International Investment Projects Research Articles

УПРАВЛІННЯ ВЕНЧУРНИМ ФОНДОМ В КОНТЕКСТІ МІЖНАРОДНОГО ПАРТНЕРСТВА

Formulation of the problem. In today's globalized world, venture capital plays a key role in stimulating innovation and the development of new technologies. The growing importance of venture financing draws attention to the management of venture funds, especially in the context of international partnerships. However, despite the potential benefits of international cooperation, there are numerous challenges that make it difficult to effectively manage venture capital funds in such an environment. The purpose of the article is to study modern approaches and strategies of venture fund management in the context of international partnership with the aim of identifying key factors that affect the success of investment projects, consideration of challenges and opportunities arising from cooperation between different countries and regions, determination of optimal approaches to effective management of venture capital assets in the international environment. The object of the study is the key factors affecting the success of investment projects in the international venture environment, as well as practical recommendations for fund managers, investors and regulators in order to improve venture capital management strategies and increase the competitiveness of international investment projects. The methodological basis of the research was the logical methods of information processing, statistical analysis, comparison. The main hypothesis of the study is that there is a direct relationship between the degree of success of venture fund management and the level of cooperation and mutual understanding between partners from different countries and regions. In addition, it is assumed that the implementation of optimal management strategies aimed at maximizing the potential opportunities of international partnership and reducing risks will allow to increase the effectiveness of venture investments on an international scale. Presenting main material. The role of international partnership in venture investing is studied through the analysis of the impact of international partnership on the development of the venture market and the determination of the challenges of managing a venture fund in an international context. The importance of global pooling of resources and expertise for investing in promising startups and technological projects has been proven. The problems of cultural and legal differences between the partner countries are characterized. Strategies for managing venture assets in an international environment are proposed. Originality and practical significance of the research. The study provides an original perspective on venture fund management, considered in the context of international partnerships. The proposed approach allows taking into account cultural, legal and economic differences between partner countries. The given recommendations can be used by fund managers to improve strategies for managing venture assets in the context of international partnerships. Investors will receive information on the key factors and risks associated with international venture investing, which will help them make more informed decisions about the allocation of their investments. Conclusions. The study shows that successful management of a venture fund requires not only technical competence, but also the ability to work effectively in international cooperation and take into account the specific features of different markets. Recommendations are given on optimizing management strategies and reducing risks to achieve successful investment results in international venture business.

Risk Management Strategy for International Investment Projects of an Innovative Enterprise in the Context of Industry 4.0

"The significance of risk management within the framework of Industry 4.0 is on the rise, particularly within the realm of international investment projects. Contemporary technological advancements, such as artificial intelligence and blockchain, are not only ushering in fresh prospects but are also instigating the emergence of novel categories of risks. The primary objective of this investigation is to formulate an all-encompassing strategic risk management framework tailored to innovative enterprises operating within the purview of Industry 4.0. The envisaged research endeavour encompasses a thorough scrutiny of existing methodologies and models, along with an exploration of contentious dimensions within this domain. The study’s findings encompass criteria for the evaluation and quantification of risks, in addition to pivotal risk factors that exert notable influence on the efficacy of international investment projects. The pragmatic import of this investigation resides in its potential utility for enhancing managerial decisionmaking across various tiers of the organizational hierarchy. The presented material seeks to facilitate the alignment of conventional risk management approaches with the intricacies inherent in Industry 4.0. Nonetheless, it is imperative to acknowledge that the efficacy of the formulated model may hinge upon contextual nuances and might necessitate supplementary adaptations."

