"From Discussions About Shock Therapy to Search for Optimal Economic Model"

By Vestnik Kavkaza
"From Discussions About Shock Therapy to Search for Optimal Economic Model"

Russian-Chinese conference "From Вiscussions About Shock Therapy to Search for Optimal Economic Model" was held yesterday in the Institute of Asian and African Countries of the MSU. The event was organized by the Institute of Asian and African Countries and the New Structural Economics Institute of the Peking University.

In December of 2018, China and the world celebrated 40th anniversary of the beginning of the reforms and transparency policy. These reforms, which began almost in the same era as shock therapy in Russia, were uniquely successful in the opinion of most experts. They have allowed to achieve largest transformation of the international political and economic system since industrial revolution. However, the era of rapid economic growth in favorable external environment is now history. A new stage has begun, and it's parameters haven't been studied yet.

This conference was attended by economists, political scientists, international affairs specialists and orientalists of the two countries, including one of the most famous Chinese economists, who previously served as Vice-President of the World Bank, founder and first director of the Chinese Economic Research Center at the Peking University, Professor Justin Yifu Lin. In his speech, he spoke about ideas that can be used as a basis for effective adaptation of existing models of economic development to new conditions.

Russian President's adviser on economic issues, academician of the Russian Academy of Sciences, Sergey Glazyev, prepared a presentation: "Mainstream of economic thought was helpless before explanation of economic development processes due to concept of economic equilibrium. It's very limited. If we proceed from the fact that starting from industrial revolution, the main factor of scientific and technical progress, which today accounts for over 90% of gross domestic product growth in the world's leading countries, was the basis for modern economic growth, we must recognize that the economy has never been in the state of equilibrium, and never even tries to reach the state of equilibrium, because new technologies appear every second, just like new combinations of production resources, new opportunities, new companies. If the economy moves somewhere, then it's trajectory changes every minute. In a state of constant change, it's very important for us to find something more or less sustainable. From my point of view, life cycle of technologies is that sustainable element of economic development."

Conference participants also tried to answer questions: are there any elements of Chinese experience that can be used in the Russian Federation and other post-Soviet states; What are challenges China's current economic model faces? What Russia and China can do together to protect their right to development under unprecedented pressure from the United States and its allies; What ideas can be used for effective adaptation of existing models to new conditions.