Home  Journals  National Interests: Priorities and Security  29(266) - 2014 August

Improvement of local government: strengthening the role of constituent entities of the Federation, financial assistance to municipalities (property relations)

Available online: 29 July 2014

Subject Heading: Priorities of Russia

JEL Classification: 

Pages: 2-13

The article defines the nature and content of a new phase of local governance. This development is connected with the Federal Law "On Amendments to Article 263 of the Federal Law "On General principles of organization of legislative (representative) and executive bodies of state power of constituent territories of the Russian Federation" and the Federal Law "On General principles of local self-government in the Russian Federation" of May 27, 2014 № 136-FZ. The paper discusses the expected enhancement of the role of the constituent entities of the Russian Federation in the organization of local self-government and providing of the financial assistance to municipalities on the basis of local government. This measure will help to reduce the administrative barriers in the economy and to transform the Russia into a country with low level of corruption. The author points out that the regulation of property relations in the municipal sector should be focused on applying the principles enunciated in the Concept of long-term economic development of the Russian Federation for the period up to 2020, namely in the section "Interaction of the state, private sector and society as subjects of innovative development". The section states that the state in its relations with business entities in order to ensure the transition to innovative development of socially-oriented state will be guided by the following principles: the creation of conditions for free enterprise and competition; the development of self-regulatory mechanisms of business community; reduction of administrative barriers in the economy and transforming Russia into a country with low level of corruption; creating conditions for mass establishment of new private companies in all sectors of the economy, together with the business work to enhance the social status and the importance of entrepreneurship and ownership; elimination of excessive government regulation of the economy and the transition to predominantly indirect methods of regulation of economic processes; gradual reduction of state involvement in the management of the property in the competitive sectors of the economy through the use of transparent and effective privatization procedures based on the principles of market valuation, equal access to property and the openness of public authorities.

Keywords: local government, constituent territory, Russian Federation, economy, administrative barriers, corruption, draft federal law, municipal

References:

1. The Budget Code of the Russian Federation of July 31, 1998 № 145-FZ. (Revised on December 28, 2013, with amendment from February 03, 2014, as well as with alterations and additions, which came into legal force since January 01, 2014). (In Russ.)
2. Decree of the Government of the Russian Federation “State program of Management of the Federal Property” of April 15, 2014 № 327. (In Russ.)
3. European Charter of Local Self-Government: adopted by the Congress of Local and Regional Authorities of Europe of October 15, 1985 ETS № 122, Strasbourg. Available at: Link.
4. Decree of the Government of the Russian Federation “Concept of long-term socio-economic development of the Russian Federation for the period up to 2020” of November 17, 2008 № 1662-r.
5. Federal Law “On General principles of local self-government in the Russian Federation” of October 6, 2013 № 131-FZ. (In Russ.)
6. Federal Law “On General principles of organization of legislative (representative) and executive bodies of state power of the constituent territories of the Russian Federation” of October 6, 1999 № 184-FZ. (In Russ.)
7. Federal Law “On Combating corruption” of December 25, 2008 № 273-FZ. (In Russ.)
8. President’s Message to the Federal Assembly of the Russian Federation of December 12, 2013. Available at: Link. (In Russ.)

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