Russian post-crisis recovery approaches

Russia will completely recover from the global economic downturn by 2012, when its GDP growth rate is expected to reach the pre-crisis level, First Deputy Prime Minister Igor Shuvalov said.

On September 24th, Igor Shuvalov spoke at a State Duma session, presenting a report on the Russian government’s anti-crisis measures. Most of them are being successfully implemented, as the Russian economy started displaying some positive signs. One of the crucial tasks as of today is to create a favorable investment climate to attract more resources, necessary for economic modernization, the minister pointed out.

We accord special priority to encouraging more investment in the Russian economy and therefore focus on plans for establishing an international financial center and maintaining macroeconomic stability. The government will be able to create adequate conditions for foreign investors to simplify the modernization of our country’s economy.

Igor Shuvalov also made a point of the social trends in the Russian government’s actions.

Like no other country, Russia fully implemented some specific measures in supporting people. The personal income rate has been on the increase since last year. Apart from wages, people’s real disposable income has also grown by more than five percent in 2010.

Meanwhile, the Russian government has been repeatedly subjected to criticism in this respect. Some experts believe that this policy adds to the number of delayed economic problems. Igor Shuvalov does not share this view.

We proceed from the fact that the increasing personal income of people amid the crisis paves the way for a new wave of economic growth, based on a modified economic paradigm.

Members of the Russian parliament are pleased that the level of social security has not been reduced, according to Yevgeny Fyodorov, the Chairman of the State Duma Committee on Economic Policy and Entrepreneurship.

We can compare the economy of Russia with those of some European countries. Constant civil unrest there is caused by reduced wages and pensions, while in Russia incomes are growing and the unemployment rate is lower than in Germany, France, England and the United States. In other words, the Russian economy is rapidly recovering.

Russia’s anti-crisis measures also proved effective in the banking sector - the government prevented not only the collapse of the banking system, but also soaring prices. Until July, inflation was steadily decreasing, although the August heat wave triggered its growth. The effects of this summer’s marginal weather are visible but time-bound, Russian Central Bank Chairman Sergei Ignatyev said, adding that these effects may be completely exhausted by next year’s autumn.