Electronic resource] / Central Intelligence Agency. URL: https://www.cia.gov /library/publications/the-world-factboo2/ k/docs /flagsoftheworld.html
• Russian Statistical Yearbook. 2013: Statistical compilation. -M.: Rosstat, 2013. -717 p.
Overall in 2012, Russia's share in world exports was 2.8%, in import - 1.7%. Countries with a high degree of integration into the world economy demonstrate high volumes of both exports and imports. In the leading countries in world trade these indicators many times higher: in China 11.1% and 10% respectively; in the United States 8.4% and 12.8%; in Germany 7.6% and 6.4%. The foreign trade quota of Russia in recent years is at the level 43%. In the 50's - 60's, countries with the value of foreign trade quota of more than 10% were carried to number of the open. By the end of the 90s, this criterion has grown significantly: in countries with high degree of openness, foreign trade quota exceeds 45%. Those countries where this index less than 27% have a low degree of openness [2]. It can be argued that the Russian economy is characterized by a relatively high degree of integration into the world economy, but the movement to today's level was degressive.
Reduction of foreign trade quota compared with 2000 can be explained by number of positive factors: firstly significant growth in GDP, secondly - the orientation of manufacture for domestic consumption, and thirdly - some deviation from the export of raw materials type of development. However, institutional immersion of Russia into the world community is actually accompanied by reduction of export and by growth of import. This trend has dangerous cause for development of the Russian economy: globalization occurs in conditions of low competitiveness of our country in the world market. Identified trends confirm the relevance of the state policy modernization and adaptation of national economy to the conditions of open world space.
The processes of the economy globalization form the new trends in the development of the productive forces of society. In today's world leading role belongs to science, technology, new progressive technologies. The center of gravity in the structure of the productive forces is shifting from material to labor resources, the priority of human and intellectual capital is formed. Productive forces outgrow the boundaries of national economies and operate internationally.
It is well known that between I and II subdivisions there is constantly exchange in kind and in cost by production resources and by results of production, redistribution of surplus
product. According to the law of the reproduction and circulation of social capital of Karl Marx [3, pp. 449 - 453], in inter-sectoral exchange, demand for elements of constant capital from manufacturers of consumer goods (II c) is balanced by demand for the items of consumption by workers (I v) and by surplus value (I m) in the production of the means of production.
Except these traditional interactions, in open economy also occurs exchange of resources, end products, incomes, and innovations with external environment. Based on the foundation of the theoretical studies of Karl Marx and considering the product, manufactured with account of the external economic relations, as aggregate public product, that is, gross national income, the scheme of its formation can be graphically represented as follows (Figure 1).
Legend: I c, II c - the cost of the means of production of the first and second subdivisions of th e economy, respectively; I v, II v - the cost of human labor of the first and second subdivisions of the economy, respectively; I m, II m - the surplus value of the first and second subdivisions of the economy, respectively.
Figure 1 - The movement of social capital in the conditions of open economy
Considering the export and import of the means of production by I subdivision of the economy, should take into account the dual nature of this phenomenon, because at the same time there is a movement of the means of production as incoming factor of production and as outgoing finished product. Commodity and moneyed form of the value of human labor also migrate on a large scale, often in isolation from each other: labor might be included in the production and refunded by its payment in I and II subdivisions of the economy of one country, while the purchase of the items of consumption is carried out from II subdivision in another country.
Based on the theory of the reproduction of Karl Marx, originally abstracted from the interaction with the external environment, author formulated the laws of the motion of social capital in simple reproduction, taking into account integration of national economy into the world economy's space.
The first law of reproduction in an open economic environment:
Net imports of the means of production by industries which produce items of consumption, leads to a proportional reduction of the involved labor and produced surplus value in the domestic industries of first subdivision of economy:
N11 c = A(/v + / m) (1),
where Nil c - net import of the means of production by second division of the economy; A (I v + I m) - reduction in the cost of human labor and surplus value of the first subdivision of the economy.
