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Magadan Regional Administration has taken a major step toward
trying to attract foreign investment, jump-start the regional
economy and make the business climate more conducive to
economic development.
Magadan hosted a business
investment fair over the summer, designed to help local
businesses attract partners and capital investment and
demonstrate to potential investors what Magadan has to
offer in the way of business opportunities. As a result
of this, Magadan developed a comprehensive catalogue of
businesses in the region.
Magadan followed this with
legal changes to give regulatory, taxation and customs
breaks to encourage businesses to operate in Magadan.
The legal reforms and business incentives, enacted at
both the federal and regional level, create a Special
Economic Zone. The SEZ lays the groundwork for the Magadan
region to promote itself as pro-business and offer the
kinds of regulatory breaks and incentives that businesses
often say they need to function in the harsh economic
climate.
The economic benefits of
the new Special Economic Zone are designed to reduce the
cost of doing business in Magadan and thus give a boost
to the economy.
Magadan's initiatives are
significant because they represent strong local efforts
that strive toward more self-sufficiency, independence,
and reliance of growing local businesses. If these efforts
are successful, that will lessen the region's need for
federal assistance, or even humanitarian aid. And it will
redirect the emphasis on raising revenue from upfront
taxes and duties to encouraging productive business activities
as an engine for economic development.
Magadan, which has rich mineral
resources in the region and the potential for economic
growth, has faced difficult economic times that have prompted
both the regional and city governments to seek humanitarian
aid from Alaska.
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