DEREGULATION OF THE ECONOMY AND REMOVAL OF THE ADMINISTRATIVE BARRIERS, RF

The process of deregulating the economy is one of the most important aspects of transforming the Russian economy. Deregulation reduces the negative impact of the State' excessive interference and simultaneously strengthens market mechanisms. The project is funded by the EuropeAid Programme and commenced on 26th of April 2004. The wider objective of this project is to provide extensive support to the Ministry of Economic Development and Trade (METD). This will facilitate its reforms on deregulation and remove administrative barriers in the Russian Federation. The project operates in selected pilot regions at both Federal and regional levels.

Although the process of modernising state governance has been evolving, there are still a number of hindrances. First, it's an insufficient awareness of European experience (including the Eastern Europe). Second, lack of effective internal communication within the state sector and external communication within between the government, entrepreneurs and other institutions. This problem is noticeable especially on such issues as implementation of deregulation and removal of administrative barriers. This EuropeAid Project was specifically initiated with the intention of removing these negative aspects and strengthening the positive impact of the reform process.

The key project tasks are aimed at improving MEDT's institutional capacity in furthering the process of deregulation. These tasks include the provision of training through study tours in EU countries, the creation of a database containing previous and ongoing deregulation projects and the study of EU practice & experience in deregulation through the collaboration of leading European and Russian experts.

A series of surveys in the Russian regions will be aimed at improving the efficiency of state and local authorities and cooperation between them and business communities. The project aims to remove excessive state interference in the economy through the substitution of some current state functions with market mechanisms. The project will facilitate the creation of a structure with independent expertise, risk assessment and professional liability. Professional liability means handing over some of the functions of certification and licensing to private insurance companies, which specialise in risk assessment relating to consumer goods and services. The project will provide specific recommendations to MEDT, including the preparation and submission of legislative proposals for further implementation of the deregulation and de-bureaucratisation processes. A methodology for assessing best practice as regards licensing and technical regulation will be developed by the project. The project findings will be widely disseminated through publications and extensively discussed at seminars, conferences and an interactive project website. The project's mission is to contribute towards one of the major tasks of the Russian economy, namely the deregulation of the economy and removal of administrative barriers in entrepreneurial activities.