Period Of Economic Instability Research Articles

Navigating the water–energy nexus amidst the Lebanese economic crisis

ABSTRACT Lebanon's economic crisis has disrupted the country's energy and water sectors, highlighting their interdependence. The methodology involves surveying 150 municipalities across all Lebanese governorates, ensuring a comprehensive coverage of public and private water resources. Data on water and energy were collected before and during the crisis to explore this nexus during periods of economic turmoil. The findings reveal a decline in water provision during the crisis, with the average weekly water supply plummeting from 49 h in 2019 to 22 h in 2023. Concurrently, the use of water tankers has surged from 26 to 44%, indicating a concerning shift in water acquisition methods. Despite the crisis, conventional water sources remain predominant, while unconventional sources account for less than 1% of the total supply. In response to the energy shortage, renewable energy sources have gained traction in residential, commercial, and industrial sectors. The scarcity and rising cost of electricity have driven the adoption of solar photovoltaics in the water sector, reaching 4.8% for extraction from underground reservoirs and 2.8% for distribution. Similarly, the use of solar water heaters has increased from 7.9 to 15.4% in 2023. These findings underscore the interplay between energy and water security during periods of economic instability.

Navigating Crisis: Strategic Adaptations in Family Businesses Amid Economic Uncertainty

This research delves into the strategic adaptations made by family businesses to navigate crises amidst economic uncertainty. Family businesses represent a significant portion of the global economy and face unique challenges during periods of economic instability. Through a comprehensive review of academic literature, case studies, and expert insights, this study identifies key strategies employed by family businesses to withstand turbulent economic conditions. The findings highlight the critical role of clear communication and transparent decision-making processes in ensuring business resilience during crises. Family businesses that prioritize open dialogue among stakeholders are better equipped to respond effectively to challenges and maintain continuity. Moreover, flexibility within business models emerges as essential for adapting to rapidly changing market dynamics. Family businesses often leverage their inherent strengths, such as strong relationships with customers and communities, to navigate crises successfully. Prudent financial planning and risk management are identified as fundamental for safeguarding the financial stability of family businesses amidst economic uncertainty. Effective management of resources and proactive risk mitigation strategies enable businesses to weather downturns and position themselves for recovery. Additionally, the study emphasizes the importance of maintaining a long-term perspective and fostering family unity during crises. Family businesses that prioritize cohesion and collaboration among family members demonstrate greater resilience and are more likely to emerge stronger from adversity. By synthesizing these insights, this research provides valuable guidance for family business owners, managers, and policymakers facing economic uncertainty.

Polish Studies on Saturation Diving and Practical Application of Their Findings. Part III a Technical and Organisational Issues of the Implementation of Saturation Diving in Poland from the 1990s Onwards. Part 1

Abstract This article is another in a series of articles on the research and implementation of saturation diving technology in Poland. It discusses the specificities related to the implementation of this technology against the background of economic and historical conditions in our country. In Poland, the issue of saturation diving for the needs of the emerging offshore mining industry has been for over a dozen years dealt with by the Department of Diving Equipment and Technology of Underwater Works (Polish abbr. ZSNiTPP). In parallel, deep diving technologies were developed, in the first stage, as a basic diving technology and, since 1994, as complementary to ensure the full backup for saturation diving. Since 1995, saturation diving has become an everyday occurrence in the Polish economic zone of the Baltic Sea. This article shows the difficult path that the implementation of saturation diving took during a period of economic instability when the scale of the domestic offshore industry's facilities was small compared to global companies. Selected animators and participants in the implementation are recalled for two periods: one marked with the cooperation with the Italian underwater services company RANA and the other one, a period of implementation of long-term underwater works based on national capabilities. The article also considers the technical and organisational conditions for the implementation of saturation diving for the Polish mining industry. In 1990, the Oil and Gas Exploration and Production Company Petrobaltic (today LOTOS) played one of the key roles in the implementation of saturation diving in our country. The implementation of saturation diving in Poland was linked to the only operational diving system of Italian production, the Af-2, which enabled scientific research related to the application of new technical solutions and testing under operational conditions, as well as contributed to the development of scientific, engineering, and medical staff for the Polish offshore industry. The company played one of the main roles in the implementation of saturation diving in our country The 1995 became a landmark year in the history of saturation diving in Poland, as well as in the Baltic Sea. Through this technology, the process of installing the first two underwater exploitation heads on production wells B3-7 and B3-10 was initiated. The saturation diving was possible thanks to the leasing of the Af-2 diving system by Petrobaltic and its subsequent purchase by the Naval Academy in 1998.This system, after a series of upgrades, is still in service today.

