Prosperity for the few

“In fact, the Russian economy is stable, primarily due to the oil. The government saves money, President Putin wants to rise to the global elite. But many Russians can survive only through illegal employment”, – the journalist writes the German publication Süddeutsche Zeitung of Silke Bigalke.

“Several times a year the Russian President Vladimir Putin has the ability to act as a caring head of state. Most often, he says, primarily about the economy, for example, on an annual straight line or in the message to the Federal Assembly. Ready with a lot of numbers, all they have to show how well it was going, and soon will be even better. (…) He speaks of his “national projects”, with which he would like to restructure the Russian economy, but that is understandable not every Russian citizen,” – says the article.

“In the audience of Putin for the most part, other concerns, says the author. – People feel that the Russian economy is in stagnation in 2014, its revenues every year they can afford less. Besides, with the beginning of the year they pay 2% more VAT. But the majority will have to work five years longer before they are to retire.”

“The Russian economy is growing too slowly, and Putin is in a difficult position. After all, he could activate the growth of not shaking the system to which he owes his power, – said Bigalke. – The Russian economy is suffering primarily from three things. First, sanctions imposed in connection with the annexation of Crimea and war in Eastern Ukraine. But, according to the IMF, they have less impact on growth than the second reason: the price of oil collapsed in 2014 and reaching for a ruble. (…) The third reason is the government’s reaction to these problems: it saves money, saves reserves, and maintains a low level of debt”.

“Thanks to the savings and oil revenues, the Russian government is not lacking money. (…) This year the volume of national welfare Fund is likely to exceed 7% of GDP. All that will be in excess of this amount the government can spend at its discretion. Already, speculation built about who will benefit from them. Most often it is a small circle of confidants of Putin and influential people, often associated with the army or intelligence services, on which it depends” – indicates the edition.

Large government contracts in Russia are mainly state companies, continues publication. “These large enterprises control most of the Russian economy – and they are guided by a few oligarchs, Putin accountable”. While private companies are often simply not competitive. “As a result, the private sector reduced the number of well-paid jobs, fall and revenue.”

“Therefore, the Russian economy is stable, primarily because the people help themselves. Many Russians staying afloat due to illegal employment, for example, work drivers, repair cars or rent your garden to rent as a Parking lot. According to the IMF, this grey area is more than a third of the Russian economy. (…) With the help of part-time work, many Russians escape from poverty.”

“The liberation of the economy from the state and promoting competition would weaken Putin. Civil servants – the most reliable base of supporters for their votes he can rely on the elections. At the same time his power relies on those who got rich through his system. They eventually are, perhaps, the main problem of the Russian economy, in which effect is more important than competitiveness: although influential entrepreneurs and solve their disputes in court, but this is not happening in the fair, and in the acquisition processes. Whoever tried to cross him is in danger of ending up in prison,” writes the Süddeutsche Zeitung.

© 2019, paradox. All rights reserved.