CC BY
18
УДК 338.2
Mitrofanova A. G. IIyear student, Economic Faculty F. M. Dostoevsky State University
Russia, Omsk
THE INTERACTION OF BUSINESS AND GOVERNMENT IN RUSSIA
This workfocuses on studying and defining the modern models of interaction between business and government. This work identifies the characteristic features of the interaction model between business and government through business associations. In this working paper we analyze different approaches to the problem of interaction between business and government. The purpose of this work is to study interaction between business and government in Russia. (business, government, introduction, modern models, government in Russia)
INTRODUCTION
The formation of specific interaction models between business and government in Russia is one of the success factors in reforming the economical and political systems. As a consequence, better interaction leads to increasing economic growth, and also affects the efficiency of the political system. However, the formation of various models of interaction depends on the previous experience of the country. The existing political culture, social, economic and political institutions have influence on this process.
This work focuses on studying and defining the modern models of interaction between business and government. The fact that Russia is in a new stage of development aimed at better interaction between business and government proves the need in institutionalized cooperation, daily dialogue, and a system of a joint goal-setting and decision-making.
This work identifies the characteristic features of the interaction model between business and government through business associations. In this working paper we analyze different approaches to the problem of interaction between business and government.
The purpose of this work is to study of interaction between business and government in Russia.
The tasks of this work are:
• To consider the main provisions of communication between business and government.
• To show current models of interaction between business and government in Russia.
• To define the modern interaction between business and government in Russia
1. BUSINESS AND GOVERNMENT RELATIONS
Since businesses are strongly affected by public policies, it is in their best interest to stay informed about public policies and to try to influence governmental
decision making and public policy. There are different general ways that businesses view and act on their relationship with government. One perspective is for businesses to consider business and government on "two sides" and in opposition to each other. Some have argued that this was the prevailing dominant mainstream business view in the aftermath of the Great Recession at the end of the first decade of the twenty-first century. It has been characterized as the "antiregulatory" or "limited government" view, and it has been associated with those who believe that free markets with a minimal government role is best for the workings of the economy. This perspective most often focuses businesses' interactions with government on efforts to minimize government and reduce the costs and burdens on private business and the general economy associated with government taxes, regulations, and policies.
Another business perspective on government is that government should favor businesses and incentivize business performance and investment because businesses are the main source of jobs, innovation, and societal economic well-being, and therefore government should support businesses with grants, tax credits, and subsidies.
A third general view of businesses and government relations is with business in partnership with government in addressing societal matters. This is in contrast to government being the regulator to ensure businesses act in a socially responsible manner.
These views are not mutually exclusive. For example, the same solar business can use some of its interaction with government to try to maximize the benefits, such as favorable tax credits, it receives from government and at the same time work in partnership with government to achieve a social purpose, such as reducing carbon emissions, and then try to minimize its tax obligations [5].
Once a business has an understanding of how government affects their operations and profitability, it can formulate strategies for how best to interact with government. There are three general types of business responses to the public policy environment—reactive, interactive, and proactive.
Reactive responses involve responding to government policy after it happens. An interactive response involves engaging with government policymakers and actors (including the media) to try to influence public policy to serve the interests of the business. A proactive response approach entails acting to influence policies, anticipating changes in public policy, and trying to enhance competitive positioning by correctly anticipating changes in policy. For most businesses, a combination of the interactive and proactive approaches is the best approach.
In meeting challenges from nongovernmental organizations (NGOs) and the media, businesses may respond in a variety of ways, including the following:
• Confrontation. It may aggressively attack either the message or the messenger, and in extreme cases, business has felt justified to sue its critics for libel.
• Participation. Business may develop coalitions or partnerships with NGOs, as McDonald's did with the Environmental Defense Fund (EDF; see the
following discussion) or as Home Depot did with the Rainforest Alliance (see the following sidebar).
• Anticipation. Business may adopt issues management programs to forecast emerging issues and to adjust or change business practices in advance of the passage of stringent laws or regulations [4].
