On the Strategy for the Economic Security and Socioeconomic Development of Russia

ABSTRACT On May 13, 2017, the “Strategy for the Economic Security of the Russian Federation up to 2030” was ratified by the Russian government. This article considers the major question the “Strategy” tries to answer: How can Russia’s economic security by achieved and maintained? One major problem facing Russia today is the lack of government regulation of the economy. We consider some of the negative consequences of the lack of regulation, in particular massive deindustrialization. We describe several causes of deindustrialization (e.g., failed privatization and the absence of investment) and propose several ways that government regulation can facilitate the reindustrialization of the national economy (reinvesting resource wealth and creating long-term loans). Finally, we argue that to reverse negative economic trends, Russia must adopt a two-phase strategy to be completed in twelve years (2019–2030), which necessitates the mobilization of major financial and organizational resources. The first six-year phase (2019–2024) covers the massive innovative reconstruction of existing low-profit and negative-profit enterprises, and the second stage (2025–2030) will create large modern enterprises. The main goal for this twelve-year strategy is to bring the Russian economy into the orbit of the industrialized countries and to use the system of innovation accumulated during this time to start the new stage of state-corporate capitalism characterized by industrialization.