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MACROECONOMICS ALONE IS NOT ENOUGH!

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The author puts forward and justifies the concept of the modern economy’s objective development which call attention to a confrontation of its «micro» and «macro» levels. It may seem to non-economists to be a private matter; however, neglecting the complex conflicts that arise between these two levels of the national economy, it is impossible not only to accelerate economic growth, but also to increase the social efficiency of production. From this perspective, it follows that it is necessary today to fill the characteristics of micro- and macroeconomics with political and economic content, to go beyond the limits of the obviousness imposed by positivism. Moreover, the reduction of micro- and macroeconomics only to sections of economic education actually masks the sharp, but still not emphasized by the economists, contradiction between the micro- and macroeconomic spheres of the national economic system. The author concludes that the idea of micro- and macroeconomics only as sections of the training course on economics has long turned into a primitivization of the real economy. The statement of the problem in the article involves justification of the following theses: 1. Micro- and macroeconomics –are two extreme (and therefore – contradictory) modes of organization of the national economy. 2. Microeconomics emerges as a «natural» result of the evolutionary development of the economy, historically growing as the transformation of «production»– into «economy». 3. Unlike microeconomics, macroeconomics’ existence is dualistic: as an organic system, it has «built-in stabilizers» which provide it with an spontaneous balance. 4. Microeconomics represents the sphere of self-arising (and therefore self-organized, and spontaneously-functioning) production, being subject to the imperatives of competition, benefits and conjuncture. 5. Microeconomics forms the material basis of the vital activity of the civil (informal) society; in contrast, macroeconomics forms the material basis of the vital activity of the state. 6. The need to differentiate the national economy into micro- and macroeconomics does not mean their equal relevance. 7. Microeconomics is a part of the economy, through which the people are fed, the self-employed population, small and medium business; macroeconomics is a part of the economy that meets public needs, and through which the state and bureaucratic elite are fed.

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Analysis of relationships between the elements of the macroeconomic system for telecommunication service market

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The paper analyzes the relationship between the parts of the communication service from the systemic economic theory’s perspectives. A system of four linked elements (the tetrad) – «economics – economic policy – economic management – business behavior» in the telecommunications market is analyzed. At the macro level this complex includes: the scientific organizations – the environmental subsystem; the legislative authorities – the processing subsystem; the regulators – the projective subsystem; the telecommunication companies – the objective subsystem. These elements interact with neighboring subsystems two by two. This allows to assess the quality of such relationships to identify weak connection between them. The following pairs with weak connection were identified: project – environmental and environmental – objective subsystems. These features indicate that the objective and the environmental subsystems are in the communication vacuum relative to each other and other subsystems. There is a sequence of weak feedback from the processing system (through the environmental and objective) to projective. Therefore only the direct connections of the system are stable in the macroeconomic complex of telecommunication services. Given such a weak connection, it is evident that the system is misbalanced. The above said prevents the harmonious development of the economic complex and break the chain of interaction between subsystems. We should consider the complex programs for the development of interaction between pairs of subsystems with weak or non-existent connections. Also this problem should be considered as a system, as a single organism, to establish connections and to strike a balance.

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INSTITUTIONS AND STATISTICS: THE CASE OF FIXED ASSETS ACCOUNTS

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The paper analyzes the impact of institutions upon the state of economic statistics. The study focuses on the most complex and essential area of economic statistics: the fixed assets statistics. Its positions under various social-and-economic systems are considered. The authors show that its emergence under capitalism was facilitated by developing private entrepreneurship, democracy and respect of the authorities and society towards science and high education. A comparative analysis of these statistical data across different countries proves their dependence on the level of national economic-and-cultural development, and advancement of private business. For instance, it was absent in the tsarist Russia. Development of the fixed assets statistics in the command economies is analyzed using an example of the USSR. It ascertained that its state in the 1930s–1950s was depressing, which is explained by prevalence of orientation towards physical indicators in the actual planning practice in that period. At the same time, unlike capitalism, individual researchers could not perform and especially publish independent estimates of the costs and trend patterns for fixed assets due to political reasons. They could destroy an illusion of enormously successful Soviet economy. After a short period of relatively objective determination of the costs of the fixed assets stock of in 1960 it continued deteriorating. Due to degradation of economic science, criticism of the state of this segment of economic statistics practically terminated. In the postSoviet period, the gap between the fixed asset statistics and the reality reached its peak. Currently it is the worst in the world in terms of the credibility level, particular due to a gloomy quality of public administration, civil society, business community and economic science. Poor fixed assets statistics prevents reasonable analyzing and forecasting of the processes of Russian economy.

