Few surprises in Putin’s state-of-the-nation address

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/49

President Putin delivered his annual state-of-the-nation address last week at the Kremlin to a packed audience of Duma deputies, Federation Council members and invited guests. Breaking from recent years, the Russian president focused on domestic policy. Education, health care and preconditions for economic growth were some of the main themes.

In discussing the economy, Putin noted that domestic, not external, factors were largely responsible for restraining growth. He said Russia must resolve at least some of its structural issues or economic growth may remain sluggish for years to come. Among the specific challenges mentioned were harmonisation of inconsistent regional legislation, improving the effectiveness of regulators and continuing the fight against corruption. He also stressed the importance of having a healthy, well-supervised banking sector to assure financial intermediation and financing of investment in Russia. The address ended with a hat-tip to Russia’s new science and technology strategy, which involves support for young scientists and a digital leap forward for the Russian economy.

Putin offered no new initiatives and no concrete proposals in dealing with long-acknowledged economic problems highlighted in his annual address.

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