Sustainable Project Management in the System of Economic Reform of Industries: Example of Russia

Sustainable Project Management in the System of Economic Reform of Industries: Example of Russia

S. N. Apenko (Dostoevsky Omsk State University, Russia)
Copyright: © 2018 |Pages: 17
DOI: 10.4018/978-1-5225-3856-1.ch003


Russian economy is facing a difficult period characterized by economic crisis. In particular, industry became an evident of the necessity to change economic development model: the transition from raw material economy to industrial one. This requires economic reforms. At the present stage, economic reforms can be implemented, first, in the project format, and secondly, following the requirements of sustainable development concept. Project management as the theory, methodology and set of practical technologies has significantly strengthened its position in the modern management of economic entities. Project management proves own efficiency, also in the development and implementation of economic reforms. This raises the urgent issue of integration and integrated use of project management and sustainable development concept. Today, scholars and practitioners declare an importance of sustainability criteria implementation at the project level. Therefore, the aim of the study was to develop provisions for sustainable project management. Consequently, results of the study proposed: clarification of sustainable project management essence, interrelation of directions of sustainable development and functional areas of project management, conditions and prerequisites for the transition to sustainable project management, rationale for the transition to sustainable project management towards so-called “weak” sustainability.
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In recent years, Russian economy under the influence of different factors is experiencing serious difficulties. Beginning from the end of 2014, experts-economists record the signs of economic crisis. The intensification of economic problems contributed to various events, including decreasing of oil prices, economic sanctions and the weakening of the domestic market. The status of country-producer of energy resources which has previously stimulated an economic growth, at the present time is a big problem. The Russian economy largely depends on energy export, oil and gas extraction accounted for half of government revenues. The extraction of other raw materials, such as metals, also has a certain portion of state exports volume. Falling prices for energy and raw materials in 2015 resulted significant deficit of Russia's income. Based on the predictions that in the short term, commodity prices will remain low, the current situation is something more than just temporary difficulties.

Sounds reasonable enough the idea, that the main problem of the Russian economy are not economic sanctions, not the fall in energy prices, but the model of economic development. Today recognizes the need for the implementation of the next structural reforms that will be the key to overcome the crisis. Russia's path to economic recovery and growth depends on the pace of reform, especially in the range of the next few years. At the moment, the reform processes have already started.

The processes of economic reform affect, among others brunches of industry. Russia is a country with a developed industry that provides more than 2/5 of national income has about 1/2 of the fixed assets and together with the construction employs 2/5 of population (Industry of Russia, 2016). The main trend of the industrial sector in 2016 was a slow transition from a resource-based economy, dominated by extraction industry, to production, where significant investments were directed to manufacturing. Of course, the main factor in this change was the strategy of import substitution and emphasis on the recovery of domestic agriculture and food industry. The first recorded results are little yet positive. So there was a positive dynamics in the engineering, chemical, light industry and processing industries. However, it is too early to talk about industry’s substantial growth. Objectively in 2016, growth was observed only in the segments dominated by state order (defense industry, agriculture, and engineering).

At the present stage basis of economic reforms in industry laid down policy of innovation. In recent years conceptual reorientation occurs in the strategies of most companies, the essence of which is to shift from the economic effect of large scale manufacturing to innovation-focused strategy. In the modern economy innovations are the main means to ensure the competitiveness, stability and efficiency of economic subjects activity. In all spheres of industry there is a relationship between competitive position, the results of the company and its innovative potential. Increasing efficiency of company development can be achieved by improving product quality, including through the implementation of the resource conservation policy, improve the quality of services provided by infrastructure, development and use of innovative technologies and equipment, and also production of new goods that will be competitive in the market. However, the determining factor is the innovation.

With this comes innovations development and implementation require changes in the control system. At the moment it becomes a steady trend of transition to project-oriented management.

This management means approach, according to which stand out regarding the independent activities in the form of project, program or portfolio and in relation to them are used the basic principles and methods of project management. In particular, are given the timeline, budget, goals, results quality metrics, volume of work are planned. Different tools based on managing project risks, resources, costs, changes, integration, communications, and other compulsory areas. A distinctive feature of project activity is its innovative character; the project activity must be unique. Therefore, any innovation is optimally implemented in project form, using the technology of project management.

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