The Expert: a successful development of the industrial sector requires not only financing but also a variety of incentives

9 july 2014

The Head of the Department for Strategic Studies in Energy of the Analytical Center Alexander Kurdin spoke at the roundtable titled "The draft law on industrial policy: principles and activity mechanisms", which took place at the press-center of the “Parliament newspaper".

Experts discussed the draft Federal Law "On industrial policy in the Russian Federation" that was submitted to the State Duma on June 26, 2014. This document will regulate the relations arising in the creation and implementation of industrial policy by identifying key concepts in this area.

“A successful development of the industrial sector requires not only financing but also a variety of incentives," - said Alexander Kurdin. According to him, competition is a good incentive. "It should be noted that companies will now compete not for consumers, but for the things that you can sell to the state - for subsidies. That is why we need open tenders"- said Mr. Kurdin.

The expert also expressed his concerns about the banking system and changes in tax and budget codes. "Public funding should not replace the banking system", - said Mr. Kurdin, adding that the issue regarding the allocation of recurrent funds remains unclear.

During the discussion, experts reviewed the advantages of the principle of territorial-sectoral development compared to the selective support of individual companies, and discussed how compatible is the draft law with the contemporary reality and what amendments could be introduced during its examination by the members of the State Duma.