Ideas and Ideals

The article presents the results of a study assessing the impact of economic freedom on economic growth and public welfare, which is based on a formalized theoretical representation of degrees of freedom in the form of a parabolic curve with an optimum and deviations from it. This notion of economic freedom echoes the vision of socially useful ‘private vices’ described in Bernard Mandeville’s “The Fable of the Bees”. The evaluation tool is a theoretical-analytical economic-mathematical model of economic reproduction, refl ecting the dynamic process of production and distribution of a public product. Imitation of the development of the socio-economic system with different degrees of economic freedom and in conditions of institutional transformations leading to a change in the degree of freedom confi rmed the expediency of striving for the optimum of freedom. At the same time, contradictions were revealed that arise in the simulated system due to the ambiguity of the interests of economic agents involved in the reproduction process. It also shows the contradictory nature of the institutional reforms themselves, which have far different consequences for different social strata with overall positive changes in the economy.

The planning process is important for the rhythmic functioning of an organization. Planning at each stage of the production process leads to forecasting fi nancial results, in particular the profi t from sales of the organization.  As a rule, in the process of forecasting profi t from sales, only internal factors or processes that infl uence the organization’s activities are taken into account. The purpose of this paper is to substantiate the use of correlation and regression analysis as a tool for forecasting profi ts from a sales organization. The paper considers two approaches to forecasting profi t from sales, taking into account, among other things, the infl uence of external factors affecting organizations whose main activity is related to the rental and management of its own or leased real estate. The fi rst approach to profi t forecasting is based on the direct counting method and economic and mathematical algorithms. The second approach is the use of correlation and regression analysis, based on the infl uence of selected external factors. Profi t forecasting using correlation-regression analysis showed that the average rental price of commercial real estate has a negative relationship with sales profi t, and the amount of electricity consumed has a positive relationship with profi t from sales. Based on the results of the correlation analysis, it can be concluded that changes in the rental price of commercial real estate and the volume of electricity consumed affect the company’s sales profi t.  The value of the forecast sales profi t obtained under the optimistic scenario, calculated by the direct calculation method, is close to the forecast values calculated by the methods of correlation and regression analysis, which proves the importance of using this forecasting tool.

Institutions (norms and rules) play an important role in the development of any socio-economic system, and largely determine its direction and speed. Economic freedom is one of the most important ‘products’ generated by the institutional environment. Strictly speaking, there is no unambiguous understanding of this phenomenon, but there is an almost universally accepted opinion that without freedom it’s diffi cult to achieve success in economic development and thereby ensure the growth of public welfare. The degree of freedom determines the extent and forms in which the interests of economic agents, related to the desire to obtain private benefi ts, which ultimately benefi ts the whole society, can manifest themselves. Bernard Mandeville, who can be considered the “petrel of economic freedom” almost the fi rst among scientists and philosophers of Modern times, addressed this issue long before the founders of classical political economy and presented his judgments in allegorical form in “The Fable of the Bees”. Mandeville’s understanding of economic freedom as an opportunity for the manifestation of socially useful ‘private vices’ differs markedly from the interpretations of economic freedom that currently prevail and on the basis of which the relevant international indices are built. Nevertheless, Mandeville’s views, which were frank and devoid of any hypocrisy, served as the ideological foundation of modern views on economic freedom as an extremely useful, but very contradictory phenomenon in people’s lives.

The history of international economic sanctions is simultaneously old and relatively young. The fi rst sanctions recorded in written history were applied in ancient times, but the newly introduced punitive economic measures received legal status only after the First World War. At fi rst, sanctions were not given much political signifi cance and there were not many of them. The situation changed radically after the Second World War and especially after the collapse of the USSR. The rapid increase in sanction activity over the past two decades is a manifestation of the desire of the United States and its satellites to protect their position as a world hegemon. The punitive economic apparatus, the most powerful in the United States, is set up for sanction activity and generates restrictions and prohibitions as the main products of its activity. To paraphrase the philosopher Rene Descartes, the western sanctions government offi cer use to say: “I authorize, therefore I exist”. International economic sanctions are losing their original function as a means of preventing military confl icts and are turning into an economic weapon. But, paradoxically, attempts to interpret them as an instrument of economic policy are not valid, if only due to the fact that working with the categories of “effi ciency”, widely used in economic science, is impossible in the case of sanctions. Instead of “effi ciency”, the term “effectiveness” should be used, but measuring the latter, unlike “effi ciency”, is impossible; therefore, the phenomenon of sanctions, as such, largely goes beyond the scope of economic science. The nature of modern sanctions is perverse. Their use not only entails economic degradation and destruction of the institutional structure of society in the target countries, but also causes damage to the sending countries. Most modern sanctions are illegitimate and have no moral justifi cation. Sanctions and their systematic application are nothing more than a geopolitical weapon used to undermine the sovereignty of independent states. This article shows the historical evolution of the sanctions mechanism, its degeneration and transformation into a stable institutional entity.

