Arab Today, arab today mission impossible ii putin\s economic challenge
Last Updated : GMT 11:13:46
Arab Today, arab today
Arab Today, arab today

Mission Impossible II Putin\'s economic challenge

Arab Today, arab today

Arab Today, arab today Mission Impossible II Putin\'s economic challenge

Moscow - AFP

In five years time, Russia will be one of the top five economies in the world with growth of up to seven percent based on a thriving and innovative business sector. Russian strongman Vladimir Putin vowed to make this vision of economic transformation -- until now a distant dream -- a reality when he announced he would stand for a second stint as president in March 2012 elections. But economists this past week questioned Putin\'s appetite for reform after moves to encourage business and end dependence on oil came to a standstill in his first presidency from 2000-2008, especially from 2004. Putin had been able to boast of propelling Russia to stellar growth rates up to the 2008 crisis after its 1998 financial meltdown but these were driven largely by high crude prices rather than the fruits of economic change. \"Putin said these words but I have a feeling that I have heard this all before,\" said Yevgeny Yasin, a Russian economy minister in the 1990s and now director of research at Moscow\'s Higher School of Economics. Shortly after Putin first rose to the Kremlin in 2000 after the shock resignation of Boris Yeltsin, his reformist economy minister German Gref presented a \"Strategy 2010\" for wholesale change of the economy in the decade. \"If you ask me what needs to be done now, I say take the Gref programme and carry it out. They say it has been fulfilled to 35 percent, for me no more than 15 percent. On many questions there has been no progress,\" Yasin told reporters. President Dmitry Medvedev, who is to stand aside for Putin and swap jobs to become prime minister after the elections, embarked on a much-trumpeted modernisation programme that has so far failed to make headway. But reform has historically been tough in Russia. The reforms of tsarist-era prime minister Pyotr Stolypin ended with an assassin\'s bullet in 1911 outside the Kiev opera while efforts of Russia\'s post-Soviet reform champion Yegor Gaidar made him a public hate figure. Stalin\'s massive industrialisation programme of the 1930s was pushed through with a horrific cost in human life while the Soviet Union after World War II settled into stagnation until the perestroika of Mikhail Gorbachev. On the surface Russia has a relatively stable economic position in 2011, in particular a narrow budget deficit forecast to be just one percent of GDP this year that is the envy of its debt-ridden European partners. But investors have repeatedly diagnosed ills that could spell major trouble -- chronically low labour productivity, a lack of business activity outside the energy sector, overspending on pensions and still endemic corruption. An immediate cause of concern is the amount of money investors are taking out of Russia at a time of renewed economic uncertainty with net capital outflows of more than $30 billion in the first half this year. \"In his 12 years in power, Putin was for four years a reformer and then he went into stability, stagnation mode,\" Sergei Guriyev, rector of the New Economic School told a conference organised by Rennaisance Capital. \"We don\'t know which Putin we will see in the next years.\" Credibility in Putin\'s reform agenda was immediately eroded with the ousting of finance minister Alexei Kudrin, the government\'s last remaining holdout from the liberal reform era who had served in his post since 2000. Kudrin succeeded in decimating Russia\'s national debt as well as building up massive reserve funds that helped the country overcome the potentially dangerous 2008 economic crisis. The finance minister broke ranks with Medvedev\'s plan for a 20 trillion ruble ($620 billion) military spending programme which he said created budgetary risks that would \"extend to the entire domestic economy\". He also appeared unimpressed with Russia\'s future political construction. \"On September 24 the structure of power in our country was determined for the long term. I have also determined my future,\" he said in a bitter parting shot. Kudrin was seen as a talismanic figure in the markets -- not only was he a liberal with an acute understanding of Russia\'s problems, but he also had the ear of Putin, an old colleague from Saint Petersburg. In his place, Putin appointed two men -- little known finance ministry bureaucrat Anton Siluanov as finance minister and First Deputy Prime Minister Igor Shuvalov as the government\'s economic pointman. Shuvalov, who is already overseeing some of the government\'s biggest spending projects, is not seen as sharing Kudrin\'s fiscal hawkishness. \"His abrupt resignation creates a risk of substantial deterioration in Russian budget discipline, which is particularly dangerous in the event of a crisis,\" said Alfa Bank economist Natalya Orlova. Nevertheless the Kudrin era may not be entirely over. Some observers predicted a rapid comeback at the central bank and despite his angry dressing down from Medvedev he is holding on to jobs on official commissions.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today mission impossible ii putin\s economic challenge Arab Today, arab today mission impossible ii putin\s economic challenge

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday