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• Introduction
• 1.2.1 State capitalism
• 1.2.2 Import-substituting industrialization policy
• 1.2.3 Transition to neoliberal regime and privatization of state property
• 1.2.4 Cities Latin America during the period of political and economic transformations
• 2.1 The concept of city economy
• 3. Economic transformations in the cities of Latin America (on the example of the cities of Colombia and Brazil)
• 3.1 Legal status municipalities (Colombia, Brazil, Russia)
• 3.2 Local budget and degree of autonomy of the municipality
• 3.3 General characteristics of local socio-economic policies in Latin American countries
• 3.4. Social experiments. Modernization of transport infrastructure (Bogotá)
• 3.5 Reducing social tension. Informatization of society. Cluster City (Medellin)
• 3.6 Modernization of the city's transport system and support for small businesses (Curitiba)
• Conclusions and recommendations
• Conclusion
• Bibliographic list

Introduction

The dynamically developing world does not leave cities without attention, which in their essence are the backbones of economic development. So, cities have always been decision-making centers, local financial, labor resources, and capital are concentrated in cities. That is why development is vital for cities, primarily to maintain their own competitiveness.

According to O'Sullivan, a city (or municipality) is an area in which a municipal corporation provides, on behalf of a local government, services such as sewerage, crime control, and fire protection. as a political, not economic education "O "Sullivan A. Economics of the city / Per. from English - M.: Infra-M, 2002. - 706 p., p.21.

It is important to note that the development of the city is a multicomponent system, which equally includes the transformation of all its components, namely: population, economy, infrastructure, ecology - all spheres related to the process of human life. It should also be understood that each of the elements of the urban system has a multifaceted structure. For example, it is impossible to imagine the infrastructure of a city only as roads or utilities. So the economy of the city is inherently a complex system.

An important factor in the development of Russian cities is that the Russian economy is in a transitional period, which is characterized by multistructural, unstable and informal relations, which complicates the determination of the necessary set of measures for the sustainable growth of the urban economy. In this case, one of the necessary tools for preparing urban development programs or state, regional or local policies aimed at transforming the economy is an appeal to the positive experience of foreign countries. This paper will consider the experience of urban restructuring in Latin America.

The relevance of this topic consists of several aspects.

First, today Latin America is the most urbanized region in the world with more than 80% of the population living in cities. Such a shift of the population towards cities largely ensured the growth of the economies of the countries of the region: there was an increase in the productivity of cities with a concomitant decrease in the cost of providing basic services to citizens. At the present stage of development of the region, cities play a key role for the economy of all Latin America.

Secondly, in addition to the fact that Latin America today is a rapidly developing region in all respects, for the study of urban development it is also of interest in view of the commonality of the "catch-up development" type of Latin American countries and Russia, which will allow projecting structural changes in the urban economies of the South America on the cities of Russia.

Thirdly, with an abundance of research on the experience of urban development in the United States, Canada and Europe, there is practically no research on the Latin American region. Thus, there are analytical works of the Institute of Latin America of the Russian Academy of Sciences, which were devoted to political and institutional changes that affected the countries of the region in the era of transition from an authoritarian regime to a policy of neoliberalism, and the possibility of applying this experience in the practice of Russia. However, the development of Latin American cities has been little studied.

The purpose of this work is to analyze the experience of transforming the economy of cities in Latin America and to identify tools for modernizing the urban economy, the use of which is possible in Russian reality.

To achieve this goal, it is necessary to perform a number of tasks, namely:

Highlight General characteristics Russia and the countries of the Latin American region;

· Designate the theoretical framework of the study;

· Compare the competencies of municipalities and the direction of municipal socio-economic policy in Latin America and Russia;

· Consider the practical experience of transforming the economy of Latin American cities and highlight the tools of socio-economic development that can be applied in Russia.

The object of study in this paper is the economy of cities in Latin America.

The subject of the study is the practice of restructuring the economy of cities in Latin America.

The literature used in this study can be divided into several blocks. First of all, it is necessary to single out the legal acts of Russia and a number of the Latin American region. Also, the work used scientific publications of Russian and foreign researchers on the political and economic situation in Russia and Latin America, on the transition economy.

Separately, it is worth highlighting the following studies of the development of cities in the Latin American region:

· Alburquerque, F. (1999) - Desarrollo Economico Local en Europa y América Latina. The work is devoted to the municipal socio-economic development of Latin American cities in comparison with the European model (on the example of the municipal policy of Spain). In his work, the author comes to the conclusion that an important role in the municipal socio-economic policy is played by the formation of a certain culture and institutional environment in the local community, which in turn will promote the development of entrepreneurship and attract investment in the urban economy;

· Meyer-Stamer, J.; Harmes-Liedtke, U. (2005) - Cumo promoter Clusters. Elaborado para el proyecto "Competitividad: conceptos y Buenas prácticas. Una herramienta de autoaprendizaje y consulta. Working Paper No. 08. BID. A study conducted by the Latin American Development Bank, dedicated to the study of best practices in the development of clusters. In this paper, the authors distinguish 4 types of clusters: clusters, the establishment of which is an initiative federal bodies authorities, clusters initiated by business associations, clusters initiated by local authorities, and clusters initiated by the local business community;

· Herrera Macias A. (1996) - La Decentralizacion y el Desarrollo Regional en Colombia: Tendencias Actuales. This work is devoted to the process of decentralization of power in Colombia and the role of municipalities in the development of the country's economy. The author analyzes the powers local authorities authorities, and also considers the fiscal autonomy of municipalities and intergovernmental transfers as one of the instruments of decentralization;

Gallicchio E. (2004) El Desarrollo Local En América Latina. Estrategia Polntica Basada En La Construcción De Capital Social. The paper examines the impact of municipal social policy on the economy of a municipality in Latin America. In his work, the author comes to the conclusion that social policy is of great importance for the municipality, as it helps to demarginalize the local community;

· De Soto H. (1989) El Otro Sendero. In this paper, de Soto examines the nature of the informal sector of the economy and its impact on the country's economy. The author comes to the conclusion that the appearance of the illegal economy is a reaction of people to the dysfunction of the state and the excessive strengthening of the bureaucracy.

Also in this work, we used the statistics of the World Bank, the Latin American Development Bank, government statistical organizations, data posted on the official portals of Prefectures and Administrations of municipalities on the Internet.

Along with the indicated sources, the development strategies of municipalities were used, the data provided on the Internet pages of the objects under consideration (the Cluster of Medellin, the Curitiba business incubator, the transport systems of Curitiba and Bogota, the public opinion research portal "Medellin Como Vamos?").

1. Russia and Latin America - general characteristics

Appeal to the experience of other states, and especially the experience of modernization and reforms, is undoubtedly the most important tool of economic science. Moreover, both positive and negative experiences are equally important. The experience of developed countries and lagging behind is important. But it is especially interesting to refer to the experience of states close to Russia in their history, geographical features, economic characteristics, political systems, and mentality.

In this regard, Latin America is a completely special region for Russia. According to many of its characteristics, for example, climatic or demographic, it has little in common with our northern state. However, if you look deeper, you can see how much these two regions have in common. Thus, it is possible to identify common economic, political and institutional characteristics that unite Russia and the countries of the South American region. Let's take a closer look at each of the selected blocks.

1.1 Resource dependence of the economy

From what can be identified in common between the objects of comparison, the first thing to note is the resource dependence of the economy. The region is rich in minerals, and this, although it is an advantage for doing economic activity, has led the states of Latin America to dependence on exports.