In recent decades, space has begun to be viewed as an important economic resource, an engine of global competition and technological development, capable of having a multiplier effect on the development of the entire economic system of a country. It is a necessary factor in global communication and information. Each state can use space for peaceful purposes, since it is a common resource for all countries. That is why the space industry is the object of the careful study by many researchers and a special sphere of government regulation. The top three leaders in the space industry are the USA, China and Russia. The purpose of this article is to conduct a comparative analysis of the development of the space industry in the USA, China and Russia, as well as to develop recommendations for improving the regulation of the Russian space industry based on foreign experience. The author selected the following characteristics as the main parameters of comparison: 1. Signifi cant space achievements, 2. Industry fi nancing, 3. Structure of the space industry, 4. The scale of private space sector development, 5. Motives for international cooperation in the fi eld of space exploration.

Based on the analysis, the features of space industry development in each country were identifi ed. Special attention in the study is paid to the Russian space industry. In particular, it was found that the main structural feature of the Russian space industry, in contrast to the USA and China, is the signifi cant predominance of state-owned companies over private enterprises. This is associated with the lack of the necessary regulatory framework in our country and, as a consequence, the underdevelopment of the market for space products and services. At the same time, Russia can be considered a leader in terms of funding for the space industry (as a percentage of GDP), but in absolute fi nancial indicators (in millions of dollars) Russia lags signifi cantly behind the United States and China. In addition, Russia adheres to the practice of participating in international cooperation in the space sector, based primarily on political factors rather than economic motives, which fundamentally distinguishes its approach from the approach used by the United States. The article proposes a number of practical recommendations, the implementation of which, according to the author’s opinion, will contribute to increasing the effi ciency of space activities in Russia.

The growing specialization and formalization of economic knowledge threatens to break away from the general scientifi c base that forms the worldview of the researcher. An urgent task is presented in the reintegration of basic methodological principles and categories of science into modern social science and economic theory. The article conducts a comparative analysis of the works of K. Marx and K. Popper, who made revolutionary changes in the methodology and ideological attitudes (conceptual frameworks) of scientifi c knowledge. Marx’s contribution focuses on dialectical and historical materialism, the doctrine of the economic basis of society and the change of socio-economic formations; Popper’s contribution focuses on his trial and error method with falsifying interpretation of results and the concept of successive three worlds of the universe. Popper’s criticisms of Marxist doctrine (essentialism, elements of mythology, teleologism) and the counterarguments of consistent Marxists are evaluated. The paper characterizes Popper’s positions on the realism of scientifi c knowledge, the world of predispositions, fl exible management in animate and inanimate nature, the world of mental states of consciousness and the world of the objective content of thinking. Their commonality with the provisions of dialectical and historical materialism (the material nature of objective reality, the theory of refl ection, the role of objective mental forms and ideological social relations) in the formation of the ‘world of objective knowledge’ is shown. The insuffi ciency of Popper’s epistemology for the study of the economic basis of social life is revealed. Based on a str uctural and logical analysis of the methodological principles and theoretical positions of Marx and Popper, the paper outlines the paths to the development of a system of concepts that brings together the complementary results of their apparently opposing research programs. Also presented are sources showing the relevance of the ideas of Marx and Popper in modern methodological and socio-economic literature. It is concluded that the world of objective knowledge (the key category of Popper’s social science) is part of the socio-economic life of society (in its Marxist interpretation), which, in turn, is incomplete without taking into account the realities of this world and needs additional study from the appropriate angle.

In modern marketing, researchers are focused on the omnichannel approach due to the growing number of communication channels and sources of consumer information about brands. This paper examines the complexity and multifactorial nature of the omnichannel approach in the formation of customer experience and marketing communications in the digital environment. The article discusses the concept of a “Consumer Journey Map”, which refl ects the stages of making a purchase decision, after-sales interaction and the customer experience formed within this path. This approach allows you to defi ne and analyze the touchpoints with the consumer and information messages at each stage of the consumer journey in order to create a positive brand image. The consumer’s journey is formed by the sequential passage of a number of points of contact, which may belong to the brand, its partners or be independent. This affects the degree of brand control over the information at each of these points. Particular attention is paid to the complexity of tracking the entire variety of contact points through which the customer passes on the way to making a purchase. The management of this variety of points from the standpoint of a single communication environment of brand and consumer interaction is the subject of omnichannel marketing research. Within the framework of this study, the author considers the evaluation of the effectiveness of marketing channels at the stage of preparation for purchase. These channels may be underestimated, since in terms of direct return on marketing investments, they lose to the fi nal pre-purchase channels, but they play a key role in shaping the customer experience leading to subsequent purchases. The article presents the results of a study of online communication based on a company providing educational services. This study demonstrates the relationship between the volume of investments in paid promotion channels and the total revenue from online channels. The results of the study emphasize the importance of the omnichannel approach in modern communication, where the buyer interacts with the brand in various channels and perceives communication as a single continuous process, even when switching from one channel to another.

