ate a competitive advantage of a high level. At the same time an abundance of traditional factors of production is not a sufficient condition for long-term success, only the constant innovation and increasing productivity are critical conditions of the country's competitiveness. The competitiveness of goods and services is understood as the ability to sell them at market prices with a normal profit. External competitiveness is mainly supported by the Russian oil, gas and metals.of its finished products, except weapons, are not competitive on world markets. With the products available the position of Russia holds partly in the CIS markets. Exports of services does not match the scale of the economy. As for the internal competitiveness, what was preserved to date in the domestic economy produces goods that are competitive in the domestic market. Adapting to the market conditions has occurred at a high price. But the prospects in general are not very optimistic it is impossible to accept the the current state. Vigorous efforts are needed in order to make a difference. Russia is one of the richest countries in the world on natural resources. Thanks to them this state now has an excellent balance of trade and can offer competitive commodity and energy prices on the world market. And this is meant for the long term: the high share of exports of such kind of goods would be characteristic for Russia forever. But in this situation has its drawbacks: the dependence on the situation of unstable world markets and, more importantly, the weakening of incentives for the development of innovative economy, the structural and institutional changes that are important to maintain a high level of adaptability and the development of the country's citizens.the workforce and human capital Russia is in a relatively favorable position: it posses the high level of education combined with staff being unpretentious regarding pay level and working conditions. But at the same time there are usually claims to the discipline and rigor in execution of work. The demographic crisis will eventually increase the shortage of labor which would require the involvement of migrants. Free labor would not be available, competitiveness on the labor market should deteriorate. This means that large-scale investment projects aimed at increasing production, will experience difficulties with staffing or will introduce them in other sectors. Russia is doomed to rely on increased productivity and efficiency. Capital usually goes to the sectors which are considered attractive - oil, gas, trade, real estate, and even then subject to the availability of suitable borrowers or recipients of investment, credible, and those who are inclined to cooperate. In order to diversify it is necessary to investment in other sectors which are non-competitive and risky today, which often have to deal with non-cooperative behavior with people who are not ready to exchange controls on inves...
