diversification of the economy in a general sense is a strategy designed to reduce the risk due to the addition of assets, goods or services, as well as customers or markets to the already formed portfolio.The concept is found in the roof of the provisions of Judaism, the Talmud.The above formula is a division of assets into three parts.One piece - it's a business, including the purchase or sale of goods, the second part - liquid assets, such as gold, the third part - funds concentrated in real estate.The reconstruction can be called literate allocation of valuable resources with the prospect that the loss of one segment, making a profit, did not affect the overall situation.This definition is ideal for both the state level and for investment, agriculture, any field of activity.
narrow interpretation of diversification
Economic diversification is divided into the following areas:
- Bank.It implies a reallocation of loan capital between a significant number of customers.In some states there is a restriction on the provision of loans.The financial institution can not provide the loan in one hand, if it exceeds 10% of the capital of the bank.
- investment.It provides for the inclusion in the list of additional types of securities or similar, but differ in issuers in industries or companies.
- production.This expansion of the range of products in the development of new technologies for the production and release.
- Business diversification is defined as the conquest of new markets, development of new fields of activity.
- Agriculture.Defined as the expansion: the active development and livestock and vegetation.
- Conglomerate.This extension of the list of services and goods within an enterprise.The list of products can have no resemblance to the existing nomenclature.
- risks.This use of a wide range of tools for earnings.At the level of investment is to buy not only shares but also bonds.At the level of the business - the development of a new policy at the level of the economy - is the elimination of dependence on the world market prices due to the full meet the needs of the population by the state.
bit of history
Market economy gradually formed.Each stage of development has its own individual characteristics, especially when you consider the level of specialization and diversification in terms of antagonistic forms of construction of the production industry.The concept of "economic diversification" manifested as the dominant economic category in the 50 years of the 20th century.During this period, the efficiency of production in virtually all countries has fallen significantly as a result of the exhaustion of domestic sources.It began to actively battle between the states of the world market.The transformation of production became necessary as a result of striking the prerequisites to a slowdown in economic growth and development under the influence of scientific and technological progress.Against the background of the fact that the purchase of innovative technology at the time and the introduction of the activities of large-scale production of new technologies have failed, diversification has taken place the most common form of concentration of capital.Businesses and organizations that have tried the revenues to expand their reach and increase the number of sources of income, have not only a high level of competitiveness and success.
strategy and its role at the enterprise level
concentration solely on one direction on the part of management determines to a wide range of business benefits: organization, management and strategy.The fall of profitability on the capital that has been invested in production makes it necessary to use the strategy of redistribution of resources.Diversification of the company or companies, acting as a tool for the elimination of disparities reproduction and logical distribution of resources plays an important role as coordinator of the direction of restructuring the economy as a whole, thereby establishing a corporation to a variety of tasks and goals.Redistribution is related to a modification of the most essential elements of the activity.This is the finished product, and the industry and market, and the place occupied by the company in a certain area.In the process of actively developing the macro performs a kind of basis for reaching an entirely new level of flexibility in the market, both domestic and foreign.The decision over whether to apply the strategy of diversification or not made based on predicting the future.The true concept of the process due to the active development of the company, to the conquest of new spheres of its impact.If the company continues to accumulate capital, the process of redistribution is not acting as a major strategic goal.
diversification in terms of the economy refers to the restructuring, which is aimed at modernizing and active development of a wide variety of industries.Highly relevant for the restructuring of Russia, the development of which the most significant act out the role of all three sectors:
As for tourism, the agricultural segment, consumer goods, services, these underdeveloped areas.The critical percentage of goods-oriented consumption is a consequence of the imbalance in the economic sector.This leads to the fact that Russia is strongly exposed to volatility in terms of inflation.High inflation affects the formation of the high interest rates on loans.So, mortgages and other types of financing individuals and legal entities, are simply not available to the general public is sufficient.The structure of the economy, which is now typical for the country is nothing but a hindrance to development.For the overall development of the state it is very important to stimulate the development of a completely unrelated industries, especially automotive, tourism, agriculture and food production.
advantages of restructuring
Economic diversification has many advantages.The main of them - a state of complete independence from other economic sectors.If you have difficulties in one market, the decline of the entire economy of the state is not going to happen.The disadvantages of the process include the need to take into account the many differences between the markets and their specific service between the subtleties of the issue of different types of products.Due to the fact that the Russian government is not expanding its range of products, not new kinds and types of production did not alter the products, that is, did not make the modernization of production, the economy is now in full decline.The cause of the decline can be called statistical state investment, which had previously been sent to the oil and gas industry.Due to the fall in oil prices, with the imposition of sanctions by the EU, Russia's budget is not replenished in the planned volume and domestic production can not meet the needs of the country.That is why at this stage of the diversification of the Russian economy is essential not only for prosperity but also to be able to survive the crisis.While the process is not activated, the world's elite has a chance to affect the country by changing world prices, in particular for fuel.
