Сборник статей ежегодной международной студенческой научно-практической конференции isbn 978-5-7890-0605-4 Ростов-на-Дону

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The problems of post-crisis modernization of russian economy.
What does the conservative modernization mean from the modern political-economic position?
The challenge of modernization in Russia
The Economist
The competitive edge of lean manufacturing
Improve quality
Reduce time
Supply Chain
The advantages of Lean Manufacturing

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Literature

Financial Stability Forum, Report of the Working Group on Offshore Centres, April 2010
Harmful Tax Practices, OECD, 4 July 2008
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Financial Stability Forum's Working Group on Offshore Financial Centers Report (April 2000).

Овчинникова Ксения Юрьевна

Don State Technical University

THE PROBLEMS OF POST-CRISIS MODERNIZATION OF RUSSIAN ECONOMY.

IS IT POSSIBLE TO COMBINE CONSERVATISM AND MODERNIZATION?

This article examines the connection of conservatism and modernization in Russia and other countries. A brief analysis of the history of conservatism is carried out. It is argued that the precise nature of modernization has differed in various periods. One of the objectives of the article is to determine the meaning of conservative modernization from the modern political-economic position. The opinions of various political and scientific figures regarding the possibility of Russia's modernization while preserving the traditions are presented in this research. The paper then reviews the challenge of modernization in Russia.

Key words: conservatism, modernization, "mass society", nation, ideology, reforms, political-economic position, post-industrial economy, global economic crisis, ideological extremism.

A thriving knowledge society must be cosmopolitan and open; it must reward talent and creativity; it must invest in people and education. The radical innovation and knowledge creation that underpins modern economic growth thrives in cultures that are democratic and dissenting; that are open to new ideas from unusual sources; in which authority and elites are constantly questioned and challenged. (Charles Webster Leadbeater).

Leadbeater epitomises the construction of a new economy predicated on the development of human and social capital in which creativity and talent is rewarded. Education and lifelong learning is to play a key role in these processes. The references to democracy and dissent articulate with concerns about social justice and inclusion. Underlying these ideas is the suggestion that we are living through a moment of economic transformation in which old assumption and relations are brought into question and are seen as no longer appropriate. Economic and social relations are being transformed and have to be re-thought to bring them into line with the ‘new’ reality. In this way must be found such conditions that will allow conservatism and modernization coexist in the modern world.

If there has been a specter haunting conservatism in modern times, it is the specter of "mass society." The fear of mass society is a product of two related possibilities. The first is the disintegration of traditional allegiances in the name of liberation and personal freedom. Since conservatives hold that such allegiances are the condition of identity, the consequence would be the loss of individuality. Liberalism, ironically, promotes the death of liberty. The second fear concerns the manipulation of that disintegration by ideologies that promise material satisfaction in return for absolute political power. Having destroyed individuality, mass society would demand abasement before the secular image of its collective power, the state. Socialism, ironically, promotes the death of the social.

In the nineteenth century and for much of the twentieth century, conservatism defended property, religion, and family as bulwarks against the feared drift to "mass" society in which the decencies of civilized life would be subverted by popular barbarism. This disposition helps to capture what is distinctive about the conservative idea of the nation, the one form of popular politics to which it not only adapted but which it also helped to define. For conservatives, the nation is understood as a political community united in acceptance of the legitimacy of traditional political arrangements. The "people" is not some abstract category but the historic nation in its regional and social variety, with its traditional beliefs, particular affections, and long-standing prejudices. To be conservative is another way of professing one's sympathy for the "real" character of the nation.

Conservatism has been compelled to identify exactly what it is that makes the nation distinctive. In conservative thought, the idea of the nation serves to foster piety toward its distinctive social and political institutions. This differentiation has nothing to do with the intensity of national feeling. It has to do with the source of national feeling. Conservatism locates it in the inherited practices of a way of life and has been concerned to limit the popular will in the name of tradition and order. In Europe between the two world wars, conservatism was outflanked by radical right-wing movements because an appeal to tradition and order appeared irrelevant in conditions of economic collapse and social disintegration. The sense of political decadence made an ideology of popular salvation, like fascism, a powerful alternative to traditional conservative patriotism. Britain was the exception, and the experience of British conservatism was thought to illustrate the modernization and conservatism.

So the conservatism has a long tradition, but the content of this term is understood in different ways in different countries. As noted earlier, conservatism in the United States is a concept which has evolved over the history of the country, encompassing somewhat different political stances in various eras. In England, the founders of the conservative ideology were A. Johnson and E. Burke, who advocated the strengthening of individual freedoms and parliamentary control over state spending while reducing taxes and guarantees a minimum wage. In their view the revolution creates confusion, which eliminates the old institutions, not creating the effective replacement for them.

