Page 81 - RusRPTApr21

that investors are very often reluctant to invest and take a defensive position to protect existing businesses rather than taking expansionist positions to grow their businesses. This attitude acts as a brake on growth and once a business gets to the size where it is providing the owner a good living it stops growing.
Another goal in the new look national projects program is to reduce the state’s share in the economy and at the same time to use the potential of state-owned companies to "accelerate digital development” to make Russia welcoming for start-ups from all over the Former Soviet Union (FSU).
The "National Innovation System" is the development of IT and innovations, a favorite topic of PM Mishustin, and involves creating a favorable business environment for tech development and innovation. The plan documents talk about the "model of Korean chaebols."
Addressing problems. The new plan also aims to address some of the problems with the existing program. The head of the Audit Chamber Alexey Kudrin has been an outspoken critic and is constantly complaining they are going too slowly. According to Kudrin’s latest estimates for November 2020, only 70% of the planned spending on the program has been fulfilled. The most problematic areas were with:
Labor productivity (65%) Culture (67%)
Science (67%)
Small and medium-sized businesses (75.7%)
The demography national project was the best with budget execution of 86.2%.
81 RUSSIA Country Report April 2021 www.intellinews.com