Prospects for the Northwestern Russian Forest Raw Material Harvesting during the Transition to a Market Economy

This paper analyzes the long-term prospects of profitably harvesting the forests in northwestern Russia in a sustainable manner, indicating the potential short-to medium-term competitiveness of the Russian forestry in both domestic and international markets. We have chosen a systemic approach (a modification of Porter's Diamond) to investigate the threats to and possibilities of the Russian forestry. This means that we consider not only factor conditions, but also demand conditions, the presence and status of related and supporting industries, firm strategy, structure, and rivalry, and the role of government in creating a competitive Russian forestry. Our analysis of the factor conditions prevailing in the mid to late 1990s indicates that the prospects for the Russian forestry could be very good. However, this potential will be realized only if substantial problems can be solved with regard to revising government policy, clarifying property rights, developing and maintaining the infrastructure, and achieving a stable and not too rapid increase in costs. Furthermore, we think that domestic demand is a weak link and that a revitalization of this demand is necessary.Cet article offre une analyse des perspectives à long terme d'une exploitation forestière rentable et durable des forêts du nord-ouest de la Russie, analyse qui souligne la compétitivité potentielle à court et à moyen terme de l'industrie forestière russe sur les marchés domestique comme international. On a choisi une approche systémique (une version du losange de Porter) pour étudier les éléments qui constituent une menace pour l'industrie forestière russe et ceux qui représentent des ouvertures. Ce qui signifie qu'on ne considère pas seulement les conditions des facteurs mais aussi les conditions de la demande, la présence et le statut des industries connexes et dérivées, la stratégie des entreprises de même que leur structure et leur rivalité, ainsi que le rôle du gouvernement dans la création d'une industrie forestière russe concurrentielle. Notre analyse des conditions des facteurs prédominantes du milieu à la fin des années 1990 révèle que les perspectives pour l'industrie forestière russe pourraient être très bonnes. Ce potentiel ne se concrétisera toutefois qu'après la résolution de problèmes majeurs visant la révision de la politique gouvernementale, la clarification des droits de propriété, le développement et le maintien de l'infrastructure, ainsi que la réalisation d'un accroissement stable et assez lent des coûts. On croit de plus que la demande nationale constitue un maillon fragile et qu'une revitalisation de cette demande s'impose

The forest sector in Moscow oblast

Godkänd; 1999; 20070515 (keni

The Russian detour : real transition in a virtual economy?

Illustrates the creation of a market economy by showing that no easy procedures automatically lead to that goal; the Russian forest sector is used as a model for all Russian industries. The major obstacle for the forest sector is the existing institutional framework consisting of both formal & informal rules. In Russia, the institutional system adversely affects the new & more market-oriented institutions. Indeed, multiple problems undermine the Russian forest industry. Laws are often ignored, property rights are ill defined, the market does not always determine value, & authorities often fail to prosecute violations of laws. Through a comparative study of the Russian & Swedish forest industries the authors reveal that Russian firms lack funding & bank support, they are more burdened by taxes, & trading is marred by contract violations. Further complicating the issue is Russia's overlapping jurisdictions; the forest sector is regulated by three levels of rules. Consequently, the problems must be solved at three different levelsValiderad; 2001; 20070207 (keni