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Published: February 9th, 2017

Economists have been talking about the need to change economic course in Russia for years. This question was constantly brought up during the Moscow Economic Forum. This year on the 30th of March in the framework of the MEF a Plenary discussion entitled "Which development strategy would work in modern Russia?" will be held. It will be presented by the academician, the Russian President's adviser Sergei Glazyev. On the eve of the forum, the expert said, what's wrong with the current economic policy and what are the options for the future way of Russia.

– Sergei, which topics You will cover in your speech at the plenary discussion?

–I`m going to talk about the development strategy that should have been working in our country for a long time. This rapid development strategy is based on the new technological order, the production of which grows in the advanced countries by 20-30% a year. Its main provisions were developed in CEMI RAS back in the late 80-ies. Unfortunately, they were not in demand neither by the Soviet nor the Russian leadership who have walked in the fog of primitive Marxist dogma first, and the Western economy second, but brilliantly were realized in China. If we had chosen this strategy in the 90-ies, today we would have become the center of world economic development. But our economic agencies, do not react to the recommendation of the academic science, or international experience. They stubbornly cling to the doctrine of market fundamentalism, continuing marginal policy recommendations of the IMF. Following them for only past three years turned to Russia for loss of 10 trillion rubles of non-produced products, and for our citizens – quarter loss of income. I am once again going to talk about the transition to a policy of priority development on the basis of a new technological order by forming institutions of the modern world economic order. We will focus on the combination of market mechanisms with strategic and indicative planning, public-private partnership for the implementation of priority directions of long-term economic development, mechanisms of financing of investment and innovative activity, the level of which should be doubled within this year.

- Will only one development strategy work effectively in modern Russia? Are there options?

Economic policy is always a resultant of the economic interests of the ruling elite. Today the interests of the comprador oligarchy are dominated, parasitic on the appropriation of natural resource rents from exports of raw materials and energy, currency speculators, extracting super-profits on the manipulation of the exchange rate, monopolists raising the tariffs for electricity and heat, as well as the state banks and corporations. These influential groups are quite satisfied with the existing state of affairs and fully support the passive policy of economic departments. Their officials are satisfied too. In the absence of a planning, no one asks them for the results of economic policy. The heads of state banks and corporations manage the resources entrusted to them in its discretion, selecting the best projects based on subjective interests. Currency speculators are rocking the ruble and manipulating the financial market, receiving excessive profits due to the depreciation of ruble incomes and savings of citizens. They are quite satisfied with the shortage of money, high interest rates and monstrous social inequality. Industrialists, scientists and engineers – the main creators and engines of growth of modern economy are the only ones excluded from this celebration of life. The cost for this parasitic economy system, devoid of the responsibility mechanisms for the implementation of nation-wide interest in its development is its growing technological backwardness, degradation, falling of the living standards of the population and, ultimately, loss of sovereignty of Russia, which sits on the external sources of credit, technology and consumer goods.

So, there are two options – to go to our proposed policy of priority development on the basis of production of new technological order through the institutions of the new world economic order or further decay in the periphery between the European and Chinese economies.

-What are the consequences of Russia's current economic policy?

– Look at the statistics. Our economy is increasingly lagging behind not only from world leaders but from the world average level by every performance indicator. Having begun the transition to the market economy at the same time with China, we produced twice that of China, today we produce five times less. And all because in China they use the mechanisms of market competition for growth, efficiency and technical level of production, and we have to redistribute wealth from the national income from the production sphere to the parasitic consumption. If we talk about the economy system, it is actually reduced to the sum of private interests of different groups of the ruling elite. The implementation of national goals formulated by the President are blurred. Economic growth is declared, but it turns out to be the recession, instead of transition to innovative way of development of economy it is increasingly simplified, instead of diversification the oil and gas specialization is enhanced, instead of the growth rate of accumulation there is a decline of investments, instead the growth of people's welfare – the fall in real incomes and rising social inequality. The most obvious example of the loss of control are doubling of the rate of inflation immediately after the announcement by the Bank of Russia of policy of targeting inflation in order to reduce it.

– MEF participants are talking about the change of economic policy every year. Do you think, the experts will be heard by the power this year?

As the saying goes – “and Vaska listens and eats”. They don't want to hear not only the experts, but also guidance of the head of state and ignore the law. So, the fulfillment on the request of the President of the law on strategic planning, the need for which the experts argued about for 20 years, the government has postponed for three years. But I am sure that the time of the adoption of our recommendations for creating a modern control system of economic development has come. Either our recommendations will be implemented, or the evolution of our economy will follow the control pulses from China, Europe and the United States. But on the periphery between the Western and Eastern centers of the world economy we will not be able not only to maintain its sovereignty, but also to ensure an acceptable quality of life. I believe in common sense and I am sure that the ideas of MEF will be required by the country's leadership

Source: PR department of MEF