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Factory ekonomicheskogo rosta, seria Nauchnye trudy, No 70, IET, Moscow, Table Decomposition of Added Value Growth in the Industry Sector in 2007-Electricity, gas Minerals ex- Procession and water proIndustrial productiontraction industries duction and distribution 2007 2008 2007 2008 2007 2008 2007 GAV -2.60 0.20 7.80 0.90 -0.70 1.20 3.63 0.Factors input 10.13 4.98 6.02 2.44 0.11 -0.14 6.00 (6.73) 2.56 (3.01) Labor29 0.07 0.24 0.30 -0.53 -0.69 -1.30 0.16 (0.12) -0.44 (-0.36) Number of employed -0.08 0.11 0.07 -0.51 -0.57 -1.71 -0.01 (-0.04) -0.47 (-0.42) Hours of work per one employee 0.14 0.13 0.23 -0.02 -0.12 0.41 0.17 (0.17) 0.03 (0.07) Capital 10.07 4.74 5.73 2.97 0.80 1.16 5.85 (6.61) 3.00 (3.36) Volume of fixed assets30 5.39 4.74 3.21 2.97 0.80 1.16 3.10 (3.66) 3.00 (3.36) Extent of facilities utilization 4.68 - 2.51 - 0.00 - 2.74 (2.95) - TEF31 -12.73 -4.78 1.78 -1.54 -0.81 1.34 -2.37 (-3.10) -1.86 (-2.30) In 2080 the main reason for small figures of the added value growth rates in this kind of economic activities was the reduction in the total factors efficiency. It should be noted that among the branches of industry only extractive industry has steadily demonstrated negative growth rates of the TFE in recent years. The dynamics of the TFE of the extractive sector is also more dependent on the price situation at the world markets of raw materials as compared with other kinds of industrial production.

But even taking into account the changes in price situation at the world markets of raw materials whose input is defined on the basis of the prices for oil average over the period, the technological component of the TFE32 at the extractive enterprises remains low. This testifies steady reduction in the efficiency of the extractive industries functioning, because of, in the first place, the worsening of the quality of the industrys raw material base and the problems associated with the development of new oil fields.

As a result of 2008 it is the electricity, gas and water production and distribution that demonstrates the highest GAV growth rates being equal to 1.2%. The structure of the growth of this kind of economic activity is characterized by the increase in the capital input against the background of the decrease in the labor input, thus the total input of the main factors in the GAV growth rates at the enterprises for the production and distribution of the electricity, gas and water is becoming negative. The decrease in the labor input is accounted for by the decrease in the number of the employed in this sector against the slight increase of the hours worked by them, the said increase being insufficient to make the labor input positive. It should be noted that the electricity, gas and water production and distribution is the only industrial sector demonstrating the growth of the TFE as a result of the year, Preliminary estimation Estimations for the industrial production are based on the aggregation of the initial calculated indices by kinds of economic activities (the results of decompositions obtained by the consolidation of the estimations by kinds of economic activities).

Preliminary estimation of the growth rates for the number of the employed is based on the data of the filled job vacancies in January-November 2008 on the supposition of the ratio of the employed by kinds of economic activities to the number of the vacant positions filled being constant. The preliminary estimation of the growth rates of the hours of work per one employee a year in the industry sector is estimated on the basis of the data for 9 months of 2008.

Preliminary estimation of the growth of the physical volume of fixed assets in 2008 is based on the supposition that the coefficient of the fixed assets retirement and the share of the investments direct for their renewal being constant.

The estimation of the TFE in extractive and processing sectors in 2008 is biased because of the lack of the data necessary to calculate the changes in the extent of the facilities utilization by the enterprises of these kinds of economic activities The term technological is referred to the final residue obtained on the exclusion of the component that is accounted for by the dynamics of the world prices for oil from the estimations of the efficiency increase in the added value growth rates being totally defined by the increase in the efficiency growth rates.

Industrial production 2008 Electricity, gas and water production and distribution Processing industries Minerals extraction -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 TFE Facilities load Fixed assets Hours of work Employment Fig. 1 Structure of Gross Added Value Growth in industrial Production in 2007Aggregation of the data by the kinds of the economic activities testifies the fact that on the whole growth rates of the added value of the industrial production in 2008 have reduced by 2.9 per cent, making 0.7%, as compared with 3.6% in 2007. This reduction is fully defined by the decrease in the growth rates of the input of the main factors against the background of the TFE reduction. In input in the output growth rates of the industrial production that is accounted for by the changes in the reserves of the capital has changed little, while the input accounted for by the changes in the labor input became negative. According to the preliminary estimations in 2008, the same as in the previous years, TFE of the industrial production demonstrates negative growth rates, which defines the negative contribution of this factor in the added value growth rates. Allocating the figure characterizing the redistribution of the added value, labor and capital costs by kinds of the economic activities from TEF33, one can demonstrate the increase in the negative input of the efficiency in GAV growth rates.

At the same time the diminution of the differences if TFE estimations, obtained by the aggregated data and by sectors, indicates the decrease in the intensity of the process of the resources redistribution among the industrial kinds of the economic activity in 2008 as compared with the previous period.

Thus, analyzing the structure of the economic growth in the industrial sector in 2008, it should be noted that for all kinds of the economic activities the input of the main factors is decreasing whole the positive growth rates for capital stock are being sustained. In case of the processing industries and the industries on electricity, gas and water production and distribution such a situation is predetermined by the considerable decrease in labor input, the fact, which reflects the negative trends at the labor market caused by the spread of the crisis phenomena.

