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    Russian Economy General News: #6

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    kvs
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    Re: Russian Economy General News: #6

    Post  kvs on Tue Sep 08, 2015 4:02 pm

    sepheronx wrote:As said, Fitch and the rest are a joke (fitch being lesser of a joke though imo).  They need to refrain from speculations as we have all now seen evidence of numbers not even matching predictions.

    That said, having a low rating because public debt is a joke, especially for Russias lower public debt compared to others. Public debt being 12% of gdp is funny since Japans, US and the like is beyind that by a massive margin yet they dont face investme.t rating drops.

    It is pure Orwellian newspeak to invoke the small size of the sovereign debt as a reason for the low rating. The country level credit ratings
    are actually related to the individual consumer ratings. They reflect your ability to pay your debts and your risk of default. They don't
    reflect nonsense like your debt is "too small". We are not talking about a few dollars here but billions.

    These NATO based ratings agencies a clearly politically motivated in their evaluations. There is no excuse for their nonsense
    ratings. And I dare anyone to provide a single valid excuse.

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    Re: Russian Economy General News: #6

    Post  kvs on Tue Sep 08, 2015 4:05 pm

    Austin wrote:Ships worth around $36 bln to be built at Russia's Zvezda shipyard from 2016

    "Rosneft" plans to place in the complex "Star" orders for 41 ships and 12 platforms


    http://tass.ru/ekonomika/2244290

    This is wicked cool. The amplifier effects from the $36 billion are likely to double or triple this amount in terms of its impact on the
    regional economy. Spending such money on foreign shipyards would have been a crime.

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    Re: Russian Economy General News: #6

    Post  PapaDragon on Tue Sep 08, 2015 4:28 pm


    Map of largest brands per region in Russia (pardon my French jocolor )




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    Re: Russian Economy General News: #6

    Post  magnumcromagnon on Wed Sep 09, 2015 5:22 am

    Russia is Building a 'New East' in Vladivostok

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    Re: Russian Economy General News: #6

    Post  Austin on Wed Sep 09, 2015 8:13 pm

    Forget Ukraine. It’s Business As Usual Between Europe and Russia

    magnumcromagnon
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    Re: Russian Economy General News: #6

    Post  magnumcromagnon on Wed Sep 09, 2015 8:32 pm

    kvs wrote:
    sepheronx wrote:As said, Fitch and the rest are a joke (fitch being lesser of a joke though imo).  They need to refrain from speculations as we have all now seen evidence of numbers not even matching predictions.

    That said, having a low rating because public debt is a joke, especially for Russias lower public debt compared to others. Public debt being 12% of gdp is funny since Japans, US and the like is beyind that by a massive margin yet they dont face investme.t rating drops.

    It is pure Orwellian newspeak to invoke the small size of the sovereign debt as a reason for the low rating.   The country level credit ratings
    are actually related to the individual consumer ratings.   They reflect your ability to pay your debts and your risk of default.   They don't
    reflect nonsense like your debt is "too small".   We are not talking about a few dollars here but billions.

    These NATO based ratings agencies a clearly politically motivated in their evaluations.   There is no excuse for their nonsense
    ratings.   And I dare anyone to provide a single valid excuse.

    lol1 lol1 lol1 lol1...It's Orwellian alright, I mean isn't paying off your debt and maintaining the Debt-to-GDP at a low percentage the core of the so called 'ratings'? Maybe these ratings agencies have been working second jobs at the Golf Network­™ lol?

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    Re: Russian Economy General News: #6

    Post  PapaDragon on Thu Sep 10, 2015 3:54 pm

    russia lol1 Razz

    Russian Altay Republic Businessmen Thank Obama, Merkel for Boosting Tourism

    http://sputniknews.com/russia/20150910/1026826515.html#ixzz3lLNTc4Q8


    Entrepreneurs in the southernmost Russian Altay Republic plan to formally thank US President Barack Obama and German Chancellor Angela Merkel for boosting tourism in the region, the republic’s newspaper reported Thursday.

    "There was twice the number of holidaymakers [this year]… We can expect the next tourist season to be as high," the Zvezda Altaya quoted the gesture-of-gratitude initiative's author, Ivan Yuzhakov.

    Yuzhakov is cited by the regional outlet saying a group of entrepreneurs from the Altay Republic’s Lake Teletskoye intends to send thank-you letters to Obama and Merkel once the season wraps up......................