Innovative and technological development of the regions during the period of economic instability

Currently, the world economy has entered a period of unsteady development, characterized by the aggravation of problems that cannot be solved within the framework of existing equipment, technologies, management methods, etc. These problems are caused by the completion of the 5th technological order and the birth of the 6th, as well as the beginning of the 4th Industrial Revolution. The existing world experience convincingly proves that during periods of economic transformations caused by changes in technological structures, innovative development in the direction of innovative advance is a priority. The countries that have embarked on the path of advanced innovative development are the leaders of economic growth, ensuring the economic well-being and high quality of life of their peoples. For the enterprises of the domestic industry, which retains a significant innovative potential, the strategy of advanced innovation is virtually no alternative. The article examines the state of innovation and technological development of Russian regions during the period of economic instability. Attention is paid to the peculiarities of innovative growth of regions. Based on statistical data, the analysis of the main indicators reflecting the innovative activity of enterprises in the country’s industry is carried out. The main regional problems hindering innovative development are identified and a number of priority measures necessary for decision-making in the field of innovation promotion are proposed.

PROBLEMS OF ASSESSING THE FINANCIAL STANDARD OF ENTERPRISE IN THE MIND OF THE CRISIS

PROBLEMS OF ASSESSING THE FINANCIAL STANDARD OF ENTERPRISE IN THE MIND OF THE CRISIS

THE IMPACT OF PRODUCTIVE AND CONSUMPTIVE FINANCINGS ON INDONESIAN ISLAMIC BANKING PROFITABILITY: MARKOV SWITCHING DYNAMIC REGRESSION

This study investigates the effect of Islamic bank financings on banks' profitability during two distinct periods, namely stable and unstable conditions. This study also examines the profitability tendencies of banks during the two periods mentioned. To answer these objectives, this study applies the Markov Switching Dynamic Regression technique to 173 monthly observations from the Islamic commercial banking industry from December 2007 to March 2022. In stable times, the results indicate that productive financing harms the profitability of Islamic banks. Productive financing entails greater credit risk and can raise principal-agent concerns, moral hazard, and adverse selection. Consequently, productive financing necessitates higher monitoring costs. In an unstable period, consumptive financing negatively affects Islamic bank profitability. The proportion of consumptive financing exceeds the proportion of productive financing. This then increases the risk of credit and default, especially during economic instability when many consumers request reconditioning and even restructuring of financings from the bank. In addition, the results indicate that the profitability of Islamic banking is anticipated to endure longer in stable regimes and to recoup more quickly from unstable or crisis regimes. The findings of this study will likely serve as references and materials for banking management decisions, particularly financing decisions during periods of economic stability and crisis. Islamic banking should prioritize consumer financing during periods of economic stability and increase the proportion of productive financing during periods of economic instability.

Development of theoretical and methodological issues of resource conservation and resource efficiency in Russian industry

At present, during the period of economic instability, total economic sanctions against Russia, military conflicts, issues of ensuring resource efficiency and increasing resource conservation of industrial enterprises, increasing their competitiveness, as well as ensuring import substitution processes, due to the partial withdrawal of foreign enterprises from domestic markets, resource conservation policy is becoming particularly relevant for enterprises industrial complex of the Russian Federation. The paper provides a theoretical analysis of the category of resource conservation, various approaches to its interpretation, determines the need for a resource conservation policy and directions for the development of resource efficiency of industrial enterprises, through the introduction of material and non-material factors of resource conservation research, based on the methods presented in the valuation. The paper proposes a methodology for assessing resource conservation based on the use of indicators of the functioning of enterprises of the industrial complex. The methodology is based on the use of the production function, taking into account the variation of the evaluation parameters, determining the amount of costs and resources.

