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Monday, February 19, 2018

An unexpected look at the corruption in Dagestan: “In the shade 70% of the economy»


What is behind the sensational arrests of senior officials in Dagestan — election window dressing or a long-term strategy against corruption? Will lead decisive action by the acting head of Dagestan Vladimir Vasiliev to the advancement of the population of this Caucasian Republic? An unexpected point of view on the events of Dagestan expressed known economist, doctor of Sciences, Professor Saleh Abdulmanap.


photo: Mikhail Kovalev

— Arrested Dagestani officials accused of embezzlement of funds allocated to the Republic from the Federal budget. We know that Dagestan is deeply subsidized region, the infusion from the center of the large, and the population however is in a difficult position. Antikorruptsionnye the current campaign will lead to a radical change in the situation?

In my opinion, it has little impact on the situation in Dagestan, as the economy of Dagestan to the minimum extent depends on the budget. Economics — separately, the budget separately.

— How can this be?

— 60-70% of the Republic’s economy are in the shadows. Accordingly, the impact of budget on this sector is minimal.

— What does “in the shadows”? They do not pay taxes?

– Not only the taxes. They do as economic agents do not pass. The turnover is there, but entrepreneurs in the sphere of trade. The total turnover in construction is increasing, and the taxes reduced. Similarly, in the sphere of wholesale and retail trade. There are entire mini-clusters at the regional level, making shoes, producing bricks, but they do not go anywhere, does not appear anywhere.

Even if not to affect agriculture, as there are private farms that are not economic agents, according to conservative estimates, due to the shadow sector wholesale and retail trade of the Republican budget loses more than 20 billion, with the construction sector — more than 8 billion. That is actually budget — separately, the government only regulates budgetary relations, and the economy.

— Why there is such a situation?

Entrepreneurs are not registered. But de facto they are the same someone something pay. The question is, to whom they pay money. Those who are behind this who are not in the competence of regional authorities. Because all of the controlling structure is a structure at the Federal level. Tax that other service.

— You want to say that they pay corrupt schemes, that is, roughly speaking, give a bribe?

— Yeah. The whole business of corruption schemes tied to regulatory agencies.

They pay these controlling structures?

— Naturally. No one has them so just rest will not leave. Even if you put a small stall, all about it will know.

— Who they pay, exactly?

In this scheme, involved the police and the tax service, and other control structures. And they influence in the country is minimal. They are controlled from the Federal center. Moscow assigns to the Republic the head of Department of any organization, and he is responsible for everything. He is not liable to the local authority.

People also benefit from this state of Affairs. The current acting head of the Republic has recently raised the issue that if people will pay taxes, then the welfare of the people of Dagestan will grow. It is also not entirely correct thesis that had put him in his mouth consultants.

What taxes paid by the population? Is the income tax, which is paid by the employer in the payment of employee salaries. The population is partly pays for the property, land and transport taxes. Him in arrears does not exceed one billion rubles. And this debt from year to year. This is lower than in Russia on average. The impact of taxes on the population on the budget and the economy is minimal.

— If the population pays taxes, who pays?

– Is the tax on individuals and legal entities of Business structure are actually in the shade. Someone they pay, but to whom, where it goes and what kind of schemes is still an open question. Of course, using a budget also have questions. But the impact on the economy, even those 7-8 government programs for economic crimes is minimal, if not negative. There is a subsidization of entrepreneurs.

We analyzed: those entrepreneurs who got the grant, only 24% remain on the market. The rest are just for certain schemes has withdrawn the money. Agriculture — the same picture.

Then have a hunt for corrupt officials in government will not lead to the improvement of the economic situation in Dagestan?

– No, it will not. If rashly to go to reduce the share of shadow sector in certain areas, it may even lead to the deterioration of the situation. Small producers, who are in the informal sector that is initially uncompetitive. They will not be able to compete with large manufacturers, especially those who massively supply products from China and other Asian countries.

You should start with the major producers, with large retail chains. But they are also affiliated with government agencies, with major officials. Someone someones. If to start with them, it is possible to do something.

— What you need to do to get the business out of the shadows?

— It is necessary that entrepreneurs trust the government. Then they will begin to be legalized, that is, stop paying someone who is in charge of them and the roof, and will pay officially in the budget. Ready today to the state system to deliver entrepreneurs more of the load in order to avoid double taxation — formal and informal? Take the transport sector. Drivers pay for logs, pay as individual entrepreneurs to pay extra for the route. And all they’re trying to pass on to the consumer. Or trade. Someone is the owner of the market, which raises money, and where they go nobody knows.

— And who the ultimate beneficiary of all the money collected?

Nobody knows and nobody can define.

Read the material: “Coup of General Vasiliev: why the Kremlin took over Dagestan»

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