The road map for development of the non-raw materials sector of the economy is to be presented to the President in late March

28 december 2018

The Analytical Center hosted the second meeting of the Interdepartmental Work Group for development of the road map for ensuring sustainable economic growth in the non-raw materials sector of the Russian economy. The experts discussed the intermediate results of the first stage of work on the document. "The potential sources of growth have been identified, and the proposals on priority directions of sectors development which can make maximum contribution to the economic growth," said Gleb Pokatovich, First Deputy Head of the Analytical Center.

Boris Titov, Authorized Representative of the President for Protection of Rights of Entrepreneurs, noted that the road map was becoming more and more relevant as the oil prices kept falling. "We hope that the everyday work on the road map will allow us to achieve a new trajectory of sustainable and balanced economic growth," he said.

The road map will comprise 9 sectors of the economy that produce maximum multiplicative effect. These include the economy of simple things (consumer goods, textiles, etc.), the hospitality industry (tourism, restaurants, health resorts, wine making, etc.), projects aimed at deepening the processing of natural resources, Digital Economy, green and white biotechnologies, the agricultural sector and manufacture of agricultural machinery, residential housing construction and infrastructure development, production of medical equipment and drugs, the transport and logistics sector, radio and electronics, instrument engineering, machinery and machine tool manufacture as well as professional services in all of these sectors.

The experts estimate that all these sectors can contribute up to 5% to GDP growth and can potentially create 10 million jobs. Every sector includes the entire production and service delivery chain from R&D to post sale services.

"A lot of the methodological solutions used in development of the road map are based on innovations plan proposals. In recent years, we have never used this approach and now we are facing a very challenging task of agreeing the strategic vision and a new socio-economic development program that is more practice oriented," noted Anastasia Alekhnovich, Head of the Expert Center of the Authorized Representative of the President for Protection of Rights of Entrepreneurs.

The territorial clusters will be used as the implementation tool for the road map in the sector. "It is a working tool for developing the non-raw materials sector in a territory. At the moment, there is a huge gap between the academic science and the introduction of R&D results in practice. The territorial cluster structure is quite clear: there are manufacturing companies, R&D organizations and some kind of a financial sector to help sort out day to day issues. The idea behind having a cluster is to try and reduce the share of foreign parts and components in each product and thus reduce production costs and boost competitiveness," explained Marina Girina, Head of the Inter-Cluster Work Group for Diagnostic, Laboratory Medical Equipment and Biotechnologies of the Interdepartmental Coordination Council of the Military Industrial Complex Board of the Russian Federation.

During the meeting, the road map for Healthcare and Agriculture was presented as an example. The experts assessed the current state of the sectors, compared the data obtained with the global averages, assessed the potential and selected measures to encourage supply and demand. Thus, in the agricultural sector, for example, it was suggested launching of a program to subsidize the consumption of agricultural products by social vulnerable groups of the population, harmonizing the technical regulations and certification of the agricultural sector and manufacture of agricultural machinery to bring into alignment with the consumer market demands, subsidizing the leasing payments for the purchase of domestically manufactured equipment. It was suggested that supply could be encouraged through lower regulatory requirements and lower rates of natural monopolies as well as tax incentives etc.

"These support measures should generate an extra 1.5 trillion rubles in extra budget revenue by 2024," said Alexander Shirov, Deputy Head of the Institute for National Economic Forecasts of the Russian Academy of Sciences, Head of the Laboratory for Analysis and Forecasting of the Production Potential and Cross-Sectoral Interactions.

The second stage of the road map development will take place from January 15 through February 28, 2019. Its goal will be to assess the possible effects as well as offer solutions for reducing barriers for development of various sectors of the economy, including barriers resulted from the already approved federal projects.

March 25, 2019 will see the road map presented at the Second Stolypin Forum "Strategies for Russia".