Анализ динамики развития и тенденций страхового рынка

The article analyzes the behavior and trends of the insurance market of the Russian Federation during a pandemic. The transformation of the terms of business changed the forms and processes of the insurance business, which dynamically responded to the changed conditions. Insurance companies reacted differently to the period of restrictions associated with the COVID-19 pandemic. The study of the main areas of insurance activities and organizations that have overcome the transformation and were able to develop steadily determines the purpose of this study. Assessing the activities of the insurance market by the authors, special attention is paid to the needs that arise in the market and the analysis of more demanded areas of insurance activity. The information basis for the study was statistics presented by Rosstat, as well as data from the Bank of Russia. Based on analytical studies and comparative analysis, the results of evaluating the efficiency of certain areas of the insurance industry were obtained. System analysis methods made it possible to compare the obtained results of the insurance market and the economic situation in the country. The assessment of insurance performance indicators during the studied time period from 2019 to 2021 made it possible to assess the impact of the COVID-19 pandemic on development indicators and made it possible to investigate the degree of impact on industry indicators. Within the framework of the results obtained, trends in the development of the insurance industry and possible directions for further development were determined. The importance of state support measures and the importance of developing comprehensive measures that can provide the insurance industry with opportunities and directions for economic development during a period of economic instability are noted.

Examining the Sustainability of Contributions of Competing Core Organizational Capabilities in Response to Systemic Economic Crises

A dynamic capability view is used in this study to explain how organizational capabilities operate effectively and efficiently in stable environments and respond dynamically to changing conditions in their operating environments. Such capabilities enable organizations to both create and sustain their performance. When faced with a systemic change in the environment, such as a global economic crisis, organizational capabilities may no longer contribute effectively to sustain organizational performance or their survival. In this study, we examine the effectiveness and sustainability of organizational capabilities in response to a systemic economic crisis. We do so through examining these issues in a broad multiyear sample of U.S. credit unions through the global financial crisis. In this context, organizations utilized two types of competing capabilities: explorative capabilities to increase revenues and/or exploitative capabilities to reduce expenses. The effectiveness of these capabilities and the sustainability of the resulting performance implications of their combined deployment remains under-theorized and insufficiently examined, particularly under conditions of high economic uncertainty. We examine these issues using a sample of 1127 large U.S. credit unions collecting comparative data during a period of economic stability from 2001 to 2004 and during a period of economic instability from 2006 to 2009, before and after the 2008 global financial crisis. We perform multiple regression analysis to examine the contributions and sustainability of organizational capabilities to relative performance. Interestingly, we find that in stable times, the explorative capability to increase revenues appears to contribute more to performance, while in the crisis period, the exploitative capability to reduce expenses appears to contribute more to performance. Further, the combined effect of deploying both “competing” capabilities simultaneously is related to performance only when the environment is stable and can be detrimental during a crisis. The results suggest that using expense decreasing capabilities (but not revenue increasing capabilities or both combined) is better when facing an economic crisis.

Digital transformation of banks as a way to sustainable development of the economy

The article analyzes the features and modern trends of the transformation of commercial banks, the main challenges and also provides a comparative assessment of the transformation of domestic banks with the banks of developed countries in the period of economic instability, examines standards for reforming the banking sector, as well as international experience in digital transformation of the sector. As a result of the analysis, it was revealed that the transformation of the banking sector is strongly influenced by governmental regulators, the level of digitalization of the economy, corporate culture in banks and the presence of a clear strategy for the gradual development of banking activities.

Erratum to the article: “Theoretical aspects of consolidation of business organizations in the period of economic instability”

The article is retracted from Perm University Herald. Economy due to the incorrect information about the sources used in the research, improper citation and links to the works of other researchers.

