II Plenary Discussion: “Russian Economy: positive scenario”

Published: March 23rd, 2016

Moderator:
Konstantin Babkin, Co-chairman of the Moscow Economic Forum, President of Industrial Union “New Commonwealth”


Speakers:

Zhores Alferov, Nobel Prize in Physics (2000), Vice-President of RAS

Oksana Dmitrieva, member of the State Duma Committee on Budget and Taxes

Vsevolod Yew, head of the rural settlement of Chkalovsky (Primorye Territory )

Sergei Kolesnikov, president of the company "Technonikol"

Erik S. Reinert, a Norwegian economist, founder of the International Fund "Another canon» (The Other Canon Foundation)

Dmitry Strezhnev, General Director of JSC "MCC" EuroChem"

Ivan Ushachev, Doctor of Economy, Professor, Academician of RAS, Director of All-Russian research institute for agricultural economy

Valeriy Fadeev, Chief editor of the «Expert» (1998), Member of the Supreme Council - co-coordinator of the Liberal platform of a political party "United Russia"

In the framework of the fourth Moscow Economic Forum the second Plenary Discussion “Russian Economy: positive scenario” took place. The moderator, Co-chairman of the Moscow Economic Forum, President of Industrial Union “New Commonwealth”, chairman of the Political party “Partiya Dela” Konstantin Babkin said that a long road to the development are waiting for Russia and that nothing will prevent it if the country will use the right historical lessons.

"Such scenario of the development of the Russian economy not just needed but realy possible. For the last 25 years the World doubled the volume of production, but Russia, on the contrary, decreased” - said the leader of the “Partiya Dela”

The MEF co-chairman used Chinas experience as an example. For the development of the production its Government invests money into the infrastructure which in the end is developing. "The restrictions of a political nature can be solved and are not an obstacle for the industry volume growth", - said Konstantin Babkin.

Also under discussion, he announced the results of recent studies, according to which 65% of the population want changes. "They see the new industrialization as the core of these changes. The question is precisely the discussion of how to interpret the wishes of the people and how to ensure the development of uncultivated field. For this purpose "Charter 2016" was drawn up, which requires a change not justified economic policy, which dominates in Russia for a quarter of a century, and the transition to a new economic development policy based on internal capabilities and potential of Russia ", - said Konstantin Babkin.

Member of the State Duma's Committee on Budget and Taxes Oksana Dmitrieva cited the example of the figures which shows hand-made of the current crisis, and drew attention to the growth of loans and deposits, calling it a means of pumping money from the realsector to the virtual. According to her, the first and foremost condition for overcoming the crisis is "to withdraw manipulators from the management".

"Everything that is made by the Government and the Central Bank today has to be done differently. We need positive a scenario in the credit policy. This is the percentage of 7-8% and a key rate - 5-6%. We need to pursue sustainable policies of the cheap ruble. Because now that the oil rises in price is the right time. We are seeing a decline in incomes of the nation. This is a major brake for the economic growth, because there is no effective demand. Here it is necessary to switch to indexing. Pensions and salaries should be raised to at least 15%. State order today, too, does not appear as an incentive as well as a brake. We need to abandon the tendering in many directions and move on to the state contract, stabilized prices and terms. This is what is necessary for the business now", - said Oksana Dmitrieva.

Speaking about the sources of funding for this scenario, she drew attention to the importance of indexation of spending and tax cuts. "Source - is 1.5 trillion rubles, which is actually removed from the budget. Now they lie on bank deposits in the form of assistance to the banking system, which is not necessary. There is a Fund of national wellfare, which also contains 1.5 trillion rubles transfered assets from one bank to another. They have not reached to real investment process ", - said a member of the State Duma Committee on Budget and Taxes.

To reduce the number of dependents, to force people to work and create jobs, called for the general director of OJSC "MCC" EuroChem "Dmitry Strezhnev. The businessman has made several proposals to change the country's course in business. In his opinion, it is necessary to reduce the number of administrative reforms and restrictions on manufacturers, as currently 70% of the time is spent on the fight against the administrative resource.

"Once the dollar was released in the 90, and Government stopped to touch the business, the country has healed. It is possible to make changes now, following the model of the tax reform"- said Dmitry Strezhnev.

The businessman also called for transparent access to investment, free up new companies from taxes for five years, and oblige employers to pay workers high salaries.

"Our society needs to cease dependent psychology, stop hoping that there will be something distributed among everybody, and the state should strengthen this ideology. It would be nice to our country to be in need of people who work well and create jobs, "- said the speaker of the MEF.

In his place the Chairman of the regional branch of Political Party "Partya Dela" in the Primorsky Territory Vsevolod Yew compared attitude of local authorities to the Russian business and the Chinese. According to him, local entrepreneurs have to pay to the treasury for electricity at the overvalued rate - 5, 53 rubles, neighbor - only 1.5 rubles. "There is a similar pattern of unequal conditions for business developing in the sphere of crediting - the percentage of loans to small and medium-sized businesses in Russia comes to 50. The Chinese Government has spared its farmers, and gives out loans at 1.5-2 percent, "- he said.

Valeriy Fadeev, Chief editor of the «Expert», Member of the Supreme Council - co-coordinator of the Liberal platform of a political party "United Russia" in his speech entered the political field. In his dispute with representatives of the opposing political parties Valery Fadeev suggested they bring there economical reforms as Deputies after the elections to the State Duma.

“There is a serious gap between what is done on the level of the Federal powers and what is happening in Regions,” - cleared his position Valery Fadeev. The expert thinks that there is a positive dynamic in the economical development of many different regions even in the agriculture, while the positive growth is not reflected on the federal level, because there ais a little bunch of people at the helm. “This is the problem of the Elites. The problem of the lack of communication”

Not only to proclaim the idea, but to create real mechanisms to put these ideas into practice, suggested Russian politician, deputy of the State Duma Sergei Sobko. According to him, Russia should build strong institutions, prepare engineers, develop the production.

"Now there is a situation when the parachute institutions are destroyed, because the plot of land is expensive, but nobody caries for the fact that the country needs parachutes," - emphasizes the speaker of the MEF.

Ivan Ushachev, Doctor of Economy, Professor, Academician of RAS, Director of All-Russian research institute for agricultural economy in his speech reached to the subject of the agricultural development. According to the speaker, the current increase of 3.1% observed in the industry. However, the agricultural sector is lagging behind the level of the pre-reform era by 20%. The speaker elaborated on the factors hindering the development of the industry. In addition, he proposed a version of the development, the basis of which should be to create conditions for a sustainable agriculture, development and innovation, support for producers, owners, city closuring with the village, improving demographics, employment of the population.

Norwegian economist Eric S. Reinert thinks that the key to the solving the problems of Russian Economy is diversification. He remind the guests of the conference of two successful experiences on economical diversification in Russian history: industrialization of Peter the Great and reforms of Sergei Vitte.

"In 90 years in Russia, a significant part of the industry and agriculture resources were lost. The implications of these transformations the country feels today. Free trade has already shown to be ineffective, and continues to show it in Europe. And while the communism and the capitalism were based on the idea of ​​mass production, now the world is changing the concept of globalization, to something more complex. In this connection, Russia should create its own model of development based on diversification, using their own experience and the positive trends ", - said Eric Reinert.


On the possibility of growth in the current market conditions, in his speech said, the Head of the Public Advisor of the Chuvash Republic Sergey Kolesnikov. To confirm his words businessman led growth performance of the TekhnoNIKOL Corporation led by him.

"There is no country, which can not be competed with. You can build a strong industrial enterprises with high salary in current market conditions," - he said.

Entrepreneur lamented the frequent changes in legislation coming from the federal government. Russia, he said, holds the record for the number of laws. The new amendments, bans, administrative fines are introduced. It is necessary to stop the flow of legislation infringing the interests of entrepreneurs ", - said Sergey Kolesnikov.

He paid particular attention to the infrastructure deficit. "At a time when the export business becomes a way of survival, rising prices for transportation are a serious problem", - said Sergey Kolesnikov.

The Nobel Prize in Physics, Academician Zhores Alferov began his speech with quotes from an article by Albert Einstein, "Why Socialism?". "Private ownership of the means of production tools has spawned a capitalist oligarchism. Unlimited competition mutilate a person, which inevitably affects the quality of education, which instilled ideals of success, fierce competition. This type of society, as described by Einstein once observed in modern Russia ", - he said.

The expert expressed confidence that there is only one way to get rid of "these terrible evils." In his opinion, it is necessary to create a socialist economy with an appropriate system of education that would be aimed at achieving public goals. "In such an economy, the means of production belong to the whole community and are used according to plan", - he explained.


Zhores Alferov urged "not to do god of the market economy." The market is realized in strategic planning.

Source: PR department of MEF

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