Golodets urged to place a bet on consumption

Deputy Prime Minister Olga Golodets considers the concept of economic development proposed by Stolypin club “more relevant to today’s situation” than the proposals Alexei Kudrin and his Center for strategic research. “It gives a completely different potential for the development of Russia’s economy. The concept of the Stolypin club, advocates increasing the availability of capital and money, for a change in investment policy primarily for investment in human capital as the basis for the development of the state,” said Golodets at the St. Petersburg economic forum.

The hallmark program of the Stolypin club is the idea of increasing the money supply via targeted channels such as project financing of the Central Bank. Kudrin opposes.

Golodets believes that the main limitation for the transition of the economy in the area of growth is the inaccessibility of credit resources and funding”. “Today is the rate at which they offer loans from our banks of our industry, this is a major way to the development of inflation. If you have 13-14% contained in the loan rate, then what about the reduction of inflation can be said? We need a good, affordable price, and they should be available throughout the economy of Russia”, — said the Golodets the channel .

In her opinion, in a crisis we need to focus on consumption as the main growth driver. It worked in 2008-09 when “was dramatically increased social spending, and it is possible to move to economic growth”. Therefore, the issues of indexation of pensions or public sector wages is the issue of support to the economy,” said Golodets. When the population has no money, the problems of the economy only getting worse, she said.

In late may, the experts presented to President Vladimir Putin several concepts in the first two years the meeting of the Economic Council. In particular, proposals were made CSR under the leadership of Kudrin. The report of the former Minister of Finance said that the problem of the Russian economy is slowing so-called structural growth long — term growth components, determined by fundamental factors (labor and capital resources, technological progress, quality of institutions). The other two components, foreign trade and market (the first is mostly linked to oil prices, the second — with the business cycle), to hope no longer: in 2015 both made a negative contribution to GDP growth. CSR believes that the need to accelerate structural growth to 4% (from the current 1.5 percent), but to ensure that by 2019, you will need to bring into the economy an additional 4.5 million people and 40 trillion of investment in fixed capital.