Download Doing Business with Russia 3rd Edition by Marat Terterov PDF

By Marat Terterov

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As well as increasing state capacity to implement reforms, fiscal centralization and administrative reorganization would help to 8 Background to the Market smooth over high levels of interregional socioeconomic asymmetry caused by natural resource windfalls, which is a constant source of political tension. However, the approaching electoral season has forced the Kremlin to proceed with caution in the face of resistance from outspoken regional heavyweights. No governor has been removed so far; instead many have received the green light to run for third and fourth terms.

WTO 6 Background to the Market negotiations, for example, have hit snags on various issues and accession now looks more likely in the 2005–2007 timeframe. Looking ahead: political engineering Empowered for the first time with a loyal parliament, the Kremlin, together with the pro-government ‘United Russia’ party, has launched a number of legislative initiatives aimed at reshaping Russia’s formal institutional landscape. Many initiatives point to a further consolidation of political authority, such as raising electoral thresholds for parliament or attempts to wrench control over natural resource licensing and rents from regional administrations.

While foreign investment in Russia still remains at relatively low levels compared to some neighbouring emerging markets, the reduction of capital flight and the reinvestment of domestic capital into Russia has provided a substantial boost for the economy and has created many new jobs, particularly in the manufacturing sector. Russia’s over-all improved economic and political performance under Putin, the pro-global economy policies of his government and major Russian corporations, together with the country’s seemingly endless supplies of many of the world’s most vital natural resources, all make the present time a particularly attractive one for embarking upon business cooperation with this vast country.

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