SFeDu
of.211, Gorgoko St., 88 
Rostov-on-Don
Russia
344002
+7 (863) 250-59-54
This email address is being protected from spambots. You need JavaScript enabled to view it.
te@sfedu.ru

TERRA ECONOMICUS

Foundations of public administration: The role of economics


TERRA ECONOMICUS, , Vol. 20 (no. 2),

The science of public administration is widely recognized as interdisciplinary, integrating a number of other social sciences. Although there is no unity about the sciences that should be included in the composition of the sources for the public administration’s study, the most common in the world literature are suggestions about political, managerial, legal sciences, and sociology. Economics is also mentioned, however, the theories and models that can make a significant contribution to improving the current state of the public administration science are not discussed. This article analyzes a widespread concept of New Public Management. We show how the elements that generate negative consequences in the provision of a number of public services, such as healthcare and education, are “embedded” in the design of this approach to reform the public administration system. These consequences occur due to the use of incentive contracts in which the valid measures of quality of services cannot be implemented. This fact encourages employees to engage in opportunistic behavior in the form of gaming. Many people call these negative consequences “unintended”, although they are such only because the reformers did not know a number of the principal-agent model and contract theory statements, which were already obtained at the beginning of the wide proliferation of the New Public Management. However, in the world literature there is a widespread point of view according to which the principal-agent model is among the scientific foundations of the New Public Management, which is far from reality. The article substantiates a number of economic theories to underpin public administration, to improve the quality of scientific foundation, as well as the level of education in this field.
Citation: Tambovtsev V.L., Rozhdestvenskaya I.A. (2022). Foundations of public administration: The role of economics. Terra Economicus20(2), 6–20 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-6-20

Continue Reading

Post-Soviet space thirty years on: Independence vs synergy


TERRA ECONOMICUS, , Vol. 20 (no. 2),

The article deals with the macro-outcomes and problems of socio-economic development of the postSoviet states as a result of 30 years of disintegrated existence. Among the components studied are economic, social (education and demography) and political factors. 11 out of 15 former Soviet republics, while demonstrating acceptable GDP growth rates, approached bankruptcy in terms of external debt. With the exception of Lomonosov Moscow State University, no university in the past 30 years has been included in the rankings of top world universities, indicating that national higher education systems are on the margins. The politico-military conflict potential of the post-Soviet space revealed a highly unstable equilibrium to which considerable Russian resources are being diverted. Post-Soviet space lacks ideological basis for its own projects of prospective development. A sequence of “colored” revolutions in the neighboring states occurs, with the increasing number of “hot spots”. The political status of Russiaʼs neighboring states allows almost half of its land border to be classified as a potential front line (6000 km). We contribute to existing literature by demonstrating that a single state regime was more advantageous for the former Soviet republics compared to current existence in the form of individual states.
Citation: Gousev A.B., Yurevich M.A., Ekimova N.A., Advokatova A.S. (2022). Post-Soviet space thirty years on: Independence vs synergy. Terra Economicus 20(2), 21–39 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-21-39
Acknowledgment: The article was prepared as part of the state assignment of the Government of the Russian Federation to the Financial University for 2021 on the topic «The study of alternative concepts of tax regulation as a driver for the new industrial revolution in Russia»

Continue Reading

Stagnation in Russia in geopolitical and economic contexts: New alternatives


TERRA ECONOMICUS, , Vol. 20 (no. 2),

The article shows that the new geopolitical context of 2022 makes the continuation of the Russian economy long-term stagnation unacceptable. The process of its overcoming involves identifying the fundamental causes of the situation that involve the system of socio-economic relations developed in post-Soviet Russia. The study of these relations causes the use of modern political and economic theory language and terminology. This theory supports a systematic picture of the relations of oligarchic-bureaucratic capitalism of a semi-peripheral type, which are the fundamental causes of the post-Soviet Russia economic stagnation. The historical roots of the current economic model genesis are shown, as well as such consequences of its domination as lagging behind the world economy, structural inefficiency, low social results. Economists who positively evaluate the results of reforms launched in 1990s are criticized. The profound transformations of the existing state policy are proposed as an alternative to the existing model. The proposed change includes the transition to an active industrial policy and selective planning, the socialization of property, the reduction of social inequality, ensuring eco-sociohumanitarian development priorities.
Citation: Tenyakov I.M., Khubiev K.A., Epstein D.B., Zazdravnykh A.V. (2022). Stagnation in Russia in geopolitical and economic contexts: New alternatives. Terra Economicus 20(2), 40–58 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-40-58

