3. Effective Governance – Weak
3.1 Democratic Representation
3.2 Lack of Corruption
3.3 Efficient Administration
In-Country Assessment Information


3.  Effective Governance – Weak

Goal – A popularly elected government free of corruption and functioning efficiently and transparently enough to guarantee economic freedom to individuals and support equitable property markets

back to top

3.1 Democratic Representation


Core Question: Does the country have free and open elections for the leadership and can citizens engage in free enterprise? No – Weak, there are many barriers that impede the full exercise of these rights by limiting the ability of individuals to influence elections.


3.1.1  Voice & Accountability Are citizens able to elect their government and do they enjoy freedom of expression, association and a free media? No – Very Weak – Percentile Rank –  22.5 Trend  

Source: Governance Matters  2011, World Bank,  Are citizens free to form political and civic organizations free of state interference and surveillance? No – Weak – Score  4.41 out of 10, there are practical restrictions on nongovernmental organizations.

Overall Ranking –  122nd  out of 167 – Weak Trend

Source: The Economist Intelligence Unit Democracy Index 2012

3.1.2  Public Information

Overall Ranking – Strong; Score 71 out of 100 (2010) Are there regulations governing conflicts of interest in the executive and legislative branches of government? Yes – Executive Score 53 out of 100 – Very Weak; Legislative Score 68 out of 100 – Weak, while the legal framework is strong, the actual implementation is very weak.  Can citizens access legislative processes and documents? Yes – Strong, Score 83 out of 100.

Source: Global Integrity Report


3.1.3  Market Intervention

Overall Freedom Ranking – Very Weak  139th out of 185 Trend To what extent does the government intervene in the private sector including state owned industries? Score  54.4 out of 100 with a higher score indicating less intervention. To what extent does the government control prices? Score  66.7 out of 100 with a higher score indicating less control.

Source: Index of Economic Freedom  2013– Heritage Foundation   



back to top

3.2 Lack of Corruption


Core Question: Is the public sector transparent and free of corruption? No –  Weak, while there has been some improvement, there is corruption throughout the government sector and corruption is still identified as a major restraint to business..



3.2.1   What is the perceived level of corruption in the country? Ranking –  133rd out of  176; Score  28 out of  100– Weak Formal Sector, Trend  ­

Source: Corruption Perception Index  2012, Transparency International


Integrity Mechanisms

3.2.2   A National Integrity System is a framework where the principle institutions that contribute to integrity, transparency and accountability in a society can address  corruption in a systematic way. Does a National Integrity System exist? No – Very Weak  

Source: National Integrity System Assessment, Transparency International


Extralegal Payments

3.2.3   How often do companies report that officials and/or companies expect additional payments to “expedite” services or gain business? 20.5% of firms say they are expected to make unofficial payments –  Occasional Occurrence –  Strong

Source: Enterprise Surveys 2012



back to top

3.3 Efficient Administration


Core Question:  Are quality services and qualified civil servants available to the public through the efficient use of public money? No – Weak, Public spending has been expanding, with little transparency or public accountability for expenditures.


Size of Government

3.3.1   What is the size of government relative to GDP?  39% – 25 to 30% considered optimum –Weak

Source: Index of Economic Freedom, Heritage Foundation


Civil Service

3.3.2   What is the quality of the civil service? Strong – Score 60 out of 100

Source: Global Integrity Report 2010


Government Effectiveness

3.3.3   What is the overall effectiveness of the government? Weak – Percentile Ranking –  42.2 Trend

Source: Governance Matters  2011, World Bank,



back to top

In-Country Assessment Information (as of February 2012)

FQ17 What is the actual experience of small businesses in dealing with the government, particularly the number and complexity of required procedures and the prevalence of extra payments to facilitate services such as licenses or permits?

The Constitution guarantees to every person the freedom of thought and the freedom of speech. In practice, however, the situation is different. There are many barriers that impede the full exercise of these rights. There are also practical restrictions on nongovernmental organizations and the media with regard to publishing information. The internet is the only platform for providing independent information. However, laws and regulations are currently being adopted that will enhance the transparency and regulation of government services.

For example, anti-corruption laws have been enacted. Government agencies have established special divisions to counteract corruption. However, violations of the law by officials of government agencies and local governments are still prevalent. The institutions of civil society are also getting involved in anti-corruption efforts.

The Law on Government Procurement of Goods and Services has made the procurement process transparent and accessible, including for small and medium-sized businesses. Procurement of real property is also covered by this law, and all information on prior and scheduled purchases is publicly available from electronic trading facilities.

Administrative reforms are being implemented. Government agencies at all levels are required to provide services in accordance with the administrative procedures that govern such services. The law requires that administrative procedures be adopted by August 1, 2012.


Source: The Chamber of Commerce and Industry of the Saratov Province



back to top