nge of improvement in Russias international positions, because the world economy is expected to grow at almost the same rate. Even if a pro-market strategy is pursued, Russia will not be able to meet the modernization breakthrough. Ⅳ.Problems in the Real SectorPutin will need to force companies to undertake adjustment with restructuring. Companies should be pressed to separate into viable and nonviable divisions and to sell off the latter, thereby reducing overemployment. By now, companies have stopped providing social safety nets for their equipment has been used for an average of 16 years and has depreciated to only 30 percent of its original value. The government has been unable to finance modernization (companies have enjoyed tacit subsidies, however, because the government did not press them to pay their taxes), so companies must rely primarily on their own resources and private loans.The government must help companies get rid of arrears that arose from a discrepancy between a restrictive macroeconomic policy and a soft microeconomic policy that has tolerated tax arrears and interenterprise debts, and from the governments failure to meet its commitments. The first step should be arranging mutual settlements between companies. But this must be followed by development and implementation of a consistent policy of gradually strengthening budget constraints in various types of settlements, including payments for energy supplies, interenterprise payments, and tax payments.Chapter5 Prospects and Suggestions for Sino-Russian Economic and Trade RelationshipPeople may care about the prospect of Sino-Russian economic and trade relationship very much after reading the previous chapters. Here, first, let us have a look at the tendency of Russian economic and trade policy, then discuss the prospect of the Sino-Russian Trade.1.Changes in Russian Foreign Economic and Trade PolicyIn the recent several years, Russia has adjusted its fore...
