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List of Participants

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Russian Federation and the IMF

Conference and Seminar on "Investment Climate and Russia's Economic Strategy"
Moscow, April 5–7, 2000

A three day conference/seminar on the "Investment Climate and Russia's Economic Strategy" was held in Moscow on April 5–7, 2000. The event was organized by the State University Higher School of Economics with the support of the World Bank and the IMF. Participants included representatives from government, the Duma, business, and academia, as well as from the international financial institutions (IFIs), including the EBRD and OECD, and foreign experts.

The event was divided into three sections. The first day featured a conference with wide participation of mainly technical experts. It was based on a large number of papers prepared by Russian experts and the IFIs covering a range of macroeconomic and structural issues, and divided into the following four working groups (running in parallel): (i) macroeconomic conditions for economic growth; (ii) institutional and structural limitations to economic growth; (iii) social policy and economic development; and (iv) state regulation of the economy--freedom and the rule of law. The second day featured a plenary session with addresses by Mr. Kudrin (First Deputy Minister of Finance), the chairmen of the four conference working groups (Messrs. Gavrilenkov, Shokhin, Yakobson, and Kuzminov) and Mr. Yasin (all HSE), Mr. Fischer (Acting Managing Director of the IMF), and Mr. Linn (Vice President for Europe and Central Asia at the World Bank). Several hundred people attended the plenary session, which was also open to the press. The third day featured a high level seminar with participation of business leaders and policy makers, in the format of a roundtable discussion of the main issues covered in the conference.

The agendas for the conference and seminar are shown below, along with the list of participants in the seminar. There is a link to Mr. Fischer's speech that was presented at the plenary session.

There was a high degree of consensus regarding the key macroeconomic and structural problems faced by the Russian economy as well as the priority areas of reform and direction of main policy steps. All agreed that there was no alternative to proceeding with the establishment of a market economy based on private initiative and entrepreneurship. The key challenge now was to improve the investment climate. This required preserving macroeconomic stability and broadening and accelerating structural reforms. The government needed to be streamlined through tax and expenditure reforms while providing greater clarity in relations between the different levels of government. In general, there should be increased deregulation of economic activities in tandem with a strengthening of the rule of law and weeding out of corruption. The process of bank and enterprise restructuring had to be speeded up through promoting competition and corporate governance and firming the procedures for exit of unviable businesses, including through bankruptcy. The restructuring process needed to be supported by a strengthening of the social safety net. These reforms should go a long way toward eliminating the problem of nonpayments in the economy. However, their success would depend intimately on the ability to foster broad based support and stand up to vested interests.


Wednesday, April 5

Section 1. Macroeconomic conditions for economic growth

Convenors: O. V. Viugin, S. A. Alexashenko, Ye. Ye. Gavrilenkov Academic Secretary—B. E. Brodsky


Session I. Macroeconomic policy and economic development scenarios
(Chairman: Ye. T. Gaidar)
  Medium-term macroeconomic outlook
Speaker: T. Laursen
  Russia's economy: alternatives of development and prospects of growth
Speaker: A. R. Belousov
  Russia's economic strategy (key theses)
Speaker: Ye. Ye. Gavrilenkov
12.00–12.15 Coffee Break
12.15–14.00 Session II. Budget policy, government debt, financial markets
(Chairman: I. S. Materov)
  Macroeconomic limitations for budget reforms in the short-term and long-term perspective
Speaker: A. V. Dvorkovich
  Issues in public expenditure policy
Speakers: A. Morozov, M. Sandberg
  Budget policy and economic growth
Speaker: A. N. Illarionov
  Tax policy and administration for Russia
Speaker: J. Davis
14.00–15.00 Lunch
15.00–17.00 Session III. Post-crisis economic growth: mechanisms, factors, limitations
(Chairman: W. Schrettl)
  Factors and limitations of Russian economy growth in the post-crisis period
Speakers: G. O. Kuranov, I. S. Materov
  Banking system restructuring in Russia
Speakers: D. S. Hoelscher, W. Alexander, M. Fuchs
  The model of debt and sovereignty path: the Russian default of 1998
Speaker: A. D. Smirnov
17.00–17.15 Coffee Break
17.15–19.00 Session IV. Investment and industrial growth
(Chairman: S. V. Aleksashenko)
  Investment programs
Speaker: V. V. Kossov
  Capital flight from Russia
Speaker: P. Loungani
  Structural factors of investment growth
Speaker: B. E. Brodsky
19.00 Summing up
Section 2. Institutional and structural limitations to
economic growth

