The work was implemented in the Representation of the Academy of Economic Sciences and Business Activity of Russia in the Ukraine,the Department of World Economy and International Relations AES&E of Russia and in the Insti­tute of Economical and Social and Cultural Researches.

 (DESMC NAS of the Ukraine)

 

Official Reviewers:

                                  USHKALOV V.E.  - Doctor of Commerce

                                  KOZMIRIDI K.H. - Doctor of Commerce,Corresponding Member of the Ukrainian

                                                                     Academy of Technology 

                                  DENISOV G.M..  -    Doctor of Commerce Corresponding Member Academy ЕS& E

                                                                      of Russia

 

Leading Organic zation:               Institute of Economic,Social and Cultural Researches (DESMC Academy

                                                         Science of the Ukraine).

Scientific Consultant:                   Vasiljev Alexander Valer^yevich,Academici­an AES&E of Russia, Doctor

                                                                                                                   of Economic Sciences,

                                                         Vasiljev Valery Alexandrovich,Doctor of Commerce AES&E of Russia,

                                                                                                                Candidate of Economic Sciences,

The discussion will take place on  18.10.1996 at 14 at a scientific seminar of the Representation of the Academy of Economic Sciences and Business Activity of Russia in the Ukraine and of Academic Board of the Institu­te of Economic, Social and Cultural Researches (DESMC NAS of the Ukraine) resided: Mariupol city, 10,Michman Pavlov Square.

              It is possible to acquaint with the Thesis in the scientific presentation form in the premises of Mariupol Branch of the Institute of Economic and Legal Researches NAS of the Ukraine.  

The Thesis in the Scientific Presentation Form was sent on 4.10.1996

Academic Secretary of the Institute of Economic, Social and Cultural Researches

                                                                                                                                                     M.G.Tuzovskaya.

 

1. General Description of the Work.

 

 

       The process of adaptaion of managing systems of C.I.S count­ries to those of the West Europe and America is being implemen­ted in unchanging conditions of geopolitical opposition that causes its wavering character on the brink of social and econo­mic unstability. The situation is so complicated that the ques­tion discussed is rather about the survival and preservation of a production infrastructure at the lowest level than about preservation of competition ability or,moreover, its rise.

       But the subject of our research is the industrywMarfla is con­demned to cutting down in case of loss of competitiveness.

      Michael Porter shares the existing in the developed count­ries opinion that "in many countries the industrial branches, strongly controlled by the State, are not a success in the in­ternational market in major cases "(Porter M. International Competition: Russ .Transl. /Edited by V.D.Shchtinin -M.Intern.Rel.,1993-p.22). Is it possible to reduce the State control of marine industry ? The experience of a transfer into a new system of the relationship of the Azov Shipping Company with the State (concluded a leasehold agree--ment) justifies a real possibility to make positive steps even under conditions of so called "global economy reforming in the Ukraine and Russian Federation ".

       Hence, we agree with the opinion of the West economic school that "the pledge of success in the world market is aim, protectionism,export motivation and grant subsidies" . Sea transport is the industry directly connected with the international trade, and the latter, in the opinion of R.Campbell McOnnell and Stanly L.Brew, is more subjected to political control". All that brings of a number additional factors, not definite and increasing common uncertainty in making forecasts of the outcome of production and managing activity of the shipping companies in the period of stagnation and sluggishness of economic growth of the developed countries.

        The fact is that for the time being in the Ukraine the con­ditions not allowing the managing subjects to maintain and re­plenish their fixed assets are created and that pushes managers to seek actively the sources of investments. After all, G.Fisher pointed out that "credit influences: prices like cash (the increase of credit causes rise of prices under all other equal conditions) (Fisher I.Purchasing Power of Money,its determination in re- ' lashiohship: to (credit, per cent and crisis -M.Fin, Ids U.S.S.R. -p.l78). Thus, what kind of care of the competitionmamtenance can be discussed when such economic policy leads to tariff increase ? Probably, such decisions are taken when there is no other way out of such an economic situation that drives at rise of inflati­on pressure, unreasonable increase of debts of enterprises and organizations, and as a result of that to sharp cut down of business activity in all spheres of economic activity.

       Today in economic literature there is no any psycological ana­lysis of a businessman debtor's psychology,probably, because when being a debtor ( a desparate debtor) a leader is practical­ly not able for efficient business activity. And it is impossible the requirements of reproduction process: to:be substituted with indieescjoif securities of the funds market forcing managing sub­jects to black-market actions. But, even the elimination of contradictions of managing decisions will not automatically make all enterprises profitable and renew fleet fixed assets. The problem of finding a reliable investor is and will continue to be on the agenda of the Ukraine and of Russian! Federation shipping companies, as well as more general problem - maintenance of competitiveness of sea transport.

       Who could be the most reliable investor ? Where to get money for maintenance of competitiveness?

       In this Thesis we aimed to answer all theese questions. Having made the analysis of native and world experience of fighting for competition advantages of the leading companies, we are proposing our own ways of settlement of theese urgent problems which are faced not only by the sea transport,but Btgsfore all subjects of economic activity during transition to market methods of production regulations.

       In this aspect the work is wider than traditional mari­time theme and, we hope, will attract the attention of profes­sionals of all branches of national economy striving for sur­vival in international competition.

 

       The aim and task of this research are as follows: having a new methodological approach to appraisal of objective­ly necessary labour expenditure,to work out methods of mainte­nance of competition ability in sea transport in conditions of aggravation of international competition and complication of reproduction process, on the whole.

