As Russia gears up for political changes, some experts say further economic reform is needed to continue the momentum of the Putin years. But even with a new President, fiscal policy is unlikely to change drastically.
The country's Central Bank will continue working to address its two key goals. “The Central Bank of Russia takes measures both to reduce inflation while also keeping down growth in the appreciation of the rouble. We do not plan to allow the rouble to appreciate this year,” proclaims Andrey Ulyukaev from Central Bank of Russia. And although Russia struggles with high inflation, its economic fundamentals are strong. It boasts a fund of oil revenues worth more than $US 140 billion, along with a current account surplus. The elections aren't set to change that. At this week's forum hosted by international affairs think-tank Chatham House, Russian politicians and investors say they are convinced Russia's economic stability is not at risk in the short term. But the World Bank warns that the country will have serious problems in five to ten years, if it does not start addressing a rapidly declining and ageing population and thus, its shrinking work force. “If you look at the medium term you have to focus on issues like education and health right now,” warns Klaus Rohland, the head of World Bank Russia. And something much more radical could also be necessary. “If you look at former USSR countries you have young countries, many of them in the East, such as Tajikistan and Kyrgyzstan and the like and you have old countries such as Russia and Ukraine. So managed migration could probably be something that should be considered,” adds Mr Rohland.