Vladimir Mau warned about the threat of repeating mistakes of the 1980s


The Russian economy in its present state resembles the economy of the USSR as it was in the second half of 80-ies of the last century, says the rector of Academy of national economy and state service under the President (Ranepa) Vladimir Mau.

“In my understanding, our economic situation is very similar to the second half of 1980-ies, and it is very important to avoid risks of repetition of the economic policy of the second half 80-x <…> One of the most important conflicts we now face, is almost everything that contributes to the growth in the short term, undermines the basis for sustainable growth in the medium term, and Vice versa,” said Mau on passing in St. Petersburg the conference “Sustainable development: society and economy” (quoted by TASS).

The rector of Ranepa, noted that it is important to avoid repeating the mistakes made in economic policy three decades ago. “Success criteria policy for the coming years, in my understanding, is, first of all, the positive dynamics of private investment, availability of credit, low real interest rate, which means low inflation and diversification of exports”, — said UIA.

Achievement after a long period of recession “the bottom”, according to the rector of the presidential Academy, does not mean that the economy will be able to “push off” and automatically switches to growth. In particular, Japan’s economy, according to Mau, have not increased in over two decades.

In December 2015, Vladimir Mau in an interview said that the safety factor of the economy Russia has now “significantly higher” than that of the USSR.

“The Russian leadership in 2000-ies took into account the experience of the 1980-ies, now the Russian economy is more flexible, particularly in terms of exchange rate and pricing. We have very low debt, have reserves. And yet there is a “moral-political unity of the party and people”, which could not dream of Soviet leaders. It is, of course, cannot be overstated, but we must understand that a whole generation which believes that order and stability is good,” said the rector, Ranepa.

At the same time Mau pointed out the danger of the repetition allowed during Soviet times, mistakes like inflating a budget deficit or a meaningless state investments. “The most dangerous thing now is to engage in the promotion of growth through the digging of ditches, laying of the tracks are not in the middle of nowhere and so on… in short, the pursuit of numbers, growth at the cost of quality of growth,” said Mau.

Earlier that the current state of the Russian economy resembles Soviet, said the Chairman of the Board of Directors of Alfa-Bank Petr Aven. According to him, in the last years of the Soviet Union, tendencies were observed, similar to what happens in modern Russia. “Since the second half of 1960-ies of the Soviet economy is clearly beginning to fade. Each year, the growth rate fell. What happens is that Voinovich then wrote in the book about Ivan Chonkin, “the Things on the farm were bad, that is not so very bad — one might even say that and well, but with each year getting worse and worse,” said Aven in the summer of 2015, speaking at the Russian economic school. He noted that to overestimate the importance of oil in that time is not worth it. “Western consumer goods were bought with money that was given oil, a stable social status was largely achieved by the presence of oil revenues, which collapsed in 1986,” said he.

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