ABOUT THE SITUATION WITH UNFINISHED CONSRTUCTION AND ITS INVOLVEMENT IN ECONOMIC TURNOVER
https://doi.org/10.21686/2413-2829-2019-3-121-128
Abstract
The article analyzed the dynamic of unfinished construction in 1991–2017, whose volume exceeds the annual capital investment directed to construction. It was found out that 2000–2010 were the most effective years, when the number of unfinished projects halved. When unfinished construction grows, big capital investment is withdrawn from economic turnover and the cost of these projects’ finishing goes up. The authors analyzed the reasons for such excessive amounts of unfinished construction (including long-term one) and put forward ideas of their involvement in economic turnover. Two key lines in their realization are proposed: firstly, construction completion or sale of unfinished projects and secondly, prevention of new long-term construction, including projects in housing construction .In respect of the first variant the authors suggest the development of a target program aimed at privatization of projects of unfinished construction (with concrete information about regions), as well as their completion and sale, which will provide an opportunity to get funds necessary to complete other projects or build new ones. To develop such an all-Russian program it is necessary to carry out an overall stock-taking of each project in line with a specific passport characteristic provided in the article and to make an economically grounded decision for each project. As for the second line, a number of possibilities were considered aimed at cutting the number of unfinished projects and prevention of new projects emergence. Special attention is paid to increasing investment activity in the industry, which is based on involvement of unused projects or areas of state and municipal property in economic turnover. It refers mainly to transparency of leasing vacant projects or areas according to fixed contracts and prices.
About the Author
Oleg E. Pankratov
Bank of Russia
Russian Federation
Russian Federation
Oleg E. Pankratov PhD, Full Member of EAEN, Director of the Economic and Operation Administration of the Bank of Russia.
17 Neglinnaya Str., Moscow, 107016
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Review
For citations:
Pankratov O.E. ABOUT THE SITUATION WITH UNFINISHED CONSRTUCTION AND ITS INVOLVEMENT IN ECONOMIC TURNOVER. Vestnik of the Plekhanov Russian University of Economics. 2019;(3):121-128. (In Russ.) https://doi.org/10.21686/2413-2829-2019-3-121-128
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