Russia Not Full-Fledged Member of G8, G20

Russia is not a full-fledged member of the Group of Eight industrialized nations, according to a report on the results of expert work on the country’s social and economic strategy until 2020 (Strategy 2020).

“Russia has failed to become a full-fledged member of the G8, where it still does not take part in discussing the most important economic issues, and de facto plays the role of an observer in the G20,” the report said.

“The situation is worsened by the fact that Russia’s interests are almost not taken into account when global economic processes are regulated,” it said.

The report authors noted that active integration processes in former Soviet countries ensured the establishment of the Customs Union of Russia, Belarus and Kazakhstan, but added that these processes were “mainly in the political sphere without clear economic effects from intense integration.”

In this way, “in conditions of Russia’s limited ability to influence global development, its international positions in the period until 2020 will be defined by contradictory external conditions of political and economic development demonstrated by major countries and world regions.”

The conditions, experts said, included “continued tendencies of merchandise, service and capital market globalization and world economic growth mainly due to China, India and other developing economies,” adding that regional misbalances in the trade and financial spheres will remain.

According to the report, the 2008 economic crisis increased Russia’s dependence on the fuel and energy sector.

“Despite the state’s significant efforts, innovation processes have still not been activated as an unfavorable investment climate and low [1-3 years] business planning horizon do not motivate companies to implement long-term innovation projects even if they have the financial resources,” the report said.

The first variant of Strategy 2020 was developed under the supervision of the Economic Development Ministry and approved by the government in 2008. After the global financial crisis it became clear that the Strategy needs to be adjusted, and in early 2011 Prime Minister Vladimir Putin asked experts to rework the strategy.

Twenty-one expert groups are working on the new strategy dealing with economic growth, macroeconomic stability, pension system reform, budget and tax policy, education, healthcare and other aspects of the economic and social policy.

 

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