Model of economic organization of the Russian forestry

• Published in: IOP conference series. Earth and environmental science 2019-01, Vol.226 (1), p.12041
• Main Authors: Petrov, A P, Morkovina, S S
• Format: Article
• Language: English
• Subjects: Economic models; Financing; Forest management; Forest resources; Forestry; Forests; Impact analysis; Leasing; Principles; Public sector; Reforestation; Socio-economic aspects
• ISSN: 1755-1307; 1755-1315; 1755-1315
• DOI: 10.1088/1755-1315/226/1/012041

The article presents socioeconomic transformations taking place in the Russian economy that had a direct impact on the economic relations in forestry. Russian forestry is the single branch of the material sector of the economy where market relations are still absent. Long-term budgetary financing of forestry has caused negative consequences. The paper describes an approach to forest management on market principles. Forest leasing system and organization of forest use by tenants of forest areas are considered. As a result practice of forest leasing gives the idea to establish special fund to finance forest reforestation. A model of the economic organization of forestry on non-leased forest lands must be different and based on the public owned forest enterprises. It is proposed that public forest enterprises are to be established as public managers but not owners of forest resources. The long-term practice of forest management by public enterprises in European countries demonstrates its high efficiency, whereas in Russia autonomous and budgetary institutions managing forest are not able to implement in forestry market principles compared to public enterprises. The public forest enterprises have the opportunities to combine capital, labor and forest resources in proper way.