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Regulatory policy in Russia: the main trends and architecture of the future

This report is the first comprehensive study since 2005 dealing with the regulatory policy in Russia. According to the authors, changing the regulatory policy is one of the priorities in the structural reforms that should be carried out in Russia in order to achieve a rate of economic development above the global average and to implement the new Presidential Decree issued in May. Intelligent use of this public governance tool could increase GDP by up to 1.5 to 2.5% a year and also enhance the employment rate, labor productivity, entrepreneurial and innovative activity.

The objective of the report is not only to set out the key problems facing the regulatory environment, but also to draw up proposals for its improvement up to 2024. Recommendations have been compiled allowing for the latest scientific developments and in accordance with best international practices. Besides, the report studies numerous industry cases provided by the participants of seminars at CSR and HSE.

The main obstacle in the way of optimizing the regulatory policy is the reactive nature of the Russian legislation. Instead of being prepared as part of a pre-designed plan, new legislative acts are made as a response of the State to various events. Another deficiency in the system is the absence of a common decision-making center for regulatory issues. For instance, on the one hand, the economic section of the Government of the Russian Federation declares a decrease in the administrative burden on businesses, while on the other hand, under the pressure of the agencies responsible for security in a broad sense, an increasing number of restrictions are introduced. Often, there are apparent contradictions between legislative acts of equal force issued by different state agencies.

Among the measures proposed by the experts of CSR in order to optimize the regulatory policy, the initiative to create a centralized agency for deregulation deserves particular attention. This agency should act as a decision-making center to optimize the regulatory framework, as well as a key element in launching a new comprehensive regulatory policy. The proposed name for the agency is President’s Commission on Deregulation. The activities of the Commission are to be coordinated by a specially created department in the Presidential Executive Office or a similar department of the Government of the Russian Federation.

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