Thus, the export of oil and gas in Mexico and Venezuela is the main source of income for states. Argentina, Colombia and Bolivia are also exporters of these energy carriers, but their market segment is significantly inferior to their aforementioned neighbors. Table 1 compares the relative indicators of oil production and export for the leading exporters among the countries of Latin America and Russia according to the data for 2007. The table is compiled on the basis of the statistical data presented in the article by Yu.N. Novikov. Dynamics of changes and the current state of world reserves, production and consumption of oil [Electronic resource] // Neftegazovaya geologiya. Theory and practice. [Website] URL: http://www.ngtp.ru/rub/6/13_2013.pdf (date of access: 05/30/2013). .

Table 1. Comparison of relative indicators of oil production and sales, 2007

For comparison, Brazil, such a large state and a member of the BRICS, turned out to be practically devoid of large deposits of oil, gas, or even high-quality coal, which is mined in almost the entire region. This was the reason for the unique feature of the energy of this state - more than 90 percent of Brazil's energy is produced from renewable energy sources. Energy imports make up only a small part of the state's energy sector. Chile, another economic leader in the region, is the main importer of oil and gas products.

Energy exports and imports are only one part of the resource trade in the region. Mining is no less significant (Chile - about 57% Foreign trade relations of Chile [Electronic resource] // Embassy Russian Federation in the Republic of Chile [Website] URL: http://www.chile.mid.ru/rus/InformacionChile/econ_002.htm (Accessed: 05/30/2013). exports account for the mining industry, Bolivia - about 90% Mining industry of Bolivia [Electronic resource] // News travel blog: News, articles and notes about countries [Website] URL: - (accessed: 05/30/2013). exports account for the mining industry) and agricultural (Brazil - about 26% Commodity structure foreign trade of Brazil in 2010 [Electronic resource] // Consulting company VLANT [Website] URL: (date of access: 05/30/2013). of exports is food exports, however, with 15.6% of Brazil's exports in 2010 accounted for ores Ibid. , Argentina - about 50% Argentina [Electronic resource] // Trade Representation of the Russian Federation in the Argentine Republic [Website] URL: (date of access: 05/30/2013). exports is the export of food and agricultural raw materials) industries of Latin America.

1.2 Trajectory of economic and political development

As is known, the states of this region gained independence only in the first third of the 19th century. But although the European countries had to recognize the independence of Latin America, they were not going to give up trying to make money on it. During the 19th and first half of the 20th centuries, large plantations and mines were nationalized, then again, often under political pressure, passed into the hands of foreign corporations. The situation only worsened with the establishment of economic and political hegemony in the region of the United States of America. Often, the violent change of political power in the states of Latin America took place with the participation of the United States and Europe, the main goal of which was to prevent the economic freedom of the region and protect the interests of their economic agents. In essence, the Soviet rhetoric about the "robbery" of Latin America by the imperialist states was quite consistent with reality.

1. 2 .1 State capitalism

For a long time, for half a century on the territory of the countries of Lat the foreign-American region functioned state-capitalist model. This model originated in a number of countries in the region as early as the 1920s and 1930s. XX century. This was due to the rise of the ideology of anti-imperialism and national reformism in that period and the conditions of the world economic crisis of 1929-33, which exposed the shortcomings of the one-sided agrarian and raw material specialization of the Latin American countries Arinarkhov E. Russia and Latin America: general and especially. [Electronic resource] // Bridge of friendship between Russia and Latin America. 02/28/2008. [Website] URL: (date of access: 05/30/2013). .

In a certain period, state capitalism played an important role in the formation of private entrepreneurship in the region under consideration (especially in industrial production). With the assistance of the authorities of Argentina, Brazil, Mexico, Venezuela, Colombia, Chile, strong financial and industrial groups have emerged that now play a leading role in the economic development of these countries and have close partnerships with major Western companies.

As E. Arinarkhov writes, “accelerated development of the production infrastructure and basic industries within the state sector, which is beyond the strength of private domestic entrepreneurship, contributed to the formation of favorable conditions for its development. Low tariffs for the production services of state enterprises turned into increased profits for private enterprises and, thus, forced the process of primitive capital accumulation” Ibid. .

For several decades, the countries of the region have applied a system of measures of indirect influence on the processes of accumulation of private capital and its distribution. In many countries, a network of large state-owned development banks has been created, which financed large investment projects in priority sectors of the economy on a long-term basis.

The characteristic features of traditional state capitalism were the regulation of the relationship of domestic capital with foreign capital and the high level of customs and tariff protection of domestic markets.

In turn, in the 20s of the 20th century, a new economic policy was undertaken in the USSR, combining elements of a market economy with a dominant public sector and state control It should also be noted that early nationalized small enterprises returned to their former owners during this period. Since 1923, the policy of attracting foreign capital to the economy began ( state enterprises leased to foreign companies on the basis of concession agreements).

1. 2 .2 Import-substituting industrialization policy

Serious shifts in the development of the economies of Latin America iki began after World War II. As a panacea in the early 1950s, the region chose the course of import-substituting industrialization - protectionism. domestic market while boosting exports.

In the general case, the policy of import-substituting industrialization of the economy, which is essentially similar to an attempt to bring the economy of Russia (USSR) to self-sufficiency (with the only difference that in South American countries the emphasis was placed on the development of consumer goods production, while in the USSR the main the emphasis was on the military industry), led to the growth of the economies of the countries, which is confirmed by the dynamics of per capita GDP, which is illustrated in Table 2.

Table 2. GDP per capita in a number of Latin American countries and the USSR, 1950-1970 Krasilshchikov V.A. Latin America today - Russia tomorrow (an optimistic version of the future of Russia) [Electronic resource] // World of Russia. - 2002. - v. XI. - No. 1. [Website] URL: /913/950/1219/2002_n1_p57-96.pdf (date of access: 05/30/2013). .

1. 2 .3 The transition to a neoliberal regime and the privatization of the state n property

80s The twentieth century in Latin America is called the lost decade. The economic crisis, the consequences of which were felt by all the countries of the region, was most clearly manifested in Argentina. The country, although previously it was among the leaders among the economies of Latin America, has lost its leading position. According to existing data, from 1981 to 1990, the gross domestic product of Argentina decreased by 11%, investment - by 55%, industrial production- by 19%, hundreds of thousands of Argentines lost their jobs. The chronic budget deficit and the lack of financial reserves forced the Central Bank to resort to issuing the Argentine currency. These measures led to hyperinflation in the country with an inflation rate of up to 600%. Ibid. .

However, in response to the crisis situation that developed towards the end of the 1980s, the transition to neoliberal economic policy began, which was mainly a reaction to the deep crisis of the previous model of the region's development.

First of all, this policy was expressed in the privatization of the public sector. Thus, one of the goals of privatization was to increase the efficiency of enterprises. Another goal is an attempt by the state to make money on the sale of property in order to find funds for the modernization and stimulation of the economy, and the implementation of reforms. It is known that many researchers in Russia have closely studied the experience of the privatization of the Latin American region, looking especially at the so-called "Chilean economic miracle" and in particular the Chilean privatization. See, for example: Kvasov A.: Chilean economic reforms, practical experience and its relevance to Russia. M., 1998.

Therefore, in the second half of the last century, Latin American states faced two tasks: the nationalization of property, which at that time was controlled by foreign companies (as a result of the era of state capitalism), and, subsequently, its privatization. Both of these tasks were not easy to accomplish.

Let us turn to the experience of Chile. The nationalization of foreign companies that flooded the state was the primary task of the socialist government of Salvador Allende. Moreover, the nationalization was carried out simply, foreign enterprises were declared state-owned, and foreign agents were left with nothing. This could not but arouse the indignation of the United States, which could not put up with it and supported the dissatisfaction of the Chilean military, which relied on the rich and middle strata of the population. As a result, in 1973 there was a military coup, as a result of which a dictatorship of a military junta led by Augusto Pinochet was established in Chile for a long 17 years. However, contrary to prevailing opinion and expectations, Pinochet did not give back the nationalized enterprises and the lands expropriated by the peasants, but only paid some compensation for them.

