BUSINESS MAIN POINT — DON'T INTERFERE

We set up the well-known one-window registration system. Thus, Kazan became the only city in Russia where practically anyone can register an enterprise within 24 hours in one place, without leaving the registration window, saving time and, we might as well admit it, lots of bribes. Now, it can be done right here, at the ground floor

BUSINESS MAIN POINT — DON'T INTERFERE

The world statistics has it that only 7% of the planet population are able to deal in any kind of independent, creative activity, i.e. to paint, play music or do business.

Alexander Sergeyev, General Director of Enterprise Development Agency in the Republic of Tatarstan, appears to stay firmly within those 7%, and he does not just do business himself, he also helps others. As to success of his activities, they talk about that in the Administration of Tatarstan President: well, and you are saying we've got nothing to be proud of. The same is evidenced by the fact that in October 1999 Alexander represented Tatarstan at the All-Russian Congress of Entrepreneurs. Last year, he was rated by the magazine Expert among four hundred best Russian managers.

— Alexander, your agency is concentrated on support of small business in the republic. What is that support specifically?

— My personal position is as follows: business should not be supported at all, but it should not be interfered with. Business is not a disabled person, there are quite independent people working there. As to our Agency, let us start with the Republican Interdepartmental Commission on Economic and Social Reforms that was set up in 1998. I think it was for the first time ever that it was joined by both officials and some republican businessmen. In one of its lines, the Commission dealt with regulation of business-related issues. Then and Expert Council was attached to the Commission. It covered issues of entrepreneurial activities in the region. I was the Council Chairman for slightly longer than two months. That was shift work, with fast rotation of the staff. Maybe that is why so much was done. In January 2002, the Enterprise Development Agency was established. It is a State institution with a staff of 50 (30 persons in Kazan, and the rest are over the republic). It is intended to have two more Republican Support Centers — in Naberezhnye Chelny and in Almetievsk. One of the principal tasks of the Agency is legal protection of entrepreneurs. We have already maintained contacts with the Antimonopoly Committee. Our lawyers can stand for the entrepreneurs there using power of attorney, and they can protect their interests in court proceedings. Of course, except the cases when they apply to court for their commercial issues, that is business. Position of the Agency is as follows: don't pull the blanket that is purely commercial, so that not to take the bread from a similar structure that is actually commercial. In Kazan, nine lawyers work in the Agency.

— What else do you deal with?

— We also deal in gathering data on major problems occurring in business community and file a package of suggestions to the authorities for their regulation. That is, the problem is conceptualized, and suggestions are made to the City Administration or the Government. For instance, we had a problem with business registration. A special commission was gathered, it outlined certain provisions, and the result was that we set up the well-known one-window registration system. Thus, Kazan became the only city in Russia where practically anyone can register an enterprise within 24 hours in one place, without leaving the registration window, saving time and, we might as well admit it, lots of bribes. Now, it can be done right here, at the ground floor. Cool? At the start, nobody believed in this idea of ours.

— You know, the republican authorities are very proud now that the idea has been put into service.

— Let us hope that the rest of Russia will follow our successful experience. Besides, recently the President issued a decree on setting up a unified auction center in the republic. Currently, auctions are held by around six centers, and nobody knows for sure where they are held or what the rules are. Nobody knows what kind of income goes to the budget at that. So we brought together all the negative material concerning the situation (that is, where, by whom, and in what amounts bribes are taken), suggested options in solution of the problem, suggested the President that a single auction center should be set up, with clear regulations for its operation, and that is what has been carried out. The main point is to make this area of business as legal and transparent as possible. Now, having analyzed the situation in the republic, we submitted our ideas concerning land auctions and suggestions on modifying the regulations for the auctions held in the Republic of Tatarstan. Naturally, our project was met with extreme hostility. On the one hand, there are forces that do not want it to be implemented, and on the other hand, some people want to implant their own guys into the newly established structure. On the whole, everything is as usual. Let's wait and see.

Our next large project is to set up a technical innovation park. Everybody knows that Tatarstan and Kazan is a unique region with numerous technical educational institutions remaining from the Soviet times. In 1989, I graduated from A.N.Tupolev Kazan Aviation Institute. Moreover, students of the Moscow Aviation Institute study by the books written by our faculty. By now, Tatarstan has accumulated a powerful potential in new technological designs that cannot be found anywhere else in the world, but which have not been implemented so far. Naturally, that occurs because of lack of appropriate financing, as well as due to wrong allocation of the available budget: all the cash is directed to higher education, where, as a rule, the money is cared for by someones relatives or friends. Therefore, young and independent researchers with their good alternative ideas are practically unable to get through. Such a situation is typical for the whole of Russia. We suggested that a defense plant that does not work now, where there are several sites with minimum equipment, should be converted into a technical innovation park. The point is to pull resources, including venture capital, and let alternative researchers work in the innovation park, including students having some promising ideas, so that they should be able, while claiming their ideas, to obtain all the necessary technical facilities for their implementation. A special council should make up their minds whether to grant the facilities or not; half of the council will be researchers, and the other half should be businessmen. Let us hope that the republican authorities would support us, and the idea will be implemented. Many countries of the world allocate lots of cash precisely for the advance of science and technologies. Is our republic any worse?

Our idea has not been taken out of the air. Today, within the framework of my company, I am developing a number of such projects as much as I possible can. Some of the projects cannot be found anywhere in the world. They are purely commercial, and they are being put into practice now. In this particular case, we could do without any grants or financial credits. But it is only the Government of the Republic that can help us in extending the project broadly.

— Are they aware in the Government of the Republic of the social significance of your ideas?

— Well, the Government is, first and foremost, concrete persons. We feel absolutely support at the level of the Premier or the Cabinet of Ministers, but further on, in implementation of the projects, and therefore in allocation of concrete cash, quite certain interests start to clash — the interests of those who had the facilities some time before and those who need them right now for implementation of the above-mentioned projects. For instance, most of higher educational institutions will be against our innovation park. Earlier, they managed the money and, by the way, never reported for it. The money was given to them for the implementation of a project, but nobody was interested in actual results. What we suggest is a system where specific deliverables should be put out, and if there is no output, a new researcher will arrive with a new idea to take your place. Not upon consent of the Scientific Council of a higher educational institution, but upon consent of the Council that includes non-interested parties. Therefore, under the circumstances, it is important whose ideas would win and produce, in the last analysis, greater influence upon the republican authorities.

— You've got many diplomas confirming success of your business, but I cannot find any diploma from Tatarstan.

— That is exactly what I mentioned: its no good when someone interferes with businessmens work. I've been working in this sphere for over ten years, and I gathered sufficient experience in interaction with state authorities. Heres, for instance, an authors certificate for one of my projects. I'm happy that it has been put into practice. I'm not happy because it was not in Russia. Americans did it. Let us hope that the situation will start being amended.

— Is that why you haven't moved abroad yet?

Within the past two years, I saw off many friends of mine abroad. I went to see them there, and, of course, it is hard to come back here. On the one hand, one can get maximum profit. On the other hand, one can risk the invested money like nowhere else. So far, I still want to change something in this country, in this republic. When it disappears, and my enthusiasm is gone, then I think it will be necessary to see where my business should be done.

— Let us hope it will never happen.

— Let us hope so. Because being a businessman, I see that the present Presidents of Tatarstan and Russia at least want to change something. That is what is worth a lot.

Mikhail DOVZHENKO