A major effort by the government is needed to ensure free trade and factor mobility between regions. In addition to direct benefits from such policies, they can have an important general disciplining effect on regional policies, as less reform-minded regions will face a greater risk of losing factors of production and investment. The government should carry through its current initiative to finally create an effective infrastructure for the regulation of natural monopolies, and promote competition in at least parts of these industries. The environment for entrepreneurship should be improved through streamlining the current difficult and cumbersome processes, relative to most other transition countries, for the registration and operation of small businesses. Competition law enforcement and advocacy should be strengthened.
Competition policy is crucial to consumer welfare and the future economic development of Russia.
While the Russian competition law is a modern and for the most part workable competition statute, the role of the Antimonopoly Committee should be strengthened at the federal, regional and local levels. At this stage, the AMC and its territorial offices should concentrate their resources on priority tasks. This includes counteracting anti-competitive policies of regional and local government bodies as well as collusive agreements among producers. For these bodies to work efficiently, support by the Government at the highest levels is necessary.