Labour market and socio-economic problems of the municipalities of the city of Moscow – the Abstract , page 5

CHAPTER 3. The modern state
municipalities and market

§3.1 the path of economic
development of municipalities.

Over the past decade in the world
there have been significant changes in
developing a strategy for economic
development at the local level. Observed
the declining trend of many major
corporations in the developed world with
their location in other States.
At the same time in the municipalities is created
a large number of new jobs
small, innovative companies
at the local level.

Analysis of best practices
economic development municipal
formations of the United States, Germany, Japan
showed that the global economic
the revolution poses policy
local economic development four
main tasks:

1. Redefinition of goals and changing
prerequisites of economic development.
If earlier the local leaders believed
economic development subordinate
them in a function local
the government, which can “implement”
any of its agencies in the last
while they consider the economic
the development not only as a process
generated in the private sector.
It is not enough just to attract
the territory of any private firms in order
the creation of jobs. It is important that these
the jobs were highly paid
and required qualifications,
it has helped improve the level and
the quality of life of the population of this

2. The strengthening of the economic
the Foundation of development. Local
governments need to develop
strategy motivation
and support of the corporate sector.
Must be determined by a wide range
state activities affecting
economic Foundation activities
the corporate sector labor
knowledge and technology, financial capital,
a well-developed infrastructure.

3. Device policy
local economic development to
the changing geographical realities.
The economic viability of local
community depends on shared
well-being of the entire region, part
which it is and features
its geographical position and natural
the resources of the region.

4. The development of a new organizational
and institutional approaches to security
local development based on strategic
vision problems. Local economic
development is becoming a major concern
not only economic developers
development, politicians and governors, but
and, above all, of the population. For a successful
economic development requires
partnerships with many
government and corporate
organizations (government
agencies, firms, workers, associations,
educational institutions) and participation

Local economic development
depends not only on local authorities
power, but also from the formation of
enterprise groups interacting
firms are a key area
economic development. Local
leaders have an important role
in solving new economic problems.
They must be economic strategists
and the leaders.

The most productive measures
now to take
the local government is
developing a clear vision for
the desired type of economy and development
specific promotion plan in the
direction. A local
management have already implemented these
measures, came to the conclusion that the traditional
strategy, its attempts to attract
industries and enterprises from other regions
is not promising when
the current economic situation.
Instead, they decided to develop or
to grow their existing enterprises
and industry.

This new strategy of economic
the development is called “gardening“.
Its goal is “growing”
workplaces in local scale then
is the creation of a developed economic
environment for local businesses. This
“gardening” means
waiver of borrowings by territory
municipalities are already known
large companies that, in their opinion,
is an expensive strategy, in
most cases gives insignificant
the number of jobs and does not provide
a significant increase of the local budget.

It should be noted that the introduction of
new strategic approaches to
economic development municipal
formations are initiated at the time
when their economic conditions are
quite stable. At this time they
efforts aimed at developing
the methodology focused mainly
to assist local companies
on diversification in light of
changing national priorities
as well as strategies to assist
local businesses in the context
integrated interventions for
to improve the economic situation.

As a rule, planning
economic development was carried out
taking into account the strengths of municipal

It used to be that municipal
education with cheap
the working layer, land and utilities
facilities are quite
competitive. Those municipal
education, which could reduce
operational costs were in
win. However, cheap labor
not a major advantage for
a prosperous economy. In fact
the extension of this approach is
in a constant decrease of wage
in order to remain competitive.
These municipalities have
the ever-decreasing standards

To remain competitive
for a long time,
municipalities, it was decided,
they will be the “patch
seedlings for companies with incremental
value”, namely companies,
those innovations, and thus
a way that brings extra
the cost of goods and services. Functioning
these companies creates a national
wealth and provides high paying
jobs that provides
a steady increase in the level and quality

The development of a strategic framework
the formation incorporative economy
municipal formations of Russia
contributed ideas and the experience of US
the formation of “corporate America”.

You can select multiple
principles underlying the policy
new economic development
municipalities on the basis
the creation of innovative networks of small-scale
firms. They have been successfully applied in
European countries, as well as in some
regions of the United States.

The “principle of profitability”,
which means helping municipalities
modernization by identifying prospects
profitable business for small firms.

“Principle of effectiveness” –
means supporting (in the form
provide certain services)
the municipalities do not each firm in
separately, a group of firms.

