Financial Journal № 6(52) November-December 2019
Evsey T. Gurvich
Long-Term Global Trends in Pension Policy, p. 9-26
The paper considers the evolution of pension policy in both developed and developing countries over the last 50 years. It demonstrates that drastic changes occurred in this area at the turn of the century, most likely explained with expectations of a marked acceleration in population aging. Reforms in the 1980s and 1990s were aimed mainly at increasing pension coverage and pension size adequacy, while in the last two decades priority generally shifted to ensuring long-term financial sustainability of pension systems. Pension reforms are becoming more and more common, and preventing further growth of public spending on pension is now their most prevalent objective, raising the retirement age being a major tool for addressing this task. Worth noting is also gradual expansion of a relatively new mechanism, namely defined contribution pension systems (including both funded and unfunded schemes). We assume that these trends taken together evidence a clear turn from extensive to intensive pension policy in the world.
Keywords: pension reforms, population aging, retirement age, pension systems, long-term fiscal sustainability
JEL: H55, J11, J18, J26
For citation: Gurvich E.T. Long-term Global Trends in Pension Policy. Financial Journal, 2019, no. 6, pp. 9–26 (In Russ.). DOI: 10.31107/2075-1990-2019-6-9-26.
Evgeny N. Timushev
Federal Intergovernmental Transfers and the Level of Intraregional Fiscal Decentralization in Russia, p. 27-42
The article discusses the federal tools to expand the relative (to the regional level) financial capacity of local budgets in Russia’s budgetary system. Local fiscal decentralization is generally viewed as favorable to local and regional economic development. Reversing the trend of diminishing local powers at the regional level enables unique growth-friendly actions inside broader fiscal policy measures. It has been established that the Ministry of Finance has the ability to shape the fiscal incentives of regional peers toward increasing local decentralization The likelihood of regional authorities taking appropriate actions can be increased if the federal intergovernmental policy measures already planned are implemented, specifically, equalization transfers, balancing grants and earmarked transfers (“subsidies”) are expanded, and the mechanisms of their allocation are upgraded. From the methodological perspective, the “share of local budgets in region-wide total collected tax revenues” has been found to be an unreliable indicator of local fiscal decentralization.
Keywords: federal intergovernmental relations, distribution, equalization, fiscal decentralization indicators, federal districts, probit regression
For citation: Timushev E.N. Federal Intergovernmental Transfers and the Level of Intraregional Fiscal Decentralization in Russia. Financial Journal, 2019, no. 6, pp. 27–42 (In Russ.). DOI: 10.31107/2075-1990-2019-6-27-42.
Natalya S. Kostrykina, Elena V. Zakharenkova
Transfer of Tax Losses in OECD and BRICS Countries, p. 43-56
For a number of reasons, businesses are not always profitable and can often be loss making. Thus, the carryforward of tax losses is a common practice across the world. According to the tax statistics (form No. 5-P), during the economic crisis of 2014–2015, the cumulative balance of unutilized corporate tax losses in the Russian Federation as a whole increased dramatically. Moreover, there was no significant decrease in its volume in the following years of 2016–2018. In 2014–2018, the cumulative balance of unutilized corporate tax losses became comparable with the annual corporate tax base. Under these circumstances, the Russian Ministry of Finance put restrictions on the carryforward of tax losses. For the period from January 1, 2017 to December 31, 2021, only up to 50 % of the corporate tax base for the year could be offset against the tax losses carried forward. It is obvious that the restrictions on the utilization of tax losses affect the position of businesses in terms of taxes. In the meantime, it has been repeatedly articulated by the Russian President and the Government that the tax burden should not be raised and the tax conditions should be stable. In these circumstances, it is of current interest to analyze whether the Russian conditions of tax loss carryforward are unique or similar to international practice. In this regard, the analysis of international trends on tax loss carryforward and their comparison with Russian practice are of academic interest.
Keywords: profit taxation, tax loss carry forward, tax loss carry back, foreign experience, OECD member countries, BRICS
JEL: H20, H25, N40
For citation: Kostrykina N.S. Zakharenkova E.V. Transfer of Tax Losses in OECD and BRICS Countries. Financial Journal, 2019, no. 6, pp. 43–56 (In Russ.). DOI: 10.31107/2075-1990-2019-6-43-56.
