#6
Vesti.ru
December 6, 2001
Freedom to Shopkeepers!
The state must solve Russia's perennial dilemma as to what to do with small
businesses - either to set them free or to ban altogether
By Laurenty Pugachev
(therussianissues.com)
The word "lavochnik" (shopkeeper) has long been considered in Russia an obscenity. The progressive intelligentsia disliked shopkeepers regarding them as an embodiment of evil, backwardness and dull stupidity. Indeed, shopkeepers were not oh so lovely guys, but when the progressive intelligentsia had suppressed them, nobody got any better off.
The old conflict is still going on. The intelligentsia now is called the state power, whereas shopkeepers are called the small business. They are treated somewhat better and are even allowed to create unions like the United entrepreneurial organizations of Russia (OPOR). They are even invited to the Kremlin to talk with the President.
At a recent meting with Vladimir Putin, co-chairman of the OPOR Dina Smekalova told the President that small business in Russia is still "a test object". The current state policy towards small entrepreneurs only prevents the business from growing. Curiously, the President took the lavochniks' - beg your pardon, small businesspeople's - complaints with compassion. He admitted that in regard to small and medium-size businesses, Russia has dropped far behind major market economy nations, which is a matter of serious concern for the leadership. The participants left the conference room very much enthusiastic and encouraged by the President's articulated concern.
As everybody knows small business is the foundation of any economy. Small business creates the majority of jobs and pays the majority of taxes. In principle, it should be the least dependent on a state bureaucrat's benevolence, budget subsidies and the like. All you need is non-interference in small business affairs. In reality, treatment of small business is a good sign of the state power's intentions. If the state power is vitally interested in boosting economy and creating a social stratum that demands nothing from the state but, on the contrary, just accurately pays taxes, then it must help small business. If not, then it should either ban small business or behave in such a way as to discourage anyone from starting his/her own business. But the latter option will bring no good fruit.
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