Legal and Organizational Problems of Industrial Development in the Russian Federation

Abstract :

In modern Russia steps have been taken towards regulating industrial production. However, the development of industrial business in the Russian Federation still faces numerous problems, among which are the following:

- lack of effective financial and credit mechanisms, material and resource support of the industrial sector development;

- gaps in the current legislation;

- ?complexity of access to business information - information about the product, competitor, etc .;

- unresolved issues arising from protection of the rights of workers employed in industrial business;

- instability of an economic situation in the country;

- dishonesty of big business;

- access to credit resources and a high rate of lending;

- lengthy paperwork, especially on land, etc.

Persons carrying out activities in the industry also note the problem of too high tax rates, the complexity of the tax system, the complexity and imperfection of legislation that registers enterprises that regulate their activities, for example, product certification, licensing and so on. Obstacles to business are called “administrative barriers” [1].?Leaders of industrial companies consider the imperfection of state regulation to be the main problem in doing business.?Many managers of chemical enterprises also note the imperfection of state regulation. Manufacturers are concerned with high electricity tariffs and industry taxes, which negatively affect the industry.?Equipment manufacturers are in need of government funding, subsidies and investments. They, along with enterprises in the chemical industry, consider government funding the most attractive [2].?In our opinion, the law “On Industrial Policy in the Russian Federation” is too general. It lacks specificity both regarding the order of reflecting ?development priorities of domestic industry and regarding the forms of its support. The disadvantages include the following:

- in the goals and objectives of industrial policy there have nowhere been reflected how the state will specify the priorities of domestic industry development ?and what, in fact, will be understood as priorities. This is not even fixed in the basic concepts with which the law operates. In our opinion, these priorities should include individual sectors (intersectoral complexes), as well as forms of territorial organization of the industry, which are designed to ensure the country's competitiveness and dominance in specific foreign markets;