Alexey Ulyukaev: the recipe for economic growth resuming
The Minister of Economic Development of Russia Alexey Ulyukaev took part in the united forum of the OECD and G-20 on international investments in 2015 that was opened in Istanbul (Turkey).
The participants of the first session were offered to answer the following question: what are the governmental instruments to resume economic growth?
The recent global financial and economic crisis that still influences the world economy made reconsider the role of the state in supporting an economic growth.
According to the Minister of Economic Development Alexey Ulyukaev, the solutions for investment climate improvement and positive environment formation can be found in different fields. One of the main fields is improvement of business operations legislation. “We use the method of so called road maps of the National Business Initiative,” explained Alexey Ulyukaev. “These maps contain the measures to remove specific administrative barriers in doing business in Russia, including those in customs administration, permission to create a new company, connecting new facilities to power grid.”
In his opinion, infrastructural development is necessary to resume economic growth. Public-private partnership is developing rapidly due to its high capital costs. “State financing is provided both from the budget and from national development funds,” he noted. “Russian fund of Direct Investments was created to work with long-term financial and strategic foreign investors in order to co-finance foreign investments in economic modernization.” According to the Minister, the main priority of this fund is to provide a maximum return on the capital invested by the fund and co-investors. The capitalization of the fund during the following 5 years will be rated at 10 billion US dollars. By this moment the fund has already invested more than 7 billion US dollars, of which 1.3 billion – internal resources and more than 6 billion – the co-investors’ resources. Within this activity, there have been created investment funds to co-invest the capital both in Russia and abroad.
Besides that, a number of another instruments are applied in Russia to support investment development, among them are special economic zones, territories of advanced development, innovative clusters.