When business is in a reactive response mode, it most often engages in confrontation of its adversaries. When it assumes an interactive response mode, it participates in dialogues with NGOs and the media and develops partnerships or coalitions to advance new policies and programs. When business behaves in a proactive manner, it anticipates future pressures and policy changes and adjusts its own internal corporate policies and practices before it is forced to do so [1] 2. MODELS OF INTERACTION BETWEEN BUSINESS AND GOVERNMENT IN RUSSIA
The last stage of initial capital accumulation has started in the Russian Federation. The state of interaction, which could be characterised as a "bellum omnium contra omnes", as a result required the inevitable decisions on the creation of an institute of interaction between business and government. The game rules are established, interaction between business and government is legalised, and business structures are included in the advisory system at public authorities, which contributes to formation of a civilised dialogue between business and government. Today, there are all the signs of so-called intuitive business in the Russian Federation: there is an extensive character of development, active search and creation of new rules and procedures for business; very unstable internal and external business environment entails asymmetric and unstable relations based on personal relationships. Modern Russian business is in the process of lean entrepreneurship creation, which is characterised by: intensive character of development, standard formal procedures and rules forming the decision making basis, stable internal and external business environment, which consequently creates a stable and balanced relationship between partners in return for a consideration. Elements of such a business in the Russian Federation are only beginning to form. A lot of so-called "bad" laws appeared in the process of transition of the Russian Federation in the market economy, the execution of such laws leads to corruption. Execution of certain laws due to their inconsistency, and desire of officials not to be subjected to administrative or criminal liability while fighting corruption, creates criminal and administrative rules that could lead to a stop of production processes and retard the development of business [2].
There are many ways to classify models of interaction between business and government. Analysis of existing approaches in the process of empirical research allowed identifying and suggesting the author's classification of models of interaction between business structures and government.
Speaking about cooperation of business structures and government, it would be wrong to assume that business generally wants to get privileges from the state, and the state, on the contrary, wants to subdue the business completely. The problem is the way in which an effective communication and interaction should be built for
the further development and socio-economic modernisation of society. Clear, constant and transparent rules of the game have still not been set, as well as the conditions for a favourable investment climate have not been created, and existing legal framework does not guarantee inviolability of private property. It shows that by the condition, level and effectiveness, the interaction between business and government in the Russian Federation is not very different from the Russian relations model. It includes a relatively isolated area of interaction: white, black, and gray. With the "gray" zone quasi-legal relationship or semi-formal relations are usually designated, i.e. hidden, drawn out of the control of the authorities (tax, supervisory, judiciary, etc.)
To date, there is an unresolved (at the legislative level) issue of mandatory consultations with business on all matters affecting the business activities, as well as mandatory justification of the refusal of business association's position. it leads to the conclusion that today there is no completely integrated model of interaction between business and government in Russia. But these relations nevertheless have some distinctive characteristics [3].
We revealed the following interaction model:
• Partners model - cooperative partnership, with the predominant influence of the state.
• Coercion model - provides administrative pressure. Authority requires the business to make certain investments in the implementation of its social programs and projects.
• Engaged (symbiotic) model - involves merging business and government.
• Civilised model - certain foreign companies entering the Russian market acknowledge foreign principles of operation;
• System model - institutionalised relations primarily on issues common for the business community, through participation in Regulatory Impact Assessment and other forms of examination of draft strategic and regulatory provisions, membership in advisory, expert and working bodies of the President of Russia, the Government of the Russian Federation and other governmental authorities, the development of mechanisms of arbitration courts and mediation, etc.
• Pocket model - interaction through the "pocket" business associations, designed to protect a company.
• Dialogue model - interaction through forums, seminars, conferences, or when there are any entities (business association, business structure or industry), and representatives of federal and regional authorities, and they arrange a dialogue on the issue, as a part of an open public discussion.
• Conflict model - interaction with opposition business structures being in conflict with the authorities.
• Point-to-point model - when a particular business association, business structure or industry comes at a particular ministry lobbying for its interests. The above models may be present both at the federal and regional levels [8]
3. GOVERNMENT INTERVENTION IN BUSINESS
Governments intervene in markets to address inefficiency. In an optimally efficient market, resources are perfectly allocated to those that need them in the amounts they need. In inefficient markets that is not the case; some may have too much of a resource while others do not have enough. Inefficiency can take many different forms. The government tries to combat these inequities through regulation, taxation, and subsidies. Most governments have any combination of four different objectives when they intervene in the market [6]
Maximizing Social Welfare
Without regulation, businesses can produce negative externalities without consequence. This all leads to diminished resources, stifled innovation, and minimized trade and its corresponding benefits. Government intervention through regulation can directly address these issues. Another example of intervention to promote social welfare involves public goods. Certain depletable goods, like public parks, aren't owned by an individual. This means that no price is assigned to the use of that good and everyone can use it. As a result, it is very easy for these assets to be depleted. Governments intervene to ensure those resources are not depleted.
Macro-Economic Factors
Governments also intervene to minimize the damage caused by naturally occurring economic events. Recessions and inflation are part of the natural business cycle but can have a devastating effect on citizens. In these cases, governments intervene through subsidies and manipulation of the money supply to minimize the harsh impact of economic forces on its constituents.