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INTERRELATION OF TYPES OF INEQUALITY WITH INDICATORS OF STANDARD OF LIVING AND WELFARE OF THE POPULATION IN RUSSIAN REGIONS

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The purpose of this study is to model the multifactorial dependencies between normal and excessive inequality and real income per capita, as well as establishing interrelationships between the types of inequality and the indicators of human capital quality, living standards and welfare of population in the regions of the Russian Federation. The methodology of the study. The double deflation method based on the indicator of relative cost of living in regions was used for determination of real incomes. The inequality level was assessed by use of the Gini coefficient. The division of inequality into normal and excessive types was carried out by means of the A. Yu. Shevjakov method applying three functional thresholds (poverty, social minimum and social prosperity). The OLS method was used for econometric estimation of the relationships between the types of inequality and the economic development indicators. The correlation of the inequality types with the indicators of quality of human capital, living standards and welfare of the population was determined based on the Pearson coefficient. The results of the study. We developed the multifactor econometric models estimating interrelationships of normal and excessive inequalities with a number of variables, including real income per capita. The S. Kuznets’s dependence was confirmed for the normal inequality of levels I and II. We found that the normal inequality of level III is positively related to real income per capita, while excessive inequality of all levels is negatively connected with it. We revealed that in regions with a higher level of normal inequality and a lower level of excessive inequality there are on average better the following indicators: 1) the quality of human capital (the state of health and education); 2) the standard of living (some indicators of population dynamics, the structure of consumer spending, the state of the legal environment, culture, recreation and tourism); 3) the welfare of the population (housing, durable goods, pure real savings and free time). Application of the results. The results obtained are applicable in managing the socio-economic processes at the regional and federal levels.

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THE IMPERATIVE OF GENDER EQUALITY IN THE REPRODUCTION OF HUMAN CAPITAL AT THE REGIONAL LEVEL

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The basis of the study were the gender-sensitive assay of the processes of reproduction of the human capital in the South regions and the assessment of trends for gender equality in the context of more efficient use of human capital. The object of investigation was human capital by regions, the subject - the gender dimension as one of the factors in the development of human capital. The findings of the continuing gender gap were made on the basis of the analysis, caused by the fact that the period during which is possible to generate income from investment in human capital, is different for men and women. Empirical and factual analysis of human capital in the South Russian regions showed the unevenness of men and women in the following indicators: life expectancy, level of education, income, level of economic activity and return on investment and the achieved level of human capital; the continuing unequal access to economic resources and the absence of adequate gender policies, consistent with international law, allow to identify the factors that affect the efficient use of human capital in these regions, and to complete the evaluation model of human capital by J. Mintzer with a factor that takes into account gender-specific form and development of human capital. A logical extension of the work was the calculation of this factor for entire Russia and for the regions of the South and the North Caucasian Federal District. The reproduction of human capital is not possible without adequate consideration of gender indicators that is to consider as a reserve for more efficient use of human capital at the regional level and at the country level.

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MANIFESTATIONS OF ECONOMIC IDENTITY IN THE REGIONAL BRANDS: THEORETICAL APPROACHES TO THE STUDY

TERRA ECONOMICUS, , Vol. 15 (no. 4),

In a globalizing world, the process of competition are a constant and increasing pressure on regions and individuals. However, the contemporary processes of globalization lead to the fact that regional approaches begin to dominate in the world economy and politics, the focus of attention of researchers is shifting from the global to the regional level. Currently, the regions that do not participate in the process of «territorial competition» is not able to be integrated into the world economy. One of the key instruments of territorial competition becomes the brand of the territory (region). Identity of individuals, localized in a «competing» region, can be used as a starting point for the formation of his brand. In our opinion, this approach is «from the identity of the individual to the brand of the region» can become the basis for the formation of such a regional brand, which in symbolic form most fully and adequately reflected and aligned the interests of all its stakeholders. Such a brand is not just distinguishes the region from other similar, but also strengthens its competitive advantage. This article from the standpoint of modern European interdisciplinary scientific approaches considers the possibility of applying the economic concept of regional identity as part of the mobilizing forces for development of regions and promotion practices of regional branding.

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ECO-CITY CONCEPTS: RECOMMENDATIONS FOR RUSSIA

TERRA ECONOMICUS, , Vol. 15 (no. 4),

This article deals with the eco-city concept of the XX century end and the beginning of the XXI century. The model of urban metabolism proposed by Abel Wolman was chosen as the method of analysis. Based on the results of the comparative analysis, we concluded that emphasis of eco-city approaches has shifted over the past decades. In the 1980s and 1990s, emphasis was placed on limiting the consumption of resources, including through the urban and transport planning, while after 2000 the focus was on the limitation of waste generation, the green production and alternative energy development. At the same time, modern eco-cities concepts are becoming more oriented towards human needs and social problems solving. We concluded about the possibilities of applying foreign approaches in the Russian cities and proposed a set of specific measures in the field of the city environmental policy. It is noted that the approaches of territorial development (such as new urbanism, urban villages, transit-oriented development, traditional neighborhood development, pedestrian pockets) were initially practice-oriented and practically do not need adaptation in Russia. However, group of approaches based on green technologies, alternative energetics and energy efficiency, waste recycling and the elimination of accumulated environmental damage are certainly in demand in Russia, but they need adaptation taking into account the Russian natural and climatic characteristics. For Russian cities, we propose the following measures: declaration of transition to the «environmentally sustainable development» model; the development of a mechanism for the solution and prevention of environmental conflicts; the allocation of special ecological and economic cities and territories; launch of the priority national project for the development of environmentally friendly modes of transport; implementation of the road map for the creation of green cities; inclusion in the system of assessment of the activities of municipal authorities of environmental indicators; the restriction of multi-storey buildings construction, the formation of new green areas, etc.