Convenors: A. N. Shokhin, V. V. Radayev, A. A. Yakovlev
Academic Secretary T. V. Pustovalova
10.00–12.00 Session I. How to restructure the economy
(Chairman: A. N. Shokhin)
  Overview of structural reforms in Russia after 1998 financial crisis
Speaker: S. A. Vasiliev
  Structural and institutional constraints on economic growth
Speaker: A. A. Yakovlev
  Competition and entry in Russian industry
Speaker: H. Broadman
  Restructuring of RAO UES
Speaker: V. Yu. Sinyugin
  Enterprise Restructuring
Speakers: I. Goldberg, A. Watkins
  Foreign economic relations as an important factor of economic growth
Speaker: A. V. Kuznetsov
  Proposals on the agro-industrial sector development concept
Speaker: E. V. Serova
12.00–12.15 Coffee Break
12.15–14.00 Session II. How to protect property rights
(Chairman: A. N. Shokhin)
  Corporate governance in Russia: is there any chance of improvement?
Speaker: D. V. Vasilyev
  Corporate governance and the Russian enterprises' performance
Speaker: P. V. Kuznetsov
  Forming corporate control models in the Russian industry (from surveys of enterprises)
Speaker: T. G. Dolgopyatova
  Corporate governance problems in the telecommunications industry
Speaker: D. B. Zimin
  The role of law in transaction strategies of Russian enterprises
Speaker: K. Hendley
14.00–15.00 Lunch
15.00–17.00 Session III. How to get out of the shadow economy
(Chairman: V. V. Radayev)
  Institutional traps: is there a way out?
Speaker: V. M. Polterovich
  Financial situation of Russian enterprises
Speaker: P. A. Karpov
  De-monetization of the Russian economy
Speaker: J. Litwak
  Barter and arrears in Russia: Principles of a solution strategy
Speaker: C. Mumssen
  From the economy of non-payments to a cash economy
Speaker: A. N. Klepach
  Prospects for direct investment to Russian economy (example of Italian producers of durables)
Speaker: C. Boffito
17.00–17.15 Coffee Break
17.15–19.00 Session IV. How to create incentives for development
(Chairman: A. A. Yakovlev)
  Major vectors of institutional transformations in Russian economy
Speaker: V. V. Radyev
  How rational a small businessman's behavior is
Speaker: A. Yu.Chepurenko
  Promoting competition and entrepreneurship
Speaker: S. Fries
  Russian enterprises: some aspects of assessing investment attractiveness
Speaker: I. V. Lipsits
  Institutional limitations of Russian enterprises' investment behavior
Speaker: Yu. Danilov
  Overriding institutional limitations while realizing investment potential of high-technology firms
Speaker: I. B. Gurkov
19.00 Summing up
Section 3. Social policy and economic development (Room 102)
Convenors: L. I. Yakobson, Ye. Sh. Gontmakher
Academic Secretary—S. N. Smirnov
10.00–12.00 Session I. The role of social policy in forming an investment climate
(Chairman: L. I. Yakobson)
  Principles and main elements of social strategy
Speakers: E.Sh. Gontmakher & V. V. Trubin
  Functions of the social policy in economic growth mechanisms in the present-day Russia
Speaker: K. I. Mikulsky
  Social orientation of economic mechanisms
Speaker: L. S. Rzhanitsyna
  Strengthening of the role of the state in ensuring social progress
Speaker: I. A. Ilyin
  Social reforms in transition economies: first steps and their lessons
Speaker: L. S. Degtyar
  Social orientation of economic mechanisms
Speaker: L. A. Gordon
  Social dynamics, social capital and economic development
Speaker: I. Ye. Diskin
  Social factors of economic growth
Speaker: V. V. Kulikov
  Social factors favorable for capital willing to work in Russia
Speaker: B. V. Rakitsky
  The Russian society's moral climate as economic development environment
Speaker: O. L. Shakhnazarov
  Social policy in a federative state
Speaker: S. N. Smirnov
12.00–12.15 Coffee Break
12.15–14.00 Session II. Labor relations and their impact on investment climate
(Chairman: Ye. Sh. Gontmakher)
  Re-production of workforce and social policy
Speaker: D. F. Shavishvili
  Integration of employment in the system of macroeconomic factors of economic growth
Speaker: L. S. Chizhova
  On controversies between the policy of employment and the macro economic stabilization policy
Speaker: A. V. Kashepov
  Assessment of investment costs for creating direct and related jobs
Speaker: A. S. Semenov
  Job separation as an efficient government policy measure in the lab market
Speaker: M. G. Kolosnitsyna
  Social partnership and the development of the economy
Speaker: V. K. Kashin
  Tasks of optimizing the government personnel policy
Speaker: L. S. Ruban
  Russian labor values in the context of international comparisons
Speaker: V. S. Magun
14.00–15.00 Lunch
15.00–17.00 Session III. Social restructuring
(Chairman: L. I. Yakobson)
  Reports by representatives of P&G ("Start" Labor Fund and restructuring of AK "Novomoskovskbytkhim" [1997-1999]), Norilsk Nickel (On social implications of the coal sector restructuring).
17.00–17.15 Coffee Break
17.15–18.00 Session IV. Revenue policy and investment climate
(Chairman: L. I. Yakobson)
  Russia: Note on social protection
Speaker: H. Sederlof
  Living standards: conceptual and parametric approaches
Speaker: V. M. Zherebin
  Regional specifics of differentiation of population by current cash revenues
Speaker: V. N. Bobkov
  Problems of overcoming poverty in the country
Speaker: V. G. Zinin
  From the new poor to the middle class: a strategy of transition
Speaker: L. N. Ovcharova
  Problems of optimizing the price policy and household incomes
Speaker: S. V. Pronin
  Capitalization of insurance contributions (premiums) in mandatory and voluntary social insurance systems in Russia: possibilities and prospects
Speaker: G. P. Degtyarev
18.00–19.00 Session V. Problems of development of the social and cultural areas
(Chairman: L. I. Yakobson)
  Housing policy as an economic development factor
Speaker: N. B. Kosareva
  Single-industry cities: socio-economic problems and solutions
Speaker: V. Ya. Lyubovny
  Strategy of reforming health services
Speaker: S. V. Shishkin
  Investment situation in Russia's tourist industry
Speaker: P. M. Shulgin
  Education as an instrument of the social and economic development
Speaker: T. L. Klyachko
19.00 Summing up
Section 4. State regulation of the economy:
freedom and the rule of law

