The Far East: Resource Frontier or Driver of Growth?
In 2015, an incentive system was put in place to spur investment in industry and infrastructure in the Russian Far East. Over time, this unparalleled initiative has proven to be highly effective. To date, more than 2,600 investors have taken advantage of various support measures, and more than RUB 5.4 trillion in investment has been put to work, with GRP growth in the Far East outstripping national figures. While manufacturing across Russia as a whole grew by 12.2% between 2015 and 2020, in the Far Eastern Federal District it grew by 23.1%, and between 2018 and 2020, per-capita investment in fixed capital in the Far Eastern Federal District exceeded the national average by 40%. Four regions in the Far Eastern Federal District were also included in the Agency for Strategic Initiatives’ investment climate top-30 list. Currently, the economy of the Russian Far East is heavily centred around the primary sector. As well as impacting efficiency, this situation makes companies in the Far East more vulnerable to volatility on the domestic and international markets. How can industry be reshaped and mature in the Far East? What steps need to be taken in order to enact qualitative structural reforms while preserving growth? What can be done to remove infrastructure-related barriers in the region, and open international markets to Russian companies? Where will funding to foster a new technological leap come from?
