Productivity growth has fallen persistently over the last decade. Measures to combat corruption, strengthen the rule of law, reduce state control, and reinforce skills and innovation would raise productivity. While red tape has been reduced recently, more progress is needed at the regional level. Making the economy less dependent on rents from natural resource extraction will be key to stronger and more stable income growth.
- Continue fighting corruption, focusing on transparency and accountability mechanisms in the public sector and strengthening judicial independence.
- Continue reducing administrative barriers. Push ahead with privatisation of state-owned banks and other state-owned enterprises (SOEs). Shorten the list of strategic sectors with prior approval required for foreign investment and streamline the approval process.
- Raise the efficiency of infrastructure spending, promote competition in the transport sector and increase co-ordination to address urban transport challenges.
- Strengthen life-long learning and vocational education. Increase overall education funding, while continuing to restructure education institutions.
- Continue broad-based support for innovation and the adoption of new technologies, in particular to improve energy efficiency. Shift research from the Academy of Science to universities and increase competitive grant funding.
Source: OECD May 2017 Economic Outlook database.
Demmou, L. and A. Wörgötter (2015), “Boosting Productivity in Russia: Skills, Education and Innovation”, OECD Economics Department Working Papers, No. 1189, OECD Publishing, Paris.
Radziwill, A. and Y. Vaziakova (2015), "Improving the Business Climate in Russia", OECD Economics Department Working Papers, No. 1192, OECD Publishing, Paris.
Kolik, A., A. Radziwill and N. Turdyeva (2015), "Improving Transport Infrastructure in Russia", OECD Economics Department Working Papers, No. 1193, OECD Publishing, Paris.
Analytical Center for the Government of the Russian Federation (2017) “Labor productivity in the Russian Federation”, Analytical Center for the Government of the Russian Federation. Social Bulletin N°6 (in Russian)
Center for Strategic Development (2017), “Labour productivity, result of a questionnaire to 500 company directors” (in Russian),
Voskoboynikov, I. (2017) "Structural change, expanding informality and labour productivity growth in Russia", Higher School of Economics, basic research program working paper, WP BRP 168/EC/2017
Productivity - enhancing institutions
A council hosted by the Ministry of Economic Development is in charge of designing and testing policies to enhance labour productivity (in Russian).
The Center for Strategic Development, a think tank under the Presidency, published some work on productivity (in Russian).