ANSWERS FROM RUSSIA:
LEADERSHIPIn the 1990s, right resources seemed to be the answer (no military industries)
Now it is clear that the right leaders is the answer
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
34 |
FEDERAL AND
SUBNATIONALPro-Investment StrategyEFFORT
Begins 2006
Results staggering:
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
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STARTING POINT: 1998
Location:
•Along Moscow–Kiev motorway, backbone of the spatial economic organization
•Proximitiy to Moscow (170 km)
Regional economy
•Military-oriented (one/half employees in 1980s)
•Machine-building
•Production of transportation and related equipment (mainly for railroads),
• Science, nuclear physics research |
Russia’s |
First Nuclear Reactor: |
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in Obninsk (106,000 population) |
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•Few natural resources (some ag, timber, logging)
•Wood-working and paper industries
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
36 |
THEN DECLINE, THEN
In 1990s, output shrank by almost 60%
After 2006, it began to grow far faster than Russian average
As next figure shows*
*Dmitry Zimin, “Promoting Investment in Russia’s Regions,” Eurasian Geography and Economics, 2010, 51, No. 5, pp. 653–668.
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
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WHAT HAPPENED?
“Investment Promotion Machine” as in
Central European States
•Foreign involvement does not always produce wealth (financial gap, no spillovers)
•Require consensus among political and economic elites at national/regional/local level
•No single project can do it
•Requires stable, predictable and honest government
•Greenfield investments work best
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
39 |
KALUGA PROJECTS (2005-8) WITH FEDERAL SUPPORT
•Public funds invested in industrial parks (techno-parks)
•Public funds invested in transportation infrastructure (Federal investment in Moscow-Kiev motorway connecting Kaluga/Obninsk with Moscow
•Investment financed by borrowing (new corporation)
The Russian Detroit |
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
40 |
PUBLIC AND PRIVATE PARTNERSHIP
TECHNOPARK |
“VOLVO- |
VOSTOK” |
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ЛЕТНИЙ КАМПУС АКАДЕМИИ ПРИ ПРЕЗИДЕНТЕ РФ -2012 |
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INDUSTRIAL ZONES
• Created four industrial zones (linking
Kaluga, Obninsk with businesses)
Public funds reconstructed them, then carefully sold to private investors
• Created One-stop shop for investors
(Kaluga Regional Development Agency)
Helped investors with permissions (environmental, safety), services, meetings with public officials
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