Experts advise to take into account the rating of the Russian Federation in the rating of economic freedom

Experts advise to take into account the rating of the Russian Federation in the rating of economic freedom

The ranking compiled by the Heritage Foundation, you need to take into account, as it allows you to determine how economic the structure meets the requirements of the global economy, experts say.

MOSCOW, 1 Feb. The Russian authorities should take into account the rating of the country in the ranking of economic freedom by the Heritage Foundation, experts say, noting that not all the positions agree with the results of the rating.

According to a study by the Heritage Foundation, index of economic freedom in Russia in 2016 compared with the previous year decreased by 1.5 points to level 50,6 points. Thus, Russia has worsened its position in the ranking on 10 lines in comparison with the year 2015, finishing in 153rd place. Topped the rating for 2016 three countries in the Asia-Pacific region — Hong Kong (88.6 points), Singapore (87.8 points) and New Zealand (81.6 points).

Thus the value of tax freedom in the country fell by 3.9 points to 82.2 points, the index of freedom from corruption dropped 1 point to 27 points, and the index of freedom of labor market lost 1.3 points, dropping to 57.6 points.

“At least, the situation is not in all segments has deteriorated compared to other countries that increased trade restrictions, imposed currency restrictions. We plan some “draconian”, serious restrictions were imposed, so the decline of Russia in the international ranking I see it as not reflecting fully the processes that occur in our economy, and how we look at the global market”, — said the chief economist of the Eurasian development Bank Yaroslav Lissovolik.

The Doing Business rating, in his view, more adequately reflects the situation in the Russian economy.

“The rating needs to take into account because it still defines a vector of development of regulatory systems. And the basic criteria of this rating make you think about how the economic structure meets the requirements of the growing global economy,” said the adviser of Institute of modern development Nikita Maslennikov.

Causes of low grade

The lack of competition in the country is one of the reasons for the low rating, said Maslennikov. Thus, the share of public sector is more than 50% of GDP, while the small business only 20%. The world Bank estimates that out-of-area competition work about 20-25% of the entire business.

“If the government does not undertake any economic reforms, aimed at development of investment climate, in itself, the situation of small and medium business is deteriorating,” — said, in turn, the Director of the relevant Institute of Economics Nikita Isaev.

In addition, a rather negative assessment generated because of excessive state regulation, I am sure Maslennikov. According to the Minister, extra costs due to excess regulation amount to about 800 billion rubles a year, cited the findings of the expert.

“These indicators enough to think about what economic freedom is a hint to the authorities of the Russian Federation to engage in serious structural agenda. On the ratings to draw conclusions and match them to make decisions that are necessary. It will be extremely useful, given that prepares anti-crisis plan,” said Maslennikov.