The nationalizations in Brazil and Argentina, which also took place in the mid-1970s, went more smoothly because the foreign governments did not have enough influence to prevent these two states. Much more difficult, due to objective reasons, the process of nationalization took place in Mexico.

With a large scale of privatization in Latin America, it was carried out in a very short term, the privatization of most of the enterprises was within about a decade (90s). As a rule, privatization in Latin American states took place in several stages, two or three. First, the least significant for the state small enterprises that were not of strategic importance were sold. Further sold more large enterprises. At this point, privatization slowed down and stopped; only some single acts of sale could take place.

Speaking about the results of the neoliberal transformations of the 1990s, it is worth noting the growth of the GDP of the countries of the region: in contrast to the similar Russian indicator, where economic growth began only after 1998, in the countries of the South American region it began to grow along with the introduction into the economy market mechanisms. So, for the period 1990-2000. regional GDP grew by 38% with average annual growth in 1.5% CEPAL. Balance preliminar de la economna de América Latina y el Caribe, 2001. Santiago de Chile, diciembre de 2001. . The dynamics of per capita GDP in Latin American countries is presented in Table 3. Krasilshchikov V.A. Latin America today - Russia tomorrow (an optimistic version of the future of Russia) [Electronic resource] // World of Russia. - 2002. - v. XI. - No. 1. [Website] URL: .

Table 3. GDP per capita in a number of Latin American countries and in Russia, 1990-2000, in PPP currencies, in 1996 US dollars

It is important to note that the countries of Latin America paid considerable attention to the modernization of the financial sector, advanced in informatization and the development of telecommunications. Also, in the mid-90s, there were positive changes in a number of manufacturing industries (Argentina, Mexico and Brazil surpassed the United States in the electrical, clothing, pulp and paper industries in terms of productivity) Krasilshchikov V.A. Latin America today - Russia tomorrow (an optimistic version of the future of Russia) [Electronic resource] // World of Russia. - 2002. - v. XI. - No. 1. [Website] URL: . It should also be noted the growth in the share of high-tech products in the export of industrial products of the countries of the region. Thus, this indicator increased over the decade by 3% (from 6 to 9%) in Argentina, from 8 to 16% in Brazil and from 2 to 7% in Colombia. For comparison: the same figure in Russia increased from 10% to 14% over the same period. Ibid. .

1 .2.4 Cities of Latin America during the period of political and economic e formations

In the process of industrialization on the South American continent, branch industrial centers were formed. For the most part Some of their occurrence is associated with the benefit of the economic and geographical position (close to the source of raw materials, fuel or energy). Most common on the continent industrial centers fuel or ore raw materials.

The most striking example of such a fuel industrial hub is Maracaibo. Since the 20s of the last century, this region (with its center in the city of the same name) provided most of the oil produced not only in Venezuela, but also in Latin America. If we talk about the centers of the mining industry, we should mention the Chuquicamata deposit, located near the city of Antofagasta (Chile). This area is one of the largest deposits of copper ore in Chile. Such industrial centers, the economy of which is focused on one industry, are better known in the Russian scientific literature as single-industry towns. In the course of industrialization, the attractiveness of existing cities increased dramatically, which led to a massive movement of the population from rural areas to the city, as evidenced by the data presented in Table 4. The statistics were taken from the electronic database of the US Department of Economic and Social Policy [Electronic resource]. [Website] URL:

(date of access: 05/30/2013). :

Table 4. The share of the urban population in a number of countries of Latin America and the USSR, 1950-1980, %

However, speaking of the “urban boom” of the middle of the last century, it is worth noting that it was mainly the rural poor who migrated to the cities, which corresponds to the so-called false urbanization False urbanization - in developing countries - the rapid growth of the urban population, not accompanied by a sufficient increase in the number of workers places. The rural population arriving in the cities replenishes the army of the unemployed, and the lack of housing causes the appearance of unsettled urban outskirts with unsanitary living conditions, resulting in the emergence of slums, a sharp increase in crime, an increase in social tension (in 1980, about 35% of Hispanic families lived below the poverty line) .

It is worth noting that since 1980 the nature of poverty in the countries of the region has changed. So, before the beginning of the “lost decade” it was mostly rural, then by the end of the 90s it became mostly urban. This fact reflects the fact that the transformations in the course of economic liberalization prompted the rural population to migrate to the cities and affected mainly the urban population (see Table 5).

IN AND. Krasilnikov explains this fact as follows: the economic growth of the late 20th century was capital-intensive, as a result of which there was a reduction in jobs in the manufacturing industry.

Unemployment in the region in 1990 increased to 8% (In Argentina - 17%,) Krasilshchikov V.A. Latin America today - Russia tomorrow (an optimistic version of the future of Russia) [Electronic resource] // World of Russia. - 2002. - v. XI. - No. 1. [Website] URL: http://ecsocman.hse.ru/data/913/950/1219/2002_n1_p57-96.pdf (date of access: 05/30/2013). . For this reason, in the cities of South America, employment in the informal sector of the economy increased by an average of 4% per year, which is very similar to the similar situation in Russia. However, the data given for Russian cities correspond to the proportion of the population living below the subsistence minimum, which does not allow a complete comparison of the data.

Table 5. Percentage of the urban population of Latin American countries living below the poverty line, 1990-1999 Krasilshchikov V.A. Latin America today - Russia tomorrow (an optimistic version of the future of Russia) [Electronic resource] // World of Russia. - 2002. - v. XI. - No. 1. [Website] URL: http://ecsocman.hse.ru/data/913/950/1219/2002_n1_p57-96.pdf (date of access: 05/30/2013). .

Speaking about the informal sector of the economy and its role in the history and development of the countries of the South American region, it is necessary to refer to the works of the Chilean economist Hernando de Soto. In his book The Other Way, he describes the following situation: the city authorities began to take restrictive measures against the assimilation of migrants from rural areas and other, poorer regions, and for the sake of survival, the poor were forced to create a shadow economy that supported their way of life. “When the poor ... get into the cities, they find a closed door in front of them. They have neither money nor technical skills. They have no hope of getting a loan, no chance of insurance, and no protection from the police or the judiciary. The threat to their business comes from everywhere. All they have is the will, the imagination, and the desire to work.” De Soto, H. El Otro Sendero, Bogotá, Ed. Printer Colombiana, 6th. Ediciun, 1987, p. 16-23.

De Soto, using the example of his homeland, traces the growth of gigantic informal economic formations based on oral agreements, barter exchanges, family and friendly ties, unregistered property and possession rights, and completely not “illuminated” in the field of the “big” economy of formations, in fact, which now constitute a continent of unvalued property and non-formalizable economic relations. Thus, according to the author, about 83% of the Lima market was represented by the illegal sector, about 95% of public transport was also represented by "illegal immigrants", about 39% of Chile's GDP came from the informal sector De Soto, H. El Otro Sendero, Bogotá, Ed. Printer Colombiana, 6th. Ediciun, 1987, p. 16-23.

For Russia, as well as for the entire post-Soviet space, the informal economy is also of great importance, since it allowed thousands of people to survive in the conditions of the massive closure of enterprises in the 1990s. So, only according to official data, about 30% of the money turnover in the country accounted for the illegal sector.

Summing up, it should be noted once again that Russia, despite all the existing geographical differences, has much in common with the countries of Latin America. The similarity of the historical stages of development, which are characterized by similar trajectories of changes in the political and economic structure of countries, make it possible to interpret the experience gained by the South American countries for Russian reality.

The economic reforms carried out at different stages (protectionism and the industrial course, nationalization, privatization) could not but affect the state of cities, both in the countries of South America and in Russia. Thus, the result of the era of industrialization was a large increase in the share of the urban population. However, the conditions in the cities were not sufficient to accept such an influx of people from rural areas, resulting in the formation of poor areas, "slums", in which the crime rate was very high. The situation was aggravated by the transition to the policy of neoliberalism, when, as a result of economic and technological transformations, a large number of the population lost their jobs, which led to the growth of the shadow sector of the urban economy.

