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September 8, 2021, 15:36

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Press Service of the Mayor and the Moscow Government

At the Moscow Financial Forum, the Mayor of Moscow spoke about the economy of large cities and new approaches to investment.

In modern economic realities, investments in the service sector come to the fore, as they lead to greater returns, said Sergei Sobyanin during the Moscow Financial Forum. The Moscow Mayor took part in the plenary session “Russian Economy and Financial Markets: Sustainable Development in a Changing World” and spoke about the economy of large cities and new approaches to investment.

Recently, the situation has changed, it is not worth trying now to invest all funds in the industry. “Not because we do not need industry, but because the structure of the economy in the world has changed and today the main investments go to the service sector, since it has a great economic return,” explained Sergei Sobyanin. – The volume of investments in fixed assets in Moscow compared to 2019 increased by almost 20 percent. There really was a slight drop last year, literally one percent. “

To invest in services, Sergei Sobyanin noted, a massive demand for them is needed, and this is possible where there is a high concentration of the population, that is, in large cities.

“Any ruble invested in a restaurant, hotel or catering sector gives a multiple return than if this ruble is invested, for example, in rural areas,” said Sergei Sobyanin. – We, of course, need to create the appropriate infrastructure, prepare such projects for joint co-investment of what depends on the state – transport, engineering infrastructure, legislative support for relevant urban planning documentation, reducing administrative barriers, and so on.

The Mayor of Moscow added that investments according to the scheme created sometime earlier are no longer working. There is a separate sector of the raw materials economy, which will continue to develop as before, but changes and new approaches are needed in the urban and regional economy. First of all, it is necessary to enlarge the regions, concentration of the population and the development of large cities.

According to Sergei Sobyanin, the new economy cannot be assessed using the old methods – they do not reflect the real picture of what is happening. As an example, the Moscow Mayor cited e-services, the provision of which reduces costs, but does not reduce productivity.

“The economy has changed, it needs to be measured with other markers. Then we get the real picture. And we measure the economy in the old way: how many galoshes were produced, how much oil was produced, and so on. And it is different and it should be measured differently, – said the Mayor of Moscow. – Big cities have a different effect. Labor productivity in Moscow is almost twice as high as the average for Russia. But this does not mean that Muscovites work twice as much as other Russians. It’s just that the effect of this work is much greater, because they provide services to a much larger number of people per hour of working time, which gives a different labor productivity. This is a new economy, new approaches to measuring it, and there should be new forecasts and visions for this. “

Moscow Financial Forum

The 5th Moscow Financial Forum is being held at the Manezh Central Exhibition Hall. It was attended by representatives of federal and regional authorities, business, public organizations and associations, as well as experts in the field of economics and finance.

The key topic of the Moscow Financial Forum – 2021 – “Russian Economy and Financial Markets: Sustainable Development in a Changing World”. Speakers discuss how the pandemic affected the Russian and world economies, the difficulties that the states had to face over the past year, the prospects for the Russian economy and financial markets in the context of global competition, and many other issues.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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