ANDREY TSYGANOV: THE NATIONAL PLAN IS A MAJOR STRATEGIC PLANNING DOCUMENT
Regions in Russia must be ready that the work on competition development will continue in the immediate periods of strategic planning, believes Deputy Head of FAS
On 21 October 2019, Deputy Head of FAS Andrey Tsyganov had a working visit to the Karachaevo-Cherkessia Republic and took part in a meeting on approving the Action Plans (Road Maps) for developing competition in the Karachaevo-Cherkessia Republic.
Chairmen of Karachaevo-Cherkessia Government, Aslan Ozov, pointed out that the Government that he leads undertakes all necessary measures aimed at achieving the goals set by the President of the Russian Federation. He informed that the authorities did the work for organizing antimonopoly compliance. At the beginning of 2019, amendments were made to the regulations on the authorities and local self-government bodies that give priority to the competition development measures.
“Rethinking also concerned a regional Road Map for developing competition support. It is based on 34 key indicators on the markets in Karachaevo-Cherkessia that are significant in terms of social-and economic development of the Republic. The document provides for a package of measures designed to increase the share of private business on the markets of medical and educational services, children leisure and health improvement, agriculture, construction and production of construction materials, services for passenger transportation and public amenities in the region”, said Aslan Ozov.
He added: “Adopting the Action Plan will increase presence of business on the priority markets in Karachaevo-Cherkessia by 2022. Also, the Plan will lead to improving conditions for free competition considerably and increase consumer satisfaction with the choice of goods and services on the Republican markets”.
Andrey Tsyganov focused on developing the regional economy under the frame of executing the National Plan for Competition Development in Russia.
He drew attention of the event participants that the number of antimonopoly violations by the authorities in Karachaevo-Cherkessia has increased by 33%.
“Orders given by the President of the Russian Federation require reduction of antimonopoly violations committed by the authorities. Instead, in 2018 such violations increased rather than decreased in Karachaevo-Cherkessia. FAS statistics shows that a considerable part of them are violations by municipal authorities. Perhaps, it is related to insufficient knowledge of the norms of the antimonopoly law. We understand that it is very hard for municipal servants to keep up with the monthly changes to the law. That is why FAS is working to simplify the law on procurement”, said Deputy Head of FAS.
Andrey Tsyganov emphasized that the share of procurement by small and medium companies in Karachaevo-Cherkessia is traditionally high.
He mentioned, however, that “in 2017 it accounted for half of all procurements, and in 2018 – a little bit more than one third. The figure is higher than on average in Russia. In view of the regional specifics, though, involvement of small and medium business in public procurement can be more significant”.
Discussing the need to reduce unitary enterprises, Andrey Tsyganov stated:
“Why does FAS pay such attention to state and unitary enterprises? Why do the President and the Government of the Russian Federation pay attention to it? Because we are confident that on the markets open to competition, where private companies can and must work, operations of state-run companies distort competition. State-run companies are in more privileged conditions, and receive support from their founders. Such companies frequently become executors of all public contracts, pushing private business aside”.
Summing up fulfillment of the targets of the National Competition Development Plan, Deputy Head of FAS pointed out:
“We believe that Karachaevo-Cherkessia has reserves for growth. In 2018 competition development ranking, compiled by the Ministry of Economic Development of Russia, the Karachaevo-Cherkessia Republic is somewhere in the seventh dozen, although even two years ago it was on the 45th position. Once again, let me emphasize that there are reserves, the region can steadily move forward, achieving the goals and objectives set for all of us by the President of the Russian Federation”.
Andrey Tsyganov stressed that the National Projects in Russian should be fulfilled strictly in line with the competition standards. He underlined that working on the National Projects, federal and regional executive bodies are instructed to ensure unconditional fulfillment of the measures included in 2018-2020 National Plan for Developing Competition in the Russian Federation and the Action Plan (Road Map) for competition development.
To pursue pro-competitive policy through national and regional projects, competitive mechanisms of involving economic entities in the National Projects should apply and each National Project must be integrated with the National Competition Development Plan. Deputy Head of FAS emphasized a special role of the antimonopoly body in control over execution of the National Projects.
“Our main goal is to accomplish a pro-competitive policy under the frame of the National Projects and regional projects. Tendering, design and construction, connecting finished facilities to networks and tariff-setting – all falls under FAS powers. Efficient fulfillment of the National Projects depends on the level of competitiveness of the procedures”, clarified Deputy Head of FAS.
Andrey Tsyganov also informed that the Government of Russia instructed FAS to daft, jointly with the interested executive bodies, 2021-2025 National Competition Development Plan by March 2020.
“The National Competition Development Plan is not a one-time event. This work will continue. In the immediate periods of strategic planning, FAS, federal executive bodies, regional authorities – all will have to live with the National Plan as one the major strategic planning documents, along with the National Projects. And regions in Russia should be ready for it. If there is such a need, we are ready to provide any help and assistance in solving the issues that emerge in competition policy”, concluded Deputy Head of FAS.