The regional publication 'Ekspert-Yug’ recently held its fourth forum for the top companies in the Southern and North Caucasus Federal Districts, entitled “The Southern Russia Modernisation Project: Regional Priorities”.

During the forum, which took place in Krasnodar, President of the Center-Invest Bank Board of Directors, Dr Vasily Vysokov, put forward new proposals and a business model for the modernisation and post-crisis development of southern Russia, which he called “khutor” modernisation.

 A “khutor” is a small settlement, located far from megalopolises. The key idea is that despite the size and location of these settlements, the people living there are enterprising and determined, and they are capable of resolving their problems independently. The proposed business model is based on the experience of Center-Invest’s customers who have been proactive in implementing modernisation projects, using their own initiative to purchase the best technology from global markets and produce competitive goods in southern Russia for sale on regional and international markets.

The other forum participants supported the proposed “khutor” modernisation project, and appreciated the experience of Center-Invest Bank and its customers:

“Today, the “enclave” modernisation model is being strongly mooted,” said Valery Fadeyev, managing director of the Ekspert media holding. “This is based on the example of India, whereby a technopolis is created, but it is surrounded by terrible poverty. We disagree with this model, and believe instead that modernisation must be seen as the development of productive capabilities as a whole, throughout the whole country.”

To reconcile the trends of “khutor” modernisation and government-driven modernisation, it is proposed that the experience gained from individual, isolated projects be applied to all investment projects, and that international best practice in public-private partnerships be implemented in southern Russia.