Incentives for Foreign Investors

19th of December 2012
Begun re-comprehension all participant approach to investment process (the federal government, regional government, investor) helps the region and Russia as a whole to become the more attractive revenge for foreign investor.
 
All more often confess that fact that competition and cooperation between region are a necessary element of increasing to investment attractiveness region.

Historically competition between region was limited, was absent exchange by leading experience in this area.

At present, there are obvious sign that all participants of the investment process revise its approach to him that is bound him(it) with extraction advantage more close-fitting кооперации concerned party in the course of given process.

However at present russian regions powerfully differ on level of attraction direct foreign investment - some regions are an evident leader.

The Competition on regional level gives the strong pulse to change on federal level.

The Rapprochement of the waiting is a key moment in change the thinking investment process participant, herewith some regions are an initiator of the change on federal level.
There are prime examples that, as territorial subdivisions federal organ of power create the barriers for direct foreign investment in regions, hereunder finding need of the change.

The Limited possibilities federal organ of power and their longing to checking, as it is noted, зачастую lead to significant delay in process, reduce the results an effort regional government and intensify the general voltage.

Understanding and capitalization proposed advantage by each region gives the powerful pulse a process to deversifications.

Some regions already came to understanding of need of the commercial thinking, which helps him to develop clear positioning the region on federal level.

However many regions all ещене study the measures, undertaken other region for attraction investor, and зачастую ignore the reasons, from which depends the choice foreign investor that or other region.

The Leading experience of the work with foreign investor and информированность about successful example cooperation amongst participant of the process can, on the one hand, assist discovery an институциональных synergy, but with other - intensify the competition between separate region.

The Reaction organ of power on requests on the part of foreign investor зачастую does not come up to anticipations last, and, in spite of significant efforts, undertaken organ of power, their actions not capable to contribute the essential contribution.
 
Though regions and undertake the significant efforts on attraction foreign investment, results of some initiatives are unessential.

Some regions undertake the attempts on attraction direct foreign investment since their important importance confesses in majority region.

However there is examples of the discrepancy of the measures and initiatives state organ to waiting investor that reduces efficiency of such measures and does unessential their influence upon volume direct foreign investment.

The Leaders region are a key section in increasing of attractiveness of its region, together with that their approach зачастую inefficient and can destroy the results general effort.


The Leaders many region greet the influx direct foreign investment and in process cooperation with foreign investor demonstrate its active support.

However at a rate of performers quality assistances investor noticeably it falls that without scrupulous checking overhand can level the effect from earlier undertaken effort.

In consequence of defect at a rate of performers even politicians of the high rank can not guarantee the successful result of the investment process.

For liquidation of the gap in understanding the waiting investor necessary change, which коснутся all participants. At transparency is a key success factor for attraction foreign investment in regions.

Many foreign investors take into account the business culture and principles to organizations of the business in Russia and, correcting their own waiting, do the first step to removal of incomprehension.

However aside from other  soft  factor, insufficient interaction between state organ and priority of the form on contents at a rate of performances require change for the reason waiting breakup reductions.

In some cases problem is concluded not in separate state organ, but in absence of consensus action between several organs, participating in investment process that leads to origin discrepancy and reduces the transparency of the whole process.

So necessary change that process became more transparent for all participant, - both on the part of investor, and on the part of state organ.

In the opinion of investor, such initiatives, as tax преференции, have limited influence and most often do not give him evident advantages because of difficulties in администрировании.


Some are a tax stimuluses, provided to regional power, turn out to be to be inapplicable for foreign investor, or impose on them burdensome or unfulfilled requirements.

For instance, reception of the status  priority project , allowing investor to get the tax priveleges, is often connected with additional administrative procedure and regular granting to reporting, which sometimes contains the proprietary information about activity of the companies.

So foreign investors consider that costs on observance of the requirements in respect of many from proposed tax stimulus outweigh that advantages, which could be received from use the tax priveleges.

In the opinion of all concerned party, concept  one window  definitely is a concept future, but at present in glance investor and local organ of power for approach to she exists the significant divergences: government tries to create  one window  in each ministry, changing, thereby, essence itself to concepts  one window .


The Majority region have already introduced the concept  one window , however, in many events investor happens to to apply to  one window  in each state organ or in several state organs.

Besides, exist the questions of the normative regulation, which prevent the realization given to concepts since personal presence is required in regional subdivisions federal organ of power.

Average on size foreign investors particularly powerfully hang from regional politicians while large investors dispose the sufficient internal resource and have a possibility by itself to overcome some of appearing difficulties.

The Regional factor plays vastly smaller role for large companies, which dispose the resource (in particular, political support) that эскалировать regional problems on federal level.


Average on size foreign investors зачастую do not fall into circle priority regional organ of power, in connection with than get other level of support.

Unlike investor first эшелона, the small investors have not a big influence (including known name) to stand the questions on more high level or obtain their consideration in corresponding to state location.

The Companies of the average size calculate to solve their own problems by means of regional institute, which in row region else it is not enough develop; the companies also have not an own resource to change the attitude at a rate of performers.

Thereby, level of support of the average companies on size in region will inevitably be other that can bring about full refusal of инвестирования.


The Row average foreign investor does not get the help and supports from regional organ of power, particularly if their projects are not considered priority.

To proceed with realization of the investment project, in many events necessary permit to administrations of the region, since otherwise investors will not be able to get the necessary permits on use by land, construction and t. d. As a result many initiatives average on size foreign investor remain нереализованными.

The Analysis 12 regions has shown that exist the differences in investment attractiveness region, and only half of them obtained the significant success in attraction STUMP.

In all events investors with due attention pertained to study  hard  factor that became the reflection of the investment potential region.

Hard  factors were taken in attention and, consequently, were analysed investor in context of its branches or directions to activity (for instance, south regions more suit for agriculture, central - for system логистических organization and etc.).

If follow the logic an investor, possible speak of that that exists the possibility in addition to reveal the investment potential of the region by way of the more subject choice of the branches or companies, which better other take into account  hard  factors of the region.

The Main  barrier for investor  зачастую were shown perception and waiting i.e.  soft  factors so investors consider that in region, where manage to adjust successful management a perception and waiting, barrier far less.


The Parameters used investor for estimation level barrier, in all region were practically alike that has permitted undertaking the benchmark analysis given on region disregarding branch specifics.

The Investors consider that degree of the divergences between factor of activity with standpoint  soft  factor in region is extremely high and on this necessary to call attention.