too to the kind of suppression and you know would not talk about course a professional talks can also can be controlled by other factors and rushes the rear of example or the purity of. the moment or the oil price exclusively with her for it to be because of the policies or other factors something water can buy but not pursue and doesn't affect the economy that much and as we saw in the in the ruble depreciation after of the prices fall russia coots us the foreign currency and could find the ground of this free fall and that was partially of this from what i understand because russia actually did try to. counterbalance its dependency on oil and gas by. stashing the went for income away in various funds it in wouldn't say that because if you look at the resource which was your token for the reserves the reserves

didn't follow substantial now we we still increase it was that. it was merely because russian government stayed away of the problem they were out of the get the they will prices fell the their will price fell the the imports squeezed the the export squeezed to the consumption fell and all the parameters of the all of the creation were adjusted to just stay in the equilibrium and those who probably didn't move smart policy around the overcoming of the crisis related to the. to the problems with the main minerals you yourself or to the main factors of your canon and on the other side which bill you were talking about the there are sufficient policy of the those diseases not limited to the current suppress it it is reflected in the whole structure of the economy when you have the major of the. demeanor source which you feel the economy for. if you have the.

the meter will desire to centralize those to control it this is exactly what their president putin was talking about here and i think it was the end of two thousand and fourteen news here and of the year conference one i think he came closest to actually being apologetic because he's often asked about his mistakes but there from what i can remember that was the closest admission of a mistake he said that we didn't have enough time we didn't put enough efforts into diversify the economy so you actually agree with him that the structural forces for or against illusionist of the statement differently dream of mr put some of my favorites were put in there but but on top of the the government didn't want to diversify the economy not to lose control over the economy or the state because the sort of the main to sort of the attempts of diversification led to the diversification of the source of all the elections minus and different people different part of trying to win over the country gone or just didn't wanted to

happen anymore so the nationalists of the whole and those are sort of the two sources which led to the oil production and hold exports and control over the fields and because of that and because of the excessive margin they just couldn't do anything else all the attempts to do or surprise to the enterprise a switch were inefficient from from the beginning was the major the major intention was to spend the budget to leave the poor the north to bring it up to the little the global or competitive but all of that i've found that i assume in two thousand and fourteen when russia experienced a turning point politically and economically not least because of a double whammy of both decreasing oil prices and restricted access to western financing i wonder if it can all make diversification now becomes not. an aspiration. i make anomic inevitability or at least

a necessity for the current government if it wants to keep its control in the country well as be released the solution is no doubt that torment we will still has to leave a little system been in clean moscow a good car. right in the streets. the government just doesn't feel the necessity of the tourists were full price at about sixty dollars per bar was for us much better than ten years ago so i came to the lauzon bar just to be even almost human on their wrist can be financed by the crew so there were a load. and all their forms and although there were some may lead to unexpected tourists and problems. at least when i talk to people who are early to the go and who do fly in the palaces in certain ways none of them dear to see we we were going to go for what is interesting have you know when i talk to some

people in the government my impression is actually quite different i think they were pretty scared by what they experience in two thousand and fourteen and they are still not sure whether these international pressure is over for all other sectors of the economy for the cash generating reasons a little it is or is a difference between private talks and public tax there is a position of the government which allows them to believe international sanctions for the problems of the economy which which is which is not integrity from my view international central didn't harm the economy here at the wheel but they did not they convert their limited access to western financing and western technology reaches out they are critical for example in a finance is not we have enough money now if you look at the council the banks in the central but. fourth through the nobles what's look at the resources which are almost forty percent of our g.d.p. it's like so to five percent of our g.d.p. it's enormous or that some of the dead. it is very low and the prince is limited to

a certain number of companies and some number of weasel finance and you if you need to can raise money it's not a problem the problem is that knowledge is we just start to feel hope problematic it will be for russia to develop or for the existence of national technology of markets not here we don't see it in g.d.p. at all now one of the successful outcomes at least marketed as a successful outcome of the last two years is the larger cultural. stimulus program and the liberal community in russia is often very disapproving of those countries sanctions they. operate a trade as ideological south harm as as an effort to penalize your own population because you're powerless to do anything else that they're perceived with the perceive that views are but i wonder from the comic point of view it wasn't that sharp ruble depreciation that we experienced in two thousand and fourteen two thousand and fifteen wasn't it actually crying for something like that wasn't the

