EVALUATING QUALITY OF GOVERNMENT REGULATORY ENFORCEMENT AND INSPECTION ACTIVITY FROM THE VIEWPOINT OF PRIVAT BUSINESS: KEY TRENDS

Abstract

Enhancing the government’s regulatory enforcement and oversight performance has been considered among critical measures aimed at improving the business environment in Russia; this makes the study relevant for the current governance agenda. The objective of this paper is to evaluate the dynamics of private businesses’ perceptions regarding the justified nature, efficacy, and efficiency of state oversight measures in 2017 – 2021. The subject of the study is the quality of state regulatory enforcement and oversight, including its rationality, efficacy, and efficiency. The key method used in this study is a representative sociological survey of private business entities conducted in 2021. The findings were then compared with those from similar surveys carried out in 2017 and 2020. The results presented in this paper include the analysis of businesses’ perceptions regarding all quality parameters of state regulatory and oversight interference (how justified, effective, and efficient it is). The study concludes that so far, the state regulatory system reform in Russia has not resulted in its performance being more effective (i.e., carrying lower risk of damage to the public values) or more justified. Notably, administrative costs borne by businesses due to state inspections have decreased due to a lower average cost per inspection as well as a reduction in the total number of inspections because of the anti-pandemic precautions, which included a moratorium on planned inspections of businesses. The novelty of the study has to do with the collection and analysis of new empirical data on how businesses assess the quality of the state’s regulatory enforcement and oversight activities. The recommendations based on the findings suggest the need for further improvement of both regulatory enforcement and state regulation proper. Both regulation and regulatory enforcement activities should focus more on minimizing the risks of damage to public values and on strengthening the positive impact of state oversight on supporting and improving the safety of business processes and production

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