BRICS Journal of Economics No.2 (2020)

In search of the contours of the post-COVID Sustainable Development Goals: The case of BRICS

Sergey Bobylev, Leonid Grigoryev

The global COVID-19 pandemic and an unexpected recession of a dangerous magnitude have provided strong reasons to look at the Sustainable Development Goals (SDGs) from three points of view: the SDGs as a victim of the recession 2020; the SDGs as an opportunity for better coordination on the way out of recession; and the SDGs as an object of modernization for better adaptation to the realities on “the global ground”. The BRICS countries are, naturally, the primary group of interest for developing and implementing the SDGs on the global scale as a way of catching up. “Pandemic protocol” and additional indicators are proposed as an urgent update to several SDGs.

Read more

Contemporary global economic crisis: Some conclusions for Russia and BRICS (taking into account Kondratieff long waves)

Viktor Tatuzov

The article is devoted to the origins of contemporary economic crises (2008–2020). The author suggests a relatively novel approach to the study and forecasting of the economic life of the BRICS countries and other regions within the framework of the modern Kondratieff long waves hypothesis.

The author recalls that in the mid-twenties, after analyzing the results of a sufficiently deep crisis in 1920–1921, Kondratieff drew a conclusion that even more destructive perturbations in the world economy were approaching (having thus predicted the Great Depression of 1930s). In particular, Kondratieff wrote about the downswing phase of a long wave – a long turbulent period of economic instability (a period of deep economic crises).

According to some Russian economists, today’s preservation of the downswing phase was correctly predicted in the framework of modern modifications of Kondratieff’s theory. Based on the hypothesis of long waves, the author predicted the global economic crisis of 2008–2010 in2006, and in the summer of 2014, he predicted many turbulent years for Russia (in particular, economic crises). The author warned of a possible aggravation of the global situation in early 2019, and such aggravation happened in 2020.

Taking into account Kondratieff long waves, some new risks for the BRICS countries are analyzed in this article. In particular, the author argues that by the end of 2020, Russia’s real GDP may considerably shrink. In 2020, Russia seems to be able to take into account and use the previous experience of other BRICS countries which largely succeeded in mitigating external shocks in 2009 (for example, the experience of China and India).

Read more

Towards a new ecological and human type of national accounting for developing economies (the CARE/TDL model)

Jacques Richard

The goal of this article is to propose a radical reform of the today’s financial accounting system of businesses accompanied by a corresponding reform of the system of national accounts. It transforms them into genuine ecological and human systems of accounts that can systematically conserve the three main types of capitals which are necessary for the functioning of any economic system. This is a radical means of overcoming the dramatic ecological and human crisis in which the humanity is buried today. This can be done by applying traditional weapons of capital conservation, invented at the end of the Middle Ages by big capitalists for the protection of their financial investments, to human and natural capital. We notably use the famous double entry accounting depicted by Werner Sombart and Max Weber like certain martial arts use the force of the adversary against him. As a result, we come to a complete redefinition of the main concepts of the economics, especially the concepts of capital, profit and market, and to the possibility of a new type of firm management that allows us to get out of the capitalist system.

Read more

Chinese experience in implementing renewable energy sources as a possible scenario for the Krasnoyarsk Territory

Sergey Nikonorov, Konstantin Papenov, Denis Sergeyev

Renewable energy is a rapidly developing area of the modern economy. As many experts forecast, global electricity consumption will double by 2050, while the share of renewable sources in energy generation will be 50%. For most states, the main incentives for the development of renewable energy are the ability to eliminate the consumption of fossil fuels and reduce the level of emissions of pollutants, while ensuring sustainable development of the country. At the same time, Russia, which has significant reserves of natural resources, is in no hurry to switch to the use of energy from renewable sources since it is believed that the country’s subsoil can provide it with cheap energy resources for many generations to come. Therefore, introduction of renewable energy sources that are unable to compete with traditional energy without a developed energy infrastructure and established production is impractical. In our study we try to evaluate the efficiency of the introduction of renewable energy sources in the Krasnoyarsk Territory of Russia using the example of the Chinese experience.

Read more

Migration policy towards skilled labor in the Russian Federation

Olga Chudinovskikh, Oxana Kharaeva

The article analyzes the policy of the Russian Federation towards skilled foreign labor in retrospect — from the moment of the collapse of the USSR to the present day. It is shown that throughout the recent history of law-making and in practice, labor migrants have been considered mainly as a temporary phenomenon despite the country’s need for qualified personnel who could become a part of its resident population. The article attempts to systematize existing channels of skilled migration and provides main principles of their operation. It is shown that, with the exception of a program aimed at the so-called highly skilled specialists (HSS), other forms of attracting foreign workers do not offer a package of conditions that can interest potential migrants in moving to Russia. The system of attracting HSS has not yet shown its effectiveness and is mainly used for simplified temporary access to the Russian labor market. The State Program of assistance to the resettlement of compatriots, formally intended for migrants with ethnic and cultural affinity to the population of Russia, actually uses the principles of selection of skilled labor migrants. Only at the end of 2019, steps were taken that made it easier for graduates of Russian universities and technical schools, as well as specialists with professions in demand, to obtain a residence permit. However, these steps look half-hearted. Comparing the Russian experience with the practice of some foreign countries gives grounds for thinking about what tools and approaches can improve the effectiveness of the Russian policy towards qualified migrants and arouse their interest in moving to our country for permanent residence.

Read more