Convenors: Ya. I. Kuzminov, M. P. Afanasiev, Yu. A. Tikhomirov
Academic Secretary—N. V. Rostovtseva
10.00–12.00 Session I. Functions of the state in the economic sphere
(Chairman: Yu. A. Tikhomirov)
  Modernization of the state
Speaker: Ya. I. Kuzminov
  On the system of legal support of the economy
Speaker:Yu.A. Tikhomirov
  The sphere of state regulation and control
Speaker: E. N. Renov
  Development of legislation in the management of economy field
Speaker: I. L. Bachilo
  Legal means and boundaries of the state regulation of the economy
Speaker: O. M. Oleynik
  Defects of the market: normative regulation
Speaker: Ye. A. Kulkov
  State influence on economic relations in Russia
Speaker: V. D. Mazayev
12.00–12.15 Coffee Break
12.15–14.00 Session II. On corruption
Speaker: Ya. I. Kuzminov
  Anti-corruption priorities in Russia
Speaker: S. V. Stepashin
  Corruption in Russia
Speaker: J. Roaf
  Anti-corruption policy in Russia
Speaker: G. A. Satarov
  Does corruption eliminate failures of the state?
Speaker: M. I. Levin
  Principles of building government service
Speaker: A. G. Barabashev
  Corruption in Russia and problems of criminal law resistance to it
Speaker: K. F. Shergina
  Russia: Public administration reform: Issues and Options
Speaker: Neil Parison
14.00–15.00 Lunch
15.00–17.00 Session III. Court reform
(Chairman: Ye. A. Kulkov)
  Judiciary protection of businessmen
Speaker: O. V. Boikov
  Contractual disputes: ways of their settlement
Speaker: A. A. Auzan
  Prospects of the administrative law development
Speaker: A. V. Fedosenko
17.00–17.15 Coffee Break
17.15–19.00 Session IV. Federalism and the role of local governance
(Chairman: Ya. I. Kuzminov)
  Economic and social reforms: controversies at the regional level
Speakers: V. N. Leskin, A. N. Shetsov
  Fiscal decentralization in Russia: Economic performance and reform issues
Speaker: E. Dabla-Norris
  Intergovernmental fiscal controversies
Speaker: Ye. S. Sapiro
  Budget federalism
Speaker: D. Sutherland
  Fiscal federalism in the Russian Federation: Problems and reform options
Speaker: A. M. Lavrov
  Decentralization of power and economic growth in Russia: What should a "strong center" be like?
Speaker: L. I. Polischuk
  Federalism dejure, regionalism de facto
Speaker: A. V. Butakov
19.00 Summing up
Thursday, April 6
13.00–14.00 Registration of participants
14.00–14.15 Welcoming remarks of Ya. Kuzminov
14.15–14.30 Representative of the Russian Federation Government A, Kudrin
(State University—Higher School of Economics)
14.30–14.45 Convenor of the section I Ye. Gavrilenkov
(State University—Higher School of Economics)
14.45–15.00 Convenor of the section II A. Shokhin
(State University—Higher School of Economics)
15.00–15.15 Convenor of the section III L. Yakobson
(State University—Higher School of Economics)
15.15–15.30 Convenor of the section IV Ya. Kuzminov
(State University—Higher School of Economics)
15.30–16.00 J. Linn (the World Bank)
16.00–16.15 Coffee break
16.15–16.45 I. Visco (Organization for Economic Cooperation and Development)
16.45–17.15 S. Fischer (International Monetary Fund)
17.15–17.45 Ye. Yasin (State University—Higher School of Economics)
18.00 End of plenary session
April 7, Seminar Program
10.00–11.45 Session I
  1. Should the thrust of reforms be continued, should the implementation of the designed measures be intensified, or should the course of reforms be reversed? How? The role of IFIs.
  2. Is it true that the main factor contributing to growth and higher efficiency is enterprises restructuring? How soon can direct and indirect subsidies be discontinued and fair and equitable competition be installed? How should economic deregulation be achieved? What is the role of regional authorities in streamlining competition?
  3. Barter and non-payments: underlying causes and impact on economic development. Is the inefficiency of the non-market sector the main factor supporting the barter-arrears economy? What measures should be taken to monetize the economy, inter alia, to address payments through off-shore zones and curb capital flight?
11.45–12.00 Coffee break
12.00–13.45 Session II
Structural reforms and institutions (continued)
  1. Banking system and financial markets. What should be the role of state and foreign banks in the Russian banking system? What is the future of Sberbank? What type of financial system is preferable for Russia? Does Russia need a national insurance system or would foreign insurance companies be sufficient once the insurance market is fully liberalized?
  2. What is the role of the government in economic modernization? What measures could facilitate anti-corruption efforts? What services could the government delegate to the private sector and on what terms? How important is the judicial reform and how to ensure the independence and accessibility of courts? Is there a need for vigorous industrial reform? Is there a need for a public service reform?
  3. How to reform natural monopolies in the short-term?
13.45–15.00 Lunch
15.00–16.45 Session III
  1. General macroeconomic issues and prospects, the link between macroeconomic issues and structural reforms. Should a decline in growth be expected as a result of the drop in energy prices and the diminishing effects of devaluation?
  2. How important is the elimination of the inefficient non-market sector in the real economy? How quickly should it be eliminated, or would a spontaneous restructuring be more preferable?
  3. Public debt and capital flight. Could capital flight be curbed over a short period to repay debts, or should there be a comprehensive debt restructuring scheme implying a partial debt write-off to allow Russia to revive its economy and pay out its debts?
  4. Fiscal issues and tax reform. Tax burden and public expenditures. The concept of tax reform.
16.45–17.00 Coffee break
17.00–18.45 Session IV
  1. Labor reform. Is there a need to set statutory wages and working hours? How to cut employment and dismissal costs?
  2. Pension reform. Would it be expedient to immediately introduce a funded payment system? How to provide incentives for employers to create a voluntary pension insurance system?
  3. Social support of economic modernization and structural reforms. How to ensure cooperation between business and the government in the social support of restructuring? How to ensure targeted social safety and increase the share of the poor in social transfers?
  4. Housing and utilities reform. How to accelerate the pace of reforms?
  5. What is the role of international financial institutions in the social support of modernization?