ОСОБЕННОСТИ ИСПОЛЬЗОВАНИЯ ИНВЕСТИЦИОННО- ФИНАНСОВЫХ И ТОРГОВЫХ ИНСТРУМЕНТОВ ВО ВЬЕТНАМЕ И РОССИИ ДЛЯ СНИЖЕНИЯ РЕГИОНАЛЬНЫХ ДИСБАЛАНСОВ

The Vietnamese economy is on the rise, but faces a number of problems. One of the most serious is interregional inequality, which is aggravated in the conditions of modern restrictions and international sanctions. The authors of the article show that the nature of interregional inequality in Vietnam and Russia has much in common. Due to the high concentration of financial and investment resources in several territorial points of growth, there is an intensive development of the regions around these points, the rest of the regions to some extent lag the leading regions in economic development. The Vietnamese government has dealt with the problem of significant inter-regional disparities with varying degrees of success. Among the most notable instruments of regional development aimed at reducing inter-regional inequality are international investment projects at the regional level, cross-border cooperation, development of special territories and industrial zones. Considering the common nature of interregional inequality, it is possible for Russia and Vietnam to exchange experience and jointly develop projects aimed at developing a science-based regional policy aimed at reducing interregional inequality.

РЕАЛЬНІ ОПЦІОНИ ЯК ФІНАНСОВІ ІНСТРУМЕНТИ СПРИЯННЯ ВІДБУДОВІ ПІСЛЯВОЄННОЇ ЕКОНОМІКИ УКРАЇНИ

Using the example of the Ukrelektromash plant, the application of various types of real options is considered depending on the development of the project scenario for the production and sale of rotary hybrid engines. The conditions and criteria for the application of option mechanisms are defined, taking into account the impact of risks, which is reflected in the assessment of the probabilities of the development of one or another type of scenario. The effectiveness of using abandonment and switching real options to a related type of activity in the event of a pessimistic development of cash flow and options to expand and replicating experience real option in the event of an optimistic scenario has been proven. At the same time, the degree of effectiveness of the manager's actions is shown, depending on the results of the project's cash flows after the first year of implementation. It has been established that real options are able to generally increase the strategic value of international investment projects, creating conditions for the post-war reconstruction of Ukraine's industry and encouraging the cooperation of foreign investors. In this way, the use of real options enables the manager to take effective measures to manage risks and cash flows, improving the degree of attractiveness of investment projects, and thereby opening new opportunities for cooperation with foreign partners. The implementation of programs with the use of real options becomes necessary when the investor is wary of investing in the development of the country after the end of the war, and at the same time sees great potential for the development of various sectors of the economy. Reducing the degree of riskiness of projects with the help of real options contributes to the gradual restoration of industrial capacities, the acceleration of money circulation, and the improvement of trade and financial operations on international markets.

Analysing Obstacles and Challenges in Fighting Corruption in Cases of Illegal Investments

Due to existing shortcomings in the system, the suitability and effectiveness of the international investment arbitration regime in addressing corrupt practices in international transactions and investment projects has been frequently questioned. The current legal and regulatory regime presumes that there is a level playing field, i.e., that the parties to an arbitration have equal access to information regarding corrupt actions. However, in practice, bringing claims of corruption in international investment fora meets various obstacles such as evidentiary hurdles and the lack of a specific arbitrators’ mandate. Hence, the focus of this article is on addressing gaps in the international investment arbitration regime dealing with corruption cases. There is increasing concern that the international legal and regulatory regime is inadequate and contains gaps that permit multinational firms to engage in illegal acts involving corruption. Against this backdrop, the main issue that arises is how the international community should respond. This article reviews the gaps in the international investment arbitration regime and then identifies two broad strategies to address the issue of accountability. The first strategy would be to build on and strengthen the existing international investment arbitration regime, which would imply its re-engineering. A second strategy would be to establish a regime providing a new forum and an avenue for dedicated international criminal investigators to be paired with dedicated anticorruption courts that would handle criminal complaints. The Anticorruption Protocol to the United Nations Convention against Corruption (APUNCAC) represents an example of the second strategy. The APUNCAC is a model convention that calls for the implementation of a system comprising dedicated international criminal investigators and dedicated anticorruption courts, in addition to a system where plaintiffs could pursue civil class actions and seek treble damages. The APUNCAC represents a more radical strategy for addressing corruption on the international level. In addition, the APUNCAC would also permit civil class actions seeking treble damages. Overall, the APUNCAC would offer claimants an opportunity to pursue their claims in a neutral forum.

