Quo Vadis Russian Economy?
Type
case study
Date Issued
2017-07-17
Author(s)
Abstract
In early 2017, the Russian economy is still not growing. The economic downturn started in 2014 and was subsequently deepened by sanctions, counter-sanctions and geopolitical tensions between Russia and the Western world. The Ministry for Economic Development of Russia released an updated economic forecast, which assumes that the period of zero or barely positive growth might last at least until 2019. The key structural issue is that Russia’s financial system may not be able to allocate adequate capital resources to the many promising projects that would otherwise emerge in the vast Russian market bordering the EU and China.
Striving to achieve a growth rate of 4%, the President’s Economic Council is in search of policy proposals aimed at developing a programme that would lead Russia out of the recession. Two groups led by the country’s top economists emerged. They initiated a debate offering distinct action plans and both believed that their proposals would be heard by the President, maybe via the offices of the Economic Council itself. One group is the Centre for Strategic Research headed by Alexey Kudrin, the former Russian Minister of Finance. The other is the so-called Stolypin Club, a group of prominent economists and former governmental officials. The future of Russia’s economy hinges on whose arguments will win the day.
Keywords: financial system, economy, reform, Russia, institutions, Kudrin, Stolypin.
Striving to achieve a growth rate of 4%, the President’s Economic Council is in search of policy proposals aimed at developing a programme that would lead Russia out of the recession. Two groups led by the country’s top economists emerged. They initiated a debate offering distinct action plans and both believed that their proposals would be heard by the President, maybe via the offices of the Economic Council itself. One group is the Centre for Strategic Research headed by Alexey Kudrin, the former Russian Minister of Finance. The other is the so-called Stolypin Club, a group of prominent economists and former governmental officials. The future of Russia’s economy hinges on whose arguments will win the day.
Keywords: financial system, economy, reform, Russia, institutions, Kudrin, Stolypin.
Language
English
HSG Classification
contribution to education
HSG Profile Area
SEPS - Economic Policy
Publisher
The Case Center
Number
217-0057-8
Subject(s)
Division(s)
Eprints ID
252480