The Roscongress Foundation prepared an analytical report on the results of the St. Petersburg International Economic Forum held in June 2022.
Analysts of the Roscongress Foundation have identified the main theses of this study, accompanying each of them with a relevant piece of video broadcasts of panel discussions held as part of the business programmes of key events held by the Foundation.
The world economy is in the biggest structural crisis of the 21st century. At the same time, the problem lies not only in the economic mechanisms for creating and distributing added value, but also in political decision-making mechanisms.
The world economy and the entire global community have entered a period of the most severe structural crisis. The unresolved problems of the recovery of global markets and economic growth after the COVID-19 pandemic have been superimposed by new ones: the consequences of geopolitical restrictions. Whats more, the situation began to deteriorate long ago. It was not «the outcome of events of the last few months,» and «even more so not the result of the special military operation which Russia is conducting in the Donbass».
One of the main economic aspects of the current crisis, and one which was widely discussed at the Forum, was the Wests refusal to support the reserve role of its currencies for the rest of the world. This arose from the irresponsible macroeconomic policies pursued by the G7 countries (including uncontrolled emission and the accumulation of unsecured debt) and was further manifested in the political decision to essentially steal Russias gold and foreign currency reserves. As a result, against the backdrop of the blocking of the gold and foreign exchange reserves of the Russian Federation, the dollar and the euro are losing the status of reliable currencies, the share of settlements in national currencies is growing with the development of related financial institutions, and a real alternative to the unipolar world and unipolar financial system is being created. Against the backdrop of such trends and the crisis of the «green» agenda, serious transformational processes have taken place in the oil and gas markets. The balance of supply and demand has been disrupted, and prices are trending upwards.
Issues concerning the commodities market formed a lively topic of discussion. However, the same was also true of discussions revolving around meeting an even more basic need food. On numerous occasions, participants warned of the risk of global famine as early as next year due to the policy pursued by Western nations. In the conditions of turbulence in the basic energy and food markets, according to many speakers, the key decision will be the responsible policy of each state based on its own interests and interaction with countries that really want it.
Russia is aware of the challenges it faces and will build its macroeconomic policy taking into account all the risks and opportunities that open up in these conditions.
Speaking at the plenary session, Russian President Vladimir Putin set out six principles for the development of the Russian economy, with the main one being that Russia «will never follow the road of self-isolation and autarky». He also highlighted entrepreneurial freedom: «Every private initiative aimed at benefiting Russia should receive maximum support and space for implementation». In addition, a well-balanced macroeconomic policy will be key to further growth. The country would not «follow in the footsteps of our Western colleagues by replicating their bitter experience setting off an inflation spiral and disrupting their finances». Social justice was highlighted as being no less important and should in turn foster demand for Russian-made products across the country. This will help bridge the gap between regions in terms of their capabilities and create new jobs where they are needed the most. The accelerated development of infrastructure will also play a role in driving regional development. We are talking not only about a simple increase in budget spending, but also, for example, about a large-scale plan to build and repair the backbone network of federal and regional highways, which will start next year. In addition, the president announced the launch of a new comprehensive programme for the modernization of the housing and communal services sector. The final aim is securing technological sovereignty.
Technological sovereignty and security are necessary conditions for the successful development of countries in the future.
It is impossible to imagine economic growth today without cutting-edge technology. Much of it is not so much related to manufacturing as it is to personal development, the development of human capital, and the transformation of society as a whole. The most in-demand technologies in the current environment are aimed at providing IT-related support for key processes in business, government administration, and providing goods and services. It is also essential that these technologies are protected from outside interference. Building a sovereign healthcare system, supporting the scientific sector, and developing potential in the field are similarly vital. Just as in all other sectors, Russia has no intention to close itself off, and will continue to build ties with all friendly partners.
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