Recently, the interpretation of the strategy for the actions necessary to steer the national economy in the direction of economic growth and competitiveness is becoming more active. What the national economy most needs today are a new system for the organization of production and its management befitting the science-intensive nature of the contemporary economy, as well as a system of labor motivations able to maintain wage growth and the well-being of the workers in a fashion commensurate with the increased productivity of social labor. Actual practice testifies to this as well. The places where the management of resultsâquality, costs, competitiveness, labor expenditures, revenues, innovationâis being set up are the places where they have been able to restore and expand production. That is what is happening, for example, at the Kauchuk [Rubber] Plant, where the situation has begun to rectify itself since the collapse of 1997-98, which was aggravated by a change in management. We discuss the significance of effective management and the practical complexities of setting it up in a discussion with the general director of the Kauchuk Plant, A.G. Gontuar.