The "Iron Lady"(Margaret Thatcher) reforms continued the conservative tradition. At this time, despite the strike, the unprofitable coal mines were closed, British Telecom and British Petroleum were privatized, and other companies, whose controlling stake was owned by the state, no longer received subsidies, competing with private traders on equal terms. Free entry and exit on the London Stock Exchange of listed companies has been attained. As a result the London Stock Exchange has taken a leading position in the world.

French conservatives, who opposed the social reforms and who advocated the preservation of the monarchy and class privileges, gained notoriety. But this can be considered as an exception. By contrast, modern European conservatives, advocating a strong state, strengthening the family, marriage and religion, freedom of enterprise and privatization, tax cuts, do not opposed to regulation of the market and solid social guarantees. Evolution, in their view, combines two principles - guarding (protecting national economies from adverse external influences) and the change (making possible by the active promotion of innovation). In this case, diversity is not without selection and without selection is not evolution.

The last elections in France, Germany, Britain, Italy, Spain, Portugal, the Netherlands showed that Europeans favor a policy of increasing the public innovation, economic and social costs, the fight against offshore tax havens, the preservation of the European civilization Christian roots . The "left" hasn’t got a new political and economic theory to explain the achievements and threats of globalization; there is no theorists such as Karl Marx.

In Russia, with its tradition of rebellion, the word "conservatism" sounded more like a curse, though Pobedonostsev, who was called a reactionary by Marxists, was the author of the best in Europe Civil Code. Vyazemsky considered Pushkin as a liberal-conservative. The motto of the conservative wing of Stolypin was: "We do not need great upheavals, we need the great Russia. » In an article published in the «Financial Times» (2003) Medvedev said that the "social conservatism" has won in Russia.

A fundamental study of conservative socio-economic studies was carried out under supervision of Solonin. Achkasov, Gryzlov, Ryazanov, Rybakova, Raskova, Rumyantsev and others have shown the role of conservatism in the development of Russian economic thought, in the projects of Russia's modernization and in economic reforms.

What does the conservative modernization mean from the modern political-economic position?

Firstly, above all, it means a qualitative leap, a break, a phase transition in evolution. It is a technological breakthrough in the areas where Russia is on the same stage with the most developed countries and where it can overcome the lag in a relatively short period of time.

These are space technology, nuclear energy, a number of health, information and other technologies. Technological breakthrough must be accompanied by transformation of the government, business and society institutions. The theory of evolutional modernization that was established in the middle of last century by Rostow, and Parsons includes the concept of market planning, created by Russian economists Leontiev, Novozhilov, Fedorenko.

This concept allows to resolve conflicts that are inevitable during the development and complication of economic system, without a revolutionary change in social system, through reform of governance, support for innovators and the middle class, sustainable economic growth.

Secondly, conservative modernization is nonviolent. The initiative of breakthrough comes from the government and it is usually associated with losing a war (reforms after the Crimean War in Russia, after World War II in Germany and Japan) or the threat of independence loss and economic collapse (the Meiji reforms in Japan, Ataturk in Turkey). However, the success of modernization is required to convince its need and to bring to its implementation not only a narrow layer of the elite, but the whole nation. In this case, non-revolutionary modernization is organic and it leads to changing of the institutions and mentality of the nation. Otherwise, it comes down to copying someone else's experience and becomes a permanent catch-up.

Forcible modernization achieved their goals during the reign of Peter I and Stalin. In the first case, Russia has evolved from a regional into a world power, in the second case in 1943 the Soviet industry, despite the loss of the most developed western regions, has overtaken Germany, producing tanks, airplanes and other kinds of military equipment. However, the social implications of such upgrades (worsening demographics, undermining the personal initiative and interest) have been tragic.

In the post-industrial economy forced modernization is not only harmful, but not impossible. In Russia today there is no massive reserves of the workforce, and people have changed. The experience of "perestroika" made them more rational and informed, they understood their own interests and did not tend to take for granted loud slogans promising "shining heights" to distant future generations.
Thirdly, conservative modernization means the use of the best things, learned by previous generations. By taking advantage of the education system and focus on major areas of science, Russia became the world leader in bridge construction (the names of Melnikov and Timoshenko are famous in the whole world), discoveries in radio and TV technique ( Popov, Zworykin), helicopter (Kamov), turbo and boiler making. Our country had the first nuclear power station, the first satellite was launched, the first supersonic jet and civilian aircraft were built. Revival, preservation and augmentation of the best of what has been achieved in pre-revolutionary Russia, Soviet years, and even in the "dashing" 90 years means rejection of both the extreme left and extreme right radicalism and extremism.

Russian conservatism means respect for the culture, preserving the traditions of the Russian Eurasian civilization, opposition politicians to destabilize the country in order to learn other political and economic models. In the world, according to leading social philosophers, there are only ten distinct civilizations now. Successful modernization used their features as an important competitive advantage, combining a conservative attitude towards culture with revolutionary solutions in the policy, the preservation of its civilizational identity with a decisive change in the situation in the economy and social relations.

Gandhi warned that the development of the consumption cult standards adopted in the U.S. would be a catastrophe for the populous India. Roosevelt’s "New Deal" helped to avoid breaking up the market system and the social revolution, by relying on the development of the business initiatives inherent to the Americans and limitation of the power of monopolies. The current U.S. President, Barack Obama, supports science, education, high technology, small business, using methods typical for American civilization, and at the same time he strengthens control over financial markets, offshore accounts and bonus figures on Wall Street.

Adenauer based on the ideas of organization and discipline that were organic to the German. It was the time when the war-torn Germany has again become a modern developed country. "Asian tigers» have created "economic miracle", using their traditions of economic consumption and intensive work combined with strict adherence to requirements of government. The Chinese economic model is not feasible in Russia, because of other structures of the economic system (most Chinese live in rural areas and do not receive pensions and various allowances), the mentality of the population and decision-making system. In 2010 75% of the Russian budget is spent on social needs rather than on infrastructure development. But there is no variants now.

The conservative position should be based on such values of Russian civilization as teamwork, commitment to social justice, ingenuity, ability to manage in difficult circumstances, understanding the special role of the government in the vast territory of the country with long borders, with multinational and multi-religious population, and tolerance to other nations and religions that are indigenous Russia.

Kirill, patriarch of Russian Orthodox Church, (Expert, 2010, 4) rightly spoke against making distinctive cultural communities in an amorphous mass, which forgets its roots and which is guided in his life by universal spiritless principles. In his opinion, Russia is an organic part of European civilization, while at the same time, religious and cultural differences between eastern and western parts of that civilization compose the objective reality that generates the colorful cultural palette. As Berdyaev noted in his "Russian Idea": "Russian nation is not a purely European and not purely Asian people." In the heart of the Russian people have always fought two principles - the east and west. It should be noted that now Europe faces a serious challenge to lose its own civilization and cultural identity. By the twenty-first century here appears disappointment in the old ideology. As the patriarch says, modern man more follows his personal interest and pleasure than any principles. in the spiritual vacuum of general relativity. This is reminiscent of the era of disintegration of the Roman Empire with its loss of moral compass

Russian conservatism means a rejection of the infinite consumption growth dogma, which is imposed by advertising and mass culture and which is dominant in the Euro-Atlantic civilization. Unfortunately, many Russian politicians do not understand the true meaning of political economy conservatism, contrasting conservatism and modernization. Urgens, CEO of the Institute of Contemporary Development, in one of his speeches says that conservative modernization is "an oxymoron” and he does not believe that a conservative modernization is possible in those conditions, in which Russia are placed now.

Several authors have denied even the possibility of modernizing Russia. Afanasyev, known in 1980-1990es. politician believes that Russia has missed all of the historical chances of modernization. But even these scholars recognize that "Russia does not sink into the ground, and therefore the question of its modernization, with all the historical and political circumstances, remains on the agenda". Unfortunately, in this opinion he is not alone. Inozemtsev and other economists believe that Russian society is not able to upgrade, because "we are too rich and proud to go to the students" (Gazette, 24 February 2010). In our opinion, such conclusions have no basis: the conservative and modernizing Russia's potential is enormous.

At the same time in today Russia it can not be forced modernization, though, because at the beginning of XX century more than three-quarters of population was younger than 35 years, and by 2010 the proportion of young people has become less than 40%. The key to the success of the current modernization is people savings and human capital development, drawing on the best in the national culture.

The Address to the Federal Assembly of Russian Federation President includes a program for Russia's transition to a higher stage of civilization by nonviolent methods, the program of overcoming the economic backwardness (export of raw materials in exchange for finished goods), the state machine of totalitarianism, corruption, lack of initiative and paternalistic attitudes in society, shamefully low efficiency and productivity.

