Russia aims to become one of the world’s five largest economies within ten years, though it will admittedly be impossible to do so relying on a resource-oriented economy, prime minister Vladimir Putin stated on 26 May. “We have set an ambitious goal, that in ten years Russia should become one of the five largest economies in the world,” Putin said, speaking at the first social business forum in Moscow. “And the GDP should rise from the current level of 19,700 dollars to 35,000 dollars per capita.” He specifically pointed out that such figures will be impossible to achieve relying on “past sources of growth-exploiting the resource-oriented economic model.”
Jeff says that ….
Read more »
Published on June 11 2011
So far the only document for Group 6 is from the Gaidar Institute for Economic Policy. The document is divided into four sections with recommendations for each of the sections. These are: taxation of natural resources sector to become based on world prices for such resources; increased progressiveness of taxation of income and property; improving the structural composition of the tax system and the share of tax on consumption; better tax policy (in areas such as concessions) and tax administration.
Jeff says that ….
Read more »
Published on June 11 2011
(Jeff says that this article by Vladimir Terletsky in “RusBusinessNews” is worth reading. It is not produced by Group 1, but is relevant to its work.) The article begins:
Russia is standing on the threshold of adopting a new strategy of national development that is presently being prepared. Some guidelines of the future economic policy were brought to light at the 8th International Research and Practice Conference that took place in Ekaterinburg. Regional experts lambasted the project, stating that society is not ready for social reforms. The “RusBusinessNews” columnist also had the impression that the authors of the strategy were very unhinged from real life in the Russian hinterland.
Read more »
Published on June 11 2011
The leaders of Group 5 gave a Power-Point presentation to a joint-meeting of the leaders of all groups on 26 May. The presentation was basically divided as follows: challenges and constraints; imperatives, aims and tasks of innovation policy; scope of innovation policy (including formation of favorable institutional environment); “cross-roads” (including possible ways forward for Russia, model innovation policies, sectoral priorities and models, and functional priorities); package of measures for adjustment to a more innovative Russia (including increasing demand for and “supply of” innovation, science reform, developing innovation infrastructure, intellectual property, overcoming shortage of personnel, involving society in innovation).
Jeff says that ….
Read more »
Published on June 11 2011
Group 2 says it will focus on analyzing external economic conditions, as well as the budget (planned general parameters of budget, expenditures, and government debt) and monetary and credit policy. Questions of taxation policy, development of institutions and business-climate will be left to other Groups. This Group has so far produced only one document, so I will take it as reflecting the thinking of the whole group.
Jeff says that ….
Read more »
Published on June 11 2011
Dr. Kimelman, from the Academy of Mining Science, and a member of Group 1, has called for of large-scale Russian industrial development on China’s door step. He claims that China will not be able to import all its iron-ore needs in coming decades (due to lack of world supply!!) and that Russia should take advantage of this by finding and developing iron ore deposits in regions which are situated close to China. But rather than just export raw materials, he wants to see the “economic rents” (super/excess profits) used for a “new industrialization”. He says that that if Russia “does not move away from dominance of the raw materials model, and if we do not now move to development of a diversified economy, we will fall behind forever”. Unlike other some other Russian commentators, he does not urge Russia to give up exploiting its natural resource exports and, instead, “modernize”. He says that it is well known that many countries (Norway, Australia, Saudi Arabia, United Arab Emerites and others) which do not aspire to be processers of raw materials, use the income from this trade to develop other spheres of economic activity.
Jeff says that ….
Read more »
Published on June 11 2011