A law enforcement crisis in the sphere of corporate governance

Publication date
Wednesday, 03.09.2003

A. Radygin

Buro Pravovoy Informatsii

According to experts of the Institute of Economy in Transition (IET), the seriousness of the law enforcement crisis in the sphere of corporate governance is underestimated, as it was stressed by Alexander Radygin, a member of the Board of Directors of IET in his report to the international conference “Modernization of the Russian economy.”

According to Dr. Radygin, the law enforcement crisis is related to the complex, non-prompt, and often inefficient court rulings, where in the framework of the same laws courts often made decisions bringing opposite results (unjust court decisions). Yet another factor behind the crisis, said Dr. Radygin, is the desire of the majority of governmental agencies, including the Federal Commission for Securities Market (FCSM) to expand their powers. “Mass violations” on the part of the judiciary and departments, according to the IET representative, results in the undermining of efficiency of decisions.

Having noted the danger of violations on the part of state officials, Dr. Radygin focused on a new trend, which has been observed in the Russian economy since recently. He defined this trend as “rotation of businesspersons to and from the bureaucracy.



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