MOSCOW, March 03, 2008 Russian Public Opinion Research Center (VCIOM) presents information on how Russian entrepreneurs estimate the licensing system, as well as the system of business monitoring and control currently in force.
Problems connected with business administration today are quite topical. To be more exact, entrepreneurs tend to negatively estimate the activity of the licensing system, as well as the system of business monitoring and control: the mean score of these estimations totals 3.63 out of 7, i.e. it is below the median level. These estimations do not really depend on the size of the enterprise. Branch affiliation, however, has certain influence on the estimations. Owners and heads of companies working in the industry and construction tend to be disposed a little more optimistically (3.68 points; cf.: this index equals 3.55-3.57 points in other branches).
Businessmen make their main claims to the work of tax inspection bodies that interfere with the normal activity of 43% of companies participating in the survey. This includes 7% of respondents who indicate, that the activity that representatives of tax inspection demonstrated drastically interfered with their business activity. The State Fire-Fighting service, ecological inspection, Russian Agency for Health and Consumer Rights and licensing bodies all belong to the group of regulatory bodies that negatively influence Russian companies' activity. All of them made the business process of 24-37% of the companies more complicated, including 4-6% of enterprises and organizations that indicate that intervention of these bodies turned out to be a serious obstacle for their business activity.
The major claims that businessmen have against the way how the checks at their enterprises are carried out, can be summed up and expressed as follows: these checks are very often used as a means to make businessmen to enter corrupt relations with representatives of the regulatory bodies. In fact, the first three lines in the rating of problems that enterprises need to face during checks belong to complains on the fact that the supervisor requires an excessive number of documents that is not stipulated by the law (30%), on the fact that the checks occur with excessive frequency (23%) and on the actually direct or ambiguous hints as to the necessity of paying the "services" that the officials provide (18%). Entrepreneurs also indicate that these checks are frequently “ordered” (17%), which can also serve as a good proof of the fact that representatives of regulatory bodies are corrupt.
Too high expenses, first of all, of temporary type, that businessmen have to carry when going through the various monitoring and supervising procedures, make them search for ways to optimize the process. And bribes become the only tool, capable of shifting the business from "the dead point". The efficiency of use of corrupt mechanisms is especially evident when a question of the long-term procedures is touched upon, such as allocation of a ground area (bribery reduces the duration of the procedure on the average from 163 down to 58 days) or reception of the sanction to construction and reconstruction (from 134 down to 52 days). The economy of time when passing other procedures and using bribes is also impressive: the expenses are reduced in this case by 1.7-2.9 times.
The survey of 1200 Russian businessmen (owners and top-managers of private companies) was carried out in September - October 2007 in 40 constituent entities of the Russian Federation. The selection represents the enterprise community according to branch affiliation (based on three macro branches, i.e. the industry and construction; transport and communication; service and trade) and is proportional to their share in the national economy and the size of the enterprises (according to the number people employed).
How would you estimate the activity of the licensing system on the whole, as well as the system of business monitoring and control, as contributing to the business development or as obstructing it?
Average score in the selection
Including small business companies
Including medium business companies
Including large business companies
Including companies working in the industry and construction
Including companies working in the transport and communication
Including companies working in the service and trade
Which of the following regulatory bodies exercised any influence on your company's working activity? (One answer per line)
I had nothing to do with this organization
It does not obstruct our work
It impedes our work to a small extent
It impedes our work to a significant extent
Hard to say
The State Fire-Fighting service
Russian Agency for Health and Consumer Rights
Russian Federal Service for Ecological, Technical and Atomic Supervision
Ministry of the Interior
Consumer protection agency
Russian veterinary inspection
The supervisor requires an excessive number of documents than stated in the law
Excessive frequency of checks
Direct or ambiguous hints as to the necessity of paying the "services" that the officials provide
„Ordered“, paid checks
Insufficient competence of the officials, carrying out the checks
Violations of rules of conducting checks, stated in the regulatory legal acts
When conducting checks, the officials base their activities on other regulatory legal acts than Federal Law № 137 that regulates the supervision procedure
Discrepancy between the supervision object and the one mentioned in the supervision act
Supervision carried out by unauthorized officials
There normally arise no problems during checks
Hard to say
Observing all the rules
If one bribes
Allocation of a ground area
The sanction to construction and reconstruction
Closing (liquidation) of an enterprise
Registration of the contract of rent of municipal or state property
Connection to municipal and to electric systems
Reception and prolongation of the license
Reception of some expert judgement
Registration of the enterprise
The sanction to the right of trade