       The formulated aim requires consecutive decision of the following tasks:

        l.To make a theoratical and methodological analysis of the main factors determining the success of one or another kind of transport in international competition in the light of mo­dern achievements of economic view (I.Porter, Campbell McOnnell, Stanly L.Brew, V.Leontyev, B.Tereshchenko, N.Chumachenko).

       2.To give grounds for the priority of main parameters choise characterizing the capacity for work and technical level of fixed assets whilst calculating forecasting competitiveness or production and service.

      З.То choose and give grounds for cycle regularity of inter repair service of the ships of all types operated by the leasehold Azov Shipping Company.

      4.To elaborate schedules of inter repair service for the whole fleet of the leasehold Azov Shipping Company.

      5.To solve the problem of investing the fleet renewal and maintenance of its competitive power by means of out of the money-market sources.

     6.Coming from the analysis of the world practice,to give grounds for the possibility of the performance of schedules of accelerated amortization of the sea transport.

      7.To prove the possibility to preserve and improve the competitive power of the sea transport even in the conditions of social and economic unstability.

    

      Theoratical and Methodological principles of the Thesis are the works of ppdlitical and economic school of (F.Kene, A.Smith, D.Ricardo, J.Mill,etc.), Russian Economic school (M.Volskiy,M.Tugan-Baranovsky,S.Vitte,N.Stolyarov, N.Kondratyev,V.Nemchinov,A.Chayanov and others),as well as the works of foreign economists (N.Samuelson, J.Clerk, M.Porter, Shumpeter,A.Marshall,etc.) investigating the question of cal­culation of labour expenditure and the outcome of economic activity, competition ability of production,competition advan­tages of industries and productions on an international scale, as well as the question of price origin, functioning on labour and money markets.

      When elaborating methodics of competition ability, maintenance and rise in maritime industry, practically the analysis of the main factor determining the  success in the international competiti­on was made having comprised modern achievements of economic view and the concept of appraisal of objectively necessary labour expenditure, elaborated by Mariupol Economic School (Doctor of Commerce AES&E of Russia,Cand.Science Vasiljev V.A. and his disciples), as well as the works of national professionals in macroeconomics ( Acad. NAS of the Ukraine Chumachenko N.G., Lukinov I.I., Alymov A.N., Prof.Kushlin V.I., Prof. Lebedev V.G. Acad. ANS Shul'ga V.A. and others ) and international eco­nomic relations (Acad. AES&E of Russia Kirichenko V.N., Shenayev V., Dolgov S.I.? Shmelev P.L. and others).

        The subject of the present research is production relati forming in the sea transport during social and economic unsta-' bility and aggravating of international competition.

        The Black and Azov Shipping Companies and all types of the ships of the Azov Shipping Company (passenger,dry cargo vessels of general purpose, timber carriers, bulk carriers for general cargo , oil tankers, fishing fleet anf tugs) are taken as an object of study.

 

 

      On the basis of theoratical and methodological analysis of reproduction processes in the sea transport and proceeding from the concept of conformity labour costs with objectively necessary labour expenditure actually new methodological ap­proach to competition maintenace and its development in sea transport was worked out.

       This approach discovers specific features of renewal of the basic means of the fleet in conditions of actual desinte-gration of management of the sea transport arid foresees orien­tation on own power by increasing the efficiency of economic activity.

      The scientific novelty of the system of competition maintenace is contained in the following:

     - motivation of the expediancy of use of the theory of factors (M.Porter) for finding the way of maintenance and development of fleet competition ability;

     - exposure of the danger of slowing down the develop­ment of competitive advantages and economic stagnation on the stage of factors;

      - appraisal of priority importance of science and technology in the system of factors, determining the success in international competition;

       -exposure of perspectives of implementaion of mo­tivated restructures of management and distribution of res­ponsibilities on the sea transport ( obtaining sharestock, transformation to ieWsearelations and so on );

       - widening of conception of social infrastructure possibilities for maintenance of the whole staff stability and improvement its professional skills standard to preserve the position in the world market ;

       - actually new approach to selection of perspective sources of investments into the sea transport;

       - elaboration of methodics and calculation of the main parameters characterizing capacity of work and technical level of fixed assets;

      - substantiation and calculation of periodicity of cycles of inter repair service for ships of all types operated by the leasehold Azov Shipping Company;

      - working out methodics of drawing up schedules of inter repair service of the fleet of the Ukraine and Russian Federation;

     - actually proved possibility to maintain and rise competition ability of the sea transport even in conditions of social and economic unstability.

 

 

      The main forms of the approval of scientific results are: statements of the results of implemented agreement researches,re­ports, pre-prints and monographs reviewed by departments,sections and Councils of Science of the Institites of Economic and Legal Research of the Ukraine, the Institute of Economic, Social and Cultural Research (Donetsk Foundation of Culture and DESMC NAS of the Ukraine).

      The research results were put into practice in the leasehold Azov Shipping Company and can give a real economic o\i effect if (adopted by all shipping companies of the Ukraine and Russian Federation either.

      The basic results of the research work were report-ed on the First stage of International Scientific and Coordinating Meeting "Sea Managing Complex and Ecological System of the Azov Sea (21-23 rd June,1995 in Mariupol ) and the Scientific and Practical Conference "Social and Economic Problems of port and industrial cities of Priazovye" ( in Mariupol, 21-23 rd June,1995 ) and were reflected in the' recommendations adopted.

      The analysis of the perspectives of the main problems settlement of the sea transport practically on the principles of self-financing opens principally new opportunities for settlement of a wide complex of regional socio-economic and ecological problems. That practically creates conditions for economy rise of the Ukraine and Russian Federation backed up by port cities and following good world practice (Brodel,1989).