Russian state and national economic thought attempt to steer the country out of the lingering crisis with little success. What is the way out? Is it at all possible?!
The way out has always been, and remains! And the way out of economic crisis too. It is a happy medium between planning and market, between free competition and state protectionism!
From history we know that the highest rates of GDP growth were achieved just in our country in the 1930s. The Stalinist economy was developing at the more than 30 (!) per cent growth rate every year! It was a result of not only highly centralized state planning system, use of slave labor of prison population, threat of repressions “for sabotage” and “noncompliance with a plan”, but also of the veritable public enthusiasm. Bolsheviks managed to imbue Soviet people that they were building the “glorious future”, communism, which was almost here. Work and the communism is downfall from now! 😉
It is no secret that Russians have always been carried away not by their own profit, not greed of gold, but just the dreams about public Happiness.
Russians were always notable for generous nature, outstanding quick mind and strong anxiety for solution to problems for the benefit of society, community. And the Revolution in 1917, the Main national catastrophe of Russia of the XX century and probably within its millenarian history could not change this outstanding feature of Russian people. In the USSR it assumed the other accent.
But how is it possible to take Russia out of stagnation? Reject liberal economic model! Messrs. Kudrin, Gref, Nabiullina, Chubais etc. are traitors of the country’s interests, after all, they together with Medvedev and Putin are setting the economic course!
What immediate actions must Russia take?
— decrease tax and legal burden upon small business, encourage entrepreneurial initiative nationwide in economic and legislative terms. Back off!
— refuse to subsidize the West buying their government bonds and other securities, “stable” currency-denominated
— as a priority, invest in state budget – not in expansion and upgrading of law enforcement agencies – but in public health service, applied and fundamental science, education and infrastructure (transport accessibility, municipal and inter-city public transport, falling costs of communications)
— enact a law on mandatory processing of energy sources in the home country, effectively prohibit their export abroad in raw condition
— shift the vector of national development from baiting of browned off oligarchs who soon will burst from “global level fee earnings” (Sechin’s expression) toward rehabilitation of economic mechanism and its public and not oligarch-crony focus! It is necessary to forget about pursuit of money, about primacy of money over healthy economy, monetization through thick and thin!
— decrease interest of bank credit and establish 1-2% key interest rate per annum. Therefore, the rate in commercial banks will not exceed 3-4% per annum that will allow for more actively investments into the engine for growth – industry and a real sector of economy. Put another way, just the development of priority industries will permit the country to get out of crisis and within several years steadily break through 10% GDP growth per annum.
I do not suggest confiscating property stolen by oligarchs because it will result in a short-time shift of balance and an actual bank failure. This measure is possible and desirable only after the change of political system and restoration of the Monarchy in our country.
More than likely, the people in power will not listen to the voice of ordinary people and will continue to strengthen the apparatus of repressions to the prejudice of development and harmonization of economy. The oligarchs etc. will not go down without a fight, because of it the only possible way out in order to accelerate and restore the health of the economy is the change of the political order! From the power of corrupted money men to the power of the God’s chosen Tsar who would draw on the upper class and every day people and not on corruption and nepotism as is done by the current regime!
“Democracy”?! No! Autocratic monarchy!
Until in power stay those who dream not about the country’s progress but about their private life of Reilly in the West, Russia will never be raised!