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The recent slowdown of the Russian economy has fundamental roots and cannot be overcome by ‘simple’ measures like alleviation of monetary or fiscal policy. The major impediment to growth is marked weakness of the market environment, explained primarily with dominance of state-owned and quasi-state companies. Strong incentives for efforts to enhance efficiency by both business and public administration are required. The key objectives of policies needed to develop a new growth model are listed.
Kudrin et al. (Sat,) studied this question.
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