Discussion on structural reforms of the economy in Russia

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/40

The Civil Initiative Committee think tank launched by former finance minister Alexei Kudrin, this week released a comprehensive report on Russia’s status in the global economy and the related challenges arising over the longer term. The report notes the importance of e.g. opening up the Russian economy, global integration and improving the business environment to bolster economic growth. Similar themes were mentioned also in an article by prime minister Medvedev last week. The article states that macroeconomic stability, a precondition for economic growth, requires prudent fiscal and monetary policies. For supporting growth, attracting private investment and improved market competition are also needed, but these goals can be hampered by current import substitution policies, heavy-handed regulation and the state’s excessively large role in the economy.

The views expressed in these publications on the reforms that Russian economy needs are not presented for the first time. However, the issues have not received much attention lately in Russia’s economic policy discussion, which has tended to focus on import substitution and government support measures. Moreover, the reforms presented are perhaps more relevant than ever as they have been long neglected in implementing economic policy.

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