Yegor Gaidar forecasts the second wave of crisis in early 2010

24.04.2009 — News

THE SVERDLOVSK OBLAST.

The economic crisis in Russia may start abating in the second half of 2009. However, according to Yegor Gaidar, Director of the Institute for the Economy in Transition, the chances are high to see more waves of crisis in Q1 and Q2 2010.

"The impact of the crisis on the Russian economy was aggravated by the infantile relationship between the state and the business", says Gaidar. "High oil prices easily made the business community think they would last forever. In those circumstances the government started demanding investments to be made into state-run projects, and after 2006 it became impossible to say "no". Today we need to think of a way to "kick the habit" and cut the budget for education, army and other social projects".

Yegor Gaidar shared his views on the world economy at the 6th International Research and Practice Conference "Economic Development in The Modern World", which opened on 24 April 2009 in Yekaterinburg.