13.10.08

Alexander Shokhin of the Russian Business and Entrepreneurship Union published his "Appeal to the national leadership", a document scathingly critical of the anti-crisis measures taken by the powers-that-be. As far as Shokhin is concerned, the authorities deign to conduct a dialogue with but a limited number of businesses these days, the ones they offer support to. "The state cannot afford ineffective decisions anymore," Shokhin warned. "It is of paramount importance that we avoid a crisis of trust that may extend the financial crisis and foment social unrest." The Russian Business and Entrepreneurship Union stands by its president but experts do not think that the financial crisis has reached the point yet where the state will start listening to businessmen.

Shokhin urged the authorities to acquaint general public (business circles, that is) with the principles of selection of the businesses the state offers anti-crisis support to. "Instead of supporting individual businesses, the state had better stimulate demand via infrastructural and developing state projects," he said.

Shokhin demanded from the powers-that-be to revise some "political" decisions that had had an adverse effect on business climate in Russia. "Forget for the time being the decisions that worsen the business climate or change the rules," Shokhin said. "Crisis is a bad moment to tighten tax pressure and stiffen control." Union president advised the state to finally do something about state corporations. As far as he is concerned, the state should set the duration of existence for each of them, determine the procedure of their privatization afterwards, and decide what to do with the money (choose the institutional reforms to pour it in, that is).

The Russian Business and Entrepreneurship Union suggested establishment of a common regulating body for the banking and financial spheres or else application of the general requirements to the banking system to the institutions the authorities supported. "Unless the authorities started listening to business, the damage to the national economy in this crisis would almost certainly exceed the 1% of the GDP mentioned by state officials," Shokhin said.

What businessmen Nezavisimaya Gazeta approached mostly seconded Shokhin. "He did not outline all problematic areas of course. All the same, we all should support Shokhin," Boris Titov of Business Russia said. "Unfortunately, grave industrial crisis is a grim possibility because finances do not reach the real economy..." Titov added that Finance Minister Aleksei Kudrin's views and actions were contrary to the anti-crisis strategies promoted throughout the rest of the world. "All other countries encourage businesses and ease taxation. It is in Russia alone that taxes are increased and life is made as hard as possible for businesses."

"The crisis has reached the phase where the state should start listening. And yes, a lighter tax burden would have been a nice and effective step. Why for example insist on discussing a lower VAT only in 2009 and not earlier?" economist Danila Levchenko said.

Most experts, however, do not think that the powers-that-be are prepared to listen to others yet. "Nothing short of actual recession or mass wage arrears will compel the powers-that-be to abandon their arrogant we'll-ask-you-when-we-are-ready stand with regard to businesses," Igor Nikolayev of FBK said.

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Source: Nezavisimaya Gazeta