KNOWLEDGE MANAGEMENT IMPLEMENTATION IN RUSSIAN LOCAL GOVERNMENT – NOTHING IS IMPOSSIBLE

Valeriya Utkina[1]

Abstract

Modern resources-based economy transformation to knowledge-based innovative type requires originally new administrative decisions at every stage of Russian governance. In recent times various business strategies implementation in public administration practice on federal and local levels have become wide spread: management by objectives, outsourcing, benchmarking, etc. However turbulence with social and economic instability forces researchers to find ways of public administration optimization. My objective therefore is the knowledge management implementation in local government structure.

Nowadays a lot of efforts are being made in Russia to modernize public administration with the help of e-government. However, all reported goals in federal program “E-Russia” have not been achieved. If we make a brief review over the situation in Russia, we will see that nowadays we have controversial issues in the sphere of local government transformation to digital era.

To raise the local government efficiency in Russia knowledge management system for local government was worked out. In terms of public administration knowledge management is a set of processes, practices and ideas, which are collected, stored and reused in order to improve governmental effectiveness, efficiency and transparency and to reduce corruption as well.

Created knowledge management system for Russian local government consists of four main elements:

(1) "The knowledge management concept for local government bodies of the Russian Federation" − a declarative document, fixing main regulations.

(2) "Learning municipalities" − executive and administrative bodies of local government, in which civil (municipal) servants create, disseminate and preserve knowledge.

(3) "Knowledge culture" as the basis of "learning municipality", including "corporate memory", creativity, creation of the necessary conditions and the use of IT (including "e-municipality” construction).

(4) Inter-municipal cooperation, providing the connection between "learning municipalities", exchange of knowledge, best practices and experiences between them.

Implementation of separate elements of knowledge management to local government reveals the following topical matters: lack of technology/web staff, financial resources and technology/web expertise. On the basis of this investigation some profound recommendations were developed for shaping knowledge-based municipalities in Russia.

1.Introduction

As in many other countries, also in Russia the process of authority transfer to local government level continues. That consequently leads to an increase in the number of functions and responsibilities of municipal employees. The increasing complexity of the external environment requires adequate measures in order to act faster and better. And the question arises how to optimize the performance of local authorities and to improve management processes. So, the aim of this paper is to investigate the possibilities of the most useful up-to-date business-strategy. One of the possibilities could be the use of Knowledge Management and its implementation to local bodies. The goal is to investigate what hurdles and possibilities local governments in Russia face in order to increase the use of KM. This is an argumentative paper based on the recommendations found in the scholarly literature on knowledge management.

Russia is greatly inferior to a number of major players in terms of development of the knowledge economy. In the annually published by the World Bank competitiveness in the knowledge economy ranking, Russia today is only the 55th place, being in the same group with developing countries such as Qatar (54th), Ukraine (56th) and Macedonia (57th place).

The position occupied by Russia in the world ranking in terms of the knowledge economy development cast doubt the target state program "Information Society" (2011 - 2020 years) to be succeeded. Today the program is represented as one of the priorities for Russian public administration. At the same time optimistic seen a major breakthrough, which, according to the same report of the World Bank has made by Russia as compared to 2000, moved up to nine points.

Besides, taken in the last decade policy towards modernization and innovative development one can conclude that Russia is extremely controversial and has not brought the expected results. In many ways, that happened due to the lack of response of local communities and the absence of communication between the government and citizens. It seems that to cope with these problems is possible by developing local government in order to start all the best practices from the "bottom". As stated in the Strategy Program of the Russian Local Governments Council: "Local government is the drive belt, which ensures that any strategy of the federal and regional authorities are brought to the lowest level to the people"[2].

