Kudrin: For a Breakthrough, We Need to Change the Paradigm, Turning from State Capitalism to an Economic Model Based on Private Business

Alexey Kudrin, the Chairman of the Accounts Chamber, is sure that Russia needs to reduce the State’s share in the economy. In his speech at the plenary session of the Moscow Financial Forum, he said that it was necessary for an economic breakthrough.

“I think that we are deploying insufficient efforts in this area. We still have a low confidence in investments. In our country, about 6% of the population have their own businesses, but only 2% want to create a new business. In Eastern Europe, about 8%, in developing countries, 30% and more. 2% are ready to take risks, create a new business, create an innovative product, who are not afraid of making a mistake – it’s really not enough,” he said.

For people to consider the possibility of creating their own businesses, the country needs to create a stable, predictable and transparent system of public administration, to carry out a reform of control and supervisory activities.

“We need to start with the reform of public administration. The quality of the regulatory environment and methods no longer meets the challenges both in terms of speed and in accuracy of decision making. We have not heard enough about the reform of the control and supervisory activities which, as has already been proved both in figures and examples, significantly overloads both businesses and budgetary institutions,” Alexey Kudrin noted. According to him, “to reach the European level, we need to reduce the control and supervisory load by half!”

The speed of public administration processes can be increased through digitization and optimizing the work of ministries. “The speed of public administration can also be increased through digitalization. We must recompile some functions of the government; their number should be reduced. We can remove redundant functions of many ministries, especially in working with information,” Alexey Kudrin stated.

Speaking of work of the Accounts Chamber, he promised that it would change. The audit institution would pay more attention to strategic audit: “The Accounts Chamber will be the institution that, I hope, will objectively and impartially assess the achievement of national goals and objectives.”

“In our Strategy of the Accounts Chamber, we said that we would rather be consultants, and we want to become partners of the Government. Speaking of shortcomings, estimating them, however, we should make suggestions how to do it better,” Alexey Kudrin concluded.

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