State long-term goals’ negligence under crisis is unacceptable

23 january 2015

Experts of the Analytical Center Tatiana Radchenko and Alexander Kurdin spoke at the Jubilee Scientific Conference "Lomonosov Readings-2015" on "The anti-competitive government policy during the recession: goals, mechanisms, results".

"In the Russia’s economic slowdown context the government nominally announces gradual renouncing of producers’ direct baking, implements a set of anti-competitive measures in industry. One of such measures implementation instruments is a state program "The development of industry and increase of its competitiveness". The program's budget for three years is 355.12 billion rubles, 63% to 82% of the annual budget will be spent on civil engineering, which puts at a disadvantage such industries as metallurgy, mechanical engineering, bioengineering, light industry, production of composites, which either get scarce state support or do not get it at all", said Ms. Radchenko.

Experts listed measures to restrict competition during the recession – restrictions' easing, counter-cyclical policies realization, which is not intended to limit competition, but can lead to such state (for example, specific recipients’ state aid), and targeted government actions on competition restrictions (for example, cartels boarding, entry barriers’ erection including foreign trade ones, dominant enterprises boarding).

The state program "The development of industry and increase of its competitiveness" measures include all of the above restrictions of competition: increasing barriers for foreign market participants, production support and export markets’ sales of Russian products, provision of electoral support among Russian participants. In this case the only issue where the antimonopoly authority succeedes in terms of ensuring equal access to the support measures is a discount on tariffs for innovative cars.

The policy for the cycle and policies for growth are not independent, and the negligence of long-term goals may lead to the point when problems which seemed cyclical, will become chronic, concluded Ms. Radchenko and Mr. Kurdin.