Anatoly Golomolzin: we need a long-term development strategy to support competition and, subsequently, economic growth

On 14 January 2016, Deputy Head of FAS Anatoly Golomolzin took part in the Gaidar Forum 2016, speaking at the session on “Publicly-owned companies – economic powerhouses or deterrents?”

“The key question that we must answer, with regard to efficiency of inefficiency of state involvement in company practices, is whether there is competition. And how the state creates institutions to support development of competition”, emphasized Anatoly Golomolzin.

He gave an example from the field of telecommunications. Every year the share of the state in this sector goes down due to competition development. 90% of the market is occupied by private companies that to a considerable extent already shape the face of the economy.

“One can firmly say that the telecommunications sector is the basis for developing the modern economy. It is achieved because for 20 years telecom companies were developing under competitive conditions. Cellular services coverage is 150%, in 10 years the tariffs decreased tenfold; and Russia now enjoys a rather broad range of services”.

“The same thing concerns the market of oil and oil products. For-profit market infrastructure was established, exchange trading was launched, off-exchange price indicators are formed, refineries are modernized, and incentives for flexible customs and tax regulation are created. As a result, both private and publically-owned companies can already demonstrate a level of real dwevelopment”, pointed out the speaker.

“These are the fields where good results are achieved due to institutional changes. Certainly, there are areas where a lot still must be done, and the main objective today is to work out a long-term development strategy to support competition and, subsequently, economic growth”, summed up Anatoly Golomolzin.