IFI Papers
Prakash Loungani and Paolo Mauro
Research Department, IMF
Capital Flight from Russia
Christian Mumssen
European II Department, IMF
Barter and Arrears in Russia: Principles of a Solution Strategy
Neil Parison , ECSPE, World Bank Russia: Public Administration Reform: Issues and Options
Alexander Morozov, ECSPE, World Bank
Mark W. Sundberg, SASPR, World Bank
Russia: Issues in Public Expenditure Policy
John M. Litwack, OECD
Douglas Sutherland, OECD
The Demonetisation of the Russian Economy: Causes and Policy Options
Aleksei Lavrov, Ministry of Finance,
   Government of the Russian Federation
John M. Litwack, OECD
Douglas Sutherland, OECD
Fiscal Federalism in the Russian Federation: Problems and Reform Options
Hjalte S. A. Sederlof, ESCHD
The World Bank
Russia: Note on Social Protection
Stilpon Nestor and Ms. Fianna Jesover,
OECD Principles of Corporate Governance on Shareholder Rights and Equitable Treatment: Their Relevance to the Russian Federation
James Roaf, European II Department, IMF Corruption in Russia
Mark Dutz, Steven Fries, Maria Vagliasindi
Promoting Competition and Entrepreneurship in Russia
William E. Alexander and David S. Hoelscher,
   Monetary and Exchange Affairs Department,
Michael Fuchs, ECSPF, World Bank
Banking System Restructuring in Russia
Csaba Csaki, ECSSD, Vera A. Matusevich,
John D. Nash, ECSSD
The World Bank
Agricultural Policy Issues for Russia
Era Dabla-Norris and John Norregaard
Fiscal Affairs Department, IMF
Jorge Martinez-Vazquez
Georgia State University
Fiscal Decentralization in Russia: Economic Performance and Reform Issues
Thomas Laursen (coordinator) European II
   Department IMF
Medium-Term Macroeconomic Outlook
Victoria Summers, Fiscal Affairs Department,
Tax Policy for Russia
Richard Highfield and Katherine Baer
Fiscal Affairs Department, IMF
Tax Administration for Russia
Itzhak Goldberg, ECSPF &
Alfred Watkins, ECSPF, The World Bank
Enterprise Restructuring
Jack Diamond, Fiscal Affairs Department
Public Expenditure Management
Harry G. Broadman—The World Bank Competition and Entry in Russian Industry

