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calendar   Wednesday - June 22, 2011

Say Whatski?

Russian President: We Must Reduce Government Role In Economy

“this economic mode is dangerous for the country’s future.”



No there’s a thing. Even the quasi-former-commies now believe in a free market. Meanwhile, here in the land where the free market was invented ...

Russian President Dmitry Medvedev on Friday challenged the legacy of his powerful predecessor, Vladimir Putin, condemning the centralization of economic and political power at the Kremlin in what was interpreted by some as an early campaign move ahead of next year’s presidential election.

Medvedev’s statements in a keynote speech to investors at the annual St. Petersburg International Economic Forum were a strong indication that he wants to distance himself from Putin, Russia’s prime minister, in the run-up to next March’s presidential vote.

Medvedev has been widely seen as the weak half of Russia’s ruling pair, a placeholder while Putin awaits the opportunity to return to the presidency. Putin stepped down in 2008 because the constitution limited him to two consecutive terms; neither he nor Medvedev have announced whether they will run in next March’s election.

Medvedev acknowledged that the government’s expansion in managing the economy and the centralization of authority in the Kremlin under Putin was necessary in an earlier period of the country’s post-Soviet development. But, he said, “this economic mode is dangerous for the country’s future.”

“The proposition that the government is always right is manifested either in corruption or benefits to ‘preferred’ companies,” he said.

“My choice is different. The Russian economy ought to be dominated by private businesses and private investors. The government must protect the choice and property of those who willingly risk their money and reputation.”

While Putin has hailed stability fueled by high oil prices as a major achievement of his time in office, Medvedev on Friday attacked the whole concept, warning that attempts to preserve stability could lead to stagnation.

Medvedev said that the country must begin to tackle the problem immediately to avoid “the point of no return from the (economic) models that are moving the country backwards.”

“Corruption, hostility to investment, excessive government role in the economy and the excessive centralization of power are the taxes on the future that we must and will scrap,” he said.

In other words, Medvedev has seen the dangers of zombienomics. A fully stable economy is a flatlined one; no risk means no growth, no change, no development. And the way to avoid that is to get the government - the always prone to corruption and favoritism government - off of the people’s backs and out of the marketplace.

The world has turned upside down.

h/t to Rich K


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Posted by Drew458   United States  on 06/22/2011 at 07:59 AM   
Filed Under: • Economics •  
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