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The Russian State’s Size and its Footprint: Have They Increased?
Author:
Gabriel Di Bellanull

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Oksana Dynnikovanull

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Mr. Slavi T Slavov
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Series:
IMF Working Papers
Volume/Issue:
Volume 2019: Issue 053
Language:
English
Publication Date:
08 Mar 2019
DOI:
https://doi.org/10.5089/9781498302791.001
ISBN:
9781498303385
ISSN:
1018-5941
Pages:
29
Keywords:
WP; State's share; private sector; State procurement; general government expenditure; procurement rule; Russian State; State-Owned Enterprises; Transition Economies; State failure result; total factor productivity growth; procurement legislation; state support; market failure; State activity; failure result; government policy; government pension liability; State equity participation; Competition; Employment; Public employment; Global; Eastern Europe; State footprint; state footprint; State's size; overview of State; Public sector
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The short answer: The size of the Russian State has not increased much in the last few years, but its economic footprint remains significant. Concretely, the state's size increased from about 32 percent of GDP in 2012 to 33 percent in 2016, not far from the EBRD's estimate of 35 percent for 2005-10. This is different from the mainstream narrative, which contends that the state's size doubled in the last decade. However, a deep state footprint is reflected in a relatively high state share in formal sector activity (close to 40 percent) and formal sector employment (about 50 percent). The deep footprint is also reflected in market competition and efficiency. Although sectors in which the state is present are more concentrated, concentration is large even in sectors where the state's share is low. This suggests the need to protect and promote competition, in particular in state procurement. Finally, state-owned enterprises' performance appears weaker than that of privately-owned firms, which may be subtracting from growth.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2019: Issue 053