The policy of import substitution as the basis for economic security and well-being of society

Abstract

The study presents the analysis of import substitution opportunities on separate branches of economic activity, preceding the realization of import substitution policy with the aim to support national economic security, which is essential for the contemporary society welfare insurance. Currently, social well-being is considered to be the reflection of economic activity, the instrument of state influence on the society, as well as an indicator of the social security system. Due to the fact that Russia is integrated into the world economy, the foreign-economic policy currently is playing an important role in the development of national security and the state's interest to the spheres of economy considering external and internal threats. Decline in external economic conditions may result in serious consequences for the functioning and development of the country as well as for the trade and investment activities, which will further lead to the decline in export, withdrawal of capital, recession of industrial production, trade and investment sphere, fall of GDP and living standards. Thus, considering the current state of instability in the world economy and the growing political tension in relation to Russian Federation, the measures to increase economic security in the country should be taken. The policy of import substitution is considered to be one of the major solutions nowadays.