Statistical Analysis of Changes in Tobacco Consumption amid the COVID-19 Pandemic

The author analyzed problems related to the prevalence of smoking and the need to combat the tobacco epidemic in Russia on the basis of current statistics and special surveys. Despite the fact that the number of smokers in Russia has been decreasing since 2009, there are new challenges for the authorities and society in their efforts to reduce the prevalence of smoking due to the emergence of new alternative tobacco and nicotine products, as well as changes in consumption habits due to the crisis caused by the COVID-19 pandemic. According to surveys carried out by the National Research University Higher School of Economics (from 2017 to 2020) and Rosstat (from 2011 to 2020), changes in tobacco consumption and smoking preferences have been identified, especially during the period of economic instability and the COVID-19 pandemic.The article explains the author’s position that despite the general decrease in the number of smokers (up to a quarter of adult population – according to data for 2020), their population is heterogeneous, and within it there were various processes, depending on the sex of the smoker, the intensity of smoking, preferences for nicotine-containing products. Firstly, over the period under review, the proportion of former smokers who have relinquished the habit has increased; secondly, the proportion of heavy smokers who used to consume a pack of cigarettes per day has decreased, and, conversely, the proportion of those who smoke about a quarter of a pack per day has increased. Smoking among women has two characteristics: lowering the age of onset of smoking to 19 years, along with increasing the daily consumption of cigarettes to an average of 12. Men, on the other hand, tend to reduce the daily consumption of cigarettes to 16 cigarettes on average. The proportion of smokeless tobacco products and electronic nicotine delivery systems is beginning to grow, but is still not a complete substitute for conventional cigarettes, which smoke about 95% of smokers. Finally, owing to the pandemic and crises in economy, the trend towards self-isolation has increased the number of people who smoke for the first time at a sufficiently mature age (30 years and older).Therefore, the results of the study revealed both certain patterns in tobacco consumption over the years preceding the pandemic and the impact of COVID-19 on social and economic processes involved in smoking that governance structures now need to take into account.

Gender Differences in Consumer Debt Stress: Impacts on Job Performance, Family Life and Health.

During periods of economic instability, women may suffer uniquely from economic stress compared to men. We examine stress effects from financial debts by gender with monthly national-level household data starting in 2006, going through the Great Recession in the U.S and into the recovery period. We find that women on average in the sample exhibit approximately 30% overall greater debt stress scores than men after controlling for income, debt levels and other socioeconomic variables. Underlying factors for both genders are examined, including impacts on job performance, family life and health. Sources of disadvantage for women and implied policy needs are explored. Our findings and their consequences are examined relative to economic circumstances for women that have been documented as a result of the pandemic-induced recession.

СЫРЬЕВОЕ ПРОТИВОСТОЯНИЕ В УСЛОВИЯХ САНКЦИЙ: ВЫЗОВЫ ДЛЯ БЮДЖЕТА

In modern conditions, the problem of budget dependence on oil and gas revenues comes to the fore. The paper considers the impact of oil and gas sanctions on the budgetary stability of the Russian Federation, as well as the main directions for the development of the economy of the Russian Federation under restrictions. The aim of the work is to assess the sustainability of the federal budget in view of the sanctions imposed. The scientific significance lies in the analysis of the budgetary state during periods of economic instability. The practical significance of this article is to determine the future state of the budget of the Russian Federation and the development of the country's economy. As a result, it was found that the budget really depends on oil and gas revenues, which negatively affects the stability of the economy, since these areas are limited in the first place during the geopolitical struggle. However, there are enough other directions to ensure the stability of the budget. The article presents ways to solve problems in conditions of restrictions.