Continue Reading

The principles of taxation for digital economy


TERRA ECONOMICUS, , Vol. 20 (no. 2),

The paper deals with the principles of taxation in the context of an economy’s digitalization. The new Industrial revolution and digitalization are changing subjects of tax relations and the tax base, and, accordingly, the very ideas about the principles on which taxes should be built. In this regard, it is proposed to distinguish between a conditionally fixed and variable part in principles of taxation. The conditionally fixed part includes classical canons of benefit (the benefit principle) and solvency (the ability-to-pay principle), which have been widely recognized by many generations of scientists and practitioners. Their relative consistence is defined by the fact that the tax theory deals with the people’s behavior and human relations, but not with the production mode. The conditionally variable part includes principles, associated with minimizing costs of access to the tax base. In the context of digitalization, these are: obtaining secure digital information about business transactions in real time; digital algorithmization and automation of taxation; calculation and payment of taxes under smart contracts in accordance with economic policy’s imperatives of the state. They are conditional variables, because under the influence of technological progress, the tax base and conditions for minimizing the costs of its use are being transformed. It also was established that requirements for taxes and tax policy depend on the technologies’ life cycle. In its early stages, they need the most tax support. Such a support is more important for catching up countries than for advanced ones, since emerging economies do not have sufficient experience in promoting technological innovations, relevant institutions and high incomes, generated by mature technologies of previous generations. To stimulate new technologies, it is advisable to implement not only vertical (sectoral) measures (such as tax incentives for the microelectronics sector), but also horizontal (system-wide) and matrix (mixed) measures that take into account national and regional technological priorities.
Citation: Vishnevsky V.P., Goncharenko L.I., Dementiev V.V., Gurnak A.V. (2022). The principles of taxation for digital economy. Terra Economicus 20(2), 59–71 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-59-71

Continue Reading

Income inequality in contemporary Russia in the long-run historical perspective


TERRA ECONOMICUS, , Vol. 20 (no. 2),

In this article we focus on documenting the dynamics of income inequality in Russia and its patterns during the last decade of economic stagnation, relative to previous historical periods. We use a wide range of estimates from the data sets and the research literature: the official statistics from Rosstat, RLMS-HSE, the World Bank, WIID by the UNU-WIDER, findings provided by the research teams of J.C. Galbraith Jr., J.L. van Zanden, T. Piketty, as well as by their critics. Long time series on the dynamics of inequality in Russia, constructed by the author, are augmented by the data for the last decade, with revision of some estimates for previous periods. We expand our analysis of inequality issues, based on neoclassical human capital theory, by employing methods of institutional economics and economic sociology. Considering the recent literature on relationships of inequality measures with their perceptions, the article provides a broad pattern of inequality as an institutional feature of the post-Soviet Russia society. Over the past decade, the dynamics of income inequality in Russia has been weakly expressed: according to the evidence from most of the sources, its decline has sharply slowed down; according to other papers, it has increased moderately. Historical and cross-country comparisons suggest that inequality remains relatively high. I highlight the issues of correlation between the dynamics of inequality of wages, of total income, and the level of poverty, reduction of which appeared to be more impressive than that of measured inequality. I generally confirm my earlier outlook as regards persistence of an elevated level of income inequality in Russia. The paper concludes that the recent adoption of elements of progressive taxation provides the basis for reduction in wage differentials by 5-6 percentage points measured by the Gini index in the perspective of 10–15 years.
Citation: Didenko D.V. (2022). Income inequality in contemporary Russia in the long-run historical perspective. Terra Economicus 20(2), 72–85 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-72-85
Acknowledgment: The article was prepared in the framework of a research grant funded by the Ministry of Science and Higher Education of the Russian Federation (grant ID: 075-15-2022-326).

