Results of our studies

MOSCOW, December 21, 2007 Russian Public Opinion Research Center (VCIOM) upon request of Russian Union of Industrialists and Entrepreneurs (RSPP) presents information on what attitude Russian entrepreneurs have towards the demands that the different society layers express to review the outcome of privatization, how they estimate the extent to which law protects private property in contemporary Russia and the chances that they have to stand upon their rights.

More than half of entrepreneurs (58%) find it necessary to make a compromise in order to meet the demands of the different society layers and politicians regarding review of the privatization results, i.e. to reanalyze the results of part of the transactions carried out with violations of law. Those who consider it inadmissible to doubt the competency of the present owners of the privatized property constitute no more than a scarce minority (17%). Therese are, primarily, owners and heads of large and middle-size companies, whose interests can be the first to be infringed on in case of revisions of privatization results (19-20%, cf.:12% in the small business sector). However no more than 15% of businessmen are ready to face the new total split-up which may occur as a result of the system revision of privatization results. Representatives of small business adhere to this assertion more often than others (18%, cf.: 14% in sector of middle-size and large companies).

The majority of business-community representatives (62%) are not yet willing to share the point of view that there exists a civilized attitude to private property in Russia nowadays. (More or less) optimistic estimations of this factor are less numerous and only account for 15%. 20% of entrepreneurs believe that the attitude towards private property in the society is partially civilized and partially not. The average score of the development of the civilized attitude in the society to private property amounts to 3.08, where 7 was the highest score.

The integral index of how businessmen estimate the extent to which law protects private property in contemporary Russia is still lower: 2.94 points out of 7 (11% gave more or less positive estimations of safety level, 16% provided average estimations, whereas 65% gave more negative ones). In other words, entrepreneurs consider the legislative base that private property in Russia rests on, to be less developed than the actual social relations that are developing in the society in respect to private property. Thus, the smaller the subject of business is, the less confidence its owner or head has that the property right resides under the solid protection of law; it is in the small business sector that the value of the average score of estimations regarding the safety level of private property reaches its minimum (2.8 points out of 7).

Nevertheless, the majority of businessmen consider the law and applying to court to be the main defenders of their rights (78%). Such ways of self-defence, turning to executive bodies, mass-media, self-activity, are today in the middle distance in the list of possible actions that businessmen may take in case of infringement of their rights (18-35%).

Thus, the willingness of businessmen to apply to court is quite high in case of infringement of their legitimate rights by other businessmen or individuals (86%), however, it radically decreases, if their hypothetical counterparts happen to be authorities (54%). At the same time, the share of those who will not try to stand upon their rights if the defendant will not be another businessmen, but governing institutions, increases fourfold: from 11 up to 40%. Owners and heads of small businesses are especially pessimistically disposed as far as lawsuits against governing institutions are concerned: 44% of respondents among them will not even try to stand upon their legitimate rights in this case.

The unwillingness of many businessmen to apply to court if the defendant there will be a governing institution, instead of other businessmen or individuals, rests on the assertion that the rule "All are equal before the law" does not work in Russia. 59% of respondents think that a company like theirs does not really have high chances of winning a lawsuit against authorities, or does not have any chances at all. And only 31% estimate their chances positively. However, when it comes to standing upon their rights against other businessmen just like they are, chances of a victory look quite optimistic: +82%,-12%.

Cases of unfair competition among businessmen occupy the first place in the uncommon rating of infringements of legitimate rights in business (60% of respondents have experienced them during the last 2 years). The second and third places belong to infringements of the rights of businessmen exercised by authority - indirect, by giving preference to certain companies (39%), and direct ones (28%). 17% of businessmen have encountered cases of corporate raids, every tenth Russian enterprise has become object of violence and threats from criminal groupings, whereas 2% admitted that were repeatedly exposed to them.

The survey of 1200 Russian businessmen (owners and top-managers of private companies) was carried out in September - October 2007 in 40 constituent entities of the Russian Federation. The selection represents the enterprise community according to branch affiliation (based on three macro branches, i.e. the industry and construction; transport and communication; service and trade) and is proportional to their share in the national economy and the size of the enterprises (according to the number people employed).

 

What is your attitude to the demands that the different society layers and politicians place about reanalyzing the privatization results?

 

Total respondents

Representatives of small business

Representatives of medium business

Representatives of large business

My attitude is positive

15

18

14

14

One should only reanalyze the results of part of the transactions carried out with violations of law

58

59

56

57

My attitude is very negative

17

12

19

20

I have a different opinion

2

2

2

3

Hard to say

8

9

9

6

Do you agree with the assertion that there exists a civilized attitude to private property in Russia today? (estimation given based on the scale from 1 to 7, where 1 means I do not agree at all, and 7 means I totally agree)*

 

Total respondents

Representatives of small business

Representatives of medium business

Representatives of large business

I do not agree at all

16

15

18

13

2

21

19

21

21

3

25

28

21

26

4

20

17

21

23

5

10

10

10

9

6

3

3

4

3

7 - I totally agree

2

3

2

3

Hard to say

3

5

3

2

*Average score = 3.08  

How would you characterize the extent to which law protects private property in contemporary Russia?
(estimation given based on the scale from 1 to 7, where 1 means very low level, and 7 means very high level)**

 

Total respondents

Representatives of small business

Representatives of medium business

Representatives of large business

1 - Very low level

17

19

17

14

2

20

23

18

20

3

28

25

29

30

4

19

22

18

16

5

9

6

10

11

6

2

2

2

3

7 - Very high level

0

1

1

0

Hard to say

5

2

5

6

** Average score = 2.94 

How could a company like yours protect its rights? (up to three responses)

It could apply to court

78

It could turn to the local, regional executive bodies

35

It could turn to mass media

21

It could make use of self-activity

21

It could turn to federal executive bodies

18

It could turn to social organizations of entrepreneurs

8

It could turn to other entrepreneurs

6

It could turn to criminal structures

2

It could turn to representatives of public organizations abroad

1

Other option

1

There are no effective ways that a company like ours could use in Russia nowadays to protect its competitive rights

4

Hard to say

3

Do you think that most of entrepreneurs in the region will or will not apply to court if their legitimate rights were infringed by?..

 

Governing institutions

Other Entrepreneurs, Individuals

Yes, most definitely so

12

30

Yes, more likely so

42

56

Most likely not

36

10

No, most definitely not

4

1

Hard to say

6

3

Do you think that most of entrepreneurs in the region will or will not apply to court if their legitimate rights were infringed by governing institutions?

 

Total respondents

Company status

Small

Medium

Large

Yes, most definitely so

12

12

11

13

Yes, more likely so

42

38

45

42

Most likely not

36

39

34

37

No, most definitely not

4

5

3

3

Hard to say

6

6

7

5

What chances do you think a company like yours might have to stand upon its interests in the court of law if its opponent were?..

 

Other entrepreneur (company, organization)

Regional and local administration

The chances are high

29

6

The chances are rather high

53

25

The chances are not really high

11

45

There are practically no chances

1

14

Hard to say

6

10

Has your company experienced cases of ... during the last 2 years?

 

Yes, many times

Yes, 1-2 times

No, we did not

Hard to say

Unfair competition from other businessmen

24

36

34

6

When representatives of authorities in the region give preference to certain companies

13

26

47

14

Infringement on your company's legitimate rights exercised by the authorities

5

23

63

9

Corporate raids (Seizure of other people's business)

4

13

75

8

Violence and menace exercised by criminal groupings

2

8

82

8


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