-Under-promise and then over-deliver: they will look like heroes
-Over-promise and then under-deliver: they will look like losers
collegeboy16 wrote:Arent they spending like 600 billion dollars already for the military- thats stimulus.
Austin wrote:At todays GDP of ~ $ 1850 , spending $300 USD for the next 6 years or $50 per year if CBR borrows it will be around 16 % of GDP .....that would increase the public debt to 27 % of GDP.
Worth the money , many BRIC country have Public Debt well abouve 50 % of GDP and let me not get started on EU or US where it high as 80-90 %
If you spend $300 from Gov Money you can aim for USD 100 - 200 from Private Investement thats strong investement of ~ $ 400-500 for next six years.
Output in the civil aircraft industry increased by 60%
Industry and Trade Minister Denis Manturov spoke at the Government Hour in the State Duma, during which summarized the preliminary results of the Ministry in 2013 and spoke about the achievements and initiatives aimed at comprehensive development of Russian industry.
In 2013, the highest growth was demonstrated by radio-electronic industry, defense industry, pharmaceuticals and aeronautics. Positive dynamics observed in some segments of the light industry, chemical industry and other industries.
Significant growth was recorded in the aircraft industry. Radically changing the situation in the civil aircraft sector, where over the last year production volume increased by 60%.
As planned, soared 25 Superjet - 2 times more than in 2012. That is already in the third year of serial production, he took more than 20% of the global market for regional aircraft turbojet dimension 90-110 seats.
This year we plan to produce more than 40 aircraft. Due to the fact that this car has received international certification, opened access to the world market - has already begun delivery of the first aircraft to Indonesia, Laos, Mexico.
In 2013, the Ministry of Industry sent 2 billion rubles to subsidize interest on loans for the purchase of leasing companies aircraft that pass into operation by Russian companies. This mechanism provides substantial support for the production and domestic sales of domestic aircraft. This measure has proven its effectiveness and has been extended for subsequent years.
In addition to sales promotion, the biggest challenge in aviation is to ensure technological leadership. It aims to solve created National Research Center. Zhukovsky , which will connect the capacity of key research institutes specializing in aerodynamics and stability, propulsion and trials. This will ensure a high controllability in aviation science sector, will provide a concentration of resources on the creation of scientific and technological potential, especially in the critical and breakthrough technologies.
SIC opportunities Zhukovsky allow it to become a powerful center of the design, which will provide engineering services to create innovative engineering designs. Draft federal laws on the National Research Centre and changes to some legislative acts submitted to the State Duma.
Thanks to the timely running program of preferential car loan failed to support the demand for cars produced in Russia and light commercial vehicles.
Total program was granted more than 260,000 loans. It is more than 20% higher than the initial forecast. Prior to 2016 the overall cost of the program will amount to 8 billion rubles. However, only in 2013 the federal budget revenues in the form of VAT and excise duties with cars sold exceeded 22.5 billion rubles.
This year is supposed to focus on the support of a segment of commercial vehicles, which in 2013 showed a decrease. It is planned to develop and launch incentives for the purchase of trucks and buses to natural gas. This will contribute to increased production of these types of transport, and processing of hydrocarbon raw materials domestically. And, most importantly, improve the ecological situation in the city.
The Government has also approved the roadmap and subroutine Composites.
Total funding sector for 2013-2016. amounted to 9.8 billion rubles, of which budget - 5.4 billion rubles.
In this industry, along with new capacities created and new products. Already have the first results. On Srednenevsky shipyard built passenger catamaran. "Uralvagonzavod" first presented at the Salon International engineering and technology "EXPO 1520" is unparalleled composite hopper car. Group of companies "Ruskompozit" Bashkortostan built the first footbridge made of composites. Running two plants "United Aircraft Corporation" in Ulyanovsk and Kazan, which will ensure the release of composite airframe components and aircraft wing for MS-21 and Superjet.
Starting this year, plans to increase the volume of production and consumption composite industry - not less than 25% per year. Already last year the increase in production was more than 20%.
RARE EARTH METALS
Since last year, the subroutine is implemented on rare-earth metals , which are fully secured financial resources.
For the development of competencies in the development of drugs and medical devices of new generation investment projects financed by the Ministry to establish a science and technology, innovation centers and pilot plants based on industry-leading universities. Now in the 8 projects that are in major cities (Moscow, St. Petersburg, Yaroslavl, Nizhny Novgorod, Kazan, Yekaterinburg, Volgograd).
