Anders Aslund of the Peterson Institute for International Economics has written about the problems that Russia has generating economic growth
The annual Gaidar Forum, held last week in Moscow, is a good occasion to assess the country's economic state of affairs. Russia's economy and politics are marked by what optimists call stability and what pessimists call stagnation.
Prime Minister Dmitry Medvedev claimed that Russia's economic growth sources have been exhausted, and he introduced the idea of Russia being in a "middle-income trap," drawing on an academic paper by the Berkeley Professor Barry Eichengreen. Medvedev was concerned with the sudden slowdown in economic growth, which is common to countries that have reached middle incomes, such as Russia and Brazil.
Sensibly, Medvedev emphasized that the causes were primarily domestic in nature. Russia risks losing out when competing with more advanced economies because of insufficient institutions and high costs in less developed economies. It needs to improve the quality of its labor, management, health care, pension system and, most of all, its institutions. Yet as usual, Medvedev ended with only minor proposals for improvement, notably in the business environment.
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The annual Gaidar Forum, held last week in Moscow, is a good occasion to assess the country's economic state of affairs. Russia's economy and politics are marked by what optimists call stability and what pessimists call stagnation.
Prime Minister Dmitry Medvedev claimed that Russia's economic growth sources have been exhausted, and he introduced the idea of Russia being in a "middle-income trap," drawing on an academic paper by the Berkeley Professor Barry Eichengreen. Medvedev was concerned with the sudden slowdown in economic growth, which is common to countries that have reached middle incomes, such as Russia and Brazil.
Sensibly, Medvedev emphasized that the causes were primarily domestic in nature. Russia risks losing out when competing with more advanced economies because of insufficient institutions and high costs in less developed economies. It needs to improve the quality of its labor, management, health care, pension system and, most of all, its institutions. Yet as usual, Medvedev ended with only minor proposals for improvement, notably in the business environment.
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