Modern trends and problems of the production activity of the penal system of Orel region

Abstract

Measures of state support of the country's penal system have been recently applied to create conditions that ensure the involvement of convicts in labour, thus producing goods, works, providing services to meet state and public needs and to make profit. The purpose of the study is to analyze modern features of the production activities development of the penal system of Orel region, identify the key problems, and develop the proposals for creation of public-private interaction mechanism. Its main difference is specifying of exclusive responsibility zone of a private investor for equipment, sale of products, as well as defining remuneration for convicts. The methodology of the study is based on the methods of review assessment, comparison of production and financial activities indicators of penal institutions, determination of patterns of obtaining results due to expenses incurred and consideration of investors' participation in the production. As a result, positive trends in the production activity of regional Federal Penitentiary Service of Russia were revealed, facts of continuous increase of production volume of goods, work performed and services rendered performed by convicts, as well as positive financial result - net profit over the past three years were established., it was - a Decrease of financial result used to maintain and strengthen the material and technical base, modernization and development of production, creation of jobs for convicts, in general, and reduction of costs for modernization and purchase of machinery and equipment, in particular were noted ass negative factors.