The Russian Federation Economy: A Review

(CC) Contando Estrelas/Flickr

The OECD has just published two new reports on the Russian Federation in the context of ongoing discussions on Russia’s accession to the OECD: “Review of Labour Market and Social Policies in the Russian Federation” and the latest “Economic Survey of the Russian Federation.”

The reports urge theRussian Federationto further modernize its economy to meet long-term development and income inequality challenges. A combination of sound macroeconomic management, improved business climate, effective social policies and greater energy efficiency is required.

The reports identify modernization and social inclusion as vital toRussia’s future economic development. They also note a number of areas whereRussiais performing relatively well, such as public debt management, education and unemployment.

The business environment remains a persistent handicap for the Russian economy. While progress has been made on numerous fronts, the OECD saysRussiacould do more to cut red tape, speed the pace of privatization, and ease restrictive foreign trade and investment regimes.

There is also a need to reduce pervasive state involvement in the economy, fight high levels of corruption and strengthen the weak rule of law.

The reports are available for the IESE Community here.