As part of the study of the experience of urban restructuring, this paper will consider the experience of countries such as Colombia and Brazil. This choice is due to the following: as can be seen from Tables 3 and 4, today in Latin America there are 4 countries closest to Russia in terms of GDP per capita and the level of urbanization of the state, namely: Argentina, Brazil, Colombia and Mexico. Wouldn't it be better to justify it by a similar level of GDP per capita and the level of urbanization.

However, Mexico's economic growth is largely due to direct contact with the United States of America. For example, over the past three or four decades, a special industrial region has been formed in the northern part of Mexico bordering the United States.

Thus, the exclusion of Mexico from the countries selected for consideration becomes understandable. At the same time, Colombia ranks among the top five countries in Latin America in terms of its rate of development, which, in turn, unlike the case of Mexico, is not subject to such influence from a large state with a developed economy.

2. Structural changes in the economy of cities in transition

In order to fully appreciate the structural changes in the economy of Latin American cities, it is necessary to identify both the very concepts of the city economy and its structure, and to identify the structural and institutional changes that have occurred in the economy in general, and in cities in particular. Let's consider in more detail each of these points.

2.1 The concept of city economy

The concept of the city's economy has a different interpretation. So, in a narrow sense, the city economy is understood as the municipal economy or urban economy. Here we can identify the following two approaches: firstly, the economy of the city includes all objects of municipal property and their relationships; secondly, the city's economy can be attributed to the system of institutions and enterprises that carry out economic activities within the city, which is aimed at meeting the needs of the population, regardless of the form of ownership.

In a broader sense, the city's economy can be understood as the relationship that develops in the process of reproduction (production, distribution and consumption) of material and cultural goods between all economic agents (enterprises, organizations and institutions of all forms of ownership, as well as households) located in the city . Animitsa E.G. Basic ideas about the economy of the city as an independent scientific direction// Proceedings of the Ural State Economic University. 1999. No. 1, p.27

As part of the definition of the "boundaries of the city's economy", two approaches can be distinguished. Representatives of the first of them believe that the city's economy cannot be limited to administrative boundaries due to the relationships that arise between economic agents and go beyond the administrative boundaries. : INFA-M, 2002. - XXVI, 706 pp. - (Series "University textbook")... This approach allows you to most fully study the economic relations that make up the essence of the city's economy.The second approach involves studying the urban economy within the political and legal boundaries municipality. It should be noted that in this paper, the city's economy is considered within the administrative boundaries of the city, which is due to the availability of statistical data necessary for this work.

The restructuring of the urban economy in this work is understood as a set of managerial measures of the organizational, economic, financial, technical and technological areas, the purpose of which is economic growth, increasing competitiveness and financial stability cities.

2.2 Approaches to the transformation of the city economy

The city is an integral part of human civilization, which is why its development and changes in its economy are directly related to social development. Historical, political, social and economic changes, which the human community encounters, in one way or another modify the city. And these changes directly affect the city's economy. In order to understand the nature of the restructuring of the city's economy, let's consider the theoretical approaches of social development.

The theory of modernization that appeared in the middle of the 20th century considers the innovative changes that are present during the transition from a traditional society to a modern one, as a combination of the following processes: urbanization, industrialization, demographic and professional growth, as well as the functional and structural stratification of society Alekseev V.V. Russia in the context of modernization theory // Russian modernization of the XIX-XX centuries: institutional, social, economic changes. Sat. scientific Art. Ufa, 1997. S. 3-10. Within the framework of this approach, the main phases of the development of society are distinguished (Fig. 1)

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Rice. 1 Phases of development of society in the theory of modernization

It is important to note the fact that each country has its own characteristics of passing each phase. So, in the countries of North America and Western Europe, all the changes were endogenous, which meant the organic development of such areas of public life as: economics, law and politics. In Russia and, for example, in Latin American countries, modernization was mainly of an external, imposed nature: the state or the ruling class begins the process of transformation “from above”, trying to repeat the processes that took place in developed countries Krasilnikov V. Russia and global modernization // Pro et Contra. 1999. V.4, No. 3, S. 89-111. Such "catching up" development leads to the simultaneous formation in the socio-economic environment of elements characteristic of different stages of development, which will lead to the formation of conflicts between various elements of society and jeopardize the sustainability of society's development.

Within the framework of the theory of modernization, the so-called theory of post-industrial society is singled out, which is based on the analysis of the technological basis of human society by Clark D. Post-Industrial America. A Geographical Perspective. N-Y. - L., 1985. .

The growth in the value of knowledge and information, the transition to the service sector from the production of goods, respectively, the change in the structure of employment - all this could not but have an impact on cities and their economies.

Within the framework of this approach, three stages of city development can be distinguished: pre-industrial, industrial and post-industrial. Differences between cities in each phase are presented in Table 7. This table is based on the following sources:

Calhoun K. Theories of modernization and globalization: who invented them and why [Electronic resource]. [Website] URL: (date of access: 05/30/2013),

Tipps D.C Modernization theory and the comparative study of Societies: a critical perspective // ​​Black, Cyril E. (ed.). Comparative Modernization. New York: Free Press, 1976, 124 p.

Bokarev Yu.P. Modernization theories and economic development [Electronic resource] // Bulletin of the Russian State Humanitarian University No. 3b 2009 [Website] URL: (date of access: 05/30/2013). :

Table 7. Characteristics of cities at different stages of society development

Returning to the development of cities in Latin America and Russia, we can note the following: the early stages indicated are as follows correlated with this table: before the beginning of the era of state capitalism (the beginning of the 1920s), cities were at the pre-industrial stage of their development, which was characterized by agrarian and raw material specialization urban economies. Further, the development of industrial sectors became widespread, which corresponds to the industrial stage. The transition to neoliberalism foreshadowed the formation of a post-industrial society, for which information and high-tech production acquire value.

Speaking about the theory of modernization, it would be correct to mention also the theory of the information society, which has many points of contact with the theory described above: the main emphasis in both theories is placed on technological progress and the value of knowledge. This theory is quite popular because economic potential modern state has become increasingly determined by the development information technologies Masuda Y. The Information Society as Post-Industrial Society. Washington, 1981. P. 26-34.

Adherents of this model single out information cities: most of the economy of such a city is the quaternary sector, the city becomes a decision-making center, information and financial resources are concentrated in it.

However, the existing changes in the structure of the urban economy can hardly be explained by the development of the information sector alone. In order to give a broader understanding of the causes of the current transformations, let us consider another theory - the theory of management. The main aspect of this theory is that the impetus for development comes not from society or technology, but from the individual, which accordingly changes the tasks, goals and management model as a whole. In the case of cities, representatives of this theory distinguish the so-called “corporation cities” / “firm cities” Huxhold W. E. An Introduction to Urban Geographic Information Systems, Oxford University Press, NY, 1991. P. 37-54, which appeared as a result of globalization, administrative decentralization, culture change, the increased importance of the competitive component in the relationship of cities. In such a city, the approach to governance has changed - increasing attention is paid to partnerships between government and the private sector. Huxhold W. E. An Introduction to Urban Geographic Information Systems, Oxford University Press, NY, 1991. P. 37-54.

2.3 Structure of the city's economy

When studying the economy of the city, it is important to pay attention to the study of its structure.

