The head of EDB speaks at an international conference on ensuring entrepreneurship in the Eurasian Economic Space
Almaty, 28 March 2013. - Igor Finogenov spoke today in Almaty at the prominent international conference The Experience in and the Problems of Investment, Financial and Banking Support to the Activities of Industrialists and Entrepreneurs in the Eurasian Economic Space. The head of EDB told about mutual investments between the CIS countries and Georgia and the Bank’s experience in promoting this type of investment in Eurasia.
He also spoke about the challenges and opportunities for industrialists and entrepreneurs associated with integration processes in the Eurasian economic space.
Igor Finogenov believes that a long-lasting stability of integration processes can only be achieved by means of a proactive and successful «bottom up» integration, which includes mutually beneficial flows of goods, services, labour and capital and, in the first place, investment flows and labour migration — or, in other words, the movement of the most important factors of production — capital and labour.
The integration of markets, resources and assets is of benefit for two reasons. First, a larger domestic market creates favourable conditions for achieving economies of scale. Second, closer technological ties ensure the necessary stability and provide more resources for the technological race.
However, as the head of EDB pointed out, the most important key task was to revive the industrial sector as it remained a locomotive for the economy. The existing policies should factor in the demand of certain countries for cutting-edge and high-quality industrial products, the needs of the member states of integrated associations and the export potential.
Trans-border companies and holdings with assets in several countries of the forthcoming Eurasian Union can become a very important stability factor. These projects can involve many problems; however they will form a basis for long-term economic integration which will be capable of overcoming crises. Jointly-owned transnational corporations should be set up in places which already offer relative and/or competitive advantages or a serious potential for their development. The post-Soviet space has about ten or twelve sectors beyond the oil and gas sector, which can become, in Igor Finogenov’s opinion, breakthrough points.
The traditional objective of continuing economic diversification in order to reduce dependence on the primary sector remains an important task for major CIS economies. EDB is paying particular attention to the advancement of sectors and businesses that help maintain this diversification, the head of EDB concluded.
The conference invited well-known businesspeople and representatives of regional integration associations, international organisations, chambers of industry and commerce, banking communities, business associations and industrial unions — a total of approximately 150 delegates from sixteen European and Asian countries stretching from China to the Balkans and the Baltic states.
The participants discussed in depth the role and practice of foreign economic cooperation between Eurasian enterprises, the international financing of business projects by financial structures from cooperating states, the status and prospects for comprehensive interaction between financial and banking institutions and the real economy sectors, and the role of business associations in its improvement. In addition, they had a unique opportunity to learn about top priority integration projects in various economic sectors and the financial and banking system, share opinions on the development of business cooperation and make proposals as to how remove barriers for business development in the Eurasian space.
Additional Information
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org.