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    Re: Russian Economy General News: #6

    Post  magnumcromagnon on Mon Sep 14, 2015 8:53 am

    CYPRUS, RUSSIAN FRAUD INVESTIGATIONS CLOSE IN ON LEONID LEBEDEV – US BANKS ACCUSED OF MONEY LAUNDERING

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    Re: Russian Economy General News: #6

    Post  magnumcromagnon on Mon Sep 14, 2015 10:31 am

    Excellent write-up explaining why Russia's suspension from the G7 is a blessing in disguise:

    Revisiting The Russia & G7 Divorce: How Moscow Came Out On Top

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    Re: Russian Economy General News: #6

    Post  Vann7 on Mon Sep 14, 2015 3:59 pm

    I was always skeptic about the predictions of US economy collapse...
    Because Russian media have been saying that since 2008 ,into something much bigger..
    And the same said by Max  Keyser for years but nothing. .actually in this Economic
    Oil crisis it seems it helped the US dollar value ,while seriously damaging Russia..

    But now is not just RT media , but real respectable economist in the west..



    http://www.rt.com/business/315263-bubble-us-stock-markets/

    An American scientists who won the 2013 economics Nobel prize ...
    sounds like someone that knows something of economy and should be listened..
    is now saying the same.. that US economy is going to collapse at the level of 2008-2009
    at least.

    Now what the major difference is that there will be no China to give a loan to americans..
    because of the really bad relations between them.. and Neither Japan can give more loans they are really in debt.. Who is going to give a loan to AMerica? Germany? after all the damages Obama have done on its economy?

    I have to admit.. i never liked any topics about Economy.. i only like to spend money and thats it.. and have money to buy nice thing.. Laughing

    But now all this looks more and more interesting , since the economic warfare of Americans began on Russia.. watching that ruble go low and go high and go low and go high ,Ruble rebounce and stabilize. Is like watching a baseball game.. where one team is badly losing ,but in the final minutes tie the score cards and manage to the extend the game for several extra time..  Its like like world economy should be simulated in a Card Board game..  lol1

    Wondering if Economist and central banks have such game simulators where people can compete to sink the other side economy.  Is all really complicated.. The oil is low ,damage profits of Russia but because the Dollar is all time high and Ruble very low it benefits Russia.    Crazy indeed.. lol1   Then if Dollar is too high , gold value is low.. then Russia reserves are in RUbles and Euros.. so it needs to boost Euro value ..but at the same time sanctions on them on food imports to control the inflation.. then US hit China stocks..and china retaliates lowering the value of its currency.. and it cause some damage on US economy.  It looks like crazy complex many dimensions game.. to the world economy..  lol1    never tought it could be that interesting.. and whats make it more interesting is that i never though US economy could be
    touched.. since it have been said they can print all the money they want and never paid it debt.
    So it looks like Russia and CHina can play after all.. in the world economy. and keep playing.
    It looks in another sense like a poker game.  Smile

    Wondering if it would have been fun to become a trader /speculator in wallstreet. with my
    observations skills im sure will have done a lot of money..  Buy sell ,sell buy.. and repeat.. maybe im watching too much Movies.. like trading places ..anyone remember it?  Laughing


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    Re: Russian Economy General News: #6

    Post  sepheronx on Mon Sep 14, 2015 4:18 pm

    Since this is thread is about automotives and not economy, this post should be moved to the respective thread. But it is an interesting post none the less.

    Reason why people been saying that US economy will collapse is very simple two forms of evidence: (1) the amount of times US had to resort to Quantitive Easing and increasing debt limit to pay and (2) the evidence of US and Japan government helping each other purchase stocks for one another. In this case, both of these are simply government interfering in the market (so much for the concept free market) and pure money injection from out of thin air.

    But for whatever reason, the USD kept increasing even though they went the Zimbabwe route for their economy as of late. More to do with the currency being the world reserve one. Because many other currencies have dropped. And that is what it is.

    Can this charade last forever? If people just continue to follow through with all this, then yes. If people decide to abandon USD as a reserve and trade in their respective currencies, then no. So it really is up to the people and other countries. But US wont want that and will try to prevent that (maybe through war) in order to keep the status quo. If it all comes down on them, then they are in deep trouble. 1998 Russia (or worst) trouble.

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    Re: Russian Economy General News: #6

    Post  magnumcromagnon on Mon Sep 14, 2015 6:09 pm

    Estonian farmers protest the food embargo counter-sanctions by Russia...your gonna be protesting more when your gas privilege is cut off in 2019... Razz


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    temp conomy tred

    Post  Vann7 on Mon Sep 14, 2015 6:09 pm

    sepheronx wrote:Since this is thread is about automotives and not economy, this post should be moved to the respective thread. But it is an interesting post none the less.

