Analysis of opportunities and prospects of development of Russia and the countries of eastern Europe

using ‘backwardness vortexes’ methodicElena Popkova, Doctor of Economics, Professor of

Department of ‘World Economy and Economy Theory’, Volgograd State Technical University.

Elena Jakovleva, Doctor of Economics, Professor of Department of ‘World Economy’, Voronezh

State Forestry Engineering Academy.

Theoretical model of ‘backwardness vortexes’

Theoretical model of ‘backwardness vortexes’

The depth of this theoretical vortex can be measured by temporal backwardness of a country from the developed countries.

Speed of getting into a vortex can be calculated using formula:

V= ∂R/∂C=>0where V – speed of getting into a vortex; ∂R –marginal result from

investing transformational factors (industrial result); ∂C – marginal investment of transformational factors.

The closer is V to zero; the faster is the process of drifting into a ‘vortex’. The only way out from the globalized ‘backwardness vortex’ is not the catching up development, but formation, origin of new development circles on the basis of new innovation cycles.

Analysis of economy development of Russia and the countries of Eastern Europe using the

‘backwardness vortexes’ methodic

Year of comparable average levelof Russia and the countries of Eastern

Europe in 2012

Calculation of ‘backwardness vortexes’ in Russia and the countries of Eastern Europe

GDP structure of Russia and the countries of Eastern Europe in 2012

Sector of economy RussiaThe countries of Eastern Europe

Agriculture, hunting and forestry 4,7 14Mining 10,9 0,5Manufacturing industries 15,2 8Producing and distribution of electric energy, gas and water 5,1 2Construction 6,3 5Wholesale and retail trading 14,5 6Hotels and restaurants (touristic sector) 0,5 10,5Transport and communication 8,2 6,4Financial activity 7,1 13,5Operations with real estate, rent and accordance of services 2 3,9Public administration and provision of military security; social insurance

13,5 8,4

Education 2 5,1Health protection and accordance of social services 2 6,7Other sectors of economy 8 10

Analysis of economy development of Russia and the countries of Eastern Europe using the

‘backwardness vortexes’ methodic

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Thank you for your attention!

Elena Popkova, Doctor of Economics, Professor of Department of ‘World Economy and Economy Theory’, Volgograd State Technical University.

Elena Jakovleva, Doctor of Economics, Professor of Department of ‘World Economy’, Voronezh

State Forestry Engineering Academy.