Continue Reading

Challenges to environmental policies in Russia: The case of APG flaring


TERRA ECONOMICUS, , Vol. 20 (no. 2),

Growing concern over the impact of climate change has led to numerous commitments, especially among members of the Paris Agreement, to reduce greenhouse gas emissions. The implementation of environmental laws is explored through the lens of public policy theory with a case study on the implementation of legislation to combat the flaring of associated petroleum gas in Russia (Decrees 7 and 1148 of 2009 and 2012). The increase of flaring volumes from 2010 to 2020 reveals that the legislation did not reach compliance. The authors rely on a qualitative study based on 22 expert interviews and the triangulation of findings with secondary sources to offer new interpretations of the reasons for ‘policy-failure’, yielding new insights on the structural and organizational factors that compromise the implementation of environmental legislation and policy recommendations on overcoming enforcement inconsistencies. The findings highlight the necessary balance between participatory mechanisms and top-down enforcement, the risks associated with a lack of community involvement and the specific challenges associated with environmental governance. While the existing literature places a pronounced emphasis on the demobilization of social actors in explaining poor policy compliance, this paper argues that other factors, such as the internal organization of oil companies, enforcement inconsistencies and structural market problems, may be more influential in determining policy outcomes.
Citation: Crowley-Vigneau A., Baykov A., Kalyuzhnova Y. (2022). Challenges to environmental policies in Russia: The case of APG flaring. Terra Economicus 20(2), 86–98. DOI: 10.18522/2073-6606-2022-20-2-86-98

Continue Reading

Social investment: Problems and development strategies


TERRA ECONOMICUS, , Vol. 20 (no. 2),

We present the findings of a survey aimed at identifying expert opinions about social investment policies. Our sample includes respondents from Russian regions (n = 160) involved in the production of social services – specialists and heads of state social institutions, non-profit organizations, social entrepreneurs, and authorities. Research findings suggest key factors that might contribute to the development of non-profit sector of social services and social entrepreneurship. The state and local governments are considered by experts as the main investors, while financial investments in the form of budget subsidies and grants are the most anticipated forms for solving regional social issues. Investing in infrastructure and personnel is among the most popular areas for social investment related to the development of new suppliers. According to the respondents, the priority spheres for social entrepreneurship are investments to children, youth, health, and active longevity. The survey participants view social investment as a strategy for the social development of regions based on the achievement of social goals combined with economic results. The professional community considers the lack of interest in the new type of entrepreneurship among residents of the regions, including private investors, and the weak interest of local governments as risks for social investment policy and social entrepreneurship.
Citation: Borodkina O.I., Starshinova A.V., Arkhipova E.B. (2022). Social investment: Problems and development strategies. Terra Economicus 20(2), 99–110 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-99-110
Acknowledgment: The research is prepared with the financial support of the Russian Science Foundation, project № 19- 18-00246 “Challenges of transformation of the welfare state in Russia: Institutional changes, social investment, digitalization of social services”, implemented at St. Petersburg State University.

