ECONOMIC RESULTS OF 2014-2016 AND A STRATEGY FOR GROWTH

Issue № 12, 2016, article № 2, pages 7-17

Section: Program-target management of development of agricultural production

Language: Russian

Original language title: ЭКОНОМИЧЕСКИЕ ИТОГИ 2014-2016 ГОДОВ И НЕОБХОДИМАЯ СТРАТЕГИЯ ДЛЯ РОСТА

Keywords: RUSSIA, ECONOMIC CRISIS, CAUSES OF CRISIS, ECONOMIC STRATEGY, ECONOMIC GROWTH, AREAS OF INVESTMENT

Abstract: The article analyzes the results of economic development of Russia for 2014-2016. It is shown that the fall in GDP and production, although slowed, but still has been continued. Investment and retail trade turnover are failing, which contributes to the continuation of the crisis. The decline in economic growth rates is observed since 2010. Positive dynamics is showed in agriculture and some other industries. The fall of the Russian economy is observed on the background of significant growth of the world economy. It is proved that the reasons for the negative development are not in the economic sanctions of the US and EU and not in reducing of oil prices, but in the wrong economic strategy. Incorrect is a lack of state investment in infrastructure to the prospective industries and restructuring the economy, in education and science, incorrect policy of the Central Bank which does not provide the necessary money inflow into the economy. The deregulation of the exchange rate and the rise in the key rate in December 2014 aggravated the situation and made the loans virtually inaccessible to the business for a long period. At the same time, a steady positive trend is observed in those industries where the government provides minimum support, such as in agriculture and agricultural engineering. The author links causes of erroneous economic strategy with the interests and lobbying of industries exporting resources. The government connects mistakenly its hopes for recovery from the crisis only with the increase of the oil prices, but not with the change of strategy. For overcoming the negative development, it is necessary to reform economic policy in accordance with the recommendations of science.

Authors: Epshtein David Berkovich