Russia in Global Economic Space: Economic (Stagnation) of President Putin (Part I)

Abstract

2002 Russia, as well as all economic space comes to an end, has not the best times. Natural cataclysms and technocratic accidents, instability in the world financial markets, the common falling of productivity, absence of uniform strategy at governmental and business circles after tragically events in Washington and New York on September 11, 2001, global terrorism and antiglobalism, the virtual companies and dishonest and dirty games in economic - all this accompanies our today's life. Within last three years the economy of Russia grew fast rates though rates of growth were reduced year by year. This tendency has proceeded in first four months of the current year when rates of growth of industrial production have decreased to 3 percent, and growth of investments up to 1,2 percent. The opportunity of increase of use of the capital and a labour after the long period of recession and crisis of 1998 guaranteed high rates of growth and significant improvement of productivity. Nevertheless, the aggregated data speak that the ceiling of improvement of a level of use of capacities and a cumulative labour will be soon achieved. Hence, the subsequent growth will be based in the greater degree, most likely, on investments and the increase of productivity connected to them, than it was last years. A number of leading economists of Russia express the opinion that the Russian economy has passed from a category development to category stagnation. And if in Russia the word stagnation can be carried to Leonid Brezhnev's board (the end 60 beginning of 80th years of XX century) the concept of economic stagnation has been entered in 2002 at president Vladimir Putin. So, is it the economic stagnation good or bad? In what it can result the Russian economy and what it wait for a consequence?