Smolensk Region Reiterated Its Position in the Russian Regional Investment Climate Index
The results of the Russian Regional Investment Climate Index have been presented within the framework of the St. Petersburg International Economic Forum. The Index is calculated based on 44 indicators which make up a total of 400 points as a maximum. The rating findings show that the Smolensk Region has added up 19 points compared to last year and managed not only to maintain its position in the index being ranked 31st but could also move from Group III (including the regions showing modest progress) to Group II (representing the regions which succeed in developing).
“It is hard to identify the leaders so far, due to the fact the rating has been done for 5 years and the regions are showing positive growth dynamics. As a matter of fact, the regions are fighting fiercely to improve the investment climate. For the past 5 years the rating has caught the interest of governors and project teams, involved in this project within the regions. The regions follow the progress of each other and adopt experience of the constituent entities included in top-20 regions, to learn how they did it,” pointed out Svetlana Chupsheva, CEO of the Agency for Strategic Initiatives to Promote New Projects.
Speaking about the counting method used to assess the rating results, CEO of the Agency for Strategic Initiatives noted that in order to keep up with the same index position this year, at least 7 of 44 indicators needed improvements, and in order to move up in the rating they needed to make 50% of indicators better, which was more than 20. “This is a great challenge for the regions, because each indicator needs thorough investigation which takes much time. It was hard for them to keep their position, much less to move on,” emphasized Svetlana Chupsheva.
While presenting the results of the Russian Regional Investment Climate Index at the St. Petersburg International Economic Forum, Svetlana Chupsheva paid attention to the leading position of the Smolensk Region by such an indicator as Small Business Support represented in subsidies and other forms of support, as well as in sites and educational programs.
While assessing the findings of the Russian Regional Investment Climate Index, Governor Alexey Ostrovsky underscored as follows: “I consider retaining our positions in the Russian Regional Investment Climate Index as well as the fact that the Smolensk Region continues to rank 31st for the second year running, being ahead of other regions of Russia, as infallible success for the Regional Administration Office. We have also managed to improve our results by other indicators, considered in the investment climate index rating, for example, we have risen by integrated index, and moved into the group of regions which are considered to be successfully developing.
We are especially delighted because of the fact that the Agency for Strategic Initiatives has included the Smolensk Region into five regions which are most successful in developing small and medium business. This is also a result of our systematic approach to work, as we understand that a positive growth tendency within this segment of economy ensures successful regional development, as a whole. Unfortunately, starting from Soviet times, there are not so many large enterprises in the Smolensk Region for historical reasons, that’s why we need to develop small and medium business first of all. This is an additional source of new jobs and provides for considerable tax base development.
The results of the Russian Regional Investment Climate Index show that there are regions which have passed their positions for the last year, as well as there are some which have showed growth, and in the view of these changes and shift in positions our stability shall be considered as a success and serve as an indicator of sustainable investment development of the Smolensk Region.”
The Russian Regional Investment Climate Index is arranged with the support of the Agency for Strategic Initiatives to Promote New Projects. The research is aimed at assessing the efforts taken by the regional authorities at any level to improve business environment in their regions. According to experts, the index results encourage competition for investments at the regional level.