In the general scientific understanding, the structure includes the structure and inner shape organization of systems that act as a unity of stable relationships between its elements, as well as the laws that determine these relationships. The structure of the economy, in turn, is understood as the division of the economy or an economic object into its constituent parts according to certain characteristics and the establishment of relationships between them Raizberg B.A., Lozovsky L.Sh., Starodubtseva B.B. Modern economic dictionary. M., 1996. S. 348. The economic structure also reflects the degree and level of development of the object: the nature of the relationship between its elements shows the stability of the system, the likelihood of crisis and destructive consequences.

It is important to note the fact that the structure cannot be constant; it changes dynamically in accordance with the evolutionary transformations taking place in society. That is why the dynamic analysis of the structure is the most important. The process of ongoing changes can be expressed in the following two terms: destructuring (destruction existing structure) and restructuring (emergence of a new structure, strengthening and restoration of links within the structure).

Due to the fact that the city's economy is a complex system that may contain several structures of different quality, this paper proposes to study the proportions between such elements as:

· Sectors of the economy;

· Sectors of the economy;

· Elements of the market and non-market environment.

Let's consider each option in more detail.

Analysis of the sectoral structure of the economy. This approach has become widespread in Russian literature: the structure of Soviet cities has been studied in detail in view of the relative availability of statistical information. Shokin N. A. theoretical foundations of formation efficient structure National economy. M., 1984, p. 41 In this approach, the city's economy was understood as a set of components localized in the city and connections of all types of socio-economic activity, which are determined by the system of social division of labor and, due to the division of labor, division into sectors of the economy. Dynamics of the sectoral structure of the national economy in large cities of the USSR. L., 1985, p. 53

When studying the economy of the city, it is possible to use the following indicators: the volume of finished output in monetary terms and the number employed workers by industry. However, the first indicator requires accounting for inflation and the use of comparable prices, which in turn is a significant drawback in view of the peculiarities of maintaining municipal statistics in different regions.

Sectoral analysis of the economy. AT recent times more and more studies of structural changes in the economy are carried out in the context of the theories of the post-industrial and information society. Within the framework of this theory, 4 sectors of the economy are distinguished: primary, secondary, tertiary and quaternary.

The sectoral composition of the economy makes it possible to identify the stage of development of the city: depending on which stage of the technological cycle the economic system goes through - pre-industrial, industrial, post-industrial or information - the proportions of each of the 4 sectors of the economy differ. For example, in the transition economies, the share of the service sector is rapidly increasing. This fact is due to the fact that during the period of a decline in production, financial resources, as a rule, are directed to the life support sectors of the population - to a more stable service sector.

However, the use of this method has its drawback: sectoral statistics are practically not kept at the local level. However, a way out of this situation can be found. Thus, A. Fisher proposed a methodology according to which the areas of labor application (sectors of the economy) are combined into 4 sectors Fisher A.G.B. Production, Primary, Secondary, Tertiary // Economic Record. 1939 No. 15 pp. 21-34 (see Fig. 2).

Within the framework of the sectoral approach, it is possible to single out the city-forming industries that provide jobs for the bulk of the active population of the city. At the same time, the demand of enterprises in the city-forming industry and the demand of employees of these enterprises for consumer goods and services ensure the existence of city-serving industries. For example, these industries include retail, household services, housing and communal services, etc. They ensure the normal functioning of the leading city-forming industry.

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Fig.2 Correlation of industries and sectors of the economy

2.4 Evolutionary and revolutionary concepts of reform

As part of the reforms to move to market economy two concepts can be distinguished: evolutionary and revolutionary.

Thus, "shock therapy", as a rule, includes four elements: price liberalization, liberalization of foreign trade and the exchange rate, denationalization and privatization of state-owned enterprises, and the implementation of a non-inflationary macroeconomic policy. the main task states in this approach - maintaining a stable financial system, since without a stable monetary unit the market cannot exist. Therefore, the fight against inflation is the core of the monetarist doctrine. The main instrument of anti-inflationary policy monetarists consider one-time price liberalization and a sharp reduction in government spending Radygin B.L., Makhmudova M.M. Transition economy: Tutorial. Tyumen. 2003. - 178 p. .

The choice of the "shock" option is usually a forced measure. It is associated in most cases with the need to overcome the extremely difficult financial situation inherited from the administrative-command system, as well as the acute shortage of goods caused by the accumulated structural imbalances. .

Proponents of "gradualism" - an evolutionary concept of transition - argue that the four above-mentioned characteristics of "shock therapy" are not necessary for the transformation process. In their opinion, the process should take place gradually, sector by sector, stretching over many years. The evolutionary approach can be characterized by the following facts. First of all, as the example of China and its "two-track" approach showed, price reform can be incomplete and gradual. Secondly, the privatization of state enterprises in the evolutionary approach is not a necessary prerequisite for increasing the efficiency of production at state enterprises Krasnikova E.V. Economy in transition. Tutorial. Moscow: Omega-L. 2005. 296 p., p. 20 .

This theory considers the state to be the engine of market transformations. It is precisely this, guided by a long-term strategic program of reforms, that should replace the command economy with a market one. The gradualist approach presupposes mitigation of the economic and social consequences of the reforms and seeks to avoid a sharp decline in the living standards of the population. .

An important fact in the change in the structure of the economy of cities in the transition countries is that, unlike the developed countries of North America and Western Europe, in which all changes took place in an established institutional environment, the transformation in Russia and Latin American countries is more revolutionary than evolutionary. - Changes were rather sharp and large-scale. However, there are directions of structural transformations in the urban economy, inherent in both types of transition. These directions of change are presented in Table 7.

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Recently, many companies have to think more and more about how they will have to work in the market in the future. After all, one has to take into account the increasing number of large foreign enterprises that come on Russian market with their powerful financial, intellectual and technological resources. This, of course, will entail a change in the balance of power. And to survive Russian manufacturer goods and services will have to compete with world names, and for this it is important to be well prepared for a worthy struggle. Of course, any company knows exactly how it should better approach mobilizing its forces in the current conditions: someone focuses on increasing labor productivity, someone sells their business to a larger partner. Others try to influence all indicators of the enterprise as a whole, carrying out its radical restructuring. This is exactly what the well-known company in the Russian industry market "International printing systems"IPRIS".

“We had a very clear algorithm of actions,” says Alexander Mishchenko, Director of Organizational Development and Human Resources at IPRIS. “First, we had target strategic indicators, to achieve which the main business processes of the company were transformed. was the desire to satisfy the needs of customers to the maximum extent: external or internal.

The reorganization of the structure marked an important stage in the reengineering of the company. Two years ago, IPRIS moved from a linear - functional to a matrix - divisional structure. Headquarters and line units were allocated. Linear - are engaged in the sale of goods and services of the company on the market in various regions of the country. Headquarters - based in St. Petersburg, and are responsible for managing and ensuring the activities of line divisions, including through the development, implementation, implementation control and improvement of basic policies, business processes, procedures, regulations, standards, regulations, regulations, instructions, etc. .d.

“Work on all this is denoted by the term “operational activity” (from the word operation), the basis of which is the described set of elementary actions of employees in a logical sequence and the accompanying flows of information and workflow. Specialists of headquarters units, in addition to processing and analysis various information, mostly occupied operating activities, formalizing the activities of linear divisions in an optimal way. We have removed this function from the management of linear divisions, leaving the collection of market information and direct work with clients in their competence. Exact observance by employees of the main business processes ensures the guaranteed result of the activity of the linear division. As a result, when meeting the planned targets, our employees have the opportunity to earn significantly more than the average in the industry market. This allows us to attract specialists of a sufficiently high level."

In general, the reorganization brought relations with the company's personnel to a new level of development. The creation of an optimally balanced structure of line divisions led to the creation of a new staffing and a new employee incentive system.

"Now it is absolutely clear to us what requirements to impose on people who are involved in the main business processes. Therefore, we quite easily came up with a description of the parameters and qualities of employees presented at each stage of the work process and a specification of individuals in a particular position. This led to the creation of well-defined job descriptions and other documents regulating the activities of employees. Now everyone receives clear work and technological instructions in strict accordance with the implemented business processes. In addition, a training system has been created and is being carried out to adapt the company's employees to updated standards and requirements.

