Доклад по английскому языку на тему «Economic activity of the Saratov region»

The object of the research is public relations in the area of foreign economic activity of the region. The subject of the research is the positive and negative experience of foreign economic activity in the Saratov region, the mechanism of influence of authorities and management on the forms and types of foreign economic activity. The goal of the research work is to make proposals for improving the process of interaction of foreign trades in the conditions of Russia’s participation in the EU based on analyzing this process on the example of the Saratov region. To achieve this goal, the following objectives must be met: 1. To study the legal framework for regulating foreign economic activity in the Saratov region, which is assigned to the authorities and management in the region. 2. To analyze the practice of regulation of foreign economic activity. 3. To give a description of the current state and trends in the development of foreign economic activity in the region. 4. To conduct an analysis of existing foreign trade regulation mechanisms. 5. To make proposals for improving the forms of foreign economic activity in the region. The main principles and areas of division of competencies between the center and the subject of the Federation in the field of foreign economic activity management. The foreign economic activity (FEA) in structure of the Russian government is dealt with by the executive branch:  The Ministry of economic development  The Ministry of Finance  The Ministry of industry and trade  The Ministry of transport  The Ministry of agriculture  The Ministry for Far East development  Federal tax service  Federal customs service  Federal service for supervision of consumer rights protection and human welfare  Federal service for intellectual property  The Central Bank of the Russian Federation. The government of the Russian Federation regulates and controls, ensures the implementation of a unified foreign economic policy, and makes decisions on areas of state management of foreign economic activity. The competencies of the subjects of the Russian Federation are defined by the Federal law «On state regulation of foreign trade activities», agreements between the Russian Federation and its constituent republics, federal and constitutional laws. Regional participation is determined by the unity of the movement of trade (goods) and non-trade flows (services, information flows, intellectual property rights, technology), capital and labor resources. The regulating structural controls of foreign trade activities in the region are: 1. Legislative Assembly of the region (stating the direction of FEA region); 2. Administration (formation of strategy and tactics, motivation to attract foreign investment, as well as legal support); 3. Customs service (direct interaction with foreign trade participants on the movement of trade and non-trade flows); 4. Enterprises participating in foreign economic activity (exporters, importers, intermediaries); 5. Service and consulting organizations. The mechanisms of state management of foreign economic activity in the region include two main elements of international cooperation: legislative conditions and proactive measures. Socio-economic situation in the Saratov region Saratov region is a part of the Privolzhskiy Federal District. The region is located in the south-east of the East European plain, bordered in the south with Volgograd region, in the west — with Voronezh and Tambov regions, in the north — with Penza and Ulyanovsk regions, in the north-east — with the Samara region, in the south-east and the south borders with the Republic of Kazakhstan. The region has a favorable geographical position due to: — close location of the main sales markets (Central Russia, Republic of Kazakhstan); — location at the intersection of major transport corridors (the Euro-Asian North-South corridor and the Euro-Asian West-East corridor); — developed transport infrastructure, represented by an extensive network of railways, highways, pipelines, as well as inland waterways and air routes. — On the territory of the region, the largest river artery of the country — the Volga river — intersects with the railway that connects the center and south of the country with the Urals and Siberia. There are transport routes to the Republic of Kazakhstan and Central Asia. The region’s economy is highly diversified. A significant part of the added value is formed by the basic sectors of the regional economy — industry, agriculture and transport complex. Analysis of foreign economic development of the Saratov region in modern conditions and assessment of intensity factors Active foreign economic relations contribute to high-quality transformation of the region’s economy. Under the pressure of external competition, the structure is being restructured: uncompetitive enterprises are being displaced, new industries are being developed, existing production facilities are being modernized and re-equipped to adapt to external and internal changes. Mutually beneficial cooperation with foreign countries in the field of trade, credit, investment, give an impetus to the development of the economy. Foreign economic relations are the engine of trade and, consequently, the engine of economic development. The development of cross-border cooperation between regions affects the efficiency of economic development both in the region and in the country as a whole. The trade partners of the Saratov region are 108 countries, including mostly foreign countries. Their share in trade turnover was 81.2%, including 78.5% in exports, in import – 88.0%. Major trading partners: when exporting (total 89 countries): Germany (15.1%); Turkey (14.0%); Brazil (12.3%); United States (12.0%); Kazakhstan (8.0%); Poland (8.0%); Azerbaijan (4.1%); Hungary (3.2%); Latvia (2.5%); Belarus (2.1%); Uzbekistan (2.0%); Ukraine (1.9%); when importing (total 80 countries): China (15.5%); Indonesia (13.1%); Austria (11,4%); Germany (8.2%); Malaysia (7.3%); Kazakhstan (5.1%); Italy (5.0%); Belarus (4.7%); Hungary (3.7%); Brazil (3.3%); United States (2.8%); Serbia (2,3%); Ukraine (Up 1.7%); Turkey (1.4%). According to the results of 2018 and 2019, it is clear that the Saratov region is developing the volume of foreign economic trade with positive dynamics compared to the previous year. Since Russia’s accession to the