Such civilizational leap was prepared by achievements of 1999 -2008 years, when World Bank estimates that Russia's GDP is more than doubled, and the average salary in dollars quintupled. The country got rid of the huge public debt and alienated from the power of the oligarchs, has overcome a threat of separatism and disintegration of Russia. But 20 years of market reforms, as Medvedev noted, did not save Russia from dependence on raw materials, the Russian economy, as well as Soviet, largely ignores the needs of man. Political Economy aims to justify the ways of Russian reviving as a world power on a new basis, based on the “knowledgeable economy”, values and institutions of democracy.

This suggests extensive public debate, qualitative changes in the economy and social relations. These include the transformation in the legal system which began in 2010. Converted inherited from the Soviet era prisons, where people firstly broken the law for unimportant, including economic crimes, not violent are kept together with recidivists. In case if the fine is not possible the new law is proposed to use such punishment as collecting arrears, house arrest, forced labor and so on. From 2012 new institutions in the appellate courts will be created.

Many researchers suggest a rational set of economic policy measures, corresponding to a real level of national economy, its institutions, rather than a new radical shock therapy. They proceed from the necessity to take into account the previous history of the country. Measures that have been proven in the ethnically homogeneous Poland or China, with its unique system of administrative and ideological influence on the masses of the people, would have devastating consequences in Russia. Conservative political economy should suggest ways of creating competitive markets that do not undermine the government's position as an organizer and strategist of modernization. It makes possible to overcome failures of both market and state mechanisms. Nature of Russian modernization is determined by historical patterns, rather than the confluence of fortuitous circumstances.

The challenge of modernization in Russia

Prompted by the shock of the global economic crisis, a second narrative – that of ‘modernization’ - is firmly taking root in Russia’s external relations. Political economists have argued that ‘many in Russia thought that they were decoupled form what happened in the leading industrial economies… some observers have argued that Russia’s crisis is home - grown. It is not. Russia’s structures and policies have determined how the shock played out in Russia, but the shock itself was external’. While the shock may have been exogenous in origin, the fact that Russia’s economic performance over 2009 was the worst among the G20 economies forced the recognition at the elite level of the need for serious economic reform – or modernization – to ensure that Russia would not be so vulnerable to external developments in the future. The pre-crisis economic growth model that generated a fast rate of growth between 1999 and 2007 is now considered insufficient to secure similar rates of growth in the future. Institutional frailties, a low rate of private investment, a dependence on natural resource revenues, a poorly functioning financial sector and an increasingly negative demographic profile all look likely to hamper economic development in Russia in the years to come unless fundamental changes occur in the prevailing political economy of the country.

The effects of the economic crisis have fundamental implications for Russia’s relations with the EU. In a series of articles, notably in The Economist, Medvedev committed Russia to sustainable growth, to diversification and innovation in a more balanced economy, to greater participation in the global trade system – including through accession to the WTO – and to a broader contemporary conception of security inspired by a ‘reassessment of values’. A powerful catalyst for change was the world financial and economic crisis…

Conclusion

In a century of ideological extremism like the twentieth century, conservatism often appeared something of an affectation and marginal to the march of history in which the advancing forces of modernization were thought certain to rout the retreating forces of conservatism. Insofar as many people have lost faith in the "grand narratives" of the nineteenth and twentieth centuries, like Marxism and other emancipatory ideals, then the conservative disposition may no longer appear so reactionary. Since conservatism never subscribed to the grosser forms of the modernist faith, contemporary skepticism comes as no surprise to it. However, as befits a philosophy of modesty and imperfection, conservatism cannot assume a final victory.

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Олейник Дарья

Don State Technical University, Russia

THE COMPETITIVE EDGE OF LEAN MANUFACTURING

The article is focused on the advantages of Lean Manufacturing, its goals, basic principles and the main ways of production optimization.

Key words: lean manufacturing, organizational structure, to eliminate waste, transportation

Nowadays more and more organizations are realizing the importance of quality and customer satisfaction in order to sustain a competitive business. There is also a pressure to reduce manufacturing, operating and inventory costs and increase efficiencies not only in manufacturing but in different types of industries, such as banking, business and community services. The challenge today is to adapt these concepts and technologies to this wide range of industries successfully. The key to success in implementing lean manufacturing principles in any organization is to foster a culture of continuous improvement within its company culture, quality focus, lean thinking, and customer satisfaction as the organization's ultimate goal. This shift in culture, if not already present, must come from top management and be embraced by all layers of the organization. I want to start with the quotation of one of the famous economist Rizzardo: “The Value adding activities are simply only those things the customer is willing to pay for, everything else is waste, and should be eliminated, simplified, reduced, or integrated”[ ссылка скрыта]

What is Lean Manufacturing? We use this term to describe a manufacturing, industrial or service operation which operates with little or no type of waste, thus making the operation very efficient and only consisting of value adding steps from start to finish. Therefore the non value adding "steps" that reducing costs for the manufacturer.