We have already created a number of documents that accompany the main business processes. For example, determining the need for personnel, searching, attracting, selecting, hiring new employees and integrating them into the company are now carried out according to internal company standards. We also have the opportunity to conduct an objective assessment and certification of personnel, outline individual plans for development, career growth, training, etc.”

Another feature of the ongoing restructuring was the formulation of new requirements for internal documents companies. The ideal document should be simple, accessible in presentation and as clear as possible for the performer. If absolutely anyone "from the street" is allowed to read this document and asked to retell it in their own words, then the retelling must exactly correspond to the developer's intent. And this, as you know, is not so easy to do with respect to professional documentation.

Business process reengineering led to the improvement of the logistics model of the company. An optimal inventory management scheme was developed in order to achieve high turnover on much smaller inventory. Thus, significant working capital was released, previously "dead" in warehouse stock. This made it possible to fill the new system of material incentives for employees with finances.

The transformations carried out in IPRIS required a radical change in the corporate information system. New KIS (corporate Information system) made it possible to perform a comprehensive automation of the company's activities, as well as to carry out Information Support making managerial decisions. As a result, the management of the company is greatly facilitated. Previously, management was content with reports that were provided ex post facto by the directors of line divisions. The reliability of these reports was sometimes questioned by the management, but we didn’t have any other source of information from the divisions at that time. "Now, any reports in any context can be received in real time directly in St. Petersburg. The activities of each employee from the director of the linear division to the sales representative are now controlled and You can always view and analyze any transaction in various regions of Russia."The objective information obtained has opened up new opportunities for business analysis and evaluation, which allows you to quickly make accurate management decisions. If we use military terminology, then we used to use the tactics of "carpet bombing", dropped a lot of bombs on the territory, not knowing for sure where the target was - thus, irrationally used limited resources to achieve results. And now we use "point influences" in management practice. Now it is absolutely clear to us what needs to be done to improve the activities of both the enterprise, and the specific unit, and this employee, everything is so clear. In addition, now sales representatives have the opportunity to calculate their salary in the CIS for any day and make efforts to increase it, for example, by taking care of reducing the receivables of customers of fixed segments.

Such innovations gave IPRIS an additional advantage in marketing activities. Previously, the Russian printing market was estimated mainly by extrapolation, based on accurate information about only a relatively small number of customers. Now IPRIS has the opportunity to have a reliable marketing information based on a full description of each actor in the target market.

One of the natural results of the reorganization that began was an increase in sales in the North-Western branch of the company by more than 70% within three months. The number of the company has decreased, costs have decreased, turnover, profit, capitalization, labor productivity of employees have increased.

The reorganization of the company has become a test of professionalism and loyalty for all employees. Not everyone was able to accept the need for change. Over the past two years, the company has parted ways with some managers and specialists, including a number of top managers. They were replaced by professionals who successfully joined the team of innovators. Now they make up a well-coordinated team of like-minded people.

In the limited scope of the article, it is impossible to tell about all the transformations carried out in IPRIS, such as new systems for planning, budgeting, marketing, sales, customer service, management accounting and others. According to Alexander Mishchenko, IPRIS strives to become a high-tech company with streamlined business processes, with a developed corporate culture, competitive not only in Russia, but also in any other markets. These are quite ambitious goals. We went to them for a long time. And, having calculated our capabilities, we decided that we could do it. There is still a lot of work to be done to achieve the set goals, but the first interim results indicate that we are on the right track. So the main news from IPRIS is yet to come!"

Well, we hope that the experience of successful restructuring of IPRIS will inspire many Russian leaders influence and change the situation in their enterprises, and not be afraid to set high goals. After all, as you know, we (as a rule) underestimate our strengths in the long run.

ANALYSIS OF FOREIGN EXPERIENCE IN RESTRUCTURING ENTERPRISES AND ITS USE IN RUSSIAN CONDITIONS

Ryabtsev Alexey Valerievich
ANO VPO "Moscow University for the Humanities"
Postgraduate Student, Department of Economic and Financial Disciplines

ANALYSIS OF FOREIGN EXPERIENCE OF CORPORATE RESTRUCTURING AND ITS USE IN RUSSIAN CONDITIONS

Ryabtsev Alexei Valerevich
ANO VPO "Moscow humanitarian University"
postgraduate student, department of economic and financial disciplines

Bibliographic link to the article:
Ryabtsev A.V. Analysis of foreign experience in the restructuring of enterprises and its use in Russian conditions // Modern scientific research and innovation. 2015. No. 6. Part 4 [Electronic resource]..02.2020).

Interest in foreign experience in implementing a restructuring strategy is primarily due to the fact that it makes it possible to identify the advantages and disadvantages of various approaches to its construction and adapt successful practice to Russian realities.

So in foreign practice The main type of restructuring carried out can be called the restructuring of property relations, which arose as a result of market reforms in the states of Central and Eastern Europe. During this period, a decrease in production, a decrease in employment and living standards of the population, an increase in unemployment and inflation were characteristic of all countries.

A common feature of the restructuring of property relations in post-socialist states is the reduction in the share of the public sector and the search for an investor to upgrade obsolete industries in a short time.

If we turn to the progressive experience of other countries, then it is necessary to note examples of successful restructuring of the city-forming enterprises of the United States and East Germany, since in the process of privatization the enterprises of these countries were able to attract real money from large foreign investors. To the main factors effective implementation restructuring in Western countries include a well-developed stock market and a strong financial support from the side of the state. Properly organized corporate training can be a real help in restructuring efforts.

In addition, the experience of Germany shows the positive role that the choice of well-thought-out solutions can play to overcome the challenges of industry and consumer care concepts in an increasingly demanding market. In some cases, restructuring can be considered as one of the aspects strategic planning for the enterprise.

With regard to the experience and policies of individual countries in transition, it should be noted that in Poland privatization is now increasingly seen as an instrument of restructuring, with the emphasis being placed on improving competitiveness and creating favorable conditions for innovation activities. In most cases, restructuring takes place in an environment where the economy has a high rate of new firms entering the market. However, in sensitive industries such as coal mining, defense industries and the steel industry, special policies are required.

Analyzing the experience of East Germany, it should be noted that the privatization of enterprises was carried out before the reorganization and modernization. The privatization process was controlled by the state through a specially created institution - the state trust company.

Enterprises in which funds were invested by external investors were reorganized into joint-stock companies, and enterprises controlled by the state were reorganized into companies with limited liability. To speed up the privatization process, many large enterprises were "divided" into several parts.

The successful restructuring in the US was driven by a strong financial market, where the most profitable companies placed their shares. Low-profit and unprofitable organizations were given the opportunity to sell the assets of inefficient divisions, which made it possible to increase the competitiveness of the main production. Competitive subdivisions (shops) continued to function and make a profit.

The experience of Romania and other countries of Central and Eastern Europe confirmed the key importance for the restructuring of the following three factors: processes, information and the human factor. Thus, business processes should be simple and clear to guide the restructuring, providing as much information as possible on costs, markets, technology and other relevant factors.

Thus, foreign experience in implementing the restructuring strategy is extensive and depends on macroeconomic processes and the current socio-economic and political situation in the country. So, common feature restructuring of property relations in the post-socialist states is to reduce the share of the public sector and the search for an investor to upgrade obsolete industries in a short time. The experience of implementing an enterprise restructuring strategy in the post-Soviet space, in particular Ukraine and Belarus, is especially interesting due to the similarity of the problems that push engineering enterprises to implement large-scale transformations as part of the restructuring strategy.

As a result of the analysis, it can be noted that all the considered countries have their own characteristics of the restructuring strategy. However, the need to improve the efficiency of such enterprises is common.

