The recent slowdown of the Russian economy has fundamental roots and cannot be overcome by ‘simple’ measures like alleviation of monetary or fiscal policy. The major impediment to growth is marked weakness of the market environment, explained primarily with dominance of state-owned and quasi-state companies. Strong incentives for efforts to enhance efficiency by both business and public administration are required. The key objectives of policies needed to develop a new growth model are listed.
The problems underlying the current slowdown of the Russian economy are of a persistent nature tal reason for these problems is the weak market environment dominated by public and quasi-public companies. A new growth model should be based upon strong incentive for the business, as well as the building such a model.
The paper discusses fiscal policy parameters through 2024. The suggested way to ensure long-term fiscal stability is stabilizing both the general government revenues and expenditures as percentages of GDP at levels differing by the public debt service payments and then applying a new version of the fiscal rule. The redistribution of fiscal spending from unproductive to productive areas (primarily investment in human and physical capital ) is considered to boost economic growth. The possible use of additional spending on education, public health, and transport systems is presented, as is the optimization of expenditures in nonproductive areas.
The article discusses the core changes, called the “new industrial revolution”. It addresses the challenges that Russia faces in its technological transition. Based on the cross-country analysis of the readiness to transition, we bring the target vision of the technological revolution for Russia. Risks and action scenarios are also evaluated, the main measures are proposed and the stages of their implementation are indicated. The aim of the article is to put the accelerated technological transformation in the list of priority goals for Russian economic policy. The article is based on the Center for Strategic Research report.
The paper discusses fiscal policy parameters for the period through 2024. The suggested way to ensure long-term fiscal stability is stabilization of both the general government revenues and expenditure in percent of GDP at levels differing by the public debt service payments, and then applying a new version of the fiscal rule. Redistribution of fiscal spending from “unproductive” to “productive” areas (primarily investment in human and physical capital) is considered as a way to boost economic growth. Possible use of additional spending on education, public health, and transport system is presented, as well as optimization of expenditures in “nonproductive” areas.
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