Substantial support domestic manufacturers in pharmaceuticals through the state order. For example, the Ministry of Industry and the Ministry of Health developed and orders a draft decree on which preferences in procurement of medicines to the needs of state and municipal institutions are set depending on the degree of localization of production. Given the fact that the state order is the third part of the market - it is a very effective measure contributing to the development of domestic capacities and enabling foreign companies to move to full production cycle in Russia.
ROBOTICS AND BIOTECHNOLOGY
In 2014, the Ministry also plans to start work in promising segments such as robotics and biotechnology.
According to Denis Manturov has already been prepared by the subroutine "Industrial Biotechnology", which will be part of the state program "Development of the industry and increase its competitiveness."
INDUSTRY AND TRADE INITIATIVE
Head of Industry and Trade told about Insturment aimed at complex impact of industrial development in general.
In particular, in order to support the creation of new industries developed by the Ministry of Industry approved the subsidy mechanism of the new integrated high-investment projects in priority areas of the industry. And grant will cover nine tenths of the refinancing rate and per ruble of budget investments will be attracted over 10 rubles of private investments. This mechanism provides 2 billion over the next two years.
Additional support for such projects will also be provided in the form of subsidies for R & D, which allocated more than 5 billion rubles for 3-year period. But her condition would be an obligation to provide the recipient to produce a certain amount of products. Thus, the reliability and the commercialization of new developments efficiency of budgetary funds.
The Minister noted the importance of implementing the mechanism of tax incentives that will help accelerate the development of new enterprises and the growth of the industry as a whole.
Under discussion with the Ministry of Finance and Economic Development is the question of subsidizing the creation of industrial infrastructure of industrial parks.
One of the main initiatives promoted by the Ministry of Industry - the creation of new engineering centers on the basis of technical universities in the country, which should provide a transfer of modern technologies in production. The Ministry had prepared a subroutine in this direction with the financing of more than 5 billion rubles for the next 5 years. Already initiated 12 new centers.
Denis Manturov said that in the first half of 2014 to the President received a bill "On industrial policy," in which the mechanisms and measures of state support for the industry will be linked into a single, efficient system. The law should coordinate the actions of all levels of executive and local authorities aimed at the development of industry in general and the creation of new industries in the regions.
Hannibal Barca wrote:Russia has about 10 years to build a serious individual targeted, mostly private, industrial sector. You know, cars, mobiles, refrigerators, shoes, pharmaceutics etc. everything.
This is important because will help Russia to close the technological gap in thousand of different technologies and applications leading to a modern and diverged economy.
In the same time should grow as much as possible the public, strategic industrial sector where she is traditionally strong.
Planes, tractors, power plants, big and small arms, space technology, this stuff.
Financial sector comes last, it is more an indicator of the status of the economy and not vice versa.
In the process should absolutely keep the budget balanced the inflation low the ruble relatively strong and the debt stable. Anything else is recipe for disaster.
If they succeed in this, they will finally have a diversified, strong, economy, even if relatively small compare to China and later India (nothing can be done against demographics).
Else, will never stop being a hydrocarbon based, weak, unstable economy, with a relatively low standard of living and soon an economic satellite and proxy of China.
10 years and the clock is ticking.
However, labor productivity is now less than half the level of most developed economies – at 3.1 percent. In coming years, productivity must increase by 5%-6% a year, twice the current rate. "Only in this way can we overcome the efficiency gap," the president said. "I am confident that we are capable of doing that," he concluded.
The current abyss between consumption and productivity is dangerous, Putin said. “Living off rent from natural resources, at the expense of future generations, unearned wealth cannot be stable or long term," he added.
This week Ekspert magazine published about a survey conducted by the Audit and Consultancy Group Finexpertiza (CPA Associates International in English) which calculated the labor productivity in several countries. The calculation is simple. How many people does a country need to produce 1 million dollars of its GDP? It turns out that Russia’s labor productivity is 5 times lower than those of the developed countries, but 3 times higher than that of China and 6 times higher than that of India. To produce 1 million dollar of its GDP Russia needs 57 people. Brazil needs 62 persons, China 152 and India 340. In Germany it takes only 13 people to produce 1 million dollars of its GDP, In the US this number is 11.
Austin wrote:This is 2011 figures for productivity
Labor productivityThis week Ekspert magazine published about a survey conducted by the Audit and Consultancy Group Finexpertiza (CPA Associates International in English) which calculated the labor productivity in several countries. The calculation is simple. How many people does a country need to produce 1 million dollars of its GDP? It turns out that Russia’s labor productivity is 5 times lower than those of the developed countries, but 3 times higher than that of China and 6 times higher than that of India. To produce 1 million dollar of its GDP Russia needs 57 people. Brazil needs 62 persons, China 152 and India 340. In Germany it takes only 13 people to produce 1 million dollars of its GDP, In the US this number is 11.
