The development of Russia’s economy and the «Dutch disease»

• Embulaev V.N.

  Vladivostok State University of Economics and Service
  Vladivostok. Russia

The development of Russia’s economy depends on the sale of raw materials on the world market, mainly gas and oil. And a high proportion of export-commodity sector of the economy creates conditions for the emergence of the so-called «Dutch disease». This «disease» in the economy occurs because when the capital is invested in the development of export-commodity sector to the detriment of other sectors operating in the domestic market, the country’s economy is skewed: the national currency strengthens, which leads to higher prices of everything, and in this case, it is more profitable to import products from other countries with cheap currency. The sectors of the economy that operate in the domestic market, not compete and ceased operations. Initially, these processes were seen in the Netherlands with a high share of the commodity sector of the economy, and then tied them with a raw factor. However «raw curse» or not, because the nature of this «disease» is not the existence of natural resources, and as a result of wrong monetary policy at the state level. And therefore the emergence and development of «disease» can be prevented, if those industries that are subject to damage, to stimulate, for example, using budgetary funds, tax incentives and other specific methods of financial transactions.

Keywords: export-commodity sector, world market, monetary policy, the «resource curse», economic and trade relations, profit.