ОРГАНІЗАЦІЯ ТА ШЛЯХИ ОПТИМІЗАЦІЇ АУДИТУ ДЕБІТОРСЬКОЇ ТА КРЕДИТОРСЬКОЇ ЗАБОРГОВАНОСТІ ПІДПРИЄМСТВА

In the process of economic activity, each organization is faced with the need to carry out various operations in which some resources are transformed into others, such as materials, raw materials – into finished products, products – into funds, and funds again for materials, raw materials. This is how the economic cycle takes place. As a result, the company creates certain obligations, the successful implementation of which helps the company to operate successfully in a competitive market. But any economic activity is impossible without costs, the need to purchase resources to implement activities. Without the acquisition of tangible assets from third parties and the investment of these values in production, the organization can not function, so the organization can not operate without payment for various goods, services and works. The problem of accounting for debts incurred in settlements with suppliers and contractors, buyers and customers is more than relevant, debt accounting is the most important part of the accounting system in the organization, settlements can be made daily. During periods of economic instability, the risks of non-payment or late payment increase, which often leads to the formation of receivables and payables. In part, these debts may be present in the company and do not harm the overall financial condition, if they are within acceptable limits. Overdue accounts payable and doubtful accounts receivable indicate that there has been a failure to work with suppliers, customers and clients, which requires immediate action to prevent negative consequences. Changing the level of receivables and payables also leads to a change in the financial position of the organization for the better or worse, which requires a well-thought-out policy in the field of debt management in order to improve the overall condition of the enterprise. The level of information on these elements of settlements, the state of financial stability and solvency of economic entities depends on the reliable organization of accounting and audit of receivables and payables of the enterprise. This indicates the need for a comprehensive study of theoretical and methodological justification and optimization of accounting and auditing of receivables and payables of enterprises.

FINANCIAL ADVICE AND ITS IMPACT ON THE GROWTH OF THE PUBLIC WELFARE OF THE POPULATION

Introduction. Ensuring the well-being of the population involves increasing their financial literacy, financial security, strengthening the stability of the country’s financial system and the competitiveness of the domestic economy, the formation of long-term investment demand, formation and development of the financial market in Ukraine. During the period of economic instability in Ukraine, the problem of protecting the rights of consumers of financial services, including low public awareness, lack of a code of conduct for financial institutions and insufficient capacity of supervisory authorities to monitor the situation in the current situation. In these conditions, there are urgent issues to ensure the functioning of the institute of financial advisers, who on a paid or free basis will provide services to citizens to improve their financial education, choose the optimal package of services in the financial market, develop skills to manage their own financial resources. The purpose of the article is to analyze the impact of financial advice on increasing the welfare of the population by determining the level of financial literacy of citizens and the use of tools for government incentives and promote the development of financial advice in Ukraine. Results. An analysis of the level of financial literacy of the population in Ukraine and concluded that the use of financial advice for individuals is particularly relevant for Ukraine given that a significant proportion of the population has not only superficial knowledge of financial market principles and opportunities to use financial products and services, but also distrusts financial institutions. As a result, one of the main problems of low public confidence is the lack of sufficient information about financial institutions. It is, first of all, about informing the population about the full cost of financial products, the size of the commission for the provision of services, the rules of its collection. Conclusions. Proposals for the formation of the National Strategy for Improving the Level of Financial Literacy of Citizens with Active Use of Financial Advisory Services, which can be carried out in two directions: public financial consulting for the population by ensuring increasing the level of financial literacy of citizens free of charge in various forms; private independent financial consulting on a paid basis focused on the provision of services for the formation of individual financial plans to achieve financial goals in the future.

Urban development and interethnic intolerance: Evidence from Russia

This work is devoted to the study of the impact of urban development on interethnic intolerance. Although studies on the impact of urbanization and the economic well-being of cities on interethnic intolerance have been conducted in other countries, no similar scientific work has been conducted in Russia. The purpose of this paper is to determine factors related to urban development that influence the level of interethnic intolerance in a Russian city and to clarify the nature of this influence. The assumption of the presence of such an influence is based on the fact that the comfort of the urban environment can play the role of an indicator of economic well-being, while the exacerbation of social conflicts during periods of economic instability is scientifically substantiated. This influence is studied using an econometric study on a sample of 66 Russian cities with a population of over 100 thousand people, where 2 or more crimes motivated by interethnic intolerance were committed during the period 2007–2019. The information base for the study was obtained from the website of the SOVA Center for Information and Analysis, the statistical databases of Rosstat and EMISS, and the official website of the urban environment quality index. Based on the results obtained, it is concluded that interethnic intolerance is reduced due to a comfortable urban environment. Also, according to the study, in more populated Russian cities the level of interethnic intolerance is higher, whereas the incomes of city residents reduce it.

