KEF-2016 has provided the forum for innovative ideas and strategic expectations

KEF-2016 has provided the forum for innovative ideas and strategic expectations

KRASNOYARSK, February 20. Krasnoyarsk economic forum has set a goal to discuss this year with various angles of the upcoming “Strategy-2030”. And though at its creation according to various estimates it will take another 1.5-2 years, experts, officials and business representatives enthusiastically took up its discussion.

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According to the participants, which they have repeatedly expressed on the sidelines, this Sep-2016 will be remembered not so much the agreements concluded, this time in the regions and businesses have signed about 40 agreements, and figurative similes and vivid metaphors from the speakers of the forum.

The forum gave to its members and the press a lot of high-sounding phrases and non-standard ideas – Russia as a woman, the state administration as the axe, the resettlement of Moscow – only a few of them.

However, the discussion went much wider, participants held two days of meetings and round tables to discuss this not yet created the document with all parties and agree to include those aspects that are never used before in any similar document.

“The strategy must include, besides the socio – economic aspects, issues including defenses and security. Issues related to law enforcement, judicial system and so on, to have in one document was able to balance the challenges that the country faces”, said at the forum Deputy Minister of economic development Oleg Fomichev.

The people and the bowels

The tone of the discussions on the forum asked business Breakfast “the Future of Russia in the coordinates of the geopolitical and geo-economic long term trends”, organized by the . However, a few participants were distracted: they rightly decided to start not with a discussion of trends, with much of the analysis of the current situation in the country and the coming years.

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The results of this analysis can hardly be called optimistic. A key theme was the continued dependence of the Russian economy from commodity exports. However, not all participants saw this relationship negative.

“We constantly underestimate, looking at all of the technological innovation, the fundamental role of hydrocarbons in the development of our economy. We all say we are with this needle needs to get off. I don’t know about needles, even the pipes off, I think we can not”, – said the Deputy head of Vnesheconombank Andrei Klepach.

Andrei Klepach, Deputy Chairman of Vnesheconombank, on the oil needle

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Deputy Prime Minister Arkady Dvorkovich, continued thought and added that the Russian economy there are two “whales” – the land and human resources. His idea he developed at the plenary session, comparing Russia to a woman.

“Russia, what she can do: can heat the world with their resources, can feed the world, but it may teach the world. This means that Russia is a woman, and Russia, being a woman, can make a difference. And such a strategy can be successful,” said Deputy Prime Minister.

Innovative solutions

From the analysis of the current situation to move on to planning for the future at the plenary session of the forum was urged to escape, and cease “to pray on quotes” Chapter of “RUSAL” Oleg Deripaska.

No better, is not very optimistic he said. – You need to understand that structural overproduction for a long time, can see the price of oil and $18 is not going to die, and can see the rate in 100 roubles – also will not die. You need to move, knowing that it will be

Oleg Deripaska

He proposed to focus on developing agriculture, housing construction, infrastructure and processing of raw materials and not only.

“The strategy must consider who, how and in what way it can influence the judicial system to protect private property. We talk about corruption, we speak about the inefficiency of public administration, but the entrepreneur, the citizen must be able to come to court and receive a fair decision”, – said Deripaska.

In the quest to look into the future and move away from standard approaches supported Deripaska and Fomichev.

Oleg Deripaska, head of RUSAL, about the exchange rate

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“Probably the first thing that the state needs to do is to acquire some good qualities in terms of reforming the system of public administration. As there is an old joke about the lumberjack: he is asking why you cut, you have a blunt axe. He says, I have no time to sharpen the axe, to me the tree needs to be cut. Don’t want to be a lumberjack, we still need to sharpen the axe, public administration a little bit better in order to continue reforms to do,” he said.

Arkady Dvorkovich, Deputy Prime Minister, about the price of oil

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Security as the basis

However, an innovative approach Fomichev did not stop there. Another valuable idea from the economic Deputy Minister, he was asked to consider the strategy not only economy but also other aspects traditionally overlooked in such documents, the country’s defense, security, issues related to law enforcement and the judicial system.

“Largely a failure in the use of previous developed good strategies consisted in the fact that when you remain within the socio-economic model, all that happens outside, whether it’s national security challenges, whether the issues associated with the law enforcement system and so on, they are your socio – economic model within a year after the adoption of the strategy can be modified beyond recognition”, he said.

