What to expect from Nabiullina at the head of the Central Bank?

 Putin offers to head the central bank NabiullinaRussian President Vladimir Putin and Nabiullina Economic Advisor in the rank (16 July 2012)
 Russian President Vladimir Putin on Tuesday announced plans to offer the post of head of the Central Bank candidacy of former Minister of Economic Development Elvira Nabiullina.Currently, 49-year-old takes Nabiullina chief economic adviser to the president.
 It is not mentioned as possible candidates for the post of the CB. But Putin last week made it clear that he would propose a candidate.When leaving the Central Bank Chairman Sergey Ignatyev opposed to Kremlin pressure and governments seek lower interest rates to stimulate economic growth.
Ignatieff powers expire on June 23, but the president is obliged by law to make a nomination of a new chairman of the Central Bank not later than three months prior to this date. Duma approves candidacy for a term of four years."Not just a bank"Commentators were divided applicants for the post of head of the Central Bank on supporters to continue the current policy that is considered more important to reduce inflation in Russia, and those who believed that the Central Bank may stir economic growth.The most ardent advocate of the anti-inflation rate of potential candidates called this the first deputy head of the Central Bank Alexei Ulyukayev, and in the opposite camp - left economist Sergei Glazyev, also served as economic advisor to Putin.

Also called the candidacy of former Finance Minister Alexei Kudrin, First Deputy Prime Minister Igor Shuvalov, the head of the state bank VTB Andrei Kostin and the head of its retail division VTB 24 Mikhail Zadornov."The central bank - is not just a bank, at least it is not a commercial bank, is primarily a regulator of the financial system and the largest institution of macroeconomic policy", - Putin said at a meeting with Nabiullina and Ignatiev, explaining his choice of a new chairman of the Central Bank.Worked for many years in government Nabiullina regarded by many as a man more inclined to make concessions to the Kremlin in the issue of rate reductions."Liberal Fundamentalism"However, eyes criticized it in a very harsh terms.

    "I do not think in terms of monetary policy will take place some significant changes"
Alexei Kudrin, the former head of the Ministry of Finance"If the Bank of Russia has a lot of masochists, I think, will like very much so. When Elvira Nabiullina be frostbitten liberal fundamentalism. This is a more liberal policy than even Mr. Ignatieff, because Mr. Ignatieff still present a large enough common sense. I I can say this: so ends Putin's stability, "- said the eyes of the" Kommersant-FM ".Kudrin, who became a moderate critic of Putin in the last year, however, has expressed cautious optimism."The monetary policy of the Central Bank, which was developed, which was discussed with the government objectives related to inflation targeting, reducing the intervention of the Central Bank, Elvira and I agreed with them - he told RIA Novosti. - So I do not think that of monetary policy will take place some significant changes. "Representatives of the Communist Party and the "Fair Russia" said they did not intend to support the candidacy Nabiullina, but the deputies of the "United Russia" and the Liberal Democratic Party stated that they are quite satisfied with it, that virtually guarantees approval of the new head of the Central Bank.In this capacity, the ex-minister becomes the first woman in the post of the financial institution in Russia.About Nabiullina know that she is fluent in English and French and is married to a liberal rector of the Higher School of Economics in Moscow Yaroslav Kuzminov.-------------------------------------------------- -------------
 Contemporary ArchiveWhom cares Minister Nabiullina?
 The media misinformation published an article telling the citizens as the newly elected President Vladimir Putin and Minister of Economic Development Nabiullina think about the development of the country and are seeking ways of successful development. The cause of this material is likely to become a critical article in the Chinese newspaper "People's Daily" owned by CCP, where the problem areas have been identified and named the Russian reality six major problems. Not responding to the criticisms of Chinese friends, it is a rule in modern rulers of the country, the newly elected President Vladimir Putin and Minister Nabiullina decided to show the country that they are not worse than the Chinese communists understand the situation and are working to overcome the existing problems. That is not for nothing that the bread they eat. And that's what they got:Nabiullina Putin argued about the problems of the Russian economy
 Minister of Economic diagnosed seven ekonompolitike pain points, three of which - taxes, fees and pension funds - called the prime minister a desire to debate.If the Chinese comrades have identified six problem areas, the Minister Nabiullina sees them more seven. That's something! True problems identified are not the ones that need to be addressed urgently and that may allow Russia to develop. Nabiullina immediately showed that she cares primarily about the representatives of capital, not of Russia as a whole and its citizens.
