One of the factors of such deep branch disbalance is insufficiently strong communications of national economy with the world money-market, limiting competitiveness of small- and middle-sized enterprises in the world market. Even realization of simple currency transactions at the local market for these enterprises is connected with significant complexities.
On the other hand the presence of international firms at financial markets has made an important contribution to stability in domestic banking systems in a number of emerging-market economies.
More than that, the impossibility of free carrying out operations in the money-market limits the potential of using the complex financial schemes, that also negatively effect the competitiveness of the Russian industry.
There is a system of the international economic relationships which sharply limits the entrance of small and middle-sized companies into the world market.
Large trading organizations are engaged into distribution of their production. For such organizations the restrictions connected with operations in the world money-market (on the minimal volume of operations, terms of transactions, level of commission fee) are insignificant. In Russia there are no mechanisms of simplifying the entrance into the world market of small and middle-sized enterprises.
Creation of foreign trade associations or companies will not only promote expansion of technological export of Russia and deepening of its integration into the world money-market, but also lead to clear differentiation of local and foreign trade.
Alongside with the external economic companies many developed countries have special export banks which are engaged in maintenance the operations connected with the world currency market. Activity of such banks, as a rule, facilitates the entrance of the middle-sized companies into the world market and promotes a deepening of communications between national economy and the world money-market.
The greater integration of domestic and international markets also calls for flexible usage of monetary policy instruments for modulating domestic liquidity conditions and correcting any serious misalignments between short-term and long-term interest rates.
The important obstacle on the way to integration of Russia into the world money-market is preservation of some serious restrictions in Russian foreign trade.
At the end 2003 there were more than 90 restrictive measures against the Russian exporters in the world, including over 60 special duties and over 20 quantitative restrictions on import of Russian goods. The direct damage to Russian economy, happened because of these measures, exceeds 2 billion dollars a year according to estimations of the Ministry of Economic Development and Trade of the Russian Federation. It is necessary to consider the indirect damage connected with the delay of integration of Russia into the world money-market, due to application of these measures. The cancelling of these restrictions is an important intermediate term problem.
THE PROSPECTS OF INTEGRATION OF RUSSIA INTO THE WORLD FINANCIAL MARKET
The increasing number of the Russian companies is entering the world money-market. Financial management is becoming much more complex and risky. Thats why there is a necessity of both estimating the opportunities of Russian companies and general estimating the prospects of Russias integration into the world money-market.
Last decades were marked by important changes in world economic development.
The concept of integration of the national money-market into the world money-market has no unique interpretation in the modern Russian economic literature. In the given work the general understanding of this term comprises all forms of strengthening relationships between the national money-market and money-markets of other countries.
This concept includes the strengthening of economic, informational, technical and organizational relationships between the given markets, as well as elimination of legal, economic, political, technological and psychological obstacles to free moving of capital.
The full financial integration has obvious benefits for Russia, particularly because the global financial system has been expanding more rapidly than any time in history.
The nexus between international financial integration the degree to which an economy is integrated with and open to the international capital market and economic growth continues to be one of the most debated issues among international economists. Do financially more open economies grow faster than closed ones, precisely because of their openness to the global capital market? Are policies sensible that promote growing international financial integration, hence financial globalization?
The benefits of financial globalization are well-known: it facilitates the transfer of savings across borders allowing savings to finance productive investment, promoting growth and job creation, as well as portfolio diversification. At the same time, the process of integration also injects healthy competition to the domestic banking system.
Closer financial integration could also strengthen domestic financial systems leading to more investment, more efficient allocation of capital and higher growth.
Financial integration does not have to be welfare enhancing in the presence of other distortions such as trade barriers and weak institutions, or if information asymmetries affect the proper working of the international financial market.
Just like integration of trade is promoted by liberalized trade regimes, financial integration is also facilitated by limited restrictions and controls on capital movements.
One of the clear lessons from the past decade of increased financial integration is that such integration tends to accentuate the benefits of good policies and the expenses of bad policies. Foreign capital seems to be attractive in countries that enjoy macroeconomic stability characterized by prudent fiscal policies and monetary policies aimed at low inflation rates and a stable political situation.
While capital can provide a valuable source of foreign savings, it also poses challenges to the policy makers. Large inflows attracted by relatively high interest rates might cause the money supply. It might also be difficult for an embryonic banking system to channel efficiently large inflows to productive investments.
The problems of integration of the national market into the world financial system and the world money-market for developing countries and the countries with transition economy are especially actual.
The role of financial infrastructure is continuously increasing. The competitiveness of national economy is defined not only by customer demand, but by the presence of adequate financial infrastructure providing realization of complex settlement schemes, movement of commercial credits and insurance of industrial risks, too. The fact that many new industrial countries (for example, Taiwan and Singapore) are the largest centers of the international financial market is not accidental.