GMR: grounded at the Maldives international airport

Learning outcomes The learning outcome of this paper is to understand the geopolitical aspects of international business. Assessing the political risk inherent in international investment projects. Maintaining a favorable corporate image in the host country despite apparent hostilities. Analyzing the risks associated with doing business in an emerging market. Case overview/synopsis In February 2019, local newspapers in the Maldives published unconfirmed reports that the Indian company GMR was reinvesting in the Maldives. GMR had secured a contract in 2010 for renovation/expansion of The Maldives International Airport. However, the contract created political turmoil, with opposition parties objecting to some clauses. People considered GMR closer to the incumbent President, Mohammed Nasheed. The unstable political scenario forced President Nasheed to resign amidst allegations of corruption. The new President showed hostility toward India and GMR while making overtures to China. He canceled the airport contract and awarded it to a Chinese company. GMR went to the international Tribunal in Singapore. The tribunal upheld the Maldivian government’s right to terminate the agreement but awarded GMR a compensation of US$270m. In 2019, a new government came to power in the Maldives, with Mohammed Nasheed enjoying a commanding position. The government pledged to accept the judgment of the Singapore International Tribunal. The local media discussed the possibility of the return of GMR to the Maldives after seeing some senior GMR officials in the Maldives. However, it was not clear whether it would be a good idea for GMR. Complexity academic level Master's level program. Supplementary materials Teaching notes are available for educators only. Subject code CCS 11: Strategy.

Organizing Industrial Construction of Nuclear Power Facilities in the Global Nuclear Power Markets taking into account Reliability Simulations from Pre-Investment Stages

This article considers the problem of ensuring the growth of export capacities of the industrial construction of nuclear power facilities in the global markets through the simulation and management of the organizational reliability during the pre-investment stage. This research is made relevant by a high level of uncertainty in the implementation of international investment projects for nuclear power when over 60% of the world’s nuclear reactors are constructed with delays and at increasing costs. The purpose of this research is to develop methodological approaches and practical recommendations on the modeling and complex management of organizational reliability indicators for the industrial construction of nuclear power facilities in the global markets during the pre-investment stages. This article presents the following results: the simulation procedure for the organizational reliability and life cycles of the industrial construction of nuclear power facilities developed by the authors, development specifics and trends for this type of industrial construction, recommendations concerning the organization of industrial construction to improve the reliability of nuclear power facility construction based on a managed factor space and multi-criterion optimization of calendar schedules. The conceptual approach to modeling and management of the organizational reliability of nuclear power industrial construction and operation life cycles in question can be determined as a promising market tool that can be used to regulate the increase of the competitive abilities of the Russian branches of Rosatom State Corporation. This stipulates facilitating the growth of the industrial construction of nuclear power facilities in the global market from the current share of Rosatom State Corporation of 26% (120 billion USD) to 40-50% before 2035 through the improvement of the organizational reliability of the implementation of this type of investment projects.

Organization of Industrial Construction of Nuclear Power Plants in the Global Market, Taking into Account Reliability Modeling at Pre-investment Stages

The problems of managing the organizational reliability of the pre-investment phase of the industrial construction of nuclear power plants in global markets have been investigated. The relevance of the topic is determined by the great uncertainty in the implementation of international investment projects of nuclear power plants. This is confirmed by the facts of construction delays and an increase in costs by more than 60% of nuclear reactors under construction in the world.Purpose of research: development of methodological approaches and practical recommendations for modeling and integrated management of organizational reliability indicators of industrial construction of nuclear power plants in the global market at pre-investment stages.Methods: a set of systematic methodological approaches based on methods of comparison, analysis, synthesis, modeling, forecasting, expert assessments, mathematical statistics, economic and mathematical modeling, factorial, situational and retrospective analysis, scenario method, morphological and logical analysis.Results: the author's methodology for modeling organizational reliability and the structure of the life cycle of industrial construction of nuclear power plants; features and development trends of this type of industrial construction; recommendations in the field of industrial construction organization to increase the reliability of NPP construction based on a controlled factor space and multi-criteria optimization of calendar schedules.Conclusion. The studies performed have confirmed the relevance of studying the subject of research associated with solving the problem of increasing the organizational reliability of industrial construction of nuclear power plants in global markets, formed and managed at the pre-investment stages of planning these types of investment projects. At the same time, the main result of these studies can be considered as an increase in the competitiveness of the Russian divisions of Rosatom State Corporation in the international market with an increase in its current share of 26% (130 billion US dollars) to 40-50% for the period up to 2035.