Knowledge management is a relatively new trend in Russia. It uses successfully knowledge management in the developed countries in private and public sectors as well as in non-profit organizations. However, there are also examples that are indicative for the fact that today Russia as a whole is in transition to the knowledge-based economy. Though successful experience of knowledge management in Russia can already boast such business giants as JSC "Russian Railways", JSCo; "Gazprom", JSCo "Norilsk Nickel", "Lukoil", JSCo "Sberbank", Rosatom, Rosgosstrakh, Rosneft, Urasib, Airport "Domodedovo ", and such educational institutions as MESI, MIRBIS, etc.

No matter what the true position of Russia, the use of Knowledge Management for public administration in Russia is a new trend. That’s why to create the frame work and to study all the weaknesses and possibilities of it is of paramount importance today. the present study will discuss the nature of knowledge management in public administration, then move on to the peculiarities of the local government in Russia. Then, efficiency criteria of local government bodies to develop while implementing knowledge management system will be identified and created system of knowledge management for Russian local government will be discussed. Taking in account all the challenges provided by this process we will concluded with recommendations.

2. The Nature of Knowledge Management in Public Sector

As far as the development of knowledge management theory in Russia is concerned G.Marinko divided the main approaches to knowledge management in four areas:

1. IT approach, which pays special attention to any technology solutions that allow you to store and distribute information to the company. "Knowledge management is the systematic capture, storage and reuse of professional experience and knowledge» (Ernst & Young).

2. Organizational approach defines what the organization structure should look like in order to maximize its efficiency in knowledge management processes. "Knowledge management - management actions aimed at using information assets» (Lotus Development).

3. An ecological approach focuses on the communication of people, including their interaction and circulation of knowledge as a single system.

4. A combined approach combines the accents above.

At the same time, D. McNabb (in the context of the public administration) narrowed the understanding of knowledge management to two approaches: the technocratic and sociological, pointing out that "it is still a subsection of general management, which is on the developing stage."[3] In present study it is appropriate to use combined approach with critical organizational component. In turn, P. Editor has identified the following factors that contributed to the early introduction of knowledge management elements to governmental structures[4]:

1. Legislative and organizational guidelines that encourage funding and staffing for the modern information system development.

2. International and domestic legislation: the law on the freedom of access to information, the law on the privacy protection, etc.

3. Initiatives to create e-government projects.

4. Information security issues that require attention not only at the state level, but also in the private sector.

5. Initiated by the rapid development of the Internet demand for access to information resources.

6. The emergence and rapid spread of virtual trade organizations and virtual employees, the effective activity of which is possible only with ordered knowledge management usage.

Thuswise in the paper it’s necessary to use the definition formulated by McNabb[5]:

Knowledge management is a set of processes, practices, and management philosophies that exist to collect, process, store, and make available the organizational knowledge that enables government agencies to be more proficient and competitive in the delivery of public services.

3. Local Government in Modern Russia

The history of local government formation in Russia has deep roots. There and then it is appropriate to talk about the development of ancient traditions in the contemporary socio-economic conditions. Today it can be considered the first phase of local government reform is completed. The main aim of which – well-balanced integration of municipal institutions in the structure public administration as well as the development of the municipal regulatory framework – was reached. At this point the Federal Law of October 6, 2003 № 131-FZ "On General Principles of Local Self-Government in the Russian Federation" should be motioned. This law regulates all the aspects of local governing in Russia, but endures multiple changes in the part of the local issues establishment for municipalities of each species (settlements, municipal districts and urban districts ).

As far as typical Russian local government Body is concerned we can list types of activities under main dimensions:

·  Local finance;

·  Electricity, heat, gas and water supply;

·  Security. Maintenance of public order;

·  Tutorship and curatorship;

·  Sport, leisure, culture;

·  Education, honey. assistance;

·  Urban Planning, Land Use;

·  Public services and amenities. Ecological issues.

Separately we should mention the problem of local governments staffing, which deserves further study. This issue is seen as a multi-level. Today there are not enough high schools to train municipal employees in Russia, not developed a mechanism of young professionals adaptation and professionals from specialized organizations for admission to the service, there are no mechanisms to attract talented youth, poor infrastructure and fragmented training requirements for quality and the level of training. Moreover, "the preservation of knowledge in organizations in a changing demographic characteristics of the labor force is a complex task that requires the simultaneous solution of the problems arising from an aging workforce, reduce the number of capable workers and the growing mobility of personnel. Related threats evolved over the years, and they can not be eliminated in one day."[6].

From all mentioned above we are able to conclude that they should pay more serious attention to local government development in terms of knowledge sharing in Russia today. The degree of the local communities response should be higher to spread the spirit of knowledge economy and knowledge culture as well.

Due to the perception of these concept the efficiency criteria should be classified, which can be influenced with development of knowledge management on local level.

Efficiency criteria of local government bodies to develop while implementing knowledge management system:

•  Delivery speed of municipal services;

•  The speed of bureaucratic coordination, avoidance of duplication of authority;

•  Budget saving while using “best practices” shared experience;

•  Raising awareness about the changes in the regulatory framework;

•  Increased interest and participation of citizens in decision-making of local authorities.

However, in the context of the transition period for the Russian economy and society as a whole, there are a number of problem areas in the field of local government:

1) economic and financial situation of municipalities (reduction of its income sources, especially tax, progressive dependence of municipalities on intergovernmental transfers, etc.

2) the state Public Utilities (physical wear and tear, arrears on payment services in the housing sector and its growth, the lack of private investment in the housing sector, as well as inadequate legal and regulatory framework).

3) the impact of changes in the regulatory framework at the federal level on the functioning of local self-government ( the development of detailed guidelines is required to comply with certain parts of the Federal Law of July 21, 2005 № 94-FZ "On placing orders for goods, works and services for state and municipal needs ", the Federal Law of May 8, 2010 № 83-FZ " On Amendments to Certain Legislative Acts of the Russian Federation in connection with the improvement of the legal status of state (municipal) institutions " and so on.).

4) backlog of rural settlements (lack of the necessary organizational and material resources for the socio-economic development, economic and demographic problems, lack of skilled employers, low level and quality of life).

5) institutional changes in the area of ​​local self-government (territorial changes, especially enlargement of territories, the introduction of the "city managers" and so on.).

6) the responsibility of local government officials (high corruption potential of the municipal government).

7) low social activity of citizens, opposition to innovations.

4. Knowledge Management for Russian Local Government

We should take into account the scale of the project, the direct impact of the results on the implementation of the medium- and long-term national goals, as well as the direct perception of the public authorities in the light of interaction with the local authorities. It is preferable the Government of the Russian Federation to initiate work in this direction. Following this logic, the Government issues a decree that formalizes the policy of developing "Knowledge Infrastructure" of local government. In continuation of the received document from the Government is to instruct the Ministry of Regional Development to develop a set of measures that can be executed in the form of recommendations to local governments. It is advisable that such a document called "The concept of knowledge management at the municipal level".

Due to the declarative character of the Concept there are the main goals and objectives of a knowledge management system at the municipal level are formulated, the basic elements of the system and the relationships between them. Special attention is paid the human resources development of local authorities through training, creating a "knowledge culture " in the municipalities and inter-municipal cooperation. The implementation of the concept will lead the development of local self-government to a new level, providing a balanced solution to the complex economic and social problems, increase the satisfaction of the citizens.

There are different options about the question which unit (department) should be a key in the implementation of programs for knowledge management: information technology department, quality control department, the department of corporate communications, support units (for example, dealing with the legal service). Among them, applicable to public sector, are: Department of Information Technology and Human Resources. However, the results of the monitoring of National Forum participants practical solutions "Electronic municipality» claim that IT-office established in 45% of the municipal administrations in percentage in municipal areas above approximately 2 times higher than in urban districts - 51% versus 25%. The remaining 55% of the administrations of the reasons hamper the establishment of IT-services indicated: