Russian Economic Reform

Articles

Russian “maneuvers”
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Disagreements about economic policy within the Russian government often spill over into the public arena and get reported in the media to an extent which would surprise most people in such English speaking countries as Australia, the UK and the US.

In part, public exposure of internal government economic policy differences reflects less need for government discipline than when faced with an effective political opposition ever ready to attack (particularly as in the Westminster system used in Australia and the UK).

However, it is also partly a way of trying to influence the views of the president and prime minister. President Medvedev has, on occasion, had different views to Prime Minister Putin and has been quite insistent on specific economic measures (such as the payroll based insurance contribution and privatization) even if actual implementation of his demands has been tardy. It will be interesting to see the extent to which such public airing of ministerial differences (and those of official advisers) will continue when the roles of Medvedev and Putin are reversed: Putin will be calling all the shots with Medvedev (psychologically defeated by Putin in the unspoken contest to be the presidential candidate) having little independent authority.

I would also note that the public debates of economic policy by Russian ministers (and various official advisers) are often more sophisticated than what appears in the media of most “modernized” English speaking countries. The Russian system of appointing cabinet ministers is more akin to the US than to Australia or the UK and in the area of economics, at least, the result is often greater intellectual competency. Of course, as in any country, this does not necessarily mean that the final decision makers are competent economic policy makers.

Last week a Higher School of Economics (HSE) “conference” to discuss economic reform essentially turned into a mini-debate on budget issues between Elvira Nabiullina, the Minister of Economic Development, and Finance Minister Anton Siluanov.

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Published on April 09 2012

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