Proactive investment policy of the state as the key to dynamic development of national economy

Abstract

The article demonstrates that virtually all the professional community, regardless of the affiliation of its individual representatives to various political forces and/or schools of economic thought, shares the opinion that the Russian economy will not regain growth without a revival of investment activity. The launch of an investment based economic growth mechanism can lead to a multiplier effect. The base forecast of development of the Russian economy that is proposed today - is quite cautious. Along with the basic, a number of alternative scenarios are examined, and though on many issues the opinions of the experts differ dramatically, however, none of the proposed options does reject as impossible the aim of the growth of the domestic economy. A critical analysis of the various approaches to this problem is done by the author and concrete proposals for solving this problem are produced. The key issues that predetermine policy priorities and specific mechanisms for the revival of investment activity are outlined as follows: diagnostics of the investment activities barriers and factors favorable for the investment activity; determination of priority areas for investment; and identification of resource provision mechanisms for investment programs and projects implementation. Special attention is paid to a system of measures that, while requiring no budget investment in fixed assets, may contribute to an improvement of mutual trust in the state/business/civil society triangle and an increase in investment activity on the basis of public private partnership development and the use of the Bank of Russia capacity to solve the problem of creation of 'long and relatively cheap money' in the economy. Recommendations on the selection of investment priorities are based on conjunctive application of Liebig's Law and Maslow's Hierarchy of Needs.