other sectors. off sad at the facts of that very sharp rebel appreciation but i wouldn't believe the two to the kind of suppression and even would not talk about course a professional talks council can be controlled by other factors and russia is there are examples of the purity of the. demand or the oil price exclusively but if we vote. because of the policies or other factors of the world 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 could sustain 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 sort of. stashing

the wind fall income away in various funds it 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 that was that. it was merely because russian government stayed away of the problem they were out of the good the there will prices fell the the ruble price fell the imports is the the exports squeezed to the consumption fell and all the parameters of the over the question were adjusted to just stay in the equilibrium and thus have probably been most smart policy around the overcoming of the crisis of related to the. to the problems with the main minerals yourself or to the main factors of your canon and on the other side which we are you are 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. the main resource which you feel the economy for all of the. the meter will desire to centralize those who 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 i think he came closest to actually being apologetic because he's often asked about his mistakes but 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 effort into diversify the economy so you're actually agreeing with him that the structural forces for or against evolution just of the statement differently dream of mr put some of my favorites were put in there but but on top of that the the government didn't want to diversify the economy not to lose control over the economy or the state because they saw what happened and main to sort of the attempts of

diversification led to the diversification of the source of all the. different people in different part of trying to win over the country down or just didn't want to to happen any more so the nationalists of the whole and those are sort of the two sources which led to the oil production and old 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 diversify it to the enterprise a switch where infusion from from the beginning was the major the major intention was to spend the budget to make the report on or to bring it up to the little the global or competitor but all of that i assume in two thousand and fourteen when russia experienced a turning point. economically not least because of a double whammy of both decreasing oil prices and risk. rick to have access to

western financing i wonder if it can all make diversification now becomes not so much an aspiration but i make anomic in of its ability 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 note that torment we will still has to leave a little stiffened in include moscow a good car. right in the streets. the government just doesn't feel the necessity of the tourists were full priced at about six to dos for bar was frost's much better than ten years ago so i came to the lauzon bar just to be even almost you were none there with can be financed by the crew so they were a little bit. and all their force and although they were sophists may lead to unexpected tourists and problems. at least when i talk to people who are early to

the go home and who do fly in the palaces. 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 so from that point of view. there is pretty much no noise came by to try to prop up other sectors of the economy for the cash generating reasons a little it says there is a difference between private talks and public toilets there is a position of the government to each allows them to believe international sanctions for the problems of the economy which which which is not in total from my view will central didn't harm the economy here they will but they did not but they convert their limited access to western financing and western technology reaches out that are critical for example in

a finance is not we we have enough money now you look at the council the banks in the central but. or through the nobles what's look at the resource of the very low and the prince is limited to a certain number is money it's not a problem of hope problematic it will be for russia to develop before the existence of national technology markets not here we we don't see it in g.d.p. at all now one of the successful outcomes at least marketed tests 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. are pretty trade as ideological or self harm as as an effort to penalize your own population because you're powerless to do anything else that they're perceived with the perceived abuser 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 end of sanctions of this agricultural development is a big mystery up for us there are cultures of very little margin because of the sheer of the g.d.p. in more than consciousness less than one point five percent of us was less than three percent of the g.d.p. in the world the skill of a good culture. by a factor of two in both fifteen years so it's not enough to now say we're going to culture is good now to the big picture it's it's a peripheral business which we need to maintain we need to what but it's no defect of the prosperity but i mean from their labor point of view employing the people social point of view you know maintain it's not so the more we do the list people are employed than they were the mugu forward with the drones with the automotive

g.p.s. tractors and other machines will have less and less people employed so the fact that we easily get this year all this business just shows how the rest of the waters get rid of those bits with it with eagerness and them on top of the political will to what we did we didn't agree. which is all the sanctions we would never grow extension great. we need poor can. trust us not in the central some second the trend that way before at the two thousand and fourteen and for nothing else well i really give you one example of what we actually gave and i 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 their mind to it rather than believing that all the money will be stolen or because of russia and 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 them mind to i don't know. if they believe that the made a 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 all boats fifteen twenty percent through ten years in the economy they lost the defense experts with a fifteen billion dollars. third from fifteen to bold six billion dollars all the gains of a the culture are much less on this loss. it's at least 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 there was 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 was presenting 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 when when you will feel reforms you end up. if risk aversion means satan for free all it to well is my child we have to take a very short break now but we'll be back in just a few moments. i

simply. sat still the president miles from the. end of the of that day with. the counselors a president that i will not but we will meet today. i would wish to say to my love and respect to let him to me or be here now with jerry as a hunk on the only. now at the. scene but because hell i don't want him

for that matter i see like him to make the boy or me it would be in the marrow have been floating closer geared up to grab me as. this footage is unique because the tribal lands i'm normally off limits to the public erik's allowed in big. he's the zoe's personal doctor. the. people here know him simply as dr eric he's rich and famous some always on the move saving yachts and flying aircraft. he's considered one of the best neurosurgeons in brazil. that's

