ALEXEY VEDEV: INFRUSTRUCTURAL PROJECTS LOOK EXCELLENT ON PAPER BUT THEIR IMPLEMENTATION IS SOMETHING DIFFERENT
Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute and former Deputy Minister of economic development, shared his views with The Christian Science Monitor on whether Russia, which has long been under severe economic constraints, can secure access to a more dynamic economy.
During six recent years, Russia carried out an austerity policy in order to protect their economy against double blow resulted from low oil prices and Western sanctions. Currently, Russia announced that government expenditures will be increased by 10% this year and more in the coming years striving to solve such social issues as poverty and low birth rate hoping that investing higher amounts of money in consumers will provide a boost to Russian economy.
Alexey Vedev said: “I always failed to understand, why the former government insisted on safekeeping of accumulated budget surplus.” “The former Cabinet of ministers managed to save money properly rather than invest it.”
Expert continued: “Investment in the human capital is always a good idea.” “However, it is critical how this is done. We expect to see a real strategy. Though, the effect will be of a limited nature in the absence of structural reforms.”
Regarding the vast infrastructural program amounting to USD 410 million Alexey Vedev notes: “Infrastructural projects are ambitious. They look excellent on paper, however, their implementation is something different. Figures prove that up to half of funds involved in these projects are stolen. Therefore, officials responsible for the funds are extremely cautious disbursing them. After all, they could wind up in jail.
Full text of the article could be found here.
Alexey Vedev said: “I always failed to understand, why the former government insisted on safekeeping of accumulated budget surplus.” “The former Cabinet of ministers managed to save money properly rather than invest it.”
Expert continued: “Investment in the human capital is always a good idea.” “However, it is critical how this is done. We expect to see a real strategy. Though, the effect will be of a limited nature in the absence of structural reforms.”
Regarding the vast infrastructural program amounting to USD 410 million Alexey Vedev notes: “Infrastructural projects are ambitious. They look excellent on paper, however, their implementation is something different. Figures prove that up to half of funds involved in these projects are stolen. Therefore, officials responsible for the funds are extremely cautious disbursing them. After all, they could wind up in jail.
Full text of the article could be found here.