Who needs to diversify its economy?
objectives of diversification are ideal for those states, development and prosperity are closely linked to the export of minerals, with the sale of natural resources.Russia - this is one of the countries that needs a complete restructuring of the existing economy in line with a more efficient model.Countries such as Chile, Malaysia, Indonesia, and many others, may make a worthy example of a successful modernization.It is worth paying attention to the multi-level procedure when considering that a diversification of the economy.Determination leads to the fact that this is a daunting task for most countries of the world, which has for decades successfully survive due to the extraction and sale of mineral resources.Despite vigorous statements of politicians and analysts in the vast majority of situations, everything remains at the level of conversation.
work for the future
The main feature of the restructuring process of the economy lies in the fact that a wide range of activities carried out today and the results achieved with substantial temporary respite.In other words, diversification, examples of which are very difficult to find in history, it is essentially the work of the future.The result of the measures in this time will give off a long period of time.Actively investing in different sectors of activities of the state, including in the sphere of services in the tourism industry, in production, it gives a good boost for active private business prosperity.Actively build connections between industries, there will be preconditions for the formation of an active increase in trade in the international market.This all lead to improved standards of living, an increase in demand and the formation of proposals.The increase in domestic trade in the country in tandem with the strengthening of the material flow raise the overall economic performance of the state.
Subtleties of the Russian economy and the urgency of diversification
development of the state with huge natural resources, in particular Russia, is characteristic features.In those situations, the dominant energy production rate is significantly lower than the population growth.Over time, the level of profitability in relation to per capita gradually falls.It is worth noting that the mining industry is not able to provide a sufficiently large number of jobs.It's not only leads to the formation of a social threat but also negatively affects quality of life.The risk of a crisis is a result of strong growth in the unemployment rate.Russia, being kupno exporter of natural resources and is almost entirely dependent on international market prices.Despite the use of agreements between countries on an acceptable level of prices for raw materials, there is the risk of abrupt changes in pricing policy.The risk was justified in the situation that prevailed in 2015.The fall in oil prices has led the economy of the Russian state in decline.The concept of diversification involves competent redistribution of income from the primary industries among the other activities of the state, otherwise you may experience the "Dutch disease."
that will save Russia?
peculiar to Russia large amounts of resource extraction.The main problem is not only that the revenue from the industry goes into the pockets of a privileged part of the population.Difficulties in the development of the country are related to the direct connection between the amount of production resources and the level of corruption.The most basic version of a large capital - is to assign the income from the energy sector.When the formation of the dominant part of the budget at the expense of tax extractive industry companies, the Russian leadership does not feel a great responsibility to the other activities because of their non-essential contribution to the economy.The situation dictates the urgency of restructuring.Diversification of business, industry, production of all sectors of the country will be the answer to the dictates of the world market.The manifestation of political will and substantial efforts are able to change the situation radically.
technical aspects of restructuring
Almost all kinds of diversification of today will be relevant for Russia.This is due to several factors:
- Russia has seen a sharp decline in the potential for business development.
- opportunities for activity in a variety of industries, though there are, but they do not develop.
- potential of the mining sector can be successfully re-allocated between the other segments.
- presence of a large amount of resources in the mining area.
For example, the diversification of the rural economy will allow the state to not feel, depending on the supply of products to the domestic market.There are no restrictions on imports from the EU countries will not be able to strike at the economy.Despite vigorous actions aimed at modernizing the economy, with a detailed plan, including, at the moment the authorities can not take any of the actual solutions.The restructuring is not possible without the active development of the internal market and the availability of consumer solvency.For the system to work, you need to initially raise the overall standard of living in the country: an increase in wages, social benefits, providing the population with jobs.Modernization should start it within the state, and not outside.