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Smart Regulation of the Consumer Market
7 June 2019
17:00—18:15
KEY CONCLUSIONS
Improvement of regulation is a crucial condition for efficient and secure development

The topic is very important – it is the balance between security and development of the economy, the speed of all our processes. It is not easy to find the right balance. On the one hand, we really care about safety. On the other, we understand that sometimes it may seem to hinder fast development of projects and create additional challenges and expenses — Dmitry Volkov, Deputy Minister of Construction, Housing and Utilities of the Russian Federation.

Our common goal is to build a fair and secure consumer market. There are two rules that need to be met to ensure its fairness. The first is transparent laws of the game, consistent market conditions and bona fides of the players. The second is the smart and informed consumer. There are two ways to achieve this. State control, oversight, so-called strict measures. And there is soft power that since 2015 is represented by Roskachestvo by a decree of the Russian government — Maxim Protasov, Head of the Russian Quality System (Roskaschestvo).

Smart regulation [aimed at reducing risks and stimulating economic growth, – Ed.] can really change the market situation towards growing — Francesco Pansardi, Vice President, Tedeschi Group.

One of the earliest references to smart regulation was made by the Australian scientist N. Gunningham in his eponymous book in the late 90s. The book was mainly devoted to the environmental regulation and laid foundation to a broader approach that combines different types of regulation in order to achieve more specific results on the market — Gordon Fairclough, World Coverage Chief, Foreign Editor, The Wall Street Journal.

ISSUES
Existing regulations are not always implemented

We do have assessment of regulatory impact in Russia; the administrative burden is also decreasing, especially in the context of the plans for 2021 [which] imply substantial decrease of various orders. The existing legislation is being simplified, particularly in codification; there most likely are consultations with stakeholders; assessment of the actual effect is in place as well as the access to the legislation. Does it mean that all instruments are working in the same manner and with the same efficacy? This is arguable — Ilya Lomakin-Rumyantsev, Chairman of the Board of Directors, VLM-Invest.

The laws are not just outdated, they are interpreted differently in different regions — Marc Carena, Director General, McDonald’s in Russia.

SOLUTIONS
Implementation of innovative technologies into the regulation process

The main direction here is that we will try to switch from administrative methods of regulation to technological ones. In particular, we will try to ensure that these processes operated by different agencies are carried out on a unified technological platform in order to accelerate this process for the client, i.e. for the business — Dmitry Volkov, Deputy Minister of Construction, Housing and Utilities of the Russian Federation.

Analysis of regulation efficacy

We need to actively involve our scientific potential — Leonid Ogul, Deputy Chairman of the Committee on Health Protection, State Duma of the Federal Assembly of the Russian Federation.

Standards for goods must be created. We need to organize the assessment process using scientific methods of testing how certain people and population in general may benefit from these goods. That is why we are working with the Ministry of Health of the Russian Federation — Ashok Ram Mohan, President for Affiliates in Russia and Belarus, Philip Morris International (PMI).

Smart regulation must be thought through really well — Cees't Hart, President and CEO of Carlsberg Group.

Improving the culture of consumption

There needs to be a range of instruments for ensuring production quality and safety; but at the same time, we need to make sure that consumer also takes part in this work — Martial Rolland, Chief Executive Officer in Russia and Eurasia, Nestlé S.A..

The main challenge in regulation is not sanitary standards and rules or technical specifications, it is regulation of behaviour. In fact, smart regulation of behaviour is a kind of regulation that allows to make an informed choice and gives everyone an opportunity to make a decision about their further life track themselves — Larisa Popovich, Director, Institute for Health Economics, Higher School of Economics.

Dialogue between the state and the business, and development of mechanisms for self-regulation

We would like more trust from the government, we would want that they invite business representatives to discuss legal acts, including those related to smart regulation — Raisa Demina, Chairman of the Board of Directors, TM Velcom Group.

Participants of the supply chain that work for the consumer begin to realize that we need to relaunch mechanisms of communication, interaction and self-regulation procedures that allow to more efficiently discuss and solve issues without introducing additional legal limitations — Olga Naumova, General Director, Chairman of the Management Board, Magnit.

The material was prepared by the Russian news agency TASS