Makar I. Kudelich
Direct Agreements in Projects With State Participation: Comparative Legal Analysis, p. 57-69
Over the past years, the Russian Federation has taken a number of measures aimed at developing existing legislation in order to create attractive, stable and transparent conditions for private investment in projects with state participation, on the one hand, and to reduce the financial burden on the budget system, on the other. Currently, the tools to provide investors with special legal regimes for carrying out economic activities (such as special economic zones, territories of priority social and economic development, industrial technology parks, clusters and industrial parks, special tax regimes, territorial development zones etc.) are sufficiently implemented in the system of Russian legislation and economic practice. However, it should be recognized that there are significant gaps in the use of internationally recognized instruments to assist investors in the framework of contractual relations. In other words, today, regarding supporting the implementation of investment projects with state participation, only the necessary institutional, but not contractual environment has been formed, the latter being an indispensable requirement for attracting private (including foreign) investors. In this regard, the article considers one of the key elements of the international practice in supporting the implementation of investment projects with state participation — a direct agreement with senior creditors, and also contains a comparative legal analysis of such practice with the Russian system of legal regulation. The article concludes that it is necessary to expand the possibilities of using direct agreements in investment projects with state participation in Russia, and formulates proposals to bring their provisions in line with the best international standards.
Keywords: direct agreement, investment project, private investment, senior creditor (investor), state
JEL: К12, L32
For citation: Kudelich M.I. Direct Agreements in Projects With State Participation: Comparative Legal Analysis. Financial Journal, 2019, no. 6, pp. 57–69 (In Russ.). DOI: 10.31107/2075-1990-2019-6-57-69.
Valentina N. Parakhina, Olga A. Boris, Rustam M. Ustaev, Galina V. Vorontsova, Oksana N. Momotova
Possibility of Applying the PPP Mechanism in the Implementation of Smart City Projects, p. 70-82
The relevance of the research topic is due to the search for funding sources and tools for implementing projects to create an urban management infrastructure using digital technologies. At the federal level, the Smart City project is included in the system of the national project Housing and Urban Environment and the national program Digital Economy, as well as in the state program Providing Citizens of the Russian Federation with Affordable and Comfortable Housing and ReevUtilities. The aim of the work is to study approaches to assessing the benefits and applicability of public-private partnerships as a mechanism for attracting private investors’ funds to create urban infrastructure using digital technologies. The research methodology includes a set of comparative analysis methods, point-rating and expert evaluations in terms of financing infrastructure projects for the development of urban economy. As a search for the best foreign practices in Russian practice, an analysis of theoretical approaches to assessing the ability of countries to implement financially sustainable and effective public-private partnership projects taking into account the international tool - the Infrascope index is carried out. It is shown that the possibility of implementing PPP projects has binary indicators, but at the same time, the acceptability of a particular legal form must be assessed taking into account the comparative advantage of PPP over budget procurement. According to the results of the analysis, the most popular and real forms of PPP implementation, if the object is information and communication technologies, are agreements (concession agreements) on PPP.
Keywords: public-private partnership, implementation form, model, state, business, financial resources, digitalization
JEL: H54, F15, O19, R58
The reported study was funded by RFBR under the research project No. 19-510-40001 / Аbh-a
For citation: Parakhina V.N., Boris O.A., Ustaev R.M., Vorontsova G.V., Momotova O.N. Possibility of Applying the PPP Mechanism in the Implementation of Smart City Projects. Financial Journal, 2019, no. 6, pp. 70–82 (In Russ.). DOI: 10.31107/2075-1990-2019-6-70-82.
