29 November 2013

Russia proved to the G20 partners its ability to give a credit to the development economy issues

In an interview with Prime Business News Agency, Russian Deputy Minister of Finance Sergey Storchak summarized Russia's G20 Presidency work.

He said the reform of national labour markets came to the fore in 2013, and this issue had received unexpectedly strong support from the G20 Financial track. "Developed economies had forgotten about the labour market for a while, in the context of the growth rates in the early 2000s. That growth rates allowed providing a social policy aimed at not only struggling against unemployment by creating new jobs, but also supporting the labor with the social allowance. While the system of the social allowances was developing, the system for retraining human resources to meet new realities deviated somewhat from the mainstream national policies. The pendulum has now swung in the opposite direction, and everyone has started talking about the labour market reforms," the Deputy Minister said.

As for tax issues, to Sergey Storchaks's mind, this topic will be given a special focus and that lead to developing a sub-process. "The discussion and the decision-making process will go deeper and deeper into details, and this requires the involvement of tax specialists," he said, adding that this was a rather lengthy process. "We have to implement 15 aspects of the plan over a period of 8 to 24 months. After this time period, we will see how the situation stands," he said.

The Russian Deputy Minister of Finance also mentioned the important issue of added value. "Added value is linked directly with the Development of Local Currency Bond Markets (LCBM). We have shown and proved by our own example that the local currency bond market can play a very important role in financing the state budget deficit," he said.

Sergei Storchak believes that the year of Russia's G20 Presidency has shown its G20 partners that Russia can lead the way on security issues, and that it can also coordinate issues concerning the development of the market economy.

Full version of the interview you can find here (only Russian version)