DRAFT

 

The concept note

on the project of working group activity of the

ÇGlobal Collaborative Research and DevelopmentÈ

 

Tatiana S. NOVIKOVA Ph.D., Dr.Sci.

March 26, 2007

 

The purpose:  the quantitative policy analysis of social and economic development in the Altai Republic in view of global e-interrelations and interdependence on the basis of economic-mathematical modeling and integrated system of research and training with application of scientific researches results in an education system.

 

The mechanism of realization is the interaction of institutes of global university system and leading universities and the academic institutes of Novosibirsk and Moscow, that assumes realization of monitoring at Novosibirsk state technical university (coordinator is Dr. T.S. Novikova, the head of the finance and tax policy faculty).

 

Statement of the problem. The challenges of globalisation demand the application of interdisciplinary and multilevel approaches to decision-making, in particular, investment decisions. Methods of an estimation of investment projects on a microeconomic level are not limited to narrow frameworks of a commercial effectiveness and include as the major component the analysis of public efficiency with quantitatively measured ecological, social and other public effects. Realization of such approaches assumes a substantiation of the necessary policy providing a mutually advantageous combination of interests of various participants of projects and corresponding degree of development of a civil society, in particular, of a transparency of representation of the information on investment projects. In republic Altai the urgent need in application of such wider methods of the quantitative policy analysis arises for projects of construction of gas pipeline from Tomsk to China, construction of hydroelectric dam, promotion of tourism. Development and application of the mentioned above methods is an important component of innovative education and the electronic learning, adequate to modern requirements and new opportunities of the information infrastructure in conditions of globalization.

 

Review of literature. A system of the methods is developed for public estimations of projects and programs that is described by comparison of expenses and benefits. A special term is introduced for these methods: "the analysis of costs and benefits". They form one of the largest sections of economy of the public sector that is connected with the applied economic analysis. Methods of the analysis of costs and benefits have received wide practical application for estimation of projects for the state and banks of development, accordingly, mainly in public and a private sector. The second direction was developed within the international organizations, first of all, the World bank and UNIDO. Situation in developing countries have demanded essential change and development of the traditional methods used for public sector projects in the developed countries. As a result, in year 1970 a special economic approach to the project analysis was generated. It is usually called the modern analysis of costs and benefits [1]. Recently, the development of corresponding methods in the European Union became more active [2].

Methodical recommendations regarding the efficiency of investment projects, Ref. [3], is the basic official document that regulates the project analysis in Russia, and determines opportunities of application of the economic approach.

Recently, the methods of the analysis of public efficiency of projects have been developed further in the Institute of economy and organization of industrial production (IEOIP), Novosibirsk, for an estimation of a few innovative megaprojects [4]. They were also applied here for a complex of the interconnected innovative projects used for the estimation of innovative potential of the Siberian Branch of the Russian Academy of Science [5].

Methods of the estimation of commercial and public efficiency of innovative projects have been put in a basis of educational programs on investment activity in Novosibirsk state university, the Siberian Academy of public service, and Novosibirsk state technical university.

 

Methods of the quantitative policy analysis. The quantitative estimation of the project assumes the analysis of a complex of the interconnected parameters based on calculation of two parameters of efficiency. The first parameter is the commercial (financial) efficiency that considers benefits and expenses at realization of the project for a set of private subjects (participants of the project). The second parameter is the public (economic) efficiency tat considers consequences of realization of the project from the point of view of society as a whole. Distinction of commercial and public efficiency of the project depends on tax, ecological and indirect effects. To obtain the information about ecological, social, and indirect effects one needs to carry out the interconnected calculations in different models on the basis of effective international partnerships.

The quantitative estimation of efficiency will be carried out using the simulation models of investment projects with cash flows corrected by mentioned above effects.

 The positive net present value arising after realization of the project and defined by the analysis of its efficiency, can be considered as original "pie" which is divided between participants of the project, providing corresponding efficiency of participation in the project. A significant size of the net present value for all participants of the project means that the offered scheme of financing provides interest of participants in its successful realization. There are private participants of the project which interests are considered as definition of a commercial effectiveness. In the analysis of public efficiency cash flows of participants behind frameworks of the project should be added. As a result of the project implementation the mutually advantageous combination of various participants interests is provided: private investors are interested in granting financial resources while high social, ecological, and budgetary efficiency of the project is simultaneously reached. The project implementation is based on the social partnership mechanism for strategic perspective and coordinating activity for its achievement.