happening. are you still still going to visit. nothing's going to go to the population because it's going to people. welcome back to worlds apart that i dream of a 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 they're both have the least centralized 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 structures or is it a question of the. conventional wisdom the economic conditions change politics not to i suppose if you will if you want to impose a new politics on the old economy conditions usually for. these police and quade to use of the. influential groups the groups who control the economy they have powers to change the politics in their free because the old economy with save the old economy favors the old influential groups and they're always of the unintentional wisdoms apply to russia all the time anyway not what's what what's what's what's not the people to rush the you know the group it's a law is a political way away where this was the will not be won 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 we need 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 cantor which is is there's been group or sort of the new country and there is sort of change but not the the country of big totals of the population of the country which experiences a clane 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 see iran. as external g. or and russia is in general being 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 economies of the country if you look at that if you forget about the specific spirits and historial for brevity or tone 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 put in power for problems for corruption and administrative influences of pressures on the concourse i think it's often the business elite dad exploited the state and. machinery for its own personal or private gain we talked about government governments readiness or the lack of their off to change producing the country's business especially while connected business is ready to play by the law we come to the frivolous question we're putting stars on we put an ounce what has put us at one person is the 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 this to this way they have so much of the support because they reflect on the aspirations of the expectations of the society or the state is bad the elites could become would be better but. we i would believe imports and not for world making the come to wars but not making the country but. if you look at small developments which we all can't take the small example with the trust us and alliance and their authors or the all the bells the safe to build on the cars of the the country manage to make people obey the rules so it's possible it's absolutely possible why wouldn't you think they would be wouldn't obey the law you for being dictated well i think ours and there are people usually have no problem of being the law i think it's the powerful people who have a problem with that and the case in point would be a very high profile trial in russia these days of former economic development the

minister alex ala kind of and he's accuser. session both of whom represent different factions within the russian governance system i wonder how do you read that case and i'm not asking about the corruption charges not 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 that interception is somebody who is totally above the law. well i don't think we have enough people to read this 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 we sure the distance or much more complicated process is good no longer the palace. station is frowned and then image of different people that have their mighty people around him supporting him or fearing him or fighting him we saw the recent report of there

being which is different clear sign of a war which is the clear against him by another group of people. particularly with government career can bring you back to the issue of course because if you look at the course of the polls 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 the founder 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 ignored them a couple of someones into the court wouldn't that challenge put an interactive he does not a dozen doctors and a certain. threat to the integrity of the idea of putting himself as a figure on 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 you know what respect then the lack of trust

it's quite a different matter pretty much the same thing. 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 a lot of for forces not their clutches and developed by by a by the degree so you can even leave the goo the early video and if you talk to people they will tell you that the first thing you need to good do if you will play to the court to find somebody to. to give the bride to to win the puts them everybody knows how the courts rule and where the post inspection is included in the process works we know all the 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 hold a pretty high on them eve if we know all that why would we expect mr station to respect the court well specifically because dad would not challenge a lot of impressions intent of the business not because that would put it is not

a sushi to 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 give nor 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 core they cannot intervene in the court system in the court proceedings doesn't that make what are important look like a fool no i don't see any contradiction to the guitar says he's above that he doesn't hear manages to overrule the court that's fine if he doesn't she doesn't it's as if it's a forced me to who has more power in the summer is about over it and easing that the run if indeed it is allowed to overrule the cordy thing that would not damage the credibility of that curtain now because mr disciplines because ability is about that and you use decisions because ability would arise because he can

outplay the court well i am i beg to disagree with you but since we're already describes the economic and potentially court there are forms let me ask you about the political reform there's a wide consensus among political commentators that if i didn't put in runs for another term is 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 and for terrorists 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 institutional society and so far it works then the conversion to the institutional society may many threats to the group and to person that 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 of volunteering community and now that whole volunteer community took over the whole palliative care in moscow that's actually had a great victory well 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 highly money intensive here 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 of such a dog nor the numbers i told the number of true but we know the level of charity

for example per capita in the developed countries is the degree her the brush and they were in the countries of the cold war i was then i don't see the connection between the hype over the volunteer movements especially during the father's volunteer movements are pretty much suppressed in the regions and then moscow and i just don't see the science or the change of the alderman taylor till the ruling elites although in quantum rush i would show them a few in the the story would be all about the success can they challenge the last notion about that of the governing elite of new citizens who were abused by state crimes and for somebody who worked for. to be here i would think cycle are quite an achievement don't you think so i never heard was of put unseen that he supported stalin's regime or the priests his position has been pretty much the same all through he's president super and you and before. you respond the teen

who was too clear pools the mass repressions and displayed many of my colleagues and men and liberals and rushes to accuse in the to keep b. and d. f. as be what i will call them mr put all of the persons today wouldn't say that we can complete earthy the scales of the of the outcomes of the oppression of stalin term son and now in the situation where the oppression is so limited to the fight for the power. there is nothing new there or it mr bush was just consistent in what his twenty years ago but maybe it is a sign of some consideration going up above about the brawl of the state and the state's responsibility for its citizens as well as taking steps you'll recognize the crimes that were done by the state before i just don't see the connection the crimes were committed with mr hu show from the twenty five twenty five council of the party rates of many years a good citizen nobody children's that apart from very marginal people who do not

want to recognize the real but 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. start 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 it in one way or another of a man then there are there are now to some there are stalin supporters some all that duerson all that problem is the usual for income. right if you look at another country you would see over the course of pretty much the same percentage you need to fire them of course you need to fight them to spread the infix doesn't consume kraemer and i wouldn't see. mr much as we have to leave it there i really appreciate your time and tell our viewers please share your comments now at twitter

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in the stories that shaped who we make space on the verge of total collapse in syria russia and its regional allies layout plans for establishing a lasting peace in the country. unsettling times for germany on chancellor merkel as coalition talks break down question marks over her future as a leader. and we gain access to russia's most new. prison. life long.