WTO, the number of partners in the Saratov region has increased from 85 to 109, which indicates a positive dynamics of strengthening and expanding foreign economic ties. Analysis of the dynamics of exports and imports shows the increase in imports in 2019 compared to previous years 2015-2018. Export potential of the Saratov region The government of the Saratov region pays special attention to export-oriented category of small and medium-sized businesses. New participants are constantly involved in export activities, special attention is paid to establishing and expanding the range of business contacts with foreign partners, and business missions to foreign countries are organized. Despite the resource and raw material wealth of the Saratov region, as well as production and scientific and technical resources, the export potential is not fully realized. Most products are not very competitive in foreign markets, as the quality of products is inferior, there is no full-fledged after-sales service, and there are no international certificates. Machine building enterprises are at a low level and exports of production tend to decrease, since in this area, due to the high quality of foreign goods, the demand is higher for imports in this area. Problems of formation of the business climate in the region The sphere of small and medium-sized businesses is highly dependent on external circumstances: it is affected by a number of factors that limit its functioning. 1. High threshold for entering into business activity. 2. Lack of financial resources. 3. Administrative barriers. 4. High tax burden. 5. High corruption in the area of state orders. 6. Acute shortage of workers. Some of these problems are currently being addressed at the state level. Others can be resolved at the moment. The key problems (high taxes, administrative barriers, corruption) cannot be solved by short-term methods. As a result, a complete reorganization of the economic and political system is necessary: tightening control «from above», reallocation of budget items, political course change, personnel changes, and a number of others. Improving the forms and methods of organizational and economic support for foreign trade development The Russian economy needs to modernize, increase investment and business activity, and sustain economic growth. This requires a clear and balanced financial policy in terms of goals and resources. The ways to change the situation are also logical: on the one hand, the state should attract foreign capital to the Russian economy, and the other should create conditions for Russian capital to remain within the national economic system. At the same time, the most logical areas of action to reduce capital exports from the country should be: • creating conditions for the attractiveness of the Russian market for Russian owners of capital; • reduction of opportunities to use offshore zones as a practice of minimizing the tax burden of economic entities; • increasing the competitiveness of the national economic system so that the financial resources of national owners are invested in it with a rate of return not lower than when placed abroad; • using the practice of special economic zones to create conditions for attracting foreign capital, which can be considered as one of the ways to activate national investment activity. Legal regulation of foreign investment is and should be an element of the state system of investment attractiveness management, but not an isolated mechanism. For the Russian Federation, the most effective further directions of legal regulation of foreign investment (taking into account the shortcomings of the existing system identified above) should be considered: — solving the problem of duplication of state obligations on providing foreign investors with certain guarantees in various legal acts. — solving the problem of creating conflicts of legislation in the field of legal regulation of foreign investment in the Russian Federation — extensive classification work aimed at establishing a unified and effective terminology that regulates the issues of education, the origin of foreign investment, the practice of attracting them, etc. — expanding the scope of guarantees to foreign investors and bringing these guarantees into line with international practice — increasing transparency of procedures for foreign investors ‘ functioning in the Russian Federation. — priority directions of economic development of regions where international projects are being implemented (for example, in the sphere of special economic zones) are necessary to be developed and updated annually. Consistent implementation of these directions with mandatory positive changes in other factors of investment attractiveness of the Russian Federation can create conditions for increasing the inflow of foreign investment into the Russian economy, as well as for increasing their role in the national economy as a tool for socio-economic development. Recommendations: — conduct a full review and inventory of the legal framework. -development of infrastructure for providing services to investors -tax reforms aimed at taking into account the interests of business; -reducing corruption. -creating a single reliable information base for potential investors. — creation of a mechanism for exchanging experience in attracting foreign capital between the regions of the Russian Federation — improving infrastructure in the country’s regions. Conclusion Foreign economic activity should be used to achieve the main goal-to ensure long-term, sustainable economic development of both the region and the country that these regions are part of. In Russia, to solve the existing problems in the area of interaction between customs and business, it is necessary to successfully use the positive experience of the United States and Great Britain, the level of interaction between customs authorities and foreign trade participants in which is characterized by high indicators. Characteristic features of Russia’s participation in the global capital market remain the problem of capital outflow in the form of investments in the direction of international offshore centers, as well as an unbalanced industry structure of investment. Priority tasks for export development include trade facilitation, removal of technical barriers, and participation in international recognition systems (systems for recognizing product test results).