 

Resources: how they will be used  in the project

Novosibirsk state technical university (NSTU) is the largest university in Novosibirsk and is one of the largest research and educational centers in Russia. The University trains specialists in engineering, social-economic direction as well as humanities. The University has long-standing traditions to pursue fundamental and applied research in various directions of science and engineering, in the field of higher education, increasing the quality if education and training specialists. NSTU possesses significant innovative potential, experience of the international innovative cooperation with attraction of students and teachers to implementation of real innovative projects that raises quality of educational process, promotes preparation of experts of a high level.

On the faculty of the finance and tax policy (head Dr. T.S. Novikova) the wide experience of teaching in the field of investments and the finance within the frames of disciplines "Investment", "Investment strategy", "Insurance", and "Financing of innovations" is accumulated. In the scientific research, experience of modeling of the investment projects is gained here that is characterized by a combination of the analysis of commercial and public efficiency and corresponding interaction of the finances of various participants of projects. NSTU has a filial in Gorno-Altaisk (capital of republic Altai). For this representation now the faculty begins the development of distance learning and telemedicine pilot projects using broadband Internet technology in order to enhance their teaching/learning capabilities.

 Institute of economy and organization of industrial production (IEOIP, Novosibirsk) is the leading institute in Russia in the field of economic-mathematical modeling. The institute has received popularity in the country and abroad and has won high reputation. The main research directions in the institute include problems of the state regional policy, territorial management and complex development of Siberia. In the institute, an inter-branch model of global optimization and economic interaction in the world economic was developed that uses the data of the Leontiev's balance model of the world economic. In the project, IEIOPP is considered as the base institute for carrying out the scientific research under the management of corr. member of RAN, vice-director, prof. V.I. Suslov. It is supposed to make use of the unique experience of development of two types of models accumulated  by the institute: the inter-branch inter-regional models applied to forecasting of territorial development of economy of Russia, and models of the investment projects applied to an estimation of innovative potential of the Siberian branch of the Russian Academy of Science.

Among practical measures of a state policy in Russia the widest public resonance was received by the so-called megaprojects that use significant volumes of budgetary financing and provide high parameters of efficiency. Among innovative projects special interest for the project "Global university system / Altai the World" present the project of installations for recycling the oil gases that gives significant ecological effects; the project of manufacture of medical products "IZODEKS", characterized by high public efficiency of innovative products and technologies in medicine; the project of ecological housing construction "ECODOM", attractive to Altai from the point of view of harmonization of interaction with an environment, energy saving, low expenses, and earthquake-resistant opportunities.

 

Stages of project realization.

1 stage. Carrying out imitation calculations that account the ecological effects on an example of interaction of the investment project model of manufacturing of installations on oil gases recycling (Novosibirsk) and the global model (Washington, Arlington). Restoration of business games "World Economic" and "Estimation of projects by banks of development" with the subsequent introduction into educational process in universities of Novosibirsk, and later – in the Altay republic.

2 stage. The analysis of separate most important problems for development of Republic Altai, including the civil-engineering project of the main gas pump line Tomsk- Gorno Altaisk - China, civil-engineering project of the Katun hydroelectric power station, development of the tourist complex, providing the republic with modern Internet connection. Exchange of the turned out methods and the saved up experience of the decision of interdisciplinary problems with foreign experts in the field of the system analysis. Carrying out videoconferences on discussion of separate problems.

3 stage. The analysis of strategic opportunities of development of republic Altai on the basis of calculations on a complex of the interconnected models of the project. From the Russian party the complex includes inter-branch inter-regional model of economy of Russia, a model of economy of republic Altai and models of various investment projects. From the foreign party the complex includes global models of world development with the detailed representation of ecological and social problems.

Introduction of results of scientific research in an education system of republic Altai.

 

Needs for resources.

Connection to the broadband fast Internet for participants of imitating calculations.

Maintenance of the necessary equipment for carrying out of teleconferences.

Providing of researchers, teachers and students by computers.

Wages of scientific employees, teachers and translators.

Consumables and overheads.

Payment of participation in the international conferences, including transport charges, travelling and living expenses, the admission fee.

 

Literature

1.                   Jenkins G.P., Harberger A.C. Cost-benefit Analysis of Investment Decisions. Manuel. - Queen's University, Canada, 2001.

2.                   A Guide to Cost-Benefit Analysis of Investment Projects. - DG Regional Policy, European Commission, 2000.

3.                   Methodical recommendations according to efficiency of investment projects (the second edition). The official publication. M.: Economy, 2000.

4.                   Novikova T.S. Public efficiency analysis of investment projects. - Novosibirsk: IE OPP, 2005.

5.                   Innovative potential of a centre of science: methodological and methodical problems of analysis and estimation / Ed. V.I.Suslov. - Novosibirsk: Nonparel, 2007.