The second law of reproduction in an open economic environment:
Import of the items of consumption as the minimum necessary for the reproduction of labor power, as well as spending on them of the surplus product, leads to a corresponding reduction in production in the second subdivision of the economy.
N(Iv + I m + II v + II m) = AII w (2),
where N(Iv + I m + II v + II m) - expenditure of funds for the purchase of the items of consumption produced outside the country; All w - reduction of the total product in the second subdivision of the national economy.
The third law of reproduction in an open economic environment:
Net import of the means of production by any of the branches leads to a corresponding reduction in production in the first subdivision.
N(I c + II c) = AI w (3),
where N(I c + II c) - net import of the means of production; AI w - reduction of the total product in the first subdivision of the national economy.
From these theoretical postulates, as applied to the agricultural sector, following rules apply. Import of agricultural raw materials and foodstuffs leads to stagnation of domestic agriculture and to the destruction of food security. It is important to note that to preserve the economic independence of the country, including food self-sufficiency, it is important to pay attention to the scale of import not only the final product, but also the means to produce it. So import of agricultural machinery undermines self-sufficiency with agricultural products, even if the latter produced with its use within the country. In addition, the importation of foreign agricultural machinery leads to a proportional reduction in the number of workplaces and the surplus value in the agricultural machinery industries.
The presence of foreign relations has a certain effect on the development of scientific and technical progress. Initially exchange of technological advances occurs between subdivisions of the economy inside the country. Agrarian sector has traditionally subordinate type of innovative development, primarily using innovations, developed and initially applied in other sectors of the economy. With globalization, the exchange of information, scientific and technical achievements and best experience occurs not only between the types of economic activities, but also between different countries. Selection of the most effective ways of technical and technological development based on long-term forecasting, comparison of external and internal factors, accounting resource constraints causes this or that type of innovation development in different countries: offensive, dependent, imitation and others. The most important task of Russian economy is the analysis of its own resource potential, scientific and technical capabilities, setting a goal to determine role and place in the world economy and development on this basis the strategic directions of innovative development.
Guided by an integrated approach to the study of economic processes and phenomena, it should be noted that any economic system is the complex of interrelated subsystems: the economies of individual regions, industries, economic entities. On the one hand, they functioning in the external environment formed by the common system, on the other - they form characteristics of the common system by the set of its own parameters. Consequently, the management of the national economy in an open environment is not confined to the macroeconomic policy of the state; there is a need to adapt the specific economic entities, regions to new economic conditions. As noted by S.R. Abramkina, in the
conditions of the new economic realities, not only international but also domestic space are changing, regions become subjects of global processes, thus, sectoral and territorial principles for their participation in economic activity are actualized [4]. In the paper of E.A. Erokhina is given thesis that in the economy of closed type, prone to self-sufficiency, instead of complex relations concerning production, distribution, exchange and consumption between economic entities, regions and levels of economic system, there is only one scheme with direct links between the overall system and its components, the relationships of domination and subordination [5]. Developing this idea, we must assume that under conditions of high degree of the economy openness, relationships not only with the external environment, but also between entities within the national economic system are complicated and diversified. Because of the domination of agro-industrial complex relationships with the state system, the center of gravity is shifting towards growth of economic ties and economic relationships within the industry subcomplex.
CONCLUSION
The problem of adaptation of the Russian agricultural sector to the conditions of open economy is more acute than in other sectors. The overall specificity of agriculture in the system of international economic ties lies in the fact that this industry, in terms of imports, should not always be guided by the criteria of efficiency in the system of the international division of labor, but to ensure, first of all, the food security of the country. The specific problem of Russian agriculture is depressive state of the industry at the time of entering into an open economic space. Improvement of economic relations between all agents of the economic system, including the state, allows production relations to evolve, adapting to changes in global markets. In the system of state regulation is important to pay attention not so much to foreign economic policy, as support by the state of regional intersectoral subsystems and individual economic entities.
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