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Chief Economist, Research and Forecasting Department of the Bank of Russia
Gravity exists not only in physics, but also in economics, and just like in physics, its laws are objective. It is far more important for small and medium-sized economies to maintain and develop economic ties with the largest economies than vice versa.
Many Russian firms prioritise their market position over productivity growth; low competition and high entry barriers reduce their incentives for innovation. This approach extends the life of inefficient businesses whilst undermining the sustainability of efficient ones.
