The Russian Economy Today. Deregulation

Publication date
Monday, 02.12.2002

Konstantin Yanovsky Sergei Zhavoronkov Olga Makarova

Moscow School of Political Studies

In the broadest sense, all the reforms, beginning from the laws on cooperatives and state enterprises in Russia, have been steps away from the rigid and ineffective state control of the economy. They all, in other words, met the definition of 'deregulation'. But we propose to use the term 'deregulation' in a narrower sense, to mean the removal of any unconstitutional restrictions on business activities. In other words, the deregulation of the economy means the implementation of the relevant principles and provisions of the Russian Constitution (Article 34 on free enterprise, Part I of Article 37 on free labour and Part I of Article 34 on the freedom of creative activity).
This latter definition encompasses the revision of legislation, the filling in of 'blank spots' in the regulatory framework to leave no room for arbitrary interpretation, and the replacement of edicts by laws. On the other hand, some traditional advocates of greater state regulation propose the concept of 'de-bureaucratisation' as an alternative to deregulation. De-bureaucratisation is interpreted as 'relieving' some 'priority' sectors and enterprises of the rules and requirements set by antimonopoly and budgetary laws. Needless to say, this is very different from what is being proposed here.



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