“Participation” presupposes
the involvement of industrial firms in the process
continuous modernization, making them
responsible for this process.

The “principle of cooperation” –
the encouragement of linkages between
firms, the basis for competitive success.

Experience has shown successfully
developing municipalities,
in order for them to stay
competitive, it was necessary
to solve the following problems:

– to have a clear understanding of
future, including the desired type of economy
and the way of creation of a specified type;

– have the ability “to put
trained manpower”;

– to create a developed financial
environment, contributing to the implementation
innovative ideas, development of external

– to create quality of life and
an environment that attracts
high-skilled workers.

The solution of these tasks
achieved through a program consisting
four parts:

The development of a public vision
and strategy.

The most important element of any
economic development strategy
is the creation of a public vision
and setting goals. Economic
the strategy should promote
the realization of the social goals adopted
municipal unit.

the status of municipalities
in Russia

In modern conditions important
the challenge for municipalities
is to overcome problems
as a result of financial-economic
crisis and creation of conditions for
the subsequent innovative development.
This task must be addressed within the framework
the anti-crisis policy of the state.

As a result of its conduct already
implemented a number of measures in the field of tax
and budgetary policy. In particular, the reduced
the tax on profits increased
property deduction for income tax
individuals for people buying
housing, the reduced rate of tax on small

One of the main areas
economic and financial policy
the crisis is providing
sufficient filling of the respective
budgets for executing the expenditure

The main condition for stable
the functioning of the municipal
entities — balance
local budgets based on real
evaluation of the financial position of municipal
formations. In connection with the economic
crisis in a significant number of subjects
Russia decreased the revenues of local budgets.

As a result of the crisis, the main
the problems came not from the Federal
budget and regional and local. It
the decrease in revenue from the tax on
profits, rising unemployment,
resulting in loss of income
from the tax to incomes of physical persons
which is the main component
revenues of regional and local budgets.
In connection with this mechanism is introduced to address
financial assistance to regional and local
budgets in times of crisis. This question
solved with the introduction in March 2009
amendments to the law on the Federal budget,
which contain new terms and
the development parameters of the economy.
The changes will allow
to solve the following problem:

  • the fulfillment of all
    social commitments of the
    by the government, and implementation
    national projects;

  • revision
    all investment projects on the basis of
    performance analysis and
    of urgency and determination
    the possibility of using them as
    the “locomotives” of economic stabilization.

The most important problem in the period
the crisis is not only the volume
the financial allocations for
implementation of anti-crisis measures, but also
transparency and efficiency
their use. Tool
providing these principles must
become the Federal law “About the report
The government of the Russian Federation and
the Central Bank of the Russian
Federation on the implementation of measures to support
financial market, banking system,
of the labour market, branches of economy of the Russian
Federation, social security
population and other measures of social
policy” adopted by the State
Duma may 22, 2009

This law obliges
The government of the Russian Federation on a quarterly basis
to submit to Parliament all the information
about the funds going to overcome
crisis, showing not only banks
but the ultimate recipients of these funds.
Such regulations, in our
opinion, would be effective for
of constituent entities of the Russian Federation and municipal

The system of local taxes are
only the land tax and property tax
individuals who are fixed
over the budgets of settlements and city
districts, municipal districts is not
have their own taxes.

The most important prospective source of
expansion of the revenue base of local
budgets are improving
property taxes
in accordance with international practice
should be local taxes. Here
the main direction should be
modernization of the land tax.

From January 1, 2009 in full
entered into force new edition of the Budget
code. It contains the following
legal norms stimulating the release of
financial crisis:

to compensate
a shortfall in revenues of regional and
local budgets in connection with the change
tax legislation from 1 January
2009 increased from 60% to 100% the share of excise duties
on lubricants paid
in the revenues of regional budgets, and
additionally, transferred to a 0.5% tax rate
on the profit of organizations;

the right to provide budget loans
Federal budget
budgets for up to three years, as well as
the possibility of forming bodies
of state power of subjects of the Russian Federation
The reserve funds of constituent entities of the Russian Federation.

in terms of regional and local
budgets is the provision of the budget
loans from higher budgets. In
2009 adopted “Rules of granting
(use and return) budgets
of constituent entities of the Russian Federation from
Federal budget budgetary credits”.
These Rules establish that budget
credit is given for partial
the deficit in the budget of the subject;
covering the temporary cash gap,
may arise during the execution of the budget
subject; implementation of activities
connected with liquidation of consequences
natural disasters and technogenic accidents;
construction, reconstruction, and capital
repair, repair and maintenance of motor

