Much can depend in a nation's life on the personality and beliefs of its
leader. Even more, often enough, on those of the men surrounding him.
To this, Russia is no exception.
President Putin has always stood by the re-industrialization of the
economy and the advancement of the real economy vs the financial
economy. However, this always met with limited success and seemed to
only make advancements more in a reactionary manner to key anti-Russian
world events. Import substitution, raised due to western economic war on
Russia, is a prime example of this. While successful, its success has
been much more limited then by any account it should have been. It is as
if the ship of state was constantly being met with a ponderous head
wind, breaking its progress. Agriculture and military have been the
exceptions.
Indeed, that head wind was the number two man in Russia. An avowed Atlantist and part of the globalist financial elite, Dmitry Medvedev, as
prime minister, was never exactly pro Russian development or
mercantilism (there it is that evil word Mercantilism, so hated by the
neoliberal free trade crowd). It can be understood of course as 1.
Financial economics by its nature is an extraction economy, its quick
cash through liquidation of industry and sell off of resources. When
backed up by people who see themselves as citizens of the globe or
global elites and hold no particular driving and all consuming love for
their homeland, their Rodina, this is a formula for disaster.
Since the removal of Medvedev from power and with him the Atlantist
neoliberal block and their replacement with Prime Minister Mishustin,
the winds of change have arrived.
This was first seen by the Russian advantageous positioning to support
the economy during and after the Covid19 lock-downs. I detail these HERE.
In tendum, the Russian government gave assistance to the Russian medical
supply and biotechnology industry to allow Russia to become an over
night medical equipment heavy weight, bringing forth top of the line
technologies (detailed HERE) and to be the first to start mass production
of the first registered Covid19 vaccine (detailed HERE). Already
nations have lined up to purchase and franchise the production of
equipment and vaccine. Russia has also shown an ability all over her
vast distances to greenfield to completion almost two dozen hi-tech
medical hospitals, projects completed in under 100 days each and not temporary trailers like the Chinese "wanders" but permanent building
with all the hi-tech equipment (also Russian made) that would be expected
from world class facilities.
"The president gave marching orders for the government to work out a package of programs for the growth of the Russian IT industry, to create maximum comfortable conditions for specialists of this industry. Now we are reviewing the changes that will be required in the legal codes to create tax havens for the IT sphere."
Prime Minister Michael Mishustin
One such maneuver is the lowering of pension taxes required from the IT industry from 15% down to 7.6%, almost a 50% cut. Taxes on profits will drop from Russia's already low 20% to 3% for companies who earn 90% of their profits from production and sale of software solutions.
Additionally, manufacturers of electronic equipment and AI systems will also be covered under these new taxes.
No major economy in the world has such beneficial tax codes for the IT industry. Coupled with the fact that Russia produces more engineers than any other nation, an excellent communications infrastructure that is now being upgraded to 5G, its comparatively lower salaries compared to other nations and very cheap utilities and land costs and there is no logical reason not to invest, except for fear bred by ignorance and foreign propaganda. Taking into account the weak position of the ruble vs foreign major currencies, for those selling abroad and ignoring this , it is just down criminal incompetence.
The Russian government has also undertaken a gigantic effort in reviewing, updating and deleting antiquated government standards throughout all industries. This has helped catapult Russia into one of the world leaders of the Ease of Doing Business index in 6 short years. What, the Western MSM forgot to mention that?
