RAS Academicians propose returning Soviet five-year plans to overcome coronacrisis

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RAS Academicians propose returning Soviet five-year plans to overcome coronacrisis
RAS Academicians propose returning Soviet five-year plans to overcome coronacrisis
3 February, 09:11Economy
RAS academics propose to introduce a number of radical reforms to accelerate the annual growth rate of the Russian economy to 3-4% and to cope with the economic crisis caused by the coronavirus. In particular, they propose to return the planned economy and the Soviet "five-year plans".

Academicians of the Russian Academy of Sciences Abel Aganbegyan and Boris Porfiriyev, as well as Corresponding Member of the Russian Academy of Sciences Alexander Shirov, made proposals. They propose to use the country's gold and foreign exchange reserves, as well as funds from the National Welfare Fund. In addition, it is proposed to connect the savings of enterprises and Russians.

For those who earn over 100 thousand rubles a month, scientists propose raising the income tax. For those who receive the minimum wage, this tax, on the contrary, should be zeroed. It is proposed to raise the minimum wages and unemployment payments to 20 thousand rubles, and to increase pensions to 22 thousand.

For all Russians who have loans, scientists propose to reduce interest on them to 8%. It is proposed to ban Russian banks from issuing loans with interest twice as high as the Central Bank rate, "Vedomosti" cites the report of scientists.

At the same time, although the proposals of scientists sound optimistic, in practice they can hardly be implemented, analysts of "Expert RA" think. Anton Prokudin, the agency's leading methodologist, notes that over the past decade, the Russian economy has never demonstrated more than 3% growth, despite at times very favorable external factors. “The reason is weak institutional development”, - the expert notes. The analyst's opinion is supported by Alfa-Bank. The head of the center for macroeconomic analysis, Natalia Orlova, says that today the country needs to increase investments in new technologies and intellectual property, and maintaining demand by increasing wages and simplifying access to loans will only lead to an increase in investment in real estate.

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