MOSCOW — Russian President Vladimir Putin believes that Russia’s transition to a digital economy based on private investment will allow it to 2020 to get on leading global indicators growth rates.
“The economy is entering a new growth phase, forming the basis for its future development. We need to support, accelerate these positive trends at the turn of 2019-2020 to go to a higher rate of economic growth above the world”, — Putin said at a plenary meeting of the International economic forum in St. Petersburg.
Putin first spoke at the St. Petersburg international economic forum (SPIEF) in 2005. Since then, the SPIEF has become the main economic forum of Russia — on it, as has been said the officials discussed the main problems of the country, and are invited to participate international experts, investors and official representatives of other States.
Following are the statements of Putin and Dmitry Medvedev, who served as President from 2008-2012, at the International economic forum in St. Petersburg.
The investment CLIMATE
2006 (Putin)
Necessary from the point of view of ensuring the national interests limitations for investors should be as transparent as possible. It is important that under the guise of protecting national security was not created unreasonable barriers for foreign investors.
2007 (Putin)
It turns out, is not always foreign investment is seen as beneficial, and sometimes to foreign participation is practically closed sectors such as infrastructure, telecommunications, energy. Russia, by contrast, intends to build the most favorable regime for foreign investors.
2009 (Medvedev)
Active in competitive conditions, the entrepreneurial class, which is in the developed countries the basis of the economic success, is what we need today is critical. It is this success of the modernization we would like to see in practice in a few years.
2010 (Medvedev)
Russia needs a real investment boom. Creation of comfortable conditions for investors, in fact, is our most important task. But today we put this task in the centre of our actions.
2012 (Putin)
A key issue of public policy we believe the creation of not just favourable, but truly better and more competitive investment climate. And by the end of this decade Russia should enter the top twenty countries with the most comfortable business environment.
We need to increase the amount of investment by 2018 to 27% of GDP. I think that is absolutely a realistic goal, keeping in mind that today we have 20 percent.
2013 (Putin)
Our key priority is improving the business climate. This task should run everything from small town mayor to a Federal Minister, from a local policeman to the head of law enforcement body.
We do not divide those who create the production in Russia and jobs in the domestic and foreign businessmen, friends and foes. We value those who do business, and we strive to create for people is not just good but the best conditions for work.
2014 (Putin)
The investor should not wait, the most favorable conditions for work need it today, not sometime in the future.
Improving the business climate directly depends on regions and municipalities where investors come with their specific projects.
2015 (Putin)
Our position is to create the most available, predictable, enabling environment and opportunities for investors to invest in Russia profitable. I consider it expedient to create in each region a special headquarters and project offices — which will become a kind of administration of the development, will ensure the implementation of the best mechanisms for creating favourable investment climate.
2016 (Putin)
We will continue further liberalization and improvement of the business climate. We will solve the systemic problems, which is still enough. We need to dramatically reduce opportunities for illegal criminal prosecution. Representatives of power structures should be held personally responsible for inappropriate actions that led to the destruction of the business. I believe that this liability may be criminal.
2017 (Putin)
Most important, of fundamental importance for entrepreneurs, for all citizens have effective protection of their rights, their businesses, their property. In this regard, I would like to say that the coordinated package of proposals for improving the judicial system. It was discussed and dealt with experts, with the leadership of the Supreme Court…
To ensure a higher rate of growth of the economy, we need to significantly increase investments in transport, energy, communications and other infrastructure. Source additional investment that it should be private capital. But here, the limiting factor remains the high level of risk.
Therefore, it is important to establish clear, stable rules that protect the interests of investors.
DEVELOPMENT STRATEGY
2006 (Putin)
The Russian economy is not allowed very many system problems. Mean is still relatively high inflation, monopolization of some sectors of the economy, bureaucratic barriers and, unfortunately, corruption. However, I am confident of sustainable economic growth and our persistent actions to address the challenges before us will allow Russia to occupy a worthy place in the international division of labour.
2008 (Medvedev)
The priorities laid down in the so-called concept of four “And” we have already begun to implement to achieve long-term development goals, namely the formation of the comfortable life of the people of society, providing the leadership position of Russia in the world. These four “And” well known: institutions, infrastructure, investment and innovation.
2009 (Medvedev)
Our task today is the formation of intellectual, if you want a smart economy and the society as a whole. This implies significantly more high quality of life, and the prevalence in society of the middle class, the ability to change rapidly and respond quickly to the changing world.
