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The nineties are back: the FAS spoke about the economic “separatism” regions of Russia

Девяностые вернулись: ФАС рассказала об экономическом "сепаратизме" регионов России

Economic problems threaten national security, believed the office

The manifestations of the so-called economic separatism are growing in the Russian regions due to the effects of the crisis, according to the Federal Antimonopoly service (FAS) of the Russian Federation. Protectionism in Russia flourished in the 1990-ies, and now the problem arose again.

The situation is described in the report of the Antimonopoly Agency, the content of which relates to RBC. In this economic separatism is defined as an extreme form of regional protectionism, where local authorities create incentives for “their” producers, and others are prohibited.

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Such separatism is characteristic, for example, for agriculture, production and trade of alcoholic beverages. Power “individual subjects of the Russian Federation” establish a verbal or written ban on the import of goods suppliers from other regions, and failures are often unfounded. Sometimes that was not the territory of another entity to market participants refuse to grant, and local grant privileges. FAS as example results in the Orenburg oblast.

On the one hand, regional authorities is the ability to replenish local budgets and to implement the import substitution program. On the other, it spoils the business environment and distorts competition.

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According to experts FAS, this “separatist” practice in Economics “is a threat to the economic integrity and national security of the state”, says RBC.

Regional programme Director of Independent Institute for social policy Natalia Zubarevich, however, urges not to call the phenomenon of “economic separatism”: the behavior of the authorities – an attempt to somehow fill up regional Treasury at the current debt and budget deficit.

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