02/11/2017 |

Russia rose in the ranking of Doing Business at 35th place

Maxim Oreshkin

For 2017, Russia rose in the World Bank rating from 40 to 35 in the Doing Business. The most difficult to improve the conditions in construction and international trade – therefore, until the “20 place in 2018” benchmark, reforms of these sectors will be required.

The improvement of Russia’s position in the Doing Business rating in the Ministry of Economic Development is associated with the reforms that have occurred in connection with connection to networks, property registration, lending and protection of minority shareholders. According to the Minister of Economic Development Maxim Oreshkin, “Russia shows one of the best dynamics for the last 6 years.”

“On individual indicators, we have progress in dozens of positions and it is very important to understand that now we have entered the zone where competition between countries is increased. Our neighbors and direct competitors are France, the Netherlands, Switzerland and Japan. These countries are also actively improving the quality of business conditions. They are trying to move forward and therefore, to advance they need to be better than they are, “the minister believes.

This year Russia has outstripped Belarus, Kazakhstan, Slovakia and Slovenia in the ranking. Among the BRICS countries, the country took the first place, surpassing China, Brazil, India and South Africa.

The rating of Doing Business for domestic economic policy acquired a special status in 2012, when it was included in the May presidential decree “On Long-Term State Economic Policy.” According to him,
in 2018, Russia should be in the top 20 countries with the best business conditions (the so-called “one hundred steps”). Directly responsible for this ministry was the Ministry of Economy, which, according to the authorities, should be the driver of reforms.

According to Maxim Oreshkin, “if in the past year we had some negative dynamics, this year the trend managed to be reversed, and the rating for Russia has grown significantly.” Indeed, according to three indicators, the Russian economy has already entered the top twenty. So, in Doing Business-2017 for Russia 10th place on accessibility of business connection to and 12 place on conditions of property registration is fixed. Based on the results of contracts, the country is on the 18th place. In the top 30 leading countries, Russia fell under the terms of business registration and lending. The terms of connection to the networks for the year improved immediately by 20 points, and lending grew by 15 points.

The fastest rates this year increased the indicators of the “international trade” rating: immediately by 40 points to 100th place. Improvements are connected with simplification of the order of payment of customs payments and introduction of electronic services – electronic transit.

Nevertheless, international trade and conditions for obtaining building permits (115th place) remain the most problematic indicators, which worsen the situation of the whole rating.

Some of the reforms in these areas the World Bank has not yet taken into account – I’m sure Maxim Oreshkin. Thus, among the unaccounted for were the reduction in the terms of issuance for construction and permission for commissioning from 10 days to 7 working days, the cancellation of approvals for design documentation of water supply and sewerage systems of organizations and setting the facility for cadastral registration “in the order of interagency interaction without the participation of the developer.” In addition, in Moscow and St. Petersburg, electronic services for construction services were introduced, which could also seriously improve the situation in these control areas (the survey among companies is not conducted in countries as a whole, but in large economic centers where they work – in Russia in the rating take into account reviews of Moscow and St. Petersburg).

Maxim Oreshkin believes that, in spite of the remaining significant gap from the benchmark by 15 points, “the goal to reach a place in the rating of at least 20 remains.” According to him, this will have to “work on creating breakthrough procedures in areas where we are significantly behind – in terms of applying new digital technologies.”

“All that is related to building permits – we will come up with breakthrough solutions that should become models for other countries in the world,” the minister said.

Another reform, which is not directly taken into account in the rating, but very important for the growth of all the points, is connected with a change in the conditions of control and supervision. In the near future, the government is going to introduce an updated version of the bill, the main task of which is to move from the principle of punishment to the principle of warnings and introduce a risk management system. Maxim Oreshkin is confident that she will “make control and supervisory activities more qualitative and more friendly to Russian business.”

In the opinion of the deputy chairman of the expert council of the Business Russia, Vladimir Gamza, everything became much easier with business registration procedures.

However, in terms of financial services, business conditions are deteriorating, some experts say. Commercial banks feel pressure from the Central Bank. In practice, this leads to situations where banks require medium and small enterprises to match the characteristics of a large corporation. According to Vladimir Gamza, in general, business access to financial services on the non-banking market is narrowing. For example, enterprises have few opportunities to enter the market with bonded borrowings.

At the same time, the main investment strategist of BCS Maxim Shein believes that it is easier for businesses to get loans, as rates are lower. At the same time, the development of credit bureaus also contributed to the improvement of positions in the rating. – the expert believes.

The managing partner of the VETA expert group, Ilya Zharskiy, believes that the 18th place in the execution of contracts for Russia is justified, since “we have quite developed legislation in the field of public procurement, which, moreover, is supported by IT solutions, for example, the Unified Information System EIS) in public procurement. ” He believes that the arbitration courts also work properly.

Traditionally weak results of the rating on construction and international trade did not surprise experts.

“The constantly changing rules of the game, the bureaucratization of many processes, the absence of indulgences for medium and small businesses – all these factors together from year to year do not allow our country to rise to a worthy position in the Doing Business rating,” said Dmitry Kotrovsky, a partner of Khimki Group .

Maxim Oreshkin believes that in the future, the emphasis should be shifted from assessing the procedures for doing business to human development. In his view, “a key factor in the competitiveness of the economy in developing and attracting talents.” Therefore, he expects to gradually shift the emphasis on creating an environment for the development of human competencies. ”

For example, according to the rating of the World Economic Forum Global Competitiveness, broader criteria are being explored, such as the macroeconomic environment, the complexity of doing business, the development of financial markets, infrastructure, health and education.

In this rating among 137 countries, Russia already occupies 38 place, having improved for the year its positions also by 5 points.


Original in Russian: Gazeta.ru

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