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  • Technological modernization and efficiency: new approaches and government policy measures

Technological modernization and efficiency: new approaches and government policy measures

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Duration: January 2014 - June 2014

Technological modernization and efficiency: new approaches and government policy measures

The long-term sustainability of economic growth will be determined by the transition pace from the extensive resources buildup driven model to the model driven by the increase in their efficient use.

Given the dominance of the large state-owned enterprises engaged in the resource-intensive industries the need for a swift transition to a resource-efficient economic growth model becomes a major challenge to the long-term sustainability of economic growth. This requires the measures, which will encourage the demand to increase resource efficiency.

The resource-intensive growth pattern suppresses increase in the economy competitiveness. This is reflected in the fact that: a) the GDP energy intensity is 4.7 times as high as in the developed countries and 1.4 times as high as in the developing countries;4 b) equipment depreciation in the industries reaches 50%; c) return on capital, return on investment and labor productivity, as well as the efficiency factor contribution (TFP, total factor productivity5) in the GDP growth reduced.

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