most opportune time economically to introduce that crutch that the industry has long been calling for. well general all this and dissensions of this agricultural development is a big miss for also their culture is a very little margin because of the share of the g.d.p. in more than conscious and less than one point five percent of us as loss of three percent of the g.d.p. overall in the world the sure they had a culture fail by a factor of two in both fifteen years so it's not enough to now say when the culture is good now to the big picture it's a it's a peripheral business which we need to maintain we need to what but it's no and the fact of the prosperity but i mean from their labor point of view employing the people social point of view you know mind it's not so the more we do the list people are employed and they were cautioned to mugu forward with the drawings with the automotive g.p.s. tracks or some of the machines will have less and less people employed so the fact

that we easily get this year over this business just shows how the rest of the waters get rid of this business with it with eagerness and them on top of the look at what we did we didn't grain. which is out of sanctions we will never grow extension great. we need poor can. trust us not in the central some second the trend. away before the two thousand and fourteen and for nothing else well i really give you one example of what we actually gained and heard that from a number of high ranking government officials and they said that for the first time they actually acquire some amount of south confidence that they you know they actually can do something when they put them mind to it rather than believing that all the money will be stolen or you know because of russia and a perennial inefficiency in the you know good thoughts will be sabotaged anyway

isn't that actually pretty valuable the the belief among the government officials that they can actually achieve something when they put their mind to it i don't know. if we believe that the middle victory in the field which which is two percent of the g.d.p. was the last to both were some dollar terms of the orders g.d.p. of the diversification for oil both fifteen twenty percent through ten years in the old economy the last couple the defense experts thought the time for fifteen billion dollars to two thirds from fifteen to bold six billion dollars all the gains that they were coached are much listen to this loss. it's a piece it's a false belief now you're usually quite critical of the kremlin for what you perceive as a passivity in introducing anomic reforms in. a propensity of the kremlin to sort of float with the tide rather than being proactive the complacency but i think that

is part of their wash larger debate in russia on the role of personality not only in history but also in economics we have a very long battle in balancing out the pains and the gains and you alluded to that previously don't you think that russia does present a historic case for being a little bit more risk averse than the rest more so in sense of fearing social consequences of painful reforms for example. well it's it's a tricky question because when going to when you will feel reforms you end up. if risk aversion means satan for. it to well mr muskerry have to take a very short break now but we'll be back in just a few moments. nice

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u.s. . welcome back to wolf a part of it i dream of child director of the economic policy program at the carnegie moscow center mr my child just to pick up where we left the economy. and politics are always interconnected but in russia it is even more the case i think the economy in russia is a mirror image of politics there both have only centralised given to inertia with a high degree of monopolies risk averse and it is clear that changing one is impossible without changing and the other but i wonder in your view which one will have to show the way is it the economy or the political structure as well as of the

question of the the conventional wisdom the economic conditions change the politics are not twice over if you don't if you want to impose a new politics on the old economy conditions usually for. these pollutions quaid to use of the influential groups or groups who control the economy they have powers to change the politics in their freedom because the old economy let's say of the old economy favors the old influential groups and they always of the other conventional wisdoms apply to russia all the time anyway not what's what what's what's what's not the people to rush the the group it's a law is a political way away with this was there would not be one because i think russia is a pretty outis and credit country and them both in terms of its values both in terms of its development it has the elements. sometimes contradictory elements that other countries don't i don't recognise them in

a great picture of course of course every country has its specifics that but if you look at russia in terms of the broad economy or science you would see or through the pentagon country which is is there's been group or sort of the new country and there is sort of change but not the dependency a country of big totals of the population of the country which experiences that claim power or. all the laws are pretty much a political if you look at all neighbors in terms of. power all pumping capacity you will. iran. and russia is in general been brought a combination of all this for neighbors with a future so for each of them and nothing else it's quite easy to decompose the policies of the economists of the country if you look at that if you forget about the specific spirits and historical for brevity or i know that the you came of age after the collapse of the soviet union you have many friends and acquaintances

