In the book “FSA Guide to European Financial Policy: Issues and Challenges for the Real Estate Industry”, David R. Shepherd and Jan G. S. O’Rourke provide detailed information on the importance of finance planning for future projects. The book starts by discussing the basic definition of finance and then goes into its various forms and details. It then goes on to explain that the real estate market is largely dependent on investment expenditures and that such activities are managed through systems of project control, financing and risk management. The book goes further to describe such systems and methods in detail and goes into the importance of investment expenditures.
Two major subjects that are discussed in the above mentioned publication are oil prices and the balance of payments in international finance. The first topic deals with the balance of payments issue and how Russia and the USA to balance their trade. In fact the authors have quoted phrases like “a new cold war” and “a struggle between two giants”. They have also quoted the famous saying “A battle can only be won by one man fighting against a thousand opponents”. The next topic in the book involves oil prices. The authors have shown how the trade imbalance between the USA and Russia has had major consequences on oil prices and what can be done about it.
The third topic which is discussed in the above mentioned publication is the topic on investment expenditures. At the end of the previous decade Russian economy was growing at a rapid pace. However, the recent economic crisis and the price hike of the natural resource such as oil by the US caused severe challenges for the growth of Russian economy. At the end of the same year the finance ministers of both Russia and the USA made a meeting in Switzerland. This was a meeting which led to the reduction of the level of investment expenditures in Russia. Moreover this reduction is expected to increase the level of exports within a short period.
According to the finance planning for future projects the finance minister of Russia ordered the reallocation of assets from the finance, banking, and the transport sector to finance new construction projects. The reallocation will allow more resources to be utilized for investment. Besides that, the reallocation will enable more goods and services to enter the market. According to the finance minister of Russia, the measures taken by him will help to improve the volume of investment in the sector.
On Wednesday, the finance minister of Russia ordered to increase the level of federal income through the creation of new industries. He did mention the fact that he has already spoken with the oil prices in the context of these objectives. However, according to the premier of the ruble, Kirilenko, the changes in the level of oil prices should be welcomed. In fact, the premier stated that the measures taken by the finance minister are aimed at increasing the volume of investment and the improvement of the efficiency of the state oil production. According to him, it is important to build a strong state oil production in order to lessen the pressure on the declining oil prices.
At the same time, the premier of the ruble also spoke about the need of the country to enhance its development prospects through the development of industrial parks and development regions. The development of such industrial regions should be accompanied by infrastructural developments in terms of transport systems, electronic equipment, and other forms of advanced technologies. The finance minister of Russia also spoke about the need for the integration of the transit system of the Moscow region, including the railway network. All in all, the finance minister of Russia said that the measures taken by him are aimed at increasing the volume of investments, balancing the ratio of infrastructural development against the infrastructural requirements, and enhancing the productivity and raising the level of oil prices.