According to sources “Vedomosti” among the participants of the economic Council under the President, Chairman of the Center for strategic development Alexey Kudrin will offer Vladimir Putin the concept of development of economy at session of Presidium of the economic Council on may 25.
The concept Kudrin suggests that for “race” for economic growth in the coming years, no resources, and max — is entering a stable growth of GDP to 1%, said the publication of one of the participants in preliminary meetings, familiar with the proposal the former head of the Ministry of Finance. It emphasizes the need for institutional reforms (of judicial and law enforcement systems), reducing the deficit to 1% of GDP, and inflation to 4%.
Another participant in the meeting explained to the publication that, in the case that the reforms will be launched in 2017, then in 3-5 years possible high growth rate of the economy. To jump 4 percent tomorrow is impossible and dangerous, emphasizes the interlocutor of “Vedomosti”. “This is a reasonable position,” confirmed the publication of a Federal official: to grow, we need serious structural changes.
Against the concept of Kudrin may 25 will be the supporters of the fiscal stimulus of the Stolypin club, headed by business Ombudsman Boris Titov, according to “Vedomosti”. As previously mentioned, the concept Titova implies the transition of the government and the Bank of Russia from “positive” to “stimulative” monetary and industrial policies — “policies that ensure the priority offer is available with low interest rate, credit, especially long-term, for increased production and investment for development”. The authors of the program propose to implement “the Russian option is moderately easy monetary policy (“quantitative easing”), aimed at refinancing of the Central Bank loans to commercial banks and development institutions”, and to introduce a “selective” monetary constraints “individual elements “soft” currency regulation”. Supporters of the concept believe that it will allow a decade to bring Russia into a world leader in several economic indicators.
However, a number of sobesednikov “Vedomosti” considers that the coalition Kudrin higher chances to convince the President. They note that Putin — a supporter of fiscal consolidation, the more that we need reserves to the election. “And, of course, the words of a man who once saved money in those reserves, will be important for him,” said one of the officials.
However, according to another source, “Vedomosti”, the GDP growth of 1% and a stable macro-economy, given that the reforms will address all the same team that 15 years ago — too “dreary” agenda before the election.
Kudrin was appointed Deputy Chairman of the economic Council under the President (Chairman of the Board is Vladimir Putin) at the end of April. Prior to that, the former Minister of Finance was only part of the Board.
The economic Council was established in July 2012. It is a consultative body under the President to “prepare proposals on the basic directions socially-economic policy of the Russian Federation, definition of the strategy and tactics of its implementation, mechanisms to ensure sustainable development and technological renewal of the economy”.
May 17, ex-Finance Minister headed the working group of the economic Council under Putin. He will do the same “Priorities for structural reforms and sustainable economic growth”.