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This country note from Going for Growth 2017 for the Russian Federation identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
A major challenge facing the Republic of Buryatia, subject of the Russian Federation, is how to balance the task of protecting Lake Baikal – a unique water object and ecological system included in the UNESCO list of World Natural Heritage Areas – with the need for dynamic and sustainable socio-economic development of the republic. This requires streamlining and improving water policy jointly with economic, administrative, information and other policy instruments. The recommendations in this report aim to help achieve this objective. They include the introduction of abstraction charges for irrigation water as a natural resource; enhancement of state support to the water sector; and improvement of economic instruments for managing risks of water-related hazards (such as compulsory insurance and differentiated land tax rates in flood prone areas). A few innovative instruments are also recommended for pilot testing such as establishing limits for discharges of certain hazardous substances in a pilot area (e.g. Selenga river basin) and progressive development of market for tradable quotas for discharges of the “capped” pollutants; and introducing a charge (tax) on toxic agricultural chemicals (pesticides, herbicides, etc.) and synthetic detergents so that to create incentives for the reduction of diffuse water pollution.
Achieving strong growth in the global economy remains elusive, with only a modest recovery in advanced economies and slower activity in emerging markets, according to the OECD’s latest Interim Economic Outlook.
This paper examines the use of two forms of non-standard work contracts in Russia with data from an enterprise survey for the years 2009 to 2011. Non-standard work contracts are less costly and more flexible for employers. Internal adjustment in form of wage cuts or unpaid leave is not covered by the Labour Code and earlier practices to impose such measures are less tolerated.
Since 1995 when OECD began conducting Economic Surveys of the Russian Federation many policy recommendations relating to structural reform and framework conditions have been made.
Russia faces very large challenges in modernising its large transport system. Promoting competition in the transport sector is essential, in particular by effectively opening the railway freight market to independent operators.
Reducing the role of the state in the economy and WTO membership should be viewed as opportunities to strengthen competition, and hence provide incentives for productivity improvements, which are urgently required to ensure stronger growth in Russia because of a shrinking labour force.
The labour market in Russia is very flexible. This results in a high and stable overall employment rate, but also high wage inequality, informality and labour turnover, which limits incentives for firms to invest in human capital and productivity improvements.
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This country note from Going for Growth 2015 for the Russian Federation identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Russia has demonstrated good resilience during the financial and economic crisis, though the speed of convergence has been lower than in most BRIICS countries, and growth has slowed more recently.