CC BY
47Research article UDC 339
doi: 10.47576/2782-4586_2022_2_13
AVAILABLE METHODS OF JUDGING CONFLICTS IN B2G, G2B, AND G2C MARKETS IN MODERN RUSSIA
Umyarova Anna N.
Adygea State University, Maykop, Russia
Abstract. The purpose of the work is to study the available methods of conflict resolution in B2G, G2B, and G2C markets in modem Russia and to determine the perspectives of application of alternative methods that are popular in the world practice. The authors use the method of regression analysis for determining the dependence of the values of the life quality index and annual growth rate of GDP in constant prices on the values of the index of development of e-government in Russia. As the index of development of e-government is calculated every two years, for the purpose of representativeness of the selection of statistical data the timeframe of the research covers not only 2008-2018 but also the forecast period of 2020-2022. The information and analytical base of the research includes the materials of the United Nations, Numbeo, and the International Monetary Fund. It is determined that due to forming market relations in economy, modem Russia is peculiar for specific reasons of emergence of conflicts in B2G. G2B, and G2C markets (e.g., insufficient control over execution of state orders, and insufficient responsibility of government workers for the provision of services to population and business). Dealing with these reasons requires application of new alternative approaches to conflict regulation in B2G. G2B, and G2C markets - public monitoring of execution of state orders and creation of the system of insurance of risks that emerge in B2G markets. Due to absence of the necessary telecommunication infrastructure, the initial stage of the process of formation of the e-govemment system does not allow for full-scale application of this alternative approach to dispute resolution in G2B and G2C markets (which is popular in the world practice) in modem Russia. It is substantiated that e-govemment is the only perspective alternative to regulation (prevention) of conflicts in these markets. That's why for its effective application it is recommended to develop the telecommunication infrastructure, which is stimulated by establishment of the digital economy in Russia.
Keywords: methods of conflict resolution; markets B2G; G2B; G2C; e-govemment; modem Russia.
For citation: Umyarova A. N. Available methods of judging conflicts in B2G, G2B, and G2C markets in modern Russia. Journal of Monetary Economics and Management, 2022, no. 2, pp. 13-19. doi: 10.47576/2782-4586_2022_2_13.
ДОСТУПНЫЕ МЕТОДЫ РАЗРЕШЕНИЯ КОНФЛИКТОВ МЕЖДУ БИЗНЕСОМ И ГОСУДАРСТВОМ, ГОСУДАРСТВОМ С БИЗНЕСОМ И ГОСУДАРСТВОМ С ПОТРЕБИТЕЛЯМИ НА РЫНКАХ СОВРЕМЕННОЙ РОССИИ
Умярова Анна Николаевна
Адыгейский государственный университет, Майкоп, Россия
Аннотация. В статье анализируются методы разрешения конфликтов на рынках бизнеса с государством, государства с бизнесом и государства с потребителями в современной России и определяются перспективы применения альтернативных методов. Автор использует метод регрессионного анализа для определения зависимости значений индекса качества жизни и годового темпа роста ВВП в сопоставимых ценах от значений индекса развития электронного правительства в России. Поскольку индекс развития электронного правительства рассчитывается каждые два года, в целях репрезентативности выборки статистических данных временные рамки исследования охватывают не только 2008-2018 гг., но и прогнозный период 2020-2022 гг. Информационно-аналитическая база исследования включает материалы ООН, ^тЬео, Международного валютного фонда. Определено, что в связи с формированием рыночных отношений в экономике современной России свойственны специфические причины возникновения конфликтов между бизнесом и государством, государством с бизнесом и государством с потребителями на рынках (например, недостаточный контроль за исполнением госзаказа, недостаточная ответственность государственных служащих за оказание услуг населению и бизнесу). Борьба с этими причинами требует применения альтернативных подходов к урегулированию конфликтов бизнеса с государством, правительства с бизнесом и государства с потребительскими рынками - общественного контроля за исполнением госзаказа и создания системы страхования рисков, возникающих у бизнеса с государственными рынками. Из-за отсутствия необходимой телекоммуникационной инфраструктуры начальный этап процесса формирования системы электронного правительства не позволяет в полной мере применить этот альтернативный подход к разрешению споров между государством и бизнесом, государством и потребительским рынком в современной России. Обосновано, что электронное правительство является единственной перспективной альтернативой регулированию (предотвращению) конфликтов на этих рынках. Поэтому для ее эффективного применения рекомендуется развивать телекоммуникационную инфраструктуру, чему способствует становление цифровой экономики в России.
Ключевые слова: методы разрешения конфликтов; рынки B2G; G2B; G2C; электронное правительство; современная Россия.
State is one of the main subjects of economic activities, the role of which transforms and becomes contradictory in the context of the modem market economy. On the one hand, state preserves the traditional function of regulation of economic activities and provision of state services, which, under the influence of the marketization of economy, leads to formation of market relations in this process and formation of G2B and G2C markets.
This means that state services are provided to population and business on the commercial basis. Consumers set high requirements to services - observation of the set dates of their provision and quality, an inseparable component of which is the level of service (convenience and attitude). In its turn, state, as the supplier of services, sets a price for services not only depending on services' cost but also depending on demand for them and on consumer value.
On the other hand, intensive development of business, deficit of the federal budget, and growing public requirements to effectiveness of state management contribute to the development of outsource during provision of public benefits. The traditional monopoly of the state, which leads to deficit of public benefits and non-optimality of the process of their provision due to inflexibility of state management, is replaced by competition of private business, which is allowed to provide public benefits by the conditions of state order.
Thus, B2G markets appear and expand; in these markets, state represents interests of consumers (population and business) and is a customer of public benefits, and private business is the executor, providing these benefits on the conditions of commerce. As state is a guarantor of payment, private business structures compete for the possibility of receiving state orders, which allows reducing the cost of provision of public
benefits with their set volume and quality that are envisaged in the order.
An inevitable phenomenon in B2G, G2B, and G2C markets consists in conflicts of interested parties. They could be caused by objective (e.g., technical failures) and subjective (i.e., "human factor" during provision of services and change of consumer preferences when receiving them) reasons. Priority and significance of these markets for functioning and development of modem socio-economic systems emphasize the importance of studying the conflicts that arise in them and the methods of their resolution.
A special scientific and practical interest is presented by experience of functioning of B2G, G2B, and G2C markets in the countries with emerging market economy (these include Russia) - as in these countries the incomplete process of establishment of market relations
causes high risk of emergence of conflicts in the given markets. The purpose of the Chapter is to study the available approaches to conflict regulation in B2G, G2B, and G2C markets in modem Russia and to determine the perspectives of application of alternative methods that are popular in the world practice.
Specifics and experience of developed countries in conflict resolution in B2G, G2B, and G2C markets are studied in detail in the works Al Marzooqi et al. (2017), Bogoviz et al. (2018), Gorla and Chiravuri (2016), Hashim et al. (2017), Inshakova et al. (2018,2019), Klievink et al. (2018), Santa et al. (2018), Sukhodo- lov et al. (2018a,b,c). A preventive practice that precedes the alternative methods of conflict resolution in the given markets in modem developed countries is development of the e-govemment system. Popularity of this method is so high that
TABLE 1 - Dynamics of the Index of Development of e-Government, Index of Life Quality, and Index of Growth Rate of
GDP in Russia in 2008-2022
Indicators and Their Values
E-Covernment Development Index, Points 0-1
Quality of Life Index, Annual growth rate of Points 0-200 GDP in constant prices, %
Year X У, Уз
2008 0.512 97.530 5.248
2010 0.514 54.860 4.504
2012 0.735 -7.390 3.518
2014 0.730 23.020 0.718
2016 0.722 86.530 ^0.248
2018 0.797 107.340 1.444
2020 Forecast 0.880 133.155 1.500
2022 Forecast 0.972 165.178 1.500
Source: compiled by the authors based on United Nations (20I8), Numbeo (20I8), International Monetary Fund (2018).
the global ranking of countries as to the level of development of e-govemment has been compiled in recent years.
