Deputy Governor of Kaluga Region Maksim Shereikin tells the students about integration of business principles in public administration
On Day 2 of the Summer Campus, Deputy Governor of Kaluga Region Maksim Shereikin delivered a lecture on "Entrepreneurship and Civil Service". The expert told about the key differences between administrative mechanisms in business and in regional agencies: entrepreneurs are result-oriented, while state authorities are process-oriented. "Business is based on leadership throughout the organizational hierarchy", Maksim Shereikin noted. The expert also emphasized that entrepreneurship in its classic form provided for redirection of resources from the law efficiency zone to the high efficiency zone and for profit-making, however, this process also included risk-taking. According to Maksim Shereikin, implementation of unique management decisions can facilitate regional development. He mentioned Kaluga region’s economic growth as an example. "Kaluga region’s economic success was possible because we went beyond the limits of standards", he underlined.
Maksim Shereikin noted that in 2006, when the first Volkswagen plant was opened in the region, the risks were high, but implementation of business principles in public administration contributed significantly to the success. Then the regional government chose to lead a policy of supporting priority industries: car making, pharmaceutical industry and innovative sector. Kaluga region’s development strategy included several investor-friendly mechanisms: reducing tax rates and creating training centers at the expense of federal and regional budgets, which solved the problem of qualified workforce shortage. Today there is a Volkswagen training center in the region which has already trained seven thousand people. A pharmaceutical training center is also about to open.
Maksim Shereikin told the participants that Kaluga region had become one of the major regions in terms of output and ranked third in terms of wages.
In conclusion Maksim Shereikin answered the participants’ questions. The students showed interest in such topics as implementation of public-private partnership projects in Kaluga region, lack of major electric power generation facilities and social development agenda. Commenting the question about the regions which adopted Kaluga region’s development model, Maksim Shereikin noted: "Yes, there are such regions. For instance, Ulyanovsk region has followed our way, some ideas have been implemented more successfully there. And today our investors are turning to them – it’s a normal market situation, we are competing with each other." The expert was also asked about his attitude to the idea of extending Moscow till the borders of Kaluga region. According to Maksim Shereikin, extension of Moscow area has led to outflow of human resources from the budget sphere, however, the advantage of this process is that it provides access to the transport and logistics system of this "new Moscow", thus, promoting development of the region’s air hubs.