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OECD: Corruption and traffic jams biggest problems for Russia's business climate

The Organization for Economic Co-Operation and Development (OECD) has prepared recommendations on achieving a transparent, clear and predictable business climate in Russia.

The list of five items begins with corruption and finishes with traffic jams. The report was presented at the Gaidar economic forum in Moscow on Wednesday.

The recommendation's first item is the country's continuing anti-corruption campaign, which should be more clearly focused on transparency and reporting in the state-run sector. Here the experts say it is necessary to improve in Russia the legal protection of those who inform about abuse of power, not to limit freedom of the media and public organization in publishing information on breaches of the legislation.

The second item is improvement of the independence of the Russian judicial power. The Organization says Russia should make court hearings more transparent, improve the payment system for judges and the procedure of their rotation, and to avoid any political interference in court cases. Besides, law enforcement authorities should be more transparent and accountable.

The experts say the Russian businesses require continuation of the work on lower administrative barriers and spread of the federal centre's initiatives to regional and local levels. OECD recommends using the Regulatory Impact Assessment (RIA) for all bills at the State Duma. Privatization of state banks and other facilities should continue, and state and private sectors should enjoy equal working conditions.

The Organization says Russia should refrain from introducing barriers for entering the domestic market, as it may improve the effect from joining the World Trade Organization. At the same time, Russia should cut on number strategic sectors, where foreign investments require prior approvals.

Another problem, which prevents Russia from having favorable business climate, is the "narrow places" in the transport infrastructures. Expanding those "bottle necks" could be by raising effectiveness of expenses for the infrastructures, stimulating of competition in transport and improvement of coordination in settlement of municipal transport problems, the OECD report reads.

[Source: Itar Tass, Moscow, 16Jan14]

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small logoThis document has been published on 16Jan14 by the Equipo Nizkor and Derechos Human Rights. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.