Self-Regulation as an Alternative Mechanism of Private Governance and Dispute Resolution in Russia and Kazakhstan

Abstract

 The article seeks to explore self-regulation as an innovative effective legal mechanism of private governance of any economic or professional activity and dispute resolution therein, which aims to substitute the state regulation and thereby to limit the state interference into the economy. The research methodology consists of the critical analysis of scholars’ publications, different legislative acts and judicial practice of their enforcement in the Russian Federation and the Republic of Kazakhstan as well as finding legal uncertainties and gaps and making solutions for their settlement in the sphere in question. The special attention is paid to the comparative method. On the examples of the law of these two countries it is argued that the self-regulation as such lays down the freedom of economic activity guaranteed in the constitutional, business and other legislative provisions and stipulates uniting the subjects of economic or professional activity within a self-regulatory organization mainly under the scope of corporate law. It includes: (a) setting standards and other rules of pursuing any economic or professional activity by members of a self-regulatory organization; (b) monitoring compliance with such requirements and the application of different alternative methods of resolution of legal disputes with the participation of its members. Such corporate normative acts adopted by non-governmental actors are suggested to be recognized as a specific type of sources of private law to be clearly enshrined in the present legislation of the Russian Federation and the Republic of Kazakhstan. Unlike recommendatory documents of most non-profit organizations, they are mandatory and can be enforced throughout legal instruments determined in the special legislation on the self-regulation. It allows achieving the proper balance of private and public interests under the joint state and private governance of economic and professional activities. The article also stipulates enlarging the application of self-regulation to digital and other new spheres which need a lot of rules to be adopted.