Export support measures with the help of Strategic initiatives Agency are successful
August 7, 2013 the Strategic initiatives agency for the promotion of new projects hosted a working group session for monitoring the execution of measures (“road map”) “Support of foreign markets access and export support.”
The session, headed by the working group chief, CEO EXIAR Pyotr Fradkov was attended by representatives of businesses, business associations, The Ministry of Economic Development and Trade, Ministry of Finance, Central Bank of Russia, experts.
The meeting members discussed the points of the “road map”, which execution period is either expiring or has expired (according to the plan of execution).
Opening the session, Pyotr Fradkov said that systematic support of non-resource export is the new trend of Russian public policy, which can contribute considerably to the economy development, and timely implementation of road map points can be viewed as the first KPI (key performance indicator) of this trend sustainability. The head of the working group said that the road map was created with the help of thousands of businessmen and experts, engaged through crowdsourcing. Major Russian exporters were also helpful.
Yelena Nazarova, deputy director of Department for coordination, development and regulation of external economic activity of The Ministry of Economic Development and Trade of Russia, speculated on execution of measures for businessmen support system, for those who are ready to bring their products to the foreign markets. These measures include creation and development of a special portal about external economic activity. The creation of real financial and legal support system of non-resource export from Russia is almost completed. Legislative amendments in view of Russia WTO and ОECD accession are developed. Commercial agency regulations in view of the change of conditions and their intensity are created.
The meeting members have come to the conclusion that on the whole the standard of non-resource export support is ready, however it is not presented to the public as a systematic report, which complicates the usage of state measures and services by the businesses. Creation and promotion of uniform approach to the state support of export will be one of priorities of the working group. Measures for export support are omnidirectional: it’s the financial support, interaction with development institutes, initiatives support in Russian regions. The interaction between federal, regional structures and development institutes is already set up (Vnesheconombank, EXIAR). The regulations are prepared and directed to regions to be implemented locally.
Representatives of business community noted the efficient measures, taken by the Ministry of Economic Development and Trade of the Russian Federation as part of execution of the road map. According to Viktor Ermakov, CEO of Russian Agency for Small and Medium Business Support, special authorities, supporting export, are already open in 57 regions of Russia. They have already proved to be efficient this year: over two thousand projects were presented to foreign investors, 687 out of them were up for approval. This is one of the most successful indicators in Europe.
However the work in the regions has revealed some problems — “mainly it’s lack of distinct strategies of export potential fulfilment on a regional scale.” “There are very few regions, where this issue is on governor’s agenda at least top-10,” said Viktor Ermakov. Representatives of regional business associations noted that this problem should be the impulse to developing regional standards of export support.
The main pressure, concerning the practical execution of export support measures is put on regional centers and sales representatives in the regions. In order to stimulate their development and determine level of success, working group members prepared special criteria (to be monitored annually).
In 2013 the work of regional centers will be estimated according to the volume of rendered services, the number of businessmen to receive consultations. The centers must organize at least five promotion events, at least two business missions, at least five export contracts in the region must be signed with the help of the center. The minimum efficiency of a business mission is defined at the level of one contract; there must be at least five internships and training courses organized for the exporters. The number of websites of the businessmen, translated into English with the help of the centers, will also be estimated.
Following this estimation at the end of 2013 there will be measures concerning regional centers of export support: those who won’t be able to fulfil the requirements might lose the federal funding (presently ¾ of regional centers funding is federal).
According to business community estimates, only a few regions are ready to get involved in intensive export enhancement, that’s why there is the need for consultation support from the federal center.
However in general execution of the road map is successful, there is no prospect of rescheduling of some points execution.
The only difficult matter, Russian accession to convention on international factoring, will be discussed shortly during a special meeting of working group members.