The Supreme Council
of the Pridnestrovian Moldavian Republic

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The Industry - is the Support of Economy

23.01.2015

Russia - is a country-giant with powerful economic potential. Firstly, it is geographically superior to any other state: the area of 17.1 million square kilometers occupies 12% of the total land area. Huge size causes a variety of climatic conditions, and hence the resources. 90% of Russian exports is associated with wealth, according to nature. But this source - no magic tablecloth, and sooner or later with uncontrolled seizures can dry out on the background of non- replenishment. It is necessary to focus efforts on the development of production, import substitution and export goods processing industry.

If we talk about the legislative regulation of the issue, the law "On industrial policy in the Russian Federation" was adopted by the Duma and signed by the President at the end of last year. It established itself as a leader in the ranking of the most relevant and discussed documents of the fall session. The law-in-draft, which has a national strategic value was attributed to the ideological category. Talks about it necessity were conducted fifteen years ago. The idea was embodied in the real form in 2014. Representatives of different branches of government, business and the public were attracted to discuss the new initiative developed by the Ministry of Industry.

Uniform terms of industrial development of areas were created by the efforts of the authors. The law stipulates in detail the procedure of formation and implementation of special investment contracts, the creation of industrial clusters, principles of government orders obtaining. Measures to stimulate production and financial support for industrial activities were identified. Among the innovations – there is financial support on a returnable basis of projects implemented within the framework of state programs. Important role is assigned to the Industry Development Fund. Incidentally, he has appeared in Russia before the Law on Industrial Policy. Vladimir Putin voiced the idea of its creation in May 2014, and in September it was implemented on the basis of the Fund's technological development. 20 billion rubles has been already directed to the new fund, entry of 16 more is expected in the near future. Annum remedies, provided at 5-6% are effective and popular tool to support businesses. Industry sector subsidies are intended to ensure maximum stability and modernization processes. Preferences among potential recipients of financial assistance are given to those who are making moves to supersession of foreign goods from the Russian market. Such criteria as produced goods innovation is important. Ideally, it should not only be in demand at home, but also to compete freely with counterparts abroad. Transition of the Russian economy from the export of raw materials to innovative development is clearly stated in the text of the law. Developers provide tax preference, for example, entrepreneurs that create new jobs or high-tech industries.

Interesting and, according to experts, promising innovation – is the special investment contracts, or as they are called, three sides contracts. Signed ten-year agreement, on the one hand, provides additional opportunities and strictly regulates the obligations of the investor, regional and federal authorities, and on the other - guarantees invariability during the decade of the rules enshrined in the signed document.

Among the priority sectors of the Russian industry there is oil and gas sector, metallurgy, pulp and paper and textile production. automotive industry – is one of the main sectors. Special attention to it is explained by multiplicative: one job in the automotive industry employs another 12 people in other industries. Pharmaceuticals is at the new level. The development strategy of the sector was adopted in 2009, the federal and state program of development - in 2011 and 2012, respectively. Russia is becoming attractive for investors specializing in the production, but not supply of medicines and medical equipment. The Government expects to achieve 90% availability of medicines in Russia by 2018. In the presence of at least two competitive goods produced in Russia, foreign counterparts will not be allowed to contest for state order. The principle of local producers supporting everywhere is coming to the fore.

The State information system of industry will be created to control the state of industrial production and building of sectoral balance system.

It is expected that the industry is maintained from the budgets of different levels. Regions will receive funds for this purpose on a competitive basis. Fines are assumed for the target money inefficient allocation. Their size has to be approved. Generally, with the adoption of the Law "On industrial policy in the Russian Federation" the work in this direction, including legislative, has not yet been completed. Necessary changes will be made in at least twenty laws and legal acts for the full implementation of its provisions. It is expected that new and existing regulations will be brought into conformity during six months.

Pridnestrovie hopes to raise its industry. However, there is little similar to the strategy in our dreams, unlike Russian. The work in this direction is underway. At the end of last year the Supreme Council adopted the draft Concept developed by the government industrial policy PMR for 2015-2019 years in the first reading. This document aims to assess the state of the productive capacity of the state to identify priority areas for industrial development and implementation of tools to determine the plans. The authors considers the achievement of stabilization and further development of the industrial sector as one of the most important tasks, which will lead to the improvement of the socio-economic conditions of the population. According to the developers of the document in the course of its formation, the proposals of the executive bodies of state power and local government entities of industrial activity, and representatives of the Union of Industrialists, Agrarians and Entrepreneurs of Pridnestrovie and Chamber of Commerce of PMR were taken into account. At that, the defenders of Pridnestrovian business, insisting on the necessity for such a document, talked about the significance of its practical content. Executive director of the Union of Industrialists, Agrarians and Entrepreneurs of Pridnestrovie is sure that the concepts, not supported by specific programs will never become a real guide to action. Vladimir Berkovich considers it necessary to follow Russian footsteps and the draft Concept of industrial policy for public discussion. Parliamentarians talked that in the course of the discussion of initiatives about the fact that the government presented updated Concept’s disadvantage is declarative, returning again and again to the necessity not just to list the classic measures to support the industry and offer actual ways out of this or that situation.

According to the chairman of the responsible committee, the emphasis now should be on ensuring economic security of the state, which are components of import substitution, support local producers and food security. We talked about the feasibility of developing investment and human resources policies, as well as the establishment of clear and transparent mechanisms for credit, taxation and customs clearance of industrialists. Deputies consider the development programs for the development of existing and creation of new industries as a promising step.

Chairman of the Committee on Economics Oleg Vasilaty called the adoption of the Concept of industrial policy in the first reading "advances to the government" issued with the expectation of this document practical content.

The industrial potential of Pridnestrovie, despite all sorts of negative factors is still great. To date, 105 large companies and 520 small businesses operate in 11 sub-sectors of the economy. We are talking about electric power, metallurgy, machine building and metalworking, chemical, electrical, wood, woodworking, light, food, flour and cereals, and printing industries. Manufacturing is the foundation of providing employment and stability of filling the budget. Industry has been the subject of special pride of Pridnestrovians in the past, the republic relies on a strong industrial shoulder in the future. Today it needs a helping hand itself, and the state must lend it.