Urban development and interethnic intolerance: Evidence from Russia

This work is devoted to the study of the impact of urban development on interethnic intolerance. Although studies on the impact of urbanization and the economic well-being of cities on interethnic intolerance have been conducted in other countries, no similar scientific work has been conducted in Russia. The purpose of this paper is to determine factors related to urban development that influence the level of interethnic intolerance in a Russian city and to clarify the nature of this influence. The assumption of the presence of such an influence is based on the fact that the comfort of the urban environment can play the role of an indicator of economic well-being, while the exacerbation of social conflicts during periods of economic instability is scientifically substantiated. This influence is studied using an econometric study on a sample of 66 Russian cities with a population of over 100 thousand people, where 2 or more crimes motivated by interethnic intolerance were committed during the period 2007–2019. The information base for the study was obtained from the website of the SOVA Center for Information and Analysis, the statistical databases of Rosstat and EMISS, and the official website of the urban environment quality index. Based on the results obtained, it is concluded that interethnic intolerance is reduced due to a comfortable urban environment. Also, according to the study, in more populated Russian cities the level of interethnic intolerance is higher, whereas the incomes of city residents reduce it.

The history of urbanization processes in the single-industry towns of Lisakovsk and Arkalyk of Kostanay region: similarities and differences, prospects for further development

The article considers the urbanization processes in two single-industry towns of Kostanay region: Lisakovsk and Arkalyk. Both cities were created during the Soviet period for the development of mining. Lisakovsk has always been a regional city, while Arkalyk has been the center of the Turgay region for a long time. However, Arkalyk has been steadily losing its population since 1991, when the decline was up to 40 % percent, and until now. The closure of the leading enterprise of the city, a branch of JSC «Aluminum of Kazakhstan» TBOM may lead to a further increase in the outflow of population, which in the long run may lead to the loss of the city status. In contrast, the population of Lisakovsk continued to grow even during the period of economic instability after the collapse of the Soviet Union. The city had a special economic zone status, which contributed to the momentum of food development. The article also traces the development of cities from their foundation to their current situation. The differences in the goals and methods used by the Soviet leadership for the formation of future single-industry towns are shown. The critical problem stages in the transition period of the 90s of the XX century are described.

Small entrepreneurship: The role in the social-economic system

Optimizing the structure of the economy and ensuring the stable employment are the most important components in the policy of developing a flexible and competitive economy. The economic development strategies of the EAEU countries emphasize the need to increase the share of small and medium-sized enterprises (SMEs) in GDP and the share of the employed in this sector. However, the planned development parameters have never been achieved, which is determined not only by a long period of economic instability and insufficient government support for SMEs, but also by the social perception of entrepreneurship. The article considers the role of entrepreneurship, primarily small business, in the social-economic system. Based on the generalization of the entrepreneurship interpretations, the authors show that it has both economic and social significance, especially in the countries with developing markets. Small business performs numerous functions and has such features as mass character, innovations, riskiness and responsibility; it is an institution of social development, and a factor of economic growth and political stability. The analysis of the activities of small business in the EAEU countries (Belarus, Kazakhstan and Russia) in 2015-2019 shows their significant lag behind the developed countries. However, in recent years, the social role of SMEs has increased for they take into account the needs of local consumers and the possibilities of local markets, which is due both to the number of employees and their qualifications, and to the introduction of science-intensive technologies. The sociological data prove a change in the social perception of entrepreneurship: it is recognized as a successful career option and social status, but also as facing challenges that hinder its development. The article is based on the statistical data of the EAEU countries and the Eurasian Economic Commission, analytical materials of rating agencies and research centers.