    Reason why people been saying that US economy will collapse is very simple two forms of evidence: (1) the amount of times US had to resort to Quantitive Easing and increasing debt limit to pay and (2) the evidence of US and Japan government helping each other purchase stocks for one another.  In this case, both of these are simply government interfering in the market (so much for the concept free market) and pure money injection from out of thin air.

    But for whatever reason, the USD kept increasing even though they went the Zimbabwe route for their economy as of late.  More to do with the currency being the world reserve one. Because many other currencies have dropped. And that is what it is.

    Can this charade last forever? If people just continue to follow through with all this, then yes. If people decide to abandon USD as a reserve and trade in their respective currencies, then no.  So it really is up to the people and other countries. But US wont want that and will try to prevent that (maybe through war) in order to keep the status quo.  If it all comes down on them, then they are in deep trouble. 1998 Russia (or worst) trouble.


    Ops.. i thought i was posting it.. in the economy thread.. i agree should be moved there.



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    Re: Russian Economy General News: #6

    Post  Project Canada on Mon Sep 14, 2015 11:35 pm


    Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

    On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

    Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

    The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

    The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

    Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

    What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

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    Re: Russian Economy General News: #6

    Post  KoTeMoRe on Mon Sep 14, 2015 11:39 pm

    Project Canada wrote:

    Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

    On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

    Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

    The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

    The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

    Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

    What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

    Lel, the dude wants to replicate Finland...not bad, except for the suicides.

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    Re: Russian Economy General News: #6

    Post  JohninMK on Mon Sep 14, 2015 11:44 pm

    Project Canada wrote:

    Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

    On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

    Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

    The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

    The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

    Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

    What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?
    That plan would never get a go ahead in the West, it doesn't show results in 6 months. So, given the mess the West is in following its methods, I'd say its a pretty good plan that deserves to succeed. Its about time someone, apart from perhaps the Chinese, thought a few years ahead, not just until the next election or company result announcement.

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    Re: Russian Economy General News: #6

    Post  sepheronx on Mon Sep 14, 2015 11:47 pm

    JohninMK wrote:
    Project Canada wrote:

    Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

    On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

    Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

    The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

    The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

    Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

    What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?
    That plan would never get a go ahead in the West, it doesn't show results in 6 months. So, given the mess the West is in following its methods, I'd say its a pretty good plan that deserves to succeed. Its about time someone, apart from perhaps the Chinese, thought a few years ahead, not just until the next election or company result announcement.

    Glazyev usually has pretty good ideas in terms of economics.  But let us see if the government takes it into consideration.  There are far too many politicians out for themselves in the Duma so they will definitely go against this.

    He has some good ideas, but some bad ones too. I personally do not agree with Quantitative easing as it is essentially printing money. It is a false type of economic growth as well as it can cause further problems, but outside of that, some of his ideas are good. At least in what to aim the money at.

    So they could always take into consideration his ideas (as Psekov said, food for thought) and could ask him to re-do the document and maybe make changes to some other ideas like "work around the idea of no QE and also possibly on the revoking of VAT on exports".

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    Re: Russian Economy General News: #6

    Post  sepheronx on Tue Sep 15, 2015 12:54 am

    Media: Yandex shares surge after FAS decision on Google case

    Darn. Shoulda purchased Yandex stock.


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    Re: Russian Economy General News: #6

    Post  flamming_python on Tue Sep 15, 2015 1:33 am

    Project Canada wrote:

    Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

    On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

    Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

    The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

    The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

    Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

    What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

    I think it's unrealistic, it promises 6-7% industrial output growth per year but apart from some fluff terms and budget readjustments it doesn't offer anything new.
    Besides which investment into education and health care as a means of promoting economic growth will take decades to have an effect, not 5 years.

    Putin also promised 6% annual GDP growth when campaigning for re-election. I voted for him on that promise. He didn't hold it - we didn't get near that amount of growth. Of course now we have the Ukraine crisis and anything, but even in the 2-3 years before that, we were underperforming and not achieving much higher than 2% growth.