They need to reach German standards in labour productivity
Hannibal Barca wrote:
This is nothing else than taking a million and divide it with the gdp per capita
A nice way to pretend that you worked to produce an article
Efficiency is indeed a problem but it is a completely different figure.
Allowing foreign currencies to be freely traded with the home currency is common in many countries. But giving a foreign currency the same status as the home unit is not, and China has acted differently.
On Dec 8, the country announced that it was allowing the Russian ruble to circulate unrestricted in Suifenhe, Heilongjiang province, bordering Russia. Although the rule applies to only one city, it is the first time that Beijing has given a foreign currency the same legal status as the renminbi on Chinese territory.
This deregulation tells a few things.
First, Chinese policymakers are indeed increasingly embracing market forces.
Generally the government remains prudent in liberalizing the foreign exchange system and insists on setting what it believes the right value for the yuan.
But Suifenhe, as a place where the yuan and the ruble have already been traded freely by residents, travelers and businesses, has proven that the market itself can do a good job in finding the right point between two currencies.
For years, underground dealers in the city have brokered deals on their own. Their exchange rates could at times differ widely from official rates. But their rates appeared to reflect the market better, with official rates having taken gray-market rates as a reference over the years. Now the differences between market rates and official rates are small, which shows the power of the market.
On the demand side, the ruble has virtually become the second currency in the city, where one-tenth of the China-Russia trade is taking place.
So giving ruble legal status in the city is in line with what the market has been calling for. The government decided not to follow the old practice of simply cracking down on what it used to deem as underground transactions. It realized that legalizing this trade, instead of blocking it, is the way to go, which represents a remarkable change of thinking.
Second, allowing the ruble to be used in Suifenhe displays policymakers' confidence of the yuan's lure across the border.
A big reason that a country usually does not allow a foreign currency to be used in its territory stems from worries that it will threaten the status of the country's home currency.
But for Chinese policymakers, it is not a cause of concern.
As the yuan is appreciating and its value remains strong, the currency's demand in border trade is always big, often making it a preferred choice.
In an open and free foreign exchange market, a stronger currency will ultimately have a bigger share.
In the case of Suifenhe, the ruble is mostly used as a settlement for trade and sometimes as a payment unit for Russian travelers. As the ruble's value can fluctuate sharply and it is depreciating, Suifenhe residents would like to exchange rubles for yuan after they collect some of the currency, and Russian businesspeople are also willing to hold yuan.
So long as China's economic growth bolsters the yuan, its neighbors' currencies, even if they are given access to China, will be unable to challenge the renminbi.
By opening Suifenhe to the ruble, Chinese policymakers are casting a vote of confidence in the yuan, confident that its value can be maintained.
Third, the deregulation in Suifenhe could be copied in other border cities.
China may allow other currencies to legally enter its territory. Cities bordering Southeast Asia and Central Asia could be the next candidates.
The opening-up will certainly make trade easier.
But more importantly, the move can create a reference for Chinese authorities to better set the yuan's exchange rates, as a free market will provide the best reflection of demand and supply.
Last but not least, by allowing foreign currencies to be used in designated Chinese cities, China can have an upper hand in negotiating with neighbors on financial opening-up.
China's ambition to internationalize its currency is clear. But before the yuan becomes a global unit, it has to be a regional one. Therefore, boosting the use of the yuan in neighboring countries is an immediate task for China.
By accepting their currencies, the chances are enlarged for China to persuade neighbors to give a wide access for the yuan to enter their markets.
Austin wrote:So Russia ranks no 1 in Oil and Gas reserves , No-2 in Gold , No-3 in Coal .........what other key reserves it hold in huge numbers ?
Austin wrote:Hannibal Barca wrote:
This is nothing else than taking a million and divide it with the gdp per capita
A nice way to pretend that you worked to produce an article
Efficiency is indeed a problem but it is a completely different figure.
So how to read the real effeciency ? And how to improve labour productivity ?
MOSCOW, February 17, 7:42 /ITAR-TASS/. Iran is prepared soon to step up mutually beneficial and comprehensive economic cooperation with Russia which must have an advantage on the Iranian market, Mehdi Sanai, the Ambassador to Iran, told the newspaper Kommersant in an interview published on Monday.
