Investment climate in Russia, ways to improve

The investment climate in Russia and in all countries with a market economy determines many factors: economic, political, social, financial, geographical, legal. They determine the attractiveness of the country or a particular region for investors who carefully evaluate them when investing money.

The investment climate is the place where all investment processes take place and this concept is acceptable for countries with a market economy. It is favorable or unfavorable. Favorable - where the investor feels free, where he can work actively, freely and without the risk of attracting additional resources. The unfavorable carries many risks, there is a capital outflow, which leads to a decrease in investment activity.

There are two reasons that affect the investment climate in Russia and other countries:

• Objective, they include climatic conditions, geographic location, availability of energy resources, geography of the place of investment;
• Subjective (this is purely a human factor).

The country's investment climate is directly linked to the state's policy in this direction, from economic and organizational measures for management in the country as a whole and on the ground.

The investment climate in Russia is gradually improving, the government has made many positive decisions, backed up by the legislative level. Everyone understands the need to avoid oil dependence and improve the diversification of the economy. There is a need to attract not only external, but also domestic investment. Particularly noticeable is the need for Asian regions of the country. Eastern regions should improve Russia's investment climate. This is repeatedly mentioned by Vladimir Putin at the forums.

Dmitry Medvedev, for this, proposes in the Far East to create an investment regime and differentiate taxes. He also proposed the creation of an investment fund in the area, which will improve the investment climate in the Far East.

In the world economy there is a marked reduction in development, all experts say this. But Russia is in the leading part of the list on macroeconomic indicators. Positive impact of the country's accession to the WTO, this fact will increase the investment climate in Russia. At this time in Moscow there is an active discussion of the creation of the "International Financial Center". A difficult task has been set up, but the necessary task is from the 120th. Places of attraction for investors to rise to the 20th., And within 2-3 years. This shows the government's desire to improve the investment climate in Russia as soon as possible.

But investing in Russia remains a rather risky business. The technical apparatus is out of date, even a strong scientific potential does not attract investors much. The Russian economy is developing extremely slowly, it is required to actively act and improve the country's investment policy .

The investment climate to date indicates a decrease in public confidence in the state, which reduces domestic investment. Inflation and instability in politics are also adversely affecting this.

Special attention should be paid to priority measures:

• Understanding of the ruling structures with parties and public organizations;
• Elimination of corruption and crime;
• Reduction of inflation;
• Improvement of the tax base;
• Adopt a law on bankruptcy;
• Provide incentives to investors.