Austin wrote:Kudrin estimated the damage to Russia from the militarized budget
Redistribution of expenses would increase the economy in 20-30 years by almost a quarter
The economy would already grow faster today, if the expenses of the entire state in 2011-2017. were distributed more efficiently, according to the article of the chairman of the Center for Strategic Research (CSR) Alexei Kudrin and director of the Center for International Trade Studies of the Russian Academy of Science and Technology Alexander Knobel.
Expenditure on education for this period decreased from 3.7% to 3.5% of GDP, for health and sports - from 3.5% to 3.3%, for security and law enforcement from 2.5% to 2.3%. But the defense grew from 2.5 to 3.1% of GDP, especially in 2014-2016: from 3.2 to 4.4%. According to the authors of the article, such a redistribution of costs annually deprives the economy of 0.3 pp growth rates.
In early September, Kudrin published an article that revealed part of Russia's development strategy until 2024, presented by the CSR to President Vladimir Putin. The key proposal is a budget maneuver: to increase spending on education, healthcare, road construction and transportation by 0.9%, 0.7% and 0.9%, respectively, while cutting spending on security forces (by 0.5%) and defense (by 0 , 3%). Such a maneuver Kudrin proposed back in 2011 in the strategy 2020. And if it was undertaken even then, for 5-7 years, an additional contribution to the growth rate of the economy would be 0.4 pp, for 10-15 years - 0.8 pp, and for 20-30 years this would increase GDP by 20-25%. This is the minimum provided only by the redistribution of costs, without reforms and increasing the effectiveness of institutions, explains Knobel.
Shut up Kudrin.
You had your seat at the head of the table. You did an alright job. Not great, not terrible, but alright. Yet here you're billing yourself off as some kind of oracle
Russia has moved on from you and your policies.
Investing into military procurement for Russia is a great means by which to drive industrial and high-tech growth. At this point in time. No-one says they're going to do it this way forever. The point is to use it as a boost, a stimulus.
Those same Almaz-Anteys, OmskTransMashes, etc... have all been given the task of deriving at least half their profits from sales to the civilian market by 2020-2025. And some have nearly achieved it already. While others are still in the process. But what I can say is that none of them would have had a chance of achieving it were it not for the massive amount of government orders that allowed them to invest into modernization and R&D of new products and technologies.
The shipyards that have been building the Admiral Grigoroviches, Steregushchys, Buyan-Ms, minesweepers, coast guard ships, logistics vessels and military tugboats are now going onto producing fishing trawlers, civilian icebreakers, oil rig platforms, tankers and even luxury yachts; many of these with an eye for the export-market in the medium-term. And none of this would have been possible without the Navy's orders over the last 6-7 years, and that time & money they spent regaining experience, taking on and training a new generation of personnel and modernizing their equipment.
Where did the Sukhoi Superjet come from? The MS-21? The prospective Ka-62 for the civilian market?
They all came from the same military design bureaus and factories (Sukhoi, Irkut, Kamov, etc...). True those enterprises were doing okay even without the military's orders, and got a head-start on civilian production well ahead of the others - but still, more money invested into them over the past 5 years through placing orders, has given further dividends in terms of their civilian production too.
So suck it up. Root-less cosmopolitan parasite.