The purpose of this work is to reveal the concept of restructuring, to characterize the reasons for its implementation, and also to present the main problems of this process.
The main task of business restructuring is to create a business system that, on the one hand, will meet the long-term objectives of the owners, and, on the other hand, will develop in accordance with the requirements of the environment. Restructuring implies both the restructuring of a business in order to focus on the most profitable directions activities and reorganization of the company's management system. Let's consider the basic principles of restructuring, the experience of the direct investment fund in its implementation, as well as the features of the allocation of non-core assets.

Introduction…………………………………………………………….2
1. The concept of restructuring……………………………………….3
2. Goals and objectives, forms and types of restructuring……………6
3. A set of works on restructuring……………………….12
4. Main risks during restructuring……….14
5. Choice of legal restructuring option………….17
6. Domestic experience restructuring……………………..19
Conclusion………………………………………………………..21
References………………………………………………….23

The work contains 1 file

Introduction………………………………………………………… ….2

1. The concept of restructuring……………………………………… .3

2. Goals and objectives, forms and types of restructuring……………6

3. A set of works on restructuring……………………….12

4. Main risks during restructuring……….14

5. Choice of legal restructuring option………….17

6. Domestic experience of restructuring……………………..19

Conclusion…………………………………………………………..21

Bibliography………………………………………………. 23

Introduction

Restructuring is changing the structure of something. The key goal of its implementation is to increase the competitiveness of the enterprise and increase the value of the business. The restructuring of the company's activities is a large-scale event that requires significant time, financial and human resources.

The emergence of many "diseases" in enterprises makes the process of restructuring more relevant than ever.

The purpose of this work is to reveal the concept of restructuring, to characterize the reasons for its implementation, and also to present the main problems of this process.

The main task of business restructuring is to create a business system that, on the one hand, will meet the long-term objectives of the owners, and, on the other hand, will develop in accordance with the requirements of the environment. Restructuring implies both a restructuring of the business in order to concentrate on the most profitable areas of activity, and a reorganization of the company's management system. Let's consider the basic principles of restructuring, the experience of the direct investment fund in its implementation, as well as the features of the allocation of non-core assets.

1. The concept of restructuring

Restructuring is changing the structure of something. In the case of debt restructuring, this may be a change in the terms and conditions of repayment of obligations; in the event of an enterprise reorganization, its foreign policy is reformed, expressed in a model of competitive behavior in the market, and the internal environment, i.e. structures and management systems. Let us dwell in more detail on the restructuring of enterprises.

The main reason for the restructuring of an enterprise is usually the low efficiency of the company, caused by the inconsistency of the business with changing market requirements. The result of this situation is unsatisfactory financial performance, lack of working capital, high level of receivables and payables.

The main "diseases" of enterprises in need of restructuring:

• too high concentration of powers and responsibilities of top management, which leads to demotivation of middle managers;
• a non-transparent accounting system that does not allow identifying successful and frankly inefficient structural business units and services;
• too cumbersome organizational structure that does not provide dynamism in business development;
• redundancy in the structure of the property complex, often inherited from a socialist enterprise.

Especially often, such problems arise in state-owned enterprises, which over the past ten years have reduced the volume of business, sometimes by dozens of times, while maintaining the structure and management system unchanged. For example, one foreign trade association after the abolition of the state monopoly on foreign trade was able to maintain only one eightieth of the former volume of business. However, the structure of the administrative apparatus and the composition of the property complex remained the same. The result is unsatisfactory financial performance against the backdrop of low commercial efficiency, poor manageability, and lack of staff motivation. After the change of leadership, it was decided to start restructuring. At the moment, the transformation has been going on for about six months, however, given the complex of accumulated problems, we can say that the company is only at the beginning of the path to renewal.

The need for restructuring may also arise in quite successful companies. Thus, any modification to the scale of the business or market conditions requires an adequate change in the management system. And forward-thinking leaders are transforming without waiting for business performance to decline.

Thus, one regional retail association, having absorbed its closest competitor, faced the traditional “growth problem”. At the beginning of the transformation, the company was a loosely structured conglomerate of 17 stores selling both food and non-food products. It was not possible to manage stores using the old methods, “internal cannibalism” flourished, when stores of the same network pulled customers from each other, creating excessive competition. The company had high potential and fairly stable financial position However, a possible change in market conditions due to the entry of new “players” into the market in a short time could lead to a drop in turnover and a loss of market share. Without waiting for a reduction in the volume of trade, the company's management decided to restructure the business on the basis of a new marketing strategy, the purpose of which was to maximize the needs of all social strata of the city in food and non-food products.

Based on the results of marketing research, it was decided to transform the existing conglomerate of stores into a retail chain with several brands, each of which is focused on meeting the needs of certain social groups:

• a network of food and non-food discount stores for the poorest segments of the population;
• a network of supermarkets and specialized shops for industrial goods for local representatives of the "middle class";
• store - a salon of clothes and accessories for the business elite.

It was proposed to get rid of the two least liquid objects (shops) by selling or re-equipping them into production premises.

In accordance with the adopted market strategy, the organizational structure and the enterprise management system, the logistics system have changed, and the marketing service has been built. Within two years after the transformation, the company managed to achieve an increase in turnover by an average of 40-45% per year. The increase in market share over two years was 10% for food products and 7% for non-food products. A 5% cost reduction was achieved; significantly improved the management of the company.

2. Goals and objectives, forms and types of restructuring

The key goal of the restructuring is to increase the competitiveness of the enterprise and increase the value of the business. However, since restructuring is a complex process that affects all aspects of the company's activities, a number of particular tasks arise during its implementation:

• optimization of organizational and functional structures and management systems of the company in accordance with the strategic development goals;
• reengineering of business processes and, in particular, commercial and financial processes in order to improve performance;
• rational use of company resources;
• optimization of the quantitative and qualitative composition of personnel.

The restructuring of the enterprise is directed and restructuring to solve two main problems: firstly, to ensure the survival of the enterprise, and secondly, to restore the competitiveness of the enterprise in the market.

In accordance with these tasks and consider the interrelated forms and types of restructuring of enterprises and organizations. On operational restructuring of an enterprise (organization), two main problems are solved: ensuring liquidity and a significant improvement in the results of its (her) activities. The period of operational restructuring lasts approximately 3-4 months.

Operational changes in the enterprise require a set of measures, of which, as a rule, the following are specifically distinguished: change in individual components organizational structure enterprises;

Creation and development of new structural subdivisions;

Operational reduction of receivables;

Reducing the value of working capital through the identification and sale (liquidation) of excess stocks (including stocks of auxiliary materials);

Refusal (sale of a share) from equity participation in other enterprises and organizations, if the previous analysis confirmed the insufficient economic efficiency of the latter;

Reducing the volume of fixed assets through the sale (liquidation) of excess equipment, vehicles, etc.;

Analytical assessment and termination of inefficient investments, except for those vital for the enterprise and justified from the standpoint of market development.

Consequently, the set of measures for operational restructuring primarily contains measures to reduce all types of costs (without obtaining any significant investments) and a rapid increase in sales volume and capital turnover. However, if the transformation process is stopped after the completion of operational restructuring, the enterprise will soon inevitably find itself in a crisis again.

Strategic restructuring of an enterprise (organization) ensures its (her) long-term competitiveness. To achieve such competitiveness, it is necessary to determine the strategic goal of the enterprise, develop a strategic development concept, as well as directions and tools for achieving this goal.

So, the restructuring of the enterprise is preceded by an assessment of its condition. However, both analysis and reform can be carried out if there is a comprehensively justified goal of restructuring, which can be formulated (assuming as a whole) as follows: the company's products must correspond to the current effective demand.

An enterprise that satisfies this requirement, on the one hand, retains centralized control in the most important areas of activity, and on the other hand, is reborn through an active scientific, technical and market strategy within each product group.

As a rule, the crisis state of an enterprise is due not to one, but to many reasons, there are more of them, which is a slower reaction of business entities to a change in the type of economic system.

The organizational and legal type of restructuring is characterized by the processes of commercialization, corporatization, changes in the organizational structure and the owner of state-owned enterprises.

Technical restructuring is associated with ensuring such a state of the enterprise, in which it reaches the appropriate level of production potential, technology, know-how, managerial skills, staff qualifications, efficient supply and logistics systems, i.e. everything that gives the company the opportunity to enter the market with efficient and competitive products.

Economic viability is achieved when the company's products, its capital and current expenditures, the level of sales and pricing policy provide such a level of economic profitability of the enterprise that corresponds to modern business conditions.

After achieving financial viability, the enterprise will receive such a structure of the company's balance sheet, in which liquidity and solvency indicators meet the requirements of the market, and also get rid of problems with paying loans, interest on them or with repaying other debt obligations, etc.

Management restructuring is associated with the training and retraining of personnel with a focus on the competitive functioning of the enterprise, changing its organizational structure, management, technological, innovation and marketing policies.

The nature and extent of the necessary restructuring depends on the nature of the enterprise's problems. Sometimes an enterprise needs only partial or so-called limited restructuring to restore economic and technical viability. At the same time, the enterprise sets for itself certain standards (landmarks), which are the ultimate goal of implementing the corresponding type of reform. Such benchmarks can be the level of financial leverage (the ratio of borrowed and own funds), the size of the working capital of the enterprise, as well as the debt coverage ratio.

Foreign experience of restructuring

In the early 1990s, when the process of transition to a market economy began in the countries of Eastern Europe, many enterprises found themselves in a difficult situation. Demand for their products from the countries of the former socialist bloc fell sharply, and entry into new Western markets was difficult due to low quality standards. Lowered customs barriers also played an important role - the sudden flood of imported goods put Eastern European producers in the face of fierce competition already in their local markets.

As a result of these processes, most of the enterprises in Eastern Europe have become unprofitable. The selling price of products was less than the cost of their production. There were no funds to pay off suppliers and creditors. The size of the debts reached colossal proportions, which instantly hit the state budget and the banking system.

The only way for enterprises to survive in the new difficult conditions was to completely restructure production, replacing worn-out equipment, streamlining financial flows and establishing a system for marketing goods. Many enterprises had to completely or partially reorient themselves to the production of other products, a significant number of plants and factories were forced to declare themselves bankrupt.

It was then, in the early 90s, that the not-so-understandable word restructuring suddenly appeared in Eastern Europe and immediately firmly entered the lexicon.

It should be noted that due to the correct government policy in most countries of Eastern Europe in the early 90s, the main necessary conditions for restructuring were created:

1. Privatization has introduced significant changes in the structure of ownership and management of enterprises.

2. The required legislative base has been developed.

3. A competent tax policy has been carried out.

Privatization had a huge impact on the success of the restructuring. Average productivity growth in privatized companies between 1992 and 1995 was 7.2% per annum, compared with -0.3% in still state-owned companies. In countries where the scale of privatization was insignificant (Bulgaria and Romania), the average labor productivity growth was significantly lower (-1.4% and -0.5% respectively) .

It should be noted that a comparative analysis of production efficiency growth indicators in countries that carried out mass privatization (the Czech Republic, Poland) and in countries where privatization was selective (Romania, Hungary) gave exactly the same figures. Consequently, the effectiveness of restructuring does not depend on the mass nature of the privatization company in the country.

The main argument of the critics of mass privatization was that rapid large-scale privatization would lead to the dispersal of property among "small" investors who did not have sufficient experience, capital, and even an incentive to restructure. A positive result, in their opinion, could only be achieved by selling companies to large investors (often foreign ones).

In practice, however, this dispersion did not work out - the ownership structure became concentrated, the main owners are large investment and voucher funds, as well as successful holding companies. In the Czech Republic, for example, by 1996 more than 65% of privatized enterprises were in the hands of the five largest funds, in Slovakia - 73%. Subsequently, most of the investment funds were transformed into management or holding companies actively involved in the management of enterprises.

It is noteworthy that the main investment funds and management companies belonged to large regional banks. This manifested a certain dual function of banks in carrying out restructuring: on the one hand (through controlled funds and companies) they acted as owners of enterprises, on the other, as creditors. By influencing decision-making, they forced borrowers to take loans at high interest rates. However, given this ownership structure, the banks were directly interested in the successful restructuring of enterprises. Moreover, the direct participation of funds in management guaranteed full transparency of relations and control.

Other interesting fact was that the emergence of experienced Western managers in privatized companies did not take place to the extent that was expected. Despite the difficulty of obtaining information about the top management of enterprises, it can be argued with a high degree of probability that in all countries of Eastern Europe, except for Hungary, the bulk of enterprises fell under the control of local managers. Almost all small and medium-sized enterprises were bought out by acting managers and labor collectives (in Poland there are about 2,500 small and medium-sized enterprises).

It was previously mentioned that restructuring involves many changes in the functioning of the firm. In order to assess the effectiveness of individual "steps", a survey was conducted among managers of enterprises in Eastern Europe that have undergone restructuring. Most of these enterprises in the early 90s were unprofitable.

As a result of the survey, the following most effective "steps" or elements of restructuring were identified:

a) downsizing. On average in Eastern Europe, between 1991 and 1996, the number of employees in privatized enterprises decreased by 46%, which significantly improved financial flows and made it possible to use internal reserves for investment;

b) stable wage. The average real wage over the same period remained practically the same (although there were significant deviations from firm to firm). Among other positive results, this allowed companies to retain the necessary qualified personnel;

c) getting rid of unnecessary assets (social and cultural facilities, etc.). Many enterprises handed over to local administrations such facilities as rest homes, kindergartens, cafeterias, etc., which were "dead weight" on their balance sheets. Also, surplus machinery and equipment, surplus inventories were sold;

d) improving the quality and updating the range of products. In order to compete with Western products, local manufacturers were forced to change their product range, introduce strict high quality standards and obtain Western-style certificates;

e) entering new Western markets. In 1991, less than 9% of the output of Eastern European enterprises was exported to the West. By 1996, this figure had risen to 47%.

Another important element of restructuring should be the development of the so-called "financial discipline" among enterprises. A company will be strongly motivated to restructure if neither the government nor commercial banks finance (or write off) its debts. Strict financial discipline at privatized enterprises forces them to carry out a competent restructuring and achieve at least a small profitability of production. State intervention (through subsidies, benefits, orders, etc.) or banks (debt deferrals) have a negative impact on the restructuring process.

A thorough analysis of the processes of restructuring of enterprises in Eastern Europe allows us to draw conclusions about the mistakes and achievements of countries with economies in transition in this area, to use this experience in Russian enterprises conducting restructuring.

The main problems of enterprises and ways to solve them with the help of restructuring can be summarized in a kind of final table summarizing the Eastern European experience (see Table 1.2).

Table 1.2

Problems of enterprises and ways to solve them with the help of restructuring

We know the experience of most American corporations, which, unable to withstand competition from Japanese enterprises, were in the deepest crisis. Since then, most of them have been able to rebuild and regain their competitiveness. One of the techniques they used was reengineering. This experience and these management methods are of great importance for Russia today.

Thus, we have considered theoretical basis restructuring, got acquainted with all the tools for the restructuring process, which we will use in the subsequent resolution of the tasks and problems, their features, complexity and diversity. During the analysis, we considered such important theoretical aspects, as: the essence of restructuring, its directions and types, the technique of its implementation. We also got acquainted with the features of the cost approach to restructuring and foreign experience in restructuring.