 Russia is an important milestone, opened the college ministry Putin: to adopt decisions determining the prospects for the years ahead. The main factor, and economic growth, and the quality of its growth Prime Minister called the business climate, "Today it is definitely nerve economic policy."Vladimir Putin was not the original, and told the audience that we are at an important turn, complained of poor business climate, that is, also attended to the activities of the representatives of capital. But here, specifically, about the causes of poor business climate, Putin chose not to speak, afraid to point out the real causes and culprits. We are all good people, but the system is bad. Nabiullina supported the president and suggested that the situation will change to look at it.Nabiullina, briefly reminded where Russia in world rankings of business climate, and finding all the positive (eg, finishing 120th out of 183 places in the ranking Doing Business, Russia nevertheless entered the top-25 on progress in reforms) , suggested that the new state of the investment climate indicators: business security, strengthening the judicial and legal system, the level of corruption. The Minister outlined the seven forks economic policy: The right choice can help you find sources of growth and quality.Twenty years standing at the fork and still can not get away from the place we can, because you will not go far with these rulers all lose. Here we stand at the stone in a daze, in the expectation that someone will come up to us and ensure development.The most important component of the business environment - the tax burden, the level of which - 35.6% of GDP - is cumbersome, the minister said. The load must be fair: the surplus is more corporations, and in the process of modernizing the business - less. The effective tax rate should be no higher than that of countries with which Russia is competing for capital and nominal - not me at least five years. In addition, it is necessary to reduce administrative barriers - in some sectors they increase the load by 50-60%, said the minister.The second fork - the price of electricity, gas and rail transport: Minister proposed annual indexation by 10%, 15%, and the inflation rate. From price increases depends launch energy efficiency programs, acknowledged the minister, but on the other hand, "we can not afford higher prices than their neighbors." Need to continue reducing state involvement in the economy, said a third fork Nabiullina, with privatization and regions should do: they receive subsidies from the budget, while they themselves are sitting on huge assets. The state should set an example and to privatize the Russian sites, continued the minister of the fourth fork - strengthening the national financial system. In 2011, two-thirds of companies have chosen to place foreign exchange, Russian stocks have provided 21% of the turnover of London Stock Exchange than to bolster London as a financial center, Nabiullina lamented: "You can not solve this prohibition - to systemic change in the law."Fifth sore point - the pension system. Without reform, it will not be able to enter the no-deficit budget in 2015 or later, and the deficit of the pension system will be 3.4% of GDP, the minister warned. Raising rates has led to an increase of hidden wages in relation to the wage fund from 54.7% in 2010 to 56.1% in 2011 (almost maximum - 56.2% was in 2006), and growth retardation legal wages, he said. She stressed that if each additional $ 1 in oil prices makes the budget of 50-60 billion rubles., An additional 1 percentage point of economic growth - 120-150 billion rubles. The main decisions for the pension system reform minister offered early retirement, increasing the requirements for the minimum length of service and the development of voluntary savings. Sixth fork - the openness of the economy, especially important with the entry into the WTO and the Customs Union.Seventh - the fiscal rule. Nabiullina referred again to the essence of the differences with the Finance Ministry - the basis for the budget to take the average price of oil for 10 years, insists the Finance Ministry, or in three years, as required by the Ministry of Economic Development - and added the need for "rules of the second key" - to limit the growth of budget expenditures GDP growth .Here is where Nabiullina and opened all of whom and what she and her ministry really care. And it is, above all, on the state of the financial oligarchy, the owners of the monopolies and income commodity magnates. For whom is a boon annual price increase in electricity, gas and rail transport? All the excuses about energy efficiency is an excuse for the poor. They say we raise the price to save!!The tax burden on businesses is no higher than in any European country, but that's really a tax diversification Russian specificity, where the parasite pay less taxes than the national manufacturer. Nabiullina but omits an important fact, and immediately shows who she really cared for. As a minister, who by their status should take care of the welfare of the state, the budget, it is to take care of income monopolies that it is they annually raise rates. In the same vein, and offer Nabiullina of further privatization and reduction of state involvement in the economy. The conversation