15 Like other leading transition economies, Russia has adopted a series of instruments to improve the overall investment climate, but many investors are concerned about the grey areas which discourage decision-makers from planning and executing FDI projects. These areas are:
Framework Conditions for Foreign Investors
|• ||political instabilities,|
|• ||malfunctioning of the judiciary,|
|• ||poor economic and infrastructure conditions,|
|• ||high energy costs,
|• ||imponderabilities with taxation,
|• ||the still unresolved land ownership issue.
In their efforts to facilitate matters for foreign companies, successive governments have formulated a series of draft laws which have been submitted for approval to the State Duma.
The future success of Russia's FDI policy will be determined by progress made in the country's macro-systems (Figure 15.1). These systems need to be improved through appropriate measures.
Figure 15-1 Macrosystems to be optimized for FDI enhancement
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Foreign Direct Investment in Russia: A Strategy for Industrial Recovery.
Contributors: Paul Fischer - Author.
Publisher: St. Martin's Press.
Place of publication: New York.
Publication year: 2000.
Page number: 467.
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