Igor A. Yakovlev, Svetlana I. Nikulina
Indonesia’s Strategy for Sustainable Finance, p. 83-95
According to the 2030 Agenda for Sustainable Development, inclusive green growth is considered to be the pathway to sustainable development. The transition to a resource-efficient green economy is especially challenging for developing countries due to a huge funding gap to implement the Agenda. Governments can play a proactive role in this process by incorporating sustainability factors into national financial systems to channel capital flows into green projects. Indonesia has greatly advanced toward a more sustainable financial system. Its experience in this sphere is especially valuable for the Russian Federation, which is currently shaping its policy of financing sustainable development. The study aims to identify the key facets of Indonesia’s strategy for sustainable finance. The authors outline the major aspects of Indonesia’s action plan and examine its regulatory framework for sustainable finance, including the domestic green bond market. They also analyze Russia’s current initiatives to promote sustainable finance at the national level. The authors come to the conclusion that the Indonesian strategy for sustainable finance is distinguished by specific objectives and principles of sustainable finance closely tied to national development priorities; a clear-cut action plan with time-bound measures to create a conducive environment for sustainable finance; a comprehensive regulatory framework embracing the entire financial sector; a phased approach to the transition to sustainable financing; and strong regulatory support for financial institutions during the transition period.
Keywords: sustainable development, sustainable financing, green economy, low-carbon economic growth, environmentally friendly projects, green investments, green bonds
JEL: G28, Q56, Q01
For citation: Yakovlev I.A., Nikulina S.I. Indonesia’s Strategy for Sustainable Finance. Financial Journal, 2019, no. 6, pp. 83–95 (In Russ.). DOI: 10.31107/2075-1990-2019-6-83-95.
Nataliya Yu. Tanyushcheva
Background of Anti-Money Laundering Regulation in Modern Economic Theory, p. 96-107
The FATF (Financial Action Task Force) obtained the status of an intergovernmental organization, and published the first edition of anti-money laundering standards (40 Recommendations) in 1999. Economists have investigated money laundering typologies, as well as the principles, objectives, and financial instruments of anti-money laundering control, which are formed and implemented by governments and financial organizations in pursuance of anti-money laundering standards. At the same time, all authors mention FATF standards as something unshakable, not subject to discussion. The theory and methodology of anti-money laundering regulation's impact on financial institutions, national financial systems, international finance, and macroeconomics have been developing fragmentarily. We study the known forms of supranational regulation of financial sectors and the vector of their evolution, and present the prerequisites of anti-money laundering associated with the negative impact of money laundering on the economy and society.
Keywords: anti-money laundering regulation, FATF, money laundering, anti-money laundering regime
JEL: E26, F38, F65
For citation: Tanyushcheva N.Yu. Background of Anti-Money Laundering Regulation in Modern Economic Theory. Financial Journal, 2019, no. 6, pp. 96–107 (In Russ.). DOI: 10.31107/2075-1990-2019-6-96-107.
Nurilya K. Kuchukova, Lyazzat A. Talimova
Financial and Economic Development of Kazakhstan: Implementation of Investment Opportunities, p. 108-125
The article is devoted to the study of investment opportunities of Kazakhstan for accelerated technological modernization of the economy, since in the new global reality, active innovative industrialization of the country is the most important priority of the new model of economic growth in the framework of the fourth industrial revolution. The article discusses ways to solve the problem of the lack of sufficient financial resources for a quality update of fixed assets of the industry. For the Republic of Kazakhstan, the most attractive sources of financing for industrial and innovative activities are foreign investments, the development of a guarantee system that will expand the possibilities of bank lending, as well as the use of syndicated lending and venture investment mechanisms. In addition, an important way to attract portfolio foreign investment in the country along with direct foreign investment is to develop the stock market, in particular, the Astana International Financial Center, which will facilitate the entry of large institutional and private investors into the Kazakhstani market. It is concluded that in order to attract potential investors to the Kazakhstan market, it is necessary first of all to reduce taxes, because currently the total tax rate in Kazakhstan is high. Along with this, it is necessary to introduce incentive incentives specifically for investment in the manufacturing sector, since at present the bulk of investments are in the extractive industry.
Keywords: financial and economic development, investment opportunities, Kazakhstan, the fourth industrial revolution, sources of financing investments, Astana International Financial Center, digital technologies
For citation: Kuchukova N.K., Talimova L.A. Financial and Economic Development of Kazakhstan: Implementation of Investment Opportunities. Financial Journal, 2019, no. 6, pp. 108–125 (In Russ.). DOI: 10.31107/ 2075-1990-2019-6-108-125.