The current state of the economy did not arise out of nowhere, but was the result of its not very effective transfer from the state of the administrative-command to the market model. For the sake of objectivity, it is worth recognizing that it was very difficult to transfer such a huge and clumsy locomotive to other rails. This is the peculiarity of the modern Russian economy, that it is easier to change the economic development model, for example, of the Czech Republic or Lithuania, along with their territory and GDP, than to do the same in Russia.
Life needs change
Since the beginning of the 90s, Russia's GDP has been steadily declining. From the privatization of the public sector, the budget was not actually replenished. There was an active export of capital abroad. For some time, the decline was slowed down by the depreciation of the savings of the population - from 90 to 92 years. the decline in economic indicators was not as strong.
At the same time, the features of the modern Russian economy are such that if we take the level of GDP as a benchmark1990, by 2011 it had tripled. Although from 1990 to 1999 there was an annual decline from 12% to 33%, and we approached the level of 1990 only in 2004.
A bright future has arrived
Real growth began by 2005. And the features of the development of the modern Russian economy are that until 1998 it was built under the dictates of the IMF. According to the recommendations of this respected organization, the main tools for managing the situation were:
- to fight inflation - reducing the money supply (non-fulfillment of obligations to budgetary organizations, non-payment of salaries, pensions, etc.);
- overvaluation of the ruble (which made domestic goods uncompetitive);
- financing the state budget deficit by issuing GKOs (state treasury bills, other government securities). The release peaked in 1998, how it ended - we know;
- high tax rates.
Inflation rates have decreased (but at what cost - it would be clear if we place the curve of demographic statistics for the same years next to it). And only in 1999, from the lowest point of GDP volume, stable annual growth began. After the default, the change of government and leadership of the Central Bank, the economic policy changed. These events influenced the features of the modern Russian economy. I had to start over.
Storming the market
The transition to the market formation of the ruble exchange rate led to its decline, which put the domesticmanufacturer in a better position. Such features of the modern Russian economy have attracted investments from abroad, made capital investments within the country profitable for domestic entrepreneurs. Over the years, Western transnational concerns have built factories in Russia.
The tax burden was reduced, the number of taxes was reduced. In 2002, the sale and purchase of agricultural land was allowed. These are the features of the market economy of modern Russia, which made it possible to ensure the growth of GDP and the expansion of the real sector. 2007 saw the largest GDP growth in 20 years.
Given these features of the modern Russian economy, Goldman Sachs experts said that Russia over the next 20 years can outperform the leading European countries in all economic indicators. Recall that GS is the largest bank included in the Dow Jones index.
