21.10.08

Russia’s Ministry of Regional Development (MinRegion) has approved a new rating of regional competitiveness known as "IRPEX". The Institute of Regional Policy (IRP) will evaluate each subject’s potential based on 130 characteristics, from cost of work space and fiscal capacity to local education levels and the volume of discarded waste water. According to the Head of MinRegion Dmitry Kozak, it will help the ministry and government make “more efficient management decisions.” However, it seems that businesses are not yet ready to completely give up their own evaluation of provincial economics.

The new rating was discussed during a community board meeting at MinRegion. According to the ministry, the parameters were drafted based on data from open sources and polls. Among the leaders, of the new rating, as was expected, Moscow and Moscow region, Saint-Petersburg and Leningradskaya oblast, the Khanty-Mansijsk District and Tatarstan rank highly. Tuva and the North Caucasian Republic are at the bottom. Sometimes differences between regions are more significant than between some countries, and at times Moscow has a very vague idea about regions’ financial and economic potential. But this is unacceptable, especially in current crisis conditions.

The IRP did not disclose a full list of parameters for IRPEX – saying that they are a "commercial secret." However, it is known that one of the most important of them is the competitiveness of local banks. The Head of the Russian Union of Industrialists and Entrepreneurs suggested making the IRPEX index international and comparable to its foreign counterparts.

Businesses gave a positive response to MinRegion’s initiative but said they are not ready to fully rely on its evaluations.

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