PROBLEMS AND WAYS TO ACTIVATE INVESTMENT ACTIVITY IN UKRAINE

The article examines the current state and problems of the development of attracting foreign direct investment. The author determined that the most investments in Ukraine are made by such countries as Cyprus and some countries of the European Union. It is proved that foreign investment is one of the most effective ways to develop economic, social, environmental and other spheres. It is determined that the key problems in attracting foreign investment today are: political instability, legislation, high inflation, and undeveloped infrastructure. The author has identified trends and explored the prospects for the development of attracting foreign direct investment, which allows us to demonstrate the dynamics of investments, which is considered an indicator of changes in the level of trust and rating of the country as a whole. Foreign investment plays a major blow to the economic development of many countries. Raising in the economy largely provides effective investment activity of Ukraine, which works by showing the dynamics invested in the country, so the investment climate in any country stands out from the main factors of socio-economic activity. situation. Thus, projects, innovative investments can be of great benefit for the economic development of the country, help to solve economic problems, so attract investors necessary and justified. In order to increase investment attractiveness, the country needs to implement a set of measures on the part of states and affairs, and as Ukraine has a strong production potential, thus concentrating the enhancement on the realization of its competitive advantages. It is concluded that the main directions of increasing the efficiency of investment activities, now and in the near future, will be: new modern infrastructure, improved investment, attracting foreign investors and improving the tax system. To improve the investment climate in Ukraine and increase the flow of foreign investment, it is necessary to promote the development of science, improve the regulatory framework in the field of investment, participate more actively in international investment projects, and develop small and medium-sized businesses in Ukraine.

МОЖЛИВОСТІ ВИКОРИСТАННЯ ПОТЕНЦІАЛУ ХЕДЖ-ФОНДІВ ДЛЯ УКРАЇНСЬКИХ ІНВЕСТОРІВ

Studies show that the world of finance is not standing still; new methods and tools of attracting and using financial capital are constantly appearing. This, in turn, allows you to implement modern, more complex, strategies for managing profitability and risk of financial transactions. One such tool is hedge funds, which today are the most objective indicators of the development of the global financial system. This is due to the fact that they not only use modern financial technologies to make a profit, but also adapt all their actions to any changes in the world economy and international finance, and sometimes, as practice shows, shape these changes. That is why this investment instrument is one of the most popular in the European and American markets. Their high flexibility attracts the most talented financial managers to hedge funds, who are able to demonstrate impressive long-term results. The purpose of the article is development of an international investment project «Creating a hedge fund with Ukrainian investments» and evaluating its effectiveness. Hedge funds are a specific class of alternative investment funds that use modern capital management strategies, which are not available to «traditional» funds, have the right to invest their participants in any assets, use a hedging strategy for capital management, i.e. simultaneous purchase and sale of assets, trading in various instruments. This is the fastest growing segment of the financial market. The specifics of their activities allow hedge funds to make a profit even during periods of falling stock and bond markets. Hedge funds focus on the maximum return in terms of optimal (specified) risk or the minimum risk in terms of optimal return. Recently, complex algorithms and analytical methods have been developed to attract artificial intelligence for creating profit. Hedge funds are of special interest to Ukraine, but, unfortunately, have not yet appeared in our country. The lack of hedge funds in Ukraine is explained by the lack of necessary laws to regulate the derivatives market; insufficiently active stock market; psychological unpreparedness of domestic investors for possible high risks; lack of qualified specialists. It is proposed to turn to foreign experience and attract the organizational tools that are available today. Namely, to open hedge funds under the jurisdiction of offshore countries and with the involvement of outsourcing for their management and operation. It proposed the creation of a closed, unregulated, discrete hedge fund. The completed calculations of the project for a period of five years demonstrated its feasibility with a positive value of net present value, a discounted payback period of four years and a profitability index of more than one unit.

Investment efficiency of business in Ukraine: realities and assessment methodology

The article systematized factors of investment attractiveness and investment climate in Ukraine. The expediency of supplementinganexistinglist of components of investment climate is substantiated by two additional factors. Themechanismo factionoftheproposedfactorsthatreflectthenegative effectin the developmen to freformsand innovations, aswellas the economic efficiency of construction projects on the financial result, expected from investigations, isrevealed. The trends in the developmen to finvestment activityinUkrainein 2015 - 2020, the existence of reserves for increasing the economic efficiency of investments and the need for their calculation witht hehelpof a special methodological approac hare analyzed. The methodical approach to the evaluation of investment efficiency of constructionis developed, which is based on the magnitude of the multiplier of capital investment in construction inthelong-termperiodandrefinedtheboundariesoftheretrospectivehorizon, which are necessary to determine such a multiplier. The rapid importance of aninvestment multiplier of construction isestablis hedand a methodological approach to qualitative interpretation of this indicator issubstantiated. The basis of a methodological approach is the results of a cluster analysis of aninvestment multiplier in the contex to fvarioustypesofconstructionandregions, the methodof K-medium, aswellaspostulatesofthetheoryoffuzzysets. Within the framework of the developed methodological approach, the "investment attractiveness of construction" characteristicsis presentedin the form of a fuzz yterm-shear, which combines three terms: "Lowefficiency", "averageefficiency", "highlevelofefficiency". Inaccordance with descriptiv estatistics of thereceived clusters, the parameters and type of functions of affiliation, the boundaries of clusters that directly affecttheuse of correctivea mendments to the value of the economic effectof capitalinvestment to the level of the contractor-executor of construction work are substantiated. The sizeofther is kfactorisestablishedtakingintoaccountthetypeofconstructionandmedium-layervalues ​​ofmultipliersofcapitalinvestmentinconstruction. Theuse of the proposed Metdic approach to the analysis of investment efficiency inconstruction makesitpossible to increase the accuracy of calculations on th epre-investmentst age of construction, aswellastoimprovemonitoring of capital investment development, carried out in the process of implementing national investment programs and international investment projects.

ОРГАНИЗАЦИОННО-ЭКОНОМИЧЕСКАЯ НАДЕЖНОСТЬ СТРОИТЕЛЬСТВА ОБЪЕКТОВ АТОМНОЙ ЭНЕРГЕТИКИ НА ГЛОБАЛЬНЫХ РЫНКАХ АЭС НА ПРЕДИНВЕСТИЦИОННЫХ ЭТАПАХ

The problems of ensuring the growth of the export potential of investment projects of nuclear power plants in the global markets of nuclear and energy construction by modeling and managing the organizational and economic reliability of their life cycles at the preinvestment phase are investigated. The relevance of this topic is determined by a significant level of uncertainty in the field of reliability of the imp- lementation of international investment projects of nuclear power plants, when more than 60% of nuclear reactors in the world are being built with a delay in construction and with an increase in costs. The aim of the research is to develop methodological approaches and practical re- commendations for modeling and integrated management of indicators of organizational and economic reliability of the construction of nuclear power facilities in the global NPP market at pre-investment stages. The article demonstrates the scientific results: a methodology for modeling the organizational and economic reliabi- lity of the life cycle of industrial construction of nuclear power plants; features and development trends of this type of industrial construction in the global NPP market; recommendations in the field of investment management of indust- rial construction to increase the organizational and economic reliability of NPP construction based on a controlled factor space and multicriteria optimization of calendar schedules. The investigated conceptual approach in the field of modeling and managing the organizational and economic reliability of the life cycles of industrial construction and operation of nuclear power plants in global markets is defined as a promising market tool for increasing the competitiveness of Russian divisions of Rosatom State Corporation. This implies ensuring the growth of industrial construction of nuclear power plants on the international market from the current share of Rosatom State Corporation of 26% (130 billion US dollars) to 40–50% for the period up to 2035, by increasing the organizational and economic reliability of the implementation of these types investment projects.