    In general I approve of government economic policy as it has the priorities in all the right places. Promoting industrialization and localization with a free-floating rouble, auto-manufacturing, revival of North Sea sealane, reforms and support for SMEs, focus on big infastructure projects, new railroads and motorways and logistics hubs, new spaceport in Vostochny, high-tech investment funds, consolidation of small state enterprises into larger corporations, promotion of Russian defence/nuclear/energy technology overseas, pipeline construction and new gas/oil field exploitation, support for the nascent wood-processing industry, banning of European agriculture and supporting domestic agriculture, pivot towards promising markets in Asia, Skolkovo and related ventures, free port initiative in Vladivostok, support for promoting tourism, anti-corruption drive, general lobbying for investment from Western and Asian multinationals, titanium valley and aerospace clusters, revival of shipbuilding, rainy day funds that accumulated oil wealth, Eurasian Union integration (even if it can be improved), World Trade Organization membership... and so on.
    We're basically doing all the right things, but as events (and our own inefficiencies) would have it - we haven't achieved the targets we set for ourselves and we aren't growing at our full potential.

    I think what's needed is to stay the course, shelve unsuccessful projects, expand the fruitful ones further, and keep looking for improvements to make. Like I said, so far a lot of the priority directions and initiatives sound promising; but they still need to be seen through.

    So in this light, you can see what my objections to Glazyev's 'plan' might be - what does he propose that isn't already being done? How does he intend to so radically change the situation so as to guarantee 6-7% industrial growth for the next 5 years?
    Sounds like a premature declaration built on the basis of immature and undeveloped vague ideas - reeks of populism IMO.

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    Re: Russian Economy General News: #6

    Post  Cyberspec on Tue Sep 15, 2015 8:08 am

    Russia first and foremost needs more workers if it's to achieve those sort of growth rates, since even during this current downturn, the unemplyment rate is pretty low


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    Re: Russian Economy General News: #6

    Post  sepheronx on Tue Sep 15, 2015 2:25 pm

    flamming_python wrote:
    Project Canada wrote:

    Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

    On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

    Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

    The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

    The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

    Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

    What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

    I think it's unrealistic, it promises 6-7% industrial output growth per year but apart from some fluff terms and budget readjustments it doesn't offer anything new.
    Besides which investment into education and health care as a means of promoting economic growth will take decades to have an effect, not 5 years.

    Putin also promised 6% annual GDP growth when campaigning for re-election. I voted for him on that promise. He didn't hold it - we didn't get near that amount of growth. Of course now we have the Ukraine crisis and anything, but even in the 2-3 years before that, we were underperforming and not achieving much higher than 2% growth.

    In general I approve of government economic policy as it has the priorities in all the right places. Promoting industrialization and localization with a free-floating rouble, auto-manufacturing, revival of North Sea sealane, reforms and support for SMEs, focus on big infastructure projects, new railroads and motorways and logistics hubs, new spaceport in Vostochny, high-tech investment funds, consolidation of small state enterprises into larger corporations, promotion of Russian defence/nuclear/energy technology overseas, pipeline construction and new gas/oil field exploitation, support for the nascent wood-processing industry, banning of European agriculture and supporting domestic agriculture, pivot towards promising markets in Asia, Skolkovo and related ventures, free port initiative in Vladivostok, support for promoting tourism, anti-corruption drive, general lobbying for investment from Western and Asian multinationals, titanium valley and aerospace clusters, revival of shipbuilding, rainy day funds that accumulated oil wealth, Eurasian Union integration (even if it can be improved), World Trade Organization membership... and so on.
    We're basically doing all the right things, but as events (and our own inefficiencies) would have it - we haven't achieved the targets we set for ourselves and we aren't growing at our full potential.

    I think what's needed is to stay the course, shelve unsuccessful projects, expand the fruitful ones further, and keep looking for improvements to make. Like I said, so far a lot of the priority directions and initiatives sound promising; but they still need to be seen through.

    So in this light, you can see what my objections to Glazyev's 'plan' might be - what does he propose that isn't already being done? How does he intend to so radically change the situation so as to guarantee 6-7% industrial growth for the next 5 years?
    Sounds like a premature declaration built on the basis of immature and undeveloped vague ideas - reeks of populism IMO.

    Good post Python. +1

    I figure that as most of the world is aiming at self reliance and concentration of domestic consumers, Russia will ultimately do that too through import substitution. Rest will be relied on sales of their energy end products, fuels, medical/construction materials, and heavy industrial goods for exports. These will become more important in the future as well since the aim is self development. I think that is what Russia is currently aiming for. Because, lets face it, domestic consumers account for more tha. 2/3 of Russias GDP, and they are the demand. Always will be. So concentrate on them, and you will be fine. As trade with outside will need to grow in order to grow money supply to increase spending for domestic users, it will have to be the status quo (due to issue of over production already).

    I forsee that until the transition takes place, Russia will have a lower GDP for some time. At least till the industries moving to import substitution starts making profit from their development costs. That will take roughly 5 years (that is what most economists are saying).

