By Harry G. Broadman
To augment and maintain monetary prosperity, Russian gurus needs to increase the enterprise weather in order that enterprises restructure and the personal quarter prospers inside of a industry setting. assembly this problem calls for activities on a number of fronts. The Russian govt requested the realm financial institution to jot down coverage papers to deal with this factor. This quantity includes these coverage papers that have been then offered at a high-level workshop in Moscow. the themes contain: • removal impediments to powerful interfirm pageant, resembling structural focus, arbitrary regulatory practices, and access limitations; • strengthening company governance incentive platforms; • improving the nascent institutional framework for the workout of creditor rights and implementation of firm financial ruin strategies; • decreasing barter and different nonmonetary types of company transactions; and • fostering company restructuring. the quantity additionally comprises formal reviews on those papers awarded by way of senior Russian officers on the workshop.
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Additional resources for Russian Enterprise Reform: Policies to Further the Transition (World Bank Discussion Paper)
Example text
This way, there are 18 Subjects of Federation out of the total of 89 where direct control over the anti-competition actions taken by either regional administrations or economic entities is not provided for. A further 25%/o-reductionof the GAK staff can lead to a situation where one-third of the Subjects of Federation will practically have no anti-monopoly control at all. This is due to the fact that there is almost no funding available for going on missions. Lack of funds for carrying out missions inside Russia binders the implementation of a unified anti-monopoly policy at the regional level.
The policy framework for encouraging entry is focused on SMEs. Russian federal legislation supporting SME development dates back to 1993, when a Support Fund for Entrepreneurs was created that provided for short-term credits. A two-year holiday on profit taxes also was established. Subsequently, regional and local support funds were created, and it is at these levels that the bulk of SME support is implemented. In 1995 the State Committee for the Support and Development of Small Businesses was created.
Policies to Foster New Entry Implement Rules-Based Streamlined Business Licensing at the Federal and Local Levels. In January 1998 new initiatives were discussed at a Government meeting on the problems of SMEs, including changes in issuing of licenses. But the measures do not address the problem that the setting of license fees is subject to the discretion of local authorities, which results in price discrimination and arbitrary rule. Reforms here are a top priority. They should be based on other countries' experiences and on enacting legislation that sets precise, streamlined limits at all levels of government on the time and money required to get a business license in most sectors, and codifies sizeable criminal sanctions for officials who violate this rules-based system.