1. International Videoconference, sponsored by the Russian Ministry for Economic Development PRESENTATION Development of Competition and Growth: International Lessons 2011 MINISTRY OF COMPETITION POLICIES AND TARIFFS OF THE KALUGA REGION

2. Program Goal – to promote competition in the Kaluga Region by developing a favorable environment to support the emergence of new entrants and improved growth of the existing players in the regional markets of goods and services Program Objectives: 1.To reduce existing administrative barriers and infrastructural constraints in Kaluga regional markets of goods and services. 2.To enhance transparency of the regional government. 3.To remove the constraints currently affecting the development of competition in regional markets of goods and services in certain sectors of the regional economy.

3. Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long-term earmarked programs) Actual performance Share of total respondents to the business survey who believe that the competitive environment has improved over the last year, in % - in wholesale trade 30% 22% The survey samples in the previous years do not coincide with the sample in 2010 KalugaStat In retail trade 50%46% - in construction 20%5% Share of total respondents to the business survey who believe that the regional and local authorities have reduced their anti- competitive actions over the last year, %, including: - In wholesale trade 25%-KalugaStat - in retail trade 20%6% - in construction 20%6% Development of competition in the Kaluga Region in 2010-2012

4. Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010,, Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance Share of on-line open public procurement auctions in total auctions, % Share of on-line open public procurement auctions in total auctions, % 95% 95%62% The share of on-line auctions dropped from 98 percent to 62 percent as a result of the legislative ban as of 01.07.2010 to hold on-line auctions using regional trading facilities. The region piloted 361 on-line auctions using the federal trading facility. Pursuant to the law, the regions should start on-line government procurement auctions according to the new procedure only from January 1, 2011 Regional Ministry for Competition Policies and Tariffs Development of competition in the Kaluga Region in 2010-2012

5. Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance Share of individual and corporate appeals via the on-line reception desk of the official regional government gateway, registered in the on-line SADKO system of legally significant electronic documents, in total appeals, % 5% 5%6%Overshooting Administration of the Kaluga Region Governor, division for administrative support and handling complaints and appeals Development of competition in the Kaluga Region in 2010-2012

6. Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010,, Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance Proportion of operational agricultural consumer cooperatives in their total number, % 62% 62%63,8%overshooting Regional Ministry of Agriculture Development of competition in the Kaluga Region in 2010-2012

7. Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010,, Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance Share of newly developed agricultural and agricultural cooperative retail markets in total operating agricultural and agricultural cooperative markets, % 17% 17%20%Overshooting Regional Ministry for Competition Policies and Tariffs Development of competition in the Kaluga Region in 2010-2012

8. Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010,, Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance Share of food products by local producers in total sales, by groups of similar products on sale in retail chains of federal and interregional level, total, %, including overshooting Regional Ministry for Competitive Policies and Tariffs - Bread and breadstuffs 50%70% - Milk and dairy products 20%30%Overshooting - meat, sausage, meat products 40%55%Overshooting Development of competition in the Kaluga Region in 2010-2012

9. Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010,, Performance assessment***) Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance **) Oil products concentration in the regional market (%) 51% 51%52,58% The oil products retail market within the geographical borders of the Kaluga Region is moderately concentrated Kaluga Regional FAS Development of competition in the Kaluga Region in 2010-2012

10. Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010,, Performance assessment Source of data underlying performance assessment ) Indicator Target, initially approved by a respective regional law (regional government resolution on long-term earmarked programs) Actual performance Number of self- regulatory organizations, providing residential block management services 1 11 In line with the target Ministry for Construction, Housing and Utilities Development of competition in the Kaluga Region in 2010-2012

11. Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long-term earmarked program and subprogram in 2010,, Performance assessment Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long-term earmarked programs) Actual performance Share of residential blocks where the owners have opted for managing their dwellings through partnerships of dwelling owners or housing cooperatives, % 7,66% 7,66%7,11 Undershooting of the target for “the share of residential blocks managed by partnerships of dwelling owners” is due to the amendments to Federal Law № 185-FZ “On the Housing and Utilities Reform Fund" as regards reversing the obligation by municipal authorities – recipients of financial support from the Housing and Utilities Reform Fund (government corporation) to increase the share of residential blocks managed by owner partnerships to 20 percent Ministry for Construction, Housing and Utilities Development of competition in the Kaluga Region in 2010-2012

12. Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Targets and results indicators to measure implementation of the long- term earmarked program and subprogram in 2010 Performance assessment***) Source of data underlying performance assessment Indicator Target, initially approved by a respective regional law (regional government resolution on long- term earmarked programs) Actual performance **) Share of private general education institutions in total pre-school and general education institutions, % 2,6% 2,6% 2,51 Weaker performance in 2010 results from the reduction of the number of non- governmental educational institutions (industry-sponsored pre-schools given over to the municipalities, discontinued licenses for educational services) Regional Ministry for Education and Science - Share of educational institutions specifically tailored to develop individual abilities in total general education institutions, % 4,4%4,1% Development of competition in the Kaluga Region in 2010-2012

13. Development of the business climate in the Kaluga Region: looking forward  The World Bank’s Doing Business survey  Diagnostics of the current environment for starting and doing business in the Kaluga Region  Development and implementation of further activities with regard to the findings of the survey

14. = THANK YOU =