Continue Reading

Civil society, social networks and cultural activity in digital environment


TERRA ECONOMICUS, , Vol. 20 (no. 2),

The article examines cultural activity related to digital social networks viewed as the institution of civil society. We present the results of the original study of theater profiles in social networks, assessing their influence on theatre demand and audiences. The study addresses general and specific properties of social networks, as well as theoretical and applied aspects of social network analysis, arising on the digital platforms. Our sample includes Russian federal theaters: eight opera and ballet theaters, thirteen drama theaters and two children’s theaters, which have official accounts in social networks. The number of subscribers and the date of account creation were analyzed, along with statistical data on the theaters’ performance from the supply side. We contribute to the research literature by modeling attendance and testing the hypothesis on positive relationship between theater demand and the number of subscribers to social media accounts. Multivariate statistical analysis identified composite factors, including: subscribers to theater accounts; variety of theater posters; updating of repertoire; scale of theater promotion; integral index of theater offer. We present two options for ranking federal theaters by the composite factor of subscribers to theater accounts and by the integral index of supply. Comparative analysis of the selected groups of theaters is conducted. The estimated composite factors characterizing the first and second line of each federal theater provided the basis for a numerical model of theater attendance, including four linear equations. The regression analysis confirmed the validity of our hypothesis and revealed a significant positive effect of the composite factor of social network subscribers on the theatre demand in all four models.
Citation: Rubinstein A., Sokolova E., Dudkina E. (2022). Civil society, social networks and cultural activity in digital environment. Terra Economicus 20(2), 111–131 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-111-131

Continue Reading

Adapting to “imposed” institutional change (The case of Western institutions implemented in Post-Soviet Russia)


TERRA ECONOMICUS, , Vol. 20 (no. 2),

We analyze the Russians’ perception toward imported “Western” institutions through the lens of their dysfunctionality which occurs due to specific national environment. The empirical data for this study came from all-Russian surveys organized and conducted by the Institute of Sociology RAS (Moscow, Russian Federation) from 2010 to 2020, as well as from focus groups conducted in the Southern Federal University. We apply four basic theoretical constructs – non-acceptance, acceptance, adaptation (through obedience), and simulation (bounded rationality) – to analyze the consequences of “imposing” institutions (including the problem of “indicator-oriented work”). The problems related to Western institutions implementation in Post-Soviet Russia are considered with a particular focus on the sphere of education. The key point for our analysis is the perception of ongoing institutional change by the participants involved. The paper contributes to existing literature by providing recommendations on developing methods to adapt and transform the imported institutions in modern Russia.
Citation: Kapoguzov E.A., Latov Y.V. (2022). Adapting to “imposed” institutional change (The case of Western institutions implemented in Post-Soviet Russia). Terra Economicus 20(2), 132–146 (in Russian). DOI: 10.18522/2073-6606-2022-20-2-132-146
Acknowledgment: The article was supported by the state assignment of the Financial University under the Government of the Russian Federation, project “Participation of Russia in Export and Import of Institutions”.

Continue Reading

Economic aspects of financial literacy in the context of sustainable management


TERRA ECONOMICUS, , Vol. 20 (no. 2),

The paper is focused on financial literacy in the context of teaching sustainable management to young people (e.g. increasing the engagement of youth in fostering the United Nations’ Sustainable Development Goals (SFGs)) represented by the university students. The main aim of this paper was to evaluate the attitudes of young people to the management of funds and obtaining the knowledge required for using financial tools and instruments. When it comes to shaping up the sustainable behavior of individuals, financial literacy is gaining a special importance in in this process. The questionnaire survey was used as a tool for collecting the primary data used for feeding the empirical model used in this research. A sample of 1,437 randomly selected respondents took part in our own questionnaire survey prepared and carried out by the research team. Participants of the survey were young people represented by the students of the three selected random universities from the Czech Republic. First, the area of the overview of the respondents’ financial resources was monitored. In this case, 97.28% of respondents answered “yes” or “rather yes». In terms of monitoring personal income and expenses, i.e., in the question of whether respondents created their own budget, 81.77% of respondents in question answered «yes,» most often indicating that were were using information and communication technologies for these purposes. All in all, our results confirm that the level of any individual’s financial literacy has an impact on this individual’s sustainable management skills. Furthermore, it becomes apparent that financial literacy within the context of sustainable management plays a crucial role in the social and economic development of any society. Our results might be informative and useful for both the policymakers and researchers working in the fields of promoting sustainable behavior and financial literacy through introducing effective sustainable education and boosting efficient management skills.
Citation: Beranová M., Severová L. (2022). Economic aspects of financial literacy in the context of sustainable management. Terra Economicus 20(2), 147–159. DOI: 10.18522/2073-6606-2022-20-2-147-159

Continue Reading