The regions are successfully implementing the Competition Development Standard

25 september 2017

"A positive dynamics of the standard provisions implementation was observed in the regions in 2016. The regions demonstrated improvements both in terms of creating the required base for promoting competition and in achieving target indicator established in the regional roadmaps for promotion of competition," said Ksenia Sukhorukova, Head of the Directorate of Foreign Economic Activities of the Analytical Center, participating in the International Event "Russian Competition Week".

The expert described the general results of the Standard introduction and listed St. Petersburg, Pskov Region and Novgorod Region among the most successful regions.

"Many questions arise regarding the implementation of such a component of the standard as monitoring the activities of economic entities with a share of the region or municipalities of 50% or more, especially regarding whether to take into account the state-financed institutions in the monitoring," said Ms. Sukhorukova. The purpose of monitoring is to analyze those markets where the share of the subjects of the Russian Federation and municipalities is high, but there are prospects for the development of the private sector. "The refusal to take into account the state-financed institutions for the monitoring may lead to the fact that a large part of the market can be missed, and then the monitoring will not show unbiased and correct results," noted the expert.

The analysis of the indicators specified by the subjects of the Russian Federation in the regional roadmaps once again demonstrated the need to develop a unified calculation methodology and unified recommendations on data sources, at least for those target indicators that are provided by the standard.

In general, according to Ms. Sukhorukova, the implementation of the standard shows that the document has allowed changing the point of view of regional authorities on the region policy and the legislative framework. The new approach changes the situation where private business is infringed in favor of the state and state-financed institutions by providing support to private and public (municipal) organizations on different terms. "Analysis of regional experience in the application of competitive mechanisms for financing organizations in socially important markets, made by the Analytical Center, showed that the distribution of financing on an equal basis between private and public institutions was carried out within the framework of grants for organizations of all forms of ownership, subsidizing demand (repayment of expenses of parents and guardians for receiving services, in particular, pre-school education, recreation and health services for children), state procurement of services in the social sphere," said Ms. Sukhorukova. Restrictions were removed for the entry of suppliers from neighboring regions into the regional market with products sold at lower prices.

Picture from open sources