Competition assessment in Russia

23 may 2014

The new issue of the Bulletin on competition development prepared by experts of the Analytical Center is devoted to review of empirical results of competition assessment in Russia.

Ratings methodology, which is traditionally used in competition assessment, is based on subjective expert estimations and thus is often subject to active criticism. The position that one country or another has in different ratings affects the decision making process at the state level and serves as an effectiveness indicator for public authorities activity. A more frequent practice is to turn to World Bank’s “Doing business” rating, regardless of the periodical criticism towards its methodology. In May 2012 Russian President signed a decree about the need to take measures in order to advance Russia to level 20 in this rating until 2018. New researches show that Russia holds the 92nd position among 189 countries.

If we take a look at national methods of evaluation, we can see that Russia doesn’t have an adequate instrument to assess competition with. Experts are continuously debating. Most of the proposed methods turn out to be unreasonable expensive and raise doubts in their reliability. A more suitable solution appears to be the use of mixed approaches. In this situation, indicators obtained by implementing the regional standard for competition development, could be integrated into a single system for competition assessment of subjects of the Russian Federation. This system is currently developed by the Federal Antimonopoly Service of the Russian Federation.

In parallel, the Federal State Statistics Service must create representative samples and conduct an inquiry among companies regarding the state of competition environment in all economy sectors. At the moment, the Federal State Statistics Service conducts a survey twice a year on 5 issues concerning competition, within the “Construction” sector of all regions. Using this approach in other economy sectors would offer additional possibilities in evaluating and making more informed governmental decisions in industries and regions.

More on this issue - in the Bulletin on competition development № 5.