Rearmament prevent inflation?

Rearmament prevent inflation?

July 26, 2011 held a meeting on the state defense order in which Prime Minister Vladimir Putin said that this year, the volume of orders amounted to 750 billion rubles, which is 1.5 times more than in the past. And to this day are not signed a contract for about 30% of the total amount of the order in 2011.

According to Vladimir Putin, in response to the claims in the party control of the Ministry of Defence put forward a mutual requirement, so that is immeasurable growth prices. In addition, the Prime Minister stressed that, despite the fact that the inflation rate today is 5%, the prices of certain types of weapons grew up in a couple of times.

Commented on the situation as a source of military-industrial complex, growth Price, founded in the program to the state defense order in 2020, should not exceed 5-8%. But due to the rise in world market prices of raw materials already at the moment there is a price increase for year 9-12% at a technique that has a long production cycle.

Ministry Defence has no authority to arbitrarily increase or decrease the inflation limit. This deals Ministry Economic Development, which established the inflation rate of 5-8%. Ministry of Defense, in turn, lays the values in the requirements for public procurement.

It must be emphasized that at the time when defense spending has been brought down to a reasonable amount, manufacturers were not able to offer any new products and technical equipment. This has all the rationale — to develop and test new techniques need to invest huge amounts of money.

Now frustrated deadlines on several projects the state defense order. Due to the rising prices of components delayed construction of corvettes, submarines (3 pcs.) Yak-130 (6 pcs.) And BMP-3 (a half batch of 150 units.).

To ensure that the situation is not exacerbated in the coming intend to put to use a system of 100% of lending defense contracts. This will allow the Ministry of Defence has a contract with the issue directly set prices. Industrialists for all that will be able to purchase the required amount of raw materials and to remain independent of the configurations of the world market prices of raw materials.

Typically, large manufacturers prefer to reinsure themselves in matters of pricing. The main thing for them — the ability to bring the final decision about the cost and the parameters of this or other products.

According to the views of Misha Barabanova (head editor of the magazine «Moscow Defense Brief»), the tension of the Ministry of Defense and the military-industrial complex in Russia may grow in the conflict. After all, in fact, a large-scale purchase of arms began in such criteria under which there was no mechanism for its approval and implementation. As a consequence, at this point typically matches. Rules are developed taking into account already in progress of large-scale defense programs. And we litsezreem end up? Real shaped mess in matters of defense procurement and the festering animosity between the military and industrialists.

In addition, in all this confusion and corruption component involved. Sergei Fridinskiy (chief military prosecutor) says that in the last 1.5 years for illegal introduction of funds for the purchase, repair and modernization of weapons has been convicted of more than 30 officers.

Experts believe that the way out of the situation is a state structure that could act as a mediator between the MIC and the Defense Ministry in matters of pricing. But, unfortunately, today the government is not planning taking such decisions.

Like this post? Please share to your friends: