Among the bills approved on July 2, 2002 by the Duma, the lower house of the Russian Parliament, was a comprehensive reform of small business taxation. With exemptions from value-added tax, sales tax, property tax, and social insurance taxes, small businesses will receive a substantial reduction in their tax burdens.

The Russian government is in the process of further extending its tax reforms. A first step was the introduction of a 13% flat tax on personal income, which took effect in 2001. Now the Russian government is planning to simplify and reduce the tax burden on small businesses.

"genetic resistance is where we want to go." But this definitive solution has been made hugely expensive and impractical by regulatory obstacles erected by the Environmental Protection Agency (EPA).

The Russian government plans to hold a meeting on September 27, 2001, to explore several ideas to reform Russia's banks. If the Russian government and its international advisers are really serious about banking reform, they can start by reviewing the relative merits and demerits of existing proposals.