2017, №2

The Main Trends in the Development of the Industry of the Republic of Crimea: a Retrospective Analysis

Abstract:

The article is devoted to a retrospective analysis of the industrial development of the Republic of Crimea from the epoch of USSR until the present time. The scope of the research is the industry of Crimea, the subject is presented by the tendency of transformation mechanisms of management. The purpose of the article is to systematize trends of industrial development. According to this analysis, the reforms of industrial development have been proposed. The purpose has predetermined the following tasks: to analyze the stages of the development of the industry of the Republic of Crimea; to identify the main trends, typical for each of the phases under consideration; to systematize the specific features, which characterize the development of the Crimean industry; to develop, basing on the analysis, the direction of industrial development of the region. To achieve this goal, the historical, systematic and comparative methods of study were used in the work. During the research, the various periodization systems of economic and industrial formation offered by native scientists were examined. In the course of the study of the formation and development of the Crimean industry in the chronological order, the exogenous and internal rules and contradictions of its development were identified. The comparative method of research has allowed identifying the specific features and mechanisms of the development of the Crimean industry and its peculiarities during 3 historical epochs: as part of USSR, of Ukraine and of Russia. The analysis of the transformational shifts in the long-term retrospective has shown that the change in the structure of industry was mainly due to the centralized reallocation of factors of production. The inertial development based on the extensive usage of resources lead to a gradual increasing of the production cost and, consequently, to the decrease in the competitiveness of industrial products. The usage of a wide natural potential does not become the basis for the technical re-equipment of the industry. Insufficient funding and a lack of the state orders at break of economic relations, in accordance with which the industry was created, have been an insurmountable obstacle for the formation of productive capacities. Moreover, the reforms did not have sufficient legislative, financial and institutional basis for implementation. The systematization of the main development trends and the factors, which have caused them, has allowed formulating a number of recommendations about reforming of the industry of the Republic of Crimea. The main recommendation is the formation of mechanisms of sustainable development, which is based on the implementation of investment, institutional and financial policy.

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Galina P. Nazarenko – Senior Lecturer, V. I. Vernadsky Crimean Federal University (Simferopol, Republic of Crimea; e-mail: lucka73@mail.ru).

Irina V. Bairakova – Cand. Sci. (Econ.), Associate Professor, V. I. Vernadsky Crimean Federal University (Simferopol, Republic of Crimea; e-mail: bairakova67@mail.ru).

Elena V. Romanyuk – Cand. Sci. (Econ.), Associate Professor, V. I. Vernadsky Crimean Federal University (Simferopol, Republic of Crimea; e-mail: rommania@rambler.ru).