Economic-Mathematical Model for Assessing the Sensitivity of International Innovation and Investment Projects

International innovation and investment activity occupy a special place in the system of modern international business. The authors propose an economic and mathematical model for assessing the sensitivity of international innovation and investment projects by the criterion of net present value. It is advised to use the obtained sensitivity indicator as an additional one in assessing the economic efficiency of international innovation and investment projects of an enterprise. The proposed model makes it possible to determine the effect of several internal parameters simultaneously on the net present value of the project.

СOMPLEX FOR СULTIVATION AND РROCESSING OF АLGAE AS РART OF THE PROJECT TO CREATE IN UKRAINE A HIGH-TECH COMPLEX FOR THE PRODUCTION OF SYNTHETIC MOTOR FUEL

The International Investment Project «Creation in Ukraine of a High-Tech Complex for Processing Coal into Motor Fuels» provides for the use of a technological line for growing algaes, by utilizing significant technological waste from the main technological lines of the Project (low potential heat; methane gas from degassing of a raw mine; the remainder of the air distribution for the production of process oxygen; carbon dioxide obtained from coal gasification, etc.). Hydrothermal carbonization is currently the most advanced biomass processing technology. It completely prevents pollution and has a number of significant advantages over other methods of biomass treatment. These advantages make it possible to consider hydrothermal carbonization to be the best available technology for the production of biochar, liquid biofuel and other products from non-food biomass. Bibl. 11, Fig. 6.

A Strategy of Economic and Industrial Development of Russia in the Worldwide Instability Environment

The subject of the researchis the development of the Russian economy through enhancing its management efficiency.The relevanceof the problem is caused by the need to overcome the slow economic development before 2024–2030 as well as by fundamental changes in the global economy associated with the collapse of the globalization policy and the transition to the state protectionism, which requires changing the approach to the domestic economy management. Other important factors are a variety of economic development strategies available and the need to choose and justify an optimum strategy for the development of Russia.The purpose of the researchwas the development of a sound economic strategy and guidelines for its implementation with account for aggregate influencing factors. A comprehensive strategy for the development of the national economy is proposed based on the optimal combination of defense-industrial, resource, stabilization and innovation strategies while taking into account the specifics of Russia. To evaluate the condition and prospects of the Russian economic development, two groups of factors have been identified: external economic and internal economic. With account for their impact, the guidelines for the integrated economic strategy implementation are proposed. As a result of the research findings,it is concludedthat to achieve the goals set it is reasonable to ensure the balanced development of foreign economic relations based on joint large-scale international investment projects; increase the manufacturing and exports of hightech and deep processing products; ensure intensive growth of labor productivity and product quality based on industry modernization. The research was based on studying and analyzing information from domestic and foreign sources, Presidential decrees, resolutions and decisions of the State Duma and the Government, materials of the Russian Statistical Service (Rosstat) and relevant periodicals. In the course of the research, methods of analysis and synthesis, selection of the main link and classification were used. The results of the research can be helpful in the implementation of the economic development strategy and for management of structural transformations.

TERMINOLOGY ELEMENTS OF PUBLIC ADMINISTRATION OF INTERNATIONAL INVESTMENT PROJECTS

TERMINOLOGY ELEMENTS OF PUBLIC ADMINISTRATION OF INTERNATIONAL INVESTMENT PROJECTS

Contractual Joint Ventures in International Investment Arbitration

Contractual joint ventures, sometimes also called as consortiums, where several participants, without creating a new entity, unite their personal efforts and material resources with a view of achieving a certain common goal, remain a popular organizational form of large-scale international investment projects all over the World. In view of significant amount of their investments in these projects, any prospective foreign participants may wish to consider whether structuring their activities through a contractual joint venture would allow them to effectively protect their economic interests against possible adverse actions of a host State. Or, they should rather create a joint venture in the form of a partnership or a corporation under the laws of the project’s host State or under the laws of another country? To answer these questions, the article analyses the status of contractual joint ventures and their participants in international investment arbitration and compares it with the status of partnership and corporate joint ventures and their participants. The analysis is primarily carried out on the example of contractual joint ventures under Swiss law, because this law has been frequently chosen by participants of international investment projects as applicable law in a wide variety of international projects. Although the absence of legal personality of contractual joint ventures prevents them from acting as a claimant in both ICSID and non-ICSID investment arbitration, it does not by itself preclude individual claims of their participants in both types of arbitration. Furthermore, the comparison between possible amounts of participants’ individual claims reveals that under similar circumstances foreign investors in contractual joint ventures could potentially recover the same amount of damages as those in partnership and corporate joint ventures. On the basis of this comparison, the article argues that the use of contractual joint ventures would not put foreign investors in a disadvantageous position as concerns the possibility to protect their economic interests against an adverse action of a host State as compared with the participants in other two types of joint ventures.

