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 Eurasian Economic Union (EAEU) is relatively new regional integration block formed in the beginning of 2015 and now consists of five members (Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia). The main document that establishes the basic principles of the functioning of the EAEU is the Agreement on EAEU that also covers the specifics of application of non-tariff measures (NTMs) on a very aggregate level. Overall NTMs adopted within EAEU are equally applied by the members of the Union. But still these measures may find their reflection in the national legislation of the member-states.
In order to analyze EAEU NTMs two sources of information were used: website of the Eurasian Economic Commission and TRAINS/WITS database. They were used as complements and allowed to find the most up to date versions of the legal acts that cover trade- and NTM-related aspects of EAEU functioning.
The Republic of Kazakhstan became one of the first members of the Eurasian Economic Union (EAEU) that was formed on January 1, 2015. As a full member this country had to change its legislation in accordance with the EAEU legal acts. This article is devoted to non-tariff measures (NTMs) applied by the Republic of Kazakhstan in the context of the Eurasian economic integration. The importance of NTM research is defined by the fact that excessive regulatory policies may result in decreased growth rates of economy and overall loss of welfare. UNCTAD’s database (TRAINS/WITS database) was used in order to analyze national NTMs. In total 239 national actively applied NTMs were analyzed and systematized. Most of them are either import-related technical measures (Technical barriers to trade - TBT, Sanitary and phytosanitary measures - SPS measures) or export-related technical measures. Together they account for approximately 94.8% of applied national NTMs. In addition to the analysis of NTMs in terms of their type and type of affected product, author revealed the correspondence of Kazakhstan’s national NTMs to basic principles of the World Trade Organization (WTO): most-favored nation (MFN) and national treatment clause. Thus our research determined measures that represent a violation of MFN principle or national treatment clause. So these NTMs may be barriers to trade of the Republic of Kazakhstan with the other countries. Further research of ad valorem equivalents (AVE) of the measures is required in order to determine the economic effects of the non-tariff measures applied by the Republic of Kazakhstan.
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 main purpose of the research is to identify key models of oil exporting countries inclusion into oil refining global value chains. The countries possess high potential of integration into the processing sector with higher value added, but tend to implement it with different degrees of efficiency. Positive balance of foreign trade in refined oil products, calculated in value added terms, can be accompanied by dependence of country’s exports on foreign value added content, and negative balance can be explained by country’s imports of intermediate products with low level of processing to insure domestic production. Five of eight analyzed oil exporting countries show positive dynamics of inclusion into oil refining global value chains. The world biggest oil exporter, Saudi Arabia, doesn’t rely on foreign value added in its exports, whereas country’s forward participation index in global oil
refining sector is very high. USA, Canada and Norway pursue specific models of integration into oil processing, which are developed in compliance with countries’ energy policies and aimed to create higher value added. Despite Kazakhstan dependence on Russian economy the country reduces foreign value-added content in its exports of oil refining products and improves participation in GVC. Two of the world leading oil exporters, Mexico and Brazil, demonstrate negative dynamics of inclusion into oil processing sector. High dependence of production on foreign value added, negative balance of foreign trade and poor integration into complex links within value chains are key parameters of ineffective GVC inclusion. The case of Russian Federation could be identified as positive integration with some obstacles. High volumes of Russian exports in oil refining products, positive trade balance in value added terms and high GVC forward participation index are accompanied by country’s increasing dependence on foreign value-added which forces Russia to rethink its participation in global refining sector and implement supporting policies.
Subject This article deals with the issues related to the imbalance in the distribution of cities, which poses a threat to the economic development and social and political stability of Russia.
Objectives The article aims to estimate the temporal growth of Russian cities between 1897 and 2014.
Methods During the consideration of the subject matter, we applied Zipf's law, Gibrat's rule of proportionate growth, and the correlation method. The article analyzes the data of official statistics and archival materials for 1897–2014.
Results The article presents the results of the analysis of distribution of cities of Russia by number of inhabitants in the period of 1897–2014 and a temporal correlation matrix of Russian cities' growth rate during the specified period.
Conclusions The process of urban growth for the period 1897–2014 is ambiguous. Since 1989, large cities have been growing faster than the small ones due to the migration of people from small cities to larger ones. In general, the urban system of Russia is characterized as stable with uneven distribution of cities and high concentration of population in the largest of them.
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.
Participation of a country in global value chains is highly dependent on types of interaction with its major trading partners. The purpose of current research is to uncover the US influence on the Canadian pharmaceutical industry insertion into global value chains. The first part of the analysis is devoted to key trends of the US and Canadian pharmaceutical industries development under the expansion of global value chains. As a result, the following hypotheses are investigated: (1) Canada's participation in pharmaceutical value chains is mostly regional other than global; (2) Canada’s regional value added is primarily generated through cooperation with the US pharmaceutical sector; (3) dominant positions of the US corporations on the world as well as Canadian pharmaceutical markets stifle Canada’s integration into global value chains. The second part of the research describes the quantitative approach to the hypotheses testing. For instance, data from the World Input-Output Database is used to calculate the origin of value added based on the geography and product type (national and foreign value added in the exports of final and intermediate goods). The final part of the paper deals with the data interpretation and contains conclusions. Namely, it was found that pharmaceutical GVCs in North America are in fact regional for most countries and Canada is not the exception (first hypothesis proved). Further, foreign value added content of Canadian pharmaceutical exports is primarily generated in the US (second hypothesis proved). At the same time, the last hypothesis has not gained support in current research. The share of foreign value added (other than the US or Mexico) in Canadian pharmaceutical exports demonstrates significant growth during the period of 2002-2014. Thus, it can be stated that Canada has a positive experience of integration into GVCs under dominant trading partner.
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.