Shaping a comprehensive government-supported country brand program

Victoria V Perskaya,Bari G Khairov,Saida M Khairova,Nikolay S Revenko

doi:10.9770/jesi.2020.8.2(10)

Abstract

Country brand support programs are instruments of open protectionism, which results from unilateral sanctions by foreign countries or acts as a mechanism for direct government support of national producers, creating positive perception by customers abroad and promoting goods and services to foreign markets. However, the long-term preservation of protectionist measures in the national economy leads to the loss of competitiveness by producers and the national economy as a whole. Therefore, it becomes relevant to study the programs of several states in the context of the development of national production and exports, and search for approaches to shaping a comprehensive program of government support for the country brands, which correspond to the main fair competition features in the global economy based on agreements within the WTO. This study is aimed at identifying the feasibility of transforming the “Made in Russia” initiative into a comprehensive country brand government support program. The methodological tools of the studied problem are based on expert and mutual assessments, the Delphi method, mathematical statistics, and graphical modeling. The expert assessment method was used to substantiate the expediency of protectionism for domestic producers to preserve quality and environmental friendliness of export-oriented products in the current conditions that contribute to cultivating the country’s positive image. A cause-and-effect diagram (the so-called Fishbone Diagram) developed on the basis of the K. Ishikawa model made it possible to identify the main causes and conditions for shaping a comprehensive program for the country brand government support.

Highlights

As a rule, the development of national brand support programs, as evidenced by the world practice, is subordinated to two interrelated tasks: national economy restructuring and implementing strategic national tasks related to long-term development and increasing the international competitiveness of domestically manufactured products (Mahrinasari, 2019; Chowdhury, Sanjoy, 2020).In macroeconomic terms, global financial instability and violation of the fair competition rules in the world economy is a prominent issue (Posen, 2018; Vasiljeva, 2012)
It becomes relevant to study the programs of several states in the context of the development of national production and exports, and search for approaches to shaping a comprehensive program of government support for the country brands, which correspond to the main fair competition features in the global economy based on agreements within the World Trade Organization (WTO)
The purpose of the present study is to identify the feasibility of transforming the “Made in Russia” initiative into a comprehensive program to support the country brand

Summary

Introduction

The development of national brand support programs, as evidenced by the world practice, is subordinated to two interrelated tasks: national economy restructuring and implementing strategic national tasks related to long-term development and increasing the international competitiveness of domestically manufactured products (Mahrinasari, 2019; Chowdhury, Sanjoy, 2020).In macroeconomic terms, global financial instability and violation of the fair competition rules in the world economy is a prominent issue (Posen, 2018; Vasiljeva, 2012). The development of national brand support programs, as evidenced by the world practice, is subordinated to two interrelated tasks: national economy restructuring and implementing strategic national tasks related to long-term development and increasing the international competitiveness of domestically manufactured products (Mahrinasari, 2019; Chowdhury, Sanjoy, 2020). In accordance with the global trends, exportability of products is not considered a priority, because programs are auxiliary tools that make goal setting more sound by combining tools to support production and promote the export of products and services into a single complex. In 2017-2018 the geography of exported Russian goods and services was characterized as follows: approximately 54.5% were delivered to European countries; 36.8% to Asia, 3.8% to Africa, 3.4% to North America and 1.2% to Latin America and the Caribbean, excluding Mexico. By 2025, the value of exports is expected to increase to USD 500 billion, including non-resource exports that will make up to USD 200 billion (Knobel, 2018)

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