Joining the OECD: pros and cons

On 23 May, 2013 the RF Ministry of Economic Development hosted an expert workshop “Russia’s joining the OECD: evaluating possible consequences”. The workshop was moderated by Vladimir Tkachenko, director of International Organisations Department of the Ministry of Economic Development, and Leonid Gokhberg, first vice-rector of the HSE and director of the ISSEK.

Russia’s joining the OECD – one of the most authoritative international economic organisations – is considered a priority objective of the RF government’s foreign policy. The high probability of this event was confirmed by statements by the RF President and the OECD General Secretary. Russia’s joining the WTO, and a significant progress achieved during negotiations with the OECD’s committees and working organs, create conditions for accelerating the integration process.

However, joining this organisation won’t be possible without amending the national legislation to match the OECD standards. Accordingly, Russia needs to weigh all pros and cons, specifically to define, firstly, the costs and risks associated with joining and the initial period of membership in the OECD, and secondly, the long-term benefits and advantages of being a member in this organisation. It’s very important to outline steps to be taken to ensure efficient and productive cooperation with the OECD in the long term.

In discussion on these issues took part representatives of the RF Ministry of Economic Development, Ministry of Justice, Ministry of Natural Resources and Environment, Ministry of Labour and Social Protection, Federal Accreditation Service, Ministry of Education and Science. The participants‘ contributions were largely based on the results of the study conducted by the HSE experts and presented during the workshop.

Several “sensitive” sectors have been identified in the course of the study, changing which either seems to lack a reliable foundation, might lead to conflicts with the OECD, or result in a negative effect to Russia.

The “controversial” sectors primarily include the ecology: in the OECD member countries the accent is largely placed on development and application of preventive steps to protect the environment, while Russia concentrates on managing the consequences of polluting it. There are certain problems with turnover of chemicals (due to mismatching methodologies for evaluating their properties). In the area of corporate management and public administration, conflicts may arise regarding protection of minority shareholders’ rights and interests, due to insufficiently developed monitoring and audit systems. The negotiators will have to solve a number of problems which arise due to differences in taxation systems, insufficient resources to participate in the export crediting programme and international investment projects, and to less-than-perfect information security system. The Russian side has serious objections regarding the recommendations on fighting corruption proposed by the OECD experts.

Still, in most of the areas the situation with harmonising Russian laws and law-enforcement practices was evaluated as “favourable”. And it’s not marred either by reservations regarding the relatively high costs of joining the OECD voiced by certain experts, or by fears regarding possible “politicising” of the process.

Summing up the workshop discussions, Vladimir Tkachenko, the RF government spokesman at negotiations on joining the OECD, confidently stated that despite the fact the dialogue with the OECD wasn’t always impartial and involves certain problems and risks, we must continue to move on towards integration – and to use expert support provided by the HSE, now not so much regarding joining the OECD as about being a member in this organisation. “We must get ready to a very big and serious job”, concluded Vladimir Tkachenko.

Leonid Gokhberg, first vice-rector of the HSE, stressed that the experts recruited into the project to evaluate possible consequences of joining the OECD were highly motivated to present the actual benefits the study brings to the federal government agencies. The subsequent Russian membership in the OECD involves the need to process huge volumes of data generated in the course of the organisation’s current activities, particularly the ongoing expert discussions. Still, positive effects of Russia’s joining the OECD certainly justify the required effort. The HSE’s first vice-rector assessed the possible benefits not only in terms of political dividend, but as real gains to the national economy.

Here’s just a few benefits from cooperating with this organisation: access to its expert and analytical potential, and the world-class expertise; upgrading of Russia’s status as an economically developed, democratic country; extension of partnership relations with the OECD member countries, and more.

By Maria Glazyrina, second year student, Faculty of Law, probationer at the HSE Web portal’s news service

The original text is published at the HSE web portal