The obvious need for further
to improve intergovernmental
relations. In the Budget code of the Russian Federation
it is expedient to provide for the increase of
uniform (constant) rates of deductions
from Federal taxes, including taxes
under the special tax

Barrier to maintain
afloat municipalities
especially in terms of economic
crisis is a tough system
restrictions imposed Budget
code that is associated with the size
financial assistance provided
municipalities. Today,
when the amount of aid is
about 60 % of the revenues of local budgets,
almost all municipalities are not
entitled to enforce the authority
independent establishment of payment
labour MPs and municipal employees,
the introduction of additional measures of social
support for individual categories
citizens, the competence of other
issues, the right to decide which
local authorities have
only at the expense of own incomes.
Such a system of constraints requires

Federal law No. 131-FZ has established
the principle target destination when
the use of municipal property.
The local authorities prior to 1
January 2012 should carry out
the alienation or conversion
municipal property, not
meets the requirements of article 50
Federal law No. 131-FZ.

The bodies
local government arise
problems due to the fact that the lists
local issues are not fully
match the list of property that
can be in municipal
of ownership. At the same time practice
shows that in settlements with
the low level of socio-economic
development, special geographical
position and climatic factors
local authorities are unable
to ensure the provision of
public services to private business in
some sectors of the economy and social

The use of the municipal
property brings considerable income
to local budgets.

We believe it is necessary
to consider reviewing
a list of the types of property that may
be in municipal ownership.
The decision on the extension
the specified list must be
on the basis of performance evaluation
the use of the municipal enterprises
and establishments in certain industries
municipal economy.

§3.3 the State of the labor market

In November 2009 there was a
a slight decrease in the number of vacancies,
posted on the website Also decreased
the number of published summary. Regarding
indicators of the previous month (October
2009) number of job vacancies decreased
3%, while the number of summary — on 12%. All this
due to seasonal fluctuations in
the labour market and is typical for the late

The following graph
shows the evolution in the number of vacancies and
summary in percent relative to the base
level. The baseline is taken, the number
jobs and resumes posted on the website in January 2008

Unlike October 2009, in
November saw a slight decline
the number of published vacancies in the most
professional fields. Demand growth
occurred only in the following
professional fields:

  • Early career / students (+ 7%)

  • Car
    business (+6%)

  • Transport
    / logistics (+5%)

  • Medicine
    / pharmaceuticals (+1%)

  • Installation
    and service (+1%)

The number of vacancies in professional
the field of Art / entertainment /
The Media remained unchanged. In
most areas have been reduced
demand for specialists (on average,
3%). The greatest decrease was observed in
areas such as:

  • Insurance (-11%)

  • Science
    and education (-11%)

  • Law


In conclusion, as the conclusions you want
to say that the labor market is not only
relations between employees
as the subjects of labor supply and
entrepreneurs as actors
demand arising from the purchase
the sale of this work. As the labor market
has enormous influence with
the various subjects of labour
relations: trade unions, defending
the interests of employees, and the state,
supporting the interests of workers
and employers through
specialized organizations and
legislative regulation of labour
relations, business and
enterprises created in opposition to
trade unions.

In the work considered the market
the work of municipalities. As
already emphasized the study of the labor market
at the local level is important for presentation
the entire economy of the country.

Just wanted to note that
should more deeply explore this
question and examine and analyze
all the problems of municipalities.

The list of references.

    1. Kaziahmedov
      G. M., Nikolaev I. P. Tutorial. Economic
      theory. – ed. YUNITI, 2005

    1. Kaziahmedov
      G. M. a Course of lectures – 2009

    1. Jack
      Harvey ed Kaziahmedov G. M.
      Modern economic theory.
      Introductory course – ed. YUNITI, 2003

    1. Chepurin
      M. N., Kiseleva E. A. the Course of economic
      theory – ed. ASA 2009

    1. Volgin
      I. A. the welfare state: the Textbook.
      – M.: Dashkov I K, 2004.

    1. The Constitution
      Of The Russian Federation.-M.: Yurid. liter.,

    1. Under
      edited by V. G. Zotov. The system of municipal
      management: Textbook for universities – SPb .:
      Leader, 2005.

1st year
the economic theory. Tutorial. Ed
Chepurina M. N., Kiseleva E. A. Kirov
ASA, 2010, p. 260

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