Gaidar Readings in Ulyanovsk

The Readings were jointly organized by the Ye. T. Gaidar Institute for Economic Policy, the Yegor Gaidar Foundation, and the Government and Ministry of Economic Development of Ulyanovsk Oblast. The Readings were held at Ulyanovsk State Technical University (UlGTU).

One of the events planned within the framework of the Readings was the official opening of Yegor T. Gaidar Lecture Hall at Ulyanovsk State Technical University.

Welcome speeches addressed to the participants of the Readings were delivered by the Governor and Chairman of the Government of Ulyanovsk Oblast Sergey Morozov; Rector of the Russian Presidential Academy of National Economy and Public Administration Vladimir Mau; Director of the Regulatory Impact Assessment Department of the RF Ministry of Economic Development Vadim Zhivulin; and Rector of Ulyanovsk State Technical University Alexander Gorbokonenko.

Sergey Morozov's Address >>>

The plenary session devoted to considering the effects of regulatory impact assessment (RIA) on the development of investment and entrepreneurial activities was chaired by Scientific Director of the Gaidar Institute Sergey Drobyshevsky.

One of the participants in the plenary session was Minister of Economic Development of Ulyanovsk Oblast Oleg Asmus. His presentation entitled 'The Development of Regulatory Impact Assessment in Ulyanovsk Oblast' was focused on the advantages offered by the introduction of the RIA procedure at the regional and municipal levels and the effect of the RIA procedure on the investment climate in Ulyanovsk Oblast. Among other things, he noted that the introduction of the RIA procedure had resulted in a more rigid sifting of normative acts, and that the current lack of specialists knowledgeable on the RIA procedure represented a significant problem.

Oleg Asmus's Presentation >>>

Rector of the Russian Presidential Academy of National Economy and Public Administration (RANEPA) Vladimir Mau in his speech outlined the economic problems that Russia is faced with at the present moment.

Dr. Mau noted that Russia is currently experiencing three crises at once, each of which requires a different set of solutions in order to be successfully dealt with. Firstly, Russia's national economy has been plunged into a profound structural crisis similar to the crises that occurred in the 1930s and 1970s. An exit fr om that crisis can only be achievable on the basis of structural changes in the economy and the implementation of new technologies. Secondly, we are faced with a cyclical crisis, the current phase of which is marked by a very low level of investment and business activity. Thirdly, there is the crisis triggered by the economic shocks resulting from the sanctions introduced by the West against Russia.

The main problem that arises in connection with the search for solutions has to do with the fact that each of the three crises requires an adequate but individual approach. Thus, the exit from the cyclical crisis is achievable through the Keynesian model, which implies lowering interest rates and ensuring a large-scale money inflow into the economy. The challenges posed by the structural crisis can be answered by upgrading the currently applied technologies and by implementing some other economic models. In this connection it should be borne in mind that the recipes appropriate for dealing with a cyclical crisis will produce a fatal effect in an economy plagued by a structural crisis, because a cash inflow that is not backed by new technologies will be useless and even harmful.

To exit from the structural crisis, we will need to focus on the most promising industries and develop a new regulation model. As Dr. Mau pointed out, every country that had successfully exited from a structural crisis did so by applying a different regulation model. He added that, in conditions of a structural crisis, one should not overestimate the importance of macroeconomic methods, as structural problems faced by an economy cannot be solved by monetary policy measures. It will be necessary instead to improve the investment climate and institutional environment, implement new technologies, invest in infrastructure and human capital, alter the structure of expenditure and create much safer conditions for the conduct of economic activity and the operation of businesses.

Besides, Dr. Mau noted that the fundamental issues currently faced by Russia's economy have nothing to do with the Western sanctions - they have been caused by the existing structural misbalances inside the country.

Director of the RF Ministry of Economic Development's Department of Regulatory Impact Assessment Vadim Zhivulin noted, among other things, that over the period 2010–2014 businesses, due to the implementation of the Regulatory Impact Assessment (RIA) procedure, managed to save an additional Rb 600m to 3.1 trillion. Over that period, approximately 22,000 comments, opinions and suggestions were submitted by entrepreneurs, on the basis of which 2,700 conclusions were drawn. Besides, Mr Zhivulin mentioned issues associated with the implementation of RIA on the regional level.

Head of Chair of State Regulation of Economy (School of Public Policy, RANEPA) Vladimir Klemanov presented his report 'Regulatory Impact Assessment in Conditions of Developing Government Programs in the Regions', wh ere he touched upon the issue of harmonization of government programs with RIA procedures, as well as the specific differences between the implementation of government programs on regional and municipal levels. He spoke of the need to properly coordinate government programs with the existing strategic planning goals.

The evening session was devoted to the discussion of development prospects and issues of RIA implementation in RF subjects and municipal formations (moderator – Director of the Program Planning and RIA Department of the Ministry of Economic Development for Ulianovsk Oblast Maxim Svetunkov). The participants heard the presentations by representatives of the bodies of executive authority of Krasnodar Krai, the Chuvash Republic and the Republic of Bashkortostan.