China's New Role in the International Financial Architecture

The rise of China is challenging the international financial architecture in a number of ways. This paper highlights three that are of critical importance: the challenge of absorbing massive Chinese savings; the incorporation of China into a cohesive global financial safety net; and the organisation of China's participation in funding the demand for international investment projects. The global financial architecture needs to be reformed. But what role should China play? The paper defines the options open to China and the opportunities and barriers it will face. We argue that China can work with the established economic powers in reforming the existing architecture. At the same time, China seeks cooperation in building new institutions and organisations that fill gaps in the existing arrangements. But no matter how international financial diplomacy plays out in the near term, deep financial and economic reform at home will alone deliver China a central role in the international financial architecture. Domestic reform could also attend to some of the challenges that currently plague China's impact on the system. The success or failure of these domestic reforms will be at the crux of the strength or fragility of the international financial architecture in the years ahead.

Manipulating the discount rate when valuing international investment projects

The article deals with the practice of evaluation of international investment projects using the cash flow discounting rate. The problem of the discount rate manipulating is connected with the category “country risk”, which often determines the impact on the rate and, accordingly, the investment decisions. Critically examines existing approaches to the definition of “country risk”. Categories that make up a complete picture of “country risk” are distinguished. The general defect of existing country risk concepts is revealed – the fact that the measurements are based on rather subjective assessments and do not have sufficient empirical evidence, the fact that almost all of them have a clear liberal democratic bias: as a rule, drawing attention to the relationship between the political system and stability, the liberal democratic structure of society is recognized as the most stable, without any acceptable scientific evidence, followed by autocracy, military dictatorships and new independent states. The author affirms the lack of a clear and unambiguous definition of this category, the controversial approach to ranking of countries. The author analyzes and proves the bias of rating assigned by foreign companies. As a conclusion the need to create a national research concept of the “country risk” category is аffirms with the subsequent promotion of national rating agencies to the world market. The author's conception of the category “country risk” is proposed, an author's definition is given to this notion, it is recommended to establish the primacy of national ratings over foreign ones both in domestic and international relations in order to have independent influence on international capital flows. It is also proposed the evaluation of projects based on the dynamic discounting rates, especially for long-term strategic projects.

POLITICS OF CONTEMPORARY “SILK ROADS”

Recently in mass media we can find the idea about a new Silk Road or the concept of "Silk Road Economic Belt" which has been formulated by the Chinese PresidentXi Jinping on September 7,2013, during his official visit to Kazakhstan. This project is not only the creation of a transport, power and trade corridor, and also the project which will promote development of tourism in the region and to strengthening of cultural exchanges of China with the countries of Central Asia, it also includes construction of a network of high-speed fiber-optical networks. The economic strip of the Silk Road will begin in China and pass across the Central and the Southern Asia, part of branches across the territory of the Russian Federation and to leave to Europe. This international investment project assumes creation of a continental transport way. For implementation of overland part of "A great Silk Road is a three railway corridors (northern, central have to be constructed and southern) They have form a basis for development of other means of transport, including automobile subsequently. Construction of these three railway corridors acts as the most important and necessary stage of implementation of the project. The government of China declares that creation of an economic belt of the Silk way is a revival of once prospering trade-transport and cultural corridor from Asia to Europe which will promote activization of a friendly exchange between the people of the different countries. Further all this has to connect trade and economic space of Europe and Asia in a whole that has to serve implementation of deeper economic cooperation, between the countries participating in him, to increase in a trade turnover and expansion of scientific and technical exchanges between them.