UPDATE: Kudrin calls for cutting Russian economy’s public sector
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MOSCOW, Sep 7 (PRIME) -- The Audit Chamber’s head Alexei Kudrin believes it’s time to reduce the public sector of the Russian economy, he said in an article published in Kompania magazine and seen by PRIME on Tuesday.
“The public sector may play an important and positive role at times, but it is time for it to start shrinking. There is no ‘special way’ in this situation. State companies rarely become economic and innovation drivers,” Kudrin said.
As many other states, Russia significantly increased its involvement in the economy after the crisis of 2008–2009, but in the period of post-crisis development it is important to get rid of this practice as it bears many risks if not terminated in time, he said.
Only four companies out of Russia’s top-10 are private, while only private companies make the US’ top-10, Kudrin said.
Most Russian companies with state participation are less flexible in terms of management and highly dependent on bureaucracy, he added.
“Privatization may change the situation as it will give enterprises effective owners. It will not only have a positive impact on the results of separate organizations, but will also increase the economy’s efficiency as a whole,” he said.
Kudrin added that privatization may bring about 200–300 billion rubles per year to the budget within five to six years.
Presidential spokesman Dmitry Peskov said that although Kudrin is a qualified specialist in the field, there are other points of view on privatization.
“You know Kudrin has tremendous experience, great expertise. This is a man who has been the best finance minister in the world for more than one year, so of course his point of view is important. At the same time, there are other expert points of view,” Peskov said.
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