The existing scientific economic literature notes sustainable and vivid positive effects from development of the system of e-govemment, connected to optimization of the B2G, G2B, and G2C markets in developed countries, which provide such advantages as increase of population's living standards and acceleration of economic growth. Not only theoretical
conclusions but also empirical data are provided. However, the prospects for the application of this preventive practice, which precedes the alternative methods of conflict resolution in B2G, G2B, and G2C markets in developing countries and countries with forming markets, including modem Russia, and gaining the advantages by the interested parties, are understudied.
The method of regression analysis is used here for filling the gap in the system of the existing scientific knowledge. Dependence of the values
of life quality index and the index of annual growth rate of GDP in constant prices on the values of the index of development of e-govemment in Russia is determined. As the index of development of e-govemment is calculated every two years, for provision of representativeness of the selection of statistical data the timeframe of the research covers not only 2008-2018 but also the forecast period of 2020-2022. The initial data are given in Table 1. Based on regression analysis of the data of Table 1, we obtained the following results (Table 2).
The data from Table 2 show that modem Russia is not characterized by statistically significant dependence of population's living standards and economic growth on the development of the e-govemment system. In order to determine the reasons of low effectiveness of application of this preventive practice (which is successfully used by the developed practice) in the B2G, G2B, and G2C markets in modem Russia, a qualitative analysis of conflicts in these markets is performed (Table 3).
As shown in Table 1, the reasons of emergence of conflicts in B2G markets include insufficient control over the process of execution of state orders and lack of involvement of society in this process. The object of the conflict (the problem
due to which the conflict arises) is deficit, inaccessibility, or low quality of provided public benefits.
Conflict could be manifested in hidden (without mass discussion) or open (with mass discussion) dissatisfaction, reports to law enforcement (legal action), and requirement for compensation of losses. Negative consequences of conflicts in these markets consist in reduction of population's living standards. State and population are interested in conflict resolution. The reasons of impossibility of conflict resolution include liquidation of business that performed state order and practical impossibility for compensation of losses.
The reasons of emergence of conflicts in G2C and G2B markets include high load of government workers and insufficient control over them and their responsibilities. The object of conflict (problem due to which the conflict arises) is untimely or low-quality provision of state services or their inaccessibility (due to geographic location, low service, and high cost), which do not allow purchasing them or make them unprofitable for interested parties.
Conflicts arise in the same way as in B2G -however, the requirement for compensation of
TABLE 2 - Results of Regression Analysis of Dependence of the Life Quality Index (y,) and Growth Rate of GDP (y2) on the e-Government Development Index (x) in Russia in 2008-2022
y,w
y2(x)
Characteristics Estimate values Conclusions Estimate values Conclusions
Model of paired linear regression y ,=—45.94 + 175.38*x Dependence is direct y =8.22-8.12*x Dependence is reverse
Significance F 0.21 Regression equation is statistically insignificant at the level of significance a = 0.05 0.06 Regression dependence is statistically insignificant at the level of significance a = 0.05
Coefficient of determination R2 0.24 Connection is weak 0.46 Connection is moderate
Source: calculated by the authors.
losses is inaccessible due to the absence of contract. Negative consequences of conflicts include slowdown of the rate of development of business. Population is interested in conflict resolution in G2C markets, and business is interested in conflict resolution in G2B markets. The reason for impossibility of conflict resolution consists in the deficit of financial resources with the state, imperfection of the judicial system, and
inflexibility of the state machine.
