On February 3rd, 2009 the Chamber of Commerce and Industry of the Nizhny Novgorod Region hosted a meeting of its members in the grand hall. The most important issue on the agenda was the impact of the world financial crisis on small and medium businesses and measures to improve the situation.
The participants of the open meeting included Mr. Vladimir Ivanov, Deputy Governor, Deputy Head of the Government of the Nizhny Novgorod Region for Social and Economic Planning, Budgetary Relations and Investment Policy, heads of ministries and administrations of the Nizhny Novgorod Region, law-enforcement agencies, customs and financial authorities as well as representatives of business organizations and public bodies of the region. The managers of the Berkut Association of Guard and Legal Companies were invited to the meeting.
Opening the meeting Mr. Dmitry Krasnov, General Director of the Chamber of Commerce and Industry of the Nizhny Novgorod Region, said that the world financial crisis had had a significant impact on the Russian economy and economic development of its constituent territories including the Nizhny Novgorod Region. According to him, many enterprises of the region experience significant difficulties. The production output has reduced, there is a lack of working assets, profits have fallen, many production facilities had to suspend their work and lay off employees.
“We think the right approach is to unite the activities of businesses and authorities to prevent negative consequences of the world financial crisis”, said Mr. Dmitry Krasnov.
The Coordination Committee for regulating the consequences of the world financial crisis for the economy of the Nizhny Novgorod Region was established at the Governor of the Nizhny Novgorod Region. The interests of the business community in the Coordination Committee are represented by the Chamber of Commerce and Industry of the Nizhny Novgorod Region. A plan was passed by the Government of the Region for stabilizing the economic and financial situation. The plan was prepared with participation of the Chamber of Commerce and Industry and includes an extensive list of measures for overcoming the financial crisis. A list of enterprises which will receive state support has been developed.
Mr. Dmitry Krasnov considers that support for small businesses is a key success factor in overcoming the crisis. The General Director of the Chamber of Commerce and Industry of the Nizhny Novgorod Region pointed out that development of small businesses was the key solution for reducing the increased unemployment rate. However, according to him, small and medium businesses cannot work effectively as no long-term credit facilities are available to them.
The General Director of the Chamber of Commerce and Industry of the Nizhny Novgorod Region informed the meeting that due to the world financial crisis, Antirecessionary Center LLC was established at the Chamber. The Center will assist businesses in facing new challenges and provide services for financial restructuring.
Mr. Dmitry Krasnov also told about the results of the Chamber of Commerce and Industry in the Nizhny Novgorod for 2008. Special attention was paid to the lawmaking activities. Last year the Chamber actively participated in the preparation of the Law of the Nizhny Novgorod Region on Development of Small and Medium Businesses.
The Chamber also intends to participate in creating a development program for small and medium businesses in the region.
Mr. Krasnov told about the activities of the Chamber in economic security, overcoming administrative barriers, preventing corruption and distribution of infringement products. He also told about the results in regulation of the advertising market, development of the innovative potential of the region, monitoring the market of educational services and training of work personnel, development of alternative ways for solving financial disputes, expansion of the foreign economic and regional connections of the enterprises in the region, exhibitions and other activities.
As for the goals for 2009, special attention, according to Mr. Dmitry Krasnov, shall be given to innovative development of enterprises. A vital aspect is development of small enterprises which create jobs and in the long term define the welfare of the region.
Mr. Pavel Solodky, the coordinator of the Delovaya Rossiya All-Russian Public Organization in the Privolzhsky Federal District, Chairman of the Nizhny Novgorod Regional Department of Delovaya Rossiya, considers that the problems of small and medium businesses can be solved only on the federal level and not just in the regions. He also pointed out that monitoring of small and medium enterprises showed that they did not file statistic data concerning the number of dismissed employees and planned job cuts. It results in understated unemployment rate according to the official data. The same is true for inflation forecasts for 2009.
Mr. Solodky is sure that small and medium businesses will not be able to get credit facilities at acceptable terms in the near future. He calls for strict operational measures for regulating banking activities in particular in crediting. He also believes that a range of measures should be taken on the regional level. He mentioned the wide-quoted slogan “Buy if it’s made in the Nizhny Novgorod Region” so that the tax revenues stay within the region.
Mr. Vladimir Ivanov, Deputy Governor of the Nizhny Novgorod Region for Social and Economic Planning, Budgetary Relations and Investment Policy, answered the questions of entrepreneurs and told them about the measures taken by the Government of the region for improving the economic situation.