On February 3, 2012 in Moscow Minister Elvira Nabiullina spoke at the meeting of the supervisory board of the Strategic Initiatives Agency


Theses of the speech of Minister Elvira Nabiullina

Moscow, February 3, 2012


Mr. Putin, ladies and gentlemen as a follow-up to what Mr Nikitin (director general of the Strategic Initiatives Agency) has just said, we need to be able to evaluate entrepreneurial initiative and the way it is implemented in the regions, so businessmen can see for themselves what works and what doesn’t in certain regions. In conjunction with the Strategic Initiatives Agency and Sberbank, we have developed proposals regarding the evaluation criteria for activities to improve the investment climate in Russia's regions. As you may be aware, we already have a performance evaluation system for the Russian regions, but it’s fairly unwieldy with over 300 indicators. Work is under way to make it less complicated and more manageable.

Since improving the investment climate is a national priority, we believe that investment climate indicators should be included in the general performance assessment. However, they have an importance of their own. In other words, we should provide investors with information about situations in specific regions and, at the same time, use these criteria to issue grants to Russia's regions to encourage them to improve their investment climate.

I believe that there shouldn’t be many indicators, and they should be quantifiable and objective. We propose using four statistical indicators – I’ll tell you later what we want to add. The first has to do with the growth of private investment, i.e. investments other than those provided by the state. This will show us how Russia's regions are doing with regard to attracting private investment. The second indicator will focus on attracting foreign direct investment. The third will reflect labour productivity growth because it’s important that these investments are used for workplace modernisation and improvement. Therefore, such an integral effectiveness indicator as labour productivity growth is important. The fourth indicator concerns the increase in the small- and medium-sized businesses' turnover, as this is important as well. It’s easy to increase private investment in one or two major projects. But it’s important that each region improves its investment climate overall and has new enterprises beginning operation. These four indicators are objective, statistically reliable and quantifiable. Certainly, we need to add an indicator that shows if particular regional executive authorities have adopted the standard for providing a favourable investment climate.

As you may know, this standard was developed in partnership with businesses and Delovaya Rossiya. Therefore, the regional authorities should adopt these standards. We believe that we should make use of surveys among entrepreneurs and also see how they assess the investment climate. Statistical reports detailing the complaints that specific regions file with investment commissioners are important as well, as we should have a clear picture on instances of violations of entrepreneurs’ rights.

This wraps it up for the system of indicators. I’d like to say a few words about supporting this system with work methods. Someone has already mentioned crowdsourcing. Mr Gref (president and chairman of Sberbank's board) is a big fan of crowdsourcing as far as I know from our discussions and we worked on it together. In our view, this technology is very suitable for working on the investment climate. Crowdsourcing could help identify problems specific for every region. We could mobilise collective wisdom through the internet. Apart from identifying problems we could receive proposals on how to resolve them, and, most important, jointly monitor the way they are resolved. In this context I have a proposal for the Agency – to try this technology as regards investment climate in pilot regions 6+10 with a view to spreading it to other regions. The ASI is ready for this. I think we could do this.


Full transcript of the Meeting: