STPETERSBURG, July 4. / TASS /. The head of the Bank of Russia, Elvira Nabiullina, identified the problems that create risks for the successful implementation of national projects and the achievement of sustainable economic growth, at the International Financial Congress on Thursday.
"This year, the government has begun implementing national projects that are designed to remove structural constraints. These projects, involving investments in education, health care, and infrastructure, should be worked out with effective management. But there are two serious problems that cannot be ignored if we really want sustainable economic growth," she said.
According to her, Russia needs to create incentives for the development of private investment and entrepreneurial initiative. "Public investments cannot replace private ones. And even with the successful implementation of national projects, there is no guarantee in their state part that they will create a commensurate multiplier effect through increased private investment," she said. Nabiullina also said that structural changes are needed, but she stressed, "there are no simple solutions."
"The second problem - structural changes are time. First, because of high oil prices, then, because of the need to concentrate on strengthening macroeconomic stability, we postponed the implementation of many urgent structural reforms, and now we want a quick result. As a result, we again find ourselves trapped in the "search for simple solutions" when we search for where there is light. And for some reason, usually all searches for a solution with this approach are brought to the Central Bank. I must once again state that there are no simple solutions," she added.