North Caucasus Regions Need Modern State Support Tools

21 november 2016

"North Caucasus regions have massive economic growth potential, but the state support tools that are used there fall short of modern demands," said the Deputy Head of the Analytical Center Mikhail Pryadilnikov, opening a round table on the realization of the investment potential of the Russian regions included into the North Caucasus Federal district.

"There is a whole host of factors that negatively impact the implementation of investment projects such as lack of funds in the local treasuries to co-finance state support measures and back state guarantees, problem with getting loans, limited volume of the domestic market," claims the Deputy Head of the Department for Regional Policy and Development of the Far East of the Analytical Center Anton Steshenko. The creation of a 'package' support of investment projects and the Guarantee fund of the North Caucasus should improve the conditions for promoting entrepreneurship in the North Caucasus Federal District. In addition, it is important to develop the export infrastructure, create and introduce comprehensive inter-regional projects and model the efficiency of state support of investment projects at various implementation stages, the specialist is convinced.

Aleksey Krylovsky, President of the AV Consulting Group, believes that it is important to update the North Caucasus Federal District Development Strategy until 2030. "It is important to emphasize efforts to make the North Caucasus Federal District regions more competitive on the global level by balancing their strategies as much as possible and focusing on comprehensive economic development. We need to create a single North Caucasus development area," the expert believes. In his opinion, the North Caucasus development area could serve as mechanism for ensuring global competitiveness through the development of trading, transportation and logistics, tourism and recreation as well as agricultural clusters. At the same time the new North Caucasus Federal District 2030 Strategy must be aimed at making the region more attractive to investors, specifically, by supporting investment projects, investors, development institutions, executive authorities and public institutions, the specialist noted.

Participants in the discussion agreed that a consulting center should be established in the North Caucasus Federal District to offer explanations about the best ways to support industrial companies.