On reforms at transport engineering enterprises of Altai Krai in the late 1980s-1990s (evidence from Barnaultransmash, OJSC, a holding company)

The article deals with problematic aspects of functioning of Altai Krai transport engineering enterprises during the economic reforms of the 1990s. As a part of the study the author arrives at a conclusion that the joint-stock form of incorporation was created in Russia under the conditions of a generalized economic recession in all fields of industry. Privatization of public property facilitated the break-up of financial and economic connections between the factories of Altai Krai. The market structure underwent changes. The volume of state orders for regional transport engineering enterprises diminished dramatically during the first half of the 1990s, including orders for the defense-industrial sector. A conversion program for transport engineering enterprises was introduced by the government to prevent their bankruptcy. However, public funding for the program was not meant to be provided. A sharp increase of the inflation rate during the second half of the 1990s lead to corrections in government programs for social and economic development of Altai Krai. High emphasis was put on reformation of production processes in industrial sector enterprises. At the same time, lack of funds for such areas of expenditure in the local budget hindered the implementation of support programs. Barnaultransmash factory was in the list of largest transport engineering enterprises in the late 1980s and early 1990s. For the enterprise, successful manufacturing organization in the market economy environment depended heavily on government support programs. Poor design of mechanisms for the state and local level reformation of the industrial sector lead to a sharp decrease in the production rate. The Bar-naultransmash management had to resolve to abandonment of most social programs, reduction of staff size and optimization of manufacturing processes in order to preserve profitability. In the first half of the 1990s, the enterprise gradually decreased its production rate, but functioned without overdue debts. Most annual reports of the period studied by the author indicate its balance as positive. The economic recession of 1998 became a natural impetus for Transmash to start the production of consumer goods. The enterprise was able to have a positive balance at the end of 1999 against the background of the erosion of the purchasing power of the national currency. Moreover, the renewal of production facilities went at a slow rate, which caused a gradual decrease in profitability of transport engineering production. The management of Barnaultransmash holding company was able to organize transport engineering production in the market economy environment and prevent bankruptcy during the transitional period of economic reforms.

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