On the main trends and growth points of the region's economy - an interview with the Chairperson of the Committee for Economy of the Vitebsk Regional Executive Committee, Anzhelika Nikitina
About the main trends and growth points of the region's economy, the role of small and medium-sized businesses, niches available for entrepreneurs, highlights of the next International Economic Forum, and much more – a conversation with the Chairperson of the Committee for Economy of the Vitebsk Regional Executive Committee, Anzhelika Nikitina, who was recently awarded the honorary title "Person of the Year of Vitebsk Region-2019".
— Anzhelika Alexandrovna, you have been heading the Committee for Economy since September 2016. Over the past period, what changes have occurred in the economic development of the region, and which year was the most challenging?
— If we analyze the five-year period, the most challenging was the end of 2019, and perhaps 2020 will also be difficult, as the region's economy largely depends on the operation of the petrochemical complex and the oil operators involved in the supply and export of oil and oil products. Naftan OJSC significantly reduced production volumes compared to last year, which affected other sectors of the economy. Targets for exports of goods and services were not met. Wholesale trade declined, and freight traffic decreased. Nevertheless, the development trends in the real sector of the economy over the past two years have been positive. We managed to stop the decline and ensure growth in all key sectors, which has already allowed us to increase performance for the five-year period.
Positive dynamics have been observed in agricultural production, construction and installation work, and investment in fixed assets. More than 6,000 people will be employed in new jobs. New production facilities are being created, and existing ones are being reoriented towards modern technologies.
— What is the situation with attracting investment in fixed capital? Which sites are most interesting and promising for foreign investors?
— Due to its favorable location, the entire region is a unique platform for business development: common borders with the Russian Federation and the European Union countries, the presence of enormous ecological wealth in the form of lakes, rivers, and forest lands…
40 percent of the Vitebsk region's area is covered by forests, so woodworking and timber processing are promising. The volumes from the forestry sector are increasing annually. This year, Akutama and VMG Group companies will open four private woodworking enterprises in Vitebsk, Dokshitsy, and Polotsk with a total investment volume of over 120 million dollars. Investors in this field are offered attractive sites with the necessary infrastructure.
Such sectors as mechanical engineering, pharmaceuticals, construction and production of building materials, transport and logistics are also promising.
Agritourism is gaining momentum; over 200 land plots have been allocated for the development of this direction, 6 of which were developed last year. In total, there are over 600 agro-ecotourism estates operating in the Vitebsk region.
— What role does small and medium-sized businesses play in the region's economy today? What is their contribution to the gross regional product?
— Private enterprises are actively integrating into the region's economy. It is worth noting that due to their mobility, they operate more efficiently and flexibly than many state-owned enterprises. It is no coincidence that the number of small businesses is growing every year; for instance, in 2019, there were over 31 thousand of them in the region. They account for more than 50 percent of goods and services exports. This business segment employs over 1.5 thousand people. The budget's revenue directly depends on the success of the private sector. Thus, in 2019, revenues from small and medium-sized businesses increased by 12 percent, and this is far from the limit; there are still reserves.
— What is small entrepreneurship currently focused on? In which areas are there open niches for private businesses?
— We are interested in ensuring that every person who decides to start a business can realize their potential and find their niche.
The service sector (educational, healthcare, and tourism services) is promising. The cluster approach is trending. For example, the development of a cluster system, including in the IT sector, will be interesting for young people, especially since all conditions for working in this field have been created here. Cluster movement is an economic driver; the clusters established at the region's leading universities are fully justifying themselves. The regional economy needs innovation; this direction is the future, and private businesses must understand this and keep their finger on the pulse of the times.
The region has many premises and buildings that previously housed factories and are now unused. These vacant spaces and properties can be acquired on favorable terms and used to start businesses, including the production of innovative and import-substituting products, and the implementation of investment projects.
— Recently, great attention has been paid to the development and strengthening of public-private partnerships. How would you characterize the work in this direction in our region?
— There are 7 entrepreneurship support centers operating in the region. The regional council for entrepreneurship development is functioning. Moreover, various kinds of assistance are provided not only in the regional center but also in the districts, meaning that now all pressing issues can be resolved locally, without the need to travel to Vitebsk. A lot of banking programs have been developed to support entrepreneurship. Since last year, there has been a republican guarantee fund where businesses can turn for support when implementing investment projects. The regional program for the development of small and medium-sized businesses is in effect, and international support is provided through UNDP. Seven agreements have been signed with banks on cooperation in preferential financing of this sector of the economy. A competition for the best investment projects is held annually. This year, the regional executive committee is a partner in 17 projects, with four more under consideration. We reimburse representatives of small and medium-sized businesses for expenses incurred in participating in exhibition and fair events, including foreign ones. In addition, we assist with startups and provide training through various seminars. Last year alone, 200 such seminars were held.
— What will the IX International Economic Forum "Innovations. Investments. Prospects," scheduled for May 14-15, surprise us with?
— The thematic focus of the upcoming event is "Green Digital Economy – Driver of Innovative Development of Regions," so its main ideas will be the use of new digital technologies, the formation of infrastructure, and the legal environment for the digital economy. Forum participants will be able to present their regions and companies, discuss problematic issues, and exchange views within "panel discussions" such as "Smart Region," "Green Economy and Agro-Industrial Complex," and familiarize themselves with exhibition displays.
— Is it easy for a woman to hold a position like yours?
— I won't lie, it's not easy, of course. The work is complex, intense, and requires serious concentration. I constantly have to keep many figures and various indicators in my head, and a lot of time is spent on reports. Moreover, after I took over the committee, it was very important for me to earn the respect and authority of my colleagues, the heads of enterprises, who are mostly men. However, the main part of the staff of the Vitebsk Regional Executive Committee's Economy Committee consists of women who cope excellently with their duties.
My character and active life position help me in my work. There were three children in our family. My parents worked on the collective farm, so I had to help them with the house and chores. We grew up early, were independent from school age. In many ways, this helped me in my further career advancement, as I started my working life as a seller of food products, then worked in the city fruit and vegetable trade, in the Department of Agriculture and Food of the Vitebsk District Executive Committee. In parallel, I studied at the Belarusian State Agricultural Academy, majoring in "Commercial Activities". Since 2007, I worked in the Committee for Agriculture and Food of the Regional Executive Committee, serving as deputy chairman.
— The head of the Economy Committee probably has a well-planned family budget too? Does the debit match the credit?
— Not only do I head the Economy Committee, but my husband is also an economist by profession, so it would be surprising if the debit and credit in our family didn't match! We plan all income and expenses, and invest in the most valuable thing – our child. So, the balance of the Nikitin family budget is directed towards our future – our fourth-grade daughter, her development and upbringing. Due to her childlike curiosity, she is actively searching for an activity she enjoys, and has already tried her hand at rhythmic gymnastics, playing the piano, and drawing…
— You are from the Vitebsk district, do you visit your homeland often?
— Unfortunately, the rhythm of modern life and a rather intense work schedule do not allow me to visit my parents in Prisushino as often as I would like. But only there can I have a good rest and fully restore my strength, both mental and physical, after intense work. I am generally a proponent of the idea that a person should rest where they were born, because it is the native land that is capable of filling one with the necessary energy more than all the seaside resorts and foreign health resorts combined. Moreover, in our Vitebsk region, as in any other region, there are many beautiful, picturesque places with interesting history, why not give preference to them? I love active recreation in Belarusian nature: in summer and autumn it is hiking in the forest, in winter it is skiing.
— Anzhelika Aleksandrovna, you have entered the top 50 successful people who became laureates of the regional award "Person of the Year of Vitebsk Region-2019", this obliges you to a lot...
— Absolutely. I understand the trust and honor that have been bestowed upon me. Largely in advance, because such a title is, first and foremost, society's assessment of me as the head of the team, with whom we work together for the benefit of the region, for the development of its economy. Yes, we have done a lot, but there is even more to do, and we will make every effort to ensure that the Vitebsk region is at the forefront in the country.