This article discusses ways to improve the legal and institutional framework for public policy aimed at developing and supporting small and medium businesses. It points to a need to increasingly direct basic forms and priorities of this support to the fulfillment of key tasks of innovative modernization of the Russian economy. The article draws attention to the importance of harmonizing existing legislation on the development of small and medium enterprises in the Russian Federation with other systemic laws in the area of economic regulation, namely the laws on strategic planning, industrial policy, public-private partnership, and innovation. It stresses the need to reflect in the system of institutions as well as in specific measures for developing small and medium businesses a growing maturity of this group of business entities which are focused on the real economic sector and interaction between large, small and medium enterprises. Under the current circumstances, small businesses cannot act neither as a significant damper for social and economic costs of crisis phenomena observed for the last two years nor as a sufficiently powerful factor in innovative modernization and restructuring of the Russian economy. State (federal) support for small and medium businesses has been “stratified” between the state and departmental programs implemented by various federal executive bodies. In this regard the measures directed to increase of the common institutional maturity of the Russian economy have to be a principal direction of a state policy concerning MSP. These are the changes aimed at creation of the common favorable enterprise and investment environment at the heart of which - fight against corruption and irrational administrative barriers; qualitative statistical information on development of the Russian MSP at all levels and, of course, the maximal binding of profitable sources of regional and local budgets to dynamics of development of medium-sized forms of economic activity in territories.

Currently in Russia the state support for building small hydropower plants is rather restricted. According to experts the legal standards for the development of Russian small hydropower plants should set to solve the problem. The article displays the results of an analysis of state measures to support programs for building small hydropower plants, including draft state program “Energy Efficiency and Energy Development” and the program “Fundamental objectives of state policy aimed to improve energy efficiency through the use of renewable energy sources for the period until 2020”. The authors systematize government documents on the development of small hydropower plants as well as strategic plans on financing and construction. Electric power industry policy in the area of development is not determined only by market indicators of commercial success. As in case of other basic industries, the results of its development have an impact on all aspects of country’s life. The article could be of interest to top and medium level managers involved in designing programs for the development of small hydropower plants.

A new type of economic analysis - business analysis - should be considered in its broadest sense as further development of integrated economic analysis connected with the study of business processes, business units and business models of commercial organizations. It includes investigation in such areas as marketing activities of the organization, efficient use of technological capacities, the efficiency of solutions pertaining to capital investments, financing, as well as the study of social, economic and political issues that ensure the effective and sustainable functioning of the organization. Business analysis is based on a number of methodological approaches to the study of organization activities: analysis of the dynamics in organization development; performance analysis (as performance is a main condition of sustainable development); study of organization activities in the context of organizational environment; and, finally, applying stakeholders approach, i.e. analyzing the organization performance against the requirements of stakeholders in order to ensure the creation of value for business stakeholders. Finally, the business analysis suggests proposals for solving the identified problem (or a set of problems). The article considers the procedure of business analysis as a modern method for the analysis and quality control of the organization. This new type of analysis includes investigation and control of business-processes, paperwork, and performance self-evaluation system.

Interregional differentiation between RF subjects, especially in conditions of geopolitical instability has necessitated implementing innovative crisis-response programs aimed not only at overcoming the crisis factors in social and economic regional development but also at creating the basis for sustainable economic growth. A model of regional innovation crisis-response program under geopolitical instability implies the use of systematic, integrated, process and other approaches. It should take into account such factors as an integral criterion of quality and regional development performance; systematic approach methodological requirements to program design; crisis management purposes; morphology of the system; the purpose of every subsystem functioning; a mechanism to ensure the achievement of objectives set for the system viewed as a whole, given its emergent properties; system and subsystems hierarchy level; impact of system properties on other systems; impact of the environment on the system; the process of functioning and development of the system; information streams (both internal and external), etc. Thus, the suggested model of regional innovative crisis-response program will help overcome not only negative factors in the regional social and economic development and import substitution, but will contribute to creation of regional tax base which, in turn, will increase revenues in RF subject budgets and enhance the quality of life in respective regions.

The article describes the prospects for participatory financing in Russia and the expediency of supporting the activities of specialized financial institutions to develop the national economy. In this context, the experience of European countries, Malaysia, the Gulf countries plays an important role. In modern conditions, the international financial and economic crisis and increased competition for sources of raw materials and for goods and services markets demonstrate the vulnerability of the world economy, its imperfections and stress the need for the use of new tools and less risky sources of financing. The article explains the need for improved regulation in the area of participatory financing, gives recommendations for the development of appropriate infrastructure and the use of world experience. The Federal Law “On financial partner organization” recently introduced to the legal framework meets regulatory principles of traditional banking business, expands working areas of specialized financial institutions and will contribute to the economic development of Russia.

The paper focuses on the methods used for measuring financial contagion through simulation of the bank default risk viewed as a trigger event. Systemic risk and financial contagion as well as the mechanism which enables system risk implementation are considered taking into account such aspects of financial contagion as the existence of overlapping channels of risk transfer, interbank and independent bank levels, and feedback loops impact. The methodology for analyzing financial contagion outcomes is based on the approach allowing for the latent factor. The author examines the methodology while applied for simulating bank default risk. Basic approaches to measure financial contagion in time and structural perspectives have been suggested. An important aspect of the financial effect of contagion is the fact that it occurs in the dynamics which implies a more significant impact than might initially be expected. A weak banking system may have a negative impact on the state as the subsidization of one bank may increase the risk to the whole banking system, which; in turn; will reduce the effectiveness of subsidies for chosen bank, etc. The lasting effect generates a reverse effect loop of financial contagion. The final part of the article shows the similar channels which eventually may provoke financial contagion in Russia.

The article attempts to assess the investment climate for venture capital in Russia using a set of criteria described in the methodology developed by the European Venture Capital Association. The results for Russia obtained by the authors are compared with the average values for the European Union. Based on the evaluation results, the authors suggest recommendations for improving Russia’s investment climate for venture capital. They include the elimination of double taxation of funds with foreign participants, abolition of the ban on the participation of pension funds and other institutional investors in venture funds, tax incentives for individual investors who invest in venture capital funds and fiscal stimulus for companies involved in investment and research activities. In addition, the paper proposes a number of refinements of the methodology which, in the authors’ opinion, will help increase the accuracy of the results, for example, updating the point rating system which is obviously insufficient. Moreover, given the fact that most of the parameters of the method are quantitative (level of taxation, number of procedures, etc.), the evaluation of these parameters could also be quantitative. Also, it is possible to use for estimation purposes a non-linear function, for example, quadratic one.

The article investigates into household money, in particular, people’s savings that are used to acquire financial assets. The main economic problem in Russia is to attract and stimulate investments in the industrial sector. In conditions of sanctions imposed by Western governments on our country, internal sources of financing the economy are fundamental. This entails the issue of attracting free financial resources of households. The research topic is highly relevant. Creating a mechanism for accumulating and effective investing of household savings would also preserve and increase people’s savings under conditions of rising inflation. In this connection, the authors have considered the issues of formation of personal finance as it is a real basis for determining consumer demand. They show that households are important economic actors. The study demonstrates how households’ financial flows are interrelated with other sectors of the national economy as well as the possibility and the need to attract free financial resources of households (household savings) to increase the volume of domestic investment in the country’s economy. The authors have analyzed the amount, structure as well as dynamics in personal savings in the forms of deposits and securities.

Article Retracted. In our country the implementation of regional investment projects very often generates problems of the qualitative monitoring of their effectiveness, and thus makes it impossible to use existing innovative potential of social and economic systems to full extent. The paper suggests the approaches to assess the impact of different types of investment resources on the innovative regional development. For these purposes, regions have been ranked according to the indicator of their innovation susceptibility to investments in fixed assets. The study identifies the Federal District subjects which are low performers in initiating the process of high-tech manufacturing. The paper sets out conditions for attracting domestic and foreign investments in the regional innovation projects. Suggested assessment mechanisms can be used by federal and regional authorities as an effective management tool in developing, implementing and monitoring innovation and investment programs aimed at country’s modernization.

The article focuses on the problems of investment cooperation between the EurAsEC countries caused by informal restrictions on the movement of capital. An analysis of investment activities of foreign companies in the markets of these countries allows to reveal at least seven types of informal constraints (introduced under the influence of various factors) which impact on the interaction between recipients and donors of capital. In this context, the author evaluates the prospects of creating conditions for the free movement of capital within the EurAsEC and proposes measures to remove barriers to foreign investment. It is noted that irrational bureaucratic management is another barrier to foreign investment and it is often mentioned by entrepreneurs as one of the main investment risks. The negative impact of bureaucracy on the company's work can take on various forms: from incompetence in making decisions to direct intervention in business processes. Also, a very common practice in business is changing “the rules of the game”. For example, before signing investment agreements, foreign companies count to obtain benefits and preferences which can be eliminated later, in the process of project implementation. In this case, low predictability of decisions and actions of the authorities acts as an informal barrier to investment.

The scope and methods of attracting financial resources in different countries have specific features; however at the current stage of the global financial market development, a significant part of financial resources is attracted by issuing securities. The securities market in the Kyrgyz Republic emerged in the time of the privatization of state enterprises in different economic sectors. The first issuers appeared; they were joint-stock companies, investors and professional players of the securities market. It is known that dynamically developing economy is based on the development of the financial market of the country. The volume of the stock market shows not only its development at the moment, but also it is a good base to draw conclusions about all the economy in general. The stock market is often called a “mirror of the economy.” The analysis shows that unlike Russia, the Kyrgyz Republic has no experience in making transactions using financial derivatives on the domestic and foreign markets as well as in hedging price risks on the currency, oil or stock markets. The main reason for the lag is the lack of legislative framework for markets of derivative financial instruments.

The paper describes the scientific concept of development of the EurAsEC representing a complex territorial, social and economic system. It characterizes EurAsEC as a social and economic space, defines its legal and organizational framework, identifies stages of its evolutionary development. The authors specify key trends within specific tasks as well as main advantages of four classical freedoms. It is noted that creation of the Eurasian Economic Community (EurAsEC) lays foundations for evolutionary international development which makes it possible to use constructivism in existing financial markets, define a vector of development, change models and control mechanisms with the purpose to increase the impact on macroeconomic processes in the EurAsEC member states. Social and economic development of the EurAsEC plays a critical role in improving healthcare and living standards, education, environmental conditions, and rising income. The evolutionary development of the EurAsEC implies the development of natural resources potential, enhanced prospects of cooperation in different economic sectors, higher living standards.

The modern world is characterized by multipolar development which important part is the prompt growth of the economies with emerging markets having more and more increasing impact on functioning of all spheres of global community. For the last some decades in world economy, there was a set of changes, which allowed the countries of BRICS group to take an important place on the world scene. This work is devoted to studying by studying of growth of influence of BRICS group on tendencies of development of world financial architecture. Relevance of this research is caused by rapid growth of the financial and economic capacity of member countries of BRICS group and the objective need for increase of their role for world monetary system connected with it in recent years. Brazil, Russia, India, China and the Republic of South Africa apply for a role of world leaders of the new millennium and seek to strengthen the influence on the processes happening on the international scene. The methods of the system analysis used in work, allowed to study in detail prerequisites of formation of BRICS group and growth of influence on development of world economy. The main achievements in development of cooperation of the countries of BRICS are analyzed and prospects for further interaction within BRICS group are defined. For strengthening of a role of BRICS group on the world scene, the tasks which decision will help the participating countries with formation of multipolar financial and economic architecture are set.

The paper discusses the ways of rapprochement of insurance legislations of EurAsEC Member States. It evaluates the role of unification and harmonization in this process. When considering the unification, the author pays attention to legal mechanisms of its two stер implementation. Also, the author considers the role and importance of harmonization and unification of insurance sources in the EurAsEC member states in terms of their rapprochement. Based on the analysis of the unification and harmonization category, it is suggested to adopt the EurAsEC Treaty on the insurance and the Model Code with the aim to use their provisions in national legal systems of member states. The current law tries to meet the challenges of the day in the field of international insurance business; it looks for ways and means to optimize regulation of legal and economic activities and at the same time to respect national legislations. The whole process is proceeding towards unification of regulatory documents with further uniform regulation within the economic union.

Russian Economy under crisis conditions features deepening disparities in development of territories, intensified and aggravated budgetary problems which are arising, inter alia, due to improper methodology for assessment of tax potential in conjunction with tax burden. The paper suggests the author’s technique designed to assess tax potential on the basis of such factors of production as invested capital and salary amount ensuring reproductive needs of citizens.The suggested method was tested using Russia’s economic data: it revealed an uneven distribution of tax burden and provided estimation of its distribution in terms of production factors, Based on the economically defined tax potential, the paper shows the necessity of reforming the Russian tax system through reducing the tax burden on enterprises. The author shows that the tax potential should be determined taking into account the relationships between consumed and created elements as well as establishes the relationship between the portion of society aggregated income which is re-distributed through consumption funds and the portion of national income. The conclusions may be used in defining the tax reform strategy, in planning tax revenues and improvement of inter-budgetary relations.

The article discusses the issue of building subject competence of students in multilevel higher economic education system settings. The authors reveal the factors dictating the need for content implementation of competence-based approach through training subject. The paper explains the expediency of the idea of advanced training in terms of the leading position of competence-based approach in the multi-paradigmatic modern educational environment. It describes the experience of the Financial University under the Government of the Russian Federation in developing and implementing an educational standard for teaching “Economics” based on the disciplines included in the subject “Mathematics”, it shows the possibility of designing the educational process taking into account the perceived importance of individual competences. It shows the results of a sociological survey of regional employers requirements in order to specify learning outcomes as a cluster of generated competencies.

The history of mankind since ancient times is characterized by trends on a global scale. Modern globalization processes have their origins in the 1960s, and the turning point in their development was the fall of the “socialist camp”. The nature, essence and content of globalization cause criticism and concern of scholars and experts, civil society activists. This fact signals the lack of knowledge and proves the need for further research. The author argues that globalization is a complex structural transformation, and its main objective trends are materialized in the occurrence of proper events; thus allowing to more or less successfully assess a cause and effect relationship. The article concludes that the agents as well as all participants of the globalization processes increasingly demonstrate the desire to accumulate, strengthen and enrich their economic, political and legal powers and authorities. Their substantial properties as well as the system-building function which defines social order are qualitatively predetermined by targeted globalization effects where the key role is played by the Kantian notion of “self-regard”. Keywords: globalization; trend of globalization; social philosophy; post-industrial society.

With the development of the contract system of purchases for state and municipal needs, an efficient execution of public contracts becomes particularly important. Hence the need for developing and practical use by ordering bodies of algorithms for procedures and process management. This will improve the quality of execution of contractual obligations by timely identification and adjustment of deviations from the schedule. The article deals with issues related to the protection of public customers from actions of unfair suppliers (contractors, performers) within the framework of implementation of the state defense order. The customer should check up the results obtained by the supplier (contractor, executor) in terms of their compliance with those stipulated in the contract. This goal may be achieved through conducting an expert examination. The examination of the results specified in the contract can be carried out by the customer as well as by other experts and expert organizations on the basis of proper contracts concluded in accordance with the federal contract law. In order to improve the effectiveness of execution of state defense orders, it is necessary to ensure strict control over the observance of the rules and procedures which determine the conditions for conclusion of public contracts. To ensure responsibility in this area, measures for the recovery of the budget funds spent illegally should be provided.