Russian Economy Department
Discussion between Russian economy “healers” exacerbates. Nothing interesting but one should know what “forces” are pressing (for) what. Sputnik & Pogrom entered with a text which is stupid but tries to look serious. Kalashnikov says things in short, perhaps wrong or correct, but I “believe” he has thought his ideas deeper than S&P is stipulating. Evidently the text contains errors or wishful thinking. What’s more, it has “belolentochnoy” (white-ribbon aka liberal) tinge. If it’s not intentional manipulation.
What S&P draws out from a closet to support its views are mainly notorious Russian liberal errors. Those errors aka mismanagement or direct sabotage even, are to prove that Mr. Kalashnikov is wrong. Pathetic. It looks like S&P based its remarks on typical uber liberal Western economy which main goal is to squeeze out the last coins from all slaves. BTW. corporate capitalism is modern form of feudalism. If you do not know who benefited in Russia from the existence of the damn bloody beast, search for this blog for Forbes’ list of Russian billionaires.
Of course, Mr. Kalashnikov may be wrong here and there so his proposals should be discussed and I do not think Mr. Kalashnikov is not opened to other views and ideas. So pay attention to that such discussions should be led by people knowing economy from within (having own businesses), not only by “career economists” (or by academicians – I will get back to the thread in one of the next posts). I cited only excerpt but the text is not long so you may read in full.
From: etoonda, 2016-02-25 22:03:00
– “The other day a famous writer Maxim Kalashnikov has published an article “Ten steps from the abyss”, which proposed measures to combat unfolded in Russia’s economic crisis. With the idea that “the government cannot do anything to overcome it”, it is difficult to disagree. However, the steps put forward by Mr. Kalashnikov, the crisis can only deepen. And for this position there’s a good reason.
Maxim Kalashnikov also proposes “to withdraw Russia from world trade organization (WTO) and to start building measures… selective protectionism”. Surprisingly, Mr. Kalashnikov does not notice that this recommendation is already implemented.
Printing press – a favorite toy of all Russian dirigiste, and Mr. Kalashnikov here is not an exception. To print more rubles and give them to state-controlled banks to lend to industry – that is the dream of ideologically close Glazyev economists.However, Glazyev companions for some reason I keep forgetting about the experience 1992-1994, when at the helm of the Central Bank was Viktor Gerashchenko, who posed centralised loans to address industrial and agricultural enterprises, which resulted in four (2508,8% in 1992) and three-digit inflation (840% in 1993 and 214,8% in 1994). Economic growth that does not help: it became stable only in 1999 that had reached macroeconomic stability.There can be no growth in conditions of hyperinflation, which is inevitable when uncontrolled emission – this is one of the lessons of the 1990s.
What the world despises the reforms of the first post-Soviet decade, it is clear from his proposal to create a Commission to investigate “the investigation of illegal privatization of strategically important and resource companies in the 1990-ies (especially on secured auction 1997-1998) and on the nationalization of their assets”. Unfortunately, Mr. Kalashnikov is mistaken: Deposit auctions, in which in private hands were transferred to the enterprise, took place in 1997-1998, and in November-December 1995.The number then of privatized assets (in particular, oil company “Yukos”) were subsequently nationalized, and their owners put in jail.
In other words, the desire of Mr. Kalashnikov long ago became a reality. After purchase “Rosneft” “Yuganskneftegaz” have been subjected to nationalization of the oil majors (“Sibneft” and “TNK-BP”, “Bashneft”), financial institutions (“Guta-Bank”, “KIT-Finance”, “Troika-dialog”), and real estate development company (“Sistema-gals”). Was the economy better? (…)“