Development of competition in local markets in Russia

Local government in the Russian Federation occupies an important place in thesystem of regulation of the economy. The authorities of the local self-government performsadministrative function in relation to the business, create conditions for development of competition and at the same time can act as a full business entity [8, p. 137].

Practical adaptation of the municipal economy to the new market conditions,reviewing mechanisms and territorial development of management tools, especially in thechoice of a competitive model of municipal economy, identifying the factors and elementsthat affect the development of competitive relations and mechanisms can be effective onlywhen activated internal resources and potential of the territory [6, p. 109], through theeffective functioning of the economic mechanism of the municipalities [2, p. 52].

One of the reasons for the weak development of competition in local markets, the business community calls numerous barriers that are created both by the local governmentauthorities and other economic entities that have market power and determine the «rules ofthe game» [5, p. 68]. Factors hampering the development of competition:• administrative barriers; • inf rastructure constraints;• problems of access to the municipal order. At the same time, according to the statistics of the revealed violations of theantimonopoly legislation, in recent years the maximum share is accounted for byantimonopoly acts and actions of the authorities (local self-government) [4, p. 85].

In thiscase the violation of the antimonopoly legislation on their part often inflicts more tangibleharm to competitive relations in the market, rather than violations that are directlycommitted by business entities.So, at least 10% of the annual cases dealt with by the Federal Antimonopoly serviceof Russia (FAS of Russia), are the actions of local governments on creation of illegally performing work or services closely related to their ongoing functions powerful character.

Areas of activity in which the greatest number of different types of anticompetitiveactions are observed on the part of local self-government bodies:• obstacles to business entities operating in the road transport market —  urban andintercity transportation (16.5%);• obstacles to the activity of subjects in the consumer market (10%) —  utilities,infrastructure industries and other areas of activity.In the structure of disorders, one third is related to restrictions on the economicactivity of the organizations that make up the infrastructure of municipal services: passengertransportation, the organization of retail trade and catering, ceremonial services, etc. [3, p.38].

A key measure for promoting competition is the mandatory approval of the FAS ofRussia decisions of municipal authorities on the establishment of the municipal unitaryenterprises, and also the use of a valid «outsourcing» of administrative processes. Given the trend in the development of competition, according to the number of steps,including: the adoption of the state program on the development of competition, thedevelopment and adoption of a roadmap for the development of competition can be traced priority in complication of competition economy at all levels.Due to the fact that state programs are long-term strategic documents that determinethe direction of development of the relevant sphere of the economy [7, p. 213], in particularantimonopoly regulation, and the «road map» is a tactical tool based on the «revolving» principle.

Distinctive features, which are:• accuracy; • limited time; • indicators of the effectiveness evaluation; • ability to make changes. The continuation of the systemic work on the development of competition in Russia,in the constituent entities of the Federation, sees the adoption of a municipal standard for thedevelopment of competition through the development and implementation of a modelmunicipal road map and as a result of the Municipal Competition Development Standard.In addition, as well as the provisions of the Regional Standard, the standard plan forthe development of competition provides for the preparation of the final annual report on thestate and development of competition in the municipality.

According to experts of the analytical center of the Russian Government, the use oftypical municipal «road map» on the one hand, may allow more affordable to disclose the purpose and methodology of the implementation of regional standards for local authorities,and on the other hand, to encourage the municipalities to the competition to attract Businesson their territory.Thus, the policy of development of competition in municipalities involves theimplementation of a set of systemic activities, including:• reduction of administrative barriers;• improvement of mechanisms for the implementation of the municipal order; • development of priority markets for the municipality; • development and implementation of the municipal standard for the development ofcompetition.

The implementation of the above measures will allow, on the one hand to form a«growth point» in the development of economic basis of local self -government, which willhave a direct impact on improving the quality of life of the local community and the qualityof implementation of issues of local importance by bodies of local self-government, and onthe other allow to promote the mechanism of competitive relations in the economy of Russia.

References:1. Belozertseva A., Khramtsov A. Problems of development of competition in municipalformations of the Tyumen region and ways of their solution // Urban management. No. 7.2014. P. 39-55.2. Ignatova TV, Karmizov A.E. Influence of opportunistic behavior on the development ofthe institute of competition in state management // State and Municipal Administration.Scientific notes SKAGS. №1. 2015. P. 43-50.

3. Knyazeva I.V. The constitutional basis for maintaining competition: the limits ofadmissibility in solving local issues // Bulletin of the Tyumen State University.№3. 2011.P. 5-40.4. Maltseva O.V. Antimonopoly regulation in Russia: practice and directions ofimprovement // State and Municipal Administration. Scientific notes SKAGS. No. 3. 2011.P. 84-91.5.Martynenko Т.V. Theory and practice of state regulationof the economy in modernRussia. Monograph. – Rostov-on-Don: Publishing house SKAGS, 2011. 143 p.6. Fundamentals of the economy of the municipal formation. Part II / Under the Society. Ed.Minister of Economy, Trade, International and Foreign Economic Relations of the RostovRegion V.P. Barteneva. – Rostov-on-Don: Academic. 2010.7. Rogozhin R.V. Current state and prospects of development of competitive relations in theRussian economy // State and Municipal Administration. Scientific notes SKAGS. №1.2015. P. 210-215.8.Strategy of economic development of the territory of the municipality: Textbook / Т.В.Ignatova, S.P. Kurdzhiev, M.A. Ovakimyan and others; Under the general ed. Prof. V.G.Ignatova. – M.: ECC “Mart”; Rostov n / D; Publishing Center “MarT”, 2007. 295 p.

Autor Rogozhin Roman Valeryevich

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