April 20, 2009 By James Kimer

Shuvalov’s Promises for 2020

There is an interesting op/ed in today’s Moscow Times by Michael Bohm, which disputes some that the goals of Strategy 2020 require no readjustment given the damage caused by the economic crisis.  Naturally, our eyes our drawn to Bohm’s comments about administrative barriers and the weakened environment for rule of law which holds back entrepreneurs and small companies from revitalizing the country – two trends which are especially highlighted by the second trial of Mikhail Khodorkovsky.

As long as Russian bureaucrats (and competitors) are free to terrorize businesses by creating “administrative barriers,” extorting bribes and raiding, economic growth in the real sector will always be insignificant. To his credit, President Dmitry Medvedev is backing a new law to assist small businesses, which will, among other things, limit the number of government inspections of businesses. Most likely, however, these limitations will be easily sidestepped when bureaucrats simply extort a larger amount of money per inspection.