Special report based on research carried out by DCMU and entitled “Regional Development Practices” was delivered by DCMU representatives
A round table has been organized in the framework of Saint-Petersburg International Economic Forum with participation of National Association of Investment and Development Agencies chaired by ex-deputy Minister of Economic Development of Russia Sergey Belyakov; Association Board also includes vice-president of Russian Government Dmitry Kozak and Alexander Shokhin - the president of Russian Union of Industrialists and Entrepreneurs.
During Saint-Petersburg Economic Forum participants normally discuss key issues of economic development of Russian regions, the ways to increase their investment attractiveness and competitiveness. One of the panels was focusing on improving effectiveness of regional development corporations and agencies. In advance of this panel Russian weekly business magazine Expert has published a special report “Regional Development Practices” analysing investment models in different regions of Russia and summarizing best development concepts. Review was based on research carried out by Development Corporation of Middle Ural in 2016 and highlighting typical approaches and practices of regional development agencies (the research was carried out with support of G1 Consulting, National Association of Investment and Development Agencies and Agency for Strategic Initiatives; Development Corporation of Middle Ural will present the entire report to public during INNOPROM 2016).
The round table was focusing on regulating the activity of regional development institutions as their operations currently fall out of the general logic of Russian legislation – the agencies are neither government entities nor commercial companies but operate somewhere in between. The research highlighted that all the agencies including most active ones such as Tatarstan Investment Development Agency and Kaluga Regional Development Agency experience a lack of special status defining “rules of engagement” and permitting to support investors more effectively. It is expected that a special task group formed by Ministry of Economic Development of Russian Federation will follow up on this issue. A DCMU representative will be taking part in group’s activities.
DCMU Executive Director Georgy Gemedzhiev puts it this way, “The issue of improving the legislation which regulate operations of development corporations and agencies has been breeding for a while. There is a lot of practical experience gained by the regions which should be formalized now. The majority of my colleagues agree with this opinion. However, there is no intention to prepare a new federal law because it might not be able to comprehend all the regional specifities. Instead we are proposing the following initiative: it is necessary to choose certain functions performed by development institutions and award it with official status; thus development institutions will be on the same level playing field with regional and federal authorities, become more active on the market and meet the expectations of investors in full capacity”.
The experts point out that it will become especially important to define the status and credentials of regional development agencies in case if new Federal Investment Agency will be founded which will have to collaborate with regional entities in 85 regions.