Reducing Structural Dominance and Entry Barriers in Russian Industry

May 2000 - The absence of new business in Russia is striking. Reforms to make Russia more competitive should start with eliminating regulatory and institutional barriers to the entry of new competitors. Many industrial firms in Russia have undergone changes in ownership, but relatively few have been...

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Bibliographic Details
Main Author: Broadman, G. Harry
Format: eBook
Language:English
Published: Washington, D.C The World Bank 1999
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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653 |a Vertical Integration 
653 |a Macroeconomics and Economic Growth 
653 |a E-Business 
653 |a Microfinance 
653 |a Markets and Market Access 
653 |a Output 
653 |a Privatization 
653 |a Barriers 
653 |a Liberalization 
653 |a Transport Economics, Policy and Planning 
653 |a Barriers To Entry 
653 |a Emerging Markets 
653 |a Competitive Market 
653 |a Competition 
653 |a Regional Trade 
653 |a Business Environment 
653 |a Market Shares 
653 |a Market Share 
653 |a Monopoly 
653 |a Business Investment 
653 |a Debt Markets 
653 |a Private Sector Development 
653 |a Small Scale Enterprises 
653 |a Transparency 
653 |a Prices 
653 |a Finance and Financial Sector Development 
653 |a Economic Theory and Research 
653 |a Transport 
653 |a Banks and Banking Reform 
653 |a Developing Countries 
653 |a Price 
653 |a Public Sector Corruption and Anticorruption Measures 
653 |a Competition Policy 
653 |a International Accounting Standards 
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520 |a May 2000 - The absence of new business in Russia is striking. Reforms to make Russia more competitive should start with eliminating regulatory and institutional barriers to the entry of new competitors. Many industrial firms in Russia have undergone changes in ownership, but relatively few have been competitively restructured. Using survey and other data, Broadman suggests that much of Russian industry is immune from robust competition because of heavy vertical integration, geographic segmentation, and the concentration of buyers and sellers in selected markets. Moreover, regulatory constraints protect incumbent firms from competition with new entrants, both domestic and foreign. Broadman sketches a reform agenda for Russia's post-privatization program, which emphasizes the restructuring of anticompetitive structures and the reduction of barriers to entry. Broadman's proposed reform agenda calls broadly for strengthening Russia's nascent rules-based framework for competition policy to reduce discretion, increase transparency, and improve accountability. This paper - a product of the Poverty Reduction and Economic Management Sector Unit, Europe and Central Asia Regional Office - is part of a larger effort in the region to assess structural reform in Russia. The author may be contacted at hbroadman@worldbank.org