should be conducted on how to stop the abuse of state employees in the use of state-owned enterprises for personal purposes, the revenues of state enterprises fell into the state budget, not the privatization and sale of "chicken" lays the golden eggs in private hands. Minister should think of replenishment, not about how to enrich a handful of oligarchs. And capital outflows are not due to high taxes, as it tries to present Nabiullina, but because of their criminal nature.As for the pension system and reform can not speak, because all of the reforms have only led to even worse off the main part of Russian pensioners. In fact, we do not have the inherent problem of the pension system, and the general problems imposed plutocratic government: embezzlement of pension money, low wages in manufacturing, for the profits of the capitalists and the two laws on pensions. Here are three devastating effects for the entire pension system, about which neither the minister nor the president is not even hinted at.Again Nabiullina offers simple pensioner deterioration by reducing output for early retirement, increasing the required work and voluntary savings. Perhaps Nabiullina, rubbing chair in the ministry, and does not understand that the early retirement just does not give that in the hot shop or leave the mine health and work there wasting power, not subservient. But someone has to this lady and explain the true situation.Speaking of voluntary savings officials always nullify themselves and do not realize that if the people have voluntarily and independently to save for retirement, what does all this army of parasites sitting on the neck of the pensioners, or the existing pension system exists for the enrichment of the same handful of plutocrats?And last on the fiscal rule. Disagreements Finance and Economic Development on the dates for the cut prices for oil is in the degree of arrogance on the robbery of the state. Finance Ministry wants to install a virtual price for hydrocarbons for 10 years, the state has received as little as possible, and the Economic Development Ministry said that three years is enough.
 If the ministers, to obtain security from the government, worried about the state of the content of the budget, then the question would be standing on the percentage that should receive private companies for their involvement in the production and transportation of oil, and everything else must also go to the state budget, as , for example, is done in Norway. But our extraordinary ministers sit on the neck of the state and act against the state. That this lies the main problem of the country.The tax burden actually less if you subtract the oil and gas sector, Putin said. "Subtracted wrong," - replied Nabiullina, especially as in manufacturing load up to 50%. Yet less than 30% non-oil and gas sector, did not give up the prime minister.With regard to indexation, the financial position of the Railways in modest than that of the gas sector, while in the gas sector and 15%, as they say, will be an incentive for energy efficiency policies, shared Putin "thoughts out loud." And the increase in the severance tax on natural gas in curbing prices could lead to state-owned companies that the investment program will be modest and Russia's competitive advantages in the energy sector will be reset. We have attracted investors in the energy sector, many have invested billions of dollars and euros, and then we went and slowed growth rates, Putin continued: "What promise?" Did not support it, and a three-year oil price for the budget, offering even think and to debate. After all, if the price falls, the "cut" of the investment and the price will have an error - it's nowhere invested state funds and an increase in unfinished projects, Putin said. The economy could work and retirement savings - they have 4 trillion., And the current rules do not allow them to use, including for infrastructure projects, he said, and ordered the Ministry of Economic Development, Ministry of Finance and EBV prepared proposals how these rules change.On crotches until the dispute, admitted First Deputy Prime Minister Igor Shuvalov, "You stubborn, Elvira. But it's good. " The government of the creative atmosphere, he said, so as not to be misunderstood: it is in such disputes are born solutions that promote economic development. When was Alexei Kudrin was easier - one deputy prime minister supported the Ministry of Finance, the other - Ministry of Economic Development, and alone to seek a balance between the two departments within the economic bloc - not an easy task, complained Shuvalov. A time to lose no more - the expectations are rising in society, all decisions must be taken in 2012, he said: "In 2018, we are required to present a very different country."The issue of investing pension money monopolies and tariffs - a strategic dilemma, from which the government does not get to dodge, chief economist FK "Opening" Vladimir Tikhomirov, will have to choose: either the macroeconomic stability and sluggish growth or structural reforms and macroeconomic risks in anticipation of high growth.
 SourceThe whole discussion, if you can call it that, has shown that our leaders do not see the real problems of modern Russia, or do not wish to see them and articulate, and thus addressed.