Experts believe resource curse is superable

21 april 2015

A roundtable on the quality of human capital and institutional conditions necessary for its development took place in the framework of the forum "Fuel and Energy complex of Russia in XXI century". These factors were seen as critical to the structural modernization of the national economy.

"Today we find ourselves in a difficult economic situation", said Alexander Kurdin, the Head of the Department for Strategic Studies in Energy of the Analytical Center. "However, the problem is not that the economy is in recession, but that the assessment of long-term growth of the Russian economy is reduced".

According to the expert, political institutions have the impact on economic development. However, they also create an unfavorable environment, and attempts to invest in human capital - education, health care - do not give much effect.

As for the "resource curse" concept, which is often used to explain the failure of the economy, Mr. Kurdin called it the history of missed opportunities. "The real question - whether the Fuel and Energy Complex will stay a cash cow, or the economy will be able to diversify", said the expert.

These issues were discussed in detail in the Report on Human Development in Russia "Human Development in the context of economic instability", which was presented at the Analytical Center in February.