Based on the analysis of a number of macroeconomic and sectoral indicators, it is established that in January–April 2024, there was an economic decline compared to the corresponding period in 2023. Moreover, the extent of the decline is increasing month by month. It is noteworthy that the authorities, as in the past in the USSR, are turning a blind eye to the decline. The causes of the decline are determined by the combined impact of both cyclical factors (Western economic sanctions, overstrain from military expenditures) and long-term trends of a decline in fi xed assets and a reduction in the workforce, as well as the qualifi cations of personnel at all levels. The future prospects of the Russian economy are determined, along with ensuring effective economic policy and building a functional state system, by the level of escalation of the confl ict in Ukraine and the extent of economic sanctions. In the event of signifi cant escalation of military actions, what will be required is a transition to a wartime economy with a high share of military expenditures in GDP, a reduction in consumer spending and non-productive investments, mobilization of labor resources in favor of the armed forces and the military-industrial complex, and the introduction of a rationing system for main food products, as well as the nationalization of several companies. The success of this structural maneuver is determined by the organization and qualifi cations of the state apparatus. In the case of moderate escalation of military actions and economic sanctions, the radical nature of structural and institutional changes will decrease.

The change in the system of world economic communications as a result of sanction policy towards Russia and its allied countries forces enterprises and organizations to prove strategies of entry into foreign markets for the purpose of income generation and inclusion in new value chains. Therefore, the purpose of this research is the comparative analysis of factors and assessment of the application of international market entry strategies of Russian IT companies. Qualitative and quantitative methods of economic research were applied to achieving this goal. Qualitative methods included PESTEL analysis, situation and comparative analysis. Quantitative methods included the cost-benefi t method, statistical techniques and economic analysis methods. Tabular and graphic approaches are used for text visualization. In this research the factors infl uencing organizations activity in the international sphere and also the main foreign market entry strategies of IT companies were analyzed. Comparative analysis revealed benefi ts and shortcomings of each strategy, taking into account modern forms of business and currency risks. For the Russian IT company producing software three strategies were evaluated: export, franchising and direct investments. The choice of the IT industry for considering international market entry strategies of Russian organizations is proven. It is necessary to separate the development of new technologies and infrastructure, existence of fi nancial resources and pressure of economic sanctions from the factors infl uencing this process. Of the three strategies analyzed, the lowest-cost and lowest-profi t strategy was the franchising strategy; it can be used when there is a shortage of fi nancial resources. For “growth hacking” the expensive, but highly profi table strategy of direct investment taking into account currency hedging is applicable. Proceeding from the analysis of the infl uencing factors and legal conditions of the Russian Federation it is expedient to follow the strategy of average profi table export for ensuring company development.

The practical application of strategies for organizations to enter foreign markets is a multifaceted object of research that requires a comprehensive analysis of various aspects of business expansion. The received results will help companies make weighed decisions when choosing the optimum strategy for expanding their business in the international market.

In the article the author reveals the most signifi cant methodological problems in this most important area, which is the basis for the reproduction of economic systems, on the basis of considering the most widely used methods of capital investment assessment. The article also provides a brief theoretical characterization of capital investments. It is concluded that the reason for methodological problems in the assessment of capital investments is the issue of the nature of capital, which has not been fully resolved in the fi eld of fundamental economic theory. The author draws attention to the fact that the detailed methods of capital investment assessment for specifi c conditions of management of individual sectoral economic systems, elaborated in scientifi c articles, dissertations and other works, do not receive scientifi c generalization and balanced assessment of the community. In fact, it means that there are no methods proven and used by many researchers and practitioners. It is shown that it is inappropriate to completely identify the investment process, project appraisal and capital investments of enterprises. The author points out the gap between fi nancial and technological effi ciency existing in the theory and practice of work with investments. Further, using the example of the Russian electric power transmission industry, the author shows how general methods of capital investment assessment may not be applicable depending on specifi c industry conditions, and how theoretical and methodological problems in practice turn into a lack of tools for decision-making.

In conclusion, based on the consideration of disproportions in the mechanism of capital investment assessment, implementation and regulation, another fundamental issue of the theory arises – the need to change approaches to the confl ict of interests and regulation of natural monopolies as a non-cooperative game.