among russia's financial and banking sector and as much as we can blame for problems for corruption and administrative influences of pressures on the concourse i think it's often the business elite that exploits the state and court machinery for its own personal or private gain we talked about government our government's readiness or the lack of their offer to change by dissing the country's business especially while connected business is ready to play by the law if we come to the famous question we are putting stars on we put an ounce what is put as a one person is thousand people as a town thousands of people essentially the there are some go on of the russian elite mr putin and so they try to reflect the of the state this way they have so much of the support because they reflect on the parishioners some the expectations of the society or the state is bad the elites could become would be better but. we

i would believe import and not for making the come to wars but not making the country better. if you look at small developments which we all can't take the small example of the trust us and alliance of their authors or the all the bells the safe to build on the cars of the the country managed to make people be the rules so it's possible if it's absolutely possible why wouldn't you think they would be wouldn't it be the law you for being dictated well i think ours and there are people usually have no problem obeying the law i think it's. the powerful people have a problem with that and the case in point would be very high profile trial in russia these days of former economic development the minister alex sale a kind of and he's accuser also may have seen your session both of whom represent different factions within the russian government system i wonder how do you read that case and i'm not asking you about the corruption charges nor the content of the case but rather the conduct of that case and the fact that many say it did not

play out as it was expected because initially it was expected the interception is somebody who is totally above the law. well i don't think we have enough people to read boldness of his case the case is not out of the context we don't know how the relations between the members of the lead are being structured we see all we sure are distant sounds or much more complicated process of doing on the the palace. station is frowned on an enemy of different people that have their mighty people around him supporting him or fearing him or fighting him we saw the recent report of their being which is different clear sign of a war which is the clear against him by another group of people. particularly with the open graph can bring you back to the issue of course because a few look at the course at the poles rather the russian people don't trust russian

course system much but they use it a lot and i think the most high profile endorser and defender of that system is actually vladimir putin himself bored by the statute and by his rhetoric if it continues to play this game of cat and mouse with the courts and he has already ignore them a couple of someones into the court wasn't that challenge put an interactive does not doesn't that present a certain. threat to the integrity of the idea of putting himself as the garonne terror of both the constitution and the coarsest a more generally you just started to with of the disrespect which which people in the society have to the courts why no one respected the lack of trust it's quite a different matter to pretty much the same thing. people if you don't if you don't respect the institution you would not turn to it and russian people actually go to the court in large numbers that's the reason why the court system i saw or heard of for forces not the clutch as i'm developed by by

a by the degree so you can even leave the goo the earth the video and if you talk to people they will tell you that the first thing you need to good do if you'll play to the court to find somebody to. give the bride to to win the puts them everybody knows how the courts rule and where the tax inspection is included in the process folks we know hold the whole hold the courts started we're told the three and the ucas keys were treated them to them all the courts and the frame was bust mommy court for example holding a pretty i am of them even if we know all that why would we expect mr station to respect the court well specifically because that would not challenge a lot of impressions intended to the business not because it would put as though to sue sheet or to the court system would come in i mean when you look at the news and you see that there is one person in the country who could ignore court summons repeatedly on a vitamin put in still keeps insisting that's a very significant part of his rhetoric that this is after the court i cannot

intervene in the court system in the court proceedings doesn't that make what you are putting look like a fool no i don't see any contradiction to the are says he's above that he doesn't care if men are just overrule the court that's fine if she doesn't she doesn't it's as if it's a forced me to who has more power in the summer is a vote of. easing that the one if indeed it perception is allowed to overrule the cordy's thing that would not damage the credibility of that critter now because mr misimpressions because ability is about that. decisions because ability would arise because he can outplay the court well i i beg to disagree with you but since we're already describes the economic and potentially courtier forms let me ask you about the political reform there is a wide consensus among political commentators that if what ima put in runs for another term his main objective for the next six years would be winning russia of

his own leadership to create hopefully create a system that would be relying on stronger institutions that would make the question of power transition. a little bit less risky than it is right now do you think he can do that in six years or pretty much successfully managed by ever a tight group of people. the organisation of the management is much more like a primitive group the situational society and so far it works then the conversion to the institutional society may mean pause many threats to the group and to present it it isn't out already happening because if you take. for example the palliative care in moscow it was nonexistent a decade ago but there was a little hospice started by essentially a voluntary community and now that whole volunteer community took over the whole