The goals of Lean manufacturing systems differ on the point of view of different authors. While some maintain an internal focus, for example, to increase profit for the organization, others claim that improvements should be done for the sake of the customer. Some goals are:

Improve quality: To stay competitive in today’s marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements.

Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service.

Reduce time: Reducing time takes to finish an activity from start to finish. It is one of the most effective ways to eliminate waste and lower costs.

Reduce total costs: To minimize cost, a company must produce products only for the customers’ needs.

Quality Management

In addition to eliminating waste, lean manufacturing seeks to provide optimum quality by building in a method whereby each part is examined immediately after manufacture, and if there is a defect, the production line stops so that the problem can be detected at the earliest possible time.

Employee

One big advantage for the workers in a lean manufacturing system is that they are the major part of the company’s decision making process. Lean manufacturing plants have a more organic organizational structure. Each worker is a leader in their own area of expertise and you don’t see a big hierarchical structure. This allows each employee, no matter what their role in the company, to feel like a vital piece of the whole.

Supply Chain

A supply chain is defined as the set of processes and resources that produces and delivers finished goods from raw materials and capital resources. Lean manufacturing principals may be used to improve and optimize supply chain performance in many ar

In a lean manufacturing system, suppliers deliver small lots on a daily basis, and machines are not necessarily run at full capacity. One of the primary focuses of lean manufacturing is to eliminate waste. In this respect, large inventories are seen as a type of waste that has a high cost.

There are seven wastes that LM aims principally to reduce or alleviate.

Firstly, LM aims to scrap over production among companies. Over production leads to lowering prices of products and merchandise that would eventually lead to a company loss.

Secondly, LM aims to reduce and cut over processing inside all companies. Over processing makes expenses higher and profits less. Time is also wasted by that.

Thirdly, LM maximizes transportation by automotive and cars.

Fourthly, LM makes motion productive. By setting aside big equipment in the work place, laborers are able to move freely, enabling them to eventually speed up and do more production.

Fifthly, LM prevents piling up of inventories. All inventories should be kept controlled because prices of the goods are affected by piled up inventories.

Lastly, LM helps companies avoid the production of goods with scraps and defects.

There are more and more companies around the world that successfully implement LM techniques and principles in their daily operation. It should be noted that companies that use LM with success are profitable and strong (Honda, Toyota Motor Corp, Johnson & Johnson, Nike, Panasonic etc.)

The advantages of Lean Manufacturing

Lean manufacturing strategies can save millions of dollars and produce excellent results. Advantages include lower lead times, reduced set-up times, lower equipment expense, and of course, increased profits. It gives the manufacturer a competitive edge by reducing costs and increasing quality, and by allowing the manufacturer to be more responsive to customer demands.

So, the implementation of lean manufacturing into any operation or business can deliver great results in efficiency, team morale and culture, and a healthier bottom line. The main goals of this system are to improve quality, eliminate waste, reduce time, and total costs that allow to increase profits for the manufacturers. For these, the companies introduce automation into the process, produce and deliver on time and in full all customer orders only after these orders are placed on demand by the customer instead of producing/purchasing parts and finish goods to stock, foster a culture of continuous improvement, provide optimum quality, and suppliers deliver small lots on daily basis. Lean manufacturing scrap over production among companies, reduce and cut over processing inside all companies, maximize transportation, make motion productive, prevent piling up of inventories, help make companies alleviate and prevent waiting time, and helps companies avoid the production of goods with scraps and defects. The usage of lean principles leads to the benefits of company’s decision making process, opportunity to make suggestions and take actions, to feel like a vital piece of the whole production process.

Lean manufacturing strategies can save millions of dollars and produce excellent results. Advantages include lower lead times, reduced set-up times, lower equipment expenses, and of course, increased profits. It gives a manufacturer the competitive edge by reducing costs and increasing quality, and company’s social corporative responsibility.

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Вумек Джеймс П., Джонс Даниел Т. Бережливое производство. Как избавиться от потерь и добиться процветания вашей компании. -М.,: Альпина Бизнес Букс, 2008.
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Голоктеев К., Матвеев И. Управление производством: инструменты, которые работают., — Санкт-Петербург: Питер, 2008.
Тайити Оно. Производственная система Тойоты: уходя от массового производства. — М: Издательство ИКСИ, 2008 г.

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