Production potential of the economy: Long-standing problems and ways to solve them

The paper contemplates problems that have stockpiled in the domestic economy. A conclusion is made that these problems have arisen because manufacturing was devoid of the part of natural rent obtained by the extractive industry and formerly distributed in favor of manufacturing. Now it is proposed to create vertically integrated interindustry corporations (VIICs) similar in structure to international transnational corporations (TNCs). They are necessary in our country because of its inclement climatic conditions and geographic location, as well as in view of its current economic strategy aimed at large-scale import substitution.