Development of a mechanism of attracting investments for implementation of regional projects

The need of investment is determined by the current condition of the regional economy. The analysis of the main economic indicators of Russian regions shows a growing differentiation in their social and economic development, which is aggravated with inefficient government regulation and lack of financial resources for development. The author justifies the decentralization of state regulation by defining the regional market segment – the "local market of regional projects", as the aggregate of specific regional social and economic and ecological projects for improvement of living standards of the population develops the regulatory mechanism for selected segment. This mechanism involves market-based instruments of regional accumulation of funds and finance of private businesses and citizens, i.e. an Investment Fund in the Region (IFR) for investment the regional projects, as well as incentive mechanisms to attract private business into this market segment