higher school of economics, moscow, 2011 logics of justification for state regulation in russia (a...

Higher School of Economics, Moscow, 2011

www.hse.ru

Logics of Justification for State Regulationin Russia (A Case of the Trade Law)

Maxim Markin

Laboratory for Studies in Economic SociologyHigher School of Economics, Moscow, Russia

[email protected]

11 Annual Aleksanteri Conference“The Dragon and the Bear: Strategic Choices of China and Russia”

11 November 2011


Process of Passing the Trade Law

Until 2006: the relationships of retailers and their suppliers had been taking place without any state interference

The end of 2006: public discussions about the necessity of the state regulation of Russian retail industry began

The middle of 2008: the idea of passing the trade law was put to the back burner

The beginning of 2009: the introduction of the trade law became an agenda item again

The middle of 2009: the process of passing the trade law started

The end of 2009: the trade law was passed


Research Problem

Until 2006 retailers and their suppliers had been solving the problem of coordination without any state interference

After 2006 the process became public and in 2009 the trade law was passed

But the problem was not solved

It is quite difficult to understand why the market actors who really wanted to come to an agreement could not do it


Main Hypothesis

While justifying their opinions business partners used different logics of justification and it was an obstacle for them to come to an agreement


Theoretical Basis

Market Industrial Civic

Mode of evaluation

(worth)Price Productivity efficiency Collective interest

Format of relevant

informationMonetary

Measurable criteria,

statisticsFormal, official

Elementary relation Exchange Functional link Solidarity

Human qualificationDesire, purchasing

power

Professional

competency and

expertise

Equality

Worlds of justification(L. Boltanski, L. Thevenot)


Logics of Justification for State Regulation


What is important? Competition Stability Equality

Who are

market actors?Competitors Business Partners Citizens

What do support?

and

What is supported?

Competition –

Effective companies

Stability –

Investments

Equality –

Solidarity

What do develop

the economy?Effective Companies Investments Solidarity


Methodology

The empirical data which include:

1. Mass Media publications (71 articles in 15 the most popular Russian journals, magazines and newspapers)

2. Transcripts of the discussions in the Russian Parliament (the first reading, the second reading and the final reading)

3. Seven interviews with market actors


Logics of Justification for State Regulation of the Trade Industry in Russia (1)


Aim 1to defend the

competition

to defend the

competitors

to defend the

consumers

Example of Arguments

It is necessary to defend

the market mechanism

of price making


small Russian

agricultural producers


poor Russian consumers

Aim 2to ensure the normal

functioning of markets

to ensure the stable

functioning of

enterprises

to ensure the equal

rights of market actors

Example of ArgumentsIt is necessary to ensure

the make-out of retailing

It is necessary to ensure

the investments in

innovations by

enterprises

It is necessary to settle

the conflict between

retailers and their

suppliers


Logics of Justification for State Regulation of the Trade Industry in Russia (2)


Aim 3 - -to ensure the food

security of the country

Example of

Arguments- -

It is necessary to

decrease the

dependence on the food

import in Russia


Logic of Justification for State Regulation of Market Actors

Retailers were against the trade law and they justified their opinion basing on the market logic

Suppliers being the main opponents to retailers supported the trade law and they justified their opinion basing on the industrial logic

The state had the most sophisticated opinion because different ministries and departments used arguments basing on different combinations of civic and other logics


Conclusion

The problem of coordination in Russian retail industry has appeared because retailers and their suppliers could not come to an agreement about some details in their relationships

They started to justify their opinions about the enactment of the trade law

The winners based on the sophisticated combination of the industrial logic and the civic logic

Thank you for your attention!

higher school of economics, moscow, 2011 logics of justification for state regulation in russia (a...

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