The architecture of power: relying on the regions will help avoid a crisis in the face of sanctions

A strategic answer to the question: “Is there life beyond the Moscow Ring Road?” – became a key for Russia

According to the Ministry of Economy, in June, the GDP of our country decreased by 4.9% in annual terms, and in the second quarter the decline was 4%. Retail trade turnover decreased by 7%. According to the authorities, this is not the limit. In mid-May, the department of Maxim Reshetnikov reported that in 2022 the decline in Russia’s GDP would be 7.8%. According to the VEB Institute, the recession has already covered 60% of the regions, and so far there is no reason to believe that the bottom point of the recession has already been reached. at the Institute for Growth Economics. P.A. Stolypin stated that it is possible to change the situation, but a systemic revision of regional policy is needed. About what needs to be done and where Russia can look for strength for development – in the material “MK”.

A systematic approach is important in regional policy. “We need a roadmap for all regions, compiled on the basis of statistics,” says Nikolay Palchenko, chairman of the Murmansk regional branch of the Party of Growth, owner of the Capital company. “Key industries and growth drivers should be identified.” In this regard, the development strategy of the subjects of the Federation, presented by the Stolypin Institute in the NEP 2.0 project, is of great interest. According to the experts of this organization, it is necessary to reform the entire system of regional governance.

First of all, the role of the Bank of Russia should be changed: the mega-regulator should switch to close coordination of its activities with federal and regional authorities. Boris Titov, Commissioner for the Protection of Entrepreneurs’ Rights under the President of the Russian Federation, said that over the past 8 years, the Central Bank has carried out a serious concentration of banking activity: now all of it is concentrated in the hands of 3-4 large systemic banks. “In the summer of 2013, 11 regions did not have their own banks, and in 2022 already in 24,” the business ombudsman pointed out. – Despite the fact that large banks benefit from scale, small regional credit institutions are closer to the client and are not bound by the rules of central offices. They are more “business-patriotic” and know the specifics of the regions better. Even now, despite the share of assets of 3.3%, they account for 12% of individual entrepreneur loans and 9% of bank offices. I would like the mega-regulator to stimulate macro-regional banks – this will seriously increase the level of competition, make regional banks more customer-oriented.

“The entire policy of stimulating regional development is in the hands of the Ministry of Finance,” adds Titov. “These are budget loans, transfers, taxes, subsidizing interest rates on loans in preferential areas.” It would be possible to stimulate the least developed regions through special refinancing programs of the Bank of Russia, and not through an ever-saving budget, the business ombudsman suggests.

In addition, the mega-regulator could facilitate the issuance of regional and municipal bonds. This is a good source of funds for infrastructure projects. The inclusion of these bonds in the Lombard list would significantly help the implementation of development projects in the regions.

Our country can benefit from the experience of the most successful Asian countries. According to the director of the Institute for Growth Economics. P.A. Stolypin Anton Sviridenko, there, in the special economic zones, activities are simplified as much as possible, a comfortable infrastructure has been created and taxes have been reduced. In Russia, too, it is necessary to create such hubs, where both domestic and foreign companies, as well as joint ventures with special tax regimes, reduced VAT, investment tax deductions, and in convenient locations can operate. “The experience of Singapore and China’s preferential zones deserves attention, especially in terms of benefits for export-oriented and high-tech SMEs,” Alexander Rybakov, Commissioner for Entrepreneurs’ Rights in the Chuvash Republic, continues the conversation. The most important thing for such zones is minimal taxes, additional benefits when reaching certain production indicators, a cluster approach, absolute ease of registration, ease of delivery, direct interaction with external markets. According to Titov, it is extremely important for Russia to create such hubs in the border regions in the East, where foreign investors, including from Asian states, can come.

Another important step is the creation and additional capitalization of regional credit institutions through subordinated debt. At the same time, three types of specialized banks should be represented in each macro-region – foreign trade, a housing and construction bank, and for the development of small and medium-sized businesses. “Under the conditions of sanctions, the regionalization of banks is beneficial,” Sviridenko points out. – The more banks, the more difficult it is to impose sanctions on them. This is what concerns foreign trade.” In addition, for each macro-region it is necessary to create its own development institute, which will have local expertise and, at the same time, funds to support large projects, the director of the Stolypin Institute believes.

To achieve the full effect of the policy pursued in the subjects of the Russian Federation, it is necessary to implement a systematic decriminalization of business activity. In legal practice, it is very difficult to distinguish between the interests of a legal entity, its management and owners. “Often, entrepreneurs go into the“ gray zone ”only in order not to“ shine ”transfers of large amounts of funds,” explains the head of the regional branch of the Party of Growth in the Lipetsk region, associate professor of the Russian University of Economics. G.V. Plekhanov Vadim Kovrigin. “The initiative of the Ministry of Justice to remove imprisonment from some of the “entrepreneurial articles” of the Criminal Code of the Russian Federation, as well as criminal liability for work without registration, is extremely positive.” There is no need to be afraid of deregulation, the regional business will not go into the “shadow” – on the contrary,” the expert emphasizes.

The transformation of the judiciary is also important: its approach must cease to be unambiguously accusatory. “Changes in the legislation have already been launched, which increase the threshold for damage under “entrepreneurial articles”, some offenses are decriminalized,” Sviridenko points out. “However, other important issues have not yet been resolved: this is the non-application of detention on businessmen under “entrepreneurial articles” and the expansion of the use of bail.” In law enforcement practice, it is necessary to strengthen the role of the prosecutor’s office. According to the director of the Stolypin Institute, this will ensure double control and avoid the use of investigative actions as pressure on entrepreneurs.