A specific feature of conflicts in B2G, G2B, and G2C markets in modem Russia is that their reasons cannot be fully eliminated even in the mid-term. That's why alternative methods (and preceding preventive practices) are aimed at resolving conflicts, not at preventing them. The following preventive practices are offered:
TABLE 3 - Characteristics of Conflicts in B2G, G2B, and G2C Markets in Modern Russia
. . . , Market at Which Conflicts Emerge Characteristics of -—
Conflicts B2G G2C G2B
Reason for emergence • Insufficient control, • High load of government workers;
of problem • Non-involvement of • Insufficient control and responsibility of
society. government workers.
Object of conflict • Deficit, • Untimely or low-quality provision of state
(problem due to which inaccessibility, or services;
the conflicts arises) low quality of public • Inaccessibility of state services.
benefits
Manifestation (essence) • Hidden (without mass discussion) or open (with mass discussion)
of conflict dissatisfaction;
• Reports to law enforcement (legal action);
• Requirement for compensation of losses.
Negative consequences Reduction of population's living standards Slowdown of the rate
of conflict of development of
business
Parties that are State, population Population Business
interesting in conflict
resolution—buyers/
consumers
Reasons of Liquidation of Deficit of financial resources with the state,
impossibility of business, deficit of imperfection of the judicial system, inflexibility
conflict resolution financial resources of the state machine.
Source: compiled by the authors.
FIGURE 1 - Alternative Approaches to Conflict Resolution in B2G, G2B, and G2C Markets and Preceding Preventive
Practices in Modern Russia.
- Development of the e-govemment system: probable reasons of low effectiveness of application of this method in modem Russia include insufficient development of the telecommunication infrastructure, and overcoming this barrier will allow increasing the accessibility and guaranteeing high quality and service during provision of state services;
- Institutionalization of the practice of public
monitoring and control over execution of state orders: unlike the developed countries where the state controls execution of their orders, in Russia it is necessary to involve the interested parties, which envisages not only inspections but also requirements regarding elimination of violation of state orders' terms;
- Introduction of the system of mandatory risk insurance in B2G markets: in order to prevent the
liquidation of business for the purpose of avoiding responsibility, it is offered to form a reserve fund for financing the conflict resolution in B2G markets—though it will increase the barriers for entry to these markets, it guarantees provision of public benefits in full and required quality with strict observation of the set terms.
The logic of application of preventive practices which precede the alternative methods of conflict resolution in B2G, G2B, and G2C markets in modem Russia is shown in Figure 3.1.
As shown in Figure 3.1, development of the system of e-govemment allows preventing conflicts in G2C and G2B markets; public control and monitoring contribute to conflict resolution in B2G markets; and the system of risk insurance allows providing financing for regulation of these conflicts from the reserve fund. Thus, complex application of the offered preventive practices which precede the alternative methods of conflict resolution in B2G, G2B, and G2C markets, allows optimizing the work of these markets in modem Russia and ensuring growth of population's living standards and acceleration of the rate of economic growth.
In the course of the analysis, it was determined
that due to forming market relations in economy, modem Russia is characterized by specific reasons of emergence of conflicts in B2G, G2B, and G2C markets (e.g., insufficient control over execution of state orders, insufficient responsibility of government workers for provision of services to population and business). In order to deal with these reasons, it is necessary to apply new (for the world practice) alternative approaches to conflict regulation in B2G, G2B, and G2C markets: public monitoring of execution of state orders and creation of the system of insurance of risks that emerge in B2G markets.
Due to absence of the necessary telecommunication infrastructure, the initial stage of the process of formation of the e-govemment system does not allow for full-scale implementation of this alternative approach to conflict resolution in G2B and G2C markets (which is popular in the world practice) in modem Russia. However, this method is the only perspective alternative of resolving (preventing) conflicts in these markets. That's why, it is recommended to develop its telecommunication infrastructure for its more effective application, which is supported by formation of the digital economy in Russia.
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Information about the author UMYAROVA ANNA N. - Adygea State University, Maykop, Russia
Информация об авторе
УМЯРОВА АННА НИКОЛАЕВНА - Адыгейский государственный университет, Майкоп, Россия
