INSOR Russia: Institute of Contemporary Development
Updated June 28, 2019

EBRD Report Presented at INSOR

November 25, 2011

The Institute of Contemporary Development hosted the presentation of the annual report of the European Bank for Reconstruction and Development – Crisis in Transition: The People’s Perspective. The main theses of the report were presented by EBRD’s Chief Economist Erik Berglof.

The report focuses on understanding both the 2008-10 crisis and its longer-term implications. It also contains a broad overview of the progress of reforms and macroeconomic changes among transitional economies of the region.

Noting the main changes with regard to structural reforms, EBRD analysts believe that Russia’s key priorities for 2012 should be as follows:

Diversification of the economy away from growing dependence on oil revenues remains the key long-term priority. Progress in this area requires further improvements in the business environment throughout the regions, stronger enforcement of competition laws and supporting investment in infrastructure.

As economic recovery gains momentum, fiscal discipline should be strengthened. The implicit oil price needed to balance the budget has been rising steadily and appears to have exceeded $110 per barrel. Arresting and reversing this trend will position the economy to better withstand an adverse shock to the external environment.

The financial system needs further improvements in legal framework and banking sector regulation and supervision. This will support domestic capital market development and make progress towards the objective of positioning Moscow as an international financial center.