"Negotiations are currently under way between our two countries on the conclusion of a Memorandum of Economic Cooperation. Such a document was already signed at the beginning of the 1990s. This time, this refers in point of fact to a renewal of it. We are holding talks on on a whole set of economic matters ranging from energy to banking. Accords have been already reached about the content and key parameters of such a memorandum. It remains to finalise details and technicalities which are being clarified," the Iranian Ambassador pointed out.
MOSCOW, February 14, (ITAR-TASS). About six trillion roubles, including investors' contributions, are to be assigned for the development of New (enlarged) Moscow territories in the coming 30 years, Marat Khusnullin, Moscow's Vice-Mayor for Urban Development Policy and Consstruction, told the newspaper Kommersant in an interview published on Friday.
"It is planned to build 100 million square metres of real estate in the New Moscow, and create one million jobs, with the population being 1.5 million-strong," Khusnullin said.
At the same time, the Vice-Mayor pointed out that "on a greater part of land in the New Moscow it is not planned to build anything". "The territory will remain a green zone," Khusnullin said.
ATHENS, February 12. /ITAR-TASS/. Greek state-owned gas company DEPA and Russian Gazprom have reached a preliminary agreement on a lower price of gas supplies, but the Greek company now wants a bigger discount, its official who represents the interests of Gazprom in Athens said on condition of anonymity on Wednesday, February 12.
TOKYO, February 13. /ITAR-TASS/. Japan is set to expand its companies’ presence in liquefied natural gas projects on Russia’s Far Eastern island of Sakhalin and Vladivostok, a city in the Primorsky Territory, and to provide financial assistance to these projects, Minister of Economy, Trade and Industry Toshimitsu Motegi told a meeting of the budget commission of the parliament’s lower house on Thursday
MOSCOW, February 07. /ITAR-TASS/. Kalashnikov Concern predicts an operating loss of 1.7 billion rubles ($49 million) as of the end of 2013, enterprise’s CEO Alexei Krivoruchko, said on Friday.
“It’s not a secret that Kalashnikov Concern is facing a crisis. The situation is very complex. We’ll work to reduce costs,” Krivoruchko said.
Russia's Deputy Economic Development Minister Andrei Klepach believes that the world's next economic recession might happen in 2018-2019.
“We should not forget that economic development is wave-like. It has to be taken into account, so the next major cyclic slump should be expected in 2018-2019 and around 2028, with a high degree of probability,” Klepach said at a session of the presidium of the Russian Academy of Sciences on Tuesday. “We have to be ready for it and keep it in mind that such a crisis always shows what the economy is worth.”
In his opinion, Russia should not hope for high economic growth rates in 2014 and 2015.
“Our objective is to expedite economic growth rates. As the situation develops, Russia will not have high economic growth in 2014-2015,” Klepach said. “The years 2016-2020 are actually the time when it will be possible to achieve considerable economic upturn, otherwise we'll be unable to resolve the task of restructuring our transport, health care and education.”
Russia can come out on top in the world in oil reserves in case of confirmation of the state balance of unconventional oil (Bazhenov Formation), told reporters, Minister of Natural Resources and Environment Sergey Donskoy.
Even on the basis only of stocks Bazhen 30-40 billion tons we can become leaders in the reserves," - he said.
Taking into account other unconventional oil reserves of their size can be even greater, added Don.
Don also said that in 2013, oil reserves in Russia by Category ABC1 increased by 688.34 million tons, gas - 1 trillion cubic meters.
As reported by ITAR-TASS, in 2013 in Russia was opened 23 oil, 2 oil and gas and one oil and gas field. On the continental shelf exploration work carried out on 22 sites, 7 sites work completed. It has been revealed 99 prospective sites.
According to CDU TEK, in 2013, oil production in Russia amounted to 523.275 million tons, gas - 668 billion cubic meters.
As reported by ITAR-TASS, 2015 Rosnedra begin work on the calculation of reserves of unconventional hydrocarbons. According to Natural Resources Minister Sergei Donskoi, stock assessment work will take a long time, considering geography studies, but this year will be prepared by the method of assessment of the resource base of unconventional sources.
The minister added that the inclusion of stocks must go through a public-private partnership, and without state aid this task can hardly be realized.
According to preliminary data, the cost of inventory valuation may be several billion rubles annually. In the current year for this purpose may be sent up to 1.5 billion rubles.
Don also said that in his opinion, and the opinion of the scientific community, it is advisable to create a center for the study of unconventional hydrocarbon based Rosgeologiya.
Besides, the minister said that Russia definitely needs the experience of foreign companies developing innovative technologies for hydrocarbon resources, but it must be adapted to the Russian geology, as these stocks in different regions of the world are located in different geological formations and structures.