Evaluation of the competitiveness and the business environment in Russia.

Abstract

In this report we examine aspects of the competitive and business environments of the Russian Federation by analyzing competitiveness and the ease of doing business capacity using data derived from published sources. Theoretically, the thesis is based on both current distinguished research-publications: Global Competitiveness Report (World Economic Forum) and Doing Business (World Bank), therefore presenting a gauge of Russian’s Federation national economy in comparison and giving special attention to the Economies of the Black Sea Region, EU27, China and USA. Concurrently, the study summarises and critically evaluates the existing advantages and disadvantages existing in these areas of the Russian economy while adding potential hypotheses for further and desirable improvement. We examine the competitiveness profile of Russia, 2001-2013 outlining the main competitiveness drivers and barriers based on hard and survey data compiled for the Global Competitiveness Project of the World Economic Forum, organized around twelve competitiveness pillars. We also estimate how easy is to start a business not only in the country but also in comparison with the rest of the Black Sea countries calculated by the data of the ten pillars of Doing Business Index. The World Economic Forum (WEF) says in “The Global Competitiveness Report 2012-2013” that the Russian Federation, at 67th place, drops one position since last year. “A sharp improvement in the macroeconomic environment—up from 44th to 22nd position because of low government debt and a government budget that has moved into surplus—has not been enough to allow the country to compensate for the poorer assessment of its already weak public institutions (133rd) and the innovation capacity of the country (85th this year, down from 57th in the 2010–2011 edition of the GCI),” runs the report. Russia’s position is almost twice below the EU27 average according to the results in the global ranking.