palliative care in moscow that's actually had a great victory won't maybe a little victory but it's a great it's a victory for the institutions and i assume the same things are happening perhaps not on the economic level because it's a highly my knee intensive sphere but on the other in the other areas especially in one of comes to social protection don't you see it does growth of institutions of the civil society because even if you look at the international i think it was a world bank members russia has the second largest number of volunteers in the world and the number keeps growing. i couldn't comment on the number so just don't know the numbers i know the numbers of troops but we know the level of charity for example prokop in developed countries is the degree her the brush and they would in the countries of the cold war it's usually much higher. but then i don't see the connection between these high powered t.v. well into movements especially during the father's volunteer movements are pretty much suppressed in the regions and there are mosques. and i just don't see the

science of all the change of the alderman taylor till the ruling elites will go in kwanzaa rush i will show them a few the the story will be all about the success can they challenge the last notion about not seeing the change in the mentality of the governing elites and just a few weeks ago vladimir putin the was present at the wailing of the monument to the victims of gulag and glocks and that is essentially in a morning meant to citizens who were abused by the state it's morning and recognizing around this state crimes and for somebody who worked for. beer i would think psychologically that's. quite in the truman don't you think so i never heard was of put in saying that he supports a stalinist regime or the british his position has been pretty much the same all

through his presidency pam and you and before. you respond the team who was to play pool the mass repressions and displayed many of my colleagues and men and liberals and rush to accuse indeed a cage b. and the f.s.b. whatever you call it of mr put all of the persons today i wouldn't say that we can compare earthy the scales of the of the outcomes of the oppression of stalin terms and and now in the situation where the oppression is how limited to the fight for the power. there is nothing new there or it mr putin is just consistent in what he says twenty years ago and maybe it is a sign of some consideration going up above about the brawl of the state and the state's responsibility before its citizens as well as taking steps you'll recognize the crimes that there were done by the state before i just don't see the connection the crimes were recognized with mr hu show from the twenty five twenty five council

of the prior to writers of many years a good citizen nobody change that apart from very marginal people who do not want to little misery and that at the same time you know yourself participated in their recent project called stalin gave orders to reach challenge the what some would term the revival of. a stallion. i would call it praise are you know giving more prominence to stalin then he deserves certainly you are concerned about the look we hear from the normal two to three percent of the population being read the course and in one way or him of a man then there are there are matters on there are stalin supports or some all that duerson all that problem is the usual for any cut rate if you look at another country you would see your dick. it's much the same percentage so you need to fire them of course you need to put them all to spread the infix doesn't consume kraemer i wouldn't see them missing my child we have to leave it there i really appreciate

your time and tell our viewers please share your comments now at twitter facebook and youtube pages and i hope the same place same time here on worlds apart.

they call me a useful idiot i'm useful idiot you called me a useful idiot a useful idiot useful idiots go expressing my opinions on t.v. there are thousands of us doing it behind his record is a simple strategy we attack persons instead of talking about the org what's next why stop me from getting this close to the white house i'm with a group code pink why not ban the color pink one hour stretch beyond the rock i should be sent to the town of london because going to try to break me although we'll put up with a long time of this sort of nonsense you don't scare me and i'll continue to voice my opinion i'll continue to speak out i'm in good company i'm in good company you going to be you want to do this because we are free thinkers.

i simply. sat still up there ten miles from the independent with meters that they wouldn't. own up but we were meeting they. were sort of my love and respect they like him to me or the now with jamie as a hunk on the road. now it's a good lesson but the hell i got money for that matter i see life simply make it what we have it would be in the marrow have gone floating closer gave up because of me. see so when i went to. the village of collect she has been nicknamed sleepy hollow because for some

unknown reason its local residents have formed victim to sleep put him. over the course just being able to choose if she would use it which i would rather hear if she. wanted to more concerned that sympathy also ensuring the sort of but i'm also going on with the question you're still talking. to go back to the point of switch. from where did you do what we have ordered. this with. me for. my sil in there did your boss tells you of the guts. to both of us. it is first of all it will be.

in the stories that shaped the way which i saw now close to being wiped out in syria but the country's civil war rivals move toward finding a political solution to their own longstanding conflicts the peace talks in russia . also we visited russia's toughest prison for a rare visit to see what life is really like the country's most dangerous criminals it is. but some of the country's worst maniacs serial killers terrorists and he wouldn't have the balls held on unsettling times for germany and chancellor merkel as coalition talks break down even more question marks over her future or isn't.