    Neutrality
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    Re: Russian Economy General News: #6

    Post  Neutrality on Tue Sep 15, 2015 3:15 pm

    magnumcromagnon wrote:Estonian farmers protest the food embargo counter-sanctions by Russia...your gonna be protesting more when your gas privilege is cut off in 2019... Razz


    And not a single f*ck was given that day. They all love to scream populistic slogans about "Russia bear will pay!" but when it comes down to things that matter we see the result in the video above. Forgive my inhumanity but I won't even care if Estonia, Lithuania and Latvia get flooded.

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    Re: Russian Economy General News: #6

    Post  Nikander on Tue Sep 15, 2015 5:14 pm

    Glazyev plan doesn't have anything in common with current suicidal economic policy of Russia. How his ideas are received by the liberals, with what rage they talk about him and any of his ideas is a testimony of that. At the same time people like him are the only chance Russia's got if it's to win this war that it's waged against her. Current economic policy is terrible, people talk about import substitution but that substitution is not actually happening. It's not happening because the Central bank and the government with it's dogmatic economic policy is not letting it happen. So if this goes on slowly but surely Russia will die out just like Soviet Union did and for the same reasons: DOGMATICISM. Of course that Putin couldn't deliver the promise of 6% growth, how could he if this certain economic policy preached by liberals has reached dead end and it simply can't achieve any significant growth anywhere on earth. Now what we have is a silly situation were Russia is continuing with this policy in a situation of sanctions like nothing happened. This was the wrong policy even before sanctions but how can you continue with it when those who are controlling the system are blocking you from doing it effectively in any way. I understood Putin position at the start, he didn't want to do any changes because he hoped that there would be some kind of understanding between the parties and life could go on like it was. But now is crystal clear to everyone that we are in pre WWIII stage and nothing of sort wold happen. Sanctions are here to stay, they will be reinforced even more and the only chance for their removal is if Russia beats them, if it shows to the West that it's becoming even stronger because of them. As long as West sees that sanctions are weakening Russia, and they are currently doing that even if not on a great level they will continue with their policy. Good thing is that I think that Putin understands that major changes need to be made but probably is waiting for something to happen so that he can act. I'm looking at Glazyev plan as preparing the public opinion and also the big shots for changes because Glazyev has been getting a lot of publicity lately so this wouldn't have happened if Putin is not taking him seriously. Problem for Putin is how to make necessary changes and at the same time keep oligarchs and so called loyal liberals from rebelling. He would like to make changes but keep them in the fold, persuade them that this has to be done because otherwise there will have to be a purge. Remember when Stalin had his purge, on the eve of WWII and the purge was aimed at Trotskysts. I see very similar situation unfolding here. There are no doubt that many liberals currently in the government, in the Central bank are secret traitors who would if let's say Khodorkovsky came to power immediately change sides, start working with great delight for the new pro western government and talk of Putin as if he is the biggest criminal the world have ever known. So changes will sooner or later, better sooner have to be made if Russia wants to survive. Will a purge be needed to do it that's to be seen.

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    Re: Russian Economy General News: #6

    Post  sepheronx on Tue Sep 15, 2015 6:01 pm

    What makes you think the import substitution isnt working? I have various links from sdelanounas showing import substitution is indeed working. It could be moving much faster than before but current policy is concentrating on paying foreign debt off first.  I dont agree with CBR and its interest rates but they are trying not to increase it while not increasing inflation.

    http://sdelanounas.ru/blogs/?search=импортозамещение

    The problem will be, due to interest rates being high, the companies who can afford import substitution will clearly be the larger companies. Rostec is one of the top 10 (or so) largest ogranizations, even in profits, so it will be them who will field far more import substitution and creation of new technologies in Russia. Gazprom and Rosneft for various supplies of paets for the oil and gas industries, Rosatom for the various energy technologies, etc. The other thing is foreign companies opening up shop in Russia. US and European companies opening up shops for manufacturing of furniture, automobile engines, pharma, auto parts, heavy industrial equipment, toolings, etc.

    I dont see how their economic policy is suicidle.

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    Re: Russian Economy General News: #6

    Post  sepheronx on Tue Sep 15, 2015 7:02 pm

    http://sdelanounas.ru/blogs/67060/

    In 3 months around 66 (at least those mentioned under sdelanounas) of import substitution (not new facilities and productions) approved/developed.

    So to say import substitution isnt happening is outright wrong. Just possibly slow.

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