Papers by Participants from Russia
S.A. Vasiliev Overview of Structural Reforms in Russia after 1998 Financial Crisis
S.V. Aleksashenko Restructuring the Banking System: Possible Approaches
S.V. Aleksashenko The Monetary Policy: Is Normalization Really Achieved?
V.V. Radayev Major Vectors of Institutional Transformations in Russian Economy
A.V. Dvorkovich Shaping the real exchange rate of the ruble and its liaison with macroeconomic developments and budget indicators
A.V. Dvorkovich Macro "Issue Year 2000" and Medium-Term Financial Stability
A.V. Dvorkovich Prospects for Budget Implementation in 2000
L.I. Yakobson Development of Social Policy Strategies
Ya. I. Kuzminov On Corruption
Ye.V. Serova Proposals on the Agro-Industrial Sector Development Concept
A. Yakovlev Structural and Institutional Constraints on Economic Growth
Yu. A. Tikhomirov Reference Points for State Economic Regulation: Freedom and International Order, Section of International Conference, Investment Opportunities and Economic Growth Prospects in Russia
Yu. A. Tikhomirov On the System of Legal Support of the Economy
O.V. Viugin The Macroeconomic Policy
Ye. Gavrilenkov Russia's Economic Strategy
V.D. Mazayev The State Influence on Economic Relations in Russia (The State-Legal Aspect)
G.V.Minkh Constitutional Legal Grounds for Clarification of Subjects of Criminal Liability Intended to Combat Corruption
L. Grigoriev & A. Kasarev Capital Flight: Scale and Nature
Ya. I. Kuzminov Modernization of the State
L. G. Yefimova Once More on the Legal Identity of the Bank of Russia
Ya. I. Kuzminov; S.A. Belyakov, T.L. Klyachko & L.I. Yacobson The Condition and Prospects for Development of the Russian Education System
E.Sh. Gontmakher & V.V. Trubin Principals and Main Elements of Social Strategy
A. Ulyukayev Regional Economic Policy, Budgetary Federalism, and Interbudgetary Relations
D.V. Vasilyev Corporate Governance in Russia: Is there any Chance of Improvement?
M.E. Dmitriyev Should the Pension Reform Program be Changed?
M.E. Dmitriyev Key Elements of Reform in the Social Sphere other than Education and Culture
S.D. Shatalov Reform of the Tax System
M. Dmitriev Objectives, Principles, and Directions of Reform of the Labor Legislation in Russia
M. Dmitriev Economic Problems of Health Services System Reform in Russia