The Russian Chamber of Commerce and Industry (RCCI) joined forces recently with CIPE and the American Chamber of Commerce in Russia. The three organizations held a policy forum, a call for action to resolve Russia's ongoing economic policy impasse. Some 150 people attended the November 13 event, including representatives from six regional chambers of commerce and industry, the Federation Council, Russia's Ministry of Trade and Ministry of Economics, and the Russian and American private sectors.
Opening remarks were made by RCCI's Vice President, Sergei Katyrin, and Scott Blacklin, President of the American Chamber of Commerce in Russia.
Blacklin highlighted the goals of the conference. "What we hope to achieve," he stated, "is first, a fuller understanding of the environment in which we are working; second, a view to those windows of opportunity that have opened since August; and third, a better grasp of the ratio between risk and opportunity in the Russian market today." Conference participants generated a variety of recommendations in the following areas:
The Banking System - Continued economic development and foreign and domestic investment require rapid and sustainable measures to restore confidence in the banking system and a stable, convertible ruble. Practices affecting banking, panelists urged, should be transparent, predictable, and non-discriminatory.
Movement of Capital and Goods - While regulations must be strengthened to restrict improper business practices, panelists agreed, it is essential that their structure and enforcement should not suffocate legitimate commerce.
Energy - Investment in Russia's energy sector would have a substantial multiplier effect on the economy. Panelists noted that this sector has the capability to drive the country out of its present financial crisis by providing employment and increasing demand for associated equipment and materials. Large-scale foreign and domestic investment in this sector should occur once Russia has passed and implemented a long-awaited with effective implementation of product-sharing legislation.
Taxation - The imbalance in the national budget, panelists agreed, is a direct consequence of insufficient tax revenues. The government must adopt a simple, transparent, and effective tax system to bolster investor confidence and the viability of Russian businesses.
These recommendations were discussed throughout the Russian private sector, in local and regional chambers of commerce and industry, and were approved by the RCCI Board on November 24, 1998. They were then incorporated into RCCI's official "Address to the Government" on measures for stabilizing Russia's social and economic situation.