Private and public finance in regional development of Magadan Oblast

Following the methodology of Council for the study of productive forces (SOPS) we estimate the contemporary level of investment activity in 9 regions of the Far Eastern Federal District (FEFD) of Russia. We received the following results: the average level of investment activity in the Far Eastern federal district is 1,1 times higher than the average Russian level; 5 of 9 regions surpass level of investment activity in the range from 1,23 to 2,19 times; other 4 regions don't reach the average Russian level (0,66-0,97). However, in our opinion, comparing level of investment activity of the region with all-Russian by this methodology, we estimate mainly a ratio of growth rates of the investments normalized to per capita volume in the region and Russia. At the same time we don't receive information on sufficiency of investments for regional development. Therefore, it is necessary to estimate investment safety of the region. Level of investment safety can be estimated, using as the indicator the relation of the volume of investment into regional economy to the gross regional product (GRP). In a technique of experts of IE URO Russian Academy of Sciences threshold value of the indicator of investment safety is defined as 25%. Values of the indicator of investment safety in one of the regions - the Magadan region for the period throughout all estimated period (1999-2011) except for 2007-2009, are in a zone of 'a pre-crisis condition'. That testifies insufficient level for effective functioning of the regional economy (per capita amount of investments and growth rates of intra regional investments of business in fixed capital). Prospects of improvement of investment activity are connected with implementation of the investment projects directed on diversification of the regional economy: investment activity will increase by 1,3-8,1 times, threshold level of investment safety will be reached and exceeded, the gross regional product will increase twice. Realization of investment potential depends on the favorable investment climate promoting involvement of the Russian and foreign investors in this region. Development of measures for the following directions is necessary for improvement of investment climate: elimination of infrastructure restrictions; the state support of investment activity via the mechanism of establishment of the preferential taxation in public private partnership; creation of effective model of interaction 'the region - the investor', allowing the investor to be in continuous communication with governing bodies of the territory; simplification of procedures; definition of mutually advantageous conditions for implementation of the investment project and others.