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DEVELOPING THE PUBLIC PROCUREMENT SYSTEM IN THE POST-SOVIET AND MODERN RUSSIA: CHALLENGES AND OPPORTUNITIES

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The paper analyses transformation of Russian public procurement system in the past 25 years. The focus is given to building up the new institutional environment and the main tools and mechanisms of interaction on the emerging quasi-markets. The impact of the international procurement experience, the heritage of Soviet administrative control system as well as macroeconomic and regional factors and social-and-political interests upon procurement regulation are evaluated. The stages of concept evolution and modernization of the regulatory framework in this field are presented from the prospective of the economic policy. Some controversial aspects of regulating the public procurement system and the effect upon conduct of public and municipal customers and suppliers are highlighted. The ideological rationale of the market reforms is identified as aimed at preventing corruption and enhancing the public spending efficiency. It drives a regulatory transition from the industrial policy measures to the policy of competition protection and stimulation, and determines adopting new public procurement technologies to fit the evolving approaches. The authors conclude that the controversies in public procurement are rooted in the basic legal concepts and frameworks that hardly meet the needs of economic agents. Evolution of the institutional environment of the public procurement market proves a low self-control level by the state in the modern Russia.

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ACADEMIC PUBLISHING, JOURNAL RANKINGS, AND SCIENTIFIC PRODUCTIVITY

TERRA ECONOMICUS, , Vol. 15 (no. 4),

Academic publishing, rankings, and scientific productivity constitute an essential part of every researcher’s career. Publications in prestigious academic journals have a significant impact on the institutional rankings and help researchers to the grant funding. Nevertheless, the issue of «where» to publish became more important than «what» to publish. The academic race ignited the emotional discussion about the phenomenon of the so-called «predatory» journals that allegedly publish scientific «rubbish» for money without proper peer review. Czech Republic is one of the countries that seem to be particularly obsessed with the issue of «predatory» journals which led to a storm in the Czech academic teacup. Everyone in the Czech Republic (including the top management of the country’s leading universities and Academy of Sciences) was and is still publishing in the journals that were once considered “predatory” by Jeffrey Beall (i.e. journals published by MDPI or Hindawi). Many Czech academics get promoted based on publishing their monographs in obscure publishing houses located in apartment blocks or publishing papers in the journals they are editing bypassing the peer review (a famous “Tereza Stöckelová controversy”). According to some estimates, between 2009 and 2013 Czech universities made approximately $2 million on papers and monographs published in «predatory» publishing outlets. The case of «predatory» journals was used by some less-productive institutes of the Czech Academy of Sciences to question the system of world’s established academic metrics such as Scopus and Web of Science. However, moving away from the world-renowned databases and creating national publication standards would most certainly allow small groups of local academics to control the system of academic rankings and productivity. Academic database such as Scopus and Web of Science offer international and non-involved objectivity and therefore are fair and transparent.

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REFORMING EDUCATION: THE BURDEN OF ADAPTATION

TERRA ECONOMICUS, , Vol. 15 (no. 4),

The article summarizes the research findings obtained during the study of higher and continuing professional education (CPE) in the Rostov region (South of Russia) by the research group of the Southern Federal University, the Faculty of Economics, in 2015–2017. The study has been focused on recent institutional change induced by the Federal Government’s higher education and CPE reforms in Russia, and resulted in adaptation responses of the parties involved. Original Institutional Economics is used as the theoretical framework, the relevance of the social constructivist methodology to the research problem is emphasized. The qualitative research has been relied upon: 50 in-depth interviews with the lecturers, administrative staff (directors and managers) and students of the higher educational institutions; and 50 in-depth interviews with CPE representatives (managers and organizers, lecturers and trainers, and students). The research findings show that strict orientation towards KPIs in higher education, along with the evidence of predominantly negative incentives, do not correspond with long-term efficiency of educational process, while the interests of the main parties involved in the educational and research processes (students, teachers and lecturers) are virtually ignored. In CPE, a range of problems exists, including: low involvement of the adult population, due to low motivation to continue education and participate in the educational process; demand volatility for CPE programs; low quality of existing CPR programs caused by dumping in the educational services market; lack of a direct link between the upgrading of skills and the level of wages, as well as career growth; price barrier for the CPE students.

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