ANDREY TSYGANOV: ONLY JOINT EFFORTS ENABLE ACHIEVING THE GOALS SET BY THE PRESIDENT
Head of Marii El Republic and Deputy Head of FAS discussed the key indicators for developing competition in the region. FAS and the Marii El Government signed an Agreement on Cooperation.
On 9 July 2018, Deputy Head of FAS Andrey Tsyganov had a working meeting with Head of Marii El Republic Alexander Yevstigneev on implementing the National Competition Development Plan and the Orders of the President of Russia issued following the State Council.
“In the past calendar year the President of Russialooked at competition development twice: in December he signed No. 618 Order “On the fundamental directions of the state policy towards developing competition” and in April he held the State Council that also focused on competition. The orders given there are the subject of the today’s discussion. In our opinion, it is essential that current federal standards sprout to the regional and municipal levels; executive bodies evaluate their actions through the prism of the impact upon competition development. Only joint efforts, teamwork will enable achieving the goal set by the President of Russia for all of us. It is impossible to reach the goals outlined in his “May” order without reducing administrative barriers and facilitating competition”, started his speech Deputy Head of FAS.
Further discussing and the Orders issued following the State Council, Andrey Tsyganov said: “First, the key competition development targets must be set for each region. It was proposed to take the share of private business in each selected segment of the economy as the main indicator for competition development. Second, the regional Road Map for developing competition should be updated and modernize in line with the orders to enable their efficient execution. Third, a motivation system should be devised for the authorities and local self-government bodies. It means that the indicators related to fulfilling the goals in the regions should be reflected in KPI evaluating the work of the Head of the subjects of the Russian Federation and relevant top officials of regional authorities. And the most successful regions should expect more favourable attitude in terms of inter-budgetary transfers or use of the resources available to the national development institutions”.
An important aspect emphasized by the speaker concerns transparency and openness in solving the issues related to competition development.
He explained: “Information on the progress in implementing the National Plan and regional competition development plans should be accessible”.
Another focus: accessibility of information for businessmen about resources and property possessed by regions and municipalities in Russia.
“These objects should be introduced into economic turnover and made available for private entrepreneurs so they can use them in their business. In this connection, instructions were given to create the relevant information resources in the regions”, stated Andrey Tsyganov.
Deputy Head of FAS explained that regions can choose those sectors of the economy that they considerer the priorities for developing competition: “The State Council discussed a list of sectors comprising 41 sectors. Regions are given the right to, first, choose the most important sectors for the regional economy, where competition development will generate a serious effect, and, second, add those spheres that the regions find necessary to include in the Road Map for competition development”.
Deputy Head of FAS highlighted obstacles for developing competition in Russia: state monopolism trends, competition restrictions by actions and decisions of the authorities and local self-government bodies, the so-called regional protectionism and cartelization of the economy.
“On the one hand, we endeavor to develop mixed economy, the private sector. On the other, the number of state, municipal and unitary enterprises not only does not go down but constantly increases. And they are formed on competitive markets, where private business could have easily solved the issues emerging in the regional economy. Creating such enterprises inevitably puts them in privileged conditions and distorts the state of competition”, said Andrey Tsyganov.
Regarding cartelization of the economy, Deputy Head of FAS emphasized: “The most dangerous thing is not that the procurement participants agree between themselves but than they agree with the organizers. It is not simply a violation of the Federal Law “On Protection of Competition”; it is a “bouquet” of violations of the Criminal Code of the Russian Federation, the punishments for which are much more serious that fines for breaching the antimonopoly law”.
The speaker highlighted those sectors of the economy where FAS most often exposes anticompetitive agreements in public and municipal procurement: “First place is construction; second – medicines; and third – transport and passenger carriage. These are the three priority sectors where prophylactics will benefit the economy and help avoid competition restrictions and violations of the antimonopoly law”.
Finally Andrey Tsyganov pointed out: “I think that competition development programmes that are getting ready for implementation at the level of the Russian Federation and the regions will help sort out all the issues and achieve the most important, that the President of Russia was talking about – technological and economic breakthrough”.
“Competition is an important element of any economy. Unfortunately this resources has been underused in the Russian practice”, summed upDeputy Head of FAS.
Visiting Marii El, Andrey Tsyganov had a meeting with Chief Federal Inspector in the Marii El Republic, Peter Zhuravlev. The parties discussed implementation of the National Competition Development Plan and the Orders issued following the State Council in the Republic.
The delegation of FAS Central Office also visited Marii El OFAS to discuss pressing issues of OFAS work and the specifics of working in regions.