17/1 Malaya Ordynka Str., Moscow, 119017
School Head — Leonid Grigoryev
Deputy Head — Natalia Supyan
Deputy Head — Olga Klochko
World Economy Section — Petr Mozias
Section of Energy and Raw Material Market — Valery Krukov
World Trade Section — Alexey Portanskiy
Section of Global Economic Regulation — Vladimir Zuev
The trend on electricity grids digitalization is gradually leading to the shift of busi-ness value towards more sustainable and efficient electricity services. Sustainability and efficiency are challenged by the increasing demand for electricity which is fol-lowed by a dramatic transformation of energy systems. While smart grids seem to be crucial in this process, there is a discrepancy in understanding the costs and benefits for the multiple actors involved. In addition, there are benefits of smart grids that cannot be measured directly in terms of money, such as higher energy system reliabil-ity or commitment to carbon reduction. Despite the rise of interest to the managerial aspects of smart grids implementation and development, many aspects remain out of the scope. This paper contributes to the research of smart grids by providing a con-ceptualized business model that would allow for value co-creation, delivery and cap-ture. A Russian energy sector perspective is primarily considered throughout the pa-per and the results are supported by evidence from interviews with of industrial ex-perts
The monograph deals with the issues of macroprudential policy that is organically linked to the system of international banking regulation. The author looks into interrelationship between macro- and micro-prudential regulatory mechanisms, explores the role of macroprudential regulation in minimization of systemic risks, as well as the extent to which the effectiveness of macroprudential tools and techniques will help ensure stress resilience of the banking sector. The author also delves into the most disputable topics on the tradeoff between macroprudential regulation and monetary policy. Without doubt the monograph is a landmark book that expands the most complex topic of macroprudential policy in the post-crisis recovery, as well as the specifics of macroprudential regulation in the post-crisis banking regulation paradigm shift.
The institutional aspect of the post-crisis banking regulation reform (Basel III) still remains unsettled, and as such undermines regulators’ efforts in shaping a seamless platform for international financial intermediation. On the other hand, lack of perspectives for global acceptance of the Basel III standards amid internationalization of banking activities is one of the main reasons of regulatory asymmetries that are difficult to handle at the national level. Under these circumstances, efforts of the governments and financial regulators are a central core of their policy in protecting banking sectors from systemic risks: It becomes imperative to bring together national mechanisms of banking regulation and to develop a regional system of regulatory institutions, as is evidenced by the single supervisory mechanism in the euro area countries.
Strengthening stress-resilience of the national banking sectors in the Eurasian Economic Union (EAEU) and expansion of banking activities to the Eurasian economic integration will require a conceptual framework of the EAEU banking regulation system. However, different regulatory regimes in the EAEU member states along with the lack of supranational regulatory institutions may slowdown the progress of the Eurasian mechanism of banking regulation. This means that operationalization of the EAEU regulatory mechanism will depend on whether the “mini-Basel III” format as a methodological hub of the regionalization and supranationalization will act as an enabler of resolution of the regulatory trilemma among the feasibility, relevance, and opportunities of supranationalization.
The institutional aspect of “mini-Basel III” is intrinsically linked to the integrity and consistency of the supranational authority for regulation of the EAEU financial markets being an authority documented in the Treaty on the EAEU; however, the costs of regulatory alignment may exceed the advantages of a single-institution regulatory architecture owing to the existent and tacit risks of heterogeneity of the national regulatory models. Stemming from the complex financial sector environment that falls short of valid and reliable institutional fundamentals, we propose alternative scenarios for the EAEU regulatory mechanism that could be sought for optimization of regulatory logistics and algorithms of regulatory alignment. Based on systematization of the benefits and weaknesses of each of the scenarios as well as on comparative analysis as to whether the proposed scenarios would ensure continuum of financial intermediation and financial stability, we found that currently there are no priority approaches to the design of a supranational institutional system in the EAEU. At the same time, identical structure of the national banking sectors together with the least expensive scenario approach could underpin the process of regulatory supranationalization; however, to secure integrity of the EAEU supranational authority, it should be complemented with an authority that would be responsible for coordination of the EAEU-wide regulatory alignment.
The chapter examines the issues of adaptation of Russian banks to international banking regulation reform (Basel III) including their role in securing financial stability. Regulatory compliance is the starting point for fair competition of Russian banks in the international financial markets, which is one of the priorities in the context of Russian banking sector competitiveness as a successful implementation of Russian foreign economic policy. At the same time, the competitiveness of Russian banks will depend on their stress resilience to macro-level instability and to the aftermath of external economic sanctions, which, in turn, should ensure the continuum of their financial intermediation function. We systematize factors constraining international investment cooperation of Russian banks and propose measures to strengthen stress resilience and competitiveness of Russian banks in the context of deficiency of funding sources, as well as continuity of external economic sanctions and their possible expansion.
