Import substitution mechanism for the construction industry in Russia

Abstract

This study is important for most states, but especially for Russia in the current political situation. Dependence on foreign goods and services can turn out to be not the best result, as, for example, happened in Russia. One of the most important industries in the country is the construction industry. And it currently requires global import substitution. However, to change the situation, it is necessary to understand that the import substitution process cannot happen instantly. Governments of many countries should work on it comprehensively in order not to come to the situation in which the Russian Federation finds itself. Long-standing principles of exporting goods to foreign markets have shown their failure. The massive sale of raw materials and the purchase of a wide range of goods for various spheres from abroad has greatly weakened the country’s economy. This has led to the need to find new solutions on the part of the state. The author’s import substitution mechanism proposed in the article is universal for the construction industry, as it is a system of managerial decisions that allow to develop the country’s own production systematically and to gradually abandon foreign goods. This mechanism will allow for a timely assessment of the production, economic and technological potential of the industry, taking into account the interaction of state and commercial organizations.

Keywords

• construction industry
• mechanism
• import substitution
• state management
• public-private partnership
• economic potential
• production potential