Academic journal article Academy of Strategic Management Journal

Institutional Aspects of Forecasting Socio-Economic Systems in the Organization of Forest Management in the Russian Federation

Academic journal article Academy of Strategic Management Journal

Institutional Aspects of Forecasting Socio-Economic Systems in the Organization of Forest Management in the Russian Federation

Article excerpt


Overall value added in the forestry sector did not grow at a rapid pace, with the exception of some regions, where the development of this sector was a particular priority of the national development policy [1, 12]. Just a few regions have paid attention to the development of this sector, since the preference was given to other industries. Thus, the forestry sector has almost always been assigned a secondary role, especially in regions with rapidly developing economy. In addition, this suggests that this sector is not one of the main drivers of economic growth and development, with the exception of cases characterized by the special circumstances [2, 9, 16].

As the efficiency of the sector increases, the number of employees in this sector decreases; more than this - it loses its significance in the economy.

These trends should be considered in the broader context of the current changes, including the transition of forestry, based on logging to the multi-purpose forest management, changes in the system of forests ownership, as well as mechanization and the implementation of information technology that is being observed for more than two decades. These trends are not the same everywhere; for example, the level of mechanization varies, because it depends on geography /topography, as well as political and legal aspects of the economy [3, 7, 13].


Many studies are dealing with the effects of mechanization. However, just few of them discuss the implications of various technologies for forest management planning, which sometimes depends on geography and topography of the area. In many parts of the Russian Federation the forests in the mountainous areas and forest holding sizes mean that mechanization is possible only to a limited extent, and therefore, despite the growing popularity of mechanical processors, working methods, involving the use of hand motor tools, continue dominating.

Based on seven thematic studies for representational mountain ranges of the Russian Federation, it was concluded that in harsh terrain areas inappropriate technology is often used, and that selection of forest extraction methods is not based on accounting of the hillside slope angle. Nonmechanized and outdated logging systems are one of the reasons for the low operations efficiency and have the greatest impact on the environment, while fully mechanized systems are reported to be most effective, and their use guarantees the least number of accidents and the least damage to forest stands.


Effects of market factors have led to downsizing and restructuring of forest industry of the Russian Federation. The outcomes of the research, devoted to the impact of the forest sector on the economy, have shown that in 2015 almost all of the indicators in terms of value were lower than in 2001 (adjusted for inflation at the rate US dollar in 2015), as well as number of employees, value added, and value of production; besides, there have been shifts in the industry. All economic multipliers have increased that implies a scaling-up integration of forestry and production of forest products in the economy of the Russian Federation in the period of 20012015 [3, 11].

The sawmilling sector may be exposed to employment and unemployment cycles, the transition to more capitalized approaches and restructuring. The results of conducted studies show that workers with years of experience face problems such as long period of unemployment security, cyclical unemployment, and adverse physical and psychological labor conditions. Analysis of the manual workers' status in the six enterprises of the forest industry in the Northwest region, where restructuring had been taking place during the long-term period (20012015), showed that negative attitude towards changes increases the risk of being subjected to stress, and leads to lesser satisfaction with work.

In connection with the emergence of advanced concepts of integrated management of forest ecosystems and economic development of rural areas, the traditional theory of forest management today is undergoing significant changes. …

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