The global community confronts a comprehensive and interconnected array of compelling economic, development and security challenges which require effective global governance. At the centre of world governance stand the new plurilateral summit institutions; the G8 and G20, and UN summits on subjects such as sustainable development and climate change. Many observers and participants regard the performance of these summits as inadequate and doubt their ability to cope with increasingly complex and numerous global challenges. This book critically examines how effectively central global institutions comply with their commitments and how their effectiveness can be improved through accountability measures designed to raise compliance and deliver better results. Expert contributors assess compliance and accountability at the key global institutions to provide an important resource for policymakers and scholars in political science, governance and accountability.
Development of Russian electric power industry in recent years is characterized by a multitude of problems and a decrease in a number of performance indicators. It dissatisfies consumers and encourages them to implement various measures to reduce risks and costs of energy supply. This creates preconditions for the emergence of «active» consumers in the domestic electric power industry. Given this trend it would be appropriate to switch from Supply Side Management to Demand Side Management. This will require the implementation of a wide range of measures, including strategic issues of industry development, legal framework and transition to a customer-centric market model.
This article evaluates future freight traffic along the northern latitudinal corridor. It shows possible bottlenecks on the latitudinal main lines connecting the country’s east and west. It also gives historical analogies for making strategic decisions with respect to transport projects in Russia’s Arctic Zone. In addition, it justifies the advisability of using national economic criteria to evaluate large infrastructure projects. It also demonstrates how important it is for annual economic growth of even 2 percent to create a new route across the Ural Range on the border of the Komi Republic, Sverdlovsk Oblast, and Khanty-Mansiysk Autonomous Okrug.
The G20 and the BRICS grouping of Brazil, Russia, India, China and South Africa were born in a crowded world of international institutions in the wake of the 2008 financial and economic crisis. The G20 pledged to manage the crisis, reform international financial institutions and devise a new global consensus. Designated by its members as a premier forum for international economic cooperation, the G20 became transformed into the “hub of a global network” operating on the universal principles of rationality, norms building and openness. The BRICS committed to fostering cooperation, policy coordination and political dialogue on international economic and financial matters and reform of international institutions to reflect changes in the world economy. Set up to tighten economic ties and promote fair and more equitable multipolar order and global governance, the BRICS entered into its second “Golden Decade” as a concert of rising powers rapidly institutionalizing and gradually generating stronger political influence.
The past few decades have witnessed the development of an increasingly globalised and multipolar world order, in which the demand for multilateralism becomes ever more pronounced. The BRICS group established in 2009, has evolved into a plurilateral summit institution recognized both by sceptics and proponents as a major participant in the international system.
Addressing the BRICS’s role in global governance, this book critically examines the club’s birth and evolution, mechanisms of inter-BRICS cooperation, its agenda priorities, BRICS countries’ interests, decisions made by members, their collective and individual compliance with the agreed commitments, and the patterns of BRICS engagement with other international institutions. This volume advances the current state of knowledge on global governance architecture, the BRICS role in this system, and the benefits it has provided and can provide for world order.
This book will interest scholars and graduate students who are researching the rise and role of emerging powers, global governance, China and India’s approach to global order and relationship with the United States, Great Power politics, democratization as a foreign policy strategy, realist theory-building and hegemonic transitions, and the (crisis of) liberal world order.
This article aims to identify effects of client orientation on business models of central power generation companies.
Five major Russian wholesale electricity market players were selected for the analysis conducted applying A. Osterwalder and Y. Pigneur’s ‘Business Model Canvas’. To identify the changes induced by client orientation, the progress of companies’ business models was traced over 6 years; from 2009 to 2015.
Five major trends in business model changes due to client orientation were identified:
1. Declaration of client orientation and adoption of client service standards;
2. Advent of business diversification in favor of engineering, construction, service, operation and maintenance of generating facilities;
3. Increase in vertical integration;
4. Increase in diversity of communication channels with consumers;
5. Increase in diversity of customer relationships.
The results were compared with those obtained in international studies. Conclusions about international and local character of the trends are presented.
The study contributes to knowledge of current and upcoming changes in the business of central power generation triggered by the advent of electricity prosumers. It is valuable both for management decision makers and theorists.
The paper provides the target model for innovative ecosystem of Russian power industry. The system is based upon the key attributes of the ecosystem, which were revealed within the theoretical part of the paper: limited state intervention, free interaction of the participants and the availability of proper infrastructure. At the same time the proposed target model provides a solution for the current problems of existing prototypes of ecosystem in the Russian power industry via integrating the key actors with the focus on delivering added value to the end user.
Russia is estimated to hold the world's largest technically recoverable shale-oil resources. The conventional oil resource base is still very large, but there are doubts about how much is economically recoverable. Increasing attention is given to unconventional oil. The purpose of the article is to assess whether fundamental conditions for sustainable, profitable production of unconventional oil are in place. Compared to the successful development of unconventional oil in the USA, Russia has several disadvantages. The Russian oil sector is dominated by big companies without the flexibility in methods and decision-making required in very heterogeneous unconventional projects. Infrastructure is less accessible in Russia than in most American projects. On a more fundamental level the relatively poor condition of geological data collections is a serious cost increasing factor, and the system for development and dispersion of new technologies has critical shortcomings. Russia lacks appreciation of risk taking and a corresponding regulatory framework, as well as relevant financial mechanisms. Nevertheless, government documents almost exclusively focus on technology as such as well as on taxation and tax benefits as preconditions for successful development. Without addressing the fundamental institutional problems, the potential for exploiting the resources base will be limited.
The paper deals with the issues of concentration of economic activity in Russian regions influenced not only by factors of the “first nature” – presence of minerals, fertile land, favorable geographic position, but also by factors of the “second nature”, in particular, the agglomeration effects and potential savings in the scale. Analysis of the geographic concentration and the region-specific focus reflects the general trend in the concentration of industrial production, investment and human resources, provides the necessary information framework for a harmonized economic policy. The purpose for the study is to theoretically justify and analyze economic activity concentration in terms of assessment of concentration and specialization of Russian regions over time. The paper reveals terminological aspects of concentration, agglomeration, specialization, agglomeration economics and urbanization. The applied methodological tools of assessment include the localization factor, Herfindahl-Hirschman and Krugman concentration and specialization indices, Gini index. The research novelty lies in the formation of the terminological framework of the location theory, namely the definition of agglomeration as a process of concentration of activities in a region supported by circular logic at several levels with a distinction between its two types – “economy of localization” and “economy of urbanization”; in the identification of the relative and absolute types of geographic concentration. Elements of the research novelty are contained in the methodological framework of the study – the system of traditional indicators for assessing the concentration and specialization of regional economy is supplemented by relevant Krugman indices similar in content to the Herfindahl-Hirschman indices, but reflecting the heterogeneity of development to a greater extent; the localization factor is used to identify potential economic clusters in the territory when making decisions in the process of regions’ management. High concentration of investment and industrial production in Russian regions, consistent upward trend of the labor force is revealed. This situation leads to increased inter-regional inequality. The manufacturing industry has experienced a decline in employment. The tendency towards concentration is identified in the pulp and paper industry, publishing and printing, metallurgy, manufacturing of transport vehicles and equipment, and chemical production. The regions with a high level of specialization include Kamchatka Krai, Chukotka Autonomous Okrug, the Sakhalin, Magadan, Ivanovo and Lipetsk oblasts. The obtained results can be used in scientific research to analyze the concentration of economic activity, assess the development of agglomeration processes, or as recommendations for implementing the economic policy in the regions.
Book of Proceedings
Minerals and raw materials today play, have historically played and will continue to play in the foreseeable future, a huge role in the economy of Russia. They will also continue to structure Russian society and influence political and policy decisions on many social and economic problems, and indeed shape the country’s overall system of public administration. The central role of energy and raw materials is explained not only by their exceptional size and concentration within the geographical boundaries of a single country—oil and gas, gold, platinum, polymetallic ores, diamonds and rare earth elements—but also by the history of Russian state formation, which evolved in parallel with the exploration of new sources of raw materials in increasingly distant territories.
Eurasia, wherever one draws the boundaries, is very much at the centre of discussions about today’s world. Security across Eurasia is a global concern and has been subject to a range of discussions and debate. However, the current tensions over security and world order, with the growing challenges from Eurasia and Asia, require more intense scrutiny. The goals of the book are to explore the challenges facing the region and to assess how to achieve economic, social and political stability in the Eurasian core.
In Chapter 11, “Explaining G20 and BRICS compliance,” Marina Larionova, Mark Rakhmangulov and Andrey Shelepov explore the internal and external factors influencing G20 and BRICS compliance. They examine, in turn, the G20 and BRICS’ commitments, their compliance and the distribution of commitments and compliance across issue areas, covering the G20 from 2008 to 2014 and the BRICS from 2011 to 2015. As internal causes of compliance, they examine and compare the trends in the compliance catalysts of priority placement, numerical targets, time lines, self-accountability pledges and mandates to implement and/or monitor the commitments’ implementation. As external causes, they focus on the demand for collective actions and the club members’ collective power to respond and deliver on the pledges made. They then explore if self-accountability measures built by the institutions in response to the demand for effectiveness and legitimacy facilitate compliance. They next highlight the catalysts, causes of compliance and their combinations with the greatest power to incentivize implementation. They conclude that a shared sense of urgency for collective actions and a systemic self-accountability measure incentivize implementation, with the catalyst of a self-accountability measure raising compliance and the catalyst of a numerical target lowering it.