Investment Process: Stock of Problems and Interests

Abstract

The article focuses on key reasons for capital formation relative lagging during the economic upturn. Still not clear property rights, the long process of formatting of the ownership, weak corporate governance have delayed the turnaround to the investment boom. The structure of economy, sales and industry profitability determines the structure of investments, but it does not lead to sufficient investments in the research sector and manufacturing. The financial sector shows high dynamics, but it can not supply enough "long" money with a huge export of capital. Capital formation has not been influenced by any investment policy. In essence it was the "Inertia" scenario which during the long crisis led to aggravating problems in the economy. These problems have not been solved in the upturn. This situation stimulates the government to use its financial resources in the context of the "Mobilization" scenario that creates more difficulties for the "Modernization" scenario.