The cooperation between Russian and German business in the new environment

Published: January 21st, 2015

Uwe Leuschner, Vice President for business development in the CIS countries and Central Asia of DB Schenker Rail AG; Member of the Board of Wirtschaftsclub Russland (WCR e.V.) told how the German government encourages the development of production and export, in anticipation of his participation in a closed section of the MEF “Interaction of Russian and German business in the new environment: economic consequences and ways of saving partnership”.

— How does the German Government encourage the development of production and export of German goods to other countries?

— Small and medium-sized businesses are very widespread and stable and exist for a long time in Germany. Often they are the engine of innovation and creators of attractive products for the whole world market. Small and medium-sized business is presented by thousands of branch and industrial associations, ensures fair competition and follows the principles of freedom and social market economy. The state provides support to these goals through a variety of incentive and support programs: in particular to newly created enterprises (start-ups), research programs in institutes and universities, dual education of young specialists and constant expansion and modernization of the communication and transport infrastructure as well. Democratic civil society in Germany, legal nature of the state and liberal economic policy of the country as a provider of services from and for business — to make the base, due to which Germany became “the World Champion in exports and logistics”.

— What actions of the Russian Government can promote the development of foreign business in Russia and increase the inflow of foreign capital?

— The Government of the Russian Federation should not be dictated, in any form, what it should do. We can only offer for a discussion ideas and recommendations based on our experience. Further market liberalization is very desirable. A sound policy with low tax rates as well as incentive and financing programs for young entrepreneurs, elimination of bureaucracy, reform of the education system for young professionals (with an emphasis on practice) — these measures could be the first steps towards the creation of sustainable small and medium-sized businesses in Russia. Further opening of the market in key areas as well, resolute fight against corruption and for the rule of law in the state, a clear definition of values for entrepreneurship in Russia could again regain the confidence that attracts investment. Entrepreneurs need trust, network of contacts and space where they can express themselves — foreign entrepreneurs need the feeling that they are expected, that equality is respected, etc. This way some states could get more investment and growth, than many expect.

26 January 2015, on a closed Russian-German section of the MEF, Uwe Leuschner will tell how sanctions have affected the Russian-German relations.


Source: Press-service of the MEF

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