2010 (Medvedev)
Russia should become the attractive country where you will seek people from all over the world in search of their special dreams, in search of better opportunities for success and self-realisation which Russia can give all who is ready to take on the challenge and love Russia as their new or a second home. Those are the goals of our modernization.
2011 (Medvedev)
Our main actions will focus on the following objectives: to radically improve the investment and business climate with the aim of creating high-performance jobs in all regions of the country; qualitative progress in the fight against corruption; the establishment of a modern police and other law enforcement agencies; enhancing the effectiveness of the judiciary; finally, the modernization of the public administration, the introduction of a new approach and decentralization of authority.
Corruption, closure to investment, excessive government role in the economy and over-centralization are those “taxes on the future” that we have to cancel, we cancel.
2012 (Putin)
Our goals: this consolidate Russia’s natural competitive advantages, the development of new opportunities in the global economy, stable national development, it is an effective state in the service of man and society, law enforcement and the judicial system, which enjoys the unconditional trust of citizens.
We have formed a programme of ambitious reforms in the years ahead. We have everything to achieve our goals: talented, educated people, the political will and determination to make a difference, to change the country. We do not put off for later — we act.
2013 (Putin)
The strategic course we have chosen, will remain unchanged. The widespread introduction of advanced technologies that determine the quality of life, financing investments, including in human and especially in human social development, the establishment of industries with high added value, and therefore, the development of new, modern jobs. All the priorities… of our internal socio-economic policy.
2014 (Putin)
Russia needs a real technological revolution, a serious technological renewal, we must have the most massive over the past half century technological re-equipment of our enterprises.
2015 (Putin)
We are now once again focused on system tasks, for long-term development agenda. Our objective is to ensure sustainable growth, improving the efficiency of the economy, productivity, investment. Our priorities are improving the business climate, preparing the workforce for the economy and public administration, education, technology.
2016 (Putin)
The most important factor which determines the overall competitiveness of the economy, the dynamics of markets, the acceleration of GDP growth, higher wages is productivity. We need productivity growth in large and medium-sized enterprises in industry, construction, transport and agriculture — not less than 5% per year.
2017 (Putin)
The digital economy is not a separate industry, in fact, is the Foundation that allows you to create a qualitatively new model of business, trade, logistics, manufacturing, changes the format of education, health, public administration, communications between people, and therefore sets a new paradigm for the development of the state, economy and society.
In this logic we will build our economic and technological policy, industry, infrastructure, to form an open, free business environment and flexible labour market, to solve problems, to ensure long-term growth. Now we can say that the economy had entered a new phase of growth.
DIVERSIFICATION OF THE ECONOMY
2005 (Putin)
Efficient use of natural resources is not a sufficient condition for sustained economic growth and even just a distraction from addressing the key issues of development. Therefore, one of the most important goals remains the restructuring of the economy and as a consequence create plants that produce high quality and marketable products.
2009 (Medvedev)
Russia has not escaped the current crisis because of its global nature. I must admit that many of his tendencies is even more acute. This is due to the obvious flaws in the structure of the Russian economy to overcome that in recent years, since the reform, we, unfortunately, did not. I mean clear of the notorious dominance in the structure of our exports and in the financial markets companies that deal only with the extraction of raw materials.
2010 (Medvedev)
Over the next decades is our plans — Russia should become the country where well-being and quality of life of citizens is provided not so much at the expense of raw sources, how many intellectual resources: innovative economy creating unique knowledge, export of advanced technologies, export of products of innovative activities.
2011 (Medvedev)
We understand that without a victory over corruption, without the effective public power, without a qualitative financial system we will not overcome excessive raw dependence and achieve a higher quality of life.
2012 (Putin)
The economy is still not diversified. A significant part of added value created in the commodity sectors of the economy. A large proportion of non-competitive old plants and maintained a high level of Russia’s dependence on oil prices.
That is why Russia needs not just a balanced budget but a budget with a margin of safety, calculated on the oil and gas income. So in the near future will adopt a new fiscal rule.
© RIA Novosti Maxim Blinov | go to fotomasterskie international economic forum
2017 (Putin)
Thanks to the excellent schools in mathematics, theoretical physics, we are able to achieve leadership in several areas of the so-called new economy, mainly digital. Russian IT company is definitely globally competitive. Domestic experts not only offer the best unique software solutions and, in fact, creating new knowledge, new environment for the development of economy and life.
ECONOMIC GROWTH
2005 (Putin)
We cannot be satisfied with the pace of economic growth in the country. However, our achievements in the economy allow many citizens to improve their livelihoods and businesses — to form and implement investment projects.
2006 (Putin)
Nobody doubts that Russia’s economic growth is among the leaders. The volume of GDP at purchasing power parity exceeds one and a half trillion dollars.
2010 (Medvedev)
While the rate of growth, economic recovery, maybe not as inspirational as we would like, but it’s still has decent numbers. We need to increase our efforts.
2011 (Medvedev)
We should not delay parting with many addictions, we are wrong to focus only to calm and measured growth, it was a mistake. For the notorious stability could hide another stalemate, so you need to quickly and decisively change everything that prevents proryvnom development.
2012 (Putin)
The growth of Russia’s GDP in 2011 and 4.3 percent. This is the highest rate among the major economies of Europe and one of the highest among major economies in the world. Us ahead of the major economies, only China and India.
2013 (Putin)
For us the task number one is to create in Russia conditions for sustainable economic growth. Economic growth should be based on three pillars: increased productivity, investment and innovation.
2014 (Putin)
Russia faces a General slowdown in economic growth. Causes are both external and internal. For system imbalances accumulated in the economy inefficiency, one-sided development. The meaning and logic of our actions is to provide qualitative changes in the national economy.
2015 (Putin)
At the end of last year we predicted a deep crisis. This did not happen, we stabilized the situation, put out negative market fluctuations and are confidently passing through the period of difficulties, primarily because Russia’s economy has accumulated a sufficient reserve of inner strength.
2016 (Putin)
We are aiming to get on the pace of economic growth not less than 4 percent per year. Today we are talking about a more modest numbers. It is not so high targets that we outlined several years ago, but the situation has changed not only Russia, but of the entire global economy.
2017 (Putin)
Today, a situation where the investment growth exceeds the GDP growth is another indication, as already said, the economy is entering a new growth phase, forming the basis for its future development. We need to support, accelerate these positive trends at the turn of 2019-2020 to go to a higher rate of economic growth above the world.
TAXES
2010 (Medvedev)
Under favorable conditions, the recovery of the global and Russian economy in the coming years we will return to the question of General tax cuts for business. Of course, if all will develop in a favorable scheme.
2013 (Putin)
Tax policy should work to promote development, encourage investment, modernization of existing and opening of new facilities, the creation of quality jobs. Therefore, shaping our tax policies, we believe that even hard budget constraints for state — this is not a reason to increase the tax burden on businesses.
2015 (Putin)
We made a fundamental decision: for the next four years to fix the tax rate not to increase the fiscal burden on business so that companies could plan for the medium term. Will stick to this principle regardless of external conditions or the load on the budget.
2017 (Putin)
As for taxes, I propose to extend the exemption already provided for in income tax (for special investment projects) for the period after 2025.
PRIVATIZATION
2005 (Putin)
It is obvious that excessive government involvement in economic life can become a brake on entrepreneurial initiative. We went through this on my own experience. However, the government cannot completely wash its hands, because there are economic areas where its presence is justified and due. Primarily mean private infrastructure, the military-industrial complex.
2011 (Medvedev)
We are not building state capitalism. The state does not need such a large amount of property. I think reasonable refusal from control, and in some cases blocking stakes in many large companies today are in state ownership.
2012 (Putin)
The state will gradually withdraw from a variety of industries and assets. The plan of privatization of Federal property will be executed.
But it must be a fundamentally different privatisation, which has nothing in common with practice of mortgaging auctions and the other doubtful transactions widely applied in 90-e years when the state-owned assets created by previous generations of our citizens, was acquired due to the proximity to administrative resources, due to the proximity to power for too low a cost, and often at the same time — and with the state the money.
2013 (Putin)
Privatization will be gradual, focusing on the quality of deals and by selling assets at a truly competitive, fair prices.
THE RUBLE INTERNATIONAL FINANCIAL CENTRE
2007 (Putin)
Russia will continue the policy aimed at increasing the attractiveness of our national currency, the rouble, our financial market and banking system. Timely and the question of switching to ruble payments in export of goods from Russia — naturally, in those cases where it is beneficial to suppliers and buyers.
2008 (Medvedev)
The transformation of Moscow into a powerful global financial center and the ruble into a leading regional reserve currencies — here is the key components designed to ensure the competitiveness of our financial system.
2009 (Medvedev)
Our goal is to make the ruble more attractive, convenient, reliable means of payment for our companies, for our neighbors, for anyone who would like to use it in their calculations.
The most important direction for us is to strengthen and improve the work of the national financial system eventually exit to the establishment of a strong international financial centre. The crisis has at least made this task more urgent.
2010 (Medvedev)
Lately we have intensified our work on formation in Russia the international financial centre. The development of the Moscow financial centre, I hope, will significantly strengthen the position of the ruble as a possible reserve currency. From the General ideas of the use of the ruble in the calculations we have already switched to the elaboration of the relevant details with our partners.
2011 (Medvedev)
More active use of ruble, yuan and other developing currencies in the global markets, obviously, will make world currency system of more flexible and comfortable for investors.
We need not just fine plans but also significant progress in establishing the financial centre in Moscow. For this, many important changes in the legislation will be introduced this year.
2012 (Putin)
We will also continue working to establish Moscow as an international financial centre. Here we are not chasing illusions — we proceed from realities.
CORRUPTION
2009 (Medvedev)
The economy, which are infected with corruption, which is dominated by an inefficient bureaucracy, modernization can not create.
2011 (Medvedev)
The noose around the neck korruptsionerov should be compressed constantly and inevitably. You need to squeeze out everyone who spits on the law, on order and on their conscientious and honest colleagues, and there are many such people, unfortunately.
2012 (Putin)
Corruption, unfortunately and without exaggeration the biggest threat to our development. The risks are even worse than the fluctuation of oil prices.
Need to talk about it and seek solutions for the problem. Of course, we will do so, including by attracting to the civil service people with different motivations, professional and efficient managers.
RUSSIA IN THE WORLD
2006 (Putin)
Russian companies have become full participants in international cooperation and are already beginning to invest their capital in major international projects.
2007 (Putin)
In the interests of sustainable development it is necessary to form a new architecture of international economic relations — relations built on trust and mutually beneficial integration. We are interested in expanding Russian investment abroad in the future and also in exchanging assets with international partners on mutually beneficial terms.
2008 (Medvedev)
Russia today is a global player. And, realizing its responsibility for the fate of the world, we want to participate in forming new rules of the game, and not from-for notorious “Imperial ambitions” namely because they have public and relevant capabilities and resources to do so.
2009 (Medvedev)
I believe that in the conditions of crisis the path of development, we are able to build a new framework for relations with the European Union, economic relations with the United States of America, with our closest neighbors — the CIS States that are members of various integration associations, because after all of the troubles you need to escape together.
2010 (Medvedev)
Russia has long been ready to join the WTO and accession to OECD. Also the creation of the Customs Union of Russia, Kazakhstan and Belarus, further movement towards a single economic space is our conscious choice to work in a competitive environment.
2011 (Medvedev)
Without an open economy we will fall and hit very painful. We are therefore lowing the barriers for foreign investment and hope to complete the process of Russia’s accession to the WTO, and then to the Organization for economic cooperation.
2012 (Putin)
Openness, integration into the international economic processes is our primary choice. We have not abandoned him during the trials of the crisis, we can’t change it now, including ramping up Russia’s accession to the Organization for economic cooperation and development.
We need to remove barriers not only for trade but also for mutual investments, for the implementation of major transnational projects which involve exchanges of assets and technology.
2014 (Putin)
Isn’t it obvious that economic sanctions as a tool of political pressure in the modern interdependent world have a boomerang effect and ultimately affect the business and economies of countries that initiate them?
See serious prospects for cooperation between the Eurasian economic Union with the EU. Europe is our traditional, important trade and economic partner. We sincerely want this to continue.
2017 (Putin)
Before us is a systematic, long-term challenges whose consequences it is difficult even to calculate and predict. And we have no right to waste, to spend time and energy on squabbling, strife, geopolitical game.
We need wisdom and responsibility, the joint search for innovative solutions, new forms of interaction between States, regional integration organizations, business, scientific community.
It is necessary to maximally use the potential of a unique and universal organizations like the United Nations.
