MIL OSI Translation. Region: Russian Federation –
Source: Ministry of Economic Development (Russia) – An important disclaimer is located at the bottom of this article.
A favorable investment climate, favorable and predictable conditions for investors ensured an increase in investment in the economy, said the acting director. Minister of Economic Development of Russia Maxim Reshetnikov at the plenary session of the Day of National Priorities “Efficient and Competitive Economy” of the International Exhibition and Forum “Russia”. The discussion revolved around the formation of a supply-side economy as a key factor in the development of the state on the horizon until 2030.
The session was also attended by acting. First Deputy Prime Minister of Russia Andrey Belousov. He noted that the development of a supply-side economy is possible by increasing labor efficiency, increasing the production of goods and services, increasing investment and income and, as a result, increasing final demand.
“It is necessary to create conditions when the growth impulse does not arise from the outside, not from monetary demand, but appears within the production sector itself. This can be achieved by improving the employment structure, expanding entrepreneurial activity, ensuring investment growth, increasing the efficiency of the real sector and the service sector, increasing labor productivity, including automation, new management systems and the development of artificial intelligence technologies,” Andrey outlined the main directions for the formation of a supply-side economy Belousov.
From an industry perspective, he said, the engines of growth in the structure of goods and services should be information technology and communications, culture and sports, healthcare and social services, education and scientific and technical activities. At the same time, the growth rate of supply in the field of information technology and communications in 2030, cumulatively, by 2024 should exceed 130% of GDP.
Among the conditions for the growth of the supply economy, Andrei Belousov noted four main drivers: the dynamics of labor productivity, the growth of investments and changes in the structure of the source of investment financing throughout the entire period, the growth of non-resource non-energy exports and the formation of transport and logistics corridors for Russian goods.
According to the acting Minister of Economic Development of Russia Maxim Reshetnikov, the value guideline in the Government’s work to develop the supply-side economy is the quality of its key institutions: private property, freedom of pricing and competition.
He, in particular, noted that it is necessary to more actively involve business in the development of the institution of property, to sell to it those state assets that are not critical for national interests and can be more effectively managed by the private sector.
“Private property rights need to be expanded in the economy,” emphasized Maxim Reshetnikov.
It is necessary to rethink the institution of competition, he added, to grow our own companies that will fight for the domestic market. Including foreigners who are replacing Western companies and who are behaving extremely aggressively.
“On the one hand, we must develop competition, but on the other hand, we must not become an economy of isolation. It is necessary to find a balance, and in recent years we have made great progress in this,” emphasized the head of the Russian Ministry of Economic Development.
In the context of sanctions and restrictions, the interests of domestic producers are actively protected, the principle of competition within the country is supported through the search for new partners of friendly states, the expansion of free trade zones, increased investment and the development of cooperation. A favorable investment climate and favorable and predictable conditions for investors are being created in the private capital sector.
“The structure of investments is changing, projects are becoming more complex and technologically advanced. The main thing is to maintain the pace and not let challenges and restrictions “accelerate”. For this purpose, tools are used to hedge interest rate risks and provide stable conditions,” said Maxim Reshetnikov.
Significant, according to him, are also the issues of regulation of the labor market, which has shown its flexibility in conditions of abnormally low unemployment. The “platform” economy of marketplaces has great potential, where a significant share of added value goes to the real sector.
“Supply-side economics is, first and foremost, an economics of pragmatism and clear, practical solutions. Today we have a window of opportunity; we understand that a large share of added value must be generated internally, and there is demand for this. This is a lot of joint work, developing a dialogue between government and business,” noted Maxim Reshetnikov.
During the plenary session, issues of supply-side economics, labor productivity, the role of federal and regional authorities in improving the investment climate, support for high-tech industries, SMEs and business activity were discussed. The discussion revolved around the introduction of lean manufacturing, the influence of the financial sector on stimulating the attraction of investment by enterprises, and the removal of transport and logistics restrictions to ensure the country’s logistics sovereignty.
The national project “Labor Productivity” is becoming a key tool for economic growth and the formation of a supply economy, shared Maria Bagreeva, Deputy Mayor of Moscow in the Moscow Government, Head of the Department of Economic Policy and City Development.
“Today, more than 340 Moscow companies are participating in the national project, of which about 200 are represented by manufacturing industries – this is almost a quarter of the city’s large and medium-sized industrial enterprises. Thanks to the tools of the national project, manufacturing companies increased labor productivity by an average of 40%. But to achieve even greater results, lean manufacturing technologies alone are not enough. Therefore, the resources that companies free up by optimizing work processes and increasing production are directed towards digitalization, automation and robotization of production, thus continuing to improve the efficiency of the enterprise,” said Maria Bagreeva.
Investments in production and human capital can be the key to successful development of regions as a whole, says Governor of the Murmansk Region Andrei Chibis.
“The Murmansk region is a flagship for the development of the Arctic. Projects that are being implemented with the support of the president in the region have enormous potential. Their volume over the next 10 years exceeds 3 trillion rubles of investment. For the first time in 33 years, thanks to economic growth, jobs, and changes in the quality of life, the region is experiencing a migration increase in population,” commented the head of the region.
PSB Chairman Pyotr Fradkov spoke about the impact of the development of the economy of new entities on the Russian economy as a whole.
“When we talk about the formation of a supply-side economy, we mean the creation of infrastructure, networks, including banking, energy, transport, the creation of production capacities, high technologies, and so on. All of these are primarily regions. In particular, new entities can make a great contribution to the development of our economy. And an important driver of this process is lending. According to our estimates, debt financing in the amount of more than 1.5 trillion rubles by 2030 will allow the regions to reach average Russian socio-economic indicators, thereby significantly increasing their contribution to the country’s economy,” said Pyotr Fradkov.
General Director of the SME Corporation Alexander Isaevich focused the attention of the audience on the role of private business in shaping the supply economy.
“Without taking into account the public sector, every second ruble in the industries voiced by Andrei Removich is contributed to the economy by small and medium-sized businesses. In 2023, the share of SME loans in total lending reached 21%. For comparison, in 2020 this figure was only 10%. At the same time, the number of loans to SMEs almost doubled (by 72%) and at the end of 2023 they accounted for 92% of all loans issued. This suggests that small and medium-sized businesses are striving to develop and scale,” says Alexander Isaevich.
The creation of an international transport network is associated with the unlocking of Russia’s transport potential, the Chairman of the Board of Directors of the Delo Group of Companies, Sergei Shishkarev.
“In the next decade, against the backdrop of population growth and low labor costs, the African continent will play an increasingly important role in the global economy: both as a production center and as a consumption market. It is necessary to build logistics centers in North Africa, on the east coast of the continent, as well as in Southeast Asia. We are already negotiating with Sri Lanka about creating a container hub for transportation from India and other countries in the region through Iran and neighboring states to Russia. Without such hubs, we will have neither transport sovereignty nor stable international logistics,” noted Sergei Shishkarev.
Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.
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