Effective Investment Policy as a Factor of Successful Economic Development

Larisa Makhova

Abstract

The investment climate, which is designed to ensure the reproduction of fixed capital, is an important factor in economic development. Thus, this article examines the urgent problems of country’s investment policy. The specifics of the factors negatively influencing the investment policy of the Russian Federation are investigated. Thus, the main factors are immaturity of financial markets, problems of interaction between the state and business, and protection of property rights. The article also notes that the Russian economy has been on the stage of serious political and institutional changes for decades, which, in turn, have a huge impact on private investment activity. Similarities with other Post-Soviet countries are defined. On the basis of the study, the author affirms that it is possible to get out of the investment crisis only if the volumes of private investment grow and their quality improves.