Cherednichenko, L. G., Gubarev, R. V., Dzyuba, E. I., & Fayzullin, F. S. (2020). Ways of Enhancing the Efficiency of Public Governance in Russia in the Context of Social State Development. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 17 (3), 530-545.
At the current stage, the main impediment to steady socio-economic development of Russia is its inefficient system of public governance. This article relies on methods of systems economics to describe a set of measures that would enhance the efficiency of governance in Russia and, as a result, stimulate the country’s socio-economic development. These measures are divided into the following groups: measures aimed at reducing the risk of corruption; measures to ensure the transparency of the staff recruiting process; measures for merit-based recruitment; performance-based remuneration; and socio-economic partnership. Except for the fifth group of measures (applicable only to commercial organizations), all of the above can be used in public governance as well as in corporate management. We believe that the cornerstone of the new system of governance in Russia should be the system of performance-based pay to top executives of state companies and civil servants. Such system does not contradict the concept of new public management since it takes into account both the international experience (it has a certain similarity with the Singapore model) and the specific characteristics of the Russian system. In order to identify the right amount of collective incentive payments to civil servants, it is necessary to adjust the optimal contract theory for state institutions. Nobel laureate Ronald Coase showed that such modification is possible through his transaction costs approach, which revealed a similar nature of transaction costs in commercial organizations and state institutions. The implementation of the new system of performance- based pay in regional executive government bodies can make Russian civil servants more interested in raising the quality of life in the regions; it will contribute to more efficient coordination of ministries, and, finally, it will help to establish a more rigorous control over government expenditures. It should be noted, however, that in order to achieve a qualitative improvement in the national system of governance, it is necessary to realize the whole set of the above-described measures.