In 2004-2007 total factor efficiency (TEF) for all kinds of economic activities demonstrated a considerable slow-down in the growth rates. According to the preliminary estimations in 2008 (there being no data on the figure of the intensity of the existing facilities utilization) the structure of TFE growth rates in the industrial sector is uneven. At the enterprises for the extraction of the minerals and in the processing sector the TFE is reducing: however whereas in the extractive sector there is a slowdown in the rates of the efficiency decrease observed, at the processing industrys enterprises it is the growth observed in the previous years that was succeeded by the drop in the efficiency. The efficiency of the electricity, gas and water production and distribution enterprises is, in contrast, increasing.

Moreover, it is the TFE that is the dominating component defining the changes in the output growth Input of the output redistribution, capital and labor input is defined as a difference between the estimations of the aggregated TFE growth rates and the weighted total of the TFE growth rates by kinds of economic activities rates in 2008 as compared with 2007 in the field of minerals extraction and electricity, gas and water production and distribution.

Fulfillment of National Project Health in S. Shishkin Over the past year the volume and the structure of the expenditures for the fulfillment of the National Project Health have changed. The priorities have obviously been shifting towards the ambulatory health care at the expense of the reduction in financing of the primary health care development. The project is still of cost-based nature, and it should be noted that is quite difficult to measure the effect of the expenses made on the health of the population.

On February 25, 2009 the results of the fulfillment of the project Health in 2008 were considered at the meeting of the Presidium of the Government of the Russian Federation devoted to the fulfillment of the priority national projects and demographic policy, it was stated that the project will be prolonged up to 2012.

Initially the project was intended to run for two years (2006-2007) and was of distinctly pre-election nature. After the presidential elections in 2008 the mass media coverage of it declined sharply. The volume of financing from the federal budget has reduced from RUR 116.0 billion in 2007 to RUR 100.2 billion in 2008. Taking into account the expenses from the CHI Federal Fund and Social Insurance Fund the total expenses for the project made RUR 118.8 billion in 2008 as compared with RUR 139.5 billion in 2007.

Table Expenditures on Implementation of Priority National Project in Health Care, as RUR billion Direction of the national project, types of expenditures and sources of funding 2006 2007 Federal budget Priority area Development of primary health care Training and retraining of general practitioners, microdistrict therapist and microdistrict 0,15 0,3 0,pediatricians Additional payments to general practitioners, microdistrict therapist and microdistrict 14,6 21,9 19,pediatricians and their assistant nurses Additional payments to medical staff of first-aid and tocological stations (FATS), 4,1 11,2 8,doctors, feldshers and nurses of emergency care system Modernizing municipal outpatients clinics with diagnostic equipment 14,3 15,4 0,Equipment of emergency care services with ambulances 3,6 3,9 0,Vaccination of population 4,5 6,1 5,Preventive measures against HIV-infection, B and C hepatitis, identification and treat2,8 7,8 8,ment of HIV patients Screening of newborns for galactosemia, adrenogenital syndrome, mucoviscidosis 0,4 0,4 0,Priority area Provision of tertiary care to the population Construction of tertiary care centers 3,2 28,8 9,Provision of tertiary care 9,8 17,5 24,Development of new high medical technologies 7,Priority Decrease of mortality rate associated with manageable cause Improvement of health care provision to those injured in the road traffic accidents - - 3,Improvement of the health care for the patients with cardiovascular diseases - - 3,priority area Development of blood bank - - 3,Implementation of additional clinical examination of working citizens 3,Implementation of the pilot project designed to ensure modernization of the health care 2,0 3,system implementation of informational support and project management 0,6 0,7 0,Subtotal, funded by the federal budget 58,1 116,0 100,Covered by Federal Fund for Compulsory Health Insurance (FFCHI) Additional medical screening of employees in budget-funded sphere, aged 35-55 years 1,6 4,0 - Additional payments for primary care provided to non-working pensioners 4,3 - - Subtotal, funded by FFCHI 5,9 4,0 - Covered by Social Insurance Fund of the Russian Federation (RF SIF) Coverage of health care provided to women during pregnancy and delivery at public 9,0 14,5 16, health care institutions (delivery certificate) Coverage of services involving additional medical screening of working citizens and 3,9 3,0 - provision of primary health care to them Additional medical check-ups of employees in industries associated with exposure to 1,9 2,0 2,harmful and (or) dangerous production factors Subtotal, funded by RF SIF 14,8 19,5 18,Total 78,9 139,5 118,Total, as percentage of the GDP 0,29 0,42 0,Source: data of the Ministry for Health Care and Social Development of the Russian Federation The structure of the project was subject to some changes in 2008. There are two more priority areas, namely Development of blood bank and Decrease of the mortality from the manageable causes (measures aimed at the decrease of the mortality of the population from cardiovascular diseases and road traffic accident), that were added to its two main priorities Development of the primary health care and The provision of the tertiary care to the population. The share of the expenditures for these two new directions made 8.5% of the total expenditures. Even more serious changes concerned the distribution of funds among other priorities. The purchase of the diagnostic equipment for the municipal outpatients clinics and of the ambulances were nearly stopped, the expenditures for the vaccination of the population were reduced in 2008. As a result the proportion of the financing of the measures within the priority area Development of the primary health care decreased sharply from 48.0% to 34.9%. At the same time 6.5% of the budget of the project was directed on the development of the new high medical technologies, which were not included in the National project before and financed from other articles of the federal budget. The expenditures for the rendering of the tertiary medical care also went up, their share expanding from 12.5% to 20.2%. On the whole, taking into account new measures, the share of the expenditures for the development of the stationary medical care has substantially increased from 33.2% to 42.8%.

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