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| Monitoring the Administrative Barriers to Small Business Development in Russia. Round 6 | 09-06-2007 |
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Project Summary:
2 000 firms from 20 regions in 7 federal districts were surveyed at the sixth round of Monitoring.
Overall conclusion from the 6th round is mildly optimistic — there has been a number of positive developments in the sixth round compared to fifth round and overall trends towards deregulation slowly continues. Yet, along a number of dimensions, the enforcement of deregulation reform has not reached targets set by the new legislation. There are also a few worrisome tendencies: in particular, an increase in subjective perception of problems associated with corruption and unfair rules of the game for SME growth and development.
6-th Round: Improvements
- Average length of license validity significantly increased and almost reached the deregulation target
- The majority of inspecting agencies decreased the number of unplanned inspections without warrants
- The total number of inspections decreased
- There has been a significant decrease in the incidents of bribe pressure on the part of bureaucrats during purchase and lease of land; transparency of both procedures increased
- For the first time fair competition has become a more serious problem than economic instability for business — it became the second most important problem after frequent changes in the legislation.
6-th Round: Negative Developments:
- An increase in use of personal connections during registration
- An increase in the share of inspections by licensing authorities that leads to financial losses for firms
- According to perceptions of firm managers, inspections and, particularly, tax inspections have become a more serious problem for business compared to 2004
- According to perceptions of firm managers, there has been a significant worsening of corruption and unfair competition.
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