Thursday, June 16, 2016

Kudrin: Oil prices fell, and Russia needs to “build muscle” – Rosbalt.RU


 Russian economy can not get out of the crisis “one solution”. As the correspondent of “Rosbalt”, about this today during the St. Petersburg International Economic Forum (SPIEF), said the former Finance Minister, head of the Committee of Civil Initiatives Alexei Kudrin.

 He recalled that Russia “was the oil frame that supports the economy.” “We have grown out of it a little bit. Price (oil – Ed.) Fell, and we were nenakachennye muscles “- figuratively have the former head of the Ministry of Finance

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 He outlined a set of problems in the Russian economy – the lack of competition, high barriers, close to the dominance of state companies, the excess load on the business of the courts and law enforcement

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 Kudrin said that the country needs institutions that will contribute to changes in the economy. “We need institutions that have contributed to changes in the economy … It’s day job, I would compare it with the work of the pilot, who leads the ship among the reefs. To do this we need a navigation system and government significantly more effective than it is today. And we are not able to manage the changes … The institutions we have today work poorly. In this sense, the system of government that we have to upgrade and have the pilot’s navigation system, which is to learn to manage change, “- said the ex-minister

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 According to him, today the whole world has become a laboratory for the production of innovations. At the same time Russia in this regard is lagging behind other countries. “We need to make multiple products such level that the scale of sales in the world to replace our oil revenues. Approximately 350 billion dollars. Today, we produce non-commodity to 142 billion – about 40% of our exports. It is necessary that 80% were non-commodity goods “, – says Kudrin

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 According to him, Russia needs a charge shall structural reforms. “In recent years, we have lost one important circumstance. We had the oil frame that supports the economy. We grew out of it a little bit. It prevents us and stopped to support the economy. Price (oil – Ed.) Fell, and we were nenakachennye muscles. I would compare the institutions with weight training. Inflation at 4% and the budget deficit, I would compare with the heart and blood vessels, which must be in good condition. You can not go to the Olympic hypertensive hundred meters. It is impossible to inflation in the 7-8% to compete with the United States and China on the investment quality and long money. It is an axiom. As with a large budget deficit, which poses risks to the economy. It must be in good condition. By the way, inflation – controlled process. All the world’s governments have already agreed among themselves that inflation should be kept at the level of 2-3%. China is succeeding. He therefore holds the investment on the order more. But in general we have a different task – to shape the institutions that create a new performance of the economy. Each investment should not be on the same level of processing capacity, and the new one. We each workplace should be more productive than the previous one. It turns out that we have institutions that need to focus these investments, and lead to the point where they would be more productive working sluggish, weak, “- said Kudrin

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 “And the last argument. In a world of growing markets for new products. At 2-3 times for a variety of new products in new industries. Older branches die off, new grow. But we’re not there yet competitors. It is not for us, growth, and it should be for us. We must begin to compete in the growing markets – the other productivity and increasing quality “, – summed up the ex-minister

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