Socio-Economic Factors
Governments may also intervene in markets to promote general economic fairness Government often try, through taxation and welfare programs, to reallocate financial resources from the wealthy to those that are most in need. Other examples of market intervention for socio-economic reasons include employment laws to protect certain segments of the population and the regulation of the manufacture of certain products to ensure the health and well-being of consumers.
Most businesses need to register with a state government to operate. Corporations need a charter, and other forms of businesses, such as limited liability companies or partnerships, need other forms of registration. The function of this registration is usually to define the financial liability the owners of the company have. It limits their risk to the amount they have invested in that particular organization. Registration also allows the government to monitor companies to execute its other functions in the business world.
Consumer Protection
The government's role in business includes protecting the consumer or customer. When a vendor fails to honor the guarantee, the purchaser has recourse in the law. Likewise, when a product causes harm to an individual, the courts may hold the vendor or manufacturer responsible. Labeling is another requirement the government imposes on marketers.
Employee Protection
Many state and federal agencies work to protect the rights of employees. The Occupational Health and Safety Administration, for example, is an agency under the Department of Labor. Its mission is to ensure a safe and healthful work environment. The Equal Opportunity Commission protects employees from discrimination. Taxation
Governments at all levels tax businesses, and the resulting revenue is an important part of government budgets. Some revenue is taxed at the corporate level, then taxed as personal income when distributed as dividends. This is in no way inappropriate, since it balances the tax burden between the company and individual and allows the government to tax more equitably [7].
CONCLUSION
How does the government intervene in business in Russia, is it the state regulation or self-regulation? Which one of the two could sooner draw a distinct line between lobbying and corruption? The answer to this question requires a reassessment of the key findings of the present research work:
The proper political culture of a healthy relationship between business and authorities has not developed in Russia yet, though some rare examples of ethical and corruption-free lobbying campaigns can be found in the State Duma due to the natural openness and transparency of the parliamentary process of decision-making.
Thus far the most significant problems for the successful interaction between business and government are the following:
- insufficient level of industry and managerial competencies;
- unreadiness of public authorities to the position of the business
community;
- the difficulty of communication, lack of understanding of colliding
interests;
- the opacity of decision-making procedures;
- corruption.
The analysis of the information studied in my work leads to the conclusion that today there is no completely integrated model of interaction between business and government in Russia. But these relations nevertheless have some distinctive characteristics.
Thus, during my work goals were discussed and tasks revealed.
Refernces:
1. Francis, John. (1993) The politics of regulation: a comparative perspective.
2. London, Blackwell. Frye, Timothy (2002) Capture or Exchange Business Lobbying in Russia. Routledge, Europe-Asia Studies, University of Glasgow.
3. Hrebenar, Ronald and Bryson, Morgan (2009) Lobbying in America: a reference handbook. California, ABC-CLIO.
4. Keynes, John (2004, first published in 1926) The end of laissez-faire: The economic consequences of the peace. New York, Prometheus Books.
5. Lehne, Richard (2006) Government and business: American political economy in comparative perspective. 2nd ed. Washington, D.C., CQ Press.
6. Luneburg, William and Susman Thomas (2005) The Lobbying Manual: A Complete Guide to Federal Law Governing Lawyers and Lobbyists. Chicago, Illinois, American Bar Association.
7. Mack, Charles (1997) Business, Politics, and the Practice of Government Relations. Westport, Quorum Books
8. Rutland, Peter (2001) Business and the state in contemporary Russia. Boulder, Westwiew Press, Pennsylvania State University
УДК 001.201
Shadrina A. K. student of 2 course, faculty of Economics Omsk State University named after F. M. Dostoevsky
Supervisor: Sergina S. A.
Russia, Omsk Шадрина А.К. студент 2 курса экономический факультет Омский Государственный Университет им. Ф. М. Достоевского
Сергина С. А. научный руководитель Россия, г. Омск ECONOMIC BEHAVIOR OF THE FAMILY
Sociology of family is a separate branch of the extensive science that researches family, its formation, development and functioning in various cultural, social and economic conditions. Family is a dynamic part of the society easily reacting to various social and economic changes.
Relevance of the studied issue is that family is a basis of vital activity of the society and it determines what the society will be like in a certain period.
The object has determined the following purpose of research: generalization of approaches to the description of models of economic behavior offamily.
Ключевые слова: economy, social institution, economic functions, models of economical behavior, modern family
A family as a subsystem of the society
The essence of the term "family" demands a close attention and research. On the one hand, family is a complex social formation, which is in a tight connection with other social institutions. On the other hand perceiving family as a small social group is determined by the regularities of formation, functioning and disintegration of family as an independent social unit.
The family is generally regarded as an important social institution and a locus of person's social activity. It is a social unit created by blood, marriage or adoption, and it can be described as nuclear or extended [2].