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It should be noted that this proposal goes in the General trend of the changing relations between the security forces and business, which is now becoming more obvious. Russian authorities have repeatedly made statements about the need to reduce pressure forces on the business. In December 2015, the message to the Federal Assembly, President Vladimir Putin said that excessive activity of law enforcement bodies is destroying the business climate in the country.

To solve acute issues in relations between business and security forces on 16 February of the current year by the order of Putin established a working group on monitoring and analysis of law enforcement activity in the field of entrepreneurship, the head of which was appointed head of the presidential administration Sergei Ivanov. Its membership included representatives of major business associations – RSPP, CCI, OPORA Russia and Business Russia and General Prosecutor’s office, investigative Committee, interior Ministry and the FSB, the assistants to the President of the Russian Federation Andrey Belousov and Larissa Brycheva.

However, as stated by Ivanov to journalists, the working group will not consider individual case. Its activities will aim to facilitate the work of entrepreneurs, improve the investment climate.

From the General to the particular

At the same time to hold large-scale strategic flight of thought in the horizon of decades, the participants of the forum failed. However, it was not required: already long ago formed the opinion that it is in the Krasnoyarsk business and regions can talk about their life, about the small but no less significant contribution to the Russian economy.

And again, the trendsetter made Deripaska, who stated the necessity of settlement of Moscow. According to him, each time, approaching Moscow, he thinks: “What are these people doing?”. Deripaska stressed that the overcrowding of Moscow – is a consequence of the commodity boom and the real problem for the Russian economy.

The present view is automatically switched to regional Affairs. In particular, the regions could boast in the development of strategies. “It is important that government officials, heads of business structures, scientists, confirmed the main provisions stipulated in the development strategy of the Krasnoyarsk territory”, – said the Governor of the Krasnoyarsk region Victor Tolokonsky.

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Krasnoyarsk region became the first region who announced his intention to Supplement its strategy number of points made on the forum. The updated strategy for socio – economic development of Krasnoyarsk region the regional authorities plan to submit for public consultation later this year.

Ulyanovsk region in the framework of the EFC 2016 is not gathered and shared ideas to improve the socio-economic life by example. The Governor of the region Sergey Morozov has told, as the region in 2015 was able to increase the amount of attracted investments by 2.5 times to a record high of 90.1 billion, due to creation of barrier-free environment for business, and to help save entrepreneurs up to 700 thousand in fines by developing a risk-based approach to control and supervision (oversight model provides vacation enterprises with a low degree of risk).

Save pronounced regional accent on the forum going next year. As reported in the regional administration, experts will start the development programme of the EFC-2017 in the near future.

Industry details

If the first day of the forum almost entirely swallowed up the topic of oil, the second day has already been logically assigned to other areas of activity – housing, tourism, metallurgy and transport. Suddenly a lot of news in store for this forum, it is the metallurgists.

At the KEF-2016 were made by top managers of mining companies with major assets in the region – RUSAL, the largest aluminium producer in the world, MMC Norilsk Nickel, the world leader in the production of Nickel and palladium and Russia’s largest gold miner, which is part of 10 global leaders, the company “the pole Gold”.

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It was about a bad conjuncture of the commodity market, development of domestic demand, the state guarantees fiscal stability for large projects and General development plans.

Director of the polar division of MMC Norilsk Nickel, Alexander Ryumin noted the growth of investment in this division, which is more than 40% of the total capex of the group in 2016.

Vice President, MMC Elena Bezdenezhnykh signed a supplementary agreement between the Krasnoyarsk region and Norilsk on the modernization and development of social, engineering infrastructure and housing in Norilsk.

The company “the pole Gold” declared that by 2020, plans to increase gold output by 1 million ounces to 2.8 million ounces, compared with plans in 2016 thanks to the development of existing facilities and the resumption of construction at the Natalka Deposit in the Magadan region.

The world

The logical outcome of all the discussions on the forum around strategies and overflowing into the corridors discussions were summarised by Deputy Prime Minister Arkady Dvorkovich, who said that such strategic documents as the “Strategy-2030” should be public discussion.

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“We agreed that the “Strategy-2030″ should not be some government document, but a document of the company. It should pass broad public discussion and to be if not a consensus, it is indeed perceived positively overwhelming part of the society,” he said.

The idea was developed by Deputy MAYOR Oleg Fomichev said, adding that the strategy should not be the Ministry’s strategy shouldn’t even be a government strategy.

“The strategy must be the strategy, the customer have to give the President. Because if it’s a country’s development strategy, the main man in the state should be the customer, who then uses this strategy, that is, in real life. And that’s what was missing, including our previous strategies,” he said on the last day of the forum.