Russia rose in Doing Business ranking due to reforms

Russia has risen in the ranking of Doing Business on lines 11 through practical effects from the earlier reforms and additions to the methodology for calculating the rating of new indicators, the members of the government and representatives of business associations.

MOSCOW, 28 Oct. To improve the result of Russia in the Doing Business ranking to 51st lines due to the emergence of the practical effects of the reforms and expansion of the research methodology with new indicators, I believe members of the government and representatives of business associations.

The world Bank (WB) and international Finance Corporation (IFC) yesterday published a rating of Doing Business-2016, according to which Russia has climbed to 51st place. In last year’s study, Russia was ranked 62nd place ranking; however, the method of assessments was revised for the second year in a row. If you compare the achievements of the Russian Federation with the previous ranking, the position has improved by 11 points. However, in accordance with the new methodology the world Bank has revised previous rating of Russia by lifting it “retroactively” to 54 th place in 2015. In this regard, under the new methodology, the increase was three points, which caused different interpretations in estimations of growth of a rating of the Russian Federation.

“The improved position in the world Bank rating was due to ongoing reforms to improve the business environment, the emergence of practical effects from the earlier reforms and additions to the methodology for calculating the rating of new indicators that characterize the quality of legal regulation”, — said Deputy Minister of economic development of the Russian Federation Stanislav Voskresensky.

The movement for the better

Authorized under the Russian President for human entrepreneurs Boris Titov believes that from the point of view of doing business in the country there is a move for the better. “This process is largely linked to the implementation of 11 “road maps” to improve the business climate,” he said.

“In addition, more departments are beginning to implement a risk-based approach in the implementation of control and supervision, allowing for more targeted inspections without affecting honest businessmen. The reference here, of course, the Federal tax service. She is also a leader in the provision of electronic services to the business. This is the second area in which our country is actively developing,” he continued.

The head of Rosreestr Igor Vasiliev stresses that an important change in the rating methodology is the introduction of a new indicator measuring the quality of land administration. On this indicator Russia has 26 points out of 30 possible.

“It allows us to estimate how good and reliable used registry data rights and cadastre of real estate, how they fit together, is there information about real estate, regulatory framework for public services in the field of registration of rights and cadastre registration, acts as a mechanism for resolving land disputes,” he explains.

According to Vasiliev, the combination of these indicators, as well as a number of practical steps the Federal registration service, including the development of electronic services, will positively affect Russia’s position in the ranking.

There is work to do

However, first Deputy Prime Minister Igor Shuvalov believes that Russia still have a lot to do to move to the top.

The President of Russia Vladimir Putin in his may decrees of 2012 instructed the government to take measures aimed at improving Russia’s position in world Bank ranking on business conditions with 120-th position calculated in 2011 to 50th in 2015 and up to 20th in 2018.

“By the indicators that You defined for the government in 2015, we were supposed to be in 50 States that are affected by this counting system. We have slightly under achieved this indicator — 51st place”, — said Shuvalov to President on meeting with members of the government.

Many of the reforms undertaken by the government, considered by the world Bank. “Overall, we are working actively with the world Bank. This work is ongoing and not a session and the execution of our road map for entrepreneurial initiative, when all our plans are for 2016, it is hoped that these indicators will significantly improve”, — concluded the first Vice Premier.

“If we talk about where else there are resources for growth, we still remain problems in technical, environmental, customs regulation,” recognizes, for its part, the business Ombudsman Titov.

The President Trading-industrial chamber of the Russian Federation Sergey Katyrin has noted that “the first thing to assess is the increasing availability of financial resources, rather than formal procedures for obtaining them”.

“Of course, in terms of investment climate are implemented with major initiatives such as the national rating of investment climate in subjects of the Russian Federation, which sets the priorities for developing the regional business environment and identifying and spreading good management decisions. However, it should be not only comfortable, but practical work”, — said Katyrin.

The interest of investors

Titov noted that the strengthening of Russia’s positions in the Doing Business ranking has a positive impact on those investors who are still wondering which country to invest.

“International rankings — the first thing that investors look. Among them, Doing Business is one of the most important, as it essentially reflects the ease of doing business in the country: it takes into account the timing of receipt of permits, speed of obtaining approvals, registering companies, the complexity of tax reporting, and other very important while doing business things,” explains the business Ombudsman.

Each parameter is easily calculated and easily checked, he said. “That’s why we in “Business Russia” within the framework of the national entrepreneurial initiative proposed to make Doing Business a key KPI in the economic policy of the country. It is very important that in this rating Russia is already ahead of all the BRICS countries, including China,” said Titov.

The report “Doing business” is drawn 13 times and covers 189 countries. He explores the regulations that promote or impede business development in the entire activity cycle, including the establishment of the enterprise, doing business, foreign trade, tax payment, and the level of investor protection.

Heads the world ranking on creating the most favorable conditions for doing business for the tenth consecutive year Singapore. Besides him, the ten leaders of a rating included: New Zealand, Denmark, South Korea, Hong Kong, UK, USA, Sweden, Norway and Finland.