4. High economic growth rates play an important role in reducing the gap that now separates Russia from the most developed countries. The Russian economy is still registering high, although somewhat slowing, rates. This slowdown is natural for a transition from recuperative growth to investment growth. However, arguments to the effect that economic growth is the most decisive indicator of the effectiveness of the government’s actions contain inherent risks. In the first place, they pertain to purely quantitative parameters and extol growth to the detriment of quality and other structural shifts.
The dangers that come with an obsession with growth rates are as follows. First, it tends to neglect the quality of growth and structural shifts. The package of scenarios for Russia’s social and economic development that came under discussion over the past twelve months contains a proposal for doubling GDP through a steep increase of mineral resource output, partly with the aid of government investment. This scheme looks dangerous. Along with solving the political task, it increases the country’s dependence – economically and politically – on international market fluctuations and thus prompts Russia to practically replicate the experience of the Soviet Union.
Second, there is a danger of political falsification. As soon as quantitative parameters are thrust into the foreground, the entire state administration begins a rush for “fulfilling and over-fulfilling the objectives.” This is a well-known phenomenon in China, where the aggregate GDP of the provinces exceeds the data of national statistics by a factor of 1.5.
Recently, special techniques for stimulating economic growth have appeared in Russia’s economic policy – something that has not been seen in the fifteen years following the collapse of Communism. These new instruments provide the government with an opportunity for greater engagement in economic projects, such as work in special economic zones, investment funds, and concessions. Yet these “strong medicines” may turn out to be risky. Although they may become an important factor for speeding up social and economic growth, if handled carelessly they may fuel a degradation of the political and legal environment of economic activity.