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Published: February 12th, 2016

On February 16 in the framework of the Moscow Economic Forum (MEF) section "Poverty and inequality: treatment recipes" will take place. The theme is not new for the "young, 25-year-old Russian", but judging by the agenda,it is already sharpened to the limit. Not every bird flies to the middle of the chasm that separates the rich and poor. And luxuries of top managers who have "a lot of money, they are very much", the introduction of "Plato", growth rates and falling of real household earnings - that increases the stratification of society - governments are increasingly talking about a new wave of privatization - next the redistribution of property. Is there a solution to this problem? What recipes can MEF offer? In an interview with head of association "Rosagromash" and "Sodruzhestvo", co-chair of the MEF Konstantin Babkin said to Nakanune.ru.

Q: What do you think, the discussion of inequality in society and "treat recipes" is how important today? Is this topic exacerbated?

Konstantin Babkin: Yes, it is obvious that this is one of the main problems that make our society "sick", interfere with its development. We thought it would be interesting to discuss prescriptions to cure this disease. We have separation much higher than in America, in Europe, much stronger than in developed countries. We have 1% of the population who owns 90% of the property. This discourages citizens does not give young, talented people incentives to work.

Various prescriptions are available to solve this problem: some are offering to take away from the rich and divide, some do not see any problems, in particular the Government, as I understand it, does not feel this problem.

Q: How did this problem came into being?Ia there any recipes can adopt? For example, a progressive tax scale - what do you think about it?

Konstantin Babkin: As you know, a tax system we have is constructed so that the rich pay less than the poor even a percentage of their income. This tax only increases the scale of the bundle, and it was done deliberately - it's part of modern policy of the Government. And in the course of privatization, the next stage which is now being discussed, it is clear that the poor will not get any part of the SberBank or Rosneft, and privatized companies will go either to the foreign bankers or go into the property of the oligarchs who have spare cash to buy again.

As you know, a major oligarchs we have are the people who did not make any inventions, discoveries, they are people just appointed from the top in the privatization process. Chubais, the ideologist of the privatization, believed that this problem is not economic, but political – the need to ostensibly create a new elite. It is no coincidence his friends and associates have become the major oligarchs. That means that the problem of separation, among other things, has the political background and largely created deliberately during the formation of the new financial and economic elite.

Q: Then it is necessary to revise the results of privatization, is not it?

Konstantin Babkin: I will not offer to take away and divide, and even to revise the results of privatization, because in my understanding it will cause a lot more problems, turmoil, again will undermine the credibility of private property - I do not see solutions in this recipe. A recipe I see, first of all, is in the construction of economic policy, which is aimed at a new industrialization, development of non-extractive sectors of industry and agriculture.

And secondly, in the process of economic development of non-oil sector of the entire economy, it is necessary to create conditions for the development not oligarchic structures, but for the development of small, medium-sized businesses, to access the millions and tens of millions of small proprietors.

For example, there is great potential in the field of agriculture. Our governments policy as was announced 15 years ago, is the primary support and the creation of agricultural holdings. And, according to some estimates, 18 of the largest agricultural holdings in Russia receive more than 80% of all grants, which are allocated by the state.

However, many small farms, have not seen average size of state support and support itself. Thus distort competition, growing the same stratification of society, become empty fields, empty villages, manifest and other various painful phenomena. Therefore, agricultural policy should be reformatted so that the farms and management of small and medium sizes were the first to receive subsidies,.

Q: And how is the situation in the industry?

Konstantin Babkin: In the industry it is the same – there is no need to encourage imports, to withdraw money from Russia, and it is necessary to create conditions for the development of small companies in the engineering industry and in the industry in general.

That is why my recipe would be that it is necessary to: a) develop its own non-primary economy; b) to do so, that the young, talented and hard-working could get a share of the "pie" and take part in it but not oligarchs assigned 20 years ago.

Q: Most of the ministers from the Prime Minister can hear the words that a measure is common in the West, in Europe. How in this case the things are abroad?

Konstantin Babkin: The approach that will be offered by me, operates in Europe, where the amount of subsidy per farm is bounded from above, that is more than a certain amount per year industry, whatever giant it may be, it does not get ever. A small farms receive subsidies depending on their performance, but to a certain size. So are millions of those same owners who are engaged in work, invest, improve the environment, and the countryside in Europe looks much healthier than our dying villages. And, for example, 80% of Germany's GDP is small business companies - is also the result of long-term policy of the German government, which supports the creation and development of small and middle-class property owners.

I think that just in the development of agriculture, and in a more equitable system of development and form of solving not only the problems of social stratification, but the diversification of the economy, enclosed goind past the "dependence on oil."

Q: And how do you like the sensational news from Switzerland, where citizens will be payed 2.5 thousand montly Benefits? Is it possible and is in Russia?

Konstantin Babkin: I think that if Switzerland decides to apply this measure, it would be a mistake, and then lead them to the degradation, because it discourages people to work and improve their skills. This amount will still allow them to have a car, get dressed, eat. I think that if the state has the money, it is better to invest in education, supporting their economies.

It is better to provide people with opportunities and freedom of action than simply pay all who does not want to work, maintain and drive people to a standstill, giving them an animal existence.

Human labor should be the locomotive of the economy, there must be a progressive tax scale. Maybe not the same as in France, where you don't even want to become rich. But to remove the tax from the poorest - I would support this measure.

Q: And how do you look at the "Plato" system? Like, not all truckers are protesting, but the majority of them support the protest. The measure still has a negative impact?

Konstantin Babkin: "Plato" will still cause or already causes deceleration of the economy. Because cheap transportation is the most important part of a competitive economy. If we deliberately increase the cost of transport within Russia, we undermine the competitiveness of our country, so naturally it is a step in the wrong direction. And to revive our economy, it is not necessary to raise taxes, not to increase interest rates without a reduction in support for industry and agriculture, as does the Government, and we must act the other way around - reduce taxes, protect the market, increase support for economic activity. Our country has a huge potential, however this potential is not necessary to suppress, the time has comr to release it.

Q: What challenges stand in the way of solving the problems of poverty and inequality? And if they somehow be eliminated - how long will it take to recovery and began to feel the positive effects?

The difficulty we have, in fact is only one - that it is controlled by the economic bloc of the government, which is ideologically occurred from the time of Chubais, Gaidar, from the early '90s, from privatization, the destruction of the old system. They think with old categories, each year meets on the Gaidar Forum. They destroyed the old system, but did not createded a positive new model yet. And the fact that these people have been in power for a quarter-century - it is a huge time - so this is a major obstacle to economic recovery.

I am convinced that Russia has everything to start a stage of economic recovery - has all the necessary resources, it is a land that has to be developed and used in agriculture, there is technology, huge market, people who want to work and have a tradition. There only thing that are not – the proper economic policy.

If this obstacle is gone - and in our political system it may happen only by presidents decision. Then, I think, major decisions can be taken for several months, maximum - six months. But after six months or a year the economy will grow.

Source: Nakanune.ru