Is Russia going to be privatized again? Experts appreciated the proposals of Alexey Kudrin

The head of the Accounts Chamber, Alexey Kudrin, once again made loud statements about the prospects for the Russian economy. Recall that in early August, Kudrin, in an interview with RBC, announced an obsolete model of the economy in Russia. “We are exploiting the old model of the economy, which has already outlived its usefulness and will not give the desired result. The economy as a whole does not create any breakthrough qualities, new goods”, - he said, noting that in Russia there has not yet been a transition from a demand economy to an investment model of the economy.

Now Kudrin publishes a whole article in the magazine "Company", in which he argues that Russia, like many other countries, after the crisis of 2008-2009 noticeably increased the presence of the state in the economy, but in the period of post-crisis development it is important to reduce state participation:

“The public sector can 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-owned companies rarely become economic and innovative drivers..."

Kudrin notes that among the ten largest Russian companies, only four are private: "For comparison: in the top 10 American largest companies, there is not a single state-owned company".

It is the participation of the state that makes such companies less flexible in management, Kudrin believes: "They are highly dependent on the bureaucratic machine, their boards of directors often include officials." And he notes that the audit of the Accounts Chamber showed that among the officials there are "multi-managers" representing the interests of the state simultaneously in 20 or more companies, and this negatively affects the speed of decision-making and the setting of "breakthrough, changing the vector of goals".

In addition, Kudrin is confident that the state is a less efficient owner than private structures: 97% of all treasury receipts in the period from 2017 to 2019 were provided by only 20 companies, the main reason for which was “weak management”. Therefore, the author is convinced that “the situation can be changed by privatization, which will give enterprises effective owners. This will have a positive effect not only on the results of individual organizations, but will also increase the efficiency of the economy as a whole..."

This article has already attracted expert responses. Thus, economist Nikita Krichevsky was skeptical about Kudrin's ideas, simultaneously calling him a "pensioner":

“The head of the Accounts Chamber again proposed to reduce the public sector in the Russian economy. What is there to do if Kudrin is nicer to loans-for-shares auctions, YUKOS, the United States as opposed to China, or simple decisions that do not always turn out to be correct. Such Westernizing peppers have always been, are and will be.

What is his mistake? Here's what. Earlier, Kudrin said that "we are exploiting the old model of the economy, which has already outlived its usefulness and will not give the desired result." Coincidentally, our economic model is not old, but Kudrin's fragmentary economic views are outdated.

Is it so important today who is the owner? No. Profitability is revenue (generated in part by budget purchases), revenue is pricing, and who controls pricing? State institutions. What's in Russia, what's in the United States, what's in China. Even world oil prices, and with them - global costs, are determined by states, in this case - Russia, Saudi Arabia, the United States.

Okay, we'll give Rosneft, Sberbank or Russian Railways into private hands. What will it change? Nothing. The costs may decrease, which is not a fact, but not in order to pay more to the budget to ensure the interests of the country's citizens, but in order to increase the profits of new shareholders.

As for the income tax, it is an annoying burden that must be minimized by all means..."

According to political scientist Ilya Grashchenkov, Kudrin's ideas will lead not to the development of the country, but to its final privatization by several oligarchs:

“Is Russia being privatized? Kudrin opposes the public sector in the economy and all progressives adhere to a similar vision. If there is no planned economy, then it should be replaced by the market. Now Russia has a planned market economy, which does not work for the needs of the country, but for the needs of interested parties. In fact, the state determines in which sector it is going to throw the next billion of money, and there are already selected "interested parties" who will master them. The main thing in Kudrin's proposal is to carry out a new large-scale privatization.

Kudrin wrote an article in which he calls for the reduction of part of the state in post-crisis development. “The public sector can 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-owned companies rarely become economic and innovative drivers, ”Kudrin wrote. One cannot but agree here, since the state has gotten into it almost everywhere, even in small businesses like scooter rentals or coffee shops. This state capitalism ultimately leads to the degradation of the industry.

The situation can be changed by privatization, which will give enterprises effective owners. The most interesting thing here is who and what is going to privatize? Russia will face a new wave of "loans-for-shares auctions", i.e. buying up state-owned enterprises by oligarchs, since only they have the necessary amount of money in the cache and access to the bidding procedure?

Now there are many "tidbits" in the Russian economy, from the oil industry to technological enterprises. It turns out that Kudrin proposes to act according to the formula “thicken-thin” solve et coagula, what was previously actively squeezed out of the owners, like Yukos and factories from “red directors”, can now migrate into the property of the rich people of Russia.

Who these people are, we roughly represent, there are not so many of them in the country, but even fewer of those who will be allowed to use the assets. It turns out that the Russian Federation can expect another wave of privatization, during which the country will finally acquire new owners, and no longer an abstract "state"..."