February 1st, 2013

Vladimir Putin has commissioned Soviet-era academics to develop a dirigist economic program

The report titled “On a Set of Measures to Ensure Russia’s Stable Development under Conditions of Global Instability” will be prepared by a group of academicians chaired by Vice-President of the Academy of Sciences Alexander Nekipelov, recently accused in plagiarism. This report was preceded by the memo of Sergey Glaziev, newly appointed President’s adviser known for his radical economic views.

Sergey Glaziev knows magic recipe for economic growth

Sergey Glaziev doesn’t believe in efficiency of capital markets and argues that only the government-led investments could foster a technological breakthrough. He warns that western investors’ shouldn’t be welcomed because they often act according to the political and military interests of their homelands.

Comparing with his new adviser, Vladimir Putin can portray himself as a liberal. Soviet-era PhD Sergey Glaziev is qualified enough to present his orthodox ideas in a scientific way. Kondratiev waves will be instrumental in justifying nationalization while Leontief’s Input-output model will help to explain any extravagant government investments.

However unusual Glaziev’s rhetoric is, the real economic policy won’t change much. The fortune of the President’s friends will continue to grow. Government expansion means new profitable contracts to them. Putin’s appointees will continue to manage state-controlled corporations as if they were their own property. By including Sergei Glaziev to a short list of candidates for a high-profile job of Bank of Russia Chairman, Vladimir Putin demonstrates that he has an alternative to the liberal-minded economists in the Medvedev’s government.


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