Development of the Long-Term Investment Market: Modern Transformations in the National Mechanism for Economic Growth Financing

Abstract

The economic growth and its sustainability depend on volumes and dynamics of long-term investments that require careful forecast of the future. Therefore, the paper analyzes the development of long-term investment financing in Russia in 2016–2018. The relevance of the research stems from the need to seek new and develop existing sources of funding the economic growth in Russia. The subject of the research is a set of measures implemented in the framework of the national financial market development plan, compared with recommendations of global level institutional investors related to long-term investment financing. The purpose of the research was to formulate proposals on how to introduce global management recommendations into the national financial regulation practice and offer a set of actions to national governments to support long-term investment by institutional investors. Based on the research findings, it is concluded that the priority in the Russian financial policy should be given to decisions towards overcoming national development problems rather than to decisions aimed at harmonization of relations in the investment sphere and creation of favorable conditions for foreign institutional investors. It has been stated that the main criterion for making a financial decision in the Russian Federation should be development level achieved, challenges facing society as well as available